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Essay

American Airlines

Essay specific features

 

Issue:

Business

 

Written by:

Kevin S

 

Date added:

April 7, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1577

 

Was viewed:

3428 times

 

Rating of current essay:

 
Essay content:

The company had to change its incentives and compensation scheme to be in line with this new form of pricing. The costs of communicating with, educating, and convincing customers were even larger. In April 1992, American Airlines launched "Value Pricing" -- a radical simplification of the complex pricing structure that had evolved over more than a decade following deregulation of the U...
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domestic airline industry. American expected that the new pricing structure would benefit consumers and restore profitability to both American and the industry as a whole. The critical issue raised is: Would American's bold initiative work? issues encountered in exercising price leadership to switch industry practice from a complex structure of differential prices and promotions to a simplified, everyday-low-pricing structure...
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