Describe the nature of service competition in the airlines
Primary service competition is on frequency and timing of flights. The premium flight departures are early morning (7AM to 10AM) and late afternoon (4PM to 6PM). The demand difference for flights taking off 3 hours later between the same city pairs is significant.
The airlines also compete through attempts to differentiate their service through advertising of amenities (e.g., on time arrival, friendliness, live satellite television, and frequent flyer programs).
Some airlines are competing through no-frills service (e.g., Southwest). They charge lower fares but there is also a lower level of service with respect to items like snacks and drinks. Additionally no frills typically has only one class of service.
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TeaTime, a manufacturer of tea, has a new product that is currently only available in stores located in China. Knowing that it has customers around the world, TeaTime advertises the product on its Facebook page and will ship the product to customers via FedEx until the product is made available for purchase in other stores worldwide. In this scenario, Facebook serves as a ______ element and FedEx serves as a ______ element in TeaTime's marketing mix.
A. promotion; place B. product; place C. promotion; product D. product; price
A buyer signed a purchase agreement that contained the words, "Buyer to accept property in 'as is' condition." There were defects in the electrical system that the seller knew of but that would not be apparent to an ordinary person; the broker did not disclose these defects. If the buyer sued the broker for fraud:
A. the buyer would prevail, since the duty to disclose latent defects is not affected by an "as is" clause B. the buyer would prevail, since "as is" only refers to obvious defects C. the broker would prevail, since the "as is" clause limits his liability D. the broker would prevail, despite the fact that the "as is" clause does not limit his liability, because the buyer did not have the electrical system inspected by an expert