Hollywood Entertainment analyzed its customer base to ascertain the characteristics of customer segments and understand special market conditions. The independent movie theater found that senior citizens thought the current $5 admission price was too high and that most consumers preferred to go to the movies after 6:00 p.m. To strengthen ticket demand, Hollywood Entertainment began offering $3.50 tickets to all seniors and $4 tickets for all movies starting before 6:00 p.m. Hollywood Entertainment was employing a
A) variable pricing strategy.
B) flexible pricing strategy.
C) price lining strategy.
D) differentiated pricing strategy.

Question

Quizplus · Accepted Answer

Hollywood Entertainment is adjusting prices according to the characteristics of specific customer segments. Therefore, they are employing a variable pricing strategy. This strategy allows the company to offer different prices to different consumer segments based on their willingness to pay or their unique preferences, such as the timing of movie screenings.

Hollywood Entertainment Analyzed Its Customer Base to Ascertain the Characteristics