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Marketing is the study of educating consumers about the use and benefits of a product or service and involves methods of persuasive communication

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khanarman9281 asked for the first time

Critical Thinking Case
WILL A NEW RESERVATION SYSTEM TRANSLATE TO HIGHER PRICES FOR 
TRAVELERS?
American Airlines, one of the top three airlines in the United States and a major international 
carrier via strategic alliances with leading carriers around the world, was founded in 1930 as 
American Airways. As an innovative leader in air travel, American Airlines started the frequent 
flyer program in 1981. Since then, every major airline in the world has adopted some form of a 
frequent flyer program. In late 2010, American Airlines once again took the lead in an airline 
initiative that could change the way consumers search for and ultimately purchase airline tickets.
In an eff ort to reduce distribution costs, gain greater control over the marketing of its airline 
tickets, and better meet customer expectations, American Airlines upgraded its reservation system. 
In making the upgrade, the company expected third party travel operators such as Expedia, Orbitz, 
and Priceline to follow suit. The Reservation System Consumers want low fares while also having 
the ability to customize their itineraries. Plus, they want to do this themselves and not have to go 
through a travel agent. Via an in-house reservation system called Direct Connect, American 
Airlines will be able to present a variety of individualized options to consumers, including prices, 
fl ight schedule, seat upgrades, lounge access, faster check-in, hotel reservations, and car rentals. 
Direct Connect constitutes a wholesale shakeup of the traditional reservation process that has relied 
historically on global distribution systems (GDS) such as Amadeus, Sabre, Worldspan, and 
Galileo. All of these global distribution systems were designed originally by airlines, but all are 
now operated by independent owners. Middlemen such as Expedia and Orbitz conduct business 
via a GDS and do not want to upgrade their reservation systems to models such as Direct Connect. 
However, the Direct Connect technology will enable airlines to bypass the GDS and avoid paying 
the GDS fees. Airlines stopped paying commissions to travel agents in the 1990s, but the GDS 
model enables travel agents to sell tickets and collect fees from the sale of tickets via the GDS. 
The Dispute In December of 2010, American Airlines announced that it would no longer do 
business with Orbitz. By making this move, Orbitz could no longer sell American Airlines tickets 
on its online booking Web site. At the heart of the dispute was that American Airlines wanted 
Orbitz to use Direct Connect instead of GPS. Orbitz refused to switch reservation processes, so 
American Airlines withdrew its tickets. Beating American Airlines to the punch, Expedia 
announced on January 1, 2011 that American Airlines tickets were no longer an option on 
Expedia.com. Following suit, Sabre dropped American Airlines’ ranking on its site thus making it 
difficult to find American Airlines fares on this GDS. Some say that the bottom line is that 
American Airlines wants travelers to buy directly from its Web site, such as the process utilized 
by Southwest Airlines. From a pricing perspective, the middlemen such as Orbitz and Expedia say 
that this will allow American Airlines to raise ticket prices since customers will not have easy 
access to competitive pricing information. These distributors are charging that American Airlines’ 
new Direct Connect model is anti consumer and anti-choice. Conversely, American Airlines says 
that it will enable lower ticket prices since it will eliminate the cost of the middleman, contending 
that the GDS model used by online travel agencies prevents airlines from offering the lowest 
possible fares. The chief financial officer at US Airways said that his company agreed in principle 
with what American Airlines was doing, citing the importance of lower airline distribution costs. 
Yet this competitive airline recently entered into an agreement with Expedia in which US Airways 
committed to offering all of the airline’s content on Expedia through the GDS model. It could be 
that competitive rivals see this as an opportune time to appear more customer-friendly, in the hopes 
of gaining customer affinity while American Airlines battles it out with the middleman. 
Questions 
1. Identify each channel member’s pricing objective. 
2. What is American Airlines’ pricing strategy?

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dr.sobhi1987 asked for the first time
in Marketing·
8 Oct 2021

You have applied for a managerial position as a Business Development Manager in a large retail organisation. 

Following shortlisting you have been asked to attend for interview. Prior to the interview you need to send in a written portfolio which will help the interview panel to establish your suitability for the post.

Task 1 – Written Portfolio

You must prepare a portfolio of evidence which includes:

  • an analysis of the characteristics of different organizational structures
  • an explanation of how the culture of an organization can impact on the effectiveness of the organization
  • an assessment of the impact of learning on the effectiveness of employees
  • an evaluation of how working in teams can improve employee effectiveness.
  •  

Extension activities:

To gain a merit grade you must also include in your portfolio analysis of:

  • how different leadership behaviors impact on organizations.

To gain a distinction grade you must also include in your portfolio analyses of:

  • the process and outcomes of change on the effectiveness of employees.

 

Task 2

You know that questions from the panel will ask for your views on certain management theories.  In preparation make detailed notes which:

  • evaluate different leadership behavior theories
  • analyze theories relating to work relationships and interactions.

 

Extension activities:

To gain a merit grade you must:

  • evaluate the relevance of organizational culture theory in developing organizational effectiveness.

 

Task 3 – Presentation with accompanying notes

You are to make a presentation to the interview panel as part of the selection process. You should prepare a presentation with accompanying notes which shows how organizations can motivate employees in order to improve their efficiency and effectiveness. 

 

In the presentation and the accompanying notes, you must:

  • analyze the benefits and issues with involving employees in organizational decision making
  • explain different ways to motivate employees.

 

Extension activities:

To gain a merit grade you must provide an accompanying handout for distribution to each member of the panel.   The handout must:

  • analyze how motivational theory can inform employee motivation.

To gain a distinction grade, using a business organisation of your choice, you must:

  • evaluate how a named organisation of your choice motivates its employees.

 

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pucescorpion158 asked for the first time
in Marketing·
10 Jun 2021

In a few years, British Sky Broadcasting has transformed the way people in Britain watch and use their television. Before Sky, people could never have imagined ordering a pizza or sending an email from their set. Today it’s an accepted thing.

Part of Sky’s success has been in its brand - in defining what makes Sky special and in expressing that difference visually, in products and in the actions of people in the company. And that brand has become one of the company’s greatest assets. Brands help companies build a relationship with a customer. A good brand not only helps differentiate a company, it also helps the customer feel something as a result. A pair of Nike trainers might make a person feel more fashionable. A Sony minidisc player might make a person feel they are at the cutting edge of miniature technology. A Rolls Royce might make a person feel that they have reached the top.

Some brands even go beyond that and become so well known that they become generic. This means they’re used as a general term for that type of product, even if it’s a competitor’s product. Walkmans and Hoovers are a good example. People Hoover the carpet, even if they’re really using an Electrolux.

A brand helps customer recognition and enables recognition to be spread by word of mouth as well as by advertising. A brand also adds value. It can allow a company to offer its products at a premium, without reducing the customers’ perception of value for money. It also allows a company to extend what they offer to the customer - if a customer trusts one product from that company, they are more likely to trust (and buy) another product from the same company.

That is why Sky has invested so much in its brand. As the first entrant 16 years ago in the field of multichannel television, it had the opportunity to build strong recognition and to even establish itself as the generic brand for multichannel television.

Source:  (viewed 10 February 2019)

QUESTIONS

  1. In the above article, “if a customer trusts one product from that company, they are more likely to trust (and buy) another product from the same company”. Discuss different ways that companies can use to increase brand loyalty. Justify your answers with relevant examples. 
  2. In the above article “brand has become one of the company’s greatest assets”. Do you agree? Justify your answers with arguments and examples.

 


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