Buy Pricing Discussion Question
Part 1:Look for popular press articles that discuss the pricing of products/services. In your post, please discuss the managerial implications of the pricing problem. Discuss how you perceive the focal firm determined their price. Please include a link to the article. Please find below examples for reference(please Dont Copy Paste)
As the music industry makes its comeback after COVID-19, ticket prices for popular musicians are soaring and the industry is seeing more and more individuals willing to pay higher prices for VIP tickets and alcohol at the event venue. This is a trend that the Live Nation Entertainment (parent company of Ticketmaster) CFO, Joe Berchtold, does not expect to come to an end anytime soon.
These higher prices for tickets are caused by a high demand for concerts post COVID-19, but not a large supply. Since many of the world’s largest musicians are going on tour right now, the demand for tickets is likely to stay high since lesser-known artists will likely push their tours back to 2023 or 2024 to not be overshadowed by the larger acts who are currently going on tour. This means that the market demand for tickets is not likely to go away anytime soon and the musical events industry will remain very profitable for the foreseeable future.
Recently, Ticketmaster has been under fire for taking advantage of expensive ticket prices. However, they deny this and insist that the artist representatives have far more control over the ticket cost than they do. Ticketmaster has also discussed the implications of the resale market on ticket prices. The resale market buys many tickets at the original price and resells them at higher prices once the original tickets are sold out.
Buy Pricing Discussion Question
In my opinion, Ticketmaster is placing their pricing from balancing the high market demand for premium seating as well as working around artist representative’s demands. They have increased their prices to meet the artists representative’s demands and the demand for premium and VIP tickets skyrockets after the pandemic.
The article I selected is about the pricing of long-term stays. Specifically, about Marriott launching a new service to compete with Airbnb. Marriott is launching a premium product compared to Airbnb. These apartments are very accommodating to travelers, and they plan on pricing their service in the upper-scale and luxury segment area. This will be a step above a typical extended stay hotel. They also plan on being more transparent in their pricing model. This will make sure consumers are not surprised by fees. The managerial implication of this decision by Marriott is they will be able to enter a new segment of the hotel market. They feel as if the luxury hotel/extended stay area is a place that they can compete in and make money. The pricing strategy Marriott is pursuing is the hi-end pricing strategy. They believe customers will be willing to pay more money for certain accommodations such as having a full kitchen, washer, and dryer. Marriot is determining their price by saying their service is better and more of a premium service compared to other extended stay places. The article did not list exact prices because they will vary on the location and the apartment/house.
Please provide comments for example 1 and example 2(1 Paragraph each)
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