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Cheapo Air a 33% reduction in the number of seats available on each flight. Business customers business market is less competitive than the low cost market. The business market is of all their aircrafts which would involve large capital expenditure. The change would mean get a flight and little more. relatively price inelastic. QUESTIONS: 1. Investigate and analyse the impact of price changes on profitability if Cheapo Air decides to move from low coast airline to the market for business customers 2. Analyse THREE factors that CA would need to consider in setting a price for their business custorners. 3. Analyse the possible source of finance available to Cheapo air for the capital expenditure. 4. Analyse THREE factors that CA would need to consider when deciding which prtcis strategy to use.

Cheapo Air a 33% reduction in the number of seats available on each flight. Business customers business market is less competitive than the low cost market. The business market is of all their aircrafts which would involve large capital expenditure. The change would mean get a flight and little more. relatively price inelastic. QUESTIONS: 1. Investigate and analyse the impact of price changes on profitability if Cheapo Air decides to move from low coast airline to the market for business customers 2. Analyse THREE factors that CA would need to consider in setting a price for their business custorners. 3. Analyse the possible source of finance available to Cheapo air for the capital expenditure. 4. Analyse THREE factors that CA would need to consider when deciding which prtcis strategy to use.

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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FORMAL ASSESSM. a 33% reduction in the number of seats available on each flight. Business customers In order to restore profit margins, the Board of CA are considering changing from the low cost market to the market for business customers. CA would need to change the interiors business market is less competitive than the low cost market. The business market is of all their aircrafts which would involve large capital expenditure. The change would mean | Cheapo Air pet a flight and little more. relatively price inelastic. QUESTIONS: Investigate and analyse the impact of price changes on profitability if Cheapo Air 1. decides to move from low coast airline to the market for business customers. 2. Analyse THREE factors that CA would need to consider in setting a price for their business custorners. 3. Analyse the possible source of finance available to Cheapo air for the capital expenditure. 4. Analyse THREE factors that CA would need to consider when deciding which prtcina strategy to use.
Transcribed Image Text:FORMAL ASSESSM. a 33% reduction in the number of seats available on each flight. Business customers In order to restore profit margins, the Board of CA are considering changing from the low cost market to the market for business customers. CA would need to change the interiors business market is less competitive than the low cost market. The business market is of all their aircrafts which would involve large capital expenditure. The change would mean | Cheapo Air pet a flight and little more. relatively price inelastic. QUESTIONS: Investigate and analyse the impact of price changes on profitability if Cheapo Air 1. decides to move from low coast airline to the market for business customers. 2. Analyse THREE factors that CA would need to consider in setting a price for their business custorners. 3. Analyse the possible source of finance available to Cheapo air for the capital expenditure. 4. Analyse THREE factors that CA would need to consider when deciding which prtcina strategy to use.
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