Tiger Airways Entered the Australian Air Passenger Services Market as the Lowest

Tiger Airways entered the Australian air passenger services market as the lowest cost operator. Its fares are priced well below competitors. Tiger operates in a market that is highly price sensitive and one in which low prices stimulate market growth. Its costs have fallen as it has become more efficient at providing airplane service to its customers. Tiger Airways is MOST likely using a_________ pricing strategy.

A) market skimming
B) price bundling
C) penetration pricing
D) maximum current revenue
E) discounting

Correct Answer:

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