Growing Customers Travelling by Airlines - Research Paper Example

Executive Summary The study carried out to find the different factors which have an influence on a consumer choosing particular airlines shows different reasons influences different customers. The study was carried over a section of a population that has travelled by airlines irrespective of age, sex, psychographic and behavioral characteristics. The research was conducted through the method of conducting interviews over different respondents. It was seen that the respondents had a preference for low cost airlines and provides various important implications for the managers. It shows that a manager by inculcating the different findings can improve their strategy and have a pool of loyal customers. The research is further limited to the fact that the sample size is small and might not represent the entire population. The research helps to find out the following Customers prefer airlines who offer tickets at a lower rate followed by the timing of airlines and services so that their overall customer experience gets enhanced Customers have a preference for low cost airlines especially while looking to travel at domestic destinations which requires shorter time to travel to the stated destinations Table of Contents Introduction 3 Purpose of the Study 3 Significance of the Study 4 Limitations of the Study 4 Research Method Used 5 Findings from different interviews 5 Factors determining the purchasing habits 10 Implications for managers 11 Conclusion 13 References 15 Appendix 18 Introduction The manner in which more and more people prefer airlines and the growing customers travelling by airlines due to the increase of low cost airlines has made most of the airlines to find out the different factors which have an effect on the consumer while choosing a particular airlines. Statistics of people travelling shows that the number of people travelling by airlines has grown exponentially over the last 20 years. This is on the backdrop that the disposable income of people is under due pressure due to rising cost and expenses (Mehdijou & Momeni, 2006). This has made it imperative that airlines look towards understanding the different attributes which have a role in customers determining the airlines they will choose. The importance of this increases when a look at the number of people using airlines for travelling during vacation has grown to 68% as compared to 65% in 2008 (Corsini, 2009). This has made all the more reason for the airlines to look into the different factors which has a role in customer choosing a particular airlines and understanding the same from the customer perspective is more important for the success. Purpose of the Study This study is conducted to find out the different factors which have a role in determining the customer preference for choosing a particular airline. While looking to determine the factor which has a role in customer preference for a particular airline a research is carried out where different people travelling by airlines is interviewed so that the actual factors can be identified. This will help to understand the factors which determine customer purchasing habits and help to find out the different areas which the airlines need to work on so that more and more customers can be made loyal towards the airline. This study will thereby help to determine the different factors working on which the airline will be able to ensure regular customers and also have a pool of loyal customers. Significance of the Study The study looks towards gathering primary data by conducting interviews of different personnel who has used the services of the airlines. This will help to improve the finding of the study as it will help to determine the factors which are presently relevant and have a role in customer purchasing habits. Further, since it looks towards conducting interviews so fresh data pertaining to the customers can be gathered. This will thereby help the user of the findings to make major implications which when worked on will help to improve the quality of service and ensure better customer satisfaction (Chrisan, 2001). This method also suits the study because experiences differ based on customer preference so being able to identify the common factors that have a role in shaping the customer purchasing habits will help the airlines to ensure that the different departments are able to work on them and ensure customer satisfaction which will thereby help to improve the business. Limitations of the Study The study is limited to the fact that the sample size used in the research is small and might provide a different result when more and more people are included. Further, the fact that no comparison is being made with other mode of transport will just look to ensure that the data pertains to airlines and might have helped to find more factors which have a role in determing the customer purchasing habits. Research Method Used The study looks towards using both the primary and secondary data in determining the factors that have a role in determining the purchasing habits while choosing an airline. In case of primary data people who have travelled by airlines are interviewed so that their views and factor which have relevance on their purchasing habits can be identified. This is backed by secondary data which looks to strengthen the previous findings. This will help to substantiate the previous factors which have a relevance of purchasing habits of customers and conducting the research based on the method of