Portfolio-ticket sales

Running head: PROFESSIONAL SPORTS TICKET MARKET 1
Professional Sports Ticket Market
Regan Stoehr
Harding University
Business 652/QBA-Research
May 11, 2015
Steve German

PROFESSIONAL SPORTS TICKET MARKET 2
Abstract
Citizens in most metropolitan areas have many events to choose from, such as sporting
events, music, museums, or the theatre. Marketing is a significant portion of these businesses, as
managers attempt to persuade people to purchase tickets to their event. In many markets there are
multiple sports teams that range from collegiate basketball to professional football.
Entertainment organizations are all trying to gain more ticket sales. In business terminology,
managers are trying to gain more of their “slice” in the market. Market share is gained by
advertisement that leads the potential ticket purchaser, so that they will want to come to the event
that is advertised. Selling tickets is competitive as there are many businesses jockeying for a
customer’s dollars. Some professional sports organizations have paid for research, so they can
understand their market and why ticket purchasers might behave in a certain manner when
considering watching professional sports teams. This study intends to establish that higher
overall “game experience” will equate to middle class sports fans purchasing more professional
sporting event tickets with one team over competing professional sports teams in a multiple
professional sports team market. We will track and analyze game experience factors such as
ticket price, concession quality, seat comfort, and quality of parking in: Tampa, FL, Boston, MA,
and Pittsburgh, PA. Thorough hypothesis testing and regression analysis surveys will be
compiled from fifty fans equally from three professional sports teams in their respective markets

Professional Sports Ticket Market
The professional sports market is growing each year. Sports fans spending habits rose in
1994 from 27.5 billion dollars to 31.1 million dollars in 1996 (Stankevich, 1998). One study
attributes a team or sport following to socio-demographics and fan involvement. The results from
a similar study in women’s collegiate basketball propose that a fans loyalty to the team is
correlated with the amount of time following the team. This theory is conceivable as a fan that is
invested in a sports team will likely continue to commit to that team in the future (Kerstetter, &
Kovich, 1997; Laurent, & Kapferer 1985). The loyal or avid fan base is a sports organization’s
target market. This stereotypical fan is likely to commit to the team through ticket sales, apparel
and other promotions. According to Desarbo (2009, 2010), an avid fan exhibits passion, loyalty
and is enthusiastic about one sports team. A significant reason why professional sports
organizations seek avid fans is that they are loyal. The avid fan is likely to stay committed with
the team even through losing seasons. Numerous people identify themselves as avid fans.
According to a study from 2006, 32 million people classify themselves as avid NFL fans, 19.6
million MLB, and 6.5 million NHL fans (Desarbo, & Madrigal, 2011). Keeping fans in the seats
is essential to these organizations’ successes.
Not all fans have the same loyalty to their teams. Hunt, Bristol, & Bashaw (1999) submit
that the lowest levels of fan involvement are the ones that have limited amount of time to watch
their team, and who are also characteristically fickle concerning the team. The next level is
geographical fans, which follow mostly local teams in their region. If the fan or their team moves
away, the interest is consequently lost. The most devoted fan will engage in their team no matter
where their team is playing. Some of these fans drive long distances to engage in the atmosphere
of their team, regardless of whether their team is playing at home or away. Organizations have

marked avid fans for further information on their behavior. Desarbo & Cho (1989) constructed
an analysis model to study fan behavior. Essential variables that are rooted in the study recognize
the importance of how fans make decisions to attend events. Sports marketing agents are hungry
for this information as they have plenty of competition. For instance, a professional sports team
could receive information that many families are having a difficult time paying the ticket prices.
Therefore, a professional sports team marketing manager could cater to those fans by offering
them a family value pack, which includes four seats, concessions and a souvenir baseball cap for
under a hundred dollars. Avid fans are a minority in the sports markets, yet many sports
marketing analysts consider them as a barometer to total fan experience.
Problem Description
Professional sports marketing agents that have multiple sports teams in their market face
a challenge over the bulk of their respective seasons. Each of the professional sports teams are
competing against one another for ticket sales. Additionally, professional sports teams are also in
competition with non-sports entertainment such as concerts, Broadway Theater, and other art
performances. The majority of ticket sales are acquired through the middle-class, which typically
consists of a married couple with several children. Professional sports marketing teams know
that the greater amount of professional events in the market means that not only sports fans, but
also non-sports fans will be drawn to the best experience, regardless if it is a sporting event or
not. Research has shown that sports fans will continue to stay loyal to the team as long they
enjoy or receive identity from going to the games (Laurent, & Kapferer 1985). Therefore, the
mission of the every professional sports team in each league is not only to maintain the current
fan base, but also increase the fan base. Increasing a team’s fan base originates at a person
attending the game and having a positive game experience. Furthermore, fan loyalty increases as

