Pricing is complicated for companies to get right. Not only does price provide revenue and enable a company to maximize profit, butthe price also reflects the value of the product or service.

Some examples of pricing strategies are:

• Premium Pricing: a high price for a product (e.g., Lexus or Ferrari)
• Penetration Pricing: a low price to win market position (e.g., Walmart entering a new market)
• Economy Pricing: a no-frills low cost (e.g., Low-cost carriers)
• Bundle Pricing: a combination package of products or services to increase sales or move inventory.

Choose a product or service in the aviation industry. What pricing strategy/model is used? In your opinion, is it the correct one? Why or why not?