Qantas Consumer Behaviour Theory - Case Study Example

Qantas Consumer Behavior Theory Table of Contents Qantas Consumer Behavior Theory 1 Table of Contents 1 Strategic Planning Theory 2 Concept 2 Benefits It Obtains Strategically 2 Positioning Theory 3 Concept 3 Benefits It Obtain Strategically 3 Customer Value Theory 4 Concept 4 Benefits It Obtains Strategically 6 Recommendations 6 References 7 Strategic Planning Theory Concept Strategic planning is regarded as a methodical procedure of imagining an anticipated vision, and converting the vision into extensive aims or purposes and developing a structure of phases to attain it. Strategic planning helps organizations to define the ways and the possibilities in the long-run. It starts with understanding the changing customer behaviors and the ways to satisfy them (Enock & et. al., 2011). As customer behaviors are dynamic in nature, it is important for an organization to use strategic planning concept to familiarize with fluctuating behavior of customers and take advantage of it. The major purpose of using strategic planning concept is to help organizations understand how they can compete in future (Kotler & et. al., 2007). Benefits It Obtains Strategically As the customers’ demand for air travel has increased after the year 2000, several airline organizations have provided discounted fares for travellers. Thus, to survive in the airline industry, Qantas applied the strategic concepts in their operations. The first strategic move was to acquire ‘Impulse’ in the year 2001. It has provided the benefit of using Impulse’s low operating expenses. The second strategic move was to take advantage of breakdown of one competitor, ‘Ansett’ in the same year. It has provided the benefits of capturing large market share (Bamber & et. al., n.d.). In reaction to the fierce competition from Virgin Blue, Qantas has introduced an inexpensive flight named ‘JetStar’. This strategic concept is beneficial as it has resulted in Qantas being able to compete with the Virgin Blue with respect to cost and capture the market of aviation industry. Through the strategic planning concept, Qantas is able to expand their business and target new customer segment which help to reduce the risk of downfall (Harcourt, 2004). Positioning Theory Concept The concept of positioning has numerous dimensions. With respect to consumer behavior, positioning denotes the communication tactics which lets an organization to place their brands between other competitors’ brands (Harré & Lagenhove, 1999). Positioning encompasses generating unique, reliable and familiar consumer awareness about the offerings and the brand image. Positioning is based on consumer behavior, benefit, cost, or quality. Positioning aims at specific customer segments by certain specific strategies. Positioning is the method of defining a product or service on key features so that it can occupy a place in the mind of customers. It is vital for organizations to choose and communicate the positioning which can provide their products or services with supreme features of the industry (JPEC, n.d.). Benefits It Obtain Strategically Positioning theory benefits Qantas to recognize potential competitive advantages in the aviation industry. To motivate the customers, Qantas has differentiated their services to gain competitive edge over other competitors’ offerings. With the help of positioning strategy, Qantas has successfully made a strong brand image equipped with quality entertainment services, food services, suitable booking structures, timely dispatches and better seating arrangements that deliver fundamental benefits to the customers. As a result of applying effective positioning concept, Qantas brand is also considered as ‘the Spirit of Australia’. Qantas considers the consumers’ behaviors, because the consumers have different desires. While certain people prefer quality food, and entertainment services, others may like better seating arrangement or timely dispatch. Qantas positions their services by considering the preferences of people. Qantas positions its brand as ‘safe’ and ‘Spirit of Australia’ and accordingly offers those services which can satisfy these brand images (HighBeam Business, 2008). Customer Value Theory Concept Customers buy a product or a service basically by considering ‘key drivers’. It is the key drivers that help to choose or reject any product or service. The drivers as well as the values for purchase differ from one customer to another. In the market, there are several products and services which can fulfill customers’ needs and desires. Customers purchase various products and services according to their awareness of value. From the viewpoint of customers and organization, value is a multidimensional concept. Value can be measured by following formula: Value = Relative sum of total benefit perceived / Relative total expenses perceived A customer will only pay for any product or service if the relative sum of total benefits perceived is greater than relative total expenses perceived. Thus, in order to make a customer buy any product or service, organizations need to apply the concept of customer value theory (Woodside, 2008). Benefits It Obtains Strategically Qantas uses the customer value concept to generate and deliver adequate value of the services without sacrificing the profit. Though the general concept for purchasing an air ticket is to reserve a sit on plane, Qantas provides other benefits which can satisfy the expected value of customer to purchase their services. Qantas understands the drivers for purchasing services and thus accordingly provides services which can be enjoyed throughout the journey, before journey or after journey such as parking facility and online check-in service among others (Qantas, 2010). Recommendations International competition and advent of low-cost services have created challenging environment for Qantas. To ensure success in this competitive dynamic environment, Qantas needs to devise its business strategy in such a way so that it can satisfy the customers’ requirements. There is need to differentiate the services so that it can maintain the brand image and provide good travelling experiences to customers. References Bamber, G. J. & et. al., (No Date). Low-Cost Airlines' Product and Labor Market Strategic Choices: Australian Perspectives. Griffith University. Retrieved Online on November 04, 2011 from http://www98.griffith.edu.au/dspace/bitstream/10072/13201/1/40523.pdf Enock, K. & et. al. (2011). Theories of Strategic Planning. Understanding the Theory and Process of Strategy Development. Retrieved Online on November 04, 2011 from http://www.healthknowledge.org.uk/public-health-textbook/organisation-management/5d-theory-process-strategy-development/strategic-planning Harcourt, T., (2004). Qantas in Radical Plan for JetStar. Australian Financial Review, p. 1. Harré, R. & Lagenhove, L., (1999). Positioning Theory: Moral Contexts of Intentional Action. Wiley-Blackwell. HighBeam Business, (2008). Brand Therapy: Qantas. Business Articles. Retrieved Online on November 04, 2011 from http://business.highbeam.com/409223/article-1G1-186419845/brand-therapy-qantas JPEC, (No Date). Product Positioning. Handouts. Retrieved Online on November 04, 2011 from http://www.jpec.org/handouts/jpec35.pdf Kotler, P. & et. al. (2007). Marketing Seventh Edition. Prentice Hall. Qantas, (2010). The Qantas Group at A Glance. Fact File. Retrieved Online on November 04, 2011 from http://www.qantas.com.au/infodetail/about/FactFiles.pdf Woodside, A. G., (2008). Creating and Managing Superior Customer Value. Emerald Group Publishing. Read More