Effective marketing research follows the six steps shown in Figure 4.1. We illustrate them in
the following situation.8
American Airlines (AA) was one of the first companies to install phone handsets on its
planes. Now it’s reviewing many new ideas, especially to cater to its first-class passengers
on very long flights, mainly businesspeople whose high-priced tickets pay most of the
freight. Among these ideas are: (1) an Internet connection primarily for e-mail but with
some limited access to Web pages, (2) 24 channels of satellite cable TV, and (3) a 50-CD
audio system that lets each passenger create a customized in-flight play list. The marketing
research manager was assigned to investigate how first-class passengers would rate
these services, specifically the Internet connection, and how much extra they would be
willing to pay for it. One source estimates revenues of $70 billion from in-flight
Internet access over 10 years, if enough first-class passengers paid $25. AA could thus recover
its costs in a reasonable time. Making the connection available would cost the airline
$90,000 per plane
Effective marketing research follows the six steps shown in Figure 4.1. We illustrate them in
the following situation.8
American Airlines (AA) was one of the first companies to install phone handsets on its
planes. Now it’s reviewing many new ideas, especially to cater to its first-class passengers
on very long flights, mainly businesspeople whose high-priced tickets pay most of the
freight. Among these ideas are: (1) an Internet connection primarily for e-mail but with
some limited access to Web pages, (2) 24 channels of satellite cable TV, and (3) a 50-CD
audio system that lets each passenger create a customized in-flight play list. The marketing
research manager was assigned to investigate how first-class passengers would rate
these services, specifically the Internet connection, and how much extra they would be
willing to pay for it. One source estimates revenues of $70 billion from in-flight
Internet access over 10 years, if enough first-class passengers paid $25. AA could thus recover
its costs in a reasonable time. Making the connection available would cost the airline
$90,000 per plane
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