The Effect of Social Media Usage in the Airline Industry - Research Paper Example

This research looks into the effect of social media on the air transport industry. Particularly, the study measured the impact of online marketing on clients ability to prescribe administration to others (verbal correspondence), clients steadfastness whats more maintenance and ultimately figured out whether in general clients fulfillment contrast with the kind of online networking innovation (Faris ,2010.pp2011). Three theories were formed to guide the examination and the factual essentialness of the variables in the three speculations was tried utilizing basic relapse investigation and restricted examination of change. The study uncovered noteworthy relationship between social networking micromarketing and the clients fulfillment variables: clients readiness to prescribe administration to others, clients reliability and maintenance. Introduction - Background Social media networking has increased tremendously over the past years. In a survey, according to Stelzner 2012, over 94% of marketers stated that they used social media in their adveritizing. Stelzner 2012 claims that this is a 7 percent drop compared to the previous year. Social media marketing remains advantageous to many businesses, and continues to help increase the number of client’s drammatically. Throughthe Social media most firms have become socially accountable as they try to use it as a marketing tool (Barnes, 2009). Business must be ready to face both side of the coin when using social media. The high exposure has its good and bad side. According to Gunelius, 2011, the quality always outguns the quantity. Its better to have 1000 online individuals who are committed to your content than to have 10,000 who will be gone immediately they come across your content.. Among the most highly used media sites, it is not surprise Facebook owns the title with an amazing 92% and Twitter is second with 82%. With these numbers, among others, being so remarkable, users intend to utilize them by even more. 72% of the marketers using Facebook are planning to increase their activities over the next couple years 69% of the marketers are planning to increase their activities on Twitter (Stelzner, 2012, p 25). With the expected increases in the usage these media sites we can expect there to be a rise in the overall number of these as well as other sites in 2015. Social media networking, like many other tools of marketing has its ups and downs. One challenge is that it is time consuming to bring up and maintain social media websites and pages (Sandilands, 2011). The dynamic business environment where change is continuous makes it a must for businesses to dedicate time to manage their online images. The law of accessibility mention by Gunelius comes to mind when speaking of this principle. She asserts that people should not publish their content and then not be available to their audience. It is needed that one be as consisitent in engaging the audience as in publishing. Otherwise, followers will easily disappear to find a replacement (Gunelius, 2011). Consistency is one the key factors and must be practiced when using social media marketing. It is hard to develop a loyal fan base, but it become even harder to keep one. This can be a challenge for firms because they become distracted with other tasks that take account with their operation. It is also a challenge for firms because you are supposed to be ready to share and develop new ideas. Consumers can become bored with the same things all the time, and look for new things to keep them engrossed. Firms also face the challenge of negative publicity in the use of social media as a marketing tool. Once a company decides to use social media, the company is open to public scrutiny and if any negative is found the social media will put all of it to light (Sandilands, 2011). Any private company’s issue can be spread out and exposed very fast in the social media. For example, when Toyota had to recall the return of certain makes of their cars due to brake issues in 2009, thousands of consumers were anxious and worried. Many ended up posting in social media about their fears or how the company was inconveniencing them with the call for returning the vehicles. Many prospectives Toyota customers shied away from buying vehicles from the company at that time Inspite of all these disadvantages of social media marketing, companies still find it very much beneficial (NadarajaR, 2009). The popular advantages that owners claim to experience in the use of internet social networks is increased exposure and traffic. 85% of the businesses researched stated an improvement in exposure while 69% claimed an improvement in traffic. Benefits such as generated leads, increase of fans, bettered web search rankings, increase in business relations, and more sales were also listed in the research. The marketplace insight benefit is a very interesting benefit. This to me stems along with the accessibility factor. The business has access to more information, and can learn what the consumers are interested in without having to physically go out and conduct surveys (Barnes, 2009). Social media marketing serve as a benefit of convenience for businesses in cases such as this. Problem definition Due to Globalization competition in every industry has increased. Due to this increased competition every industry is trying hard to attain competitive advantage by adopting different