SCENARIOS
Continental Lite
In the mid-1990s,Continental Airlines chose to compete head-on with Southwest Airlines by launching Continental Lite,an alternative low-fare commercial airline passenger operation.Top executives at Continental had expected its no-frills operation to break even within a year of its inception,but the airline fell short of the goal.A source close to the company explained it by saying,"Its costs were too high,and its revenues were too low." Some observers criticized Continental's marketing efforts.When the no-frills service was first launched,it lacked a distinct name or identity,missing its chance to make a splash.Then Continental tried to sell three "brands" at once--Lite,a new premium service,and its more traditional long-haul domestic flights.As one rival expressed it,"You cannot be all things to all people."
-Refer to Consumer Buying Habits.Assume a product has a strong brand name,a reasonable price,and good quality.Which of the following strategies should NOT be implemented?

Question

Quizplus · Accepted Answer

Lowering the price is not recommended as the product already has a reasonable price. This could potentially reduce profit margins and not necessarily increase sales significantly. The other strategies such as improving product quality, upgrading packaging, offering better variety, and increasing promotional efforts can all contribute to increasing sales and strengthening the brand.

SCENARIOS Continental Lite