interview will ensure that the relevance of the study increases. The research method will thereby ensure that the findings from the study will help to understand the different factors which the airline operators have to identify so that customer satisfaction can improve and better services can be provided to the customers over a longer period of time. Findings from different interviews The findings from the different interview conducted over different persons shows that different people have a different preference for different factors while looking to choose an airline. It is seen from the different replies provided by different customers that different factors have played a role in determining the airlines they choose. The problem for this multiplies when the differences between the age profile, demographics, behavior of person is considered. It is seen from the different interviews that cost associated with the airlines is one of the most important factor that customers look into while choosing an airline. This is primarily on the fact that the growth in the low cost airlines has provided the customers with an opportunity to look towards them. This can be seen from the following graph The above chart shows a preference of both men and women where men have been depicted in green and women in blue irrespective of their age and income level. The overall finding shows that women look towards cost as an important aspect which selecting an airlines as compared to men (Khouw, 2001). Basing the study on different factors it is seen that customers look towards cost as a very important aspect and the magnitude of it increases especially in case of women (KhajehNasiri, 2008). This thereby makes it important that airlines realize the fact that people are still price conscious and prefer airlines which are cheaper. Now when we look to rank the different factors which the customer have identified in the interview will further help to understand the manner in which different factors have relevance among the customers. The following rating has been determined on a scale of 1 which is the most important and going upwards to the less important factors. Factors Interview 1 Interview 2 Interview 3 Cost of Ticktes 2 1 1 Timing of Flight 1 2 2 Services 3 3 4 Past Experiences 4 4 3 The findings of the different factor helps to substantiate the fact that cost is still the most important factor that has a role in determining the factors which will make the customer choose a particular airlines. The interview conducted shows that customer looking for domestic destination looks towards having tickets at lower cost so that they are able to ensure that the person is able to travel from one place to another at the most economical rate. The finding further shows that timing is another factor which helps to determine the role in choosing a particular airline. The fact that different customers prefer different timings to travel and would look towards choosing airlines which ensures that the customer is able to reach the place as the desired time is another factor which determines the customer purchasing habits. This has thereby made it important that airlines look towards identifying the timing at which they will run flights on schedule routes so that they are able toensure maximum customer satisfaction (Nesaee, 2009). Apart from these factors services is another factor which has a role in determining the customer preference towards particular airlines. Customers look towards the services which include both on the ground and in house employees’ services. The findings from the study show that customers looks towards improved services. This makes it important that airlines looks towards developing their services in a manner which helps to improve services so that customers are able to get a good return on the money they invested to purchase the tickets (Firoziyan, Hasangoli & Stiri, 2009). Past experiences also have a role in determining the customer preference for particular services. The past experiences arise due to the quality of service that the customer has received previously and helps to determine the customer purchasing habit. This thereby confronts to the fact that the customer remains loyal to an airline of the past services or experience that the customer had with the experience is satisfying (Loudon & Della, 2002). This helps to understand the role of ensuring quality service all the time so that the customer is able to enhance its experince which will help to make the customer choose the same airline again and again. This helps to bring forward an important finding based on the interviews conducted over different customers that have used airlines. It is seen that customers have a preference for low cost airlines due to the fact that the prices of the tickets are low and the services provided is nearly the same as other airline providers (Mousavi, 2009). This is depicted towards the following chart The above chart highlights the growing preference of customers towards low cost airlines which has also been witnessed through the interview conducted. This makes an important finding for the airline operators that they need to provide quality services to customers at a lower price so that more and more customers can avail the services and look towards increased customer satisfaction (Kotler, 2009). The findings from the different research bring forward the fact that different factors have different relevance on the customer preference towards the airline they are going to choose. Price is one of the