Chapter 10

Question 1

What are the 4 P’s?

Answer 1

Product
Place
Price
Promotion

Question 2

Unique characteristics of airline products:

Answer 2

1. The product cannot be kept in inventory to match fluctuations of demands
2. The quality of service is based on personal experience
3. There is no replacement for a bad product
4. The product cannot be checked before the final sale
5. Delivery service isn’t 100% guarantee
6. Service can be produced in batches and not an individual unit

Question 3

What is price determined by?

Answer 3

Supply and demand

Question 4

What is the major competitive variable after deregulation?

Answer 4

Price

Question 5

What are the 2 most important forms of promotion?

Answer 5

Advertising and selling

Question 6

What does place include?

Answer 6

All institutions and activities that contribute to delivering the product at the time and placed the customers desire

Question 7

Place of sales outlet:

Answer 7

1. Field city and centralized reservation center
2. Other sales office
3. Travel agents

Question 8

Concept behind consumer oriented marketing

Answer 8

Design the product based on the needs of consumers

Question 9

Consumer oriented concept targets 2 analysis:

Answer 9

Market segmentation

Intensive growth strategies

Question 10

Market segmentation

Answer 10

Process of dividing potential customers for a product into market segments

Question 11

Market segmentation characterized groups

Answer 11

Group travel 
Funeral travel
Educational travel
Religious travel
Military travel
Mercantile travel

Question 12

Intensive growth strategies

Answer 12

Promotional fares
Product development for satisfaction
Market development

Question 13

Marketing strategies after deregulation

Answer 13

Economies of scope and economies of scale

Question 14

What is economies of scope?

Answer 14

Function for airlines to serve as many points as possible

Question 15

What is economies of scale?

Answer 15

Function for airlines to serves as many flights as possible