Asked by Samantha Hicks on May 03, 2024
Verified
Jonni has just started with a travel agency and has been offering clients and prospective clients a range of packaged tours. She is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Andrew, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Andrew's approach is based on
A) transaction-oriented marketing.
B) premium pricing.
C) economies of scale.
D) special incentives from tour operators.
E) value cocreation.
Transaction-oriented Marketing
Marketing strategies focused primarily on making sales transactions rather than building long-term relationships with customers.
Premium Pricing
A competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter.
Economies of Scale
Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.
- Comprehend the principle of value co-creation within marketing dynamics.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
E
Explanation :
Andrew's approach is based on value cocreation, where he involves the clients in the process of creating their own tour packages based on their suggestions and preferences. This approach leads to customized and unique experiences for each client, which can justify higher prices and ultimately result in greater commissions for the travel agency.
Learning Objectives
- Comprehend the principle of value co-creation within marketing dynamics.