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…show more content… Thus the profit decreased. The same conclusion is for other promotional items. In our conclusion, it is better to let customers purchase promotional items except priority by themselves. Considering all factors, we suggest that the core package has $35 price, 6 games, 300-level seat in midcourt and priority for home playoff tickets. It has good profit, relatively greater utility, and increases potential future attendance numbers. Moreover, to satisfy diversity customers, two other packages can be considered as supplement. The package with 6 games, $15 price, 300-level seat behind the baskets and priority for home playoff tickets help sell unpopular seats with 0.29371 utility and $5 profit. Also, the package with 6 games, $60 price, 200-level seat in midcourt and priority for home playoff tickets help get more profit ($20) with 0.37785 utility.
Appendix
Table 1: Decision Weight Assignment | Minimum | Maximum | Gap | Percentage | Ticket location | -0.73169 | 1.01148 | 1.74317 | 39.4% | Ticket price | -1.00257 | 0.65646 | 1.66903 | 37.7% | Number of games | -0.2764 | 0.24383 | 0.52023 | 11.8% | Promotional item | -0.31786 | 0.17428 | 0.49214 | 11.1% | Total | | | 4.42457 | 100.0% |
Table 2: All packages https://docs.google.com/spreadsheet/ccc?key=0An4XCgbePO-fdE4xeGdJZlVqaEFlaV84dkhGM2d5TWc&hl=en_US Table 3: All packages restricted by seat cost and profit
