Case Pegasus

Topics: Airline, Low-cost carrier, Southwest Airlines Pages: 3 (650 words) Published: November 21, 2013
Case Week 1: Pegasus Airlines
(40 points)

Please read the case on page 36-37 and answer the following questions: Question 1: Give examples of the needs, wants and demands that Pegasus customers demonstrate, differentiating these 3 concepts. What are the implications of each for Pegasus’ practices? (10 points) -------------------------------------------------

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Examples of needs: Pegasus’ customers need diversification. examples of wants: Customers are willing to improve the airline company and reflect their opinions, mostly by the website “Pegasus listens to you”. examples of demands: low-cost flights, choice between many destinations , good quality services, and discounts and other benefits for the customers.

The implications of each for Pegasus’ practices are based on the orientation on customers. So, they want to satisfy their customers and meet their expectations.

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Question 2: Describe in detail all the facets of Pegasus’ product. What is being exchanged in a Pegasus transaction? (10 points) -------------------------------------------------

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Pegasus sells customers a product, a ticket for a flight. Since it is a low-cost airline company, the tickets are not very expensive and compared to other airline companies the tickets are cheap. But Pegasus is not a company with low quality service like most other low-cost airline companies, they in fact focus on satisfying their customers. So besides the flight they give the customers all kind of discounts and benefits. For example they have: a credit loyalty card to reduce insurance rate, have a refund strategy for when departure is delayed, give away free tickets for winners of events on social networks. Also the company really meets the customers’ expectations and the company improves itself by listening to the customers’ voice....
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