Tag Archives: services

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 | Monday, May 30, 2022 · 7:35 am

Car Washes That do More than just Wash and a Buff

I don’t know about you, but I love a good car wash. Nothing beats taking a dusty, dirty car and turning it into a clean and shiny car.

But, car washes are pretty boring fare. Just basic. Wash and dry. Maybe a little wax. And we can do this ourselves (if lucky enough to have a house and yard), or we can go to a car wash for different levels of service from self-serve to full-detailing.

One of the problems with car washes is their total lack of appeal for customers while waiting for the car to be cleaned. Bored patrons. Utilitarian building. No appeal. No community. Wouldn’t it be nice if car washes were, well, attractive and welcoming?

Some car washes have seriously upped their game, adding coffee shops, bars, food, hookah bars, and more. The result is to make it more like a club – and keep customers there to spend more money and time.

One car wash in Sioux Falls, S. D., offers locally roasted coffee along with sandwiches and pastries. Another business offers pet-washing stations plus doggy snacks. A car wash in Zurich, Switzerland, has a dance club on the second floor so that customers can dance while they wait. And, a car wash in Plano, Texas, uses advanced technology in its $5 million facility with a luxury lobby complete with televisions and café

Lest you think car washes are small potatoes, a research report shows it growing to a $38 billion market by 2030. However, start-up costs for an express exterior car wash can be several million dollars. Businesses need a little competitive edge and better services could help differentiate car washes.

Care for a latte while you wait?

Group Activities and Discussion Questions:

  1. Start with a poll. What do students dislike about car washes? What amenities would they like to see in an upscale car wash?
  2. Discuss competition: Who are the direct competitors for this service? What are the points of difference?
  3. Discuss the four I’s of services: Intangibility, inconsistency, inseparability, inventory.
  4. Where on the service continuum is a car wash?
  5. Service encounters: Develop a customer contact audit for a luxury car wash.
  6. Divide students into teams and have each team develop their own car wash service.
  7. Who is the target market? How will they promote it?

Sources:  Jordan, M. (26 April 2022). The luxury car wash: Dog spa, hookah and even lamb chops while you wait. Wall Street Journal.

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by | Thursday, February 24, 2022 · 7:15 am

What Trends are in Store for us in 2022?

Marketers need to be able to monitor trends with an eye towards predicting what consumers will want next. While it is hard to predict the future, we can examine the current environment with respect to what might happen next.

In its yearly predictions report, international research firm Euromonitor forecasts what consumers will want and need. Companies then can use these predictions to consider the strategies that they might pursue.

Lifestyles in 2021 made radical shifts as populations continued to be impacted by the pandemic. To no one’s surprise, COVID-19 and the Omicron variant continue to be very important to the immediate future.  Marketers and businesses must evolve quickly to keep up with new demands.

Ten  predictions for consumers in 2022 include:

  1. Rethinking the supply chain.
  2. Climate change – a low-carbon world.
  3. Senior citizens and their digital adoptions and usage.
  4. Controlling personal finances.
  5. Prioritizing personal values and individual goals.
  6. The metaverse moves to reality.
  7. Increasing adoption of second-hand and peer-to-peer marketplaces.
  8. City dwellers want advantages of living outside of cities.
  9. The importance of self-care and happiness.
  10. The hybridization of being social.

These trends provide guidance for companies and marketers. Using these, we can gain insight into consumer values and behavior. If 2021 was a year that required us to be adaptable and resilience, then what does 2022 indicate?

What trends will impact you?

Group Activities and Discussion Questions:

  1. The full Euromonitor report can be accessed at: https://go.euromonitor.com/white-paper-EC-2022-Top-10-Global-Consumer-Trends.html?utm_source=WSJ&utm_medium=article&utm_campaign=CT_22_01_18_WP_Top%2010%20GCT%202022%20EN
  2. Discuss the importance of environmental scanning and conducing SWOT analysis.
  3. Show the Euromonitor report to students.
  4. Divide students into teams.
  5. Have each team select one of the top 10 trends and prepare a discussion for the class.
  6. What industries and companies will be most impacted by that trend?
  7. What should marketers do to address the trend?

Source: Alcantara, A-M., (January 17, 2022). Ten trends that will shape the way we shop, eat and live this year, Wall Street Journal; Euromonitor International (January 18, 2022), Top 10 global consumer trends 2022.

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