Using a stated choice model to test the viability of new sport event ticket packages Online publication date: Thu, 03-Apr-2014
by Mauricio Ferreira; Todd Hall
International Journal of Revenue Management (IJRM), Vol. 7, No. 2, 2013
Abstract: In an increasingly revenue-driven intercollegiate athletic environment, athletic directors are often faced with the seemingly opposing objectives of creating revenue while simultaneously serving the often price sensitive needs of the student body. A stated discrete choice model is proposed to assist decision-making in ticketing strategy. In this experiment students were exposed to a series of 12 choice scenarios, which displayed ticket options with varying levels of desirable ticket attributes. This investigation was based on 420 students selected using a two-stage cluster sampling procedure from students enrolled in a physical education program at the university. The model was useful in assessing: 1) the degree of cannibalisation between ticket offerings; 2) the consumer targets more likely to be interested in new packages; 3) the monetary value that student consumers were willing to pay for a new package. The results may aid decision-making in the area of ticket packages and pricing.
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