Introduction 3
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
Conclusions 16
Statement about the contribution of each member of the group 17
References 18
Nowadays, as the extent of individual’s social life significance has been constantly growing, people are more eager and are showing more activity in attending special events. Some of them may only visit their favorite artists’ performance; others attend different events regardless of being really interested in them or expecting to get loads of positive emotions. The “blind side” of such events, which are all about having fun and enjoying yourself, is hidden in the organizers’ hard work, for whom one of the biggest issues is setting the right price level for the tickets. Potential revenues would be lost if the prices set turned out to be too low, on the other hand, if the prices were too high, then the organizers most likely would find themselves in a situation where the concert/event hall would be half-empty with lots of unsold seats, which serves bad in the context of financial side as much as in respect to the organizers’ reputation, thus, making them less trustworthy in buyers’ eyes.
Regarding all the above mentioned aspects the group of three people has studied the case about the use of price discrimination in ticket sales for special events. In order to set the most appropriate price, it is necessary to understand the possible outcome. Unfortunately it is quite hard to foresee the possible behavior of the client when the price is decreased or increased in a show business, even impossible is to predict the precise numbers – the possible attendance and revenues.
