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Predicting season ticket holder loyalty using geographical information

Dominik Schreyer (), Sascha L. Schmidt and Benno Torgler

Applied Economics Letters, 2018, vol. 25, issue 4, 272-277

Abstract: Season ticket holders (STHs) are an integral part of the sporting product. Interestingly, and contrary to the persistent interest in analysing the determinants of stadium attendances, sports economists have so far largely refrained from exploring the potential determinants of STH loyalty as expressed through regular stadium attendances. In this article, we address this notable shortcoming by exploring the potential determinants of STH stadium attendance demand. In particular, we examine the yet under-researched role of increasing opportunity costs resulting from larger home-stadium distances in STH stadium attendance demand. Our results suggest that STHs’ geographical location plays an important role in predicting STH stadium attendance demand. More specifically, we observe an unexpected, nonlinear distance–attendance relationship, indicating that behaviourally loyal STHs live either exceptionally close or far away from the stadium.

Date: 2018
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Handle: RePEc:taf:apeclt:v:25:y:2018:i:4:p:272-277