A final year project on “Impact of service strategy towards consumer satisfaction in the low-cost carrier industry in Kuala Lumpur, Malaysia″ submitted by Ibrahima Balde to extrudesign.com.
CHAPTER 1
1.1 RESEARCH PROPOSAL
TITLE: A STUDY OF THE IMPACT OF SERVICE STRATEGY TOWARDS CUSTOMER SATISFACTION IN THE LOW-COST CARRIER INDUSTRY IN KUALA LUMPUR, MALAYSIA: A CASE OF AIR ASIA.
Introduction
This chapter as the first gives an outlook of the overall investigation. It relies on highlighting the research background, company background, problem statement, rationale of the report, the research objectives followed by the research questions ending with research framework, a summarize of the upcoming chapters and overall conclusion.
1.2 RESEARCH BACKGROUNG
The focus of this study will be looking at determining the extent to which strategic service impact on the level of satisfaction towards consumers. Today’s consumers are more bind to link up with modern technologies, cost of a product or service, in a deeper contrast on how companies deliver value to the audience looking at quality, moreover the fact of grouping strategies in attracting more customers.
Looking into the main types of Airlines as said above Full Fare Airlines or Full Cost Carriers and Low-Cost Carriers don’t a keen difference. Low cost carriers are known to be no frills or budget airlines providing lowest ticket fare with restricted services. The clients will benefit from budget airlines offering lowest fare cost. Hence, extra fees are charged on amenities like luggage, meals, and seats allocation.
Augmenting the business performance would result from on-going improvement patterning to the service offered to clients which should be set on as well as executed. Consumer satisfaction enhancement of aviation industry can be fused in accordance to measurements of strategic service known here as low fare price, quality, in-flight facilities, Information technology and
advertisement. The term strategic service refers as a set plan to achieve service objectives of both buyer and the seller.
1.3 AIR ASIA MALAYSIA BACKGROUND
Among Malaysia low cost airlines carrier, AirAsia is known as the largest in terms of no frill as well as hassle-free. It was conceptualized under the slogan of ‘’Now Everyone can fly’’ by the founder Dato’ Sri Dr. Tony Fernandez as a budget airline. In fact, it only began its operations 3 years post its establishment in 1993. (CENTER FOR AVIATION, 2018)
As of 2017, AirAsia has carried a total number of 65.5 million passengers. The company network is well spanned with 21 countries, 119 destinations, 293 routes, 4408 flights per week, 90 unique routes, and 23 hubs with main ones Malaysia, Thailand, Indonesia and 58 new routes introduced in 2017. Throughout its high effectiveness and efficiency, it has result in achieving trust and attraction as several people and more have taken Air Asia their preferred transportation means. (CENTER FOR AVIATION, 2018)
It is important to highlight the fact that Air Asia is the first in implementing unassigned seats and fully ticketless travel in the market it operates in. Hence, Kuala Lumpur International Airport remains as its principal hub as Low-Cost carrier Terminal.
Emphasizing on their market share in Malaysia only the same year was estimated at 53% locally and 30.8% internationally. Their total profit accumulated was at RM9.71 BILLION and 70.4% through internet combined with a 22.3% as operating profit margin. (Infront Analytics, 2017)
AirAsia is widely present in several and diverse platform of social media which contribute to their marketing strategy driving more attractiveness.
Source: (CENTER FOR AVIATION, 2018)
1.4 PROBLEM STATEMENT
Low cost carrier had been set long-time ago in Asia, with unsuccessful path to hold their position high in the market during the past, until AirAsia get to conquer Malaysia budget airlines market in the South East of the region being the former Low-cost carrier and known worldwide. In fact, polemics have been trending on the company quality services they provide which turn on through the media and own experience that clients dealt with Air Asia.
It is noticeable that Air Asia is upgrading its working standard to occupy the head further the market it operates with by utilizing marketing tools such as advertising, promotion campaigns, lowering the cost of fare as well as free booking tickets to their clients. Hence, the controversy comes in the point of customers are not only focus on having low fare price or free tickets when it comes to ensure they repeat back purchase. The factors contributing to satisfy customers are various and several as they are significant in creating customer loyalty.
Figure: Air Asia annual passenger number.
Source: (CENTER FOR AVIATION, 2018)
1.5 SIGNIFICANCE OF RESEARCH
This report is mainly relying on essential part that covers part of management and strategic service as to figure out with its diverse characteristics is dominant in a business environment to set up truth, believability, consistency in delivering high value to consumers through strategic planning to endorse in a high position in the market that the business is operated in.
Air Asia in fact is well perceived in the local market since it has been satisfying the market demands and needs with evolution in upgrading their services to better serve its audience, furthermore to acquire the most attractive plans into more commitment to preserve future sustainability, the company has open up a window of no-frill to serve according to consumers value.
Looking at company outlook, this report will support to gather clear path, facts, to understand as well with the various variables factors customer satisfaction in concern with budget airlines in Malaysia. Moreover, it will be helpful as to measure the extent to which of the variables is more bind to correlate with Air Asia strategic service.
1.6 RESEARCH QUESTIONS
- Does low cost fare a factor impacting Air Asia towards its customer satisfaction?
- Does low cost fare a factor impacting Air Asia towards its customer satisfaction?
- Does low cost fare a factor impacting Air Asia towards its customer satisfaction?
- Does low cost fare a factor impacting Air Asia towards its customer satisfaction?
- Does low cost fare a factor impacting Air Asia towards its customer satisfaction?
1.7 RESEARCH OBJECTIVES
- To analyse the impact of low-cost fare on Air Asia service strategy implication to customer satisfaction.
- To determine how in-flight service influence Air Asia service strategy towards customer satisfaction.
- To find out the influence that information technology has on customer satisfaction.
- To emphasis on the quality service strategy of Air Asia impact on customer satisfaction.
- To conduct a critical analysis of the impact of Air Asia advertising as a service on customer satisfaction.
1.8 RESEARCH FRAMEWORK
Source: Self adapted from (McAlister, 2012)
1.9 Chapters’ Signposting.
Chapter I: INTRODUCTION
This part will mainly look at highlighting the significance of service strategy features in the present condition of the business environment in tandem with its ability to enhance company profit and attractiveness. It has the possibility to assist the researcher in apprehending the logic of this report, the purpose, and requirements added to the structure representing the fundament of this research.
Chapter II: Literature Review
It consists of emphasizing broadly with elucidation certain concepts bind to the topic, and come up with elaboration of each independent variables that have been matched with dependent variable impacting customer satisfaction in the aviation industry.
With relevant support of previous theories and hypothesis being utilized to fully apprehend the purpose of service strategy within Air Asia.
Chapter III: Research Methodology
This chapter will be covering the essential tools in terms of approaches and methods set by the researcher containing different stages such as research design, research methods, data collection
technics, research sampling, give a logic supporting the survey, besides the various ethics and moral procedures taken into consideration while conducting the report. Moreover, emphasis on the restriction that could face the researcher added to a timeframe constructed based on the research as referring to a Gantt chart.
Chapter IV: Data Analysis.
This part relate more into computerization of the assembled data relying on the provided survey to help the researcher come out with its own conclusions patterning to this study. Furthermore, it enhances more knowledge to the final reader as to qualify variables that is impacting on Air Asia customer satisfaction.
Chapter V: Recommendations and Conclusions
As a closing section of this research it comes out with summarize of the overall findings, provide practical responses to the examination of the issues in tandem with suggesting propositions. It somewhat will highlight the research obstacles.
Conclusion
This section has given a general preface to the investigation alongside an outline of our selected industry and organization. The extent of this exploration and the topic description were additionally revealed. Research inquiries, goals and rational structure were then introduced separately to feature our range of centre inside the writing examination.
CHAPTER 2
LITERATURE REVIEW FOR THE IMPACT OF SERVICE STRATEGY
Introduction
This part is mainly in concern with analyzing critically the literature outcomes of this report which emphasis on various variables as object of research and find out the result behind it with the support of accurate sources like journals, books, structured and quality research highlighting different aspect of each variables patterning to diverse hypothesis.
It is in the researcher of this report to accommodate the tools required in this research such as developing on the above concept where the study will be contained as a guide of this report through providing answers to the research questions and emphasis on the research objectives dealing with
management tools with deepening the finding as this report may be used for forthcoming investigation.
2.1 Service Strategy
If we refer to the second term which is service, it’s mainly referring on the way that a company deal with the outside environment or world. Most of the time service provided by a company tend to be their strategy.
In other words, strategic service comes with the point of reactiveness strategy aiming at efficiently and profitably in satisfying the client in the same way of keeping the company’s strategic balance and the resources, pricing, commitments as well in delivering value to customers.
Concept of service strategy
It can be seen as package of tools that is helpful in differentiating the offers relating to customers from the ones of your direct or indirect rivalries. In fact, services can be seen as intangible assets that own a company through which customers are delivered good value considering the processing and performing service background.
In order to come out with high standard services a company will need to take into consideration existing and potential audience in the same way come out with a perspective, set directives to deliver service as expected. This kind of directive is usually referred to as service strategy.
Strategic in fact derives from strategy which is a method, tool or directive used to forecast upcoming future, as to highlight on objective to attempt, solve an issue in a given situation.
2.2 Customer Satisfaction
2.2.1 Concept
Customer satisfaction is keeping on catching business attention, a tool that consist of evaluating products or service performance. In other words, it’s perceived as the clients’ assessment in terms of their buying as well as experience with an item or service, so that to fulfil clients’ desires (Citation). Moreover, the expectation in terms of customer point of view is significant in a competitive business environment referring to (citation). Hence, customer satisfaction is a key tool that drives or trigger customer loyalty as seen in the marketing concept.
It is mainly confronted as a state of customer mind where it exist evolving feeling and expectation among these latter. Usually customers who are willingly to repeat purchase or having a consistent buying behavior towards product or service are likely to be satisfied clients. Findings from authors, classify customer loyalty as derived of customer satisfaction which tend to impact financially an organization way of performing. From (authors) point of view, a satisfied client is an essential factor that affect customer loyalty.
