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This paper reports an empirical study into airline consumer purchase behaviour on a major global route, that between the United Kingdom and Taipei. It focuses on the factors influencing airline choice for a sample of 60 Taiwanese students based at UK Universities and travelling on five airlines: British Airways, Cathay Pacific Airways, China Airlines, EVA Airways and Royal Dutch Airways.
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service marketing in airline industry and its influence on student
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1
Evaluating Service Marketing in Airline Industry and its
Influence on Student Passengers’ Purchasing
Behaviour-using Taipei-London Route as an example
(Published by the J ournal of Travel and Tourism
Marketing Vol.25, No.1 pp.149-160)
Annie Huiling Chen
1
, Dr. Norman Peng
2
, and Dr. Chris Hackley
3
Abstract
This paper reports an empirical study into airline consumer purchase behaviour on a
major global route, that between the United Kingdom and Taipei. It focuses on the factors
influencing airline choice for a sample of 60 Taiwanese students based at UK Universities and
travelling on five airlines: British Airways, Cathay Pacific Airways, China Airlines, EVA
Airways and Royal Dutch Airways. Several stages of data-gathering were undertaken and a
well-established analytical framework for services marketing was used to identify gaps
between the desired and received service. The main findings suggest that service quality,
including in-flight entertainment, cabin crew attitude and seating comfort, can be as important
as, or more important than, price in student purchase decisions for long-haul flights. Other
important factors in carrier choice included student discounts, baggage allowances and airline
safety record.
Key Words: Service Marketing, Airline Industry, Consumer Behaviour, Taiwan,
Tourism
1
First author: Chen Hui-ling, MBA at Royal Holloway, University of London. Contacting
email: [email protected]
2
Second and corresponding author: Dr. Norman Peng, PhD in Management, Royal Holloway,
University of London. Contacting email: [email protected]
3
Third author: Dr. Chris Hackley, Professor of Marketing in the Department of
Management at Royal Holloway, University of London. Contacting
email: [email protected]
2
Introduction
“Competition [between airlines] has increased… Service is becoming more important
is this competition. (Morrison and Winston, 1995)
The airline industry has evolved rapidly in recent decades. It was a luxurious form of
travel in the early of the last century but has become one of the most common methods of
travel today. By 2003, there were 590 air million travellers in Europe alone (Eurostat News,
2005). Globally, world passenger traffic (measured in passenger-kilometres performed by
scheduled airlines of ICAO contracting states) was estimated to have increased by a factor of
3 from 1,367 billion to 3,807 billion between 1985 and 2005 (Hanlon, 1999, p.14). There was
a phase when most airlines were state-owned, followed by a period of oligopoly, before we
entered a stage when competition is as intense as any other commodity goods (Shaw, 1999).
Partly because of these changes, the service quality and marketing of the airline industry also
changed rapidly. In the early days, airlines placed a heavy emphasis on service quality
because it was a luxurious leisure pursuit. Then, it became a secondary focus when it entered
the oligopoly stage. During this stage, price and price wars were the primary concern of the
travellers and the airline companies. This tide shifted again during the 1990s, as some airlines
started to reemphasise and improve their service to attract travellers (Zeithaml and Bitner,
1996). However, the focus of existing studies is on the industry rather than the traveller.
The purpose and contribution of this research is to capture the essence of contemporary
airline service marketing through 60 overseas student passengers and their evaluation of five
world-classed airlines’ performance on the Taipei-London route. There are existing studies on
airline service performance and studies on travelling behaviour. The originality of the present
study lies in its attempt to combine the two through a qualitative interpretive approach.
Despite the limitations, the findings reconfirm some existing literature on the issue, such
as the importance of safety, but also produce some new suggestions about how airlines can
improve customer satisfaction through understanding what passengers in the large and
important student passenger market regard as a quality flying experience. In addition, the
findings of this research can also bring new thoughts to other travel, tourism and hotel
industries because the focus of this research is on marketing and service instead of aviation.
3
Literature review
Previous Studies in Airline Service Quality and Related Issues
The literature that helped to develop this study is primarily about the airline industry, the
overseas student market of Taiwan, service marketing, consumer decision making, research
methods and philosophical frameworks. In this section, we will sample a couple of
representative studies from each category and point out the potential gap within the current
studies.
According to Williams (1994), the deregulation of the airline industry has influenced
several regions besides the US. Before deregulation, market structure and price were two
important features in competitive environment (Shaw, 1999; Doganis, 2001). Gaps between
provided service and the perceived service were also noted (Gourdin and Kloppenborg, 1991)
although some of these have been resolved post 9/11 by the development of electronic
ticketing and other innovations in response to environmental and safety issues. Proussaloglou
and Koppelman (1995) in Chen (2003) point out that there are three issues which can
influence the passenger’s decision in airline choice: the purpose of travel, the passenger’s
attributes and the airline’s incentives. One of the reasons why the present study used an Asia
Pacific-Europe route is due to its significance in today’s airline industry. Shaw (1999, p.127)
describes how ‘both Boeing and Airbus agreed that the crucial market for new large jets is
that from Asia/Pacific markets to Europe’. Airline companies have to be competitive in the
Asian market in order to be competitive worldwide. The student market travelling between
the UK and Taiwan is a significant segment of this larger market.
According to Kim et al. (2006), the studies on student travellers are primarily US based
and its history is between two to three decades, therefore, there are further opportunities that
can be explored. Since Taiwan (formally known as the Republic of China) entered the WTO
in 2002, the government called for the ‘Internationalisation of higher education’ as part of the
drive to enhance the competitiveness of Taiwan by empowering its citizens to seek new
knowledge overseas (Tsai, 2002). The numbers of Taiwanese overseas students reached
33,000 in 2005and the UK is the second most popular destination after the United States. This
number reached 9,248 in 2005, a figure which has doubled over ten years according to the
Taiwan Ministry of Education. This means that the UK is becoming more attractive since the
number of students in the US remained relatively constant during the same timeframe. Some
airlines have become aware of this potential market, while others have not.
4
Airline service marketing and consumer decision making
Airline service marketing throws up some issues specific to the industry. Parasuraman,
Zeithaml and Berry (1993) describe how an expectation of service in general can be divided
into desired service and adequate service. Adequate service means the actual service that the
customer received, while the desired service is the quality of service for which the customer
wished. Palmer (1994) states that ‘pure’ services have characteristics of intangibility,
inseparability, variability and perishability. Airline customers regard intangibles such as the
service encounter and cabin crew friendliness and service performance levels as important,
but they also place a high value on tangible aspects including food, seating and