Budget- priced airlines have unbundled the airline service offering, stripping it right back to a basic seat with only a minimal baggage allowance. This product strategy has allowed budget airlines to charge consumers for "extras" such as refreshments, additional leg- room, check- baggage allowances, headsets, boarding passes, guaranteed window seats and in some cases reservations for seats next to each other in the case of families or couples travelling together. This pricing strategy is BEST described as:
A) optional product pricing.
B) offset pricing.
C) product- bundle pricing.
D) captive product pricing.
E) none of the above

Question

Quizplus · Accepted Answer

This pricing strategy is best described as optional product pricing because it involves charging fees for optional extras that are not included in the base price of the product, in this case, the basic airline seat.

Budget- Priced Airlines Have Unbundled the Airline Service Offering, Stripping