most important determinant which has an influence on customer preference towards a particular services which requires that the airlines is able to develop strategies which will ensure increased customer satisfaction and chances of having a pool of loyal customers. Factors determining the purchasing habits The findings from the interview conducted helps to highlight different factors which have relevance on the purchasing habits of customer looking to choose an airline. It helps to highlight the following factors which has relevance on their purchasing habits Price: This is one of the most relevant factors which have an effect on the consumer looking to choose a particular airline. Consumers are seen to be price conscious and prefer to choose airlines which have lower fares. This is also seen from the increase in low cost airlines which looks to provide customers with an opportunity to travel from the airlines at the most cheapest price. Price thereby determines the purchasing habit of customers and has a large role to play in the purchasing preference of airlines for the customers (Dadfar, 2009) Flight Timings: Another important factor which determines the customer preference for a particular flight is the timing of the flights. People look to have tickets booked on flights which will ensure their convenience and also help them to travel at the desired destinations at the correct time (Kotler & Armstrong, 2006). Timing is seen as a preference for many customers as some section of the society prefers morning flights whereas some prefer late night flights. Airlines thereby have to ensure that they have the correct timings for the flights on the scheduled routes so that they are able to have maximum customer flow (Daniel, Charls & Joseph, 2003) Services: Services also influence a customer preference towards a particular airline. Proper services both on the ground and the airlines shape the purchasing habit of the person. The ability of the airline to provide quality service to all customers whenever the customer comes in contact with the airlines. This will help to improve the customer satisfaction as it will help to ensure that the customer becomes more satisfied and will look towards using the same services again and again (Berkman & Gilson, 2001). Past Experiences: Customers also look towards using the same airlines again and again if the customer had good experiences before. A good experience will help the airline to earn a loyal customer as seen from the interview. This thereby highlights that airlines need to ensure that they continue to provide quality services to the customers so that they become loyal and their experiences with the airline provides them a soothing experience and makes the customer to look for the same services again and again (Awni, 2008). Implications for managers The study helps to find various implications for the managers which when developed into their strategies will help to develop the business further. The managers based on the different findings can use it to develop their business and have a pool of loyal customers. Since, the information has been gathered directly from the customers so working on the different aspect will help to improve the quality of services. The first implication or learning for managers is the importance of understanding the fact that consumers still look towards prices as one of the most important determinant while selecting a service. This makes it important that managers look to find out the most competitive rates that can be offered. This has made the airline operators even look towards following a strategy of JIT where customers coming early are offered seats in the airlines in the most competitive rates. The airline operators use the strategy where they offer the customers the lowest rate when they book their tickets early and then the price of the tickets rises as the date of departure comer near or number of seats reduces (Hawkins, Best & Coney, 2006). Thus, the managers have to understand the importance of following the same strategy which will ensure lower prices for the tickets The manager apart from it has to look towards ensuring that the flights are available at the most appropriate time. This will require that the manager based on the interview conducted upon customers looks towards identifying the time which has the maximum customers’ footfall (KhaliliArdakani, 2009). This will help them to ensure that they run their flights on the designated time so that more and more customers flow in and will help both the airlines and the customers. The customers will be benefitted as they will get the airlines at the designated time. This will also help the airlines to ensure a good flow of customers which will help them to ensure a higher bargain in comparison to other timings when the flight is scheduled (Mowen & Minor, 2009). Another implication for the manager is to ensure that they provide quality services to the customer. This will help to enhance the customer experience as providing good services will ensure that the customer carries happy memories. This will influence their decision making in the future as the past experiences will guide them to choose the same airlines. This will also provide multiple effects as the customers who had a good experience or a bad one will communicate the same to others people who are related to him (Ismailpour & Ghafarieashtiyani, 2002). This will help the airline operators in spreading awareness. Being able to provide good services will impact it positively and will help to spread a