Your local movie theater uses the same group-pricing strategy described in the chapter – charge different prices for adults, children, seniors, and students. However, the theater uses one additional strategy: On Tuesdays, all tickets cost half the regular adult admission - a lower price than any group discount. You notice that the theater is always very crowded on Tuesdays. a. The half-price tickets on Tuesdays illustrates the hurdle method b. The theater does not offer half-price tickets all the time because of the discount effect the hurdle effect

Your local movie theater uses the same group-pricing strategy described in the chapter – charge different prices for adults, children, seniors, and students. However, the theater uses one additional strategy: On Tuesdays, all tickets cost half the regular adult admission - a lower price than any group discount. You notice that the theater is always very crowded on Tuesdays. a. The half-price tickets on Tuesdays illustrates the hurdle method b. The theater does not offer half-price tickets all the time because of the discount effect the hurdle effect

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.

Question

Sophisticated Pricing Strategies – End of Chapter Problem
Your local movie theater uses the same group-pricing strategy described in the chapter – charge different prices for adults,
children, seniors, and students. However, the theater uses one additional strategy: On Tuesdays, all tickets cost half the regular
adult admission – a lower price than any group discount. You notice that the theater is always very crowded on Tuesdays.
-
a. The half-price tickets on Tuesdays illustrates
the hurdle method
b. The theater does not offer half-price tickets all the time because of
the discount effect
the hurdle effect

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