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BaaaaagLady...
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Awesome post Lynn!
As I read through the post I could not help but think about all the ways that Spirit has been able to essentially incentivize customer to self-select and further support its dynamic pricing. I bet that the information they’ve collected with respects to the value customers derive from water vs. how many customers would actually buy water at $3 a bottle would be information that other carriers would likely benefit from (assuming the customers are somewhat similar). I wonder how much of Spirits operating model other airlines’ would be willing to experiment with during tough economic times when cost cutting and opening up creative revenue streams would seems to keep them afloat. Would they move closer to this unbundling if it meant keeping the business alive?
I never really thought about the increased “trust” that results from having customers fact-to-face with the ingredients that go into their food. In thinking back to my experience as a Chipotle customer, it actually does make a difference. More specifically, it gives me the security of knowing I could never be cheated out of the pre-determined amount of chicken or steak I am entitled to for the dollars I pay for a burrito. As I supervise the assembly of the perfect burrito, I can make a real time case for “more chicken/steak please” and increase the value I derive from the burrito that simply. This means they rarely get the order wrong. Its genius and keeps me coming back!