Cheap Tuesdays – A Great Self-Propagating Hurdle

Oct 17, 2014

"Cheap Tuesdays" at the movies are a great example of a self-propagating pricing hurdle – one that has the effect of making itself even more effective.

 

The tradition of "cheap Tuesday" discounted admission at movie theaters goes back at least 30 years. Part of the hurdle is obvious – most people would rather go to the movies on the weekend, and just being on a weeknight creates a hurdle.

But this pricing hurdle is actually self-propagating. It attracts a specific type of customer, one that further deters customers who are likely willing to pay full price to come on the weekend and enjoy a better experience.



Category: Examples

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