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Do Discounts in Ticket Prices Induce Sustainable Profit to Performing Arts Suppliers?

Author

Listed:
  • Hyun Joung Jin

    (Department of Economics, College of Business & Economics, Chung-Ang University, Seoul 06974, Korea)

  • Eun Young You

    (Korea Rural Economic Institute, 601 Bitgaram-ro, Naju-si, Jeollanam-do 58217, Korea)

Abstract
This study investigates the effect of price promotions for musicals on consumer perception of fairness toward other similar musicals and the role of consumer involvement in performing arts as a moderating variable. A threshold regression estimation which was performed using data from a survey on South Korean consumers showed a decrease in consumers’ fairness perception once they became aware of discounts on similar performing arts and, consequently, a decrease in their intent to purchase tickets at regular prices. The results also showed that the samples can be split into low- and high-involvement groups, with the effect of fairness perception on purchase intention statistically significant for both groups, however, larger for the high-involvement group; the high-involvement group is expected to consume more performing arts products than the low-involvement group. These results imply that consumer perception of unfairness regarding ticket price discounts may negatively affect the long-term profits of performing arts suppliers.

Suggested Citation

  • Hyun Joung Jin & Eun Young You, 2019. "Do Discounts in Ticket Prices Induce Sustainable Profit to Performing Arts Suppliers?," Sustainability, MDPI, vol. 11(14), pages 1-12, July.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:14:p:3829-:d:248020
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    References listed on IDEAS

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