more fans enjoy viewing the game (Zillman, Bryant, Sapolsky, 1989). Professional sports teams
in the National Football League, National Basketball Association, Major League Baseball and
the National Hockey League garner at least fifty percent of their revenue from ticket sales.
Moreover some other leagues rely on ticket sales for eighty percent of their annual revenue
(King, 2010). If national sports teams count on ticket sales for revenue, then it is plausible that
other performances and shows weigh ticket sales heavier than professional sporting events.
Furthermore, Markusen and King (2003) submit that artistic dividends or available ticket
revenue is comparable with professional sporting event revenue. Overall event marketing in a
city market may seem innocuous to the average citizen, but on the contrary, a deep battle is
leveraged for ticket sales.
Population
The sample population that this study proposes to use is from fifty surveys that were
conducted in several cities. The construct of the surveys would be gathered from people that
attended professional sporting events from three markets. The sample surveys would come from
Tampa, Florida, Boston, Massachusetts, and Pittsburgh, Pennsylvania. Surveys would be
acquired from the same three professional sports of baseball, football and ice hockey. The fans
from these markets and sports will be asked to rank their fan experience based on different
variables that are a part of fan experience. These professional sports and markets have similar
sports teams, yet each of them differentiate from each other. According to the U.S. Census
Bureau, (2011) the median household income for Tampa, Florida was $43,832 in 2011. The
median income for Pittsburgh, Pennsylvania was $48,854 and Boston, Massachusetts median
household income was $69,455. In the sample group consists a low, a medium and a high
variable.

The sample group is going to respond to variables that directly influence fan experience.
These variables are ticket price, concession quality, seat comfort and ease of parking. The
sample group will respond to each of the variables on a 1-10 scale or a “Likert scale.”
Fan experience
Competition for ticket sales is tough as was stated in prior paragraphs. To compound
professional sports managers’ challenges, spectators desire a winning team. Professional sports
organization owners not only have to pay a large salary, they also have to please the fans. Sports
fans are now more aware of the experience they are receiving in response to what they are
paying at the parking garage, ticket office and the concession stands. A spectator that enjoys
going to the game will likely spend their dollars on concessions and other game atmosphere
items such as raffles and souvenirs. Conversely, a spectator that feels over-charged will likely
constrain his spending to minimal expenditures. These fans are likely to leave the game early and
not return to the venue (Yong, Zhang, Cattani, & Pastore, 2011). Attending a sporting event is
more than simply watching a game; it is a total fan experience. Getz (2005) submits that
attending a sporting event is a fusion of programs and service qualities.
Researchers have concluded that several factors go into the decision of someone
purchasing a sporting event ticket. Initial studies conclude that the variables were vague which
included simply visibility of the sporting event, security and facility cleanliness. A sports
organization that is simply meeting these standards will often miss the finer details that other
sports organizations are excelling in. For instance, sports organizations are now focusing their
staff on fan tangible experiences such as, “employees, facility access, concessions, comfort,
game experience, show time, convenience, price and smoking” (Kelley, & Turley, 2001, pp.161-
166). In this study, employees were evaluated by their knowledge of facility operations,

friendliness, and helpfulness from a fan’s perspective. Also, researchers inquired how fans
related to other fans at the game. Fan camaraderie is important as the team scores a point, wins a
game or even wins a championship. Fans enjoy feeling a bond with other fans at the games. Fans
and spectators want a sense of belonging when they attend an event. Lastly, the professional
sports event venue environment is important to fans which includes comfort, game experience,
show time, convenience and ticket price. Through this research, professional teams and event
marketing agents are using this model to gauge service environment and quality. An essential
point for event marketing managers is that many of these service attributes directly correlate to
ticket sales. Professional sports teams or other non-sports teams that master these vital service
and quality benchmarks will become market leaders by acquiring an enormous amount of ticket
sales (Yong, Zhang, Cattani, & Pastore, 2011). In a separate study, the author conveys the same
conclusion. If an organization provides high service and quality, then they will have a better
chance of receiving customer satisfaction (Dolmont, 2009).
Similar to other research analyses, our projected survey’s variables are ticket price,
concession quality, seat comfort, and parking quality. The surveys will come from the same three
types of professional sports from Tampa, Florida, Pittsburgh, Pennsylvania, and Boston,
Massachusetts. The common variable between each of the three markets will be the same sports.
The service variables will ultimately measure spectator’s perceptions of each of their respective
teams from the last six months. This timeline will assist in eliminating outliers, so the analyst
will find true service means. Outliers in quality or service variables include inclement weather,
an injured player on the team, or a single fan that is persistently disgruntled. Most of these
variables exist frequently within a season, therefore finding a mean will result from eliminating
skewed data.

