Asked by Nicole Mowatt on May 04, 2024
Verified
In the airline industry, companies like American, Delta, and US Air have a difficult time competing because their industry has become commoditized. What does this mean for firms in the airline industry?
A) Airline firms compete in a declining industry.
B) Airline customers have become increasingly demanding.
C) There is very little differentiation among product offerings in the industry.
D) The industry experiences very little change over time.
E) Airlines have been forced to develop partnerships to remain competitive.
Commoditized
When a product becomes indistinguishable from others like it on the market and competes mainly on price.
Differentiation
The method of differentiating a product or service to make it appeal more to a specific target audience.
- Gain insight into the constituents of the marketing mix and their relevance.
- Learn about the updated marketing realm, including the development of metamarkets and the hurdles of conducting commerce electronically.
Verified Answer
DS
Dominic SantafemiaMay 11, 2024
Final Answer :
C
Explanation :
Commoditization in an industry means that the products or services offered by different companies are seen as interchangeable by consumers, leading to very little differentiation among product offerings. This is a common challenge in the airline industry, where many customers base their purchase decisions primarily on price and schedule, rather than brand loyalty or perceived differences in service quality.
Learning Objectives
- Gain insight into the constituents of the marketing mix and their relevance.
- Learn about the updated marketing realm, including the development of metamarkets and the hurdles of conducting commerce electronically.
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