Warriors Chase Value

Author Christopher Bernal, University of San Francisco

Posted: October 30, 2017

Tagged: fan motives

The Warriors fan base will be facing some growing pains with what looks like a historic dynasty with two Championships in the last three years. Due to their recent success the team is in the process of expansion and moving into a new $1 billion stadium in San Francisco for the 2019 season (Lombardo & Muret, 2017, para. 2). With price increases on suites, boxes, and season tickets the Warriors will be making improvements for those committed fans that invest in the team and providing a more valuable experience.

The high-end suites come at a yearly rate between $1.3 million to $2.25 million and therefore must provide a strong value proposition. The value proposition details how you plan to fulfill specific customer needs through their value criteria (McCarville & Stinson, 2017, p. 61) The Warriors organization made sure to set a high priority on making the game experience as enjoyable as possible by reducing activities that would otherwise take time away from the game and cause additional work. Some delivery variables they cover include food, beverage, parking, and a shared wine vault for box and suite customers (Lombardo, 2017, para. 7). Delivery Variables play a key role in the Model for Assessing Perceived Value since they reduce barriers and minimize costs such as discomfort and inconvenience (McCarville & Stinson, 2017, p. 53)

An all-inclusive list of benefits when making a purchase is one of my own personal drivers when making decisions. With a price increase for a service it is important use leveraging tactics to focus on the bundle of benefits that are going to be provided to increase the transaction value (McCarville et al., 2017, p.53). The Warriors sales team leveraged their tactics by creating specific bundles that provide even the 44 mid-level suites with 16 tickets to all games, potential playoff tickets, and access to all other events at the Chase Center on top of the delivery variables mentioned above (Lombardo et al., 2017, para. 11). Various comprehensive bundles will make it a tough decision for committed fans to choose due to an increased perceived value.

The Chase Center also keeps the social feel of the game in perspective because they understand that the design and social factors in a servicescape are essential in creating a game vibe that fans want to be a part of. The new lounge will be nearly twice the size of Oracle lounges at 500 square feet with high ceilings and have the feel of a five-star hotel (Lombardo et al., 2017, para. 10). This additional space and luxurious feel allows people to achieve that social motive for attending games by providing the space necessary for those 16 friends to comfortably enjoy the game and increase the value the servicescape is providing. The social factor aligns with the Stimulus-Organism-Response (S-O-R) paradigm due to the research showing the positive effects that crowding can stimulate and thereby influence the decision to want to use a service again in the future (Hightower, 2017, p.146).

An addition the Chase Center will be making to their courtside lounges will include a video wall that provides the actual courtside feel with easy access between the court and private lounge (Lombardo et al., 2017, para. 9). The Warriors influenced Experience Variables which is one of the most important factors in the Model for Assessing Perceived Value (McCarville & Stinson, 2017, p.56). With focus on fan experience the perceived value is increased and the Warriors have been able sell out most of their suites and lounges years in advance.

 

References

Hightower, R., Jr. (2014). Leveraging Sport Brands with the Servicescape. In M. P. Pritchard, & J. L. Stinson (Eds.), Leveraging brands in sport business (pp.142-156). New York, NY: Routledge.

Lombardo, J., & Muret, D. (2017, June 12).Warriors new gold standard, best chase center suites sells for $2.25 million. SportsBusiness Journal, 20(19). Retrieved from www.sportsbusinessjournal.com

McCarville, R., & Stinson, J. L. (2014). Creating Value as Part of Sport Marketing. In M. P. Pritchard, & J. L. Stinson (Eds.), Leveraging brands in sport business (pp.51-65). New York, NY: Routledge.

About Christopher Bernal, University of San Francisco

Christopher Bernal (IG: cbernal00) is a graduate of the University of California, Merced and is currently enrolled as a graduate student in the University of San Francisco’s Sport Management Master’s program. Recently, he founded MarCom Strategies and works with various non-profits and social enterprises to build their brands. This article is an edited version of a paper Christopher prepared for Dr. Michael M. Goldman’s Sport Marketing class at the University of San Francisco.

IImage by Lisa Goodwin, "20161222_SEAerial.jpg", Retrieved from www.app.box.com/v/chasecentermediakit/file/120805237313.