### Manchester United TV Subscription Options and Pricing StrategyThe table below demonstrates the perceived value among different fan segments for two subscription packages offered by Manchester United TV. The comparison is between non-Manchester United fans and Manchester United fans.| Manchester United TV Subscription (annual) | Value to a non-Manchester United soccer fan | Value to Manchester United fans ||--------------------------------------------|---------------------------------------------|----------------------------------|| Basic Package | $30 | $35 || Deluxe Package | $40 | $80 |**Subscription Details:**- **Basic Package**: This package includes all games of the main, youth, and women's teams with a one-day delay.- **Deluxe Package**: This package offers a comprehensive suite with all the benefits of the basic package, plus recordings of games from past seasons and exclusive player interviews.The marketing team at Manchester United has observed that non-Manchester United fans are greater in number. Therefore, the strategy involves pricing the basic package at $30 to attract these fans.**Challenge for Pricing Strategy:**Considering that Manchester United fans have higher perceived values for both packages, the marketing team needs to determine the maximum price they can charge for the deluxe package. This pricing should encourage Manchester United fans to opt for the deluxe package rather than subscribing to both the basic and deluxe packages independently.**Economics Insight:**To attract Manchester United fans to the Deluxe Package without deterring them to the Basic Package, the combined value proposition should be considered. The optimal pricing should entice the fan base to exclusively prefer the deluxe package for a superior content experience.**Question for Consideration:**What should be the strategic maximum price for the deluxe package that ensures Manchester United fans find value in subscribing to the deluxe option rather than combining both package offerings?This case engages learners in understanding consumer behavior, pricing strategies, and market segmentation within a highly engaged sports fan base.

Profit portrays the financial advantage acknowledged when revenue produced from a business action…

Manchester United TV Subscription (annual) Value to a non-Manchester United soccer fan Value to Manchester United fans Basic Package $30 $40 $35 $80 Deluxe Package The table above shows how much the a non-Manchester United fan and a Manchester United fan would pay for an annual subscription to Manchester United TV. The marketing team at Manchester United decides offer two packages: a basic package that includes all games of the main, youth and women's teams (delayed by one day) and a deluxe package that includes the games (delayed by one day), recording of games fro past seasons, and exclusive player interviews. Because there are many more non-Manchester United fans, the marketing team decides to offer the basic package for $30 to attract these fans. What is the maximum price they can charge for the deluxe package i

Manchester United TV Subscription (annual) Value to a non-Manchester United soccer fan Value to Manchester United fans Basic Package $30 $40 $35 $80 Deluxe Package The table above shows how much the a non-Manchester United fan and a Manchester United fan would pay for an annual subscription to Manchester United TV. The marketing team at Manchester United decides offer two packages: a basic package that includes all games of the main, youth and women's teams (delayed by one day) and a deluxe package that includes the games (delayed by one day), recording of games fro past seasons, and exclusive player interviews. Because there are many more non-Manchester United fans, the marketing team decides to offer the basic package for $30 to attract these fans. What is the maximum price they can charge for the deluxe package i

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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### Manchester United TV Subscription Options and Pricing Strategy

The table below demonstrates the perceived value among different fan segments for two subscription packages offered by Manchester United TV. The comparison is between non-Manchester United fans and Manchester United fans.

| Manchester United TV Subscription (annual) | Value to a non-Manchester United soccer fan | Value to Manchester United fans |
|--------------------------------------------|---------------------------------------------|----------------------------------|
| Basic Package | $30 | $35 |
| Deluxe Package | $40 | $80 |

**Subscription Details:**
- **Basic Package**: This package includes all games of the main, youth, and women's teams with a one-day delay.
- **Deluxe Package**: This package offers a comprehensive suite with all the benefits of the basic package, plus recordings of games from past seasons and exclusive player interviews.

The marketing team at Manchester United has observed that non-Manchester United fans are greater in number. Therefore, the strategy involves pricing the basic package at $30 to attract these fans.

**Challenge for Pricing Strategy:**
Considering that Manchester United fans have higher perceived values for both packages, the marketing team needs to determine the maximum price they can charge for the deluxe package. This pricing should encourage Manchester United fans to opt for the deluxe package rather than subscribing to both the basic and deluxe packages independently.

**Economics Insight:**
To attract Manchester United fans to the Deluxe Package without deterring them to the Basic Package, the combined value proposition should be considered. The optimal pricing should entice the fan base to exclusively prefer the deluxe package for a superior content experience.

**Question for Consideration:**
What should be the strategic maximum price for the deluxe package that ensures Manchester United fans find value in subscribing to the deluxe option rather than combining both package offerings?

This case engages learners in understanding consumer behavior, pricing strategies, and market segmentation within a highly engaged sports fan base.

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