Question
Scoot offer very attractive fares for travel within the region. To make up for revenue lost in reduced ticket prices, the airline charges for extras
Scoot offer very attractive fares for travel within the region. To make up for revenue lost in reduced ticket prices, the airline charges for extras like food, priority boarding, seat selection, checked-in baggage and use of credit card. For example, Scoot charges $20 convenience fee per ticket for use of credit card but this amount is waived if one is a cardholder of UOB KrisFlyer credit card. What pricing structure and psychological influence are in play?
A. Add-on pricing and Prospect Theory.
B. Yield management and end benefit effect.
C. Bundle pricing and network externalities.
D. Two-part tariff and signpost effect.
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