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The Four Characteristics of Services Offered by AirAsia
One of the characteristics of service offered by AirAsia is intangibility. Services intangibility is inevitable and sometimes could be a challenge for every service provider. According to Pride & Ferrell (2011) intangibility of services can be defined as the characteristic that the service is not physical and cannot be perceived by the senses. For instance like AirAsia which provides flight services, it is impossible for the customers to touch the flight as it is a journey to specific destinations. They might be able to touch the plane, but in the context of services, the customers do not own the physical tools or equipment used to deliver the service but are only entitled to get the service which is the flight service.
Intangibility distinguishes between services and goods. Unlike goods, services have no physical attributes that can be used by the consumers to make judgment. Therefore, the customers cannot imagine what would they get from a particular service. The customers might think of the possible risks that they would encounter if they buy the service. Hence, the service provider must consider enhancing their marketing strategy to convince the customers about their services and reduced the perceived risks.
The next characteristic of service offered by AirAsia is inseparability. Inseparability refers to a distinguishing characteristic of services that reflects interconnection among the service provider, the customers involved in receiving the service and other customers sharing the service experience (Hoffman&Bateson, 2010). Based on this definition, it can be concluded that the inseparability in the service involves the participation by both the customers and also the service provider. Different from the goods that are manufactured prior to its sale, the services production includes the presence of the customers in its production process. For AirAsia, the production of the services started as soon as the passengers board the plane. Since the production and the consumption of the services happen simultaneously, then punctuality is very important especially for AirAsia, which is an airline. AirAsia must ensure that their flights depart on time and should try their best to avoid flight delays. This is because flight delays will cause dissatisfaction to the customers and might cause inconvenience to them.
The next characteristic is heterogeneity. Heterogeneity in services has caused customers to receive inconsistent services, even though the services are purchased are the same services and from the same service provider. It also differentiates services from goods.
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
The characteristics of a service are intangible, inseparable, perishable, heterogeneous and lack ownership. The marketing mix of a service is not perceptible and as the features of a service is distinctive to the features of a product, it has additional elements which are process, people and physical evidence.
Sociocultural factors embody the various culture aspects in which a business functions. It is of great significance that a firm has the ability to appeal to the culture that they are working within as it reflects their customer knowledge, determining their performance (David & Fahey 2000, pg. 113). One central issue in regards to sociocultural factors playing an important role in a business’ marketing mix is firm’s ability to adapt marketing strategies in regards to demographics. The universal aging population is a clear indicator of marketing strategies for airlines companies to evolve so that it caters to the needs of the population as a whole. In addition, with Qantas operating as a global company and multiculturalism as a universal force, it is crucial to cultivate innovative marketing plans to accommodate the diverse preferences and needs of other cultures (Teo 1994). As cultures differ in their forms of attitudes and behaviours, consumers coming from these diverse cultures, backgrounds and countries are susceptible to dissimilar intensities of service anticipations (Donthu & Yoo 1998).
Zeithaml, Valarie A, Berry, Leonard L, & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31. Retrieved April 1, 2011, from ABI/INFORM Global. (Document ID: 9401886).
In today's competitive marketplace, all firms are seeking ways to improve their overall performance. One such method of improvement, recently adopted by many firms, is benchmarking. Benchmarking is a technique used to evaluate internal business processes. "In this analysis, managers determine the firm's critical processes and outputs, baseline those processes, then compare the performance of each process against a standard outside the industry" (Bounds, Yorks, Adams, & Ranney 1994). To effectively improve a business process to world-class quality, managers must find a firm that is recognized as a global leader, not just the industry standard. Successful benchmarking requires tailor-made solutions, not just blind copying of another organization. Measurement and interpretation of data collected is the key to creating business process solutions.
“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” William Pollard’s, a 20th century physicist, words show us the power of being proactive, and igniting change to strengthen a company’s productive climate (Sellers, Boone, Harper, 2011). Acme Airlines flight attendants lacked incentive to improve the quality of their work, as a result of distrustful management and overall frustration within the company. Acme took successful steps to rebuild their FA program into a more relationship oriented work environment. Through an understanding of effective leadership, we will use the
Inseparability characteristic of a service refers to the fact that services are produced and consumed at the same time. They cannot be separated from their providers, whether the providers are people or machines.
