CASE: PORTLAND TRAIL BLAZERS

Utility Score data

Utility Number of Games
0.03257 3-game create-your-own pack, including 1 elite team and 2 very good teams
0.24383 6-game create-your-own pack, including 2 elite teams and 4 very good teams
-0.2764 10-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 Blazers apparel (hat, jersey, etc.)
0.01689 $20 gift certificate for popular local restaurant
-0.31786 No promotional item

Q1. What attributes are most important to the fans?

We need to identify the highest and the lowest utility by attribute.

Number of Games (+) 0.24383

Number of Games (-) -0.2764
Ticket Price (+) 0.65646
Ticket Price (-) -1.00257
Ticket Location (+) 1.01148
Ticket Location (-) -0.73169
Promotional Item (+) 0.17428
Promotional Item (-) -0.31786

• Number of Games:
(0.24383+0.2764)/((0.24383+0.2764)+(0.65646+1.00257)+(1.01148+0.73169)+(0.17428+0.31786)) = 0.12

• Ticket Price:
(0.65646+1.00257)/((0.24383+0.2764)+(0.65646+1.00257)+(1.01148+0.73169)+(0.17428+0.31786)) = 0.38

• Ticket Location:
(1.01148+0.73169)/((0.24383+0.2764)+(0.65646+1.00257)+(1.01148+0.73169)+(0.17428+0.31786)) = 0.40

• Promotional Item:
(0.17428+0.31786)/((0.24383+0.2764)+(0.65646+1.00257)+(1.01148+0.73169)+(0.17428+0.31786)) = 0.11

Based on the utility scores for each attribute in the conjoint data, the most importat attribute for the fans is: The
Ticket Location.

Q2. What should the Blazers’ multi-game packages include--how should they price their seats and which
promotional items make sense?

The following restriccions and data must be taken:

Restrictions - Unwilling to allow certain price and seating combinations Fixed costs based on seat location Cost of promotional items

Ticket Location Ticket Price Seat Location Fixed Promotional Item Cost
Cost
200 level, midcourt $15 per seat per game 300 level, behind the baskets $10 Priority for playoff tickets $0
200 level, midcourt $25 per seat per game 300 level, on the corners $12 Hot dog and soda with each ticket $3.25
200 level, midcourt $35 per seat per game 300 level, midcourt $18 Trail Blazers apparel (hat, jersey, etc.) $12
300 level, behind the baskets $15 per seat per game 200 level, midcourt $40 $20 gift certificate to a popular restaurant $10
300 level, on the corners $15 per seat per game
300 level, midcourt $15 per seat per game

First of all we need to define all the possibles combinations in de Utility score data. We have 240 possibles combinations
(3*4*4*5), considering number of games, ticket Price, ticket location and promotion item.

[Number of games = 3 options] [Ticket Price = 4 options] [Ticket Location = 4 options] [Promotional Item = 5 options]

Second of all, we need to define the combinations that refer to the restrictions (unwilling to allow certain price and seating
combinations). There are 90 combinations where “200-level seats for less than $60” and “300-level, midcourt seats for
less than $25”; are restricted
Third of all, we have 150 valid combinations. I detail the top fifteen most important combinations, taking into account the
total utility.

Number of Games Ticket Price Ticket Promotional Item Utility Utility Utility Utility Total
Location Number Ticket Ticket Promotional Utility
of Price Location Item
Games

