microeconomics analysis the demand of ba students towards cinema servicies

And watching movies is one of the entertainment types chosen by many people, especially students.. The purpose of this study is to analyze “the demand of Banking Academy students for mov

Banking Academy of VietnamInternational School of Business

Subject: Microeconomics TOPIC:

ANALYSIS THE DEMAND OF BA STUDENTS TOWARDS CINEMASERVICIES

Lecturer: MSc Do Minh ThuClass: CityU 10BStudents:

Le Thi Ngoc Anh – CA10-032Bui Thi Thuy Ngan – CA10-065Nguyen Minh Ngoc – CA10-067Tran Thi Tuyet – CA10-076

Nguyen Ngoc Khanh Van – CA10-016

Hanoi, 9 December, 2022th

ABSTRACT

In an era when human civilization is extremely flourishing and developing, the quality of life and human needs are also increasing After hours of studying and working hard,people need rest and entertainment to regain strength and spirit As society develops, the demand for entertainment increases And watching movies is one of the entertainment types chosen by many people, especially students The purpose of this study is to analyze “the demand of Banking Academy students for movie theater services” to gain a deeper understanding of the cinema market and assess the students'satisfaction with this entertainment service Quantity methodology was approached in this study through a survey that was created with twelve questions in order toward the perspective of 113 randomly selected BA students about cinema services After aggregating the results, this survey shows that most students have demands for cinemas The majority of participants go to the cinema once a month and mostly with their friends In addition, the study also reflects the income situation, the level of payment of students for each movie viewing and related goods in the theater Moreover, this paper shows that the students are quite satisfied with the facilities and service quality at the cinemas that they have seen Cinema services are popular among students these days In general, with this situation, movie theaters should carefully consider improving the quality of facilities, services and prices to be more suitable for today's young audience

ANALYSIS THE DEMAND OF BA STUDENTS TOWARDS CINEMASERVICIES

I Theoretical basis

II Demand: The amount of a good or service that buyers are willing and able

to buy at different prices during a given period, assuming other factors affectingthe demand are constant.

Supply: The amount of a good or service that sellers are willing and able to sell

at different prices during a given period, assuming all other factors are held constant.

Ordinary Goods: Goods whose share of total consumer spending increases

with the increase in their income.

Secondary goods: These are goods whose proportion of spending in total

consumer spending decreases with the increase in their income.

Substitute goods: These are goods that satisfy the same need (but may have

different levels of satisfaction).

Complementary goods: These can be goods that are used in parallel to

complement each other to satisfy a certain need.

Market Equilibrium: A state in which there is no pressure to change prices

and output, and where there is sufficient supply to meet market demand The price at which buyers want to buy and sellers want to sell at their discretion is called the equilibrium price

Market mechanism: A form of organization and management of the economy

in which individual consumers and traders interact in the market to determine prices and output This is a self-control mechanism of economic activities through two forces: supply and demand and market prices.

II Market analysis1 Supply fluctuations

The 2021 is a really difficult time for the service industry in Vietnam in general and in Hanoi in particular when the whole country has to implement social distancing, banning gatherings in crowded places This caused many service locations to close One of them is cinemas - which used to attract a large number of young people Cinemas were heavily affected when they were closed twice (in early February and from May 5, 2021), many films had to constantly be rescheduled to suit the epidemic situation This event caused the supply of cinemas to decrease significantly.

Mr Nguyen Hoang Hai - Content Director of CGV said: "When the fourth epidemic broke out, not only CGV but also businesses operating in the film industry faced many challenges during the epidemic One of the biggest challenges is cash flowin the business Box office revenue is at almost zero, while cinemas still have to bear a lot of costs during the time the cinema is closed.”

However, by the beginning of 2022, when the epidemic situation was under control, the Prime Minister asked the ministries to coordinate with the directing agency in handling the reopening of cinemas nationwide Immediately, filmmakers quickly took advantage of this moment to release their works to the audience Grasping the trend of young people after the epidemic, theaters have launched many blockbusters not only in Vietnam but also abroad At this time, the supply has had a positive change, making this service industry more potential than ever

2 Demand developments

Today's entertainment services are constantly evolving to meet the needs of students They frequently satisfy themselves with entertainment services for young people such as shopping, beauty, watching movies, and so on after stressful school hours And we discovered that the demand for going to the movies is increasing, and they also know how to choose and watch movies that are appropriate for their budgets and abilities.

