1.4 Problem Statement
Service failure is a common phrase in organization that provides services to customers such as hospitals, hotels, and airlines. Previous studies have focused on the. Unquestionably, airline mishap or disaster are the more serious sides of service failure, which can occur mainly as a result of human error, system failure, or other external situations (Wen & Chi, 2013). Service failures in airlines such as flight delays are inevitable; however, with a trend towards minimizing the cost and minimal frills in the industry, many airlines no longer provide any hospitality when flights are delayed (De Coverly et al., 2002). Such service failure, which has not been addressed effectively by the airline company might lead to catastrophic
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Many national carriers are losing money (e.g. Malaysian Airlines, Jordanian Royal Airlines) which enforced some other national carriers to go private (e.g. Philippines, United States) to avoid losing more public fund (Tiwari & Kainth, 2014). Thus, the focus on this study is on the service failure of the national carrier aiming to help them to avoid losing customers and ultimately survive in the current business environment. Nevertheless, Low cost airlines are more favorable in term of price compared with national carriers (Pearson, O’Connell, Pitfield, & Ryley, 2015). However, in term of patriotism , it is believed that passengers prefer to support their national carriers. Thus, the focus of this study is on the behavioural variables that includes attitude and brand attachment. This is due to the fact that previous studies focus intensively on the service quality and satisfaction (Komunda & Osarenkhoe, 2012; Mellat-Parast, Golmohammadi, McFadden, & Miller, 2015; Nek Kamal et al., 2012) and few only related the behaviour to the brand attitude and the brand attachment (Nikbin, Hyun, Baharun, & Tabavar, …show more content…
Consumer reaction to service failure can be explained using this theory (Maxham & Netemeyer, 2002). Stability refers to the extent to which a cause is viewed as temporary (expected to vary over time) or permanent (expected to persist over time). Controllability refers to the degree to which a focal party perceives a cause to be volitional or non-volitional. Therefore, researchers argued that when the cause is temporary and uncontrollable, the attitude of consumer will not change and it rather to be positive. However, when the cause is permanent and controllable, the attitude will be affected negatively. Studies focused on the direct effect of the element of causal attribution theory and few only focused on the airline industry (Kin and Cho, 2013; Vázquez-Casielles et al., 2007; Nikbin et al., 2014). Moderating effect of the element was investigated in few studies. Thus, this study aims to contribute to the airline context in this
The article was reported in the National Geographic Traveler Magazine in the December 2012/January 2013 issue. Christopher writes about two separate airlines and the potential of what could make or break a person. He used different points to breakdown what airline companies are doing to the economy. He published the article to make people become more conscious thinkers and look at the entire package/company when it comes the cost of booking with an airline. Let’s look at how the customer service, expenses and hospitality play a factor when choosing an airline. The Good versus the Evil in the air.
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.
Customer service studies show that when something goes right, customers give credit to the individual employee dealing with the problem; when something goes wrong, customers usually blame the organization itself. This fact makes it crucial for any
The terrorist attacks on September 11, 2001 shook the United States in a profound way, deeply upsetting the national perception of safety within U.S. borders. No industry or sector of the economy felt the impacts of these events more than the airline industry. Both the immediate reaction to the attacks and the long-term repercussions have negatively affected the industry. Today’s airline industry is much different than it was prior to September 11. There is a much smaller work force, more low-cost carriers, more security and more fees associated with flying.
Service in the aviation industry is measured by on-time performance, fewest lost bags and least number of customer complaints
In an airline industry, customers form the core of the organisation and this is achieved by the level of customer satisfaction by voting for the airline. This expresses confidence in the airline. The airline to meet its customers expectations needs to ensure the following is adhered to:
This case analyses Prof. McPherson’s service experience with respect to two Airline carriers, which was not expected in this age of Network and Information Technology and also the service level expectations from the customers. First we analyze the setting/situation, issues Prof. McPherson experienced and his assumptions; and then try to address them. The bottom line: addressing such situations would improve efficiency, customer loyalty, brand name and increased profits
The aviation industry, due to its fast paced and extremely performance oriented nature, is an ideal example of how proper organizational behavior lends to the growth, and ultimate success of a company. Often, mitigating operational hurdles and constraints becomes the focus of leadership in this industry as problems such as financial limitations continually arise. This unfortunately can result in employers neglecting the most essential part of their company, the employees. The ability for an employer to recognize and resolve threats to employee job satisfaction and security, conquer lack of employee motivation, and proactively negotiate internal and external conflict allows for a company to thrive.
2. Why have all of the low-cost subsidiaries of full-service airlines, including Delta Express, failed?
The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the
British Airways (BA) is a company that encountered several difficulties back in the 1970’s and 1980’s. The poor performances of the organization, was leading the company to failure. BA was offering a service that even though it accomplished the mission of the company, was not providing customer satisfaction. The organization was not taking into consideration the needs of the costumer and was not providing an acceptable customer service experience. “Productivity at BA in the 1970s was strikingly bad, especially in contrast to other leading foreign airlines” (Jick, Peiperl, 2010, p.28). Due to numerous changes, the company increased their revenues and became a respectful and well know organization.
Upon review on a profile of a successful company we see Southwest Airlines as a prime example. Their ability to recognize weakness in their management system and adjust strategies has allowed them to emerge as a leader in the US airline industry. Southwest is the largest US low fare carrier with low fare rates, no additional fees and excellent customer service. Southwest Airlines currently has one of the most innovative management practices in the US to date. A review of the critical elements of Southwest Airlines proves to be effective and innovative.
result of this, no other airline in the industry’s history has enjoyed the customer loyalty and
The term “Brand Loyalty” also called as “Customer Loyalty” has been in the business industry since a very long time as a model to be used in conducting business. But it wasn’t until the mid to late 1900’s that the term was actually given its due importance by making it a vital part of advertising and marketing. The concept of marketing evolved substantially from being focused on sales of a product to having Customer satisfaction to be its focal point. Studies further revealed that there was a positive correlation between customer satisfaction and Brand Loyalty.
As a part of Crossman Communications, this essay will go into depth about the client, Malaysian Airlines and their recent campaign. Malaysian Airlines founded in 1957, currently flies to 53 different destinations having over 12 000 employees (Malaysian Airlines, 2017). The airline company offers the best way to fly to and from Malaysia flying over 40 000 people everyday (Malaysian Airlines, 2017). The campaign was set to rebuild the trust of Australian and New Zealander flyers due to the multiple aircrafts that have gone missing which have affected families in both countries (Crossman Communications, 2015). Having said that, the goal was to improve bookings, and generate positive media coverage (Crossman Communications, 2015). This essay