Various studies have found that airlines utilize very interesting pricing techniques for their flights. Ticket prices are lower when purchased far in advance in order to encourage early sales. Ticket prices are also cheaper if a person is willing to fly at odd hours. Additionally, weekend flights are cheaper while weekday flights (when business travelers fly) tend to be more expensive. Student discounts are not a commonly used pricing technique.  a. What do these interesting pricing strategies attempt to achieve? They base group discounts on easy-to-change characteristics. They separate groups based on how their supply decisions differ. They induce customers to sort themselves into groups reveal their reservation price. They segment the market using group pricing. b. Why do you think student discounts are not offered frequently? Students are a target segment that airlines need to distinguish. An airline cannot prevent a student from reselling their ticket. Airlines cannot afford to offer student discounts.  Students are not a target segment that airlines need to distinguish. c. Sort the differing purchase habits into the bins that represent the revealed customer type. You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Price Sensitive     Price Insensitive

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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Various studies have found that airlines utilize very interesting pricing techniques for their flights.

Ticket prices are lower when purchased far in advance in order to encourage early sales. Ticket prices are also cheaper if a person is willing to fly at odd hours. Additionally, weekend flights are cheaper while weekday flights (when business travelers fly) tend to be more expensive. Student discounts are not a commonly used pricing technique. 

a. What do these interesting pricing strategies attempt to achieve?

They base group discounts on easy-to-change characteristics.

They separate groups based on how their supply decisions differ.

They induce customers to sort themselves into groups reveal their reservation price.

They segment the market using group pricing.

b. Why do you think student discounts are not offered frequently?

Students are a target segment that airlines need to distinguish.

An airline cannot prevent a student from reselling their ticket.

Airlines cannot afford to offer student discounts. 

Students are not a target segment that airlines need to distinguish.

c. Sort the differing purchase habits into the bins that represent the revealed customer type.

You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop.

Price Sensitive
 
 
Price Insensitive
 
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