Using a stated choice model to test the viability of new sport event ticket packages

In an increasingly revenue-driven intercollegiate athletic environment, athletic directors are often faced with the seemingly opposing objectives of creating revenue while simultaneously serving the often price sensitive needs of the student body. A stated discrete choice model is proposed to assist decision-making in ticketing strategy. In this experiment students were exposed to a series of 12 choice scenarios, which displayed ticket options with varying levels of desirable ticket attributes. This investigation was based on 420 students selected using a two-stage cluster sampling procedure from students enrolled in a physical education program at the university. The model was useful in assessing: 1) the degree of cannibalisation between ticket offerings; 2) the consumer targets more likely to be interested in new packages; 3) the monetary value that student consumers were willing to pay for a new package. The results may aid decision-making in the area of ticket packages and pricing.