ulie Porucznik is the Chief Marketing Officer for a Major League Baseball team. The team has finished in the lower half of its division for the past five seasons. Attendance has been on the decline during this time, with an average attendance of 63% during the past season. There is an internal debate regarding ticket pricing. One group advocates keeping the prices at their current level, arguing that once the team starts discounting it is difficult to increase prices. Another group wants to offer deep discounts and even to give away many of the extra tickets to ensure a full stadium.

1. What should Julie do?

2. If the team starts discounting and giving away tickets, should the marketing department be worried that their current fans, who buy tickets at full price, will stop buying tickets at full price and wait to see if discounted tickets are available?

3. Is it worth discounting the tickets and the inherent risks that go along with that to create an exciting, sold-out atmosphere at the stadium?