Most Movie Theatres Charge Different Prices to Different Groups of Customers

question 175

Multiple Choice

Most movie theatres charge different prices to different groups of customers for movie admission but not for movie popcorn.Which of the following is a reason for this?

• A) Because the mark-up on movie popcorn is very high and movie theatres do not want to forgo this source of revenue.
• B) Because the demand for popcorn is very high relative to the demand for movie admissions.
• C) Because it is easier to limit resale in movie admissions but not in popcorn.
• D) Because the cost of operating a concession stand in a movie theatre is very high compared to the cost of showing a movie.

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Definitions:

Customer Recommendations

Suggestions or advice given by consumers about a product, service, or company based on their personal experience or satisfaction.

Share-Of-Wallet

A marketing term referring to the amount of the customer's total spending that a business captures in the products and services that it offers.

Production Costs

The total expenses incurred in the manufacturing of a product, including materials, labor, and overhead.

Customer Loyalty Rate

A metric that measures the proportion of customers who repeatedly purchase from a brand over a specific period, indicating their loyalty.