1.Any cinema operator may find that it would be worthwhile to follow a policy of
ID: 2639074 • Letter: 1
Question
1.Any cinema operator may find that it would be worthwhile to follow a policy of varying the cinema ticket prices rather than adopting a fixed- price policy. Under what circumstances should the cinema vary the price of a movie ticket?
2. XiaoMi is an upcoming Chinese brand of mobile phones. View video for some background about XiaoMi (http://www.youtube.com/watch?v=dRZSEVyrNls). In the next quarter, XiaoMi is launching a new smartphone here in Singapore, what factors would need to be taken into account when pricing the phone model for the Singapore market?
Explanation / Answer
Solution-1
Firms price discriminate in other dimensions than just scaling the house. They typically offer discounts under various conditions. For example, early buyers are sometimes offered advance-purchase discounts, coupons are mailed to selected segments of the markets, price discounts are given to students and senior citizens, and some tickets are sold at discounted price on the day of performance. In a study of a particular Broadway show, Leslie (1998) found that, on average, 8.7 different tickets categories (out of 17 possible categories) were offered for each show. He also found that the expected absolute difference between any two ticket prices selected at random was 40% of the mean price. To put this figure into perspective, the same measure of price dispersion in the airline industry is 36% (Borenstein and Rose (1994)). This evidence on price dispersion suggests that price discrimination may play an important role in some ticket markets. One must keep in mind, however, that a fair amount of price dispersion may not be due to price discrimination. Increasing prices on Saturday evening or charging more for front row seats is perfectly consistent with a competitive assumption. Promoters are responsible for setting the price for their own events and generally tailor prices to the demand of the particular events. For example, a performer on a tour may set different prices in different city stops to match the specific city demands. Another illustration of this principle is that performances are priced according to day-of-performance. Prices tend to increase over the week and are highest for Saturday night performance
Solution-2
Xiaomi is now a Smartphone seller No. 3 in the world (update: 15-8-2014) and there are only 4 years in the market with great competition from multinationals. Why do so many people buy Xiaomi? The advantages of the Xiaomi MI4 there are 4 factors: Direct Selling, Price, Promotion and quality.
Xiaomi Website and Agressive Marketer very effective in sales.
With priced at $ 299 SGD MI3 has specs that are not lose with the Samsung S4 and price that most closely MI3 just Lg Nexus 5.Xiaomi follow the stock price is always changing and other competitions of $ 338 for Lg Nexus 5 to $ 299 SGD been down once, to $ 269 SGD for a tax issue in feedback to $ 299 SGD. Now in Singapore Xiaomi MI3, Note and POWERBANK out of stock and in the Singapore market prices rose between $ 60 SGD, to $ 100 SGD (update: 15-8-2014) but this could be a backlash because only website selling redMi people so bored to the website.
Introducing apple style marketing, after the market demand they purposely make things become rather rare and making this case into the talk of people. Besides Xiaomi in the newspapers must be news 100,000 units sold within 1 hour when they pre-order these items a month earlier with other benefits. This tactic has been copied by Z3 jakarta Edition Blackberry, Samsung S5 and Note 4.
Xiaomi quality using advanced CPU together with highend smartphone Snapdragon (MI3 Xiaomi China using Nvidia), lcd fitting in use for browsing, watching videos and playing games plus beautiful casing which makes Xiaomi MI3 dream of many people.
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