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

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.

Trapping Fake Discounts as Drivers of Real Revenues and Their Impact on Consumer’s Behavior in India: A Case Study

“…The firms involved in fake discounts take advantage of the absence of strong law in India to make their profits. However, consumers who perceive price unfairness may spread negative word-of-mouth information, in addition to resisting purchases, and therefore negatively affect the sustainable long-term profits of suppliers [7]. On the other hand, the outcomes of such fake discounts are impossible to accurately identify [8].…”