Retailing 8th Edition by Patrick Dunne,Robert Lusch, James Carver

Exercise 24

Jack Woodward is home for the summer from college and working in a major league baseball park as a marketing intern. He is in an office with two other interns and the general manager has asked them to prepare a presentation on ticket pricing. Your intern-team has decided to recommend a profit maximization strategy for ticket pricing and to implement that with auction-pricing. Some of the strongest evidence you have to support this proposal is the secondary market price for single tickets versus their face value. For the baseball team you are interning for, the face value of a ticket is $26; however, the secondary market price is often between $38 and $62. You have also obtained some evidence that in 2011 the average major league baseball ticket price was substantially below the secondary market for many teams. For instance, the average face value of tickets for the Toronto Blue Jays was $24.35, and the secondary market price was $72.62, for the Boston Red Sox the face value was $53.38, but the secondary market was at $92.23, and for the Oakland Athletics the face value was $21.52 versus $51.82 in the secondary market. Prepare a presentation and limit it to eight PowerPoint slides.