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Why airlines sell stand-by tickets for so much less

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Reference no: EM131462888

In other words, you MAY USE the book, the videos, your notes, and other sources, but WRITE YOUR ANSWERS IN YOUR OWN WORDS.  Any two papers submitted with word-for-word answers will both be scored as zero points.

1. From our class discussions on pricing (Chapters 10 and 11), explain the importance of Long Run Average Cost (LRAC), and the importance of the reservation price of the segment that values the product the most, when a firm is setting long term prices.

2. Explain the need to have a product that is difficult to copy, when embarking upon a market skimming strategy.

3. Explain the terms, "cost-based pricing" and "value-based pricing."  Relate them to the selling concept and the marketing concept.

4. Explain why Rolls Royce doesn't sell their cars in a lot more dealerships, like Ford and Chrysler do.

5. Explain why airlines sell stand-by tickets for so much less than the price of regular tickets.

Reference no: EM131462888

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