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Buyer Behaviour: Virgin Blue Executive Summary Virgin Blue is a relatively new consumer airline created to take advantage of a specific gap in the short-haul domestic travel market within Australia. The gap exists in low cost service options for the airline traveling domestic market. A key feature of low-cost carriers is simplicity. The opposite, complexity, tends to involve significantly greater cost. Satisfying customers is all about meeting expectations. Travelers know these carriers are low-cost and don't expect any frills. On the other hand, over the decades full-service carriers have built a reputation. To reduce service, even if at a lower fare, is generally not acceptable to customers. We've seen this with Qantas over the past year. Even when passengers are only paying $77 for a flight, they still expect a certain level of service because they've become accustomed to Qantas. This report will look sequentially at three important angles of consumer behaviour within the...

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