6-game create-your-own pack, including 2 elite teams and 4 very $25 per seat per 300 level,
good teams game midcourt Hot dog and soda with each ticket 0.24383 0.22011 0.15736 0.17428 0.79558
6-game create-your-own pack, including 2 elite teams and 4 very $25 per seat per 300 level,
good teams game midcourt Priority for home-playoff tickets 0.24383 0.22011 0.15736 0.12511 0.74641
6-game create-your-own pack, including 2 elite teams and 4 very $35 per seat per 300 level,
good teams game midcourt Hot dog and soda with each ticket 0.24383 0.126 0.15736 0.17428 0.70147
6-game create-your-own pack, including 2 elite teams and 4 very $35 per seat per 300 level,
good teams game midcourt Priority for home-playoff tickets 0.24383 0.126 0.15736 0.12511 0.6523
6-game create-your-own pack, including 2 elite teams and 4 very $25 per seat per 300 level, $20 gift certificate for popular local
good teams game midcourt restaurant 0.24383 0.22011 0.15736 0.01689 0.63819
6-game create-your-own pack, including 2 elite teams and 4 very $25 per seat per 300 level,
good teams game midcourt Trail Blazers apparel (hat, jersey, etc.) 0.24383 0.22011 0.15736 0.00158 0.62288
3-game create-your-own pack, including 1 elite team and 2 very $25 per seat per 300 level,
good teams game midcourt Hot dog and soda with each ticket 0.03257 0.22011 0.15736 0.17428 0.58432
6-game create-your-own pack, including 2 elite teams and 4 very $35 per seat per 300 level, $20 gift certificate for popular local
good teams game midcourt restaurant 0.24383 0.126 0.15736 0.01689 0.54408
3-game create-your-own pack, including 1 elite team and 2 very $25 per seat per 300 level,
good teams game midcourt Priority for home-playoff tickets 0.03257 0.22011 0.15736 0.12511 0.53515
6-game create-your-own pack, including 2 elite teams and 4 very $35 per seat per 300 level,
good teams game midcourt Trail Blazers apparel (hat, jersey, etc.) 0.24383 0.126 0.15736 0.00158 0.52877
3-game create-your-own pack, including 1 elite team and 2 very $35 per seat per 300 level,
good teams game midcourt Hot dog and soda with each ticket 0.03257 0.126 0.15736 0.17428 0.49021
3-game create-your-own pack, including 1 elite team and 2 very $35 per seat per 300 level,
good teams game midcourt Priority for home-playoff tickets 0.03257 0.126 0.15736 0.12511 0.44104
6-game create-your-own pack, including 2 elite teams and 4 very $60 per seat per 200 level, -
good teams game midcourt Hot dog and soda with each ticket 0.24383 1.00257 1.01148 0.17428 0.42702
3-game create-your-own pack, including 1 elite team and 2 very $25 per seat per 300 level, $20 gift certificate for popular local
good teams game midcourt restaurant 0.03257 0.22011 0.15736 0.01689 0.42693
3-game create-your-own pack, including 1 elite team and 2 very $25 per seat per 300 level,
good teams game midcourt Trail Blazers apparel (hat, jersey, etc.) 0.03257 0.22011 0.15736 0.00158 0.41162

With this detail information, I can create the 3 package options. The Blazers’ multi-game packages include:

Option 1 – GOLD PACKAGE Option 2 - SILVER PACKAGE Option 3 - BRONZE PACKAGE

6-game create-your-own pack, including 2 elite 6-game create-your-own pack, including 2 elite teams and 3-game create-your-own pack, including 1 elite team and
Number of Games teams and 4 very good teams 4 very good teams 2 very good teams
Ticket Price $60 per seat per game $25 per seat per game $25 per seat per game
Ticket Location 200 level, midcourt 300 level, midcourt 300 level, midcourt
Promotional Item Hot dog and soda with each ticket Hot dog and soda with each ticket Hot dog and soda with each ticket

I create this packages with the intención to sell to 3 differents customers considering their willingness to pay and also
the importance of the total utility “The option 1” is the Premium package and also the Price decoy. “The option 2” is our
estándar package, this is the option that we want to boost in sales. Finally we have our “Option 3” for people with less
incomes.

There Price for each package are:

Option 1 – Gold package: $60, Option 2 – Silver package: $25, Option 3 – Bronze package: $25

The promotional item that make sense per package are: Hot dog and soda with each ticket

Q3. How profitable would each of the packages be?

Based on the revenue and cost information the profitability is as follows:

Option 1 - GOLD PACKAGE Option 2 - SILVER PACKAGE Option 3 - BRONZE PACKAGE

Income 6 games * $60 per seat = $360 6 games * $25 per seat = $150 3 games * $25 per seat = $75
Expenses 1 6 games * $40 cost per seat = $240 6 games * $18 cost per seat = $108 3 games * $18 cost per seat = $54
Expenses 2 6 games * $3.25 cost per hot dog and soda = $19.5 6 games * $3.25 cost per hot dog and soda = $19.5 3 games * $3.25 cost per hot dog and soda = $9.75
Total profit $360 - ($240 + $19.5) = $100.5 $150 - ($108 + $19.5) = $22.5 $75 - ($54 + $9.75) = $11.25