how to increase earned revenue
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Yale CabaretSurvey Analysis by:Paul Jessen, Lisa Law, Athan Slotkin, Devon Smith, Adam Stone
Agenda
Client Description
•Mission: to provide a laboratory for Yale School of Drama students’ daring and illuminating experimentation.
•New 1-hour show every week•8PM and 11PM Thursday – Saturday
•Food and drinks available for purchase
Business and Research Problems
Management Decision Problem
How can the Yale Cabaret increase earned revenue?
What types of communications, product offerings, and product pricing will increase revenue?
Increased revenue could result from:
Price
Volume
Frequency
Marketing Research ProblemCabaret Attendance/Tickets:
What are customers' motivations for attending or not attending the Cabaret?
What are customers' consumption patterns for the Cabaret?
What are customers' perceptions, attitudes, and awareness of the Cabaret?
What types of marketing efforts by the Cabaret are most effective with customers?
How does the Cabaret fit into customers' weekend entertainment decision-making process?
How do potential customers decide what to do in the evening?
Food/Drinks:
What are customers' consumption patterns for food/drinks at the Cabaret?
What are customers' perceptions, attitudes, and awareness of the food and drinks at the Cabaret?
What are customers' motivations for ordering or not ordering food and drinks at the Cabaret?
Methodology
Answering the Market Research
Problems
Overall Brand Perception
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percent saying the following adjectives describe the Yale Cabaret "closely" or "very closely"
Attendees Non-attendees
Sources of Information
Very Likely62%
Likely25%
Somewhat Likely10%
Unlikely3%
How likely are you to recommend the Cabaret
to someone else?
•Net Promoters = 59% (Very Likely – Somewhat Unlikely – Unlikely – Very Unlikely
Word of mouth from friends
Cabaret Website
Cabaret posters/flyers
Yale Drama Weekly eNews
Online reviews/blogs
Importance of Communication Channels for Cabaret Information(by % Very Important or Important)
Satisfaction
Shows Food/Drink Overall0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Very dissatisfied
Dissatisfied
Somewhat dissatisfied
Somewhat satis-fied
Satisfied
Very satisfied
Factors Driving Satisfaction
A linear regression model shows that 63.4% of variance in overall satisfaction can be explained by the following factors:
1. Show satisfaction (p-value=0.000)2. Atmosphere satisfaction (p-value=0.000)3. Food and drink satisfaction (p-value=0.000)4. Size of tables satisfaction (p-value=0.003)
All factors have a positive correlation with satisfaction rating.
Overall satisfaction =0.098 + 0.514(show satisfaction) + 0.243(atmosphere) + 0.152(food/drink satisfaction) + 0.111(size of tables)
Barriers to Attendance
• Nearly 50% of respondents claimed lack of knowledge prevented them from attending
• Cost does not appear to be a barrier
• Only 4% of respondents said they did not attend because they do not like the theater
Reason Non-Attendees Did not Attend Cabaret(by % of Respondents)
Knowledge
Time
Never Invited
Never "Got Around"
Cost
Distance
Don't Like
0% 10% 20% 30% 40% 50%
Factors Driving Frequency
A linear regression model shows that 64.7% of variance in the number of performances attended can be explained by the following factors:
1. Whether someone is a YSD student (p-value=0.000)
2. Whether someone bought a 10-ticket package (p-value=0.000)
3. Whether someone is a non-student Yale affiliate (p-value=0.021)
4. Overall satisfaction rating (p-value=0.000)5. Size of tables satisfaction (p-value=0.012)
All factors have a positive correlation with frequency.
Ln(performances attended last season)=-0.768 + 1.90(YSD student) + 1.03(bought 10-ticket) + 0.241(Yale affiliate) + 0.181(overall satisfaction) + 0.098(size of tables)
Size of Table Satisfaction
44.6% of the variance in table size satisfaction can be explained by the following factors:
1. “Seating arrangements” satisfaction (p-value=0.000)
2. Importance of “how crowded” restaurants are (p-value=0.013)
3. Not eating at Cabaret due to poor service (p-value=0.058)
4. Not wanting to eat with strange people at Cabaret (p-value=0.032)
Seating has a positive correlation with table size satisfaction; all others have a negative correlation.
Size of table satisfaction = 2.98 + 0.562(seating satisfaction) - 0.118(how crowded) - 0.0949(poor service) - 0.080(don’t like eating with strange people)
Willingness to Pay-Tickets
• Single Tickets - $15, $10 for Students• Non-Attendees WTP suggests that 50% of respondents are willing to pay
approximately $15 or higher.• 10 Ticket Package - $65, $45 for Students
• Non-Attendees WTP indicates that 50% of respondents are willing to pay approximately $75 or higher.
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% $-
$10
$20
$30
$40
$50
$60
Non-Attendees WTP - Single Ticket
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% $-
$50
$100
$150
$200
$250
$300
$350
$400
Non-Attendees WTP - 10 Ticket Package
Drivers of Food/Drink Spend
Logistic Analysis predicts drivers of food and drink consumption:
Food:•Non-student Yale affiliation (18x undergrads)•Non-Yale affiliates (43x undergrads)•Satisfaction with show times•Less frequent performing arts attendance
Drink:•YSD affiliation (88x), non-YSD graduate
students (6x), non-student Yale affiliates (19x), non-Yale affiliates (14x)•10-ticket buyers
Barriers to Food/Drink
Purchases
• Cost is primary barrier
• Customers don’t think of the Cabaret as a restaurant.
