pricing of premium economy class in airlines

12/28/2016

Brand Management Project

Submitted By:

Group A

Krishna Bhawsar (007)

Mayur Verma (008)

Piyush Kapoor (011)

Roziwala Suraj (016)

Acknowledgement

In a span of time, few achievements of note have been the product of effort of one person. Instead, they were been accomplished through efforts of group. Similarly, the outcome of our Project report would have been impossible without the cooperation, diligence, understanding and encouragement of number of people. First, we are thankful to all those known and unknown entities that helped us throughout our project work. We would like to express our deep sense of gratitude to Prof. Sameer Mathur for giving us the required guidance and support and motivation required during our project work.

Executive Summary

This project report describes the study about the premium economy class that has recently been introduced in the airlines as a brand extension to leverage the brand potential and reach closer to brand actualization. This project report considers certain variables which are assumed to effect the price of premium economy class seats with respective to economy class seats, these variables are listed in the report.This report portrays the regression analysis done on R, to find out the factors affecting the price of premium economy class seats in airlines. This regression analysis uses the data collected for different airlines for various factors, which are mentioned in the report. This project is done to understand the price setting of the premium economy class seats in airlines. This reports also shows calculation done for jet airways in particular to compare it with rest of airlines put together in the study.

Table of contents

Contents....................................................................................................................................................................0

Acknowledgement................................................................................................................................1

Executive Summary.............................................................................................................................2

Brand Extension:...................................................................................................................................4Advantages of Brand Extension...................................................................................................4

Disadvantages of Brand Extension.............................................................................................5

About Jet Airways:.................................................................................................................................5Jet Airways – Value Proposition....................................................................................................6

JetPrivilege...........................................................................................................................................7

Advertisements..................................................................................................................................8

Nomenclature used.....................................................................................................................................9

Model 1.....................................................................................................................................................11

Residuals:...............................................................................................................................................11

Coefficients:...........................................................................................................................................11

Inferences..............................................................................................................................................11

Model 2.....................................................................................................................................................12

Residuals:...............................................................................................................................................12

Coefficients:...........................................................................................................................................12

Analysis of Variance Table.....................................................................................................................12

Inferences:.............................................................................................................................................13

Model 3.....................................................................................................................................................13

Residuals................................................................................................................................................13

Coefficients............................................................................................................................................13

Inferences..............................................................................................................................................14

Model 4.....................................................................................................................................................14

Residuals................................................................................................................................................14

Coefficients............................................................................................................................................14


Inferences:.............................................................................................................................................15

Model 5.....................................................................................................................................................15

Residuals................................................................................................................................................15

Coefficients............................................................................................................................................16


Inferences..............................................................................................................................................17

Interactive model 5 in Excel.......................................................................................................................18

For Jet airways...........................................................................................................................................19

Model 6.....................................................................................................................................................19

Residuals................................................................................................................................................19

Coefficients............................................................................................................................................19

Inferences..............................................................................................................................................20

References:...............................................................................................................................................23

Brand Extension:

Brand extension is a marketing strategy in which a firm introduces a product using the same brand name. This is a way of using brand potential. This takes the firm closer to brand actualization. An airline firm introducing premium economy seat is brand extension.Advantages of Brand Extension

It increases brand image. It reduces the risk perceived by the customers. It increases the likelihood of gaining distribution. Economies of scale Cost of developing new brand is saved. Consumers can now seek for a variety. The expense of introductory and follow up marketing programs is reduced. It revives the brand. It allows subsequent extension. It clarifies the Brand meaning. It increases market coverage as it brings new customers into brand franchise.

Disadvantages of Brand Extension

Brand extension in unrelated markets may lead to loss of reliability. There is a risk that the new product may generate implications that damage

the image of the original brand. It can confuse the loyal customers. It can encounter retailer resistance. It may cannibalize sales of the parent brand. It can dilute the brand meaning.