Expected outcomes
Through surveys and data research, the expected outcome is that professional sports
organizations that focus only on a few of the essential variables will have lower survey scores.
Professional sports organizations that focus on all of the values, will have a higher score than
their local counterparts. A majority of the public believe that a team winning a championship
will draw ticket sales. A team winning games will draw the avid fans, yet new spectators need
something more than a winning team on the field, they need a winning atmosphere. The
expectation is that team ownership groups who focus on the game experience variables will
encourage not only repeat sales, but also new sales from within the city market. Some ownership
groups perceive that they are providing an excellent game atmosphere. Their perceptions will be
put to the test through sample surveys from select markets. Overall, team ownership groups will
likely find that a person coming into their building for the first time will not have same
perceptions on game experience.
How this study measures performance
The study will measure performance through an independent research company. The
research company will select ticket data from each of the three team’s box offices in their
respective markets. The research team will then select people that purchased tickets within the
last six months. Season ticket holders and corporate accounts will be excluded, because these
spectators are likely to be biased toward the team in their answers. The people who are selected
to take the survey will receive a ten dollar voucher towards a game ticket or towards the team’s
souvenir shop. The survey will contain four questions. Those that have been selected to take and
agree to take the survey will respond to the data using a “Likert” scale. The selected group will
respond to these categories concerning game experience: ticket price, concession quality, seat

comfort and parking quality. The questions for each of the categories are: “On a scale of 1-10,
did you receive appropriate concession quality comparable to the amount you paid?” “On a scale
of 1-10, did you receive appropriate seat comfort comparable to admission price?” “On a scale of
1-10, did you receive appropriate parking quality comparable to the amount that you paid?” “On
a scale of 1-10, did you receive appropriate game experience to the amount you paid for your
ticket?” Although, it is optional, respondents to the surveys can add why they gave a high or low
score. Each question value will be worth ten points. A perfect score for the team would be a 40,
while the absolute minimum would be 4. After the results are tallied, the information will be
submitted to team ownership groups. The ownership groups will likely use the additional
information to make decisions on how to improve overall game experience.
Research Design
Setting up the Study and acquiring the data
An independent research company will contact three professional sports teams in the
National Football League, Major League Baseball, and the National Hockey League. The
research team will conduct a sample survey from the Boston, Massachusetts, Tampa, Florida,
and Pittsburgh, Pennsylvania markets. The research team will contact each of these teams, so
they can contact non-season ticket holders and non-corporate ticket holders. This sample
includes spectators who have attended once or several games in the past season. The research
team will ask the spectators to fill out a survey on game experience based on the last six months.
The variables that they will consider are: ticket price, concession quality, seat comfort and
parking quality. Each of the three markets will receive the same test to those that have attended
games in the last six months. The expectation of the results from this survey will include

ownership awareness of spectators’ perception of game experience as well as the opportunity for
ownership to improve future game experience.
Selecting the groups
There will be a total of nine groups, of which there will be three common denominators
or three groups. Sample groups will come from Tampa, Florida, Boston, Massachusetts, and
Pittsburgh, Pennsylvania. The groups are people who have purchased average cost tickets from
the respective professional sports team:
Tampa, Florida: Tampa Bay Buccaneers (football), Tampa Bay Rays (baseball), and
Tampa Bay Lightning (hockey).
Boston, Massachusetts: New England Patriots (f), Boston Red Sox (b), and Boston
Bruins (h).
Pittsburgh, Pennsylvania: Pittsburgh Steelers (f), Pittsburgh Pirates (b) and Pittsburgh
Penguins (h).
An independent research company will provide the results to each of the above listed
teams from each of the different sports surveys. The scores of each of the same sport will be
compared with one another sport in the different markets. Then, the overall top score in each
sports market will be compared to other top market scores. Lower scores will range from 10 to
19, medium scores will range from 20 to 29 and high scores will range from 30 to 40.
Research hypothesis
The research hypothesis will evaluate higher game experience quality, which will equate
to middle class fans purchasing more professional sports tickets in a market with two or more
professional sports teams. The team in each market with the highest overall game experience

score would be proposed to have the highest ticket sales in that market. Survey questions that
will determine overall game experience from the middle-economic class are:
 Rate the value of your game ticket price in respect to overall atmosphere on scale of 1-
10, with 10 as the highest score.
 Rate the value of your game time concessions quality on scale of 1-10, with 10 as the
highest score.
 Rate the value of your seat comfort quality on a scale of 1-10, with 10 as the highest
score.
 Rate the value of your parking quality on a scale of 1-10, with 10 as the highest score.
Statistical Hypothesis
We will use hypothesis testing to determine the overall sport winner as well as the market
winner.
 There is no difference between the markets and their respective sports.
H0: Tampa (football) – Boston (football) =0
H0: Tampa (baseball) - Boston (baseball) =0
H0: Tampa (hockey) - Boston (hockey) =0
If we reject the null hypothesis, we then can conclude that there is a difference in overall
game experience between the different markets. If we consider using a one-tailed
analysis, we will also be able to determine if the market is influencing overall game
experience or if the team/ownership is influencing overall game experience.
 There is no difference between each of the sports within the same market.
H0: Tampa (football) –Tampa (baseball) =0
H0: Boston (football) –Boston (hockey) =0

