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The Use of Price Discrimination in Ticket Sales for Special Events
|The positive and negative consequences both for buyers and sellers||4|
|An approach to be used in order to generate higher revenues from ticket sales||7|
|The concept of price elasticity of demand||10|
|The pricing approach used by the actual organizers of the concert||13|
|Statement about the contribution of each member of the group||17|
• There are several factors that affect forming the evaluation of goods in consumers’ eyes: urgency, income level, demographic indicators and priorities.
• Maximum efficiency is ensured by a mix of fixed price and price discrimination approaches when different level prices co-exist with fixed prices.
• By mixing these two approaches sellers are satisfying the needs of people with different backgrounds and different levels of income, subsequently, increasing the number of people who have become available to attend entertaining events and protecting themselves from the risk of failure and full hall of empty seats.
• Successful examples of using fixed price approach exist in the real life (e.g. Robbie Williams concert in Tallinn, БИ-2 and Latvian Symphony Orchestra concert in Riga); these examples serve as a guarantee that using fixed price approach (when appropriate) can not only bring profits, but also open new horizons and opportunities in the existing market.
• The concept of price elasticity of demand can help one to set the pricing strategy by showing the possible outcome of increasing or decreasing the price. Therefore it is important to understand the product – its strenghts and weaknesess.
• It is quite impossible to foresee precise outcome of any of the decisions made on prices, as it is possible to foresee the possible demand for the product. One must have a good intuition and sharp reaction.
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