Do Discounts in Ticket Prices Induce Sustainable Profit to Performing Arts Suppliers?

Hyun Joung Jin and Eun Young You
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Hyun Joung Jin: Department of Economics, College of Business & Economics, Chung-Ang University, Seoul 06974, Korea
Eun Young You: Korea Rural Economic Institute, 601 Bitgaram-ro, Naju-si, Jeollanam-do 58217, Korea

Sustainability, 2019, vol. 11, issue 14, 1-12

Abstract: This study investigates the effect of price promotions for musicals on consumer perception of fairness toward other similar musicals and the role of consumer involvement in performing arts as a moderating variable. A threshold regression estimation which was performed using data from a survey on South Korean consumers showed a decrease in consumers’ fairness perception once they became aware of discounts on similar performing arts and, consequently, a decrease in their intent to purchase tickets at regular prices. The results also showed that the samples can be split into low- and high-involvement groups, with the effect of fairness perception on purchase intention statistically significant for both groups, however, larger for the high-involvement group; the high-involvement group is expected to consume more performing arts products than the low-involvement group. These results imply that consumer perception of unfairness regarding ticket price discounts may negatively affect the long-term profits of performing arts suppliers.

Keywords: performing arts; long-term profit; price promotion; fairness perception; purchase intention (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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