Hi, need to submit a 250 words essay on the topic Article summary.
company that lowers the price of its tickets will affect not only its own profitability but also the profitability of its competitors since a lower price will influence consumers’ decision making” (p.490). This way, this article relates to the concept of best-cost strategy. We know that best-cost strategy enables the producer to provide value-added products to consumers by lowering the prices and enhancing the value of the product. Unlike low-cost strategy, best-cost strategy focuses on a broader market and adds value to the product. Poh and Mohayidin (2011, p.494) state that “Value is what buyers are willing to pay and superior value stems from offering lower price than competitors for equivalent benefits.” This means that consumers will prefer to travel on that airline which has low ticket prices but provides the similar or even greater benefits than other competitor airlines. Here comes the concept of best-cost strategy. Airlines adopting the best-cost-strategy will attract more consumers in the broader market as it eliminates customer changing preference behavior and enhances image positioning of the service provider.
Poh, L.S., & Mohayidin, M.G. (2011). Competitive pricing strategies of low cost airlines in the perspective of game theory. International Conference on Sociality and Economics Development , 10, pp. 490-494. Retrieved March 12, 2014, from