• Customers are concerned about the food + show aspect of Cabaret.
Reason Attendees Did Not Eat at the Cabaret(by % Strongly Agree or Agree)
Cost
Not "Real" Restaurant
Show Going On
Knowledge (Arrival Time)
Time
Knowledge (Menu)
Strangers Around
Atmosphere
Service
0% 10% 20% 30% 40% 50%
Willingness to Pay – Food
• Entree – Approximately $17• Non-Attendees WTP suggests that 50% of respondents are willing to pay
approximately $15 or higher.• Small Plates and Appetizers – Approximately $6 – $8
• Non-Attendees WTP indicates that 50% of respondents are willing to pay approximately $9 or higher.
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% $-
$5
$10
$15
$20
$25
$30
$35
$40
Non-Attendees WTP - Entree
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% $-
$2
$4
$6
$8
$10
$12
$14
$16
Non-Attendees WTP - Small Plate/Appetizer
Recommendations-Price
Recommendations-Volume
Recommendations-Frequency
Questions?
Appendix
Feature Satisfaction
• Consumers tend to be most dissatisfied with anything relating to the kitchen and bar, perhaps due to a perception of the Cabaret not being a dining experience
• Those who do go to the Cabaret tend to be highly satisfied with the show; hence the need to get customers in the door
• Show satisfaction and ticket price inelasticity seems to present an opportunity to move away from 10-ticket packages and price up
Satisfaction with Cabaret Attributes(by % Strongly Agree or Agree)
Atmosphere
Time of show
Production quality
Ticketing process
Service
Selection of shows
Quality of drinks
Quality of food
Size of tables
Seating arrangements
Kitchen/Bar hours
-30% 0% 30% 60% 90%
Segmenting the Market
•Cluster analysis of consumer behavior/attitude data in any form failed to produce distinct, meaningful, stable customer segments
•Distinct: On standardized or non-standardized scales, cluster centroids were too close together to suggest real differences in behavior and attitude•Meaningful: Cluster centroids often contained
confusing or contradictory combinations of factors/variables, producing no actionable results•Stable: 20-25% of individuals were reclassified
based on changes in linkage method, distance measure, and K-means reclustering
Free Response Suggestions
Only do 1 show per night Have breaks during the show to get food/drinks Do something pre-show Student discount on food Keep table reservations More types of beer Waitlisted people get to order/eat Post-doc or staff night early in season More food options at late night Run shows for 2 weeks Budget night w/ fixed price (all included) More vegetarian options Online ticket purchases for YSDUse YDC and GPSS to get word out
Eating OutAttribute Importance for Eating Out(by % Very Important or Important)
Value for money
Convenient location
Crowdedness
Menu selection
Refreshed menu
0% 20% 40% 60% 80%
• Consumers need to perceive that they are getting value for their meal both in food quality, ambience, and reservation time
The Combo Package
Very Likely30%
Likely31%
Somewhat Likely21%
Unlikely14% Don't Know
4%
Would you purchase a package of ticekts, food, drinks for a fixed price? • Consumers seem to be
interested in purchasing a fixed price package of tickets, food, and drinks for a reasonable price. This could be an opportunity to increase margins, and better predict food purchases for the evening, thereby alleviating some operational issues.
Willingness to Pay – Dessert and Beer
• Dessert – Approximately $3 – $5• Non-Attendees WTP suggests that 50% of respondents are willing to pay
approximately $7 or higher.• Beer – Approximately $4 – $6
• Non-Attendees WTP indicates that 50% of respondents are willing to pay approximately $5 or higher.
0.0%
20.0
%
40.0
%
60.0
%
80.0
%
100.
0%
120.
0% $-
$2
$4
$6
$8
$10
$12
$14
$16
Non-Attendees WTP - Dessert
0.0%
20.0
%
40.0
%
60.0
%
80.0
%
100.
0%
120.
0% $-
$2
$4
$6
$8
$10
$12
Non-Attendees WTP - Beer
Willingness to Pay - Wine
• Glass of Wine – $4• Non-Attendees WTP suggests that 50% of respondents are willing to pay
approximately $6 or higher.• Bottle of Wine
• Non-Attendees WTP indicates that 50% of respondents are willing to pay approximately $20 or higher.
0.0%
20.0
%
40.0
%
60.0
%
80.0
%
100.
0%
120.
0% $-
$2
$4
$6
$8
$10
$12
$14
$16
Non-Attendees WTP - Glass of Wine
0.0%
20.0
%
40.0
%
60.0
%
80.0
%
100.
0%
120.
0% $-
$10
$20
$30
$40
$50
$60
Non-Attendees WTP - Bottle of Wine
Population Validity
Undergrad5%
YSD9%
Graduate61%
Yale Non-Student
11%
Unaffiliated Yale14%
School Affiliation
Population Validity
Did you attend this year Did you puchase a 10-tix0%
10%20%30%40%50%60%70%80%90%
100%
Yes No
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