1. People respond to Incentives
With movie tickets, they offer combos of food. For example, pay extra 100 with ticket and get coke + popcorn at your seat itself. People will respond towards it and add combo with their tickets.
2. Rational people think at Margin
Sometimes Inox transfer their loyal customers to upper couch seats i.e. recliners. There us no extra cost for Inox to make any arrangements, but they take their little extra from the customers.
3. Tastes and Preferences
Inox will release a super hit movie for more number of weeks as it is preferred more by the viewers.
4. 2nd Degree Price Discrimination.
It is hard for movie theatres to identify segments in the market. They segment customers according to the seat they select. For example- people who buy lower seats are price sensitive.
5. Demand Supply Mismatch
Price of the tickets fluctuates when there is a mismatch between demand and supply. Demand increases over weekends. Demand is more than supply, hence price increases until supply is equal to demand.
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