Switching Behavior Toward Low-Cost Airline

The targeting strategy that Delta Airlines follows is a Single Segment Strategy. Business fliers are the main target for this airline. In order to reach their target market, Delta Airlines is conveying its message that it delivers everything business fliers need through advertising in broadcast media and other national media. A differentiation strategy is the extensive flight service and brand legacy of Delta Airlines is recognized throughout the airline industry as unique. There are several benefits of Single Segment Marketing. The company can gain more competitive edge. Their major competitors are United Airlines, Northwest Airlines, American Airlines, and British Airways. Also, the company can create more fine-tuned offerings at the right price for the specific market segments as well as have a clear picture of the

For the moment, high level of competition between the major telecommunication companies that exists in current market leads to low switching cost for the buyer to change their mobile service provider. Customers are highly price sensitive and easy to switch brand. It also means that customer will not be faithful to Maxis if they find out other brand provides better services than Maxis so they will change brand.

Many people are moving from physical stores to purchasing merchandise and services on the Internet. Today,

* A very popular trend in this industry is the loyalty to one specific brand based on personal preference, political/ethical reasoning, pricing, or otherwise.

JetBlue airlines is known as America’s favorite low-cost airline provider. JetBlue focused on providing customers with low cost flights, great customer service, and an overall great experience. This company believed in new innovative ideas including at home reservation agents, paperless cockpits, and providing customers with complimentary snacks and drinks. These competitive advantages set JetBlue airlines apart from other major and low-cost airlines. This company focused on the mission statement, to bring humanity back to air travel (Dess, Lumpkin, Eisner, McNamara). JetBlue airlines started operations in August 2000 with JFK airport as the main base location. This company was on average providing 750 daily

This could be company strengths, current market penistrationpenetration, supplier agreements and simply all of the business and/or customer loyalties that they have had. Also in today’s market the consumers are looking for the “next new thing”. They no longer want an extension of what they already have. The consumers are loyal to a company, but can quickly change focus if a company fails to continue to change to meet their needs and/or demands for change.

Marketing environment is a group of forces that influence the organization capability to undertake any project in both ways direct and indirect. It is about two main types of factors: internal and external. The internal environment is the forces and actions inside the firm that affect the marketing operations composed of internal stakeholders and other functional areas within the business organization. The external environment includes both macro and micro environments that affect the business decisions of an organization. (Johnson, 2014).

❖ Security; as the number of Internet crimes increases, customers are becoming aware of the possible danger involved in the process of on-line shopping. This security problem may not be difficult to improve since security technology is innovated quickly, but to convince customer of this is not as easy

Deregulation provided a freely competitive market that would provide air service efficiently changes due to deregulation eliminate of restrictions on which routes airlines could fly that airlines can add new routes and remove old routes by themselves, not controlled by Civil Aeronautics Board (CAB). Thus, deregulation make rapid expansion of the airline operations, also emerged of new airlines such as low cost carriers (LCC), smaller airlines which would not squeezed out from the airline industry base on the deregulation, also they can survive in airline industry with large airlines now.

When a customer switches brands, for example Coca Cola to 100Plus, it is not going to have big affect on the company. Usually, consumer will not purchase a large amount of Coca Cola product in a row, and spending thousand Ringgit Malaysia of Coca Cola products. They might be purchase with a maximum around a few hundred Ringgit Malaysia once a time. For another example, the buyers of Coca Cola also include large grocer, supermarket, convenience store and restaurant and so on. They will purchase large quantities of Coca Cola for resale to the

This new rationale has helped Tesco meet their customers’ desires and demands, attract upper market segments, become more cost-efficient, increase home delivery accuracy, and to collect data about their customers’ purchase habits. One of the major advantages of Tesco Direct is customers are able to pick their products online and have them ready for pick up when the customer desires, this has allowed Tesco the opportunity to expand their customer base. Online orders allowed Tesco Direct to manage customer

Brand Loyalty is a concept which has both attitudinal and behavioural components. Marketers are very concerned about brand loyalty. It is not simply about repurchasing. It consists of customer’s commitment towards the brand and consumption repeatedly whenever the need arises. In addition to that, customers might also act as advocates for the brand. Hence both the entities form a long lasting relationship. The success of any brand is dependent on its capability to attract customers. It is very critical for a brand to have a loyal set of customers who will stick with the brand always. Loyal customers are more likely to buy a brand than a customer who is not. This helps in generating a stable source of revenue. Sometimes brand loyalists engage in

Consumers purchase products based on what the product can do for them or based on what they get out of the product. The fact that companies spent valuable resources creating products does not in itself entice consumers to buy those products. Therefore, the approach taken by both REI and Cabela’s to publish a rich set of product information serves to inform customers of the value the products have for them. When consumers recognize the value of a product, they are more likely to purchase the product. Customers are also more likely to upgrade or pay a premium for a product in which they see greater value. In this way, getting good product information in the hands of customers is key to driving sales, which increases the financial success of the company, be it REI or Cabela’s (Ruskin-Brown, 2006).

Managers in some budget airlines are often accused of ignoring every lesson that is taught to students at business schools. To what extent is this true as far as its HRM policies and practices are concerned? Justify your answer.

However some operators have reversed this, and are paid by local governments to land at some airports, as they expect to gain economic benefits from this.