Factors for Dynamic Ticket Pricing Assessment Answer

Factors for Dynamic Ticket Pricing

The concept of dynamic pricing is relevant to both of these events. This practice refers to the practice of varying the prices of products or services on the basis of changing market conditions or changing demand. The focus of this strategy is to charge a higher price at a time when the demand is comparatively higher (Rohani and Nazari 2012).

Since the tickets are sold in advance, the pricing would be dependent on the perceived demand, which would fluctuate between the matches or events of the tournaments (Koba 2012). Therefore, the demand would have to be predicted on the basis of the following:-

• The teams that are playing in a particular match. For matches with rugby teams like England and New Zealand which have significant fanbases, the demand would be higher. This is also true for the Olympics with tickets for events featuring popular athletes like Usain Bolt and teams like Brazil's football team in more demand (Halliday 2019).
• The type of seats that are in demand can also be charged for higher prices with more fans demanding to be seated in those seats, while the prices of other seats can be lowered as the demand decreases (Koba 2012).
• The demand would also be dependent on the type of matches in the tournament. This means that initial matches can be priced lower and as the tournament progresses, the prices can be increased with the semi-final and final matches being charged higher (Halliday 2019).

Difference in the Target Segment

One of the crucial factors that need to be considered while implementing a dynamic pricing approach is the market segments of the potential customers (Rohani and Nazari 2012). The segmentation factors that need to be considered to target the potential customers while adopting dynamic pricing in both events are:-

• The age and gender of the customers are crucial factors for segmenting sports audiences (Myburgh et al. 2019). For the Rugby World Cup, the primary target audience will be young and middle-aged men (Trifonova 2019). On the other hand, the Olympics has a wider viewership with the primary target audience being people of all ages above 18 (Pollack 2023).
• The location of the consumers, with the people more interested in the matches and events of their own countries. Thus, popular teams and events will draw more foreign fans to the tournament. However, the Olympics has a wider target since it consists of a majority of the countries in the world in comparison to Rugby which has a presence in only a few countries (Myburgh et al. 2019).
• Behavioural segmentation can be done in the form of die-hard fans, socialisers or casual visitors (Myburgh et al. 2019). This segmentation is similar for both events.
• Psychographic segmentation can be done on the basis of the interest and opinions of the customers (Myburgh et al. 2019). Thus, popular rugby teams like England and New Zealand will attract more fans to the stadiums (Halliday 2019). Similarly, for the Olympics, popular athletes like Kylian Mbappe (Cazeneuve 2021), popular teams like the US basketball and popular events like football, swimming, track and field and basketball will attract more crowds to the events. As a result, the Olympics has a wider target audience (Athletics Weekly 2023).

More variety in the target audience means that the process of the tickets will be more varied (Rohani and Nazari 2012). As can be seen from the discussion, the Olympics has a wider target audience, which means that it will have higher variations in ticket prices.

References

Athletics Weekly. 2023. 5 most popular Olympic sports. Available at: https://athleticsweekly.com/aw-promotion/5-most-popular-olympic-sports-1039964748/

Cazeneuve, B. 2021. 10 Tokyo Olympians to Watch Ahead of Paris 2024. Available at: https://www.si.com/olympics/2021/08/09/tokyo-olympians-paris-2024-us-athletes-to-watch

Halliday, J. 2019. RWC final ticket prices rocket up to £12,400 on resale websites. Available at: https://www.theguardian.com/money/2019/oct/27/rwc-final-ticket-prices-rocket-12400-touting-websites-viagogo-stubhub

Koba, M. 2012. How Dynamic Pricing Is Changing Sports Ticketing? Available at: https://www.cnbc.com/id/48194739

Myburgh, E., Kruger, M. and Saayman, M., 2019. When sport becomes a way of life–a lifestyle market segmentation approach. Managing Sport and Leisure, 24(1-3), pp.97-118. https://doi.org/10.1080/23750472.2019.1590156

Pollack, J. 2023. What The Olympics Has Taught Us About Marketing Strategy. Available at: https://www.mni.com/blog/what-the-olympics-taught-us-about-marketing-strategy/#:~:text=Millions%20of%20people%20watch%20the,%2Dyear%2Dolds%20and%20older

Rohani, A. and Nazari, M., 2012. Impact of dynamic pricing strategies on consumer behavior. Journal of Management Research, 4(4), pp.143-159. https://doi.org/10.1016/j.sorms.2015.03.001

Trifonova, V. 2019. How to Score a Try with the Rugby World Cup Audience. Available at: https://blog.gwi.com/chart-of-the-week/rugby-world-cup-audience/

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