Impact of market demand on recurring hallmark sporting event spectators: an empirical study of the Shanghai Masters

Purpose: The current study was designed to (1) identify core and peripheral market demand for a recurring hallmark sporting event, testing their impact on event identification and behavioral intentions; and to (2) explore the effect of core and peripheral market demand on event identification between first-time and repeat spectators. Design/methodology/approach: Research participants (N = 540) were spectators at the Shanghai Masters over a span of seven days. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) and partial least squares multi-group analysis (PLS-MGA). Findings: Significant, positive relationships were found between core market demand and event identification, and between core market demand and behavioral intentions. In contrast, peripheral market demand only had significant, positive effect on event identification; however, findings revealed that event identification fully mediated the relationships between peripheral market demand and behavioral intentions. Additionally, the effect of peripheral market demand on event identification was greater among first-time spectators than repeat spectators. Originality/value: This study contributed to the application of PLS-SEM in sport management research by adopting a formative-formative hierarchical component model (HCM) to address the prevailing measurement model misspecification of market demand constructs. The findings highlighted the merits of promoting market demand associated with recurring hallmark sporting events and the importance of enhancing event identification through differential market penetration schemes across different spectator groups.