Portland Trail Blazers Case Study Conjoint Analysis Solution

This case study is one of the more common conjoint analysis cases. It is one that most people have seen before and they know the solution they want. This means that you will have to step out of your own personal reality to learn something new. Step back and read the case solution carefully to see how the business case study writer thinks. It is not uncommon for the writer to talk about something that the business case study reader may not be aware of. This will challenge your thinking and provide you with additional insight into the case. It will also give you a better understanding of the business case study writer and how he/she thinks.

To evaluate the conjoint analysis results, the student should construct a payoff matrix and test the value of the different options according to their preferences. For example, a common assumption in a decision model is that the population is perfectly price elastic. This means that if the price of a good increases, its demand decreases by an equal amount. Does this assumption hold in the case of NFL attendance? What would happen if the values in the payoff matrix were different? Would you still get the same results?

The study presents the following questions:

What are the relative importance of the following attributes to the population of season ticket holders?

How much will this group increase or decrease their willingness to pay to attend a game if each of the following options are made available?

The results of this study indicate that:

increasing the number of VIP seats by 50% would have the most significant positive impact on attendance.

increasing the price of the most expensive ticket available by 20% would have the greatest positive impact on attendance.

increasing the price of the least expensive ticket by 20% would have the smallest positive impact on attendance.

the best market segment to target is the premium level of the season ticket holder population.

attendance will increase if the ticket prices are raised to the highest level offered.

the increase in sales and attendance is most likely to occur if the prices of the least expensive and most expensive tickets are raised simultaneously by 20%.

The conjoint analysis framework and the study selection process are introduced to students as they start their analysis. The effectiveness of each recommendation is examined and the need to discount season tickets is debated. This case study is intended to help students apply the conjoint analysis framework in a real-life setting by modeling a marketing research project. It assumes that students are able to estimate the number of new season ticket holders to be expected and by estimating the influence of the recommendation and discount level on the forecast of the number of new season ticket holders to be expected. The case study has been designed to engage students in a problem solving exercise by applying their knowledge of the conjoint analysis framework to a real-life scenario. 827ec27edc