The global airline industry is experiencing cold season since the terrorist attack in 2001. Though china’s airline suffered less from the 9-11 effect, price hike of fuel has also plagued the industry. Moreover, in response to the entry of the WTO, Chinese government has phased out regulations upon airline industry and encouraged competition by introducing budget airline. To maintain competitive advantage and considerable profit margin as a domestic leading airline company, China Southern Airlines Co. Ltd. (CSA) needs to design a pricing strategy in accordance with the natures of the distinct markets. The principle of price elasticity of demand will help elaborating how different pricing tactics are applied to different market segments.

What is a Price Elasticity of Demand

The demand for a particular good or service varies depending on a number of factors, including the levels of consumer income, the tastes of consumers, the expectations of future price changes, and the......

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Title: The Effect Of Price Elasticity Of Demand In Airline Industry
Approximate Word Count: 1263
Approximate Pages: 6 (250 words per double-spaced page)

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