Question
the same venue will host a very different band, The ManEc Warriors . They have a simpler pricing structure: $450 per ticket. These tickets are
the same venue will host a very different band, The ManEc Warriors. They have a simpler pricing structure: $450 per ticket. These tickets are aimed at diehard fans. However, The ManEc Warriors are finding that there are fewer diehard fans these days, and they can't fill the theatre. They are considering offering discount last-minute tickets, which would be very popular; so, a customer who waits until the last minute might miss out. They expect people who are not diehard fans to go for this option.
Last-minute ticket | Full price | |
Normal adult | $250 | $300 |
Die-hard fan | $300 | $450 |
The original plan was that after the last-minute tickets were introduced, the full-price tickets would be discounted. But the marketing team says that cutting the price would hurt the band's image. Instead, the full-price tickets should offer extra perks, to make them more attractive: free drinks, free T-shirts, or the band could wander down into that seating area during the concert. How much extra value (in dollars of utility) do they need to add to the full- price tickets, to ensure that diehard fans still buy them?
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