2.2.2 Customer Satisfaction importance.
In general, clients are looking into good service value as overall, and to do so organization need to form with different internal departments in charge of the offer to joint in one in order to deliver expected value to customers. Additionally, looking at lucrativeness and output angles, it is important to highlight that except actions that create value for the end users nothing else should be proceed. In fact, organizations have to face a shape understanding of their customers’ perceptions that it used to be. In order to gather from customers feedbacks, organizations have to set trust related to their standing audience.
Looking back at first-hand researchers have categorized certain factors as important drivers patterning to customer satisfaction such as impartiality, requests, disconfirmation, performance, expectations and service quality (Kaushik & Taneja, 2013). (Carman, 2015) In fact, emphasized a different view on customer satisfaction stating it as when the company’s service offer surpassed value to the customers’ prospects. Similarly, (Wilson & Milner, 2013) pointed out that customers that rely on services are more willing to stand aside from their regular provider in tandem with an accuracy of delivering goods or services consistently.
2.2.3 Aviation industry and customer satisfaction.
(Gronroos, 2014), consider that satisfaction of passengers mainly occur when there is interaction among the organization workers as well as the combined means that the company gather as services, tangible and technical assets point of view going deeper into foods combined with the in- flight environment. Emphasizing on the aviation industry, customer may consider mostly the service quality provided as a fundament into judging the quality generally. Visibility for clients is mostly appealing when the service is offered by the workers (Rhoades & Waguespack, 2013). In fact, (Lorenzoni & Lewis, 2014) support that a comprehension of airlines clients, moreover sharing
their commitment and passion in providing good value services is the adequate approach to satisfy same as maintain customers.
Low Cost Fare/Low Price
It is mainly in concern with company like Air Asia apply a low price in their services and products with the consideration of a limited service to end up stating that it’s no-frill. Looking at diverse tool into catching customers attention or making them aware of an item or service it include in the strategy form of marketing to set a price that won’t close the client’s from making the purchase as well as to compile high market share, position high in the market ahead of competitors to highlight on low price service or product through consideration of the quality provided.
From that angle, price can be seen as a valuable amount that a customer is abject to provide in exchange to a beneficial item(s) or service(s) relatively willing to profit from it or them. Considering factor like service, commonly not physical so, mostly customer(s) may be facing difficulties to perceive what they will get from the service provider with a particular given price which is significant to be emphasized to clients.
Price Promotion
Looking at service industry, price promotion is seen to be utilized usually to stimulate request of the goods in stocks that are not sold throughout low season because of the degradable nature of service. The local budget airlines in Malaysia usually conduct price promotion from a lower fare of zero charges, 99sen, RM9.99 as well, regarding a one-way flight locally and internationally, to drive or trigger sales of flight tickets from the standing and potential audience.
This has led actually to an effective stimulation of the market request through the promotional activity based on the price as held by AirAsia and Firefly in 2002 accounting for an average of 50 Euros represented as Ryanair single-way charges.
If we deepen on this perspective it is important to highlight that pricing strategy is a key factor leading companies in achieving higher financial income with coverage of the whole market they operate in, tandem to provide sufficient products or services beneficial to the standing audience with flexibility that encourage more new purchase as well as repeating back purchase which will result in an effective competition with the potential rivalries.
(Schultz, 2013), inform that, the budget airlines as the case of the prime Morris Air misused the revenue, outcome of low fares so that to boost air travel sale.
2.2.4 Pricing strategy
Prior literature reveals that budget airlines companies are mostly targeting cost saving travelers who are willing spend limited amount for limited services, it’s more of those who are price sensitive or can’t meet the expense of full cost carriers’ services. The cost of airlines charge is set to be the vital feature among customers’ decision on budget airlines, hence it’s as well found that certain aspects like convenient online platform, developing the brand, flight program, and holiday’s bundle are drivers of brand loyalty between Air Asia current travelers. (Bieger, 2014), raise on the point that travelers are more and more interested in low cost fare than having quality transport.
2.2.5 Price and customer satisfaction.
Referring to (Kotler, p. 2006), the price or cost decided on the goods or services impact on customer satisfaction. Certain value aware customers might purchase goods based on the price than looking at further features of the item (Peter & Donnelly, 2007). Whenever customer are bind in an environment of competing products providing similar features as well as profits their purchasing choices are firstly motivated through the price exposed to them (Ferrell & Hartline, 2008) . (Cronin & al, 2012) The fare or cost related to products or services charges on customers have been referred to as a factor impacting on customer satisfaction. (Brady & Cronin, 2012) Customer have to be delivered quality which should follow aspects such as reliability, responsiveness, and empathy.
The opportunity costs tend to be higher whenever the amount paid by customers get high. The concept behind this statement symbolize the struggle customers put it to get enjoyment on the goods or services. From that extent, it can be said if charges applied on items or services are lesser, the struggle or effort of customers will be so, which probably will result in customers attaining a great customer satisfaction. As reason of the intangibility of service nature, price end up being a restraint value indicator for the clients in situations where further information is unfilled. From that point, it can be highlight that it’s important in fact for the company to get into price competition. As a significant playmaker in business, value charged on service could in some extent be the focus- field of the service dealer so that to gain more competitiveness.
In some different cases where pure services are considered, price is taken to be the main player as a reason of it helps client to choose not only among several competing service companies but come out with a clear decision.
Challenge: Increase in the cost of oil price (petrol).
2.3 On-board Services
Emphasizing on this part will lead to develop first and foremost the fact that Air Asia doesn’t offer fully operated in-flight services meaning that it is restricted service which is understandable since they work as a no-frills budget airline. It’s to state that the customers are served based on the value they are willing to spend on products or services. The service provided on board by stewards to flight attendant is crucial in the aviation field operations, mainly in terms of upholding existing customers as well as appealing potentials clients.
2.3.1 On-board pattern to customer satisfaction.
On-board flyers attendant are crucial to a company to get a better understanding of their demands and desires which has resulted to several studies been completed. The overall experience that precept from inflight service, bind different factors like entertainment, food served by cabin crew to inflight travellers, comfort, provided service to clients as well. The changes occurring in the aviation industry in terms of rivalry and choice pattern combined with lower expectations looking services provided in-flight, principally the catering sector is a challenge to carriers resulting in the personalization of high standard service being adopted back. In fact, it comes to a point of imperatively understanding through which manner customers sort their choices in buying flight tickets.
The spending on the on-board service is truly significant in the aviation industry. Implementing on-board services would require support from a large industry. From that extent, level of competitiveness patterning to attract potential customers and maintaining those satisfied should be among the key approaches as directive to the aviation field. The boost and perceptions of the inflight service trigger by the raise of low cost airlines in previous years added to several
discordance of customers, this tendency in fact, constitute further critical derives for aviation’s companies in developing, innovating, as well market inflight services they provide in leading the market. Enhancing inflight service was mainly motives by competition in the industry confronting diversity in accordance to passengers’ requirements but brought consequences as well, for instance, the fact that seats are categorized as economy, business and first class.
2.3.2 Concept of on-board services at Air Asia.
Usually the things that stuck in passengers mind is to land safely to their final destination, considering that their willing to comfortably arrive while flying on-board. All of the components related to inflight service combined with the travelling experience display diverse stages looking at profits, according to the mutual significance the traveler provides to one stage another as well as the kind of customer.
The result of on-board experience as well as the fact to which a customer is pleased or not can be narrowly connected to recurrent buying behavior combined with long-period loyalty. Services mostly doesn’t reflect physical appearance due to the fact that they come under a form of performances than physical items, exact industrial provisions regarding constant quality can hardly be established. Due to the unphysical character of service, organizations’ could take it as a challenge for them in understanding clearly the way their buyers perceive the overhaul. Valuable customer service will require the marketing team to focus more into the physical aspect of services in tandem to built-up a steady company image. To do so, the company has to communicate properly to the standing audience the attributes of the service delivered. On-board facilities delivered by steward crew have actually an impact to the satisfaction of customers. Based on Skytrax aviation, Air Asia is ranked 1st among the budget airline in 2019.
2.4 Information Technology
It is under the field of computer that is related to any enhancement patterning to software, hardware, network, implementation, application, design that is crucial in today’s business environment resulting in supporting information systems within an organization. The workers under the IT department will be dealing with enhancement of software, added to installation plan as well as manage the IT life-cycle of a company through where maintaining, upgrading, replacing software and hardware are proceeded. Whenever both, business approaches and Information technology are
set on, the information technology structure tend to be more efficient in forecasting upcoming changes in business desires, and adapt to those changes through providing and diverting means to fulfil business requests.
2.4.1 Information technology at Air Asia.
One among the imminent success that has known aviation industry so far is the existence of Information technology. Airlines are bind to serve people in moving from a place to another known as destination(s). Moreover this world is englobed by billions of people in different places. It would be an awful issues if there wasn’t IT as it will lead to confusion between clients and the organization, even the processing of the airlines won’t be smooth. Adding the fact that in this society people mostly face similar challenge in daily life like traffic, time, work stress. An efficient and effective service is what people tend to look more as their works take most of their time. Stating so, those people as having time issue wouldn’t be spending more time on inappropriate things as to know queuing in purchasing item or to wait on extended hours. Having understand that, several airlines among which Air Asia, have set online platform for flight ticket booking in tandem with hotel accommodations resulting in saving clients’ time and boost satisfaction of the customers.
