2.1.1 Customer decision-making process
Customer decision making is a very wide area which needs excellent understanding of all aspects involved. It includes questions such as what we buy, where we buy it and how we buy it. Managers would love to know all the answers.
Five stages in the decision-making process are: customer problem or requirement; gathering information from external and internal sources; customer evaluation of different options of similar products or services; final decision to choose specific product or service and, lastly, post-purchase evaluation.
Rosenberg et. al (1980) describe decision making as a "mental process and is greatly under the influence of individuals' attitude towards a particular activity, a social entity,
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According to Wallace (1965), there is a direct link between consumer behaviour and culture. Managers must analyse cultural differences in order to make a proper market segmentation. The importance of cultural diversity is recognised by airlines. For example, Virgin Atlantic hired a consultant agency to examine on which routes cultural differences are greatest and to what extent they impact passengers´ in-flight comfort (Intersperience, 2013). Sub-cultural segmentation means that even people living in the same community have different preferences. This has to be considered in the marketing mix and selection of advertisements (Sun and Wu, 2004). Social class can be defined as a group of people living a similar lifestyle. Therefore they can afford to buy e.g. similar houses or cars (Hoyer and Maclnnis, 1997). In the Czech Republic, the capital city consists of a larger upper social class than other cities, as reflected in the origin of passengers departing from …show more content…
Airline services must be delivered on time and correctly. Multiple studies show reliability and assurance dimensions had the highest score within the SERQUAL model (Zeithaml et al., 1990).
Tangibles — physical on-board items, comfort, cleanliness, magazines, meal quality and in-flight entertainment. Importance of this dimension grows with increased flight time.
Responsiveness — willingness and courtesy of cabin crew and ground staff. It also includes behaviour quality in unexpected situations, e.g. flight delay or lost baggage (Lerrthaitrakul and Panjakajornsak, 2014).
Other dimensions are flight pattern, availability of additional services and employees .
2.1.3 Obtaining information in the customer decision-making process
Customers require adequate information to reach a final decision, without being overwhelmed by information. The complexity of the airline industry and its rapidly changing environment require delivering sufficient information at the right time and in the right place (Bruce, 2011, pp.
Often many choices can be communicated and order to make a decision and avoid judgment (Weber & Johnson,
Social class is a group of people with similar levels of wealth, influence, and status. The influence of class has a great relationship with deviant labelling. There are five common social classes recognized in many societies which are the upper class, the upper-middle class, the middle class, the working class, and the lower class. The upper class represent institutional leadership, heads of multinational corporations and capitalist elite such as Bill Gates of Microsoft and Michael Eisner of Disney. Besides, the upper-middle class people are highly educated and has professional careers with sky-high incomes such as doctors, lawyers and midsized business owners.
social class can be hard to define. There is low status consistency which means have important jobs, but make moderate income. Social class can change during a person’s lifetime. It will either go up or down, but most of the time it stays the same. Social class can have effects on health, political attitudes, and prison rates.
In the article “ Class in America- 2003” Gregory Mantsios discusses the different types of social classes there are in the United States such as the poor, middle, and rich class. Mantsios describes four different myths about America and the people’s social class. These myths prove the social classes there are in America and where they stand. These myths are all lies and talk about what American people are like and what they face. Mantsios also, talks about the different types of realities Americans have with the different social classes which exist.
Discussion about Social class and poverty in America According to the textbook of Introduction to sociology, a social class is defined as a social ranking according to the economic position in which achieved characteristics can influence social mobility. Sociologist Daniel Rossides describes five social class: the upper class, the upper-middle class, the lower middle class, the working class and the lower class. Social class is decided by achieved and ascribed characteristics, and we can change our class by achieved work. Social class has powerful impacts on a person’s life.
For the customer metric, they measure the annual number of new customers, annual proportion of on-time flights to total flights, and customer satisfaction survey. The annual number of new customers is being measured because an increase in the number of customers can give the company an idea about their future and potential growth in the market. This also gives an idea about the customer satisfaction. The annual proportion of on-time flights to total flights is the basic indicator for airlines. Even if the company has a low-fare image, if their flights are late, customers still doesn’t prefer it.
Social classes have been in existence since we got off the mayflower and are still heavily relied on today. We live in a society where your social status matters wherever you go. Trust me, we’ve all have been victims to deeming different sides of a town “upscale” or “ghetto”. You have the people that define themselves as their social class or you have people that don’t really pay attention to it. Even if you don’t pay attention to it, the thought is still evident.
(3) Finally we implement our segmentation by optimizing our products/services for that particular segment and communicating the decision made. Answer: (b): United Airlines segments its global markets using psychographic data collected about its customers. It divides them into the following categories: Schedule optimizers: These type of costumers aim to reach their destination by a certain specific time and select their flights accordingly. Mile accumulators: These customers go out of their way to take flights that will build up their air miles entitlement.
The lower class works for their living and spends what money they have on things they need. Whereas the upper class, usually has a higher education and better paying jobs than the other classes in America. Thus, heritage plays a big part in reasons of social classes.
For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
1.1. The aviation value chain The value chain shown below describes all the activities involved in air travel. Airports serve as a gateway to aviation and hence are a key link in the air transport value chain. They play a vital role in facilitating tourism and business travel and global supply chains as well.
Porsche 1. Analysis of the buyer decision process of a traditional Porsche customer. There are five stages in buying decision process which are shown through following diagram: Porsche is a reputed company and it is well known to customers. In case of difficult situation of purchase, customer can follow all the five stages such as purchasing of durable goods of new brand.
There are four major decision-making models- rational, bounded rationality, incremental and garbage can models. In the following, pros and cons of each model will be discussed and explain why Incremental and Garbage Can Models can best describe the decision made during the Cuban Missile Crisis. Rational model is a cognitive process, which the decision-makers run through rational steps. The steps refer to definition of problems, identification and evaluation of alternative policies, implementation of the best policies among all and finally monitoring of effects, ran through a unitary decision-maker (Taylor, 1998). Theoretically, the model can search for the best solution to the problem based on the comprehensive consideration.
Social classes are a form of social stratification that refers to the existence of structured inequalities between individuals and groups in society. A social class is a group of people of comparable status, power and wealth which are usually classified as upper class, middle class, and lower class. For each class, there are some specific opportunities available that influence their social life. We can understand about the particularity of the chances through unequal distribution of these opportunities between individuals in social classes. In here belonging to a social class seems to be an obstacle for some individuals to obtain equal opportunity, unlike upper class people.
(2008). Naturalistic Decision Making. Human Factors. Retrieved from http://www.ise.ncsu.edu/nsf_itr/794B/papers/Klein_2008_HF_NDM.pdf Kellogg, R.T. (2016). Memory Systems.