Reference pricing: changing perceptions of entrance charges for sport and recreation

Abstract

This article reports on a research project undertaken to explore the relevance of the concept of reference pricing to public sport and recreation provision. The project explored the extent to which participants’ reference price (the price they expect to pay) for sport and recreation activities could be changed by the provision of certain types of information and the extent to which their resistance to increased charges could be reduced. A face-to-face survey was undertaken in six sports facilities in Scotland and attitudes to current charges, value for money and highest acceptable charges were examined. Respondents were then provided with information about subsidy levels, reduced opening times and improved quality and asked to reconsider their assessment of an appropriate highest charge. The data indicate statistically significant increases in acceptable highest charges and the article concludes that, properly managed and promoted, negative reactions to price increases can be reduced, although not wholly eliminated.

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