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Air Zoo: Free Admission Promotion

Mike McCardle, JoAnn Atkin
May 1, 2016
SKU:
BUS-004764
Region: 
North America
Topic: 
Marketing & Sales, Strategy & General Management
Length: 
5 pages
Keywords: 
Decision-Making, Not-for-profit, museum, Pricing, Quantitative Analysis, Promotion
Student Price: 
$4.00 (€3.27)
Average rating: 
0

The Air Zoo, an aviation museum located in southwest Michigan, is approaching its 30th anniversary and is faced with declining attendance and thus not meeting its financial goals. In early 2008, CEO Bob Ellis is considering the elimination of the admission fee during the peak months of June, July, August and September. The quantitative decision focuses on the estimates Bob presents as to the breakdown in the type of visitor that the Air Zoo is likely to attract with a free admission promotion. While there is some anecdotal evidence on the current make up of visitors to the museum, there is little information to support or refute Bob’s estimates. Given the limited amount of information Bob must make a go, no-go decision on the promotion.

Learning Outcomes: 
  1. Evaluate the effectiveness of the Air Zoo in meeting its mission.
  2. Describe the Air Zoo’s customer segments and outline what motivates them to visit.
  3. Evaluate the projections Bob has presented regarding the free admission promotion.
  4. Identify missing information that would be beneficial to Bob in making this decision.
  5. Evaluate the impact of the free admission promotion on the Air Zoo’s finances.
  6. Decide if the free admission promotion should be implemented and defend this decision.