Old Sep 21, 01, 7:41 am
  #51  
wavebender
 
Join Date: Jul 2000
Location: Chicago, IL
Posts: 66
I don't know if anyone responding to this thread is in marketing, like me, but in the commodity business, such as air transportation, it's criticat that the airlines are able to differentiate themselves in the market to attract and retain customers. SW does it through their approach, do does Virgin, etc. For AA to cut out food, causes one more differentiation point to go away, and degrades the loyalty of its customers. They become just one more member of the pack, similar to ATA, etc. I remember about 3-4 years ago, when AA put a big push on their chef-inspired food, and they positioned it as a way to attract new customers and generate demand - and differentiate themselves from all the other carriers. They needed to be more competitive, so they said. We're in a similar situation now, so if anything, they should really build out their food service to attract away UA, NWA, Delta customers. Not the other way around.
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