Principles of Marketing (16th Edition)
Principles of Marketing (16th Edition)
16th Edition
ISBN: 9780133795028
Author: Philip T. Kotler, Gary Armstrong
Publisher: PEARSON
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Chapter 10, Problem 10.21CC
Summary Introduction

Case summary: Company S airlines are inexpensive. It is less expensive by a wide margin than some other airlines in Country U. It accomplishes such low costs by stripping out all highlights and services from its flight services with the exception of the essential "seat on a plane." Additionally, anything that the customers need, the airline charges an expense for.

While this has vexed numerous travellers as they are charged for things they did not hope to pay for, most travellers are okay saving money and getting less. Consequently, Company S is taking off so far as development and profits are concerned.

Characters in the case: Company S, Country U.

To discuss: The reasons on whether Company S’s pricing strategy sustainable.

Cost-based pricing includes setting prices dependent on the expenses of creating, dispensing and selling the product in addition to a reasonable rate of return for the organization's exertion and risk. An organization's costs might be a significant component in its pricing strategy.

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