Ticketing Strategies in the Sports Sector

Vocabulary-style flashcards covering ticketing strategies, pricing models, and technological impacts in the sports sector based on Chapter 7 of SPM351.

Ticketing Revenue

Historically the primary revenue source for sports organizations, it remains crucial for financial sustainability despite diversification into media rights, sponsorships, and merchandising.

Intangible

A characteristic of sports pricing where fans are buying experiences rather than just physical products.

Perishable

A service characteristic where a seat for a past game has zero value because it cannot be stored for future sale.

Variable Demand

Fluctuations in ticket demand based on factors such as team success, weather conditions, and the level of competition.

Monetary Cost

The actual ticket price itself paid by the consumer.

Time Cost

The effort and time required for a fan to buy tickets and attend a game.

Search Cost

The effort spent by a fan finding good seats at the right price.

Convenience Cost

Costs associated with game schedules and the geographical location of the stadium.

Value Perception

The comparison fans make between the ticket price and the experience provided, such as high value for a championship game seat versus low value for a low-profile match.

Value Triad

The three key drivers of fan value: Quality (facilities, seat location), Service (ease of purchase, customer service), and Price (cost relative to expectations).

Cost-Based Pricing

A pricing approach where the price is determined by the production cost plus a profit margin, often used by small clubs while ignoring demand fluctuations.

Competition-Based Pricing

A strategy where prices are set based on what rival clubs are charging, typically used in highly competitive markets like the EPL.

Demand-Based Pricing

A model where ticket prices rise and fall in direct response to fan demand, commonly used in major leagues.

Location-Based Pricing

A demand-driven model where seats closer to the field or court cost more than those further away.

Variable Ticket Pricing (VTP)

A strategy where ticket prices are set before the season starts based on anticipated demand for specific games.

Bundling Strategies

The practice of packaging tickets together with merchandise or specific experiences.

Product Line Pricing

A discriminatory pricing method that offers different tiers of game experiences at varying price points.

Life-Cycle Pricing

The technique of adjusting prices as demand for an event or product changes over time.

Equitable Pricing Strategies

Pricing methods designed to ensure that games remain accessible to all segments of the fan base.

Dynamic Pricing

A strategy where prices change in real-time based on demand using big data and analytics to optimize revenue.

Market Segmentation

The ability to categorize customers into different groups, which is a prerequisite identified by Kimes (1989) for successful dynamic pricing.

Perishable Inventory

A prerequisite for dynamic pricing reflecting that revenue must be maximized within fixed capacities like stadium seats for a specific event date.

Low Marginal Sales Costs

A dynamic pricing prerequisite referring to when the cost of serving an additional customer is minimal.

High Marginal Production Costs

A dynamic pricing prerequisite where expanding capacity, such as adding stadium seats, is impractical, necessitating price adjustments for revenue maximization.

Omnia Pricing Software and Qcue

Specialized third-party providers that manage data analytics and dynamic pricing strategies for sports clubs that lack in-house expertise.

Revenue Optimization

The use of dynamic pricing to increase revenue, which studies indicate can lead to a $30\%$ increase in high-demand situations and a $5\text{--}10\%$ increase during lower demand periods.

Secondary Ticket Market

Platforms like StubHub and Viagogo where tickets are resold, often leading to inflated prices and control challenges for sports clubs.

e-Word-of-Mouth (eWOM)

The sharing of ticketing experiences via social media, which Research by Vale (2017) indicates can lead to backlash if pricing is inconsistent.