Case 13

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University of Texas, Rio Grande Valley *

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6310

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Marketing

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Feb 20, 2024

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docx

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1. How comparable are the two different methods? In what ways are they similar? In what ways are they different? The two different methods for measuring the quality of airlines have some similarities and differences, even though both methods are very valid for evaluating the service based on their attributes. Similarities: Both methods aim to measure the variable of the quality of airline services. Both approaches utilize a weighted average to calculate rankings, although the factors and weights differ between the two methods. Both methods involve collecting data from the airline’s customers and experts. Both are construct methods as they consider that they need to use more than one variable influencing consumers' perceptions of airline quality, such as preferences, attitudes, service, routes, and market. Differences: The Consumer Survey approach relies on subjective opinions, preferences, and perceptions of frequent fliers through surveys, while the AQR approach relies on objective data from publicly available sources. The Consumer Survey approach considers a broader range of criteria, including comfort, service, reliability, food quality, cost, delays, routes served, safety, and frequent-flier plans, as rated by frequent fliers. In contrast, the AQR approach uses a specific set of different weighted factors, such as on-time performance, accidents, number of aircraft, and financial stability, that are readily available in public data, then calculating an average score by multiplying the weights with their ratings. The Consumer Survey approach captures the opinions of consumers at a point in time, typically conducted annually, whereas the AQR approach provides ongoing and up-to-date performance data. The Consumer Survey approach primarily reflects the perceptions of a specific group of frequent fliers. In contrast, the AQR approach relies on publicly available data and is not limited to expert opinions or a particular group of consumers. 2. What are the positive and negative aspects of each approach that Shocker should consider before recommending a course of action for FlyAway Airways? Consumer Survey Approach: Positive Aspects: Captures subjective opinions, preferences, and experiences of frequent fliers, which can be valuable for understanding customer perceptions. Reflects a broader range of criteria, including factors that may not be available in public data, as can give very personal feedback. It can be designed and targeted to get specific information to focus on a particular group of people, period, or season. It can provide rankings that directly represent customer preferences and honest feedback, which the company should use to adapt and adjust accordingly.

Negative Aspects: A subjective nature may introduce bias or inconsistencies in the results; it is essential to consider when the survey was conducted, for example, if it was after a delay or a perfect flight, during peak season or rush hour, right after the pandemic, etc. Another aspect that can affect it is that it can be limited to the opinions of frequent fliers and may not represent the broader customer base. If it is conducted infrequently, it may not provide real-time insights. AQR Approach: Positive Aspects: It relies on objective data from public sources, enhancing transparency and credibility and eliminating biased results. Provides ongoing and systematic metrics by assigning weights to different factors that are easy to understand and allows for direct comparison of airlines to make quick decisions and evaluate other options. Negative Aspects: It may not capture nuanced aspects of customer experience that are subjective and cannot be measured just by a number. It relies on expert opinions to assign weights to factors, which could introduce subjectivity in the weighting process and affect the results. It may be difficult at specific points to modify the importance of each element to adapt to the new information required. It may not include particular criteria critical to customers, such as food quality or comfort, that could be taken to make the final decision. 3. What aspects of service quality does each approach address well and not so well? Consumer Survey Approach: Addresses well: Subjective aspects of service quality like comfort, food quality, and service. Captures customer preferences and perceptions. Then, the company can address very easily and quickly the areas of improvement and make the necessary adjustments to satisfy the needs of the customers. Does not address well: Objective performance metrics like on-time performance or financial stability. It may differ from the broader customer base as customers may not provide accurate information because they do not give genuine opinions or feel uncomfortable sharing some information. AQR Approach: Addresses well:

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