Switching Behavior Toward Low-Cost Airline

5256 Words Nov 9th, 2010 22 Pages
I. INTRODUCTION
Background Information According to Research in Marketing in topic "Switching Behavior" that we have to study in this semester. They are many reason that people switching the brand, this is depend on the industry that they are in. It mean that in different industry will have some factor different that make people switching the brand but some of them might be the same. As this time we focus on the low-cost airline industry one type of the airline industry that had established in this industry. Mostly the airline industry established for along time ago and they face some problem in the industry so they launch a new way of airline to serve to customer. As there are many competitors that had launch the low-cost airline in the
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Besides perceived financial risk, other risks such as performance, social, front-end time-loss, back-end time-loss, and source risk, have been proposed for situations of direct order shopping (McCorkle, 1990). Some, if not all, of these risks may need addressing by direct order marketers in order to compete with their physical store counterparts. For example, financial risks can be reduced by promoting money-back guarantees and their added value of convenient and helpful live customer service by phone or online chat. Performance risk and back-end time-loss risk is reduced when returns can be made at physical stores or through physical partners. Front-end time-loss risk is reduced with a clear presentation of product inventory availability and shipping/delivery times. Source risk is reduced with seals of approval by outside organizations such as the Better Business Bureau, BizRate, and TRUSTe; by developing and supporting privacy policies and permission-based marketing practices; and with continued assurances and technology for secure transactions and safeguarding of personal data such as credit card and order information. Many customers perceive higher levels of security and privacy violations from direct order marketers Easley, R.W, Roberts, J.A, Dunn, M.G, Madden, C.S (1992), "Diagnosing consumer information problems: an investigation of deception in the mail-order video camcorder market", Journal of