The SchmidPreissler model for consumer goods markets and services, with its four segments Luxury, Premium, PremiumEconomy and Economy, for wants and needs is becoming more and more accepted. Our theory is becoming recognized in practice, because aside from the lowest possible price, it also includes the wish for better performance, which puts the terms ‘low priced’ and ‘cheap’ into perspective. This applies especially to products and services for the satisfaction of needs. Today’s consumers possess a comprehensive knowledge which they apply when making a purchasing decision. Subsequently, the lowest price or the best offer has to be in proportion to what is being offered. In other words, the consumer differentiates and now the ‘better’ product as enemy of the ‘good’ is playing increasingly a role on the market.

The airline industry has discovered that there is increasing demand for a ‘better’ Economy Class in their industry. They found out that the Economy Class offers a lot of room, from Economy Class Pure all the way to the Premium Class. And thus the airline industry is working on implementing a Premium Economy Class modelled after our model of the consumer goods market and services. The success of this new PremiumEconomy Class of a fistful of intercontinental airlines has caused quite a stir globally, in the airline industry. Of course, we are pleased to have been an inspiration.

If you look at the layout of the offer and the pricing structure of the airlines ANA All Nippon Airways, British Airways, SAS, Air New Zealand and EVA Air, even non airline experts can say that the creation of value with a difference in price between Economy tickets and the tickets for the new PremiumEconomy Class of one hundred percent or more, should be beneficial for the airlines. And the passengers are surely getting their money worth, because passengers today know, what things cost in air traffic.

In our experience a PremiumEconomy performance is always a win-win situation for both sides, for supplier and buyer.

If you are interested in finding out more about the SchmidPreissler model of the four market segments, because you think it suits your market oriented corporate strategy, I would be glad to introduce it to you.