Asked by Callie Cortez on Jun 24, 2024
Verified
Season ticket holders for the St. Louis Rams received a surprise when they read the applications forms to renew their season tickets. In order to get their season ticket to the Rams' home games, they also had to buy tickets to the preseason games. Many season ticket holders grumbled about this practice as an underhanded way for the St. Louis Rams to get more money from its season ticket holders. This practice is an example of:
A) peak-load pricing.
B) intertemporal price discrimination.
C) two-part tariff.
D) bundling.
E) Both A and B are correct.
Season Ticket Holders
Individuals or entities that purchase tickets for an entire season of a sporting, cultural, or entertainment event, often at a reduced rate per event.
St. Louis Rams
A professional American football team that was based in St. Louis, Missouri, before relocating.
Bundling
The practice of selling several products or services together as a single combined unit.
- Grasp the strategic employment of price setting by organizations to achieve higher financial returns through the collective offering and tying of products and services.
Verified Answer
KL
Karen LariosJun 26, 2024
Final Answer :
D
Explanation :
Bundling is the practice of selling two or more goods or services together as a single package. In this case, the St. Louis Rams bundled the season tickets with the preseason tickets, requiring fans to purchase both.
Learning Objectives
- Grasp the strategic employment of price setting by organizations to achieve higher financial returns through the collective offering and tying of products and services.