About Jet Airways:

Jet Airways, based in Mumbai is an Indian airline. With 21.2% passenger market share, as of February 2016, it is the second largest airline in India after IndiGo. It operates over 300 flights daily to 68 destinations worldwide from its main hub at Chhatrapati Shivaji International Airport and secondary hubs at Amsterdam Airport Schiphol, Chennai International Airport, Indira Gandhi International Airport, Kempegowda International Airport and Netaji Subhas Chandra Bose International Airport.Jet airways was Incorporated in April 1992 as a limited liability company, this airline began operations as an air taxi operator in 1993. It began full-fledged operations in 1995 with international flights added in 2004. The airline went public in 2005 and in 2007, it acquired Air Sahara. It became the largest carrier in the country by 2010.

Jet Airways – Value Proposition

“The Joy of Flying” – with this slogan Jet Airways are dedicated into giving the customers the best service that they can provide. It indulges the consumer needs and also allows the following partners to use its marketing codes in order to provide further routes to passengers, names listed below:Air Canada Kenya Airlines All Nippon Malaysian Airlines Brussels Airline Qantas Etihad South African Airways Garuda Indonesia Thalys JetKonnect United Airlines

Jet Airways has 145 Interline Partners of which 95 are Interline eTicketing Partners. All existing eTicketing eligible sectors of Jet Airways and the below Interline eTicketing Partner are applicable for Interline eTicketing. JetPrivilege Partners: boasts of 140 partners across various categories like airline, car rental, co-brand card, codeshare, conversion, dining, eRetail, lifestyle, entertainment, hotel, lifestyle, publishing, retail and telecommunication. Through Check-in Partners: through check-in facility for our guests travelling on our flights and connecting on 42 through check-in partner airlines across the globe. JetPrivilege

With JetPrivilege, members enjoy a truly rewarding experience with unique privileges across five membership tiers: Blue, Blue Plus, Silver, Gold and the exclusive Platinum.JetPrivilege members can expect to earn more miles, enjoy more benefits, quicker tier upgrades and easier tier retention, enhanced rewards and easier redemption. JetPrivilege has won Freddie Awards considered 'Oscars' of frequent flyer programmes across the world, for five consecutive years including the most coveted 'Program of the Year' Award 2007 and 2006 for the Japan, Pacific, Asia and Australia region.Some of the key features that make the JetPrivilege programme a winner are: ease of enrolment, five membership levels, faster tier upgrades, personalized web access and much more

Advertisements

Jet Airways have been advertisings effectively through a variety of mediums including but not limited to Billboards, TV, Web Ads and also their own inflight magazine. They advertise for the customers and also for recruitment. Some examples of advertisements are shown below

Nomenclature used:

For AIRLINE:0: British Airways1: Emirates Airways2: Delta Airways3: Air France4: Singapore Airlines5: Virgin airlines7: Jet Airways8: Etihad AirwaysFor AIRCRAFT:0: Boeing1: AirbusFLIGHT_DURATION is total flight duration in hoursFor MONTH:1: January2: February3: March and so onFor INTERNATIONAL:1: if international0: if domesticSEATS_ECONOMY: Number of economy seatsSEATS_PREMIUM: Number of premium economy seatsPITCH_ECONOMY: Pitch in economy classPITCH_PREMIUM: Pitch in premium economy classWIDTH_ECONOMY: Width in economy classWIDTH_PREMIUM: Width in premium economy classPRICE_ECONOMY: Price of economy seat in dollars

PRICE_PREMIUM: Price of premium economy seat in dollarsPRICE_RELATIVE: Difference between price of premium economy seat and economy class divided by price of economy seatN: number of economy seats plus number of premium economy seatsQUALITY: difference between pitch of premium economy and economy classWIDTH: difference between width of premium economy and economyNAME: S denotes Sir’s dataA denotes data collected by group A

Model 1model1 <- lm(air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH)

Residuals: Min 1Q Median 3Q Max -1020.2 -289.5 -74.6 128.5 5412.2

Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) -585.70285 121.26003 -4.830 1.71e-06 ***air$PRICE_ECONOMY 1.07347 0.02774 38.693 < 2e-16 ***air$FLIGHT_DURATION 54.61932 7.50862 7.274 1.04e-12 ***air$INTERNATIONAL -166.04587 97.73876 -1.699 0.089835 . air$N 1.05752 0.33165 3.189 0.001500 ** air$LAMBDA 2021.48908 408.18759 4.952 9.42e-07 ***air$QUALITY 14.72581 11.54144 1.276 0.202457 air$WIDTH 90.94018 25.76154 3.530 0.000446 ***---Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1

