If a fan bought a ticket without any promotional item included to begin with, how...

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If a fan bought a ticket without any promotional item included to begin with, how much would he/she be willing to pay to add those four different promotional items to the ticket individually? From the management perspective, are they worth being offered to fans at those calculated pricing points?

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TRAIL BLAZERS 71 Promotional Items A direct cost was associated with each of the promotional items the Blazers might offer fans. For example, if the Blazers were to offer a hot dog and soda with each ticket, they would have to pay the Rose Garden's vendor services a negotiated price of a negotiated price of $10. The restaurateur deeply discounted the gift certificates in exchange for the marketing exposure. The only promotional item without a direct cost was offering priority for home playoff tickets , given that the tickets were still sold at full retail price and multigame ticket holders just received priority in purchasing available tickets. Table 6-3 presents the unit cost of each of the potential promotional items. Cost Table 6-3 Cost of Promotional Items Promotional Item Priority for playoff tickets Hot dog and soda with each ticket Trail Blazers apparel (hat, jersey, etc.) $20 gift certificate to a popular restaurant Source: Portland Trail Blazers $0.00 $3.25 $12.00 $10.00 Utilizing the conjoint information, in addition to the other data available from the survey, the Blazers management team felt prepared to design the multigame package they believed the fans would most prefer. What attributes were most important to the fans? What should the Blazers" multigame package include? Should there be more than one? How profitable would each of the packages be? tickets to , as well as autographed Blazers items, such as jerseys, basketballs, and posters, for taking part in the survey Study Findings The e-mail solicitations received a total of 204 valid responses (a 21% response rate). Exhibit 6-1 includes summary statistics regarding demographics and past Acuity began its analysis of the multigame packages by computing the attribute- level utility scores to better understand the stand-alone preference of each of the individual attribute levels. Table 6-1 shows the utility score data. Blazers-game attendance. Table 6-1 Utility Score Data Utility Number of Games 0.03257 Three-game create-your-own pack, including one elite team and two very good teams 0.94383 Six-game create-your-own pack, including two elite teams and four very good teams -0.2764 Ten-game create-your-own pack, including any combination of teams Utility Ticket Price 0.65646 $15 per seat per game 0.22011 $25 per seat per game 0.126 $35 per seat per game -1.00257 $60 per seat per game Utility Ticket Location -0.73169 300 level, behind the baskets -0.43716 300 level, on the corners 0.15736 300 level, midcourt 1.01148 200 level, midcourt Utility Promotional Item 0.12511 Priority for home playoff tickets 0.17428 Hot dog and soda with each ticket 0.00158 Trail Blazer apparel (hat, jersey, etc.) $20 gift certificate for popular local restaurant No promotional item 0.01689 -0.31786 Source: Portland Trail Blazers TRAIL BLAZERS 71 Promotional Items A direct cost was associated with each of the promotional items the Blazers might offer fans. For example, if the Blazers were to offer a hot dog and soda with each ticket, they would have to pay the Rose Garden's vendor services a negotiated price of a negotiated price of $10. The restaurateur deeply discounted the gift certificates in exchange for the marketing exposure. The only promotional item without a direct cost was offering priority for home playoff tickets , given that the tickets were still sold at full retail price and multigame ticket holders just received priority in purchasing available tickets. Table 6-3 presents the unit cost of each of the potential promotional items. Cost Table 6-3 Cost of Promotional Items Promotional Item Priority for playoff tickets Hot dog and soda with each ticket Trail Blazers apparel (hat, jersey, etc.) $20 gift certificate to a popular restaurant Source: Portland Trail Blazers $0.00 $3.25 $12.00 $10.00 Utilizing the conjoint information, in addition to the other data available from the survey, the Blazers management team felt prepared to design the multigame package they believed the fans would most prefer. What attributes were most important to the fans? What should the Blazers" multigame package include? Should there be more than one? How profitable would each of the packages be? tickets to , as well as autographed Blazers items, such as jerseys, basketballs, and posters, for taking part in the survey Study Findings The e-mail solicitations received a total of 204 valid responses (a 21% response rate). Exhibit 6-1 includes summary statistics regarding demographics and past Acuity began its analysis of the multigame packages by computing the attribute- level utility scores to better understand the stand-alone preference of each of the individual attribute levels. Table 6-1 shows the utility score data. Blazers-game attendance. Table 6-1 Utility Score Data Utility Number of Games 0.03257 Three-game create-your-own pack, including one elite team and two very good teams 0.94383 Six-game create-your-own pack, including two elite teams and four very good teams -0.2764 Ten-game create-your-own pack, including any combination of teams Utility Ticket Price 0.65646 $15 per seat per game 0.22011 $25 per seat per game 0.126 $35 per seat per game -1.00257 $60 per seat per game Utility Ticket Location -0.73169 300 level, behind the baskets -0.43716 300 level, on the corners 0.15736 300 level, midcourt 1.01148 200 level, midcourt Utility Promotional Item 0.12511 Priority for home playoff tickets 0.17428 Hot dog and soda with each ticket 0.00158 Trail Blazer apparel (hat, jersey, etc.) $20 gift certificate for popular local restaurant No promotional item 0.01689 -0.31786 Source: Portland Trail Blazers

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