Word: pricing
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...question is whether it's better to pass on that cost via a baggage surcharge, rather than a ticket price hike. In terms of consumer psychology, the bag option may indeed be the lesser evil. On ticket-buying websites, extra fees are often not quoted in the initial price displayed to customers - only later, as they're completing their purchase. Given the advantage airlines gain by scoring better in online searches, "a price increase is a far riskier decision than going with this type of fee," says Larry Compeau, a marketing professor at Clarkson University. As Seaney puts it: "Airlines...
...carries its own risks, since the the new fee will be painfully apparent to flyers every time they check in. "They've done something that violates what consumers will be expecting," says Derek Rucker, an assistant professor of marketing at Northwestern University's Kellogg School of Management, "The lower price gets the consumer to you, but [the baggage fee] might leave a more bitter taste in their mouth...
...Wright and Wrong Finally, clarity on the Jeremiah Wright issue from Joe Klein [May 12]. Obama's rise promises a departure from the country's troubled wars over culture and race. Yes, Wright has done great things, but at a hefty price: despair and hopelessness about racism. People like Wright should be afraid of Barack Obama and his promise of change. Joseph Morriss, Chicago...
...working in the oil sands complains about the big paychecks, but beyond the project a serious backlash is growing against the economic and environmental pressures that come with maxing out oil production. A shortage of housing in Fort McMurray has pushed the price of an average home to more than $600,000. Two-bedroom apartments rent for about $3,500 a month. "The tar sands are being developed in an unsustainable fashion from virtually every point of view," says Jack Layton, leader of the New Democratic Party...
...rookie rigger on Black Gold. The class difference lies in the attitude toward money. TV doctors and lawyers don't talk salary--they, like many upper-middle-class professionals, can take comfort and stability relatively for granted. But here, everything is denominated in dollar terms. You hear the price tag whenever a saw gets lost ($1,000) or a pipe gets jammed ($50,000) or a worker calls in sick ($1,000 an hour in company revenue). Economic risk is as ever present as the physical danger, and--by pushing workers to go faster and harder--one feeds the other...