Movies are typically shown in theaters for only several months before they are released on online streaming sites at a lower price. This is an example of
A) a teaser strategy.
B) a switching cost.
C) a lock-in strategy.
D) intertemporal pricing.

Question

Quizplus · Accepted Answer

Intertemporal pricing involves setting different prices for a product or service at different times to reflect changes in demand or costs over time. In this case, movies are priced higher when they are first released in theaters and then priced lower when they are made available on streaming sites, reflecting a strategic pricing decision over time to maximize revenue.

Movies Are Typically Shown in Theaters for Only Several Months