4 ms·
I'm not sure if this translates to all industries but consider airlines. Everyone complains about service, but the marginal flyer only cares about price. Ther
by JackFr 4y ago
I'm not sure if this translates to all industries but consider airlines. Everyone complains about service, but the marginal flyer only cares about price. There is no reward for an airline offering better service at a price in economy. Fully half the plane (and more on discount airlines) buy only based on price. The story is different in the front of the plane, where margins are higher and business travelers will end up being brand loyal (and are treated accordingly.)
In other products I can only assume there has been a similar race to the bottom. Why should I pay up for some service if it's a roll of the dice that I will be treated any better? Unless I really trust a brand, and I can't know, I 'm going to end up differentiating on price alone.