Shanghai-based Spring Airlines is a start-up service with a tight budget. Spring Airlines's owner boasts that his ticket prices are 40 percent cheaper than the competition's, at times even the same as train prices. Which method for pricing services is Spring Airlines most likely using?

Question

Quizplus · Accepted Answer

Spring Airlines is likely using patronage-oriented pricing, which involves setting prices based on the willingness of customers to pay, often to attract more customers by offering lower prices compared to competitors.

Shanghai-Based Spring Airlines Is a Start-Up Service with a Tight