Module 1 Case Assignment Example | Topics and Well Written Essays - 750 words

Module 1 Case - Assignment Example The following factors are considered as the key external factors that affect the passenger airline industry: Security: Security measures are the prime concern for the airline industry. Security directly relates to the comfort level of the travelers, pilots and their families. Since the industry has managed to overcome the hindrances in security over the last decade, airlines will surely not be evidence for recklessness with regards to security. Volatile Operational Costs: Airline industry acquires huge cost of its operations which include the cost of airplanes, equipments, salaries of staff, insurance of products and passengers that are transported, and hiring of business sites within the premises of the airport. Fuel volatility: As the only most significant cost, fuel is highly influential factor that can affect the prices and supply of fuel. The fuel policies may impact the supply decisions by suppliers, expansion of refineries by government and oil companies. This ultimately leads to rising in fuel prices and devastating effects on the airline sector. According to Sarabia (1996), segmentation is referred, as the way to identify, assess and choose homogeneous groups. Segmentation is extremely essential as it distinguishes the customers with similar characteristics and needs which make them react in the same way to product features or marketing process. (Mullins & Walker Jr., 2010, p. 180). The ways to segment the market are based on socioeconomics, demographics, personality (lifestyle), geographic location, the purchase pattern, purchase event, wanted benefits, approach towards product and spending pattern. The major market segments are: First class: This segment deals with upper class of the market only in which passengers are provided with personalized services with supreme quality and privacy. The people from this class desire to have quality services and products without considering the amount of money it can take. They are usually