Measuring Seat Value in Stadiums and Theaters

Abstract

W e study how the seat value perceived by consumers attending an event in a theater/stadium depends on the location of their seat relative to the stage/field. We develop a measure of seat value, called the Seat Value Index, and relate it to seat location and consumer characteristics. We implement our analysis on a proprietary data set that a professional baseball franchise in Japan collected from its customers, and provide recommendations. For instance, we find that customers seated in symmetric seats on left and right fields might derive very different valuations from the seats. We also find that the more frequent visitors to the stadium report extreme seat value less often when compared with first-time visitors. Our findings and insights remain robust to the effects of price and game-related factors. Thus, our research quantifies the significant influence of seat location on the ex-post seat value perceived by customers. Utilizing the heterogeneity in seat values at different seat locations, we provide segment-specific pricing recommendations based on a service-level objective that would limit the fraction of customers experiencing low seat value to a desired threshold.

Multiattribute Loss Aversion and Reference Dependence: Evidence from the Performing Arts Industry

“…Consumers may also use the information on number of seats sold as a fraction of capacity or availability, which they observe prior to their purchases, as reference points, in addition to price reference points. In theaters and stadiums, seats have idiosyncratic value to each person depending on the type of the show, seat position, and customer characteristics (Veeraraghavan and Vaidyanathan 2012). At every purchase, customers observe how many others buy in different seat categories.…”

Integrating sustainability performance measurement into logistics and supply networks: A multi-methodological approach

“…The multi-methodological approach combines multiple research methodologies to explore research problems (Singhal & Singhal, 2012a, 2012b. Such research approaches have been recently applied to problems such as measuring stadium and theatre seat value (Veeraraghavan & Vaidyanathan, 2012) and assessing trust in the forecast of information sharing between suppliers and manufacturers (Özer, Zheng, & Chen, 2011).…”

The Effectiveness of Field Price Discretion: Empirical Evidence from Auto Lending

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