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Culture and Other Market Demand Variables: an Exploration with Professional Baseball in the USA and Taiwan Georgia State University ScholarWorks @ Georgia State University Kinesiology Faculty Publications Department of Kinesiology and Health 2004 Culture and other market demand variables: An exploration with professional baseball in the USA and Taiwan Chia-Ying (Doris) Lu Brenda Pitts Georgia State University, [email protected] Follow this and additional works at: https://scholarworks.gsu.edu/kin_health_facpub Part of the Kinesiology Commons Recommended Citation Lu, D. & Pitts, B. G. (2004). Culture and other market demand variables: An exploration with professional baseball in the USA and Taiwan. In B. G. Pitts (Ed.), Sharing Best Practices in Sport Marketing: The Sport Marketing Association’s Inaugural Book of Papers (pp. 141 - 166). Morgantown, WV: Fitness Information Technology. This Book Chapter is brought to you for free and open access by the Department of Kinesiology and Health at ScholarWorks @ Georgia State University. It has been accepted for inclusion in Kinesiology Faculty Publications by an authorized administrator of ScholarWorks @ Georgia State University. For more information, please contact [email protected]. Sharing Best Practices in Sport Marketing: The Sport Marketing Association’s Inaugural Book of Papers Edited and Selected from the Inaugural Conference, November, 2003 Brenda G. Pitts, Editor Vice President for Academic Affairs Sport Marketing Association, 2003-2006 Professor, Director, Sport Management Masters Program Georgia State University Fitness Information Technology A Division o f the International Centerfor Performance Excellence West Virginia University Copyright ©2004 by Sport Marketing Association ALL RIGHTS RESERVED Reproduction or use of any portion of this publication by any mechanical, electronic, or other means is prohibited without the written permission of the publisher. Library of Congress Card Catalog Number: 2004110849 ISBN: 1885693524 Cover design: 40 West Studios Copyeditor: Geoff Fuller Proofreader: Julie Burrell Production Editor: Geoffrey C. Fuller Typeset by 40 West Studios Printed by Data Reproductions Printed in the United States of America 10 98765432 1 Fitness Information Technology 262 Coliseum, WVU-PE PO. Box 6116 Morgantown, WV 26506-6116 800.477.4348 (toll free) 304.293.6888 (phone) 304.293.6658 (fax) Email: [email protected] Web Site: www.fitinfotech.com CHAPTER 11 Culture and Other Market Demand Variables: An Exploration With Professional Baseball in the USA and Taiwan CHIA-YING (DORIS) LU BRENDA G. PITTS Abstract Even though the consumer of spectator sports in the United States has many choices, professional baseball is ln Taiwan the spectator has still one of the most popular sports. In Taiwan, however, little choice baseball is the the spectator has little choice-baseball is the only pro- only professional team sport, fessional team sport. Unfortunately, there is very little research involving culture, other market demands, and baseball in America, and no research in Taiwan. Hence, the purpose of this study was to examine culture and other market demands in relation to fac­ tors that influence spectator attendance at professional baseball games in the Taiwan Major League (TML) and in minor league baseball (MiLB) in the United States. The findings revealed that fans in MiLB and TML have some different attendance factors. Especially, they have the most differences in the following factors: offense o f home team, offense on visiting team, defense o f visiting team, officialfan club member, special promotions, and going with family. Introduction and Review of Literature Baseball is one of the most popular sports in America. It has long occupied a special place in the cultural and social life of the United States (Land, Davis, 6c Blau, 1994). For example, in 2001, over 72 million spectators attended major league baseball (MLB) regular season games and the average at­ tendance per game was 30,073 with 64.6% of seating capacity (percentage of seats occupied at home games; Thomas, 2001a, 2001b). Over 1.6 million people attended the playoffs and average attendance per game was 48,107 with almost 100% (96.2%) of seating capacity (Thomas, 2001c). CULTURE AND OTHER MARKET DEMAND VARIABLES 141 Although most public attention has been paid to major league baseball, minor league baseball (MiLB) has experienced resurgence in popularity in recent years, resulting in ever-increasing numbers of fans at the ballparks (Branvold, Pan, 8c Gabert, 1997). For example, attendance at MiLB games has grown from 11 million fans in 1975 (Morgenson, 1992) to 38.8 million in 2001 (‘Attendance Hits 38.8 Million, Second Highest Ever,” 2001). In the 2001 regular season alone, an average of 3,736 people attended per game in the MiLB games (“Attendance Hits 38.8 Million, Second Highest Ever,” 2001). It has been found that historically the franchises that were virtually given away or sold for a low price, whereas today franchises are attracting offers of