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

Author

Listed:
  • 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.

Suggested Citation

  • McDonald, Mark & Rascher, Daniel, 2000. "Does Bat Day Make Cents? The Effect of Promotions on the Demand for Major League Baseball," MPRA Paper 25739, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:25739
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    File URL: https://mpra.ub.uni-muenchen.de/25739/1/MPRA_paper_25739.pdf
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    References listed on IDEAS

    as
    1. Scully, Gerald W, 1974. "Pay and Performance in Major League Baseball," American Economic Review, American Economic Association, vol. 64(6), pages 915-930, December.
    2. Hoang, Ha & Rascher, Dan, 1999. "The NBA, Exit Discrimination, and Career Earnings," MPRA Paper 3542, University Library of Munich, Germany.
    3. Winer, Russell S, 1986. " A Reference Price Model of Brand Choice for Frequently Purchased Products," Journal of Consumer Research, Oxford University Press, vol. 13(2), pages 250-256, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Wladimir Andreff & Gaël Raballand, 2011. "Is European Football’s Future to Become a Boring Game?," Chapters,in: Contemporary Issues in Sports Economics, chapter 8 Edward Elgar Publishing.
    2. Men-Andri Benz & Leif Brandes & Egon Franck, 2009. "Do Soccer Associations Really Spend On A Good Thing? Empirical Evidence On Heterogeneity In The Consumer Response To Match Uncertainty Of Outcome," Contemporary Economic Policy, Western Economic Association International, vol. 27(2), pages 216-235, 04.
    3. 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.
    4. 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), pages 63-73.
    5. Liam J.A. Lenten, 2011. "Long-run Trends and Factors in Attendance Patterns in Sport: Australian Football League, 1945–2009," Chapters,in: Handbook on the Economics of Leisure, chapter 17 Edward Elgar Publishing.
    6. Daniel, Rascher & Chad, McEvoy & Mark, Nagel & Matt, Brown, 2007. "Variable Ticket Pricing in Major League Baseball," MPRA Paper 25803, University Library of Munich, Germany.
    7. Scott Tainsky & Jie Xu & Brian Mills & Steven Salaga, 2016. "How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(1), pages 29-43, February.
    8. Wladimir Andreff (ed.), 2011. "Contemporary Issues in Sports Economics," Books, Edward Elgar Publishing, number 14146.
    9. Wayne DeSarbo & Heungsun Hwang & Ashley Stadler Blank & Eelco Kappe, 2015. "Constrained Stochastic Extended Redundancy Analysis," Psychometrika, Springer;The Psychometric Society, vol. 80(2), pages 516-534, June.
    10. Smith Erin E & Groetzinger Jon D., 2010. "Do Fans Matter? The Effect of Attendance on the Outcomes of Major League Baseball Games," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 6(1), pages 1-24, January.
    11. 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), pages 77-94.
    12. Matthew T. Brown & Daniel A. Rascher & Wesley M. 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," International Journal of Sport Finance, Fitness Information Technology, vol. 1(2), pages 109-118, May.
    13. 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.
    14. Rascher, Daniel & Rascher, Heather, 2004. "NBA Expansion and Relocation: A Viability Study of Various Cities," MPRA Paper 25740, University Library of Munich, Germany.
    15. 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), pages 72-81.
    16. Daniel, Rascher & Andrew, Schwarz, 2010. "Illustrations of Price Discrimination in Baseball," MPRA Paper 25807, University Library of Munich, Germany.

    More about this item

    Keywords

    baseball; promotions; giveaways; regression; demand; economics;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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