positive name. This will also help the airlines to differentiate themselves from others and will act as a guide through which the airline is able to ensure that they have a pool of loyal customers who might even be willing to pay something extra for quality services (Khaju, 2009). This is an area for a manager that needs to be worked out and developed. Thus, the findings from the research bring out various implications for the managers which when worked on will help to improve the quality of service and ensure that the airline is able to develop itself. This will require an effort from all the departments to ensure that the customer requirements are met due to the fact that customers’ decision making is influenced by different factors and being able to ensure those will help to have a pool of loyal customers (Griffin, Barry & William, 2003). Conclusion The research carried out helps to identify the different factors which have an influence on the consumer while looking to choose the services of a particular airline. The research indicates that consumer look at prices while determining the airline they will choose followed by timing and services. This is a situation when the domestic airlines are looked into. An interesting point to note here is that the people who were interviewed travelled to domestic destinations which were at a shorter duration and might vary when international destinations or destinations which require time is chosen. This also presents important implications for the manager which when worked on will help to improve the quality of services. The manager based on the different findings need to ensure that it is replicated in their strategies so that customer satisfaction improves and the airline is able to find a pool of loyal customers. In addition to it the research also shows that people has a preference for low cost airlines the number of which has grown over time. Thus, looking into the different factors and developing them will help the airlines to ensure that they have a pool of loyal customers and are able to provide quality services to the customers thereby rendering higher customer satisfaction. References Awni, R. (2008). Strategic position indicating. Translated by SeyedAmir Poya seyfzadeh, Management Selected Monthly, no.78, p.70. Berkman, H. & Gilson, C. (2001). Consumer Behavior Concepts and Strategies, Kent, Boston Chrisan, P. (2001). Marketing: A Behavioral Analysis, McGraw – Hill. New York Corsini, R. (2009). The Dictionary of Psychology. Philadelphia: Brunner/Mazel, p.19. Dadfar I, (2009). Identification and prioritization of the effective factors on buying airline tickets. M.A thesis, Tehran University, Tehran Daniel, C., Charls, L. & Joseph H. (2003), Marketing, 5th edition, south-western. New York. Firoziyan, M., Hasangoli, T. & Stiri, M. (2009). Investigation of the effectiveness of the services on different processes affecting consumer decision. Commercial Management Magazine, 1 (3), pp.125-146. Hawkins, D., Best, R. & Coney, K. (2006). Consumer behavior, compilation of the marketing strategy, Translated by Ahmad Roosta & Atiyeh Botahi, Sargol publication, Tehran. Ismailpour, H. & Ghafarieashtiyani, P. (2002). Marketing, 3rd edition, Auniversity of Tasmania, Australia KhajehNasiri. E. (2008). What is the consumer behavior or customer behavior, The Times New York Company Khaju, H. (2009). Investigation of the relationship between price and profit in market of the airlines. M.A thesis, Australia KhaliliArdakani, M. (2009) Investigation of the relationship between proportionate aspect and percieved social responsibility on consumer behavior. M.A thesis, Australia Khouw, N. (2001). The meaning of price for gender. Journal of International Marketing, p.90 Kotler, P. & Armstrong, G. (2006). Marketing principles, Translated by Bahman Frozandeh, Amokhteh Publication, 5th Publication, Esfahan. Kotler, P. (2009). Marketing management: analysis, planning, implementation and control, 1st Publication, Translated by Bahman Frozandeh, Atropat Publication, Esfahan. Loudon, D. & Della, B. (2002). Consumer Behavior Concepts and Application. McGraw- Hill, New York. Mehdijou, A. & Momeni, H. (2006). Australian Airline industry article, the past and the future, strategic planning and studies center. Saypa Group, pp.4-6 Griffin, M., Barry J. & William R. (2003) Consumer Assessments of Responsibility for Product-Related Injuries: The Impact of Regulations, Warning and promotional policies, in Advances in Consumer Research. Association for Consumer Research, no.2, pp.870-878. Mowen, J. & Minor, M. (2009). Consumer behavior ,internal and external factors, McGraw- Hill, New York. Mousavi, N. (2009). Investigation of the effective social factors on decision making for buying airline tickets. M.A thesis, Shahid Beheshti University, Tehran. Nesaee, V. (2009). Marketing techniques and principles, Terme Publication, Tehran. Appendix Interview 1 Respondent Demographic, Psychographic, Geographic and Behaviorial Characteristics The respondent was a 37 years, male, who is a business personnel and looks towards using airlines for reaching different destinations. The person is a frequent travelers and looks towards quality services while choosing the airlines When did they travel by the airline? The last time I had travelled by airlines was a month back. This was not the first time that I had travelled by an airline and I am a frequent traveler using the services of airlines. Which of the recent airlines did they travel with? The last time I had travelled by Virgin Airways