Consumer Behaviour in the Airline Industry

Table of contents

Table of  contents  i

  List of Figures  ii

1  Question one  1

2  Question two  3

3  Question three  8

  References  11

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  List of Figures  

  Figure number Name of Figure Page  

  Figure 1 Consumer behaviour  3

  Figure 2 An overview of the motivation process  4

  Figure 3 Standard Learning Hierarchy  6

  Figure 4 A five-stage customer purchase process  7

  Figure 5 An overview of the perceptual process  8

  Figure 6 The Disconfirmation Paradigm  9

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1 Question one

How has Aer Lingus attempted to put its customers at the forefront of its business development?

Air Lingus has anxiously attempted to become even more customer-focused since 1996, when the company realised its new strategy to “put people first in its marketing programmes” (Aer Lingus Case Study, 2005).

In this context, it is worthwhile to consider why a ‘customer-focus’ strategy is at the heart of Aer Lingus’ programme? According to Vandermerwe (2004), customer focus is the key for to expand its business operations and to compete successfully on the market. Several researchers could show that a company is more successful when they embrace a customer-orientated strategy (Narver, et al., 2000; Slater and Narver 2000). Furthermore, the CEO of MarketAbility Allen (2005) states that the “focus on the customer can deliver far more value than an interminable focus on cost, efficiency and production”, as the customer drives the demand . ‘Customer-focus’ or ‘customer-orientation is defined as “the set of beliefs that puts the customer's interest first, while not excluding those of all other stakeholders ...in order to develop a longterm profitable [viable] enterprise” ( Deshpandé et al., 1993). An example of a successful implementation of customer-orientation is the case of Continental Airline. Due to Gulati (1992), the airline lost million of dollars because of a ‘service mess’. Then, the company began collect, consolidate and analyse customer information in order to understand their customer’s needs. Finally, they could turn again into a profitable company.

Aer Lingus competes in the transatlantic long-haul sector, within the European Union, in the UK market and domestically within Ireland. With the arrival of the low-cost airlines, Aer Lingus decided to compete in the full service segment, focusing on the premium business class. As the company believes that the ability to satisfy its target customers presents one of their most competitive advantages, the company wants to put the customer at the forefront of its business such as in the case of the Continental Airline. To realise this aim, the company must increase its already strong emphasis on quality and service. One essential role to increase the service quality is their personnel, especially recruitment, attitudes, training, abilities, and motivation.

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On the other hand, the environment such as the terminal, the aircraft, and the booking point are important factors.

With these issues in mind, Aer Lingus developed its new marketing ‘programme for a better airline’ with the customer in the centre of the business. They analysed the market in order to adapt their current positioning to their target segment. Furthermore, the company holds on-going contact with their customers in form of customer feedback and group discussions. With 50 passengers and 50 staff from various functions, Aer Lingus m anaged to identify the needs and wants of their customers. This customer-oriented market research supported the company strongly to modify its marketing mix to their customers’ needs. Aer Lingus’ marketing managers are continuously informed about the expectations of the customers through on-going qualitative research.

The marketing programme focuses on their customer’s key concerns, which could be structured and prioritised as follow:

1. Punctuality

2. Queuing

3. In-flight experience

4. Baggage delivery

5. Airport facilities

After identifying the customer needs, Aer Lingus focused on these issues in their programme to put the customer’s wishes at the forefront. The consequences were that t hey became the most punctual airline compared to its competitors. They reduced the queuing times though check-in facilities and fast-track security channels, new baggage delivery systems and airport lounges. More service personnel were deployed with increased emphasis on their key strengths: friendliness and helpfulness. Through the realisation of a customer-oriented business and enhancing customer value, Aer Lingus could successfully compete against their competitors and become a profitable airline.

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