NBA primary market ticket consumers: Ex ante expectations and consumer market origination

Brian M. Mills, Steven Salaga, Scott Tainsky

Research output: Contribution to journalArticlepeer-review

Abstract

We add to the recent ticket market literature by using a unique, disaggregated, and proprietary data set of primary market ticket sales transactions from a National Basketball Association team that includes previously unavailable information on date of purchase, customer location, and other consumer demographics. We find that local and out-of-market fans differ in their total purchase amounts, with out-of-market fans spending more than local consumers, on average, and differential spending effects based on the home team win probability. In particular, this differential behavior has important implications for Rottenberg's uncertainty of outcome hypothesis. We find evidence that interest in visiting team quality dominates interest in perceived contest uncertainty, fitting the reference-dependent preference model in the context of low local team quality. Further, these findings also have important implications related to market segmentation and dynamic ticket pricing in professional sport.

Original languageEnglish (US)
Pages (from-to)538-552
Number of pages15
JournalJournal of Sport Management
Volume30
Issue number5
DOIs
StatePublished - Jan 1 2016

Keywords

  • Economics
  • Pricing
  • Purchase behavior

ASJC Scopus subject areas

  • Decision Sciences(all)
  • Orthopedics and Sports Medicine
  • Physical Therapy, Sports Therapy and Rehabilitation
  • Organizational Behavior and Human Resource Management

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