Monthly Archives: November 2022

by | Friday, November 4, 2022 · 8:03 am

The Cost of Buying Springsteen Tickets

First, a question for everyone… Do you think concert ticket prices are ‘too low’, ‘too high’, or ‘just right’? Going out on a limb here, we bet the biggest percentage of people selected that concert ticket prices are ‘too high’.

Example: Bruce Springsteen ticket prices were for sale for $5,000 and up. And that was if a buyer tried to purchase tickets directly on Ticketmaster.

Another example: Adele concert prices in Las Vegas started at $676 and went for $40,000 (for front row).

Ticketmaster, Live Nation, and StubHub now use “dynamic pricing” for concert tickets. This translates to prices fluctuating wildly; high demand equals high prices. These ticket hubs also have resellers who scoop up blocks of tickets and then resell those at a higher price, often using the original ticketing site to make the sale. The ticketing site earns commission from the double sale.

[Note: Ticketmaster release data that showed only 12% of tickets used dynamic pricing. Overall, only 18% of Springsteen’s U.S. tickets sold for under $100, and only 1% sold for more than $1,000.]

Regardless, buying concert tickets can be both confusing as well as expensive. When to buy? Where to buy? And if we can’t get tickets directly, what will a reseller charge for them?

What would you pay to see The Boss?

Group Activities and Discussion Questions:

  1. Pricing is a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  2. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  3. For Springsteen concert tickets (or any other entertainment), divide students into groups and have each group work on any/all of the six steps.
  4. When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
  5. Debrief the exercise. Compare the various pricing models and discuss advantages/disadvantages of each.
  6. Optional: Have students examine the pricing policies on Ticketmaster, StubHub, SeatGeek, and Live Nation. (Note: Ticketmaster and Live Nation merged in 2010.)

Sources:  Greene, A. and Millman, E. (2 August 2022). Springsteen fans raged over ticket prices. Experts say there’s no easy fix. Rolling Stone.; Lieber, R. (26 July 2022). The case of the $5,000 Springsteen tickets. New York Times.; other news sources.

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by | Wednesday, November 2, 2022 · 8:48 am

General Mills Adds Brand Loyalty Program

High prices and inflation are big issues for consumers these days. Food inflation reached a 43-year high in June. As inflation keeps prices going high, many consumers are switching to lower-cost store brands instead of higher priced name brands.

To help keep loyal consumers, and to gain new ones, General Mills has launched its first-ever brand loyalty program called Good Rewards. The program includes special offers and points for consumers that can be redeemed for products, gift cards, and more, helping families stretch their grocery dollars.

The program gives consumers rewards every time they purchase General Mills products. Consumers scan receipts after shopping to get rewards, including one percent back on all General Mills purchases.

Good Rewards is part of the popular app Fetch Reward. With roughly 15 million Fetch users, it is the top downloaded shopping app for iPhone and the second most downloaded app for Android users. General Mills has a goal of 1 million consumers to use Good Rewards within a year; in less than a month the gained 350,000 users.

Rewards programs also offer brands a detailed look at consumer behavior and purchase habits. The better companies are at understanding their customers, the more opportunity exists to offer personalized rewards.

Get rewarded!

Group Activities and Discussion Questions:

  1. Start with a discussion about loyalty and rewards programs and their use in marketing.
  2. Have students count up the number of different rewards programs they participate with. Who has the most?
  3. Show Good Rewards website: https://www.generalmills.com/news/stories/introducing-good-rewards
  4. Show Fetch Rewards website: https://www.fetchrewards.com/
  5. Discuss setting SMART objectives (specific, measurable, achievable, realistic, and time-bound).
  6. Divide students into teams. Have each team develop five SMART objectives for General Mills Good Rewards.
  7. Discuss the objectives. How would the objectives change if a different strategy was used?

Sources:  Johnson, B. (5 August 2022). General Mills adds loyalty app. Minneapolis Star Tribune.

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