Revenue management in the context of movie theaters: Is it fair

Choongbeom Choi, Miyoung Jeong, Anna S. Mattila

Research output: Contribution to journalArticle

10 Scopus citations

Abstract

Certain industry characteristics (for example, a relatively fixed capacity, varying and uncertain demand, and perishable inventories) are a prerequisite for a successful implementation of revenue management (RM) practices. Although movie theaters have these characteristics, they have failed to try RM as a pricing strategy. The current study examines the joint impact of five potential RM practices (that is, rate fences) and framing effects (surcharge versus discount) on consumers' price fairness perceptions. Several rate fences (morning-versus-noon, weekday-versus-weekend and time-of-booking-based pricing) received relatively high fairness ratings, whereas location-based and popularity-based pricing were perceived as less fair. In addition, framing ticket prices as a discount rather than a surcharge significantly improved customers' price fairness perceptions. The findings of this study provide guidance for movie theater operators in their pursuit of optimal pricing.

Original languageEnglish (US)
Pages (from-to)72-83
Number of pages12
JournalJournal of Revenue and Pricing Management
Volume14
Issue number2
DOIs
StatePublished - Mar 21 2015

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Finance
  • Economics and Econometrics
  • Strategy and Management

Fingerprint Dive into the research topics of 'Revenue management in the context of movie theaters: Is it fair'. Together they form a unique fingerprint.

Cite this