Chapter 1 Video Exercise: Southwest Airlines

Different members of the public want different things from air travel. Even though Southwest Airlines is known as a low-fare air carrier that provides excellent service and a fun flying experience, customers do not necessarily desire the exact same experiences. By figuring out what different groups of Southwest's customers need and desire, and then by providing specific packages of customer experiences that accommodate those needs and desires, Southwest Airlines is making key marketing decisions regarding __________.

Segmentation, targeting, and positioning.

Southwest Airlines uses many different methods to generate extensive information about its customer base, and then it uses this information to enhance customer experiences. These activities indicate that all of the following observations but one would be logical. Which observation is the illogical one?

Southwest Airlines views itself as operating in a devolving market.

A general analysis of the entire business situation - including customer, company, context, collaborators, and competitors - for Southwest Airlines would reveal all of the following except:

Southwest's collaborators pursue their own interests without regard for Southwest's interests.

Southwest Airlines hires people who are fun-loving and outgoing, who enjoy interacting with other people because putting fun into air travel is an essential ingredient of the company's culture. From a marketing perspective, this is an example of __________.

The philosophy that the marketing orientation should permeate the organization, thereby making every employee responsible for customer satisfaction.

Which one of the following statements most accurately describes Southwest Airlines' conception of what it markets?

A total travel experience

Southwest Airlines does extensive market research to gain information from its customers. There are many legitimate reasons for doing this market research. Which one of the following options does not describe one of these legitimate reasons?

Demonstrating that marketing is the most important managerial function in operating Southwest Airlines.

The Southwest Airlines brand is that of a low fare carrier with the highest level of customer service ¾ and with fun added into the flying experience. Southwest Airlines strives to provide its customers with a total product experience that includes: check-in, boarding, flying, and baggage claim experiences. In providing this total product experience, the airline desires to fully meet the needs, wants, and desires of its customers. Southwest regularly surveys its customers regarding all components of the product experience in order to foster continuous improvement. Southwest also conducts extensive quantitative and qualitative research to better understand customers' needs, as well as to explore possible product experiences that the company might offer in the future. Southwest operates on the premise that having new products is what makes a company successful over time. Thus, while maintaining its commitment to low fares, excellent customer service, and fun, Southwest seeks to identify product experiences that its different market segments would like to have. The company then builds those experiences into the ticket price structure rather than charging customers with numerous add-ons. Taking this approach enables Southwest Airlines to better tailor its total product experience to the wants, needs, and desires of its different market segments. Southwest Airlines, a consistently profitable airline, describes itself as a low- fare carrier with the highest level of customer service and with fun added to the airline. From a marketing perspective this statement could be interpreted as evidence of supporting one of the following observations more than the other three. Which one of the following observations is best described by this statement?

Marketing is a symbiotic exchange between Southwest Airlines and its customers.

The marketing mix consists of product, price, place, and promotion. All but one of the following component descriptions are accurate with respect to Southwest Airlines' marketing mix decisions. Which component description does not accurately describe Southwest's position?

Southwest Airlines flies most of it routes to international destinations.