2.4.2 Reliance of information technology to customer satisfaction.
It is literally noticeable that technology in this modern time is more and more sophisticated. Several organizations have set information technology in their corporation way to develop their business (es). The incorporation of Information technology has a positive impact on organizations in supporting to improve the management of the organizations’ tasks. Considering the fact that, the public audience is interested in organizations with more IT based competences combined with the benefits in terms of more stable life-style and make decision towards diverse tasks. This contribute among other reasons for Air Asia to incorporate and invest on information technology to develop more business efficiency and effectiveness with diverse implemented systems in boosting processes following up tendency as well as to serve accurately clients’ request. In another angle, E-Commerce is a current business platform, crucial and even indispensable in today’s business environment, as a management approach, enabling organizations to expose their products or services, make profit through sales, advertisement, buy, and to share information. In other words, E-commerce has a significant role in the aviation industry as to be efficient and effective in terms of business perspectives. It is foreseeable to highlight Air Asia as one among the low cost aviation
line to incorporate E-Commerce as well as a maximization of its information technology utilization managing Air Asia in an effective and efficient way added to the inception of making their business low-priced.
2.4.3 Various Systems used at Air Asia
Air Asia is in use of diverse types of systems implemented for maximizing profits of the company added to speeding up and convenience of tasks management. Those information system that is being used by Air Asia are the Yield Management System (YMS) which execute the task of finance as to know consider operational cost and foreseen profits. Moreover, they utilize this system namely Computer Reservation System (CRS) which has an output of online based booking as well an inventory system seen that it’s a direct sale generator. Last but no least Air Asia was aware of time saving, fasten the report in tandem with restoration of data processes were crucial factor to develop more accuracy resulting in their incorporation of the Enterprise Resource Planning (ERP) to support those listed activities.
The upcoming of technology in general widen opportunities for corporations like Air Asia in enhancing more awareness and approaches to adapt to online model. As a main reason of the advanced, fast speed of internet network communication, several enhancements in programming power, network unconsciousness among big players become an essential component to determine responsiveness period of their service. Which most probably will have noticeable effect on the satisfaction of customers (Aboolian, et al., 2012). Services provided through online are seen to be technology that manage a company customer relationship management (CRM) (Green, et al., 2012). Services set online consist of a quantitative information and investigation heading to get better understanding or perception about the comportments of satisfy customer (Hamilton & D, 2013). However, in companies where exist deployment of technology patterning to each client touch point is considered as cultural alteration (Petouhoff, et al., 2014).
2.4.4 Perspectives in using information technology.
It consist currently of a managerial approach that is looking at transforming potential customers to loyal ones through achieving their requests (Swift & R.S, 2014). It’s considered as a rehearsal managing request through CRM, customer relationship management. As a company business practice that detects, chooses, procures, progresses, and maintains in order to serve clients well.
These are tools used by companies to develop sustainability by optimizing returns, incomes, in tandem with clients’ satisfaction through stimulating behavioral satisfaction of customers. Moreover, enhancing relationship related to clients, delivering quality upon conveyed by the main item. The partial action that can be executed in this part would be the accomplishment of excellence in operation; resourceful practice resulting in satisfaction of clients.
2.5 Quality Service
Quality can be seen as an abstract as well as inaudible concept. It is mostly align to being categorized as luxe, silkiness, weightiness, in fact it is an issue for clients to properly conceptualize quality and its necessities.
2.5.1 Model used as SERVQUAL description.
The desire of developing measurement of quality service has been noticed to be crucial by several researches. SERVQUAL is a management tool set to the measurement of service quality focused on broad investigation patterning to general elements related to quality service perception. SERVQUAL tool, recognized as being standard for gauging different levels in service quality. This instrument is a well-based multi-item scale reliable as well as valid, which investigator could utilize so that to improve understanding of prospects from service in tandem with what clients perceive resulting in enhancing service. It was selected due to its value regarding its periodic usage in tracking the tendencies of service quality in addition to its utilization combined with diverse methods of measuring quality service. SERVQUAL model consists of five elements known as: Tangible service, Reliable service, Responsiveness, Assurance in tandem with Empathy.
2.5.2 Dependability of quality service to Air Asia.
Even though it’s broad pragmatism, the instrument has been knowing as critics developing the opinion of exclusion of costs during the valuation or even the consideration of expected values being taken as a variable in computing overhaul quality. The most often criticisms raised upon this model might be headed to the deficiency in terms of unclear connection binding satisfaction and perception of quality service that has acknowledged a few studies. Lately into that, a comparative model namely (SERVPERF) was developed in relation to cover the argument for those motives, relating to findings supporting the fact there is no dependency from quality to expectations moreover it can straight away be dignified through performance measurement-based quality service.
Commitment to satisfied customer, rely in some extent in the quality provided to clients. On-going improvement of clients’ experience and satisfaction are the requirement set as key elements to deliver quality to clients within a competitive environment as to known aviation field. Referring to (Schneider, et al., 2015), generally, clients are mostly categorized from moderate dissatisfaction to moderate satisfaction. The operation level combined to general satisfaction are two levels into considering satisfaction. It was in prior stated that satisfaction derived from quality service by Cronin and Taylor (2011). Hence, there is controversy in the sense that throughout diverse conducted investigation on multiple-organization displayed via LISREL (Linear Structural Relations) a tool set by windows to perform statistical analysis has revealed a contradictory affinity. From that extent quality is taken as being single among service features that contribute to client’s satisfaction conclusions.
2.5.3 Reliability of quality service.
In a general paradigm where quality service is well apprehended by companies and taking into consideration the perception of the services they deliver to clients’ are considered crucial to develop quality beyond customer satisfaction. The results awaited from quality include as it has been stated, valuable expectations of clients added to the service delivery content or performance. Moreover, enhancing quality of service will commonly lead to increase the satisfaction of customers resulting in a great competitiveness.
As a conclusion binding divergence of satisfaction of customer and quality service, where quality link to administrative conveyance patterning to the service, whereas satisfaction relies on clients’ prospect towards that service.
2.6 Advertising
It’s a marketing term set as approach utilized through business, company or organizational purposes aiming at promoting products and services to the standing audience. The principal objective of advertisement stand at enhancing sales through displaying positively these products and services. Looking at diverse studies marketing based field in tandem with departments like accounts and finance highlighted that advertisement expenses can impact on company’s sales and finances in a direct and indirect way. Hence, well performed advertisement could result in suitable answers for instance steady competiveness widen preference of clients similarly to positive perception of their image. It has been noticed by (author) that advertisement creativeness stand to
its capability in terms of attracting clients consciousness at same time valuing brands. In fact, brands underperformance, usually appeal to upsurge creativeness looking at advertisement resulting in gaining further customer equity at the same time valuable brand.
2.6.1 Importance of Advertisement at Air Asia.
Hence, all these methods performed through advertisement enhance upcoming sales in tandem with the revenues of the company (Kirmani, et al., 2013). Additionally, advertisement could fasten responsiveness of clients moreover encourage rapid market penetration. (Srinivasan, 2014) Emphasis that advertisement supports quick consciousness of first-hand items which could fasten the distribution process, suggesting company’s advertisement result in surplus as well as quicker In/out flows. Furthermore, it benefits in a way that it smoothen the demand during various season moreover decreases buyer risks combine to prudency in spending. (Byzalov & Shachar, 2011) Noticed that, advertisement bring light about some ambiguity patterning to disinclined threat encountered by clients. Similarly, advertisement could form a hurdle to rivalry, provide bargaining power towards suppliers added to a steady attainment of an efficient and flexible competitiveness in adjusting to market changes compare to its rivals (McAlister, 2012). These advertisements’ benefit facilitate companies to appreciate upper monetary value. However, advertisement expenses is noticed to boost company profits (Joshi, et al., 2012).
2.6.2 Significance of advertisement to customer satisfaction.
It has been noticed that organizations are financing millions of dollars into marketing sector each year. Majority of this financing will be provided to advertisement expenses. In an overall view of a manager, it expel the influence that gather the advertisement approach to the company returns. Considering prior years investigation, numerous studies qualify advertisement as a direct impact to the profit (Frieder, et al., 2015). Advertisement’s value stand at its ability to support motivate or uphold sales. In fact, advertisement is more often utilized in terms of independent variable through clarifying alterations in sales (Lilien, 2018).
Advertisement is a crucial panel, as a playmaker in each business added to aviation business. Taking Malaysia Airline which come up with originality to advert their flight tickets through displaying the net fare charge due by the client. The advertisement appeal mostly customer with several special requests while it’s restricted to a few in tandem with significant information being simply minor pattern. A fare of one way will be charge to passengers although the advertisement
content was to provide gratuity on tickets whereas several clients considered that it was a two ways flights.
Often, advertisements tend to set high its promises whereas firms underperform while delivering their deals. Consistency in delivering value to clients is crucial to any organization with attentive as well as meticulous staff in order to avoid uncertain service restrained to clients. Company as Air Asia set their moto as being reflected to their service provided to clients known as ‘Now Everyone Can Fly’ behind this slogan Air Asia differentiation cost looking at no-frill services is right on point with their target, advertisement purpose with various promotion including free-seats or Zero Fare charge. In fact, Air Asia must be watchful with its advertisement campaign they use to set because by falling to deliver essential promise as displayed in the marketing panel of the advertisement failing to do so would impact on satisfaction of clients.
Current on-going business climate is known to be very competitive and is continuously deluged with advertisements. Previous investigations have come to the result that advertisement contributes to factor impacting clients buying behavior. Expectations of valuable returns on the single amount spend by the clients is crucial to them.
2.6.3 Evidence of advertisement marketing tool.
Organizations have been relying for years to advertisement, bringing new clients as well to maintain the existing ones in contrary, the tendency of perceiving advertisement is qualify by customers in a different way meaning that they consider market research as a form of advertisement. Recently, through the investigation assessed via Cant corporate, noticing an average of 62% clients are willing to buy an item in condition where their view is adapted with the brand, a sub of 52% in fact have the feeling of brand fidelity if it requires time into finding their belief. Moreover, brands feeling performance is mostly felt through marketing research outcomes specified by 70% of clients, another 77% supporting the fact that brands tendency today is to listen more on the clients’ desire compare to a decade ago. Hence, this set up a contrast to a standard insight that advertisement had been set uniquely to the extent of reaching as well maintaining clients meanwhile through getting in contact and taking actions over their requests is meaningful towards clients.