strategies.Effective use of technological advancements has allowed companies to attain completive advantage. Social media marketing is a significant tool in this age wher technology rules almost everything. The avenues to advertise services and products are numerous and business are spoilt of choice with the likes of Facebook, Twitter and Instagram toping their list. Technological advancement has influenced many organizations to rely upon the social media as a marketing tool to increase their incomes and profits. Though some organizations may not have utilized the social media as a source business enhancement, the internet social networks are deniably influential in setting a business ahead of the (Bosari, 2012). Today organizations contemplate the requirement of social networking research and implementation along with hiring internet specialists. However, if organization specifically organization operating in airline industry adapt to this effective communication medium will consumers value the change and take the use of social media positively? Therefore, the study is going to evaluate the effect of social media on airline industry.The researcher will study airline industry on average, while evaluating the effect of social media on airline industry the researcher will not determine the likeness of individuals using the tool. This study will evaluate the impact of social medial on organizations overall. Research Question What is the effect of Social Media usage in Airline Industry? Purpose of the Study This study will determine the organizational effectiveness when using social media in airline industry.This study also intends to evaluate if social media help organization to differentiate them from other modern organization.The analysis of the study will have a great impact on integrated marketing communication in airline industry. Scope of the Study The growth and increase of the social media has affected the operation of all businesses in many ways. New ways of marketing and public relations have been adopted (Glanz, 2003). Business processes and communication methods get affected lifting the social medias role paramount to the success of the business. According to the 2011 Social Media Marketing Industry Report, that not only businesses are affected by Social media but also the societies thus, affecting also the consumer behaviour. The aim of the qualitative research is to describe and add to the existing knowledge for which validity had a different function. Proposed Solution Social media provides tools that help an organization to measure its presence over the web. Organizations are able to track client’s responses towards the offered items and services (Murdough, 2009). Furthermore, firms are able to convey crucial knowledge and data in regards to their brand, this further helps to change the consumers attitude and behavior towards the products and services the firm has the ability to change as per the customers’ interests. The introduction of internet social networking has revolutionalized the way individuals and firms share personal and public information. The social media has created the potential for individuals with shared interests to connect and work together Technological development has influenced how individuals relate with the environment and each other. The most noticeable impact has been the influence of the internet through social media, especially on individuals and the global business environment. Social networking through the internet sites has emmerged to be a stage where individuals can express their feelings publicly. Technology has completely transformed the daily functions of business and individuals. Use of the internet networking platforms for video and voice calls has also made communication easier keeping businesses and individuals connected. Information and more is easily accessible by the use of gadgets like mobile phones and tablets. However, challenges of the Social Media do still exist. This research will dwell on looing into the effects of social media on today’s airline global environment (Asur, &Huberman, 2010). There are several social networks sites available in the internet, but the most significant and the ones with the biggest volume of user traffic, are Facebook, Twitter and Linkedin. Recent survey reveals that 71% of the individuals over eighteen years in the United States use the social networking sites like Facebook. 22% of the population use Linkedin and another 18% constantly utilizes twitter. The highest numbers of interactions were witnessed in Facebook with 63% of the users login the site daily. This statistics clearly shows why Facebook has the most significant impact in the the social media (Beckman, 2005). Related work/Literature Review Social media is increasingly emerging as an essential communication tool for the travel industry. Use of the social network began in the Airline industry through websites like Facebook, Twitter and Myspace. Ever since it has developed bringing in more industry specific social media such as Tripadvisor.com. Many airlines have started engaging customers through Twitter streams without much study on their use. Due to the lack of strategy, customers concerns and complaints are not easily taken careof by many airline companies using the social media. Though many scholars have researched about social media none has looked into the impact that social media has in the Airline industry. This study tries to bring out a better understanding