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Does Bat Day Make Cents? The Effect of Promotions on the Demand for Major League Baseball

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Author Info

  • McDonald, Mark
  • Rascher, Daniel

Abstract

A primary objective of sport marketers in the professional sport setting is to develop strategies to increase game attendance. Historically, one of the strategies to accomplish this goal has been the utilization of special promotions. This paper studied the impact of promotions on attendance at professional sport games. Specifically, this research examines (1) the overall effect of promotions on attendance, and (2) the marginal impact on attendance of additional promotional days. Using a data set containing 1500 observations, we find that a promotion increases single game attendance by about 14%. Additionally, increasing the number of promotions has a negative effect on the marginal impact of each promotion. The loss from this watering down effect, however, is outweighed by the gain from having an extra promotion day.

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File URL: http://mpra.ub.uni-muenchen.de/25739/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25739.

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Date of creation: Jan 2000
Date of revision:
Publication status: Published in Journal of Sport Management 14.1(2000): pp. 8-27
Handle: RePEc:pra:mprapa:25739

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Web page: http://mpra.ub.uni-muenchen.de
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Related research

Keywords: baseball; promotions; giveaways; regression; demand; economics;

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References

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  1. Hoang, Ha & Rascher, Dan, 1999. "The NBA, Exit Discrimination, and Career Earnings," MPRA Paper 3542, University Library of Munich, Germany.
  2. Winer, Russell S, 1986. " A Reference Price Model of Brand Choice for Frequently Purchased Products," Journal of Consumer Research, University of Chicago Press, vol. 13(2), pages 250-56, September.
  3. Scully, Gerald W, 1974. "Pay and Performance in Major League Baseball," American Economic Review, American Economic Association, vol. 64(6), pages 915-30, December.
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Citations

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Cited by:
  1. Men-Andri Benz & Leif Brandes & Egon Franck, 2006. "Do Soccer Associations Really Spend on a Good Thing? Empirical Evidence on Heterogeneity in the Consumer Response to Match Uncertainty of Outcome," Working Papers 0048, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2008.
  2. Randy Silvers & Raul Susmel, 2014. "Compensation of a Manager: The Case of Major League Baseball," Economics Series 2014_4, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  3. Daniel, Rascher & Chad, McEvoy & Mark, Nagel & Matt, Brown, 2007. "Variable Ticket Pricing in Major League Baseball," MPRA Paper 25803, University Library of Munich, Germany.
  4. Matt, Brown & Daniel, Rascher & Wesley, Ward, 2006. "The use of Public Funds for Private Benefit: An Examination of the Relationship between Public Stadium Funding and Ticket Prices in the National Football League," MPRA Paper 25831, University Library of Munich, Germany.
  5. Andrew Turner, 2013. "The Effect of Major League Baseball Rehab Assignments on Attendance in the International Baseball League," New York Economic Review, New York State Economics Association (NYSEA), vol. 44(1), pages 77-94.
  6. McEvoy, Chad D. & Nagel, Mark S. & DeSchriver, Timothy D. & Brown, Matthew T., 2005. "Facility Age and Attendance in Major League Baseball," Sport Management Review, Elsevier, vol. 8(1), pages 19-41, May.
  7. Rodney J. Paul & Robert Chatt, 2011. "Regional Differences in Fan Preferences for Minor League Hockey: The AHL," New York Economic Review, New York State Economics Association (NYSEA), vol. 42(1), pages 63-73.
  8. Daniel, Rascher & Andrew, Schwarz, 2010. "Illustrations of Price Discrimination in Baseball," MPRA Paper 25807, University Library of Munich, Germany.
  9. Rascher, Daniel & Rascher, Heather, 2004. "NBA Expansion and Relocation: A Viability Study of Various Cities," MPRA Paper 25740, University Library of Munich, Germany.
  10. Rodney J. Paul & Kristin K. Paul & Michael Toma & Andrew Brennan, 2007. "Attendance in the NY-Penn Baseball League: Effects of Performance, Demographics, and Promotions," New York Economic Review, New York State Economics Association (NYSEA), vol. 38(1), pages 72-81.
  11. Braunstein, Jessica R. & Zhang, James J. & Trail, Galen T. & Gibson, Heather J., 2005. "Dimensions of Market Demand Associated with Pre-season Training: Development of a Scale for Major League Baseball Spring Training," Sport Management Review, Elsevier, vol. 8(3), pages 271-296, November.

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