All-Inclusive v. Partitioned Pricing in Sports: The Effects of Pricing Format on Ticket Purchasers’ Response

Abstract

Sport organizers may employ one of two common pricing strategies—partitioned pricing (PP) and all-inclusive pricing (AIP)—to present the price of the ticket and associated fees to potential consumers. The study examines differences in spectators’ price recall, perceived value, and search intentions when purchasing tickets to attend a regular-season Major League Baseball game based on the pricing format experienced (PP v. AIP), as well as the moderating effect of price tier selected, and participants’ level of team identification on the impact of the pricing format. Findings point to both theoretical and managerial implications associated with the significant effect that the pricing strategy has on the outcome variables. Although the moderating effect of price tier and team identification were nonsignificant, both variables had a direct influence on the dependent variables considered.