Conclusion
Referring to the outcomes developed in this chapter, it can be summarized that the variables as known to service strategy have impact on the customer satisfaction level, added to the interdependence that exist or correlate linking the service strategy to satisfaction of customers and through diverse materials to highlight on research instruments, various previous literatures developed by different authors.
CHAPTER III
RESEARCH METHODOLOGY FOR IMPACT OF SERVICE STRATEGY
Introduction
In this chapter, the main focus would be developed on the framework relying on various tools utilized into attempting this report through considering method or technics employed to gather outcomes as well as dispatching collected data converting them into statistics and analytical data to come with verified output.
It will be explained the way the research was done through answering the research questions. First and foremost to address the research questions follow up by sampling design in tandem with data collection. In order to focus our study, the model that was developed by (Saunders, et al., 2009)will be taken as our foundation.
Figure 1. Research Onion framework
Source: (Saunders, et al., 2009)
3.1 Research Methods for Impact of service strategy
Through the path of conducting an investigation looking at business perspective, discern the methods used is necessary patterning to deductive as well as inductive approach. Seen that there is correlation in both methods, incorporating contact of insight added to rational which result in high theories.
As held via Saunders, a research approach constitute a path to increase information within a precise theme of investigation. Similarly, choices patterning to an analysis emphasize the aims of researchers towards the method so that to sort out a particular issue (Bryman, 2012).
3.2 Deductive Approach
It consist mainly of an approach regarding to develop hypothesis relying on present concept, come up with a design of research stratagem analyzing the assumption.
Likewise, the deductive approach shift from essential to broad. As considering a fundamental rapport or link is implicit to a precise theory or circumstance, it possibly will be effective for further
circumstances. An analysis could take place as per checking on the link acquired pattern to further extensive circumstances.
Source: (Dudovskiy, 2012)
3.3 Inductive Research Approach
An inductive approach is set as a bottom up technic which rely on shifting from explicit views to further theory (Creswell, 2011). Building a well-structured investigation link with the fact of identifying in prior rules resulting in theories as guidance to the researcher on the report whenever it commences amassing ideas in gathering significant evidence patterning to the subject of intrigue. It’s considerable in fact that inductive method is a scheme that goes from broad to particular opinion (Hashemnezhad, 2015).
Source: (Saunders, et al., 2009)
Critical argument: “continuous alterations in the Aviation industry”
The persistent alterations of concepts patterning to this study inflicted issue regarding deductive research approach. In fact, impact towards the logic of this investigation might occur as due to on- going alterations in the aviation field in tandem with diverse conditions in which this study is led. Thus, current theories applied within certain specified tested circumstances will be the focus point.
3.4 Rationale of Deductive Approach
Throughout the whole procedure of this undertaken research, deductive technic is being applied through assembling data from previous research theories in tandem with responses compound from Air Asia clients. Doing so, will support to investigate on impact of service strategy towards Air Asia customer satisfaction.
3.5 Research design:
Qualified as a tool in the extent that it inflicts wider supremacy to features which probably could impact on the acceptability of the results (Creswell, 2014). Relying on Parahoo, who understand research design as a procedure explaining the: way, period as well to the moment data should be composed and studied.
3.6 Exploratory research design:
This phase is mainly looking at exploring the research questions in fact, doesn’t willing to provide absolute and decisive elucidations to current issues. This type of investigation is frequently led in studying an issue that hasn’t been plainly clarified until today. The main concept that lays behind this theory is to define the appearance of the issue, it’s not set into a basis of willingness in providing conclusive evidence, and consequently it supports to have clearer understanding of the issue. Hence the investigator might intend alteration to its track resulting in revealing new data and perceptions.
3.6.1 Descriptive research:
Referring to (author) this type of research is performed in the sense of providing a condition’s representation as it generally occurs. Its utilization could be supportive to actual practice, provide a conclusion as well as general assumptions. The setting of descriptive research reflect exceptionally
inflexibility combined to a well-organized structure in dealing with collected info (Saunders, et al., 2009).
3.6.2 Causal research:
It refers currently to the fact of examining situations as well to the connexions or relationships patterning to final discoveries (Brains, 2011). Hence, categorizing it is critical as difficulties occur to notice difference in projected variables causing the alteration in another variable.
Rationale of conclusive research method:
So that to qualify the impact of service strategy towards customer satisfaction, conclusive research technic has been opted towards the investigation issue. As survey was set looking at gathering data and variables labelled independently, has resulted in the application of descriptive approach.
As the objective is looking at understanding the link binding service strategy impact to customer satisfaction relying on previous theories, to further have a wide apprehension on the issue, causal research approach is selected.
3.6.3 Research Methods.
In prior, countless diverse controversies has took place in concern with comparative advantages of qualitative and quantitative approaches for analysis. Analysts in fact have various sights on this concern, as to know certain consider the two methods as unrelated added to those confusing on both within their reports. Hence, Alan Brayman believe that both technics should be merged which causes controversy in the prior statement. In other hand, Hughes C emphasis on this methods that fail to evaluate the veracity of methods. Precisely, quantitative approach is viewed as being more coherent and objectivist.
3.6.4 Quantitative Approach.
It consist of a technic reflected in research investigation which can be displayed treated through dealing with numbers, scientific or even computerized methods. The main focus of this approach lay on enhancing in tandem to engaging numeric approaches, expectations impacting this present investigation.
Measurement procedure is crucial to this method as it provides significant relation that may exist within perceived and calculated statistics in terms of computable relationships. Any quantitative
numbers that can be interpreted or translated from statistical form to graphic representations and so on… are considered as quantitative methods.
Looking at the efficiency diagrams scheme, charts, as well to tables, investigators will be able to get a display of information portrayals without having to extend ideas. The final outcomes have then accuracy and relevancy as they were extracted from verified source, logic and theory. The understanding of the information in fact is directed through procedures to review the legitimacy of the instruments. Hence, procedures are set as directive to understand the information, examining the validity of the tools (Creswell, 2014).
3.6.5 Qualitative Approach.
It consist of a tool that is being utilized within diverse field but significant in a proposed report to enhance and support facts or findings into developing further perspectives, besides getting basic understanding of concepts, logics and stimuluses. It enlighten visions within the subjected problem, innovative ideas, or even concepts confined to eventual quantitative investigation. It’s moreover set to highlight perspectives in ideas, added to theories and look deep into the matter.
Qualitative data approaches can either be partially-structured or not structured stratagem. It’s mostly led in various way such as interview meaning a straight interface communication. It is represented under the sample format as having an insignificant number combine to the fact that respondents get to be selected to gratify a specified amount.
Rationale of selecting Quantitative Approach.
As per looking at the current on-going day to day changes in the business environment, where competitiveness is held as being a key success factor, contemporary business issue as well to the constraint makes it expensive and challenging in conducting qualitative research technic. Considering that, alteration of outcomes may occur from the contemporary period which could result in the investigation being inaccurate or irrelevant.
Having state that, it is quasi necessary to pursue this investigation applying a quantitative method due to the fact that it supports the investigator through providing accuracy and effectiveness of data making the research topic understandable.
3.7 Data Collection Method
Proceeding into social research allows the investigator to collect data through many various technics. Throughout this stage, the author will be discussing about various ways regarding assortment of data.
3.7.1 Primary Data
It rely on the data that are collected as first-hand extracted from the target group, meaning that those newly assembled data had never been objected to a previous study or research in prior to the appraisal.
However, primary data, is set as being more reliable than its comparative other. Hence, the steadiness of its nature could possibly involve doubt depending on the objective set by the researcher in tandem with the accuracy of respondents in providing responses. In the same way, the investigator should mind cautiousness and sensibility throughout directing a primary data assortment, so that to apprehend the current matter in this study enabling to come out with fit stratagems looking at greater business decision.
3.7.2 Secondary Data
It represents information that was set previously collected through precedent researches and not from the present researcher.
It’s significant I a way that it provide assistance to the researcher and the research into having further information patterning to the issue of this study, in contrast it highlight issues such as to locate data sources which can be valuable moreover identifying significant data taken from journals, articles, books, reports mainly academic to end with renowned online platforms.
Rational selection of Primary and secondary data technics.
In concern with the present study, primary as well to secondary data collection technics is being utilized. The primary data in this case will be extracted from Air Asia customers. In fact, secondary research is being taken based on previous studies aiming at apprehending the issue related to factors impacting customer satisfaction.
Besides, both methods have attempted in providing wide information to approach the related issue of this report combined to the help in attempting research purposes.
3.7.3 Research Sampling
A report is usually bind with a number of participants, items taken from a broader population for sizing purpose which are to be set as categorized to focus group considered as required to the student. Through this, it doesn’t exist a formal guidelines to follow; the investigator have to rely on rational thinking as well to finding. There ought to be a connexion between the target group and purposes of this report so that to come out with valuable information and theory patterning to the issue.
Source: (LearningMarketing.net , 2017)
3.7.4 Targeted Group
The targeted audience look at Air Asia customers in the area of Kuala Lumpur, Malaysia with an age from 15 or above. The targeted population have to understand and communicate in English in accordance to discern customer satisfaction concept.
3.7.5 Sampling Frame
In this study, a number of 150 respondents will be considered as the sample respondents which will be conveyed to customers of Air Asia through a survey prepared through Google Docs based on network resources availability and emails. The upcoming lines will be emphasizing into further detailed information concerning the questionnaire.
3.7.6 Sampling technique
It is consent to contain mainly two components namely: probability and non-probability sampling. The difference among both techniques lay on whether randomization is comprised or not. In fact,
randomization is considered from the moment all characters assigned in the sampling population present identical chance as to be selected for the study.
Source: (Barewalls, 2016)
3.8.1 Probability Sampling
It refers to a method, containing sample of a broad population being selected based on technic relying on probability concept. In fact, unless a contributor in this report is chosen through a random assortment, contributor can’t be a subject of probability sample (Bhat, 2016).
