Research Paper Undergraduate 412 words

Companies Granting Discounts to Special

Last reviewed: July 20, 2007 ~3 min read

Companies Granting Discounts to Special Groups

Perhaps the first experience most people have of the phenomenon of discount pricing for special groups is when they attend their first film. Children under the age of 12 in most movie theaters pay a lower price. This is partially to encourage parents to bring their children, which parents might otherwise be disinclined to do, as children are often restless during a film, and the child's lack of attention may not justify the full price of admission in the parent's mind. However, unless parents can get a babysitter, the parents may not go at all to the movies, if they cannot bring their children, thus resulting in a loss of revenue to the movie theater.

Also, once the children grow older they will, from the movie theater's perspective, hopefully become 'hooked' on the movie-going experience, and eventually beg their mother and father to take them to the newest Disney 'flick.' Thus providing a financial incentive for parents to bring their children to the theater is in the movie theater's self-interest as a business.

This pricing technique is even more commonly used by fast food restaurants, as is evidenced by the cheaper children's McDonald's meal known as the 'Happy Meal.' Health-conscious parents might be disinclined to take their children to such establishments at all, but the special promotions aimed at children cause the children to nag the parents to go, and the parents give into the child's demands. Conversely, children may beg not to go to higher-end restaurants, and refuse to eat, but a discounted children's meal will provide a financial compromise for parents dragging small children with small appetites to restaurants when the parents either cannot find someone to mind the child or wish to introduce the child to the experience of fine dining at an early age.

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PaperDue. (2007). Companies Granting Discounts to Special. PaperDue. https://www.paperdue.com/essay/companies-granting-discounts-to-special-36596

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