Inseparability characteristic of a service refers to the fact that services are produced and consumed at the same time. They cannot be separated from their providers, whether the providers are people or machines. The employees of McDonald’s are a part of the service and so are the customers. The two together both influence the service that is being offered. In a restaurant, all customers are present while an individual customer is getting the service and the behaviour of the other customers can determine the satisfaction of the service delivered to that individual customer. The management of McDonald’s make sure that the customers involved in the service do not interfere with each other’s satisfaction. Services are variable and very difficult to control. This is because they greatly depend on who provides the service as well as when, where and how the service is provided. McDonald’s make sure to use quality control in order to provide its customers with consistently good service. McDonald’s hires the right people at the right time to deliver an excellent service to their customers. McDonald’s have a standardised
Many companies sell miscellaneous products all across the Internet, but two stand out drastically among them all, Zappos and Amazon. One important factor contributes to this, delivery. By taking into account the total needs and wants of customers Zappos and Amazon produce huge profit numbers each year. According to an article from The Indian Express, “customers are willing to play 22 percent more for good service experience”. Also, take note that most phone, and cable companies know that the experience and/or delivery is more noticed than the actual ...
The main threats to the industry over the next five years are the rise in price of oil, legislation, the TSA, and labor costs. Each of these threats effect the scheduled air transportation industry not only endangers Delta Airlines but the entire industry. As the price of labor increases for ground operations and pilots this creates a burden on the industry by causing them to spend more to satisfy their labor requirements. The price of fuel increasing leads to the price of fuel to increase, which not only affects a single airline but every airline. With each time that the crude oil price rises the prices associated with the costs of refining the jet fuel as well as transporting it. These costs are distributed to each airline as they use this resource to transport passengers. As new politicians are elected to Congress and new administrators take charge of the FAA new regulations regarding this industry. These regulations affect everything from mergers to the airspace that the airlines operate in as well as what hubs and airports each airline operates out of. These factors are not issues that the industry faces, the TSA, the Transportation Security Administration, creates an unnecessary burden for the passengers attempting to travel from one location to another. The TSA inspections required before a passenger is allowed to board their respective flights allows time for each passenger to become frustrated with the amount of time they have to allot for inspection as well as the invasion of their privacy.
to major airports but later it went down as PE try to grow faster and
Flight fee is one of the biggest nightmares of the passenger. In this regard, such an initiative is a win-win situation for the Asiana airlines. The establishment of extensive cabin retrofits is also a great improvement to the customer service delivery. The airline also boosts customer experience in a bid to achieve the airline’s sustainability through the provision of lie-flat seats. The seats boost comfort for the passengers aboard; hence, reduction of exhaustion. According to Asian Development Bank (2009), the airline provides the passengers with a sizeable monitor, especially for the business class passengers. The practical productivity of team relies on upon its hypothetical planning, information of an aeronautical building, and tenets of its operation, including exceptional circumstances, and propensities for utilization of this learning, furthermore on order and determination of pilot-in-charge of aircraft and group individuals. The administration productivity air movement, the associations of flight action and a wide range of upkeep of aircraft in the greatest degree is controlled by the proficiency of the action association in the modern undertakings, cognizance of initiators, and the moral obligation of leaders of all positions for action concerning security control of
AirAsia Berhad (AirAsia) is a leading Low-Cost Carrier in the Association of Southeast Asian Nations (ASEAN) region. AirAsia focuses on providing high-frequency services on short-haul domestic and international routes. The main goal of this paper is to analyse the business strategy of AirAsia as a low-cost airline. This paper aims to apply the management process of strategy and analyse the three levels of strategy by which AirAsia is able to maintain its reputation as the top Low-Cost Carrier (LCC) in Asia. This paper will then show how innovation is a key aspect in AirAsia’s strategy, and will finally consider the external environment framework in which AirAsia is succeeding.
It’s the strategic interface between marketing and logistics, it adds value to any given product, yet it’s intangible – what is it? The answer is simple: customer service. “Customer service has been an issue since the early 1970’s” (Cavinato 60). Though it’s long been considered an issue, it’s important to remember that there isn’t one set formula to developing customer service, it’s more of a mindset (Cavinato 61).
A service encounter is defined as a moment when a customer interacts with a service or product for the first time. It is the customer’s actual interaction with a service company. It is identified as a key component of the current agenda for service marketers. More than half of the world’s multinational corporations employ in providing services, thus the scrutiny of service encounters is becoming increasingly significant. Research evidence indicates that customers generally compare their expectations with the performance of service industries and they are influenced by the quality of service they receive. The scope of this essay is to discuss about the view that customers don’t buy products they focus on solutions and also about the consumer’s behaviour pattern regarding services provided. Further, it will be noted how businesses are trying to improve the service quality to attract customers leading to an increase in the economic competitiveness.