3.8.2 Non-Probability Sampling
Emphasizing on this step would lead to state that, its form comes as selection approach in which contributors’ probabilities of being selected as sample is not taking into consideration (Ritoris, 2016). It’s currently a contrary of probability sampling which at least can be objected to calculation.
Moreover, probability sampling appeals to a selection conducted unsystematically, whereas the subjected non-probability sampling doesn’t proceed so, it relies in fact on the analyst personal result.
In that extent, it has to be considered whenever the researcher set to use statistic suppositions, non- probability samplings come about to be inaccurate.
Rational of selecting non-probability sampling:
This particular report is mainly in consideration with non-profitability sampling due to reasons facing this investigation to name money and time constraint. In fact, it has a drawback as it can’t be generalized or even being useful to other investigations.
Critical argument: “The effect of sampling preferences on the research”
3.8 Research Approach:
Taken as a synopsis method, the investigator set a structured survey aiming at gathering maximum data consuming less time, energy and expenses. Diverse elements patterning to the researcher as to cite problematic, nature of the report, time and precision level had been highly considered so that to transform the study to survey, expecting results from collected information.
In the terms of achieving totally this investigation objectives as well to analyze carefully the structure, the author will be bind into conducting a survey helping to identify and represent the imminent features impacting this report.
Section 1. Personal Questions.
This part is mainly in concern with questions relating about the participant profiling as to know the age, gender, ethnicity and earning per month. It will sort out for the researcher profiles that match better with Air Asia satisfied customers.
Table1. Personal Questions
| PERSONAL QUESTIONS |
| What is your age? |
| What is your gender? |
| Which race/Ethnicity best describes you? |
| What is your average monthly income? |
Section 2. General Questions
In this section it’s mostly in concern with connexion that bind participants to Air Asia as to easily get to appreciate early services or future expectation of recalling it will be easy for the customers. It is set as a rational about knowing the repurchase intension that lay behind customer choice in considering its services. It will assist the researcher to get clear outlook to customers repurchase intension towards services provided by the company which result in satisfaction of customers.
Table2. General Questions
| GENERAL QUESTIONS |
| Among these budget Airlines which one have you fly or plan to fly with? |
| Would you choose Air Asia over other budget airlines when purchasing flight ticket(s)? |
| Would you consider to fly with a budget Airlines? |
Section 3. Low cost fare
This part rely on low price of Air Asia towards its fare charge as to have an open panel to the company competitiveness as well to understand how significant it is to customers, since it’s part of the factor leading to customer satisfaction.
| LOW COST FARE |
| Do you consider low price while choosing Air Asia? |
| Does Air Asia perform well on price? |
| Compare to other budget Airlines in Malaysia, Is Air Asia price more flexible? |
Section 4. On-board service
Looking at customer awareness of Air Asia and satisfaction, this part has been set to perform an outlook onto customers’ perception of Air Asia service provided on-board as a tool in gathering sufficient customer relationship management benefit and customer loyalty which result in customer satisfaction.
Table 4. On-board service.
| ON-BOARD SERVICE |
| How important is the service provided on-board when choosing Air Asia? |
| Was the flight attendant helpful during your flight with Air Asia? |
| Are the in-flight facilities at Air Asia better than you expected? |
Section 5. Information Technology
In this section, it looks at apprehending customers’ interaction with virtual services as to provide them consistent information they desire as well to efficiency in executing them with inconvenience in using their diverse technology to better qualify safety as well in delivering value.
Table 5. Information Technology.
| INFORMATION TECHNOLOGY |
| How useful would you qualify Air Asia platforms (online, mobile App…) for booking? |
| Does Air Asia customer support online responsiveness efficient and effective? |
| How would you qualify Air Asia online system security while booking, purchasing or making payment (flight ticket, products, services…)? |
Section 6. Quality Service
Practically, the researcher is bind into finding from this part the overall quality in diverse branches of the company in disseminating clients’ needs and wants patterning to give them more value from this part of the questionnaire the investigator will be measuring among the responses given by participants which is factor to customer satisfaction.
Table 6. Quality Service
| QUALITY |
| How would you rate Air Asia quality service? |
| Does quality service provided at Air Asia stimulate your intention of repurchase? |
| Based on your experience how would you determine Air Asia quality service? |
Section 7. Advertisement
Emphasizing on attractiveness, this section develop for the researcher a global view on the challenging market as for companies to provide diverse sort of sales to pattern on discounts and so on… which approaches will be seen interaction customers to the company for enhancing customer satisfaction.
Ethical Consideration
In the light of emphasizing on this report looking at the impact of service strategy towards Air Asia customer satisfaction, the investigation has encountered diverse ethical considerations meeting qualified as well to institutional principles while conducting the investigation.
Hence, respondents have been fully notified about the aims in tandem to the goals of this report, in avoiding on-purpose mistakes that possibly could encourage respondents’ answers, additionally respondents were notified about the utilization of the outcome results. Below are few actions considered in this report.
>>Information Confidentiality.
The research has locked the composed data from respondents as to consider privacy. By doing so, it is foreseeable that data was privately endorsed, same as the secrecy. The information are subject to protection off illegal approach and restrained to the researcher and its supervisor. Furthermore, information or data were entirely locked to avoid any leakage of the information’s being disclosed to further entities.
>>Data Consistency
In this study, the researcher, managed to handle favoritism or taking side all the way on conducting this study through the fact of aiming at delivering consistent as well to important data. The possibility in terms of controlling or even creating the information assembled, get to be managed throughout an appropriate conviction to attest the investigation efficiency.
>>Consideration of Plagiarism.
Acknowledging the data sources through Harvard Referencing style in conjunction with a summary whenever required has been morally discern to the researcher to concede them. It is set on to lock the path or break distance from written distortion, as well to violation of licensed rights, moreover, the researcher has divulge restriction in terms of copying people’s thoughts or information without their consent.
>>Spontaneous Participation
The participant and researcher have agreed to cooperate based on the freedom to participate in this research or not. Enough time has been spare for the participants so that to make their decision on
being part of the study. Consideration as such for the participants to get away from their contribution on this report as they feeling like.
Limitations Confronted in this study
This will cover or open about the various obstacles and restrictions having encountered the researcher.
-Vocabulary restriction
The report was labelled with Basic English format and being able to literally easily to understand it. In fact it highlight limitation for respondents as per not having Basic English skill.
-Word Count Limitation
This report is set on a basis of budget airline in Kuala Lumpur, knowing that the word count is set at 4500words. Besides, generalizing the outputs by the researcher cannot be bigger gatherings since it’s considered insufficient to entitle each part of the study into getting further exact results.
Gantt chart
Managing time is crucial while setting up a research work. Thus the researcher scheduled a Gantt chart restricted by submission to be monitored.
Conclusion
In an overall summary of this chapter, research methodology patterning to assist the researcher in delivering rationality and consistency towards its final outcomes relying on quantitative as well to qualitative technics approach. First and foremost, general literature about research, and introduce the principal research practical values. The research design method was develop as well based on survey translated into questionnaire format which result in assembling data. The current information assortment procedures have been presented, elucidated as well. Rationality in tandem with consistency had been debated.
CHAPTER IV
DATA ANALYSIS FOR IMPACT OF SERVICE STRATEGY
Introduction
The main purpose of this particular part rely on the collected data that will be subjected to emphasis on the independent variables as to know their relative impacts to customer satisfaction looking at budget airline Air Asia in Kuala Lumpur, Malaysia.
Data was assembled being a support to examine and determine customers insight through a constructed survey which gathered 150 responses taken by the same number as participants.
PERSONAL QUESTIONS
Age Range Distribution
Table1. Age Profiling
| Age profile | Responses (%) | Respondents |
| 15-20 | 15.30% | 23 |
| 21-25 | 40.70% | 61 |
| 26-30 | 36.70% | 55 |
| 31-35 | 6% | 9 |
| 36+ | 1.30% | 2 |
| Total | 100.00% | 150 |
As it can be noticed the generated data from the conducted survey has come out with sufficient details into different categories patterning to subject the analysis of this investigation. The figures above highlighted in percentage refer to age groups where 41% represent respondents under age range between 21-25, followed by the 26-30 years old covering the 37% and 15% of the overall respondents as the 15-20 with less contribution of respondents between 31-35 constituting 6% in tandem with the 1% linked to those 36 and above.
The main reason that lay behind this significant portion of age which can be considered to be a youth range age is mainly due to the area the study is conducted in as it’s surrounded by mostly institutes, organization to say the tertiary sector.
Gender Profiling
Table2. Gender Distribution
| Gender | Responses (%) | No. of Respondents |
| Male | 53% | 80 |
| Female | 47% | 70 |
| Total | 100.00% | 150 |
Looking at the above data referring at the gender profiling where among the 150 respondents, 53% representing 80 respondents are Male and the rest as to know the 70 respondents represent 47% concerning Female. This is principally due to the surrounding environment of the located study is mainly compass by male gender.
Race/Ethnicity Profiling
Table3. Ethnicity Profile
| Ethnicity/Race | Responses (%) | Participants No. |
| Malaysian | 42.70% | 64 |
| Chinese | 13.30% | 20 |
| Indian | 33.30% | 50 |
| Other | 10.70% | 16 |
| Total | 100.00% | 150 |
The assembled information concerning ethnicity emphasize on various percentage of diverse races under the area where research is conducted get to provide Malaysian citizen as 42.70% being the highest, comes in Indian 33.30% with 50 respondents, 13.30% are Chinese counted at 20 respondents and finally international respondents residing in the area represented as other cover 10.70% with 16 respondents.
The diversity in terms of race over here can be explained through the fact that Malaysia has a background of mixed cultures mainly known as following: Malays being the majority, Indians added to Chinese to end up by stating foreigners existence as well in the city of Kuala Lumpur as educational and employment purpose.
