Chapter2 Literature Review
1) Flight experience
Started from 1980s, the air transportation industry has intense market competition and many countries deregulation the controls on the air transportation (Ko,2010). Numerous researchers have reported that airline management and strategy under a competitive in full-service carrier (FSCs) market (Bailey et al. 1990 and Strassman ,1985)observed that in the USA. Asia regional markets have more airlines and larger airplanes in general than Europe or North America, is a large international routes. It is easier to get into different destination (Swan ,2002) .
2) Willingness to pay
With reference to J. Rose, D.A. Hensher,2004, they mentioned stated choice method for design attributes and related to the
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Snyder, Canisius College, USA, behavior-Performance Factor and Price-Convenience affect customer satisfaction. With satisfied customers engaging in more word-of-mouth (Holmes and Lett, 1977; Swan and Oliver, 1989; Brown et al., 2005;Babin et al., 2005). Others have found a negative relationship – with dissatisfied customers engaging in more word-of-mouth (Bearden and Teel, 1983;Westbrook, 1987; Hart et al., 1990). Other studies have not found any significant direct relationship between the two constructs (Engel et al., 1969; Bettencourt, 1997) Revealed that satisfaction plays a direct role in enhancing passengers’intentions to become involved in word-of-mouth activities and repurchase. ( Gour C. Saha and Theingi …show more content…
SEM model was testing and used all possible factors measuring the constructs. Ching Fu-Chen(2008) The collected survey data were propose on SEM model and hypothesized paths are tested. The measurement and structural models are tested using the LISREL 8 structural equation analysis package (Joreskog and Sorbom, 1989). Analysis to examine the perception and overall expectation, which factors affecting consumers’ choice.
Secondly,
In this regard, most of the literature did not go into details which tangible or intangible quality people cares, most studies just state which factors is important but didn’t rank the factors. Through analysis and test by using the structural equation model (SEM) direct, indirect and total effects were compared on the basis multiple relationships. Factors of consumers’ choice (Yunus,2013), such as consumer trust, value, and loyalty in relational exchanges, business-to-business electronic information exchange,
E-commerce (Smith, Barry C; Gunther, Dirk P2001)and production and marketing (Lu, Wen-Min; Wang, Wei-Kang2012). Assessing the factors affecting customers’ choice on low-cost carrier (LCC) and full-service carrier
Assignment #1 Introduction Air Canada was established in 1937, provides scheduled and charter air transport for passengers and cargo to 182 destinations worldwide. It is the largest airline of Canada by fleet size and passengers carried. Air Canada is governed by an eleven-member Board of Directors committed to meeting high standards of corporate governance in all aspects of the Corporation’s affairs. Our Mission – “Connecting Canada and the World” Our Vision – “Building loyalty through passion and innovation” PESTEL Analysis: Political Factors: "The 'Open Skies Agreement ' between governments of US and Canada in March 2007 came into action as it liberalized the air transportation services.
Case Analysis #1 – “Southwest Airlines: Is It Still the King of Cheap Flights” 1. Answer the questions at the end of the case. 1. Airline customers can be segmented in a variety of ways. Two of these include by purpose of travel and their destinations.
Answer: (a): Market segmentation is the first step in defining and selecting a target market to pursue and penetrate. Basically, market segmentation is the process of splitting up an overall market into two or more groups/classes of consumers. Each group of consumers is called as a market segment. Each group (or market segment) should be similar in terms of certain characteristics or product/ service needs. In business world, market segmentation is considered to be a most important tool in enabling marketers to better meet customer needs and requirements.
For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
Hong Kong Dragon Air is Hong Kong-based international airline, belonging to of the Cathay Pacific Group. The airline was established in 1985, and operates a fleet of narrow-body A320s and A321s, which were both powered by V2500 engines manufactured by International Aero Engines AG (“IAE”) for both passenger and cargo service to destinations to destinations across the Asia-Pacific region, and China. Their vision is to be the World’s best regional airline serving China and beyond. Their missions; places emphasis on safety and operational excellence with customer focus. The airline seeks to embrace innovation by implementing ideas that improve their business.
