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

  • McDonald, Mark
  • Rascher, Daniel

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/25739/1/MPRA_paper_25739.pdf
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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
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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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  1. 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.
  2. Hoang, Ha & Rascher, Dan, 1999. "The NBA, Exit Discrimination, and Career Earnings," MPRA Paper 3542, University Library of Munich, Germany.
  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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