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Season ticket sales have been a major source of revenue for sports organizations for decades, and it has been classified as a subscription-based service. In recent years, subscription services, such as season tickets, have become more and more popular.
November 9, 2023
by Ye Lei
Season ticket sales have been a major source of revenue for sports organizations for decades, and it has been classified as a subscription-based service. In recent years, subscription services, such as season tickets, have become more and more popular. Consequently, scholars and managers are increasingly interested in understanding the factors that influence consumers' decisions to renew their season tickets.
Dr. Yonghwan Chang and his colleagues recently conducted a study utilizing big data analysis to examine the actual behavior of season ticket renewals in sport spectatorship services. Specifically, the research team aimed to find out (1) what makes season ticket holders renew their season tickets, (2) how they decide which factors are most important, and (3) whether there are any differences between those who have regular seats and those who have premium seats.
Big Ten Conference (a collegiate athletic conference in the US) partnered with the research team and provided the season ticket holders’ data from 2018 to 2019. A total of 8,896 complete samples were gathered for analysis. Dr. Chang and his team utilized the decision tree algorithm, which is a type of supervised learning algorithm, to examine the collected data.
Results indicate that regular seat season ticket holders (R-STHs) valued discounted tickets, affordability, and entertainment. On the other hand, premium seat season ticket holders (P-STHs) were more concerned with tenure as a ticket holder, game outcomes, and business use. For both types of ticket holders, recent attendance and exclusive benefits played an important role in influencing their decisions to either renew their seats or discontinue their subscriptions.
These results provide valuable insights for managers, highlighting the differences in decision-making processes between R-STHs and P-STHs. It also offers guidance on how managers and practitioners can effectively use their available resources to keep their subscribers.
“By employing a fresh machine learning approach, this research offers a unique contribution to the literature as we discovered hidden patterns of consumers’ decision-making processes (that may not be identified in conventional consumer behavior and service management studies).”
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Chang, Y., Warren, C., & Katz, M. (2023). Determinants of subscription renewal behavior in sport spectatorship services: A CHAID decision tree modeling approach. Sport Marketing Quarterly, 32(2), 124-136. https://doi.org/10.32731/SMQ.322.062023.03