Chicago Symphony Orchestra Essay

The Chicago Symphony Orchestra (CSO) was facing hard times when Debra Card joined as President in 2003. Its old business practices were leading to declining sales and increasing debts. From the 1970s to 1980s business was booming for the CSO, but the 1990s brought about inflation and price increases. According to Vice President for Sales and Marketing, Kevin Giglinto, the CSO believed its product would outstand the price increases, however, it was wrong. Since price elasticity for cultural products can vary daily, the CSO was trapping itself with its narrow price margins. In 2003 it developed a pricing strategy, setting price based on each segment’s behavior, after observing variations in price elasticity from the different customer segments. …show more content…
However, other researchers have said there is no competent definition of dynamic pricing which could be introduced as a standard (Deksnyte, 2012). Regardless of the definition, dynamic pricing has become a popular strategical method thanks to the advancement of technologies. It allows organizations to set the proper price based on their products demand and their value to a consumer. This benefits the organizations and consumers by allowing the organization to maximize their return, while also helping consumers pay a relevant price. Dynamic pricing is everywhere, including airlines, hotels, car rentals, cruises, retail, restaurants and even telecommunications. I, myself, will actually benefit from dynamic pricing on a Caribbean cruise I will be taking the week before thanksgiving. Due to the time of year, my tickets were drastically cheaper than they would have been during peak season. Dynamic pricing is different for each type of organization. My cruise will cost less during hurricane season, where a restaurant might offer price specials on a slow day, such as each

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