Thank You Die-Hard Moviegoer
There are two types of consumers that frequent the movie theater. The first is the casual moviegoer that sees the great movies we all love and remember. The second is the die-hard moviegoer that finds a terrible reviewed movie to watch late Tuesday night with a five dollar tub of popcorn. Die-hards are consumers that are not price sensitive while casuals will opt for bowling if movie prices increase. The movie theater business has a fairly competitive market, nevertheless competition is decreased when the moviegoer enters the theater. Once a movie theater has the hungry consumer inside the door their ability to increase profit margin on concessions has increased. Increasing profits then becomes a matter of getting more people in the door with a lower ticket price followed by an increase on particularly the sale of popcorn. The lower ticket price that the casual moviegoer enjoys is a result of the die-hard attending many movies and purchasing tons popcorn. Therefore the casual moviegoers should refrain from complaining about the price of popcorn when they hold a seven dollar ticket stub at their next movie.