The Use of Simulation Technology in Sport Finance Courses: The Case of the Oakland A’s Baseball Business Simulator

Teaching a graduate level sport finance class can be quite complex. With a variety of concepts, such as pricing, budgeting, and public funding, to convey in a limited amount of time, new forms of pedagogy are necessary to assist instructors as this technologically-advanced generation enters into academia. Subsequently, technology has been created to apply basic concepts related to finance to the complexity of a professional sports organization. One such program is the Oakland A’s Baseball Business Simulator. Through interviews and “emotional recall” (Ellis, 2004), this evaluative case study seeks to determine the effectiveness of this technology within this environment.Business simulation; sports business; sport finance; web-based simulations; business of baseball; case study.

Simulation in Sport Finance

Simulations have long been used in business schools to give students experience making real-world decisions in a relatively low-risk environment. The OAKLAND A’S BASEBALL BUSINESS SIMULATOR takes a traditional business simulation and applies it to the sport industry where sales of tangible products are replaced by sales of an experience provided to fans. The simulator asks students to make decisions about prices for concessions, parking, and merchandise, player payroll expenses, funding for a new stadium, and more. Based on these inputs, the program provides detailed information about the state of the franchise after each simulated year, including attendance, winning percentage, revenues vs. expenses, revenue sharing, and stadium financing. The use of simulations such as this one enhances students’ organizational skills and students’ ability to think critically and imaginatively about the data while applying relevant knowledge and an appropriate strategy to achieve the best possible results. This is particularly important in the field of sport management where few, if any, other simulators exist that are specific to the field.baseball business; computer-based learning; simulation/gaming; stadium/facility financing; sport finance; sport management

Examining Consumer Perceptions of Demand-Based Ticket Pricing in Sport

Dynamic ticket pricing (DTP), a new revenue management (RM) strategy in sport, has grown in popularity in response to the demand-based ticket resale market. Previous research has examined the relationship between the primary and secondary ticket market and determinants of price in a DTP environment. However, research has not focused on consumer perceptions of DTP or resale prices. The purpose of this study was to examine consumer perceptions of demand-based pricing over time, to assess the influence of attitudes on perceived value and purchase intentions. Results indicated that time, team performance expectations, fairness perceptions, seat location, and ticket market influenced perceived value of the ticket. Interestingly, these variables were not consistent when examining purchase intentions. Further investigation of the perceived value/purchase intention relationship is warranted when using DTP. Sport managers can use these findings to better understand the impact of RM strategies like DTP on consumer attitudes and behaviors

Examining the Role of Price Fairness in Sport Consumer Ticket Purchase Decisions

Ticket pricing in professional sports is transitioning from a cost-based to demand-based approach. It has been argued that consumer perceptions of fairness regarding demand-based ticket pricing could influence purchase decisions. Perceptions of unfair pricing practices can lead to dissatisfaction and negatively affect purchase behavior. However, familiarity with demand-based pricing strategies could mitigate perceptions that real-time price fluctuations are unfair to the consumer. Guided by transaction utility theory, the current study examined the relationship between various ticket offers, consumer perceptions of fairness, familiarity, and intentions to purchase professional sports tickets. The findings support previous theory suggesting perceptions of fairness and purchase intentions differ based on specific transaction conditions. Source of the ticket, reference price, and familiarity played a role in these perceptions. This study extends the body of knowledge in sport consumer behavior by highlighting the value of fairness perceptions, familiarity, reference price, source of the ticket, and the use of price as a marketing tool

Segmenting Motivation: An Analysis of Fantasy Baseball Motives and Mediated Sport Consumption

