Ticket Pack Promotion for Portland Trail Blazers

Topics: Marketing, Cost, Decision theory Pages: 3 (1063 words) Published: November 12, 2011
Context
The Trail Blazers was a monopoly on the professional sports market in Portland. Now the Trail Blazers is in a very bad time. Its home arena was taken over by creditors, its performance was in danger of being the worst in NBA history, and attendance numbers was falling (Case, Page 1). Its Management tried to promote by developing multigame ticket packages. Conjoint analysis technique is used to design the survey and analyze the result. According to the situation, we assume that the new promotion program needs to increase the attendance numbers and profit.

Question 1
To judge which attribute indicate is the overall most important in the purchase decision, we calculated the importance of each attribute according to the utility score data (Case, Table 1). The results are shown in Decision Weight Assignment (Appendix, Table 1). The most important attribute is ticket location, which can decide 39.4% of the total utility. The second is ticket price with 37.7% decision weight. Number of games and promotional item is relatively less important. Number of games has 11.8% decision weight, and promotional item has 11.1% decision weight.

Question 4
The total attribute combinations are 3*4*4*5=240, which are shown in Appendix Table 2. Because “the Blazers were unwilling to allow certain price and seating combinations no matter how well received they were” (Case, Page 5), the combinations including 200-level seats for less than $60 and 300-level midcourt seats for less than $25 can be removed from total combinations. The remaining attribute combinations are 240-3*1*5-3*3*5=180. According to the cost structure (Case, Table 2 & Table 3) and our assumptions, the Trail Blazers should avoid loss, thus 27 packages which cause loss need to be removed. The remaining packages are 180-27=153, which are shown in Appendix Table 3. The utility gap between the package with the greatest utility and the package with the 21st greatest utility is 0.53, which occupies 17% of...
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