of social media in this setting. An examination of social media and the airline industry will be done in this research especially since most firms shy from the use of social media. The effect of social media on airlines and how to effectively utilize it in these companies has been elaborated in the study. This report intends to educate and aid the Airline companies to develop strategic responses to utilize social media as a marketing tool. Social media helps to build brand loyalty by deciminating exclusive information, thereby, aiding to cut advertising budgets and increase revenue. Use of Social Media Social media has completely influenced the way firms are operated and interact with consumers by providing a big change in the field of business and marketing and communication strategies initially, a number of firms worked hard to gain their customer’s attention (Manoff, 2007). Nowadays, internet social media has made the customers more active and they are more involved in finding information concerning the organization of interest. At the initial time, business organizations embark in acquiring the latest methods of internet social marketing as they seek to increase their profits. Catherine, 2008, states that this situation brings in the notion of quantifying the benefits accrued in terms of monetary. This is especially imperative for little scale organizations that cant bear to use much on promoting for making mindfulness. By having a presence over the social networking, these little organizations can produce purchaser investment and profit from positiveword of mouth. Fast growing geo-marketing is an example for modern marketing.Due to importance of internet social networking it is very crucial for companies to be in social networks as a brand should also be as a "person" who interacts, shares and conversation (Kotler, 2009). Need for Social Media Marketing From the literature review, it is evident that the social media presents a big marketing potential. The survey by Universl McCann revealed that 57 percent of active online individuals are using the internet for social networking purposes making it the most prominent platform for potential marketing purposes (Lauren, 2005). 1. 36 percent of consumers like companies with blogs 2. Individual blogs are the most visited, Internet sites for television shows, music, movies and news follow after 3. In the number of internet users to ever read a blog, the United States is ranked twenty with a percentile of 60.3, Ranked number one is South Korea with a percentile of 92. 4. Bloggers’ were found trust worthy on their opinions for products and services by thirty two percent of internet users. AISAS models Work with Social Networking Social sites can get the consideration and attention of customers by showing standards, data, and so on as they cant depend on customary systems for correspondence e.g. Television and print promotions. Intrigued clients will be looking for more information to make choices. This helps organizations to spread their message for a minimal effort since intrigued buyers who are not able to purchase the item can at present offer, subtle elements through interpersonal interaction as this model can work from multiple points of view than the customary AIDA model. As far as correspondence it may work in four courses as clarified in the above chart. Social Media if used can help an organization get the starting consideration towards an organization by enhancing the distributed photographs, features, commercials, ebb and flow issues as well as through connecting individuals. The CSR parts and administration information is sent with the sole purpose of maintaining the consideration of the news articles, buyers, travel bundles, future development. Once the intrest is achieved then, promotions such as, ease tickets and different offers will make the purchasers to pursuit more data before taking choices. This will not only increase their urge to buy it will directly increase the credibility of the administration and gather the urge to purchase. Social systems administration can do this procedure transcendently as it can regulate the buyers to e-ticket locales or travel operators who are accessible in the net and make a sale. Individual ideologies and experiences will drive both positive and negative criticism of the implementation. Impact Social Networking has in the Airline Business Some airline carriers often dominate the airline business. The recent economic downturn in the oil costs has made the airline business seriously aggressive. In 2008, there was a loss of 16 billion dollars in the carrier industry emulated in 2009 by 9.9 billion dollars. IATA’s recent monetary figures implied that bearers expect to secure in 2010 an approximate 2.5 billion dollars. Social networking, in securing Web 2.0 innovations attributes with the capability to fasten business methods, lengthen social contacts, improve interaction with client, manage recruitment of proficient workers and change perspective of the workers enhancing their spirits and employment fulfillment. The fact that there is an increase in interpersonal relationships and it has reached its at most peak, traditional administrations systems are streamlining and competing for dominance. Customer’s behaviors and needs are currently changing due to the implementation of Web 2.0. for example, in informal organizations Youtube, Myspace and facebook among others if compared to the internet have more influence in