EXECUTIVE SUMMARY TABLE OF CONTENTS Executive Summary 1 Introduction 3 Competitive Situation 4 Variable Costing 5 Existing Costing System 6 Diagram ABC 8 Activity Based Costing & Profitability 9 Conclusion 14 Bibliography 15 INTRODUCTION COMPETITIVE SITUATION Firstly, here is a brief description of what Wilkerson Company specializes in. According to our case study and various online sources, Wilkerson manufactures and markets a complete line of compressed air treatment components and control products.
Executive Summary JetBlue Airways is a company that applies innovative technologies to offer high quality travel services at a lower cost (Shrivastava, 2012). A SWOT analysis of JetBlue airlines shows that despite the numerous opportunities and strengths it has, it is exposed to threats and weaknesses that pose challenges in its operations. The threats include issues like strong competition from other airlines and the volatility of the fuel prices. JetBlue Airlines is relatively new to the market when compared to its major competitors such as the Southwest and Delta Airlines. Most of its strategies have worked to its benefit.
(Jacoby, 1971; Jarvis & Wilcox, 1976). Dick and Basu (1994) propose that customer will be loyalty to the brand is the result of psychological processes and has behavioral manifestations. Therefore it should incorporate both attitudinal and behavioral. Satisfaction is recognized as an important element for loyalty in both the consumers and business marketing. Satisfaction with previous purchase experiences plays an important role in determining the future purchase behaviors particularly call as an effort-minimization strategy (Jones and Suh, 2000: Pritchard et al, 1999).
Social Growing competition and capacity amongst airlines, lower air fares and more relaxed travel restrictions in many regions have made international travel a viable option for an increasing number of people coming to
Delta created its separate subsidiary in response to competitive threat of low-cost airlines. In addition, its subsidiary used pilots of its parent airline with independent decision-making authority. Does song have an effective strategy? Evaluate strategies by using three tests of effectiveness? Low-cost airline: Faster growth of low-cost aviation industry with homogenous service makes this industry fragmented across the United States.
With a rise in fuel prices and environmental factors (such as terrorist threats) reducing air travel, airlines continue to struggle. In union environments, where staff (like pilots and flight attendance) is heavily unionized, the industry has not been able to cut their labor costs. New low-cost industry entrants are adding to the pressure the traditional
1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).
This deals with a customers’ perception that a product or service they are buying provides them with a higher value than a competitor. Superior quality can be broken down into two kinds of attributes: quality as excellence and quality as reliability. A customers’ perspective of quality as excellence would be that they want a product or service that provides features and a level of service that has no comparison. With regard to quality as excellence, if customers perceive that the products design, features, and functions are better than everyone else, then they would be more likely to buy their product. Higher quality products allow for a higher sense of value provided to the customer.
Customer loyalty is one of the most important and critical factors for a company's success. Customer loyalty happens when customers have a great experience, and it leads to many benefits: loyal customers return for future business, refer friends and family to a business, and spread positive comments about a company through word-of-mouth advertising. With social media and the ease of rating companies. There are several factors that can influence customer loyalty. First the place and product, which means how easy is it for customer to access the place, Second is promotion There are many ways to promote the business, from pricing specials to free gift with purchase.
Until today, this incident is still affecting Malaysia Airlines in different aspects. Especially, on their corporate image, reputation and finance. Not only Malaysia Airlines, but the image and reputation of our country are also being affected because Malaysia Airlines have strong bonding with the government and they as a representative role stood out to speak for Malaysia Airlines. Malaysia government had given a very bad impression to others on their crisis management and crisis communications. Experts criticized their crisis management by saying “crisis in managing crisis” and “make a crisis worst” due to their failure in crisis communications.