Wednesday, August 20, 2008

Money & Business

Alpha Consumer by Kimberly Palmer

Popcorn and Soda? That's $10

April 17, 2008 10:37 AM ET | Kimberly Palmer | Permanent Link

Here's another reason to hate going to the movies: The prices for popcorn and other "frill" items are inflated to enable movie theaters to offer cheaper tickets. (Not that the tickets are all that cheap, either.) According to research from the University of California-Santa Cruz and the Stanford Graduate School of Business, it makes sense for movie theaters to gouge us on those Milk Duds, because if they charge more for tickets instead, they'll get fewer customers. "If you want to bring more consumers into the market, you need to keep ticket prices lower to attract them," says Wesley Hartmann, associate professor of marketing at the Stanford B-school.

Of course, to avoid emptying your wallet at the concession stand each time you have a movie date, you could just hold on to your bag for months to get free refills. (That's not a method I would recommend, especially for anyone trying to impress his date.)

Tags: movies | food prices

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Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Share with her your own money issues by sending questions to alphaconsumer@usnews.com.

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