H0: Pittsburgh (baseball) - Pittsburgh (hockey) =0
Likewise, if we reject the null hypothesis, we then can conclude that there is a difference
between the sports within the same market. If we take a one-tailed hypothesis, we then
can determine if the organization or the sport influences overall game experience.
We will use the following hypotheses using a regression analysis for the entire group as
well as the teams in their respective markets.
 There is no relationship between a sports market or the different teams within the market.
H0: β(Sports market vs. sports teams)=0
If we reject the null hypothesis, we then can conclude that there is a relationship between
the sports market and the respective team.
 There is no relationship between different professional sports within the same sports
market.
H0: β(Boston (h) vs. Boston (b)=0
H0: β(Tampa (h) vs. Tampa (b)=0
H0: β(Pittsburgh (h) vs. Pittsburgh (b)=0
If we reject the null hypothesis we can determine that there is a relationship between
Boston hockey and Boston baseball, Tampa hockey and Tampa baseball, or Pittsburgh
hockey and Pittsburgh baseball. This is likewise in the correlation between the other
surveyed sports in the market such as football.
Decision rule
Our analysts will determine that our statistics are significant at the 95% level and we will
reject the null hypothesis if the p-value is below 0.05.

Limitations of the Study
There are several factors which will make it difficult to limit confounding variables. First,
it will be difficult for the research team as well as each of the team ticket offices to decipher if
the person that purchased a ticket is an avid fan or not. Group ticket sales could include a new
sport spectator as well as loyal fans. Moreover, some spectators have a strong allegiance to one
sport in a market; while another person does not have an interest in the sport. Internet sales of
tickets have increased exponentially over the course of the last decade, which could make it
difficult to identify the original ticket holder. Also, secondary ticket sales through websites such
as Stub hub and Coast to Coast tickets often conceal the identity of the original purchaser.
Whether going to sporting event, concert, or show, most of the populous is shopping for tickets
on the Internet.
It can be difficult to find a person willing to take a survey. Some do not want to provide
personal information. Some do not want to be bothered with follow-up questions. While others
believe they do not have the time or it is not worth their time to fill out the survey. Nevertheless,
a survey with the most plausible avenue of collecting data will come from a recent event. Survey
analysts might have better results waiting after the game as a ticket holder does not have to mail
in a survey or log on to a website. However, those who have attended an event, often rush home
as they want a good night sleep for the next morning or they might have to pick-up their child
from the baby sitter. Also, it is difficult to determine if someone is obstinate, aloof, or is overly
devoted when they submit a survey.
Evaluation of the Study
This study will be useful for most sports marketing agents. It will help them determine
why someone chooses to attend a baseball game over a football game in the fall. If a person

knows very little about baseball, then what factors persuaded him to choose that sporting event to
attend? Past analysts have determined that ticket price, seat comfort, concession quality and
parking quality are all significant decision factors (Matthew, & Fred, 2001). Also, a sports
manager that is in competition with several other sports at the same time of the season, wants to
persuade the public to buy a ticket to his team over another team in the same city. This study
could have bearing on non-sporting events such musicals, comedy shows and performing arts as
well. Some of the show experiences are the same such as ticket price, parking quality, and seat
comfort. However, non-sporting event attenders usually have different perceptions concerning a
show compared to professional sporting event. Show attenders likely relax to enjoy an artistic
performance, while a professional sporting event is filled with action and excitement.
Reject the Null
If the results indicate there is a difference between the markets, then it is likely that there
is another variable impacting the sports event besides the market. A spectator who purchases a
ticket in Pittsburgh, Pennsylvania is likely able to afford a more expensive ticket than a spectator
in Boston, Massachusetts. The reason for the disparity lies in median household income, which is
a barometer of the cost of living in the cities. A ticket for a box seat in one city will likely
purchase a different seat in a different city. If rejecting the null is true, then researchers and
managers will need to limit their research to markets with the same cost of living index. The cost
of living index would skew only one variable, yet many event attendees extrapolate ticket prices
with other non-monetary game experiences.
Fail to Reject the Null

If the results indicate that there is no difference between the markets, then each of the
teams in their respective markets will be comparable to other teams in different markets. This
result would make the other game experience variables comparable in other markets. This would
challenge ownership groups to raise game attenders fan experience; especially if sports markets
are in close proximity of one another. Also, some sports market analysts might determine that
they indeed need to make changes to the service quality as the spectators in the city believe that
each of the different sports teams can offer high quality game experience.

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