Air Transportation Systems Final Exam

Product - 1
ï‚· Product purchased by customers encompasses functional,
psychological, and aesthetic features as well as convenience,
reliability, and so forth.
ï‚· A “product” of airlines includes safety, on-time reliability,
convenience, seat availability, cabin and ground service, etc.
ï‚· The airline marketing analysts discuss product differentiation for
targeting specific customers.
Product II
ï‚· The delivery of airline services is never 100% guaranteed due to
several uncontrollable causes such as mechanical problems and
weather.
ï‚· The services offered by an airline can be produced only in batches,
as opposed to individual units.
ï‚· Airline have to offer better qualitative and quantitative service to
passenger > to enhance company’s image
Price
ï‚· Price became one of the most volatile areas for post - deregulation
airline competition.
ï‚· Price remains the major competitive variable after airline
deregulation.
ï‚· Price is primarily determined by two economic factors: demand and
supply.
Promotion - 1
ï‚· Activities that support the visibility and availability of an airline’s
services
ï‚· Promotion is executed through two main functional activities,
namely:
ï‚· Advertising: non-personal selling of a service
ï‚· Personal selling: involves personalized approach to promoting an
airline’s services
Promotion - 2
ï‚· Sales personnel play an important role in marketing current
promotional fares and tours to particular agents.
ï‚· The major goal of promotion is to let the customers in target
markets know that the carrier’s service are available at the right
time, right place, and right price