Fantasy sport consumer behavior research is a burgeoning area of inquiry as this growing segment of sport fans exhibits unconventional, yet robust media consumption habits. In addition, consumer motivation and market segmentation represent core principles within the study of marketing, yet the integration of these two essential concepts with regard to sport consumers is limited. The purpose of this study was to explore fantasy baseball motives, develop a motive-based taxonomy of users, and quantify the differences between segments through an examination of mediated sport consumption. An exploratory hierarchal cluster analysis with a subsequent K-means analysis was conducted to determine the number of segments. Additionally, a MANOVA was performed to ascertain behavioral differences between the motive-based clusters. Four distinct segments emerged with statistically significant differences between each with regard to mediated consumption intentions. The following paper addresses theoretical and practical implications for academics and practitioners. Future research is also suggested

Dynamic Ticket Pricing in Sport: An Agenda for Research and Practice

For decades, the airline and hotel industries have regularly changed prices to keep pace with fluctuating levels of consumer demand. This demand-based approach to pricing is referred to as revenue management. Meanwhile, the sport industry has traditionally underpriced tickets using a cost-based approach in order to maximize attendance and promote fan satisfaction. However, as operating costs have grown, sport organizations are now forced to reconsider these conservative pricing practices. Subsequently, in 2009, the San Francisco Giants were the first team to utilize dynamic pricing, which is a strategy that mirrors the revenue management approach. While data supporting or refuting the reported benefits of this approach in sport remains sparse, the current paper utilizes the research on revenue management to develop an agenda of considerations regarding the use of demand-based ticket pricing strategies in sport. The paper is designed to guide researchers as they begin to explore the strategy\u27s myriad of critical (and yet unexplored) issues. Additionally, practical implications of adopting this pricing strategy in sport are considered

Proceed to Checkout? The Impact of Time in Advanced Ticket Purchase Decisions

When purchasing tickets in advance, sports consumers are often faced with uncertainty. Most notably, in today\u27s 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\u27s 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

Developing a Pricing Strategy for the Los Angeles Dodgers

In 2011, the Los Angeles Dodgers Stadium averaged 36,236 fans per game, dropping from 43,979 in 2010 and 46,440 in 2009, an overall loss of about 10,000 fans per game in just two years. In 2011, The Dodgers\u27 attendance ranking fell from first to eleventh in Major League Baseball (MLB), which amounted to a loss of over 800,000 tickets sold per year, as well as the resulting revenue from concessions and parking. Despite the Dodgers\u27 long and storied history, ticket demand had been negatively influenced by inconsistent performance, mounting bad publicity surrounding owner Frank McCourt\u27s divorce, the beating of a San Francisco Giants fan on opening day at Dodger Stadium, and the threat of suspension or termination of the Dodgers by MLB commissioner Bud Selig if McCourt did not agree to sell the team. In 2009, the San Francisco Giants were the first MLB team to adopt dynamic ticket pricing, which adjusts prices in real time to match fluctuations in consumer demand

The Use of Simulation Technology in Sport Finance Courses: The Case of the Oakland A’s Baseball Business Simulator

Teaching a graduate level sport finance class can be quite complex. With a variety of concepts, such as pricing, budgeting, and public funding, to convey in a limited amount of time, new forms of pedagogy are necessary to assist instructors as this technologically-advanced generation enters into academia. Subsequently, technology has been created to apply basic concepts related to finance to the complexity of a professional sports organization. One such program is the Oakland A’s Baseball Business Simulator. Through interviews and “emotional recall” (Ellis, 2004), this evaluative case study seeks to determine the effectiveness of this technology within this environment

The Use of Simulation Technology in Sport Finance Courses: The Case of the Oakland A’s Baseball Business Simulator

Teaching a graduate level sport finance class can be quite complex. With a variety of concepts, such as pricing, budgeting, and public funding, to convey in a limited amount of time, new forms of pedagogy are necessary to assist instructors as this technologically-advanced generation enters into academia. Subsequently, technology has been created to apply basic concepts related to finance to the complexity of a professional sports organization. One such program is the Oakland A’s Baseball Business Simulator. Through interviews and “emotional recall” (Ellis, 2004), this evaluative case study seeks to determine the effectiveness of this technology within this environment