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The purpose of a pricing strategy is to maximize the capture of value from a given market. Auction pricing works when: 1) It is a single event-based POS 2) E
by bduerst 8y ago
The purpose of a pricing strategy is to maximize the capture of value from a given market. Auction pricing works when:
1) It is a single event-based POS
2) Every member of audience has the same level of knowledge of what is being sold
For a symphony, the audience is smaller and more homogeneous than a pop-star concert. Symphony attendees are typically repeat buyers, who share similar knowledge of what they're seeing, and will know well in advance if they are going to attend.
Pop-star audience goers will make the decision to buy and will need to confirm purchase at different time points before the event. They also have varying degrees of knowledge as to how much the ticket price really should be, meaning they are not going to be good at bidding and won't fully participate.