Abstract
This chapter outlines the prices offered to spectators. Most economic attendance models include metropolitan population, team winning percentage, per capita income in the metro area, a dummy variable for a new stadium, a measure related to star players, and average team ticket price as independent variables predicting attendance. Understanding the aggregate predictors of attendance is important for price setting. Running the regression model in the traditional economic sense with current price as an independent variable, predicting attendance produces no significant results. Sports organizations are able to charge higher prices when they have quality venues, star players, winning teams, recent postseason appearances, and limited direct competition. The quality level with respect to seats remains constant across events or games throughout the season. Strategic marketing planning should account for these differences in quantity and quality, such that the team offers price lines consistent with market conditions, market demand, product quality, venue quality, and promotional positioning. Sports marketers who offer discounts on tickets that simultaneously sell for higher prices without effectively planning and practicing price discrimination are likely to confuse and alienate fans.
Published Version
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