Back to search
popular award

What Price Vertigo?

By Ioana Popescu
Published 03 Jan 2006
Reference 5342
Topic Marketing
Industry Entertainment
Region Europe
Length 5 page(s)
Inspection copy
6.00
Add to cart
popular
Prizes & Awards

2023 The Case Centre Best-selling Classic Case in Marketing

2022 The Case Centre Best-selling Classic Case in Marketing

2016 The Case Centre Best-selling Case in Marketing

Summary

The case uses the example of U2's 2005 world tour to investigate price differentiation in the context of entertainment industries, and particularly multi-pricing in a (capacity) constrained environment.

Teaching objectives

The objectives are: discussion of price differentiation dimensions, market segmentation, demand modelling, consumer surplus, price optimization with deterministic (linear) demand and various constraints (capacity, fairness), and the marginal revenue rule. The case can also provide an opportunity to build small pricing models using Excel solver.

Keywords
  • AR2006
  • AR0506
  • RD0306
  • PRICING
  • PRICE DIFFERENTIATION
  • PRICING WITH FIXED CAPACITY
  • SEGMENTATION
  • ENTERTAINMENT
About the author
Popescu

Ioana Popescu

Professor of Decision Sciences

Recommended Cases

Yahoo!: Pricing Search Engine Advertising

By  Ioana Popescu,  Alex Dabbous
Add to cart
The case discusses Yahoo!'s marketing services and various types of advertising. The main focus is on search engine advertising, one of the most important revenue sources for Yahoo. The market, Yahoo's pricing strategies and challenges are described.
    View case

    Easy Profit: A Revenue Management Pilot

    By  Ioana Popescu
    Add to cart popular award extra
    This case introduces the concept of Revenue Management as a tool to maximize profits and provide competitive advantage to firms in diverse industries. The case and accompanying simulation are set in the airline industry, where revenue management originated.
      View case

      Launching 3G Mobile Services in Finland: War or Peace?

      By  Javier Gimeno,  Santeri Kiverlä
      Add to cart
      The mobile industry in Finland in 2005 was facing a price war, which hurt not only the profitability of operators but also their incentives to adopt new technologies (3G). In 2005, the Finnish mobile telecom regulator decided to allow handset bundling and subscription plans for 3G services. This was an opportunity for incumbents to reshape the competitive context in the industry.
        View case