simulation terms

Question 1

price elasticity

Answer 1

The percentage change in seat demand divided by the percentage of change in price of the seat.

as price changes, demand changes

Question 2

cost-based pricing

Answer 2

Pricing based on costs to the seller (not usually used in ticket pricing).

Question 3

competition-based pricing

Answer 3

Pricing based on competitors’ pricing in similarly situated markets

Question 4

supply and demand

Answer 4

The principle that describes the relationship between the number of seats available in a stadium and
how much customers are willing to pay for a particular seat

Question 5

value-based pricing

Answer 5

Pricing based on consumer demand and the value consumers associate to particular seats

Question 6

substitution effect

Answer 6

When a change in the price of one seat affects the sales of another seat because customers choose one
seat over the other

Question 7

cross-elasticity

Answer 7

The measurement of change in demand of a particular seat when a change of price in another seat occurs.

Question 8

loss leader

Answer 8

ticket sold below price of the seat

encourages ppl to buy ticket, merch/concessions, and be enticed for future games

Question 9

dynamic pricing

Answer 9

prices set real time based on price elasticity and demand

Question 10

market segmentation

Answer 10

ID subgroups to optimize pricing

Question 11

personal seat lisence

Answer 11

When a customer pays a fee for a license that entitles them to have first right of refusal
season tickets

Question 12

secondary market

Answer 12

A business or individual that purchases tickets at face value and then resells those tickets, usually at a
higher price to make a profit

Question 13

variable pricing

Answer 13

Prices set before the season that vary from game to game maximize profits

Question 14

egress vs ingress

Answer 14

egress = getting fans/vehicles out of venue

ingress = moving into venue

Question 15

in-house vs outsourced

Answer 15

in house = prep by stadium

outsourced = function perf by hired outside comp

Question 16

throughput

Answer 16

number of people that can be processed per time unit

Question 17

income effects

Answer 17

as someone’s income inc, they will begin to buy more expensive products

i.e. will buy VIP parking across the street

Question 18

on-site vs off-site lots

Answer 18

on-site = on stadium property, owned by stadium

off-site = satellite lots, could be owned by others

Question 19

substitution effects parking

Answer 19

as team lot prices inc, will look for cheaper substitutes

Question 20

tailgating

Answer 20

gather with other fans w food and drinks

may pay a premium for it to be by stadium

Question 21

pro forma

Answer 21

projection of future financial performance

Question 22

income statement

Answer 22

shows rev, expenses, proft

Question 23

valuation analysis

Answer 23

estimate numeric value of asset of business…used for investment decisions

Question 24

optimization

Answer 24

maximizing a metric i.e. profit

Question 25

net present value

Answer 25

positive = should implement

Question 26

activation

Answer 26

promoting and advertising a SPONSORSHIP w team

Question 27

brand awareness

Answer 27

percentage/numb of people who can ID company name, logo, etc.

Question 28

product placement

Answer 28

promoting goods in place where they will be recog

Question 29

sponsorship

Answer 29

mutually beneficial relation where sponsor gives benefits in exchange for result measured against PREDEFINED objectives

Question 30

advertising campaign

Answer 30

coordinated series of steps w promotion of product thru various media w diff advertisements

Question 31

saturation point

Answer 31

pt at which advertising spending loses effectiveness at getting fans and sales

Question 32

conversion

Answer 32

number of ppl who directly purchase goods after social media post

Question 33

engagement

Answer 33

number of ppl engaged in social media i.e. retweet, like

Question 34

reach

Answer 34

number of ppl who saw or were impacted by social media content

Question 35

viral marketing

Answer 35

message that spreads ORGANICALLY b/w people

Question 36

blackout

Answer 36

nonairing of an event in media market

Question 37

broadcasting and cable networks

Answer 37

use coaxial wires to transmit signal i.e. ESPN cable has less reach than broadcasting

Question 38

streaming services

Answer 38

sent over internet to play immediately instead of being downloaded

Question 39

collective bargaining

Answer 39

negotiation of wages, etc. by league and players

Question 40

free agency

Answer 40

if player not re-signed, they are free to search for employment anywhere

Question 41

salary cap

Answer 41

limits spending on player salary for parity w/in the league

Question 42

uniform player contract/UPC

Answer 42

common contract among players, allows for differences in salaries, bonuses, incentives, etc.