Chapter 6.  Just remember Karl “Carl” Pearson  Let’s run some correlations!  Analyze  Correlate ▪ Bivariate.

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Presentation transcript:

Chapter 6

 Just remember Karl “Carl” Pearson

 Let’s run some correlations!  Analyze  Correlate ▪ Bivariate

 Let’s run some multiple regressions!  Analyze  Regression ▪ Linear

Current team winning percentage: number of wins divided by total games played for the current season. Prior team winning percentage: number of wins divided by total games played for the last season. Team player payroll: total salaries paid to players each year. Stadium quality: the absolute value of the median of range of stadium construction (1912 to present year) minus the year the stadium was built. Fan Cost Index (FCI): the average cost of four tickets (two adults + two children) + four small soft drinks + two small beers + four hot dogs + two programs + parking + two adult-size caps. Income per capita: the average annual income in the metropolitan statistical area (MSA) Population Franchise Index (PFI): (population/NYC population) + (franchises in city/8) + (2 if two MLB teams; 0 if only 1)

Dependent Variable: Attendance as % of MLB Stadium Capacity Independent VariablesStandardized Beta t-valueSig. (1-tail) Stadium Quality Payroll (Current Yr) Winning % Current Year Winning % Previous Year Population+franchises+2 teams Fan Cost Index: Current Year Income Per Capita Explained Variance (R 2 ) for Attendance = 57.7% Explained Variance (R2) of Attendance for next year’s prices (FCI) = 37.8%

 Predicts this year’s prices.  So, what do we learn from MLB data? What drives attendance and allows teams to charge higher prices? 1. Stadium quality 2. Star players 3. Winning (last year and this year) 4. Population & rivalries 5. Perceived ticket value 6. Per capita income

 Baseball  Basketball  Hockey  Soccer  Football

 What about the Florida Marlins and Tampa Bay Rays?  Is it just a Florida thing?  Or do they just have crummy stadiums and get rid of their star players?

Marlins Attendance , , , , , , , , , , , , ,792 What years did the Marlins win the World Series? What did this do for them? Why?

 Why do you think having rivalry teams in Chicago, LA, NYC, and San Francisco helps attendance?

 Sports organizations are able to charge higher prices when they have quality venues, star players, winning teams, recent winning seasons, and larger populations from which to draw.  So, which organizations are bound to be charging lower prices?

 Analyzing the environment (competition, laws/regulations, society/culture, technology, and the economy),  Determining target markets, and  Designing marketing mixes (product, price, promotion, place) to meet the needs/wants of target markets.