Does Bat Day Make Cents?: The Effect of Promotions on the Demand for Baseball

Journal of Sport Management, Vol. 14, 2000

20 Pages Posted: 24 Aug 2006  

Mark McDonald

University of Massachusetts Amherst

Daniel A. Rascher

University of San Francisco - Sport Management Program; SportsEconomics

Abstract

A primary objective of sport marketers in the professional sport setting is to develop strategies to increase game attendance. Historically, one of the strategies to accomplish this goal has been the utilization of special promotions. This paper studied the impact of promotions on attendance at professional sport games. Specifically, this research examines (1) the overall effect of promotions on attendance, and (2) the marginal impact on attendance of additional promotional days. Using a data set containing 1500 observations, we find that a promotion increases single game attendance by about 14%. Additionally, increasing the number of promotions has a negative effect on the marginal impact of each promotion. The loss from this watering down effect, however, is outweighed by the gain from having an extra promotion day.

Keywords: Major League Baseball, Promotions, Attendance, Demand, Regression

JEL Classification: L11, L83

Suggested Citation

McDonald, Mark and Rascher, Daniel A., Does Bat Day Make Cents?: The Effect of Promotions on the Demand for Baseball. Journal of Sport Management, Vol. 14, 2000. Available at SSRN: https://ssrn.com/abstract=926246

Mark McDonald

University of Massachusetts Amherst ( email )

Department of Operations and Information Managemen
Amherst, MA 01003
United States

Daniel A. Rascher (Contact Author)

University of San Francisco - Sport Management Program ( email )

San Francisco, CA 94117
United States

SportsEconomics ( email )

2200 Powell St.
Emeryville, CA 94608
United States

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