A symphony orchestra is preparing to stage a short concertseries. The first program in the series consists of music byBerlioz and Tchaikovsky, while the second program comprises musicby Bartok and Stravinsky. The potential audience for the series canbe thought of as divided into four,equal-sized groups. Members ofthe first group, whose tastes tend to the romantic, would bewilling to pay up to $40 for a ticket to the first concert and upto $20 for a ticket to the second concert.Members of the secondgroup, whose tastes tend more to the neo-classical, have theopposite preference: they would pay up to $20 for a ticket to thefirst concert and up to $40 for a ticket to the second concert.Members of the third group, confirmed Tchaikovsky lovers, would payas much as$45 for a ticket to the first concert, but only $5 for aticket to the second concert. Finally, members of the fourth group,who pride themselves on their sophisticated taste, would pay asmuch as $45 for a ticket to the second concert, but only $5 for aticket to the first concert. This information is summarized inTable 2
While answering these questions, please clearly state yourassumptions (if any) and your justification for thoseassumptions.
- What is the best price to charge for each concert if you arenot offering a single ticket for the concert series?
- What is the best price to charge for the concert series if youare not offering tickets for each concert separately?
- Now suppose you offer a single ticket for the concert series inaddition to offering tickets for each concert separately. Whatprices will you charge for the series and each concert?
- Now consider the case titled \"Multiproduct Pricing\"? What isthe best price to sell each product individually? Can the companydo better by bundling?
| PATRON TYPE | BERLIOZ/TCHAIKOVSKY | BARTOK/STRAVINSKY |
| ROMANTIC | 40 | 20 |
| NEO-CLASSICAL | 20 | 40 |
| TCHAIKOVSKY | 45 | 5 |
| SOPHISTICATE | 5 | 45 |
| | |
