22 Jan Some examples of pricing
MBAA514 Strategic Marketing Management in Aviation
Module 8 Discussion
Pricing
After you have watched the videos in Activity 8.1, discuss the following:
Pricing is extremely difficult for companies to get right. Not only does price provide revenue and enable a company to maximize profit, price also reflects the value of the product or service.
Some examples of pricing strategies are:
Premium Pricing: a high price for a product (e.g. Lexus or Ferrari)
Penetration Pricing: a low price to win market position (e.g. Walmart entering a new market)
Economy Pricing: a no-frills low price (e.g. Low-cost carriers)
Bundle Pricing: a combination package of products or services to increase sale or move inventory.
Select a product or service in the aviation industry. What pricing strategy/model is used? In your opinion, is it the correct one? Why or why not?
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