several hundred thousand dollars for Class A franchises to several million dollars for AAA franchises (Branvold et al., In Taiwan, baseball has become 1997; Johnson, 1993). In the same study, Branvold et al. also a major team sport partly identified the two salient conjectural contentions that might because Taiwan teams have explain this dramatic attendance increase: (1) the higher cost won consecutive Little League of attending major league games has made MiLB games an World Series Championships, attractive economic alternative, and (2) the huge salaries and Youth World Championships greater mobility enjoyed by major league players have reduced AA & AAA levels, as well as the fans’ ability to relate to major league players. For the sport other amateur levels. marketers, analyzing what factors account for this current booming phenomenon in MiLB would be beneficial. In Taiwan, baseball has become a major team sport partly because Taiwan teams have won consecutive Little League World Series Championships, Youth World Championships AA 8c AAA levels, as well as other amateur levels. Professional baseball as a form of entertainment in Taiwan has been rapidly growing, beginning with the Chinese Professional Baseball League (CPBL) in 1990. In its modest beginnings in 1990, the CPBL had only four teams-Elephants, Lions, Dragons, and Tigers. However, fan attendance has increased gradually, with a tremendous surge of interest after Chinese Taipei won a silver medal in baseball in the Barcelona Olympic Games in 1992. More and more enterprises wanted to join the CPBL. Being wary of overexpansion, the CPBL decided to allow only two more teams-Bulls and Eagles-to join the league. Being unable to join the league, two companies, Sampo and ERA together formed a second professional baseball league, the Taiwan Major League (TML),in 1997 (Chen, 2000). The China Trust Whales joined the CPBL in 1998. However, three teams-Eagles, Tigers and Dragons-were terminated during 1998 and 1999. In 1999, the remaining four teams in the CPBL- Elephants, Lions, Bulls, and Whales-averaged 1,786 spectators per game for a total of 496,433 specta­ tors. The TML had four teams with an average of 3,296 spectators per game and a total attendance of 553,659 spectators. However, in 1996, there was a bribery scandal in the CPBL. This scandal influenced the whole Taiwan society dreadfully. Professional baseball was not perceived as a pure and clean game anymore. The role model function of profes­ sional baseball players was in question. In addition, the launching of However, in 1996, there the TML and the transference of star CPBL players to the TML in was a bribery scandal in the 1997 heavily affected attendance in the CPBL in 1997 (Liu, 1999). CPBL. Professional baseball In Table 1, it is obvious that attendance in the CPBL has decreased was not perceived as a pure significantly since the 1997 season. In addition, after six years of and clean game anymore. splitting the market, the two leagues finally decided to merge into one in the beginning of 2003. Two TML teams (Gida 8c Agan) joined CPBL, and there are six teams playing in the new CPBL this 142 CHAPTER ELEVEN season. Although according to CPBL, the attendance has shown little comeback since last year, and strategies for attracting more people to games is an important issue for teams and the league. Live games and televised games are the main products of professional sport teams. Indeed, pro­ fessional sports exist for the purpose of entertaining spectators. Hence, game attendance is critical. It has been shown that gate receipts (sales of tickets and admission fees to games) can be a major source Table 1 Attendance of the Chinese Professional Baseball League and the Taiwan Major League TML CPBL CPBL TML Per Game Year Attendance Per Game Average Attendance Average 1990 899,955 5,000 1991 1,238,063 6,878 1992 1,600,549 5,928 1993 1,607,677 5,954 1995 1,646,391 5,488 1996 1,364,424 4,548 1997 685,832 2,041 696,999 3,630 1998 690,089 2,191 695,936 3,222 1999 496,433 1,786 553,659 3,296 2000 (7/31/00) 207,403 1,673 397,494 3,936 of revenue for major and minor professional sports teams and leagues. Other revenue sources include public funds, private sector investment, sponsorship funding, and media broadcasting rights fees. For some professional sports, revenue from ticket sales can account for as much as 60% of total revenue (Howard 8c Crompton, 1995; Howard 8c Crompton, 2004; Saudohar 8cMangan, 1991; Zhang, Pease, 8c Smith, 1998). Green (1995) determined that attracting fans to games is the major avenue for profes­ sional sports franchises to distinguish themselves from the rest of their league. He also indicated that in order to increase their profits, home teams need to effectively utilize various marketing strategies to increase attendance. Consumer Behavior and Sport Business The sport business industry has experienced phenomenal growth in a short period of time (Pitts 8c Stotlar, 2002). A successful marketing strategy can play a very important role in the sport busi­ ness.
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