FORMAL ASSESSM.a 33% reduction in the number of seats available on each flight. Business customersIn order to restore profit margins, the Board of CA are considering changing from the lowcost market to the market for business customers. CA would need to change the interiorsbusiness market is less competitive than the low cost market. The business market isof all their aircrafts which would involve large capital expenditure. The change would mean| Cheapo Airpet a flight and little more.relatively price inelastic.QUESTIONS:Investigate and analyse the impact of price changes on profitability if Cheapo Air1.decides to move from low coast airline to the market for business customers.2.Analyse THREE factors that CA would need to consider in setting a price for theirbusiness custorners.3.Analyse the possible source of finance available to Cheapo air for the capitalexpenditure.4.Analyse THREE factors that CA would need to consider when deciding which prtcinastrategy to use.

1.) The profitability of Cheapo Air (CA) will gradually increase after going from a low-cost airline…

Answered: Cheapo Air a 33% reduction in the…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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