Case Study: Ticketmaster Essay Sample

Case Study: Ticketmaster

Ticketmaster Transparency Policy

The major step in moving toward greater transparency Ticketmaster made is introducing the new ticket price policy. The company began to show the actual ticket price and service fees together before tickets are purchased. In contrast to it, the previous method of showing the service fees at the end of the buying process caused huge customers’ frustration and harmed ticket sales. Furthermore, the company eliminated an unpopular service fee for printing the ticket and left only the most necessary ones (Rodricks).

Such kind of pricing policy increases customer trust to the company, as they are able to evaluate the maximum price they can pay for the tickets in the beginning of the process. However, such approach, in some cases, can be ineffectual. The reason of it is that it is impossible to show the exact amount of fees before the ticket is bought and shipping method is chosen. Thus customers still cannot fully evaluate the additional cost of purchasing the ticket (Rodricks).

Next, the company created an interactive venue map on its Web page. Using it customers can choose their seats on their own. Besides that, the firm started cooperation with Facebook by launching the new app. This app was designed for the Ticketmaster’s customers, and shows them the events where their friends are going, and even their places.

Such kind of information transparency about the company’s customers can be potentially detrimental, as not all people would like to publicize their purchases and the places they are going to attend. It constrains the firm to make additional efforts to develop a method to control the level of openness of information about its customers’ purchases.

The Ticketmaster’s New Customer-Friendly Model

For many years Ticketmaster was the winner in the nomination “The Most Hated Company in America”. To change the situation the firm’s CEO has created an analytics team which was authorized to collect information about the needs and requests of the customers. It helped to highlight the main issues of their displeasure with the Ticketmaster’s services and distinguish them by their likes and dislikes.

The CEO’s research-based decision was to change a client-friendly model to a customer-friendly model. Such approach might have both positive and negative impact on the company’s state of affairs.

The positive moments are that customers will begin to use the services of the firm more willingly than before. Since the biggest judges for a business are its clients (the persons who are already making a purchasing decision), improving the service will encourage them to continue using Ticketmaster’s services (Rodricks). This will lead to increase in sales, which, in turn, will entail improved financial performance. Given the fact that Ticketmaster meanwhile remains the largest market player of the online ticket sales, it should use all available resources to show a positive change in its service policy.

The potentially detrimental results of refusal to use the client-friendly model consist in the following – delivery and payment services may refuse to work under new conditions. For example, they can continue to require the preservation of the additional fees. In this case, the company will either have to find new suppliers, or to find a compromise with the old ones.

Top Three Priorities in Addressing Reputation Issues of One of the World’s Most “Hated” Companies

In order to effectively manage the company with a bad reputation a CEO should observe the following priorities.

The first priority is to constantly provide the customer satisfaction. The company must continuously improve its services in order to compete with the young innovative businesses in its market niche. Customers need to feel that the firm cares about their interests, rather than that it just enriches at their expense (Lesley).

The second priority is to employ strong communication with customers. A thought-out public relations strategy will humanize the company and return faith in its brand. An easy way to quickly communicate with the clients is a Twitter account and a Facebook page of the firm. It should stay aware of what its customers are saying about its services. That is why the company should respond on every negative feedback from the clients (Lesley).

The third priority is to display how the firm is fixing certain problems. In addition to the second aspect, the company also must deliver information about how it will solve (or has already solved) the existing problems (Lesley).

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The Effectiveness of the Ticketmaster’s CEO Decisions

According to the “Decision Making & Organizational Structure” study material, it seems that Ticketmaster’s CEO used the rational decision-making model. He created the analytics team and was using its researches. Thus, his decisions were based on the results of studying the Ticketmaster customers’ behavior, their opinions and preferences. Such kinds of decisions are unprogrammed, because they show the unique thinking style and are based on the careful information gathering and analysis.

Hubbard has set the strategic course of the Ticketmaster, which was based on the customer-friendly model. That decision can be considered effective because, taking into account the emergence of new competitors, it is vital for the company to keep its customers and also to attract the new ones. Though, the results of implementing the strategy into practice would improve the image of the business.

Taking this into account one may agree that Hubbard followed all seven steps of the better decision making, beginning with the indication and analysis of the problem, generating and evaluating the alternatives, ending with the implementation of the chosen path and analyzing its feedback and results. 

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