The Chargers are winning – why are ticket prices $50?

Photo credit L.A. Times

Check out the article: Chargers’ low ticket prices for new stadium say something about their footing in L.A.

1. We learned from Chapter 6 that pricing in sports and entertainment venues is dependent upon having an attractive place (stadium/arena) and product (the number and quality of star players and the quality of the team in terms of winning). What, then, is the current problem for the Chargers regarding ticket pricing?

2. After reading Chapter 7: Setting Prices for Sports, do you think the Chargers’ strategy to lower ticket prices will diminish the value of the brand in the minds of fans? 

3. In an alternative strategy, how could the Chargers identify price-sensitive individuals in order to offer them a discount to upper-level seats?

4. How might lower prices not be economically profitable in the long-run?

5. Imagine you work for the L.A. Chargers marketing team: how could you strategically combine one of their sponsors –San Manuel Casino, Anheuser-Busch, Albertsons, Vons and Pavilions, Marsh & McLennan Insurance Agency LLC (MMA) and Tender Greens — with an upper-level ticket special?