We created a survey to analyze the results and then provide relevant evidence inorder to better understand the needs of students in general and students at the banking academy in particular The survey was distributed in early November, when students

wanted to watch movies across special occasions like Halloween, Christmas, and New Year's.

With over 100 banking academy students of all genders participating in the survey, we discovered that the number of men and women participating in the survey was nearly equal, with 48.7% of women and 44.2% of men participating, respectively.

And accounting for more than half of the survey participants are second-year students with 65.5%

Students who want to unwind after a long day of classes should go to the movies Up to 19.5% of students who responded to the survey said they go to the movies twice a month, while 17.7% said they only go once a week Furthermore, nearly half of the students polled, 47.8%, stated that they only go to the movies once a month Despite the fact that the movie watching service is expanding, there are still a few students who participate in this activity only occasionally or never at all.

With such a wide range of movie viewing frequency, we wanted to better understand when students would choose to watch movies for entertainment Accordingto the graph, 48.7% of students prefer to watch movies in theaters when they have free time, while 47.8% prefer to watch them when there are popular blockbusters Around 44.2% of students prefer to watch movies on special occasions such as holidays, weekends, and so on, while 38.9% prefer to watch movies starring famous actors.

Watching movies with someone else is another factor influencing students' desire to watch movies, they frequently watch movies with friends, and this number accounts for a sizable proportion of the total number of students (77%) And for those who have a lover, a life partner, going to the movies with their lover is an extremely reasonable option; approximately 48.7% of students go to the movies with their lover Furthermore, the experience of going to the movies alone is very interesting, they can enjoy the movie to the fullest, and up to 34.5% of students choose to go alone after friends and lovers.

3 Market price movements*Buy tickets directly at the counter

According to dulichtoday.vn newspaper, the market price difference between cinemas in Hanoi is not much Cinemas such as CGV, BETA or Lotte announce movie ticket prices ranging from 60,000 to 80,000 for 2D theaters from Monday to Thursday This price increases by 10,000 VND if customers use 3D theater service Besides, cinemas also increase ticket prices in the range of 10,000-20,000 when customers watch movies after 12pm Besides, on weekends or holidays, the average ticket price increases due to increased customer demand, specifically the ticket price at CGV theater is 70-150k, BETA is 50-60k, and Lotte is 65-90k.

In general, the price difference between theaters is about 10,000 to 20,000 The BETA theater is the theater with the lower average ticket price compared to the other theaters while the CGV theater has the highest average ticket price.

*Buy tickets online

This form of ticket purchase also changes the price at theaters because when paying via online form, specifically using payment methods via momo, zalo pay or banking, customers will receive a voucher discount from 10-15 % cost This form is widely used by young people because of its convenience and speed without having to wait in line.

III Factors affecting students' decision to use cinema services1 Income

Less than 2 million2-4 millionmore than 4 mil-lion

Figure: monthly income

According to the data obtained, it is clear that the monthly income of students has a difference of more than 4 million and from 2-4 million Income of less than 2 million among students, accounting for 32%, more than at more than 4 million (23%) of these students, who mainly fall into those who have worked part-time outside The income of birth has the highest percentage going in the range of 2-4 million (45%).

2 Taste

- What types of movies do you often watch?

There are many types of movies that are shown in theaters today we surveyed students 6 types of movies including action, comedy, fantasy, horror, romance and

animation The results show that action is the type of film that students choose to watch the most (85) Horror is also the type of film that students choose to go see when they come to the theater with 68 votes Comedy, romance and fantasy all had thesame number of votes, 57.50 and 47 respectively The genre of film that students would give the least priority to choosing was animation with only 6 votes by students.