Residual standard error: 586.8 on 632 degrees of freedomMultiple R-squared: 0.8196, Adjusted R-squared: 0.8176 F-statistic: 410.2 on 7 and 632 DF, p-value: < 2.2e-16

Inferences : P-value is 2.2e-16 < 0.05 hence it is significant. Model is good as adjusted r-square value is 0.8176. This model is without interaction and it implies that with increase in one unit of lambda (no. of premium seats as compared to total seats, it increases price of premium economy by $2021.48. Similarly for one unit (1 hour) increase in flight duration the prices of premium economy increases by $54.6.

Model 2Model2 <- lm(air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH + air$QUALITY * air$INTERNATIONAL)


Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) -1.417e+03 2.377e+02 -5.962 4.15e-09 ***air$PRICE_ECONOMY 1.067e+00 2.746e-02 38.848 < 2e-16 ***air$FLIGHT_DURATION 5.363e+01 7.423e+00 7.225 1.45e-12 ***air$INTERNATIONAL 7.954e+02 2.563e+02 3.104 0.00200 ** air$N 9.053e-01 3.298e-01 2.745 0.00623 ** air$LAMBDA 1.741e+03 4.092e+02 4.254 2.42e-05 ***air$QUALITY 3.397e+02 8.104e+01 4.191 3.17e-05 ***air$WIDTH 7.627e+01 2.571e+01 2.967 0.00312 ** air$INTERNATIONAL:air$QUALITY -3.262e+02 8.054e+01 -4.050 5.76e-05 ***---Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1


Analysis of Variance Table

Model 1: air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTHModel 2: air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH + air$QUALITY * air$INTERNATIONAL Res.Df RSS Df Sum of Sq F Pr(>F) 1 632 217631645 2 631 212117629 1 5514015 16.403 5.758e-05 ***

Inferences:Anova is used to check the difference between variances of means between two models. Here the p-value is 5.758e-05 which shows there is significant difference between two models.

Model 2’s P-value is 2.2e-16 < 0.05 hence it is significant. Model 2 is good as adjusted r-square value is 0.8242 better than previous model. This model is with interaction between quality and international variable and it implies that with increase in one unit of lambda (no. of premium seats as compared to total seats, it increases price of premium economy by $1741. Similarly for international flight the prices of premium economy increases by $795.4. but the interaction shows with one unit increase in interaction the prices of premium economy decreases by $326.2.

Model 3Model3 <- lm(air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH + air$WIDTH * air$N)


Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) -247.12455 133.19232 -1.855 0.064006 . air$PRICE_ECONOMY 1.05425 0.02733 38.579 < 2e-16 ***air$FLIGHT_DURATION 51.31472 7.36068 6.971 7.93e-12 ***air$INTERNATIONAL -19.17026 99.08095 -0.193 0.846645 air$N -1.06226 0.50012 -2.124 0.034057 * air$LAMBDA 1766.62744 401.46224 4.400 1.27e-05 ***air$QUALITY 21.79317 11.34846 1.920 0.055262 . air$WIDTH -197.89489 57.68558 -3.431 0.000642 ***air$N:air$WIDTH 1.42068 0.25530 5.565 3.88e-08 ***---Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1


Inferences :

There is significant difference between two models model 2 and model 3. Model 3’s P-value is < 2.2e-16 < 0.05 hence it is significant. Model 2 is good as adjusted r-square value is 0.8259 better than previous model. This model is with interaction

between N and width variable and it implies that with increase in one unit of lambda (no. of premium seats as compared to total seats, it increases price of premium economy by $1766.62. Similarly for flight duration the prices of premium economy increases by $51.31 with increase in one unit of flight duration but the interaction shows with one unit increase in interaction the prices of premium economy increases by $1.42.

