a premier league football club estimates that whilst the price elasticity of demand for its first-team fixtures is (-)0.3, for second-team games the corresponding elasticity is (-)2 2. provide an explanation for this difference in elasticities and advice the club how this might influence its pricing strategy.
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
a premier league football club estimates that whilst the price elasticity of demand for its first-team fixtures is (-)0.3, for second-team games the corresponding elasticity is (-)2 2. provide an explanation for this difference in elasticities and advice the club how this might influence its pricing strategy.
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