Describe a price segmentation fence

Reference no: EM132783770

The manager of a movie theater is developing his policies for the structure of his movie admission prices. He knows that there are two segments of his market. Segment A consists of frequent movie goers. Segment B consists of those who go to the movies only occasionally.

problem (a) Describe the concept of the best price that is presented in the course material. How can you tell if a price for a particular market segment is that segment's best price?

problem (b) Which of the movie theater's two market segments is likely to have the lowest best price? Use the three factors that determine the best price to justify your answer.

problem (c) If the movie theater's two market segments indeed have different best prices, why would it be in the manager's interest to charge each of the two market segments a different price rather than have a single admission price for all customers?

problem (d) Name and describe a price segmentation fence that could be used to effectively charge one price to Segment A and a different price to Segment B. Explain how this fence can be effective in accomplishing price segmentation in this situation.

Reference no: EM132783770

Questions Cloud

Discuss the importance of change management : Discuss the importance of change management in the implementation of strategy. What should be considered when planning for organizational change

Which is incorrect statement regarding impairments : Which is incorrect statement regarding impairments of investment properties. Impairment losses on investment properties measured under cost model never reversed

Describe two benefits for the 4 ps of growth : Consider the business that is the focal point. Describe two benefits for each of the 4 Ps of growth. How will you leverage these benefits for your business?

How discovery affected the life of the average working : Summarize how this discovery affected the life of the average working American during the colonial period. Use specific examples and details.

Describe a price segmentation fence : Describe a price segmentation fence that could be used to effectively charge one price to Segment A and a different price to Segment B.

Forecast the sales of cool-man air conditioners : Sales of Cool -Man air conditioners have grown steadily during the past 5 years as shown in Table 1. The sales manager had predicted, before business started, t

Explain the importance of job satisfaction : Explain the importance of job satisfaction as a specific organisational attitude and determine how this variable can affect job performance.

Examine the origins of the arab-israeli conflict : Examine the origins of the Arab-Israeli conflict from its beginnings some 4000 years ago and how it has evolved/devolved over the centuries to the current time?

How the forces mentioned above influenced decision : Explain how the forces mentioned above influenced your decision.

User Account

All Pages