Cheapair is a low cost airline which achieved considerable success in the market by offering single class travel at very competitive prices. The company stressed that the value of the basic product was in its affordability, and that no ‘extras’ would be offered unless the customer was prepared to pay for them. Cheapair adopted a confrontational approach to customers who complained, sometimes ignoring their complaints and even occasionally refusing to offer refunds to which customers were legally entitled.After major shareholders raised serious concerns about the company’s attitude to customers at a stormy Annual General Meeting, Cheapair decided to change its approach and sought to align itself more with the demands of customers.The change in policy of Cheapair is an example of which of the ‘four Ps’ of innovation? ParadigmProductProcessPosition
Question
Cheapair is a low cost airline which achieved considerable success in the market by offering single class travel at very competitive prices. The company stressed that the value of the basic product was in its affordability, and that no ‘extras’ would be offered unless the customer was prepared to pay for them. Cheapair adopted a confrontational approach to customers who complained, sometimes ignoring their complaints and even occasionally refusing to offer refunds to which customers were legally entitled.After major shareholders raised serious concerns about the company’s attitude to customers at a stormy Annual General Meeting, Cheapair decided to change its approach and sought to align itself more with the demands of customers.The change in policy of Cheapair is an example of which of the ‘four Ps’ of innovation? ParadigmProductProcessPosition
Solution
The change in policy of Cheapair is an example of 'Paradigm' of the 'four Ps' of innovation. This is because a paradigm refers to a change in the underlying mental models which frame what the organization does. In this case, Cheapair changed its approach from being confrontational to aligning more with the demands of customers.
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The author probably wrote this article to __________.A.Tell readers about a company that manufactures model airplanes today as a way to inform the public about air travel and its many conveniencesB.Suggest that model airplanes, which are scaled to one hundredth of the size of a jet and range in price from $130 to $1,500 each, are a waste of moneyC.Recommend that aircraft manufacturers be more aggressive about making final sales before offering models of their airplanes to airline executivesD.Highlight the unique way in which air travel executives around the world do business by exchanging model airplanes instead of business cardsSUBMITExtras© 2024 Achieve3000 Inc. and its licensors.All Rights Reserved.
Explain one reason why airlines use dynamic pricing, especially when selling tickets to online customers.
Pricing StrategiesProductA: Competition-based pricing1. GroceriesB: Customer value-based pricing2. Airline ticketsC: Cost-based pricing 3. Luxury goods
Airlines and hotels have long offered weekend discounts and off-season rates to influence demand TRUE False
Initially how did they come up with a price?Group of answer choicesless than their costs to get into the marketmore than their competitors since they delivered as wellThey made up a numberjust enough to cover their costs
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