- You know about cinemas, please tell us your opinion

Every student has a different opinion about cinema based on their point of view Those opinions are gathered by us and presented by the 2 charts below:

Chart Title

Buying tickets is quick, convenient and take less time05

Chart Title

In general, the opinions of students about cinema are almost the same With the exception of "the cinema is clean and spacious" which received a higher Strongly disagree than the rest, 9 votes This can be clearly seen when young people using food services at the theater can dirty the floor or seats, leading to the next customer enteringthe next movie feeling uncomfortable.

3 Price

The ability to pay for the need to go to the movies of the group of students at Banking Academy:

The sum of money that students are willing to spend for each movie ticket purchased.

70,000 - 150,000160,000 - 250,000More than 250,000

According to the results of the group's survey:

Because the survey is aimed at students, the majority of their expenditure on movie theater services is between 70,000 and 150,000 VND per visit (63%) This is a popularsector with reasonable prices that is appropriate for students with low finances The remaining pupils are willing to pay greater costs, with 7% having the ability to spend more than 250,00 VND.

4 Related goods

The sum of money that students are willing to spend forrelated goods

50,000 -150,000 VND160,000 - 250,000 VNDMore than 250,000 VND

Willing to pay for some related products when watching movies

Yes MaybeNo

When going to cinemas, most of the students will be willing to pay extra for related goods such as popcorn, drinks, souvenirs, so on (68%) However, 6% of peopleonly watch movies and no additional payment for other goods

In addition, students will consider the price of related goods before deciding to buy or not According to the survey results, 50,000 - 150,000 VND is the average amount thatstudents spend when choosing to buy more; some of them are willing to pay more (from 160,000 to more than 250,000 VND)

To meet demand, cinemas need to have a wide variety of snacks and drinks, and adjusting snack prices will also help boost revenue.

IV Proposing solutions to improve service quality

To support the understanding of students' need to watch movies in theaters, our team conducted a survey and analyzed students' behavior in deciding to choose to watch movies in theaters Thereby, the group has proposed solutions for businesses about customer needs The solution revolves around the problems: price, product features and marketing.

1 Price

According to the findings, the price has the greatest influence on students' decision to watch movies Most students are cautious to purchase a product with a high price relative to their capacity to pay, and they are also hesitant to purchase low-priced things for fear of poor quality As a result, when it comes to movies targeted towards students, the price must come first.

The majority of the data gathered comes from students Because their economiclevel is partly dependent on their parents, their spending on entertainment is still low In that case, most students agree to spend less than 150,000 VND for a movie providedtheir conditions are met Since then, cinemas in development have had to maintain their prices below 150,000 VND This will help customers feel more comfortable while selecting movies and will improve the customer experience when choosing merchandise.

2 Products

According to the study results, students are frequently interested in movie content and movie ratings Most students prefer watching action and horror movies, while just a minority dislike watching animation.

The huge screen, ticket price, seats, good service, online payment service, and various promotions all have a significant impact on the student's choice of theater The remaining products have an effect, perhaps to a lesser extent The following particular solutions are proposed by the group:

With a young audience in consideration, theatres should screen action and horror films first, followed by comedy, romance, and fantasy films Reduce the number of cartoons or display them only on special occasions.

Pay close attention to the demands of the consumers The crisp wide screen has a significant impact on the movie's quality Because the majority of students seemovies in cinemas for amusement, they require nice seats and service.

Secure online payment services are required The majority of students use wallets Online payment is both convenient and simple There are no long lines,and tickets can be purchased on the website.

e-More promotions, because most Vietnamese people enjoy receiving them This may encourage pupils to go to the movies.

3 Marketing

One of the major influences on movie selection decisions is brand or community reviews, and the impact is even greater if students are using them Connecting to social networks is no longer strange to young people, and a fairly common habit of moviegoers today is to look up movie names on the Internet or socialnetworks to see the actors of the movie, movie content, interactions, and reviews from previous moviegoers This is the way that most young people do it to strengthen their faith when they want to watch any movie Therefore, when creating a film production facility, the role of communication and marketing is not small Producers must have anonline communication channel (Facebook, Instagram, Zalo, website, etc.) to convey relevant content about the film, its story, and the value it brings This will boost users' motivation to watch movies.