Question: Miami Marlins executive team has been redesigning their pricing strategy for the clubhouse box and dugout club sections. Right now, the team charge their fans

Miami Marlins executive team has been redesigning

Miami Marlins executive team has been redesigning their pricing strategy for the clubhouse box and dugout club sections. Right now, the team charge their fans a ticket per game. Each ticket has a different price based on the distance of the seat chosen from the field. Data shows that at $70 per game, loyal fans would go to an average of 42 home games out of the scheduled 162 games. In the other hand, the executive team is considering a second option in which, based on a subscription price of $500 per month, fans will be guaranteed a seat all season long (baseball seasons last 6 months). Under both models, 45% of the ticket revenues would go to variable and fixed costs. The idea is to incentivize the fans to attend more games at a lower cost. If the time horizon was 6 months, what would be the CLV of the two options? If you were the decision maker, what would you recommend? Miami Marlins executive team has been redesigning their pricing strategy for the clubhouse box and dugout club sections. Right now, the team charge their fans a ticket per game. Each ticket has a different price based on the distance of the seat chosen from the field. Data shows that at $70 per game, loyal fans would go to an average of 42 home games out of the scheduled 162 games. In the other hand, the executive team is considering a second option in which, based on a subscription price of $500 per month, fans will be guaranteed a seat all season long (baseball seasons last 6 months). Under both models, 45% of the ticket revenues would go to variable and fixed costs. The idea is to incentivize the fans to attend more games at a lower cost. If the time horizon was 6 months, what would be the CLV of the two options? If you were the decision maker, what would you recommend

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