Case: Southwest Airlines: Waging War in Philly

Questions for Discussion:

1. How do Southwest's marketing objectives and its marketing-mix strategy affect its pricing decisions?

2. Discuss factors that have affected the nature of costs in the airline industry since the year 2000. How have these factors affected pricing decisions?

3. How do the nature of the airline market and the demand for airline service affect Southwest's decisions?

4. What general pricing approaches have airlines pursued?

5. Do you think that Southwest will be able to continue to maintain a competitive advantage based on price? What will happen if others carriers match the low-price leader?