![]() ![]() ![]() Their rationale? Either the $7 popcorn was too expensive or that the small was a better size for their appetite. The majority chose to buy the small popcorn. The first group in the experiment was offered only small or large serves, priced at $3 or $7. ![]() National Geographic’s Brain Games recently ran an experiment on this. Then there is the actual pricing for popcorn options, and the use of decoy items – you’ve probably noted popcorn most often comes in three sizes/prices. Those customers then might prove willing to spend extra on popcorn and ice cream purchases, ultimately maximising the spend of each customer. Hooking you 900% for popcorn gives the cinema flexibility to charge lower ticket prices, maximising attendance and opening up capacity to price-sensitive customers (and increasing margin against a cinema’s set per-screening costs). There is however, a little more to it than that…įirst off, that price hike is actually a form of discriminatory pricing. With a mark up around 900% it’s tempting to write this off as textbook price gouging of a captive market. Fact is, popcorn is actually one of the most profitable product lines in ALL retail. Now, as nice as popcorn is, that’s not the main reason it’s held its own in cinema concessions for decades. Things may have evolved since the halcyon days of jaffas or ice cream – but for all snack selection at cinemas has broadened, one thing has stayed constant. Movie time means choices… your film selection, your seat selection, which cinema to go to… and last but by no means least, the food you’ll munch on for the next couple of hours or so. ![]() This week I thought we’d go a little deeper, and spend some time looking at the psychologies underpinning “popcorn”. Judging by last week’s click throughs a lot of you found popcorn pricing interesting. ![]()
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