Mkt Case Study South East Airline

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Topics: Airline
Southwest Airlines: Staying ahead in the pricing Game

Q1 what has been Southwest’s traditional pricing strategy? Why has this pricing strategy been so successful thought out the airline’s first three decades?
Answer 1 : Southwest pricing strategy was the complete opposite of the industry’s conventional wisdom. They gave more flexibility to move planes around based on demand. Pricing strategy was successful thought out the first 3 decades because they cost were very lower relative to other airlines. Southwest did not serve the major airports dominated by the major airlines. They serve no meals only snacks they did not charge passengers a fee to charge same for ticket they had no electronic entertainment and did not offer any retirement plan.

Q2 what values do airline customers- both business and leisure travelers – seek when they buy air travel tickets? Has southwest done a better job than competitors of meeting the needs of these air travelers? In what ways?
Answer 2: Both business and leisure travelers seek to buy a air ticket with lower price but at the same there are some business travelers who were often walling to pay higher prices if an air line offered last minute tickets assigned seating first class cabins and privet airport lounges none of which southwest had. Therefore southwest did not do a better job than competitors of meeting the needs these air traveler.

Q4 what is southwest’s current pricing strategy? Does this strategy differentiate southwest from its competitors? Is the strategy sustainable?
Answer 4: Southwest current pricing strategy was new for category. These fares are $30 to $50 higher for round trip ticket. The tickets however offer the customers preferential boarding bonus frequent credits and a free cocktail on each flight. They also offer more nonstop routes and more frequent flight that work with business traveler’s schedules.
As they charged their strategy they can attract more customers which shows that their strategy

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