Model 4Model4 <- lm(air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH + air$WIDTH * air$FLIGHT_DURATION + air$WIDTH * air$INTERNATIONAL + air$WIDTH * air$N+ air$WIDTH * air$LAMBDA)


Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) -291.26812 185.98491 -1.566 0.117833 air$PRICE_ECONOMY 1.04554 0.02729 38.318 < 2e-16 ***air$FLIGHT_DURATION 49.42426 11.91697 4.147 3.83e-05 ***air$INTERNATIONAL 112.16311 109.59277 1.023 0.306488 air$N -1.19694 0.61619 -1.942 0.052527 . air$LAMBDA 1749.84422 699.97720 2.500 0.012678 * air$QUALITY 24.13541 11.67381 2.067 0.039098 * air$WIDTH 465.30012 138.17037 3.368 0.000805 ***air$FLIGHT_DURATION:air$WIDTH 0.43182 7.72832 0.056 0.955459 air$INTERNATIONAL:air$WIDTH -664.32257 119.48666 -5.560 4.00e-08 ***air$N:air$WIDTH 1.39341 0.36634 3.804 0.000157 ***air$LAMBDA:air$WIDTH -146.87483 255.58302 -0.575 0.565723 ---Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1



Model 1: air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH +

air$QUALITY * air$INTERNATIONALModel 2: air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH + air$WIDTH * air$FLIGHT_DURATION + air$WIDTH * air$INTERNATIONAL + air$WIDTH * air$N + air$WIDTH * air$LAMBDA Res.Df RSS Df Sum of Sq F Pr(>F) 1 631 212117629 2 628 197488869 3 14628760 15.506 9.662e-10

Inferences:Here the p-value is 9.662e-10 which shows there is significant difference between two models, model 3 and model 4. Model 4’s P-value is <2.2e-16 < 0.05 hence it is significant. Model 4 is good as adjusted r-square value is 0.8334 better than previous model. This model contains 4 interaction. They are between width and flight duration variable, between width and international variable, between width and N variable & between width and lambda variable, and it implies that with increase in one unit of lambda (no. of premium seats as compared to total seats, it increases price of premium economy by $1749.82. Similarly for width the prices of premium economy increases by $465.3 but two interaction shows almost zero value change whereas two interaction shows that with one unit increase will decreases prices of premium economy by $664.3 and $146.8 for interaction international and width , and between lambda and width respectively.

Model 5Model5 <- lm(air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH + air$QUALITY * air$FLIGHT_DURATION + air$QUALITY * air$INTERNATIONAL + air$QUALITY * air$N+ air$QUALITY * air$LAMBDA + air$WIDTH * air$FLIGHT_DURATION + air$WIDTH * air$INTERNATIONAL + air$WIDTH * air$N+ air$WIDTH * air$LAMBDA)


Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) -165.64514 392.50427 -0.422 0.673155 air$PRICE_ECONOMY 1.04727 0.02782 37.645 < 2e-16 ***

air$FLIGHT_DURATION -25.16013 33.06064 -0.761 0.446927 air$INTERNATIONAL 35.97837 387.13538 0.093 0.925985 air$N 1.45669 1.31841 1.105 0.269635 air$LAMBDA 692.47360 928.32700 0.746 0.455986 air$QUALITY -42.90874 134.98965 -0.318 0.750692 air$WIDTH 614.69386 226.87154 2.709 0.006925 ** air$FLIGHT_DURATION:air$QUALITY 13.15122 5.37356 2.447 0.014664 * air$INTERNATIONAL:air$QUALITY 28.12047 135.06759 0.208 0.835144 air$N:air$QUALITY -0.42532 0.20055 -2.121 0.034332 * air$LAMBDA:air$QUALITY 291.61181 184.88702 1.577 0.115246 air$FLIGHT_DURATION:air$WIDTH -10.06403 9.06495 -1.110 0.267334 air$INTERNATIONAL:air$WIDTH -716.67776 203.56928 -3.521 0.000462 ***air$N:air$WIDTH 1.69251 0.39696 4.264 2.32e-05 ***air$LAMBDA:air$WIDTH -669.70880 425.10034 -1.575 0.115668 ---Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1



