Case is all about increasing consumer income and its effect on growth of multiplexes in India. Consuming population of India has been increased by more than 200% to become thrice in last 10 years as the data says. Since the consuming population is increasing so the demand for superior commodities (multiplexes) are also increasing. Another reason mentioned in the case is about consumer test and preferences that due to change in test and preferences of consumers, multiplex industry is enjoying booming era. CASE ANALYSIS:
By analyzing the given case it could be concluded that the case is all about consumer income and consumer test and preferences. As the data shows consuming population of India is increasing or in other words we can say that consumable income of the households are increasing. now if the income of the consumer is increasing so that the consumer will shift toward superior goods in place of inferior goods which they are consuming in present time. Multiplexes are providing much better facilities in comparison of single screen theaters as they are fully air conditioners, more comfortable seats etc. and that’s why they are assumed as superior goods in comparison of single screen theaters. As the consumer’s income is increasing, they are now ready and able to pay higher amount of cash for the movie tickets if they are being provided better facilities and multiplexes are doing the same and that’s why demand for multiplexes has been increased not only in metro cities but in 2nd and 3rd tier cities also. Since number of multiplexes are limited that’s why they are charging high ticket prices from the customers which leads them to secure high revenue share of cinemas industry.
Increase in consumer’s income is the main reason behind the rapid growth of the multiplexes in india but apart from that...