An airline runs a 6-month promotional program where all baggage fees are waived. It is using a cost-based pricing strategy.

Question

Quizplus · Accepted Answer

The promotion of waiving baggage fees implies a revenue-based pricing strategy, as the airline is likely hoping to attract more customers and generate more overall revenue. Cost-based pricing would involve setting prices based on the costs of producing and delivering the service with a desired profit margin.

An Airline Runs a 6-Month Promotional Program Where All Baggage