Final answer:
Movie theaters commonly employ variable pricing, adjusting ticket prices based on various factors to attract audiences at different times or to maximize profits on popular movies.
Step-by-step explanation:
The pricing tactic often used by movie theaters is variable pricing. Movie theaters might charge different prices for different times of day, days of the week, age groups (such as discounts for children or seniors), or they may vary the price depending on the demand for specific movies. This pricing strategy allows theaters to adjust prices to attract more viewers during off-peak times or to maximize revenue from popular showings.
It's distinct from predatory pricing, which is a practice where a firm sets very low prices to drive competitors out of the market, and then raises prices again once competition is reduced. While on-demand streaming providers like Netflix have introduced tiered pricing, this model offers different levels of access for varying prices, which affects buyer's purchasing choices. This shows how the pricing strategies can significantly influence consumption patterns and competition in different industries.