The Spring Filed Nor’easters: Maximizing Revenue in Minor League Case Solution & Answer

The Spring Filed Nor’easters: Maximizing Revenue in Minor League Case Solution

Research Questions:

Decision Questions:

  1. What should be the price and different packages of tickets in order to maximize the revenues from the different sources of customers?
  2. What are the target and customers and how price sensitive they are?

Research Questions

  1. How do the demographics of the country will affect the sporting events?
  2. Are people interested in watching minor league matches and how it does affect by other factors such as income, age?
  3. What are the spending patterns of the customers regarding the transactions between the ticket prices, the arrangement of multiple ticket packages and revenue from the sales concessions?

Research Objectives:

  • To understand the buying behavior of the population
  • To eliminate and evaluate the demographic factors that are interested in the watching the minor leagues based on their age and income.
  • To analyze the interested candidates in buying sales concessions and ticket packages
  • To make price point decision in order to establish the price packaging and sales concession or discounts to attract the customers.

Identify and discuss major constructs and concepts:

The variables and constructs in establishing the pricing policy and considering other factors in order to meet the research objectives for Nor’easter show the cause and effect relationship to meet the goal, such as dependent variables are to maximize the profit and return on investment and market share and independent variables are pricing objectives, market demands, estimated cost, competitors cost; its constructs as their offers and prices and optimal pricing strategy, which includes both the internal and external variables as they both are equally affected in making pricing decisions.

Internal variables

Internal variables are those that are under the control of management by considering their revenues and costs.

  1. Pricing Objective: In setting up the prices, the marketer should think about the objective of the firm, as Springer’s objective is to sell the tickets at reasonable prices and also to earn the profit in orderto increase the market share and attract the high-income individuals.
  2. Estimated Cost: In estimating the cost of the minor league team and other promotional activities, the company should fix the price in such a manner as to cover at least the fixed and variable costs in order to achieve the breakeven point.
  3. Optimal pricing method: The company should adopt various promotional activities such as advertising, which will improve its brand name after which the company would be able to set high prices and also the customers would be willing to pay high.

External variables’ constructs include:

  1. Competitors (constructs as competitors’ prices and offers): The firm requires to study the whole competitors’ concession offers and prices, and the price is set accordingly. If the competition is high, then the firm should set low prices whereas, it should set price competitive as public is willing to pay.
  2. Market demand: The marketer should consider the consumers’ demand by considering the age, income, and geographical area. The firm should set the price by evaluating the results based on the purchasing power and sensitivity analysis.
  3. Economic conditions: The firm should also consider the government and economic conditions occurring in the market. As in this case, due to recession, many people had lost their jobs and were not able to spend more. Therefore, the price should be adjusted to influence the buying decision of the customers……………………

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