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The Impacts of Promotions/Marketing, Scheduling, and Economic Factors on Total Gross Revenues for Minor League Baseball Teams

Author

Listed:
  • Cebula, Richard
  • Coombs, Christopher
  • Lawson, Luther
  • Foley, Maggie

Abstract

This empirical study finds that total revenues at minor league baseball games are influenced by marketing, economic factors, scheduling, and the weather. In particular, total gross revenues are an increasing function of marketing/promotions such as low value merchandise giveaways, high value merchandise giveaways, group discounts, and fireworks displays. Revenues are also an increasing function of the metropolitan area population and a decreasing function of poverty rates. Teams with higher priced general admissions tickets also experience higher revenues. Revenues are generally higher on Fridays and Saturdays and during July and August (and possibly June), while being lower on Mondays and Tuesdays and during May. Finally, inclement weather, especially rain, reduces revenues.

Suggested Citation

  • Cebula, Richard & Coombs, Christopher & Lawson, Luther & Foley, Maggie, 2013. "The Impacts of Promotions/Marketing, Scheduling, and Economic Factors on Total Gross Revenues for Minor League Baseball Teams," MPRA Paper 49437, University Library of Munich, Germany, revised 09 May 2013.
  • Handle: RePEc:pra:mprapa:49437
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    File URL: https://mpra.ub.uni-muenchen.de/49437/1/MPRA_paper_49437.pdf
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    References listed on IDEAS

    as
    1. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    2. Richard Cebula & Michael Toma & Jay Carmichael, 2009. "Attendance and promotions in minor league baseball: the Carolina League," Applied Economics, Taylor & Francis Journals, vol. 41(25), pages 3209-3214.
    3. Zulal Denaux & David Denaux & Yeliz Yalcin, 2011. "Factors Affecting Attendance of Major League Baseball: Revisited," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(2), pages 117-127, June.
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    Cited by:

    1. Jim Downey & Joseph McGarrity, 2015. "Pick off Throws, Stolen Bases, and Southpaws: A Comparative Static Analysis of a Mixed Strategy Game," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(3), pages 319-335, September.

    More about this item

    Keywords

    promotions; scheduling; economic factors; total gross revenue;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other

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