Model 1: air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH + air$WIDTH * air$FLIGHT_DURATION + air$WIDTH * air$INTERNATIONAL + air$WIDTH * air$N + air$WIDTH * air$LAMBDAModel 2: air$PRICE_PREMIUM ~ air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL + air$N + air$LAMBDA + air$QUALITY + air$WIDTH + air$QUALITY * air$FLIGHT_DURATION + air$QUALITY * air$INTERNATIONAL + air$QUALITY * air$N + air$QUALITY * air$LAMBDA + air$WIDTH * air$FLIGHT_DURATION + air$WIDTH * air$INTERNATIONAL + air$WIDTH * air$N + air$WIDTH * air$LAMBDA Res.Df RSS Df Sum of Sq F Pr(>F) 1 628 197488869 2 624 194865491 4 2623378 2.1002 0.07931

Inferences:

Here the p-value is 0.07931 which shows there is no significant difference between two models, model 4 and model 5 but the adjusted r-square value is 0.8346 which is better than previous model. So considering this model.

Model 5’s P-value is <2.2e-16 < 0.05 hence it is significant. This model contains 8 interaction. They are between quality and flight duration, between quality and international variable, between quality and N variable, between quality and lambda variable, between width and flight duration, between width and international variable, between width and N variable & between width and lambda variable, and it implies that with increase in one unit of lambda (no. of premium seats as compared to total seats, it increases price of premium economy by $692. Similarly for width the prices of premium economy increases by $465.3 but two interaction shows almost zero value change whereas two interaction shows that with one unit increase will decreases prices of premium economy by $716.67 and $669.7 for interaction between international and width , and between lambda and width respectively. Here with one unit increases in interaction between lambda and quality suggest that the prices of premium economy increases by $291.61. Rest 3 interactions have almost negligible interactions.

Interactive model 5 in Excel :To determine the value of price of premium economy, use above model by incorporating few or all variables to decide the prices.

From Model

VariablesInsert Values Here BETAS

Insert 1 or 0

Intercept 1

-165.645

14 1price economy 3000 1.04727 1

flight duration 18

-25.1601

3 1

International 035.9783

7 1N 50 1.45669 1

Lambda 0.4692.473

6 1

Quality 37

-42.9087

4 1

Width 7614.693

86 1Flight Duration*Quality 400

13.15122 1

International*Quality 3913/15122 1

N*Quality 15000 -0.42532 0

Lambda*Quality 7291.611

81 1

Flight Duration*Width 50

-10.0640

3 1

International*Width 8

-716.677

76 0N*Width 1300 1.69251 1

Lambda*Width 0

-669.708

8 1PRICE PREMIUM ECONOMY 12386.90927

Values Range

You can decide

the values.

The range

provided here

are taken from the data

colllected

1

price economy$50.34 to $3593 0

flight duration0.25 - 21.833 hours

International 0 or 1N 38 to 441Lambda 0.04 to 0.55Quality 0 to 41Width 0 to 8.5 Flight Duration*Quality 0 to 454.403International*Quality 0 to 41N*Quality 0 to 16400Lambda*Quality 0 to 9.84Flight Duration*Width 0 to 54.32International*Width 0 to 8.5 N*Width 0 to 1368Lambda*Width 0 to 2.2Intercept 1 always

For Jet airwaysModel 6Model6 <- lm(air$PRICE_PREMIUM ~ air$JET.Airways+air$PRICE_ECONOMY + air$FLIGHT_DURATION + air$INTERNATIONAL+ air$N + air$LAMBDA + air$QUALITY + air$WIDTH + air$QUALITY * air$FLIGHT_DURATION + air$QUALITY * air$INTERNATIONAL+ air$QUALITY * air$N+ air$QUALITY * air$LAMBDA + air$WIDTH * air$FLIGHT_DURATION + air$WIDTH * air$INTERNATIONAL+ air$WIDTH * air$N+ air$WIDTH * air$LAMBDA)