Income Profiling (per month)
Table4. Monthly Income distribution.
| Income | Responses (%) | Respondents No. |
| RM1000-RM1500 | 30.70% | 46 |
| RM1500-RM2000 | 46% | 69 |
| RM2000-RM2500 | 16.70% | 25 |
| RM2500-RM3000 | 2.70% | 4 |
| RM3000+ | 4% | 6 |
| Total | 100.00% | 150 |
The figures that have been gotten in this sub-part of this section shows the monthly earning by respondents. In that extent, 46% referring to the highest percentage of responses covering respondents with monthly income of RM1500-RM2000, counted for 69; followed by a 30.70% which concern 46 respondents earning monthly RM1000-RM1500; combined to16.70% representing 25 participants with RM2000-RM2500 income per month; added to 4% earning RM3000 and more to end up with the 2.70% that earn monthly RM2500-RM3000.
The income level dispersion is consent to an average earning monthly as the participants mainly are under educational or working field.
General Questions.
Among these budget airlines which one have you fly or plan to fly with?
Table5. Budget airlines
| Among these budget Airlines which one have you fly or plan to fly with? | ||
| Airlines | Response (%) | No. Respondents |
| Air Asia | 55% | 83 |
| Firefly | 14.80% | 22 |
| Malindo Air | 30.20% | 45 |
| Total | 100% | 150 |
This sub part is covering outcomes of respondents that had previously get to flight or interact with budget airlines operating in the country which gather such outputs as to set: 55% of the respondents, 83 set to have interact with Air Asia compare to Malindo Air which refer to the 30.20% as 45 respondents added to Firefly with 14.80% to represent 22 participants.
It emphasize on the fact that some of the participants didn’t interact with Air Asia in contrast to the 55%.
Would you choose Air Asia over other budget airlines when purchasing flight ticket(s)?
Table6. Choice of Budget Airlines
| Would you choose Air Asia over other budget airlines when purchasing flight ticket(s)? | ||
| Frequency | Responses (%) | No. Respondents |
| Strongly Agree | 16.10% | 24 |
| Agree | 73.20% | 109 |
| Neutral | 5.30% | 8 |
| Disagree | 5.40% | 9 |
| Strongly Disagree | 0% | 0 |
| Total | 100.00% | 150 |
The findings over here highlight on the choice of participants in choosing Air Asia over other budget airlines as it display that, 73.20% as to state 109 respondents agreed to choose Air Asia, 16.10% representing 24 participants strongly agree to that fact, 5.30% are neutral to the statement which state 8 participants, 5.40% counted for 9 respondents disagree and 0% for the strongly disagree.
This figures in fact, led an examination towards the competitiveness of Air Asia which is concerned with its overall services provided.
Would you consider to fly with budget airlines?
Table7. Fly with budget airlines.
| Would you consider to fly with budget airlines? | ||
| Scale | Responses (%) | No.respondents |
| Strongly Agree | 19.50% | 30 |
| Agree | 73.10% | 109 |
| Neutral | 5.40% | 8 |
| Disagree | 2% | 3 |
| Strongly Disagree | 0% | 0 |
| Total | 100.00% | 150 |
This question bring light on knowing the respondents considering to fly with budget airlines where 73.10% to state 109 respondents agree to consider flying with budget airlines, combined to the 30 representing 19.50% that strongly agree to the same statement and neutral respondents consent to be 5.40% as to know 8, added to the 2% who disagree and none of the participants strongly disagree on the statement.
These figures emphasize on the 2% very few of these participants opt to deal with full cost carriers compare to the 73.10% who do not consent issue in getting to the low cost carriers.
Low Price Fare
Do you consider Low price while choosing Air Asia?
Table8. Low price consideration profiling.
| Do you consider low price while choosing Air Asia? | ||
| Frequency | Responses (%) | No.respondents |
| Strongly Agree | 15.30% | 23 |
| Agree | 71.30% | 107 |
| Neutral | 6.70% | 10 |
| Disagree | 5.30% | 8 |
| Strongly Disagree | 1.40% | 2 |
| Total | 100.00% | 150 |
Considering the collected data under this section covering low price attribute to Air Asia impact on customer satisfaction, 71.3% represent 107 respondents matching with agree, followed by strongly agree to respondents as they count for 23 as 15.3%, combined to 5.3% which is 8 respondents as they disagree in tandem with 1.4% relating to 2 respondents to close with neutral respondents as they cover 6.7% and a number of 2.
Table 8.1: Mean, Mode, Median and standard Deviation for Air Asia.
| Mean | Median | Mode | Standard Deviation |
| 3.97 | 4.00 | 4 | 0.695 |
Relying on the collected data which has led to outcomes as statistical form as displayed in the above table displaying a mean of 3.97 and a standard deviation of 0.695.
Does Air Asia perform well on price?
Table9. Air Asia price performance profiling.
| Does Air Asia perform well on price? | ||
| Scale | Responses (%) | No. Respondents |
| Strongly Agree | 5.30% | 8 |
| Agree | 86.00% | 129 |
| Neutral | 7.30% | 11 |
| Disagree | 0.70% | 1 |
| Strongly Disagree | 0.70% | 1 |
| Total | 100.00% | 150 |
The figure dispersed over shows diverse variance of respondents’ choices, the 86% representing 129 of respondents who agreed heading to the 5.3% as being strongly agree to count 8, and 7.3% referring to 11 respondents combined to a low percent of 0.7% to state 1 as being disagree as well as strongly disagree.
Table9.2: Mean, Median, Mode and standard deviation
| Mean | Median | Mode | Standard deviation |
| 3.93 | 4.00 | 4 | 0.487 |
The collected and transformed data constitute a statistical tool with different component of each variable to highlight on the skewness of the variables movement resulting in such output as 3.93 to be the mean and 0.487 standard deviation.
Is Air Asia price more flexible compare to other budget airlines?
Table10. Air Asia price perception
| Is Air Asia price more flexible? | ||
| Frequency | Responses (%) | No. Respondents |
| Strongly Agree | 10.70% | 16 |
| Agree | 60.70% | 90 |
| Neutral | 3.90% | 6 |
| Disagree | 20.70% | 31 |
| Strongly Disagree | 4.00% | 7 |
| Total | 100.00% | 150 |
Similarly to the content of the previous established figures and tables, the respondents have provided a sequence of various figure to extend on 60.7% counted for 90 as set to be agree, 10.7% as strongly agree to state 16 participants, with 3.9% neutral as 6 participants, combine to disagree
participants representing 20.7% with 31 in tandem with strongly disagree as 7 participant to highlight 4%.
Table 10.3: Mean, Median, Mode, standard deviation for Air Asia.
| Mean | Median | Mode | Standard Deviation |
| 3.53 | 4.00 | 4 | 1.060 |
Having a set of statistic panel where the figures extracted from survey pattern into a relationship that will be binding variables to set in here a mean of 3.53 and a standard deviation of 1.060.
On-board service
How important is service provided on-board when choosing Air Asia?
Table11. On-board Service
| Is service Provided on-board when choosing Air Asia? | ||
| Frequency | Responses (%) | No. Respondents |
| Extremely Important | 3.30% | 5 |
| Very Important | 86.70% | 130 |
| Somewhat important | 7.30% | 11 |
| Not so important | 2.00% | 3 |
| Not at all important | 0.70% | 1 |
| Total | 100.00% | 150 |
Rating Air Asia service is being correlate to variables that was subtracted from previous conducted survey in that extent, 86.7% of the 150 respondents to set 130 who esteem very important, followed by 7.3% represent consider as somewhat important representing 11 participants, and 3.3% as 5 participants stand at being extremely important, to proceed on 2% as consent service not so important to state 3 respondents to end up with 0.7% as just 1 participant considering Air Asia service not at all important.
Table 11.1 Mean, Median, Mode, and Standard Deviation.
| Mean | Median | Mode | Standard Deviation |
| 3.91 | 4.00 | 4 | 0.483 |
Revealing the figures to analyse the statistics of the extracted data from the survey as to set a mean on this level to provide 3.91 and 0.483 as the standard deviation.
Was the flight attendant helpful on-board?
Table12. Flight attendant helpfulness.
| Was The flight attendant helpful on-board? | ||
| Frequency | Responses (%) | No. Respondents |
| Strongly Agree | 3.30% | 5 |
| Agree | 83.30% | 125 |
| Neutral | 8.00% | 12 |
| Disagree | 4.70% | 7 |
| Strongly Disagree | 0.70% | 1 |
| Total | 100.00% | 150 |
In this part the data varied as the precedent to state 83.3% representing 125 respondents have consented at agreeing to the statement, 3.3% of the respondents to state 5 have strongly agreed, followed by 8% asset to be neutral with 12 participants as well to the 4.7% being disagree with 7 participants and strongly agree on participants at 0.7% to represent 1.
Table 12.2 Mean, Median, Mode, Standard deviation.
| Mean | Median | Mode | Standard deviation |
| 3.85 | 4.00 | 4 | 0.552 |
Covering the collected would need to emphasize on the mean which is calculated to be 3.85 with
0.552 compile to as standard deviation which will interpret in the upcoming lines to be findings of an overall section to come out with detail evidence.
| Are the in-flight facilities better than you expected? | ||
| Frequency | Responses (%) | No. of Respondents |
| Strongly Agree | 4.7% | 7 |
| Agree | 77.9% | 117 |
| Neutral | 6.7% | 10 |
| Disagree | 8.7% | 13 |
| Strongly Disagree | 2% | 3 |
| Total | 100% | 150 |
On the basis of service provided by Air Asia, 77.9% agree to have a better expectation as to state 117, to pursue in strongly agree participants at 4.7% being 7, as well to 6.7% consent as neutral set at 10 participants, 8.7% to count for 13 respondents have disagreed in tandem with 2% consent being strongly disagree as 3 participants.
