Article ID: | iaor20061959 |
Country: | United Kingdom |
Volume: | 1 |
Issue: | 3 |
Start Page Number: | 275 |
End Page Number: | 282 |
Publication Date: | Oct 2002 |
Journal: | Journal of Revenue and Pricing Management |
Authors: | Volpano Louis J., Savitski David W. |
Keywords: | recreation & tourism |
This paper develops a proposal to test market pay-per-view events, generating data to be used to estimate how customer and attraction attributes affect customer willingness to pay. A theoretical foundation for this pricing analysis is developed and then applied to a test case where an event was sold by REQUEST TV at two prices in two markets. It is proposed to generalise this matched-cell experiment to allow for variations in customer and attraction attributes enabling the link(s) between attributes and price to quantified. Analysis of these estimated links is then used to enhance profit.