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Author Topic: First Class Upgrade for Expectant Mothers  (Read 17785 times)
Shazz
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« Reply #30 on: January 24, 2008, 00:11:09 »


So its not documented anywhere they could find out

Is this a challenge?  Tongue
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zebedee
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« Reply #31 on: January 24, 2008, 08:57:45 »

Actually, I could hazard a guess at the name of your company, it didn't take that long to come up with one contender.....although this is going off topic now.....

I think it's a good thing that FGW (First Great Western) are doing, as everyone needs help at some point in their lives and as it's not actually causing anyone any problems.  You'll probably want to scrap the NHS next, as, horror, all those people who've got knocked up having their babies in hospitals that YOU'VE paid for!!!!
« Last Edit: January 24, 2008, 09:34:27 by zebedee » Logged
Tim
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« Reply #32 on: January 24, 2008, 15:14:01 »

point is - u don't go to tesco and get milk for half price or pepsi for 5p just because u are a kid or poor



Yes you do actually get a version of this in Tesco.  If you are poor Tesco targets their "value" range at you.  If you are rich, they target their "Finest" range at you.  This is not charity but the application of an economic theaory called "differentiation". Tescos makes much more profit from their Finest range (because it is four times the price but only twice as good) and ideally would like to sell that range to everyone but Tesco realises that poor people would not be able to afford it so they sell them the value range even though their mark-up is only a few pence because the alternative is not making any profit from that potential customer at all.   The economic theory behind this strategy is called product differentiation and if it makes good business sense for Tescos then it might also make sense for FGW (First Great Western).  They would rather expectant mothers travelled in a First class seat at waht is in effect a subsidised fare (and have a positive feeling about First of the type that is currently rare among customers) than didn't take the train at all.

Not the same thing at all

The value product is a different product to the finest - they are charging different based n the product that is being purchased.

However, a seat in first is a seat in first - and FGW are differentiating based on the person renting it for the duration of their journey



But there are plenty of examples of where exactly the same product is offered at different prices to different people.  Airlines charge businesspeople more for a return flight than a family who is able to stay away for a Friday night.  FGW charges less for book ahead fares than for walk on fares.  Season tickets are cheaper per day than buying individual tickets.   The business sense behind this is all the same and based on the company's acceptance that whilst some passengers are more profitabel than others, it is in their interests to try and make at least a little money from as many people as possible. 

Bottom line is if FGW want to do this, it is there business decison to make and if it wins them a few more customers or brownie points then it will be a sound business decision
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