Thursday, May 12, 2011

Bags Fly Free

Blog readers interested in the commercial success of Southwest Airlines may want to read Rachel Ang's working paper, Low Cost Carrier with Bags Fly Free (Apr. 13, 2011) (available from SSRN here).  From the abstract:

Southwest airline is recognized in the United States as one of the most important and influential airline organization in corporate America. This study examines how Southwest uses the competitive marketing strategies and market performances - “Low Cost Carrier with Bags Fly Free” to assist customer relationship marketing, Customer Lifetime Value (CLV). Based on 108 findings of the in-depth interviews, many recommendations can be derived for Southwest, the most powerful multichannel aviation carrier in the Unites States of America. The philosophy of “Low Cost Carrier” has driven customer retention and commitment for past two decades. With consumers shopping around for best prices, will “Bags Fly Free” continue to support Southwest for permanent growth in market share and development.

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