changing commercial ventures since they allow the customers to personally communicate, without the interference of the company(Boynes, 2008). In the digitalization of commerce, the emergence of the internet was the first step; social media introduction was obviously the second step. It has catapulted business ventures to a new dimension mainly due to its introduction of Smartphone’s. it has also single handedly changed the initial push" strategies into "pull" as clients are not getting sucked into the service or product mainly due to the advice of the people using the social networks. However, airline businesses have to be careful since any small error can cause a ripple effect over social media and lead to a bad image for the company (Catharine, 2008). One advantage of the social media is that it aids the airline business to effectively offer their products to the clients as well as provide direct interaction. As opposed to the formal ways of marketing where you personally have to meet potential clients. Social media makes the process easier in that, the marketer just posts a banner with a short and detailed description of the services and products on offer, which if successful gets the advertisement widespread on the internet spreading the popularity of the business concurrently. Organizational changes starts mainly through social media strategies. One problem identified by Rice is that most organizations often get their advertisement strategies wrong while using the social media platform. It is evident that the pros of using social media are numerous but they are attainable only through exercising vigilance. Businesses also find social media beneficial. Both ventures that are available online networking and offline, cannot deny the fact that the growth of social network has a direct effect on how they operate. Methodology The primary role of this analysis is show that social media interaction has a big part to play in the airline venture. Known carriers, for example Virgin British and America Airways, jetblue, Southwest among others have started social media interactions which has transformed their strategies in an extraordinary way by reducing costs, improving client satisfaction and cultivating brand loyalty. Research Method The analysts have incorporated qualitative research in this study, which involves obtaining aids in identifying interactions between different variables and data in numeric structures. It involves developing strategies and tools and information acquiring structures to examine the hypothesis. In regards to the objective of the study and purpose, qualitative research methods will fit the research. In the analysis, the qualitative research method is used throughout. Since the information mostly depends on the quantitative side of the study, it then makes the research independent from the mixed method structure. The links between the various numeric variables used within the analysis are tested through the qualitative analysis. The qualitative aspects, in any research play a major role mainly due to the detailed description they contain. Data Collection Questioners were used to gather the main information while the tertiary or secondary data was obtained from previous analysis. Various online libraries provided helpful data related to the study subject the analysts extracted different sections for the relevant information associated with the topic at hand. All these sources joint help obtain useful knowledge to improve the theory part of the topic. To support the subject and critically review the main aspects associated to the impact of social media divergent theories were adopted. This is a vital section of the study since the qualitative side of the study had a lot of significance. Through a rigorous literature review copying white papers, scholastic writings, famous media books and articles, the following sub-sections associated with social media on the airline venture were analyzed. Critical analysis has been carried out on the beginning of social with the purpose of attaining its impact on the airline carriers. Sample Size For the study, the analyst used 50 participants through random sampling method. With a steady aim of attaining credibility, viability, and reliability of data used in the study, analysis of the data is attained by implementing different relative sources. Discussion Currently within the airline venture, it is practically impossible to do away with social media use. Social networking is today use by a large part of the airline shuttles to improve and recreate their client relationships aspect, which initially were on a one- on-one basis. Twitter or Facebook fan pages are the most commonly used by most airline business and so far it is clear it has brought considerable returns due to its unique and informal communication strategy. Inside the airline business social media has helped open many transformative communication platforms in the venture. Social media usage improves client feedback and interaction by reacting to the online interaction and proactive observation. The online fast social networking interaction lessens pressure and anxiety for the clients who have in some way misplaced their luggage or missed their flights. For example the UK, low cost carrier, easy jet have in excess 45,000 loyal clients. According to the analysis of Field in 2008, Virgin Atlantic and airbaltic respectively have over 8000 loyal supporters. American Airlines on the other hand have use facebook as a platform whereby they elevate Travelbag, as a channel where customers have the ability to share their experience and arrangements in addition to establishing advance booking for upcoming events, occasions or tours. As suggested by their travel advisors they are attempting to segment its clients along with identifying their specifications or likes. The whole world is advancing technologically mainly through the consistent upgrades in ICTA upgrade in many sectors. The twelfth yearly SITA/Airline Business Airline IT Trends Survey, out of 129 carriers that participated, 56% normal an increment in IT use one next year, with just 10% expecting a decrease. As being recouped from the financial downturn, the survey indicates how worldwide expenses keep on influencing IT methodologies. Individuals are increasing trying to take care of their everyday activities using their cellular devices. With the development of the social media, the mobile phone has turned into a fundamental piece of their life as they get used to mobile social connections. This is a potential effect for the Airline business as they have officially begun online advanced advertising, for example, E-tickets, E-flyers, and so on. Carriers are progressively utilizing online networking to improve travelers travel experience. As indicated by the pioneers of social seating in the airline industry, the projects are prevalent with a considerable lot of their travelers. Malaysia Airlines, case in point, reported having more than 30,000 travelers utilizing its Mhbuddy social seating program month to month in 2012. A couple of months after KLM propelled its Meet & Seat program in right on time 2012, more than 2,200 travelers had subscribed. KLM Royal Dutch Airlines well known as one of the biggest carriers on the planet. They pull in future clients in exceptional ways and turn them to paying clients. They began online networking in 2009, after some disappointment they came out with good ideas. They developed applications that could aid the clients pick their seatmates mainly through collaborating with social sites like Twitter and Facebook among others. This was named "meet and seat,” After travelers pick the seat mate, they can correspond with them utilizing social sites like Facebook before they meet for the flight. The above is one efficient example where the company implemented Social networking to their advantage. Carriers build their client’s fulfillment with the assistance of social media since it can give better aid, propose or offer ideas to others. As to buyer conduct, organizations have given more attention to fulfillment. The travelers settle on the best decision and get an acceptable picture of whats in store from every carrier, for example, services and items E.g.-: suppers & beverages offered, in-flight diversion, group administration gauges and so on furthermore impart their thoughts by transferring pictures, features and notices about their staff encounters on Facebook, Twitter and so on. It is obvious there are some cases that cannot be helped like for example union strike, climate changes among others which often leave a bad image on the customers. Therefore, the air transport should have the ability to handle such matters. Example, the jetblue CEO recorded on Youtube and seemed worried for the fliers due to the unpredictable snowstorm delays that occurred in 14 February 2007 a gesture that gained a positive input. From the reactions, examined social networking platforms enhance reach and advance campaign messages and airline industry exercises. Through the exploration, it shows it has the capacity to affect client’s disposition, feeling and information about airline related issues. This will empower a scope of chances to tailor messages and captivate people in general in a discussion about air transport advancements, which would enhance dedication and trust. Making of a Facebook, Myspace, Twitter, Blog or discussion under an organization name is not social networking. In an instant most of the airline organizations have initiated distance informal communication yet still divided from other air carriers, most do not engage in dynamic social communication, which suggest that they never use social media to improve their ventures. Conclusion In conclusion, social networking assumes a critical part in the current advertising world. Despite the contradiction as to the real impact of social networking marketing in the airline business it is evident it has beneficial implications for marketing, client interaction, public relation and campaigns promotion. As a large portion of the Airline organizations have not grasped social networking unmistakably there are potential open doors, which the Airline business can use and make Social media as an advertising apparatus. With the development of social media communication and mobile practices, clients attitudes are changing quickly as they search for more persuading and special customer services. To encourage this change, Airline organizations must need to assemble a solid response, which can build their organization goodwill, market share and image by drawing in more customers. More research is obliged to expressive the precise effect of social networking on purchaser mindfulness, behavioral change, nature of rivalry and B2b opportunities. Coordination of online networking material and cooperation with carrier organizations at all levels of the government will become progressively crucial. Read More