Optimisation / Multi-country / Media & Tech
Assessing the demand and price sensitivity of sporting services
"This study identified the impact of varying the pricing of the sport passes to understand the demand and sensitivity of different price points."
Business issue
The client previously only offered a single multi-sport pass, meaning anybody who registered could see all events from a variety of sports. In addition to understanding the price sensitivity of the current sports pass, research was needed to understand the potential for splitting out sports as a separate payment structure on the client platform.
A key objective for the research was to evaluate the demand and optimal price for a single sport pass for key sports, such as tennis and cycling, and whether this would cannibalise the current multi-sport pass or complement it.
Our solution
A nationally representative 10-market quantitative study was set up in the key client markets, each with N=1000 respondents, to assess the demand and price sensitivity of the multi and individual sport passes. Respondents had to have an interest in sport, and be a current user, to consider subscribing to a sport OTT service.
A Menu Based Choice (MBC) conjoint was developed to answer the complexities of consumers being able to choose multiple options and to understand cannibalisation between products. Two variants of the multi-sport pass, and 5 individual sport passes (sports varied by market), were included in the design, as well as varying the pricing of the sport passes to understand the demand and sensitivity of different price points.
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