Advance Purchasing of Event Tickets. Wendy W. Moe Associate Professor of Marketing University of Maryland February 2008. What is advance purchasing?. “Advance selling occurs when sellers allow buyers to purchase at a time preceding consumption” (Xie and Shugan 2001)
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Wendy W. Moe
Associate Professor of Marketing
University of Maryland
Empirically examine consumer purchasing behavior in the advance ticket market
Response to price and price tiers
Response to scheduling
Findings have implications for policy, but objective is not to derive optimal policies or to forecast.
1. The Role of Price Tiers in Advance Purchasing of Event Tickets
2. The Spatial and Temporal Effects of a Performance Schedule on Ticket Sales
Consumers with different valuations self select into different price tiers.
Ticket categories are classified as either high, medium or low
Face Value Price
Set in advance of the selling period and fixed over time
Promotion codes are offered
May vary from week to week
No dynamic pricing!
Available Face Values
$30 (UL & LL corners)
if t < T
if t = T
The earlier the tickets are made available for sale, the later purchases arrive.
Discounts in the spot market increase sales in the spot market for the high-tier
Higher face values encourage advance purchasing.
Research Questions: Tickets”
Intercept and performance specific characteristics
Indicator for the week before Christmas
Covariate vector that includes intercept, PREWKj, SPTj, TMPj, Vj
More scheduled performances in and around the same venue increases sales while closely scheduled performances (in time) compete against one another.
Performances surrounded by a denser schedule sell later.
Attractive and densely scheduled performances get bigger holiday boost.
More attractive performances have denser schedules around them.