Residuals: Min 1Q Median 3Q Max

-2515.7 -248.9 -45.6 105.6 5446.2

Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) -190.58840 392.06696 -0.486 0.627059 air$JET.Airways -266.73185 149.39149 -1.785 0.074674 . air$PRICE_ECONOMY 1.03445 0.02869 36.062 < 2e-16 ***air$FLIGHT_DURATION -29.87254 33.10820 -0.902 0.367262 air$INTERNATIONAL -21.62423 387.80279 -0.056 0.955550 air$N 1.43628 1.31616 1.091 0.275575 air$LAMBDA 1011.99696 943.82537 1.072 0.284032 air$QUALITY -20.09305 135.35816 -0.148 0.882041 air$WIDTH 648.28948 227.25517 2.853 0.004479 ** air$FLIGHT_DURATION:air$QUALITY 14.63728 5.42835 2.696 0.007198 ** air$INTERNATIONAL:air$QUALITY 40.85430 135.01992 0.303 0.762311 air$N:air$QUALITY -0.46136 0.20121 -2.293 0.022186 * air$LAMBDA:air$QUALITY 141.78245 202.74559 0.699 0.484618 air$FLIGHT_DURATION:air$WIDTH -16.47422 9.73529 -1.692 0.091105 . air$INTERNATIONAL:air$WIDTH -716.38779 203.21341 -3.525 0.000454 ***air$N:air$WIDTH 1.64756 0.39706 4.149 3.8e-05 ***air$LAMBDA:air$WIDTH -430.01798 445.08537 -0.966 0.334345 ---Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1


Inferences:

We have included one more variable in the analysis – Jet.Airways, the p-value shows that it is significant as p-value < 2.2e-16 < 0.05. Adjusted R-square value is 0.8352 which is even better than previous model. To determine the prices of premium economy for the jet airways consider following model :

VariablesInsert Values Here BETAS

Insert 1 or 0

Intercept 1-

190.5884 1price economy 3000 1.03445 1

flight duration 18-

29.87254 1

international 0-

21.62423 1N 50 1.43628 1

lambda 0.41011.998

99 1

Quality 37-

20.09305 1

Width 7648.2894

8 1Flight Duration*Quality 400 14.63728 1International*Quality 39 40.8543 1N*Quality 15000 -0.46136 0

Lambda*Quality 7141.7824

5 1

Flight Duration*Width 50-

16.47422 1

International*Width 8

-716.3877

9 0

Jet.Airways 1

-266.7318

5 1N*Width 1200 1.64756 1

Lambda*Width 1

-430.0179

8 1PRICE PREMIUM ECONOMY

14263.24884

Values

Range

You can decide

the values.

The range

provided here

are taken from the data

colllected

1that variable is included

price economy$50.34 to $3593 0

that variable is not included

flight duration0.25 - 21.833 hours

international 0 or 1N 38 to 441lambda 0.04 to 0.55Quality 0 to 41Width 0 to 8.5 Flight Duration*Quality 0 to 454.403International*Quality 0 to 41N*Quality 0 to 16400Lambda*Quality 0 to 9.84Flight Duration*Width 0 to 54.32International*Width 0 to 8.5 Jet.Airways 1N*Width 0 to 1368Lambda*Width 0 to 2.2Intercept 1 always

References:1. http://www.jetairways.com/EN/IN/Home.aspx 2. Keller K.L., Parameshwaran A.M.G. and Jacob I., Strategic Brand Management

(4e), Pearson3. http://www.managementstudyguide.com/brand-extension.htm 4. https://www.seatguru.com/findseatmap/findseatmap.php 5. http://www.britishairways.com/travel/home/public/en_in 6. https://www.emirates.com/in/english/ 7. http://www.delta.com/ 8. https://www.airfrance.com/indexCOM.html 9. http://www.singaporeair.com/ 10.http://www.virginatlantic.com/ 11.http://www.etihad.com/en-in/

http://www.etihad.com/en-in/

http://www.virginatlantic.com/

http://www.singaporeair.com/

https://www.airfrance.com/indexCOM.html

http://www.delta.com/

https://www.emirates.com/in/english/

http://www.britishairways.com/travel/home/public/en_in

https://www.seatguru.com/findseatmap/findseatmap.php

http://www.managementstudyguide.com/brand-extension.htm

http://www.jetairways.com/EN/IN/Home.aspx

pricing of premium economy class in airlines

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