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Maxims applied: Airlines, Bag Charges, and the Tactical Marketing Error they made.

Posted on: 05-Nov-2009

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Pricing is an economic force where Newton’s laws apply. Change a price and you’ll definitely get an opposite, if not equal reaction. After fuel prices soared in 2008, one of the ways airlines responded was to start charging for checked bags. This nudged their customers in ways that were quite predictable, yet problematic for airline operations and costly in customer satisfaction. The fact that the problems were easily predictable makes this pricing change a fundamental tactical error . . .

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About weQuest:
weQuest's are written by G Dan Hutcheson, his career spans more than thirty years, in which he became a well-known as a visionary for helping companies make businesses out of technology. This includes hundreds of successful programs involving product development, positioning, and launch in Semiconductor, Technology, Medicine, Energy, Business, High Tech, Enviorntment, Electronics, healthcare and Business devisions.

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