MKTG 348 Week 8 Optimization Unseen
For this weeks post I wanted to talk about a something I noticed at my recent trip to the United Center in Chicago Illinois. When attending a Blackhawks game I purchased a beverage and noticed that there were no cupholders on the seats like most venues and stadiums. At first I was upset because I would have to hold my beverage because I didn't want to risk it getting spilled if it was left on the ground. I found myself drinking it faster than usual because it was more convenient than holding it for the duration of drinking it.
Analytically speaking when these stadiums sell products like beer for $10 a serving they have a tremendous markup on the product. When they sell more beers they make more money per game. How do you sell more beer? You make them drink faster. They do this by eliminating cupholders. The selling price per seat is much higher because instead of someone drinking slow and enjoyably they will subconsciously drink faster and buy more. By optimizing the seat they are increasing revenue without consumers knowing.
Analytically speaking when these stadiums sell products like beer for $10 a serving they have a tremendous markup on the product. When they sell more beers they make more money per game. How do you sell more beer? You make them drink faster. They do this by eliminating cupholders. The selling price per seat is much higher because instead of someone drinking slow and enjoyably they will subconsciously drink faster and buy more. By optimizing the seat they are increasing revenue without consumers knowing.
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