SMQ Issue 22:3

Contents for SMQ Issue 22:3

SMQ 22:3
Authors: Steve McKelvey, Joris Drayer, Daniel Rascher, Nicholas M. Watanabe, Brian P. Soebbing, Pamela Wicker, D. Gloria Wu, Laurence Chalip, Rodney J. Paul, Andrew P. Weinbach, Mark Dodds, James T. Reese, Kristi Schoepfer-Bochicchio, Khalid Ballouli
Abstract: This is the entire issue in PDF format that you can download.

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Industry Insider: Hillary Shaev, pp. 121-122
Authors: Steve McKelvey
Abstract: As vice president of marketing for the NBA, Hilary Shaev oversees all marketing initiatives for the WNBA, including brand management, marketing strategy, and promotion of events and platforms. Shaev joined the NBA in March 2008 after a successful career in the music business. Most recently, she worked as executive vice president for promotion at Capitol Music Group, Virgin Records, and Sony Music’s Epic Records. In these roles, Shaev developed and executed promotional campaigns nationally for all artists on each label’s roster, including Janet Jackson, Norah Jones, Lenny Kravitz, and Celine Dion. Shaev, a graduate of Duke University, was named a Top Woman in Music by Billboard Magazine in 2005, 2006, and 2007.

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Guest Editors’ Introduction: Sport Pricing Research: Past, Present, and Future, p. 123-128
Authors: Joris Drayer and Daniel Rascher
Abstract: Despite its inclusion as one of the core Ps of the traditional marketing mix, research on sport pricing has been noticeably underrepresented in the sport marketing literature. In their content analysis of Sport Marketing Quarterly (SMQ), Peetz and Reams (2011) found only one article out of 346 in the journal which was topically categorized as sport pricing research. The largest percentage of published articles in the journal involves market research of spectators and/or participants. While some of these articles may include elements related to price, the vast majority overlook this critical element of marketing. However, technological innovation has forever altered how sport consumers evaluate products and services. For example, from the consumer perspective, advanced Internet search tools have created a highly informed and highly price-sensitive consumer, partially because of the reduced cost of price-shopping (search cost). It has long been established that prices influence consumer attitudes and behaviors (Zeithaml, 1988). As such, as prices change, so too will consumer responses. Therefore, when researchers examine consumer attitudes and behaviors, they must consider the effect of prices, particularly as more demand-based and dynamic pricing strategies emerge.

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Examining the Impact of the StubHub Agreement on Price Dispersion in Major League Baseball, pp. 129-137
Authors: Nicholas M. Watanabe, Brian P. Soebbing, and Pamela Wicker
Abstract: The growth of the second-hand ticket market has increased the complexity of ticket pricing for sport franchises. In 2007, Major League Baseball (MLB) signed an agreement with StubHub, an online seller of secondhand tickets. Although pricing in MLB has been investigated previously in the literature, price dispersion (i.e., multiple prices for a similar product) and the effects of the second-hand ticket market have been largely neglected. The purpose of this research is to examine the impact of the StubHub agreement on pricing behavior of MLB teams using data from the seasons 1975 to 2010 (except 2009). The results of regression analyses show the StubHub deal had a significant and positive influence on price dispersion, measured by the total number of price levels and the inequality amongst those ticket price levels (Gini coefficient). The findings have implications for the marketing and pricing strategies of professional sport franchises.

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Expected Price and User Image for Branded and Co-Branded Sports Apparel, pp. 138-151
Authors: D. Gloria Wu and Laurence Chalip
Abstract: The marketing appeal of sport associations extends to sportswear brands, with the result that they are increasingly allied with fashion designer brands. Effects of such alliances are tested experimentally using price and user image as dependent variables. Among males, co-branding with a fashion designer brand generated a higher expected price for shirts bearing the sportswear logo, but adding a sportswear logo did not affect the expected price of shirts bearing a fashion designer logo. Among females, co-branding with a sportswear brand generated a lower expected price for shirts bearing a fashion designer logo, but adding a fashion designer logo did not affect the expected price of shirts bearing a sportswear logo. Both males and females expected the price to be higher when the shirt projected higher engagement or dominance for the wearer. Co-branding can have negative as well as positive effects for partners in a brand alliance.

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Determinants of Dynamic Pricing Premiums in Major League Baseball, pp. 152-165
Authors: Rodney J. Paul and Andrew P. Weinbach
Abstract: Dynamic pricing, well-known in the airline and hotel industries, has now been adopted by a handful of Major League Baseball teams in relation to pricing of tickets for their home games. Using data from four teams for the 2011 season, we examine the role that a variety of factors play in explaining differences in ticket prices across games throughout the season for these teams. Key factors such as the day of the week, opponent promotions, starting pitcher, and weather are investigated to shed light on the determinants of the willingness to pay of baseball fans for these teams under a dynamic-pricing strategy.

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Proceed to Checkout? The Impact of Time in Advanced Ticket Purchase Decisions, pp. 166-180
Authors: Brendan Dwyer, Joris Drayer, and Stephen L. Shapiro
Abstract: When purchasing tickets in advance, sports consumers are often faced with uncertainty. Most notably, in today’s real-time environment, it can be challenging for consumers to determine how ticket prices and seat availability will change over time. Guided by the generic advanced-booking decision model, the current study investigated the role of time, ticket source (primary or secondary market), and team identification in advanced ticket purchasing by exploring a consumer’s perceptions of ticket availability and finding a lower price. The results suggest the perceived likelihood of ticket availability and finding a lower priced ticket increased as the date of the game drew closer. Ticket source and team identification were also found to be statistically significant main effects factors, while ticket source significantly moderated consumer perceptions of finding a lower price over time. These outcomes both confirm and contradict various findings in the leisure literature and provide a strong foundation for future sport-related examinations.

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Are Ticket Lotteries Fair Game? George v. NCAA Sets the Standard, pp. 181-183
Authors: Mark Dodds, James T. Reese, and Kristi Schoepfer-Bochicchio
Abstract: Can a high demand sporting event institute a random selection process to distribute tickets and create revenue while doing so? Recently, the NCAA was sued for using such a ticket distribution method (George v. NCAA, 2011). The plaintiffs to the lawsuit claimed the NCAA ran an illegal lottery by charging a non-refundable handling fee for all ticket requests, including those that were not able to be met due to the high consumer demand. Ultimately, the Indiana Supreme Court held the NCAA’s actions did not legally constitute a lottery, and thus the NCAA’s ticket distribution method was allowed.

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A Note from the SMA VP of Academic Affairs, p. 119-120
Authors: Khalid Ballouli
Abstract: Earlier this year, the SMA executive board gathered in Albuquerque, New Mexico, to conduct its annual midyear meeting and discuss matters concerning the current status of SMA membership and the 2013 SMA Annual Conference. SMA executive board members Gregg Bennett (President), Nancy Lough (President- Elect), Dan Funk (SMQ Editor), Andrea Eagleman (VP of Student Affairs), Steve McKelvey (VP of Industry Relations), Joris Drayer (Member at Large), and Eric Schwarz (Executive Director and Past President) came away from the mid-year meeting with an enthusiasm that our organization was about to make another significant step in becoming the foremost membership and conference in our field. It was an honor and delight to work alongside this dedicated and professional group of people, and I am very pleased to report some exciting initiatives scheduled for the 2013 SMA Annual Conference.

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