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Research Needs in the Intercity Bus and Rail Transportation Industry

Research Needs in the Intercity Bus and Rail Transportation Industry. Chapter 28 Research Methodologies. Introduction. Marketing intercity rail and bus travel is different from marketing other types of transportation and travel for two reasons: This industry is regulated by government

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Research Needs in the Intercity Bus and Rail Transportation Industry

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  1. Research Needs in the Intercity Bus and Rail Transportation Industry Chapter 28 Research Methodologies

  2. Introduction • Marketing intercity rail and bus travel is different from marketing other types of transportation and travel for two reasons: • This industry is regulated by government • Both the rail and bus market are dominated by one major competitor

  3. Regulation • The intercity bus industry is regulated by the Interstate Commerce Commission (ICC) and by various regulatory agencies. • Under these authorities, the ICC must approve all fare increases and decreases before they are implemented • Another for of government regulation is route authority in which a bus company has to be granted authority to provide service between two cities

  4. Competition • People are rarely surprised to find out that one company has dominated the bus industry for over 40 years and that is Greyhound, by 60 percent • Intercity rail is regulated by government agencies and is dominated by Amtrak

  5. Market Research Responsibilities • The dynamic nature of the intercity bus market requires all companies to develop marketing plans in an atmosphere of uncertainty and these plans must be flexible enough to adapt quickly to a constantly changing market • Therefore the responsibility of the corporate market research department is to help senior managers develop strategies that can be changed and modified at a moment’s notice

  6. The Needs of Five Managers • The Vice President of Passenger Marketing: • Needs information that will help price tickets and travel services • Develop and evaluate marketing promotions • Forecast passenger miles, revenues, and profits • The Vice President of Advertising • Needs research support for testing advertising copy • Developing Media plans • Tracking Advertising

  7. The Needs of Five Managers • The Marketing Controller • Needs help in evaluating the cost-benefits of marketing programs • The Vice President of Passenger Services • Focuses on receiving ratings of passenger service on a timely basis • The Vice President of Traffic and Operations • Needs to be kept appraised of changes in preferred origins and destinations

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