Pricing Strategies: Edexcel A Level Business
Evaluate Edexcel Business pricing strategies by linking cost, competition, innovation, demand, customer perception and market-entry objectives.
- Syllabus
- 2019
- Course
- Business XBS11/YBS11
- Level
- AS
Evaluate Edexcel Business pricing strategies by linking cost, competition, innovation, demand, customer perception and market-entry objectives.
Sources for use with Section B
Extract C Airline Companies in the Middle East Over the past 10 years airline companies based in the Middle East have significantly increased the number of passengers they carry each year. Competitors, Emirates, Etihad Airways and Qatar Airways have attracted travellers with competitive pricing, superior service and luxurious premium cabins. Whilst passenger numbers are increasing, these airlines are facing competition from low-cost airlines, such as Norwegian Air Shuttle and Singapore-based Scoot. These airlines are attracting customers with low-priced fares on some of the same routes. Total passengers carried (m)
Emirates Etihad Qatar Airways Years Extract D Emirates: Our story We started operations in 1985 in Dubai with two aircraft and we have increased the number of aircraft and destinations each year. Today, with more than 265 aircraft, we fly to 155 destinations in 80 countries. We provide industry-leading inflight entertainment, excellent inflight food and world-class customer service. We are known all over the world for our commitment to quality, which we continually seek to improve. Our achievements in 2017 included: •
Three new destinations; Newark in the US, Phnom Penh in Cambodia and Zagreb in Croatia • Our advertising campaign for our improved first-class service, using television celebrity and motoring expert Jeremy Clarkson • We became the world’s first airline with one million followers on the social media site Instagram. This helps us to monitor the experiences and feedback from our customers • In a recent study of the top 100 brands most visible on social media, we were ranked fifth after McDonald’s, Nike, Adidas and Coca-Cola.

Extract C: total passengers carried by Emirates, Etihad and Qatar Airways
Extract C Airline Companies in the Middle East Over the past 10 years airline companies based in the Middle East have significantly increased the number of passengers they carry each year. Competitors, Emirates, Etihad Airways and Qatar Airways have attracted travellers with competitive pricing, superior service and luxurious premium cabins. Whilst passenger numbers are increasing, these airlines are facing competition from low-cost airlines, such as Norwegian Air Shuttle and Singapore-based Scoot. These airlines are attracting customers with low-priced fares on some of the same routes. Total passengers carried (m)
Emirates Etihad Qatar Airways Years

Extract C: total passengers carried by Emirates, Etihad and Qatar Airways
Define the term ‘competitive pricing’. (Extract C, line 4)
Knowledge 2
Up to 2 marks for defining the term ‘competitive pricing’ e.g.
•
is setting the price of a product or service (1) similar to that set
by rivals (1).