Table 13. Mean, Median, Mode, standard deviation.
| Mean | Median | Mode | Standard deviation |
| 3.76 | 4.00 | 4 | 0.766 |
As to establish relationship towards diverse linked variables, it’s extracted through SPSS to get such statistical output stating the mean and standard deviation being estimated successively 3.76 and 0.766.
Information Technology.
How useful is Air Asia Platforms (online, MobileApp…)?
Table13. Profile on usefulness of Air Asia platforms.
| How useful is Air Asia Platforms (online, Mob.App…)? | ||
| Frequency | Responses (%) | No.respondents |
| Extremely Useful | 8.70% | 13 |
| Very Useful | 87.90% | 132 |
| Somewhat Useful | 2.70% | 4 |
| Not Useful | 0.70% | 1 |
| Not at all useful | 0.00% | 0 |
| Total | 100.00% | 150 |
Since qualifying the information technology is part of the study it was included to the survey where targeted respondents have a very useful view at 87.9% which relate to 132, followed up by 8.7% representing 13 participants set to qualify as extremely useful, to proceed into 2.7% as 4 participant to consent as somewhat useful, with only 1 respondent set as not useful.
Table 14.1 Mean, Median, Mode, and standard deviation
| Mean | Median | Mode | Standard deviation |
| 4.05 | 4.00 | 4 | 0.372 |
Having stated the above figures, the mean shows 4.05, in tandem with 0.372 takes the value of standard deviation which will enhance the findings in the next chapter to come out with verified concept of diverse particular variable.
Does Air Asia online customer support responsiveness effective and efficient?
| Does Air Asia customer support online responsiveness efficient and effective? | ||
| Frequency | Responses (%) | No. Respondents |
| Strongly Agree | 7.30% | 11 |
| Agree | 78.70% | 118 |
| Neutral | 7.30% | 11 |
| Disagree | 6% | 9 |
| Strongly Disagree | 0.70% | 1 |
| Total | 100.00% | 150 |
Looking up the partial findings from the survey, 78.7% counted for 118 who agree at the statement, going on to the strongly agree participants counted for 11 as a percent of 7.3% similarly to the
neutral respondents, to proceed on 9 respondents being at 6% to disagree in tandem with the 0.7% as strongly disagree.
Table 14.2 Mean, Median, Mode, standard deviation.
| Mean | Median | Mode | Standard deviation |
| 3.86 | 4.00 | 4 | 0.656 |
The concept that the figures was highlighted and computerized to come out with relevant interpretation of the upcoming findings which shows a mean of 3.86 in tandem with the standard deviation of 0.656.
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How would you qualify Air Asia online system security?
Table15. Air Asia online system security profiling.
| How would you qualify Air Asia online system security? | ||
| Frequency | Responses (%) | No. Responses |
| Very Satisfied | 2.70% | 4 |
| Satisfied | 89% | 133 |
| Neutral | 7.30% | 11 |
| Dissatisfied | 0.70% | 1 |
| Very Dissatisfied | 0.70% | 1 |
| Total | 100.00% | 150 |
In a coverage of satisfaction based statement, 89% are satisfied with Air Asia to state 133 respondents, with very satisfied respondents at 4 set at 2.7%, with a neutral audience of 7.3% as
Table 14.3 Mean, Median, Mode, Standard deviation.
| Mean | Median | Mode | Standard Deviation |
| 3.92 | 4.00 | 4 | 0.426 |
From the point of establishing significant relationship that exist among variables with details of participants to state statistic figures as to highlight a mean of 3.92 and standard deviation at 0.426.
Quality
How would you rate Air Asia quality service?
Table16. Air Asia quality profiling.
| How would you rate Air Asia quality service? | ||
| Frequency | Responses (%) | No. Respondents |
| Strongly Agree | 6.70% | 10 |
| Agree | 82% | 123 |
| Neutral | 10% | 15 |
| Disagree | 1.30% | 2 |
| Strongly Disagree | 0% | 0 |
| Total | 100.00% | 150 |
In this different section, participants have validated fully the survey, as to highlight 82% as being agree participants to represent 123, a 6.7% as 10 participants have strongly agree to the concept combined to 10% of the participants as 15 did not take side, in fact, 1.3% only have disagree to the statement to state 2 respondents and none of the participants strongly disagree.
Table 14.1 Mean, Median, Mode, Standard deviation.
| Mean | Median | Mode | Standard deviation |
| 3.94 | 4.00 | 4 | 0.467 |
As highlighted in the above figures examination needed to be done in order to come out with hypothesis to support evidence of skewness, in that extent the mean computerized resulted in the following numbers, 3.94 for the mean and 0.467 representing the standard deviation.
Does quality service provided at Air Asia stimulate your intention of repurchase?
Table17. Repurchasing intention of clients.
| Does quality service provided at Air Asia stimulate your intention of repurchase? | ||
| Frequency | Responses (%) | No. Respondents |
| Strongly Agree | 8% | 12 |
| Agree | 70% | 105 |
| Neutral | 8% | 12 |
| Disagree | 13.30% | 20 |
| Strongly Disagree | 0.70% | 1 |
| Total | 100% | 150 |
In the extent of giving point at various stages, 70% of the respondents to set 105 have agreed to the above statement, to continue with 8% representing 12 participants being strongly agreed which cover the same as neutral, pursuing with 13.3% as 20 respondents to disagree and 1 respondent to strongly disagree at 0.7%.
Table 18 Mean, Median, Mode, standard deviation.
| Mean | Median | Mode | Standard deviation |
| 3.71 | 4.00 | 4 | 0.822 |
Upon the figures disperse above the graph, tools such as mean and standard deviation will be used to relation any interdependency that may link variables into the discuss course of various variables setting at 3.71 to be the mean and 0.822 being the standard deviation.
Based on your experience how would you determine Air Asia quality service?
Table 18. Air Asia quality profiling.
| Based on your experience how would you determine Air Asia quality service? | ||
| Frequency | Responses (%) | No. respondents |
| Very Satisfied | 2.70% | 4 |
| Satisfied | 88% | 132 |
| Neutral | 7.30% | 11 |
| Dissatisfied | 1.30% | 2 |
| Very Dissatisfied | 0.70% | 1 |
| Total | 100.00% | 150 |
In another angle from the same survey, 88% of the respondents set to be satisfied signifying 105, to continue with the very satisfied respondents to state 2.7% concerning just 4, and 7.3% have opted not to answer which lead to highlight on the 1.3% being dissatisfied representing 2 respondents in tandem with 0.7% as 1 to be very dissatisfied.
Table 14.3 Mean, Median, Mode, Standard deviation
| Mean | Median | Mode | Standard deviation |
| 3.91 | 4.00 | 4 | 0.417 |
Statistical approach is being consider in this study to come out with skewness of the patterning investigation reason to emphasize on mean and standard deviation set successively as following: 3.91 and 0.417.
How often do you notice publicity or advertisement about Air Asia?
Table19. Advertisement profiling at Air Asia.
| How often do you notice publicity or advertisement about Air Asia? | ||
| Frequency | Responses (%) | No. Respondents |
| Always | 6% | 9 |
| Usually | 50.70% | 76 |
| Sometimes | 38.70% | 58 |
| Rarely | 4% | 6 |
| Never | 0.70% | 1 |
| Total | 100% | 150 |
Looking at the frequency towards respondents consent on this survey has brought various data as to proceed on 50.7% usually noticing about Air Asia advertisement to state 76, followed by the 6% who always notice about Air Asia advertisement comprising of 9 respondents, with 38.7% to notice just sometimes to set 58 participants, 4% of them meaning 6 do notice rarely and 1 as 0.7% has never notice about it.
Table 20.1 Mean, Median, Mode, standard deviation
| Mean | Median | Mode | Standard deviation |
| 3.58 | 4.00 | 4 | 0.678 |
In the light of analyzing and coming up with well-defined hypothesis a set of tool have been adapted to the study as to know the mean which represent 3.58, and the standard deviation at 0.678.
How reliable is Air Asia promotions (flight tickets, discounts, packages…)?
Table20.1 Air Asia promotions reliability profile.
| How reliable is Air Asia promotions (flight tickets, discounts, packages…)? | ||
| Frequency | Responses (%) | No. Respondents |
| Extremely Reliable | 7.40% | 11 |
| Very reliable | 83.30% | 125 |
| Somewhat reliable | 7.30% | 11 |
| Not Reliable | 2% | 3 |
| Not at all Reliable | 0% | 0 |
| Total | 100.00% | 150 |
Reliability is a factor to consent at analyzing or conducting a study, from that extent, 83.3% consider very reliable Air Asia promotions representing a number of 125, with an extremely reliable consent by the respondents to set at 7.4% with 11 respondents, respondents who are somewhat reliable count for 11 with 7.3% and those, not reliable falls at 2% to state 3 respondents, added to a null result from a respondent who set not at all reliable.
Table 21.2 Mean, Median, Mode, standard deviation.
| Mean | Median | Mode | Standard deviation |
| 3.96 | 4.00 | 4 | 0.476 |
From that perspective, supporting the evidences of final findings will lead to constitute a different variance of tool relying on statistics to apprehend skewness of variables that may link up together which lead to having mean at 3.96 and standard deviation of 0.476.
How engaging is Air Asia advertisement to satisfaction of customers
Table21. Air Asia advertisement engagement profile.
| How engaging is Air Asia advertisement to satisfaction of customers? | ||
| Frequency | Responses (%) | No. Respondents |
| Extremely Engaging | 8.70% | 13 |
| Very engaging | 76% | 114 |
| Somewhat engaging | 8% | 12 |
| Not engaging | 6.60% | 10 |
| Not at all engaging | 0.70% | 1 |
| Total | 100.00% | 150 |
In a consistent way the responses collected have objected in diverse view of participants which takes the research to extract data transforming them so that to verifying and come out tested hypothesis.
Through that, advertising contribute at its development internally as well as externally. Respondents have set part as 76% state it to be very engaging meaning 114 respondents, followed by 8.7% who set it as extremely engaging, pursuing with 8% of the respondents consider it’s somewhat engaging to qualify 12 participants, on the other hand, 6.6% qualify it as not engaging to state 10 participants and only 1, 0.7% highlight that it’s not at all engaging.
