The Surprising Ways Pricing Tiers Shape Buying Decisions
Selling event tickets can feel like a balancing act: How do you fill seats without leaving money on the table? A fascinating study by Wendy W. Moe and Peter S. Fader, "The Role of Price Tiers in Advance Purchasing of Event Tickets," offers strategies that can help event producers fine-tune their pricing for maximum impact.
💰 The Power of Price Tiers
Not all ticket buyers are the same, and that’s where price tiers come in. The study found that higher-priced tickets sell earlier in the sales cycle because these buyers value the best seats and are happy to commit early. Meanwhile, lower-priced tickets tend to sell closer to the event, as these buyers are less focused on seat quality and more on affordability.
For event producers, this means price tiers are about more than just revenue—they’re a tool to cater to different types of attendees. By understanding who buys what and when, you can structure your pricing to appeal to a broader audience while optimizing sales.
🚨 Rethink Early Bird Discounts
Early bird discounts might seem like a no-brainer, but the research found they don’t significantly impact when tickets are purchased. Buyers in every price tier stick to their usual patterns, regardless of discounts.
Instead of relying on discounts, highlight the value of early purchases. Promote perks like better seating options, exclusive experiences, or peace of mind knowing you’re all set for the big day. This approach can drive early sales without cutting into your profits.
⏳ Mastering Last-Minute Sales
The week before an event—the spot market—is often a flurry of last-minute ticket purchases. This is your chance to fine-tune pricing strategies to fill seats:
For premium tickets, offering discounts during the spot market can boost sales by attracting last-minute buyers who want a great experience at a slightly lower price.
For lower-priced tickets, keep prices stable but create urgency with countdowns or “limited availability” messaging to encourage quick decisions.
🧠 Biases at Play in Ticket Purchasing
While the study by Moe and Fader doesn’t explicitly label psychological biases, its findings reveal behaviors that deviate from purely rational economic models. These patterns offer a deeper understanding of why consumers make certain decisions when purchasing event tickets:
Anchoring
For lower- and mid-tier buyers, the face value of tickets played a significant role in shaping their perception of value. Even as prices fluctuated closer to the event, their decisions were still tied to the original price they saw. This anchoring effect highlights how initial impressions can heavily influence later purchasing behavior.Loss Aversion
High-tier buyers responded strongly to discounts in the week leading up to the event, a behavior that could be linked to loss aversion. These buyers may feel a heightened need to "avoid missing out" on a good deal for premium seats, even if they were less price-sensitive during the advance sales period.Intertemporal Discounting
The prevalence of last-minute purchases across all tiers, particularly in lower price ranges, suggests that many consumers may underestimate the time required to plan and purchase tickets. This procrastination leads to a surge in spot-market buying, where decisions are often driven by immediacy rather than careful consideration.
✨ Takeaways for Event Producers
Here’s how you can apply these findings to your next event:
Design thoughtful price tiers to cater to different audience segments.
Skip early discounts and focus on emphasizing the value of buying early.
Use targeted spot market discounts to boost last-minute sales of premium tickets.
Track data to understand your audience and refine your strategies.
A smart pricing strategy doesn’t just sell tickets—it creates a better experience for your audience and maximizes revenue. Ready to level up your ticketing game? 🎭✨
Credit: Research insights based on "The Role of Price Tiers in Advance Purchasing of Event Tickets" by Wendy W. Moe and Peter S. Fader