When an arts theatre charges different prices for seats in different areas,even though the costs are the same.This form of pricing is called ________.
A) location-based pricing
B) customer-segment
C) product-form pricing
D) flexible pricing
E) penetration pricing

Question

Quizplus · Accepted Answer

Location-based pricing involves charging different prices for seats in different areas, even when the costs are the same. This is a common pricing strategy used by arts theaters, sports venues, and other entertainment venues. By charging more for seats in prime locations, such as the center of the theater or closer to the stage, these venues can maximize revenue while still offering affordable options for customers who are willing to sit further away. This pricing strategy takes advantage of the fact that some customers are willing to pay more for a better view or more comfortable seating, while others are more concerned with affordability.

When an Arts Theatre Charges Different Prices for Seats in Different