Table 22.3 Mean, Median, Mode, standard deviation.
| Mean | Median | Mode | Standard deviation |
| 3.85 | 4.00 | 4 | 0.689 |
Coming into the point of emphasizing about skewness, the developed statistic tool that has been computerized set different tool that enable to describe the convergence of diverse variables to set that mean as 3.85 and standard deviation at 0.689.
4.1 Pearson Correlation relationship
This approach is set as to determine any relationship that may be bind within two variables as to set measurement. Analyzing te way both variables correlate is important in order to determine the strong relationship that bind them. As it is mentioned the assortment of Pearson correlation value vary from -1 to +1.
From that extent, a positive relationship is acknowledge when the Pearson relation falls as (+1) in the other way it turns to be negative as taken to -1.
Another point in this part is that the relationship is seen to be significant when the sig. (2-tailed) is below 0.01.
4.2 Correlation binding Air Asia price performance to its service provided.
The above figure set a relationship binding price performance to service provided at Air Asia to know which result in customer satisfaction.
Referring to the above table which highlight the outcomes of the Pearson correlation which is actually perfectly looking at the positive side as the measurement shows the trend of the figures to state on the (+1). As it can be seen in the table, 0.5 in both variable which qualify the steady correlation between them as to state positive relation.
Moreover, the value symbolized as .000 consist of a good assumption to the significance level mainly due to the fact that it’s not more than 0.01.
In fact, 0.01 being greater than the p value or taken as sig. (2-tailed) is at the normal estimated standard which means that the two variables match properly as there is significance relation where service provided at Air Asia match with customers expectation and price is constant.
4.3 Correlation between advertisement and service quality in providing customer satisfaction.
This table shows a set of data that was extracted from Pearson based statistic to come out with evidence of existing correlation between both variables displaying the convergence to provide promotions and advertisement panels as to fulfil and attract customers with the support of high standard service.
As it can be seen there is a positive relationship that exist among these variables as to state (+1) which determine the fact of having strong relationship. The value that highlighted at 0.412 as p value.
Besides, the value that determine a significant relationship is at the exact point to 0.000 which is not superior to 0.01 which confirm the significance of these two variables.
It can be concluded from that there is a strong correlation among the variables added top value being lesser 0.01 which shows the supportive action of advertisement in tandem with its high standard service it offers. It can said that both variables generate strong relationship.
4.4 Correlation between Air Asia price and service value expected.
The above table represent an assembled data looking at Pearson correlation emphasizing about the relationship that exist between Air Asia price flexibility and the service they provide them back meaning the value of the purchased service as precisely the in-flight facilities since customers rely more on flying with the company. As state in the above tables, these two variables are dependent meaning they constitute a perfect matching correlation to state the positive correlation (+1).
Looking in a wider angle, p has a value of 0.357 which is showing steady undeviating liaison among the two variables. Additionally, it can be noticed that the sig. (2-tailed) significance as standard remain .000 comparing it to the obtained level of significance which is not more than 0.01.
Hence, the collected value of p is lesser than 0.01, displaying broad illustration patterning to Air Asia price flexibility in giving customers same amount of service resulting in satisfaction of customers to attract as well the potential. In fact, from that view, it can be said that there exist well established relationship between price flexibility and the service provided value to their price.
4.5 Test of Reliability.
Table Reliable statistics for current data.
| Independent Variables Cronbach’s Alpha result No. Items | ||
| Low cost Fare | 0.933 | 8 |
| On-board service | 0.840 | 7 |
| Information Technology | 0.911 | 4 |
| Quality | 0.803 | 6 |
| Advertisement | 0.921 | 3 |
A it can be noticed through the provided table relying on statistical numbers patterning to the independent variables are more than 0.6. Based on the software used in extracting these numbers known as Cronbach Alpha indicates that the strength in tandem to the factors is considered weak if in case of, the above computerized data reflect value as being inferior to 0.6.
The following table has a clear display of diverse alpha coefficient to state the more significant as it refers to low cost fare 0.933 meaning the low price is well appreciated by customers of Air Asia, to emphasis on advertising which profit Air Asia to set 0.921; with a steady system of information technology the coefficient fall to be 0.911 as third reliable variable, in fact, on-board service has a value of 0.840, hence quality in diverse sector provided at Air Asia seems to constitute an issue to customers since the coefficient is the lowest 0.803.
Conclusion.
This chapter has enable the researcher to collected data through the survey under questionnaire form that was distributed in order to collect sufficient data in analyzing and interrelating various possible relationship and discordance to come out with evidence on the findings as it shows even that the independent variables gather a convergent relationship.
Chapter V
RECOMMENDATIONS AND CONCLUSION.
Chapter outlook.
As a last chapter patterning to overall conclusion and provide recommendations on the variables that was tested in the previous chapter setting up findings as to illustrate with evidence which is supportive in having better apprehension of the case or the report being investigated.
In fact, the content of the conclusions will be limited. Through the upcoming lines, linked diverse variables where conclusions could be taken as inaccurate assumptions. Hence, these conclusions are being critically revised towards customer satisfaction in tandem to the factors impacting satisfaction of customers among Air Asia clients.
5.1Conclusions:
1. Does low cost fare a factor impacting Air Asia towards its customer satisfaction?
It is obvious based on the following sequence of collected data which has revealed a strong relation through Pearson correlation showing that Low cost fare meaning Air Asia pricing correlate with customers’ needs and wants resulting in impacting their customer satisfaction in a positive way, evidence shown on price performance as 86.6% of the respondents agree that Air Asia perform well on price.
To briefly highlight that price factor precisely low cost fare is crucial for Air Asia to assess profitability and competitiveness in the market of low cost carrier.
- To what extent the service provided on-board impact on Air Asia towards customer satisfaction?
Customers are usually bind with Air Asia relying on their service in general but mostly interacting with flight attendant and facilities since it is set for travelling, from that angle participant at 90% approve on-board facilities service from Air Asia is in accordance to their desire meaning they have agreed to importance of service facilities provided on-board.
The relationship binding service to customer satisfaction is commonly linked since it contribute at the highest in satisfaction of customers.
- How does information technology influence to Air Asia customer satisfaction?
The output that have been generated from the main analysis set information technology to largely have influence on Air Asia customer satisfaction through the number of respondents which among 150 participants, 96.6% develop strong interest in Air Asia information system platform in supporting their interaction with representatives of the organization online or web based platforms.
Having state that, it can be broadly affirm from the study based on statistics that, information technology at Air Asia is an impact to the satisfaction of their customers.
- Does quality an influence of customer satisfaction to Air Asia service strategy?
Emphasizing on quality relying to the extracted data upon the released survey lead to get an outlook from participants responses as to set that majority of the respondents have agreed to 88.7% to be in conformity with quality of service provided due to standard product and services they opt to share with customers leading in high customer satisfaction.
This attribute is actually influencing customer satisfaction of Air Asia.
- How advertisement is an impact to Air Asia service strategy towards customer satisfaction?
The balance of this company is mainly based at its capability to endorse almost all its department to advertisement where it attracts more existing and potential customers as shown in participants’ responses where 84.7% find their advertisement engaging into delivering expected value to their standing audience. From that angle, advertisement has connexion with the company’s service strategy resulting in loyalty to end up in customer satisfaction.
It can state from there that a steady relationship is binding satisfaction of customers to Air Asia advertising meaning promotions they offer, free seats, holiday package and so on…
5.2 Recommendations:
5.2.1 Control modern technology.
Getting to interact with customers is a common aspect in any organization as to have an outlook of their perspective or mind-set towards the company, in fact, Air Asia diverse platform leads to more enhancement of their desired targeted in occupying the market considering the advance technology
such as (IoT) meaning internet of things being applied and helping in making the company fleet as to cut down cost.
In the different angle they need to accommodate and adapt to the new trend as set path in attempting customer satisfaction meaning open up more platform to bind customer even if social media is still active.
5.2.2 Intensive care of customer relationship management.
As customers being taken to be the leaders in providing profit to the organization the company need to set a steady and competent data base to deal with customers through their details as to keep them alert on any programs patterning to the good functioning as well as improvement of the diverse consent in terms sending feedback and paying attention to their existence so that the potential customers will easily adapt to the system.
In tandem to develop well designed platform for an ease to use and less consumption to the customer in having a developed view of consistent acceptance from outlook of customer relationship management.
5.2.3 Develop more publicity relying to on-board.
Developing awareness is among the main ways to create strong perception of the company brand as to gather from customer this sensation of recalling the brand whenever they see it. Doing so, Air Asia will benefit from it as to augment its total revenue as well to helping Air Asia in having a chance of penetrating diverse market using its capability of promoting products and services provided on-board even if as a no-frills.
The on-board publicity mainly is concerning the customers and staffs while the aircraft has already taken off which stratagem could be included in such as TV, e-mail notification, or public panels.
5.2.4 The utilization of biofuels
As seen the climate change and environment pollution that happening in today’s era, countries like Europeans (France, Canada, U.S, Germany…) are already using or predict to utilize biofuels. Consecutively, to Asia nations of Indonesia as well to Thailand setting procedures to move on aeronautics biofuels. In fact, Air Asia has been suggested to be part of the system, the group of environmental aeronautic fuel users founded in 2008.
This will help Air Asia in terms of ethical consideration to the public as to result in good image throughout making their business efficient and effective.
5.2.5 Encourage reliability to delivered services.
Service is a factor that count in any way to the company’s improvement and development in terms of growth. Services offered by Air Asia are mostly efficient and effective to the extent that most customers are interested in the no-frills part which restricted customers’ option. In fact, they may incorporate more diversity as to provide a strategy FIT to boost the potential function of improving more casualty in delivering valuable product and service.
good article simple to learn and easy to remember thank you for writing such an article.