as I was moving to a domestic destination and the availability of flight for the destination made me take this airline What factors played major roles in choosing this domestic airline? There were different factors which have determined the airline which I would choose. To rank the different factors which I had considered were firstly timing of the flights, the cost involved in travel, the time taken to reach a destination by which I mean whether it was a direct flight or not, and finally the past experiences that I had with the airlines What are their good and bad experiences of travelling with this airline? I have a mixed reaction as I found that certain areas the flight was very good whereas in other cases I was not very pleased. The flight on the first instance got delayed due to the fact that it was going to come from another destination. The quality of food served and the ground clearance time was also very high which increased the waiting time. The staffs in the flights were courteous and helped by providing whatever I asked for. The time taken to pick up the luggage from the lounge was good as the ground staff cleared the luggage quickly and ensures proper service and help. What they would be looking forward if they select the same airline next time? To choose this particular airline in the future will depend on the availability of other flights as on a personal level I would look towards using the services of other airlines before I pick this airline because the experience which I had was not totally satisfactory Interview 2 Respondent Demographic, Psychographic, Geographic and Behavioral Characteristics The respondent was a 23 years, female, who is a student and was using to use the airline services to go out on a vacation. The person is using the airlines for the third time and is not a frequent traveler When did they travel by the airline? The last time the student has travelled by the airlines was a week back when she was going on her vacations Which of the recent airlines did they travel with? I had chooses Virgin Airlines because the through whom the tickets were booked chosed this airlines and was also cheap in comparison to other airlines What factors played major roles in choosing this domestic airline? The most important factor which determined my choosing the airlines was the fact that the airline provided by agent was cheap. Secondly it also fitted my timing as I wanted to reach the place at a particular time and other airplanes were not available for the allotted time. Since, I had not travelled by the airlines much so there were not many factors which determined my choice of airlines What are their good and bad experiences of travelling with this airline? I was happy with the services as I was looking for a windo seat and I got it. Further, the flight was on time and the staff both on the ground and the airline was very helpful. In addition to it the food which was served in the airline was of ggod quality. I was also happy with the fact that customer services that the airline provided What they would be looking forward if they select the same airline next time? I would look towards selecting the same airline in the future if I am given an option to choose. This is on the backdrop that the airlines services were of high quality and I was totally satisfied with the services. In addition to it the price is also low and the service provided is of high quality which ensures proper service satisfaction. Interview 3 Respondent Demographic, Psychographic, Geographic and Behavioral Characteristics The respondent was a 28 years, male, who was going on a vacation trip with the entire family. The person is a frequent travelers due to the nature of the business the person is involved in and looks at services while choosing a particular airline When did they travel by the airline? The person along with his entire family had travelled by the airline around 15 days back Which of the recent airlines did they travel with? The person and his family had travelled by Virgin Airlines because of the fact that the number of people travelling together were high and the tickets of the airlines was available at a cheaper rate in comparison to other airlines What factors played major roles in choosing this domestic airline? The most important factor that played a role in choosing the airline was the price. This was followed by the service quality and since the person had a good experience on the previous occassion so it was easy to choose this airline. Also, the timing and the availability of seats ensured that this airlines was chosen. What are their good and bad experiences of travelling with this airline? The experience was a terrible experience because what I had actually planed out turned opposite. On the first instance the flight was late by 3 hours. Then the staff both on the ground and in board was very rude. The food served was cold and the staff was not helpful at all. In addition to it the luggage which I had received after getting down from the airlines took me more than 1 hour due to slow clearance. The overall experience was vary demoralizing and created a negative impact. What they would be looking forward if they select the same airline next time? I won’t be looking to choose the same airline again as my past experience was terrible. The fact that I was totally dissatisfied with the services would mean that next time when I choose an airline I will look at the service as my priority and look to match the service quality with the price charged by the airlines. Read More