Final answer:
American Airlines is considering changes to its Customer Benefit Package, which involves bundling multiple services for a better price offer. This strategy aims to enhance value for customers and competitive advantage for the firm. Careful assessment of these service packages is crucial due to different customer preferences and the competitive airline industry.
Step-by-step explanation:
The question involves the decision by American Airlines to consider major changes to its Customer Benefit Package (CBP). Understanding CBP in the context of American Airlines involves looking at the various services or benefits that the airline provides to its customers. The correct alternative regarding the items of American Airlines' CBP would likely entail analysis of customer preferences, competitive offerings, cost considerations, and potential benefits to the airline and its patrons.
When a firm like American Airlines considers bundling, it explores the combination of multiple products or services into a single package, often at a more attractive price point. This strategy can be advantageous for both the firm and the customer, similar to how cable companies bundle cable, internet, and a phone line. While customers can still purchase these products separately, bundling often results in a better overall value proposition. American Airlines might consider bundling options such as priority boarding, extra baggage, or in-flight meals into various service packages tailored to different customer segments.
The concept of bundling in the airline industry can be significantly complex due to the varied preferences of travelers and the highly competitive nature of the airline industry. American Airlines would need to carefully assess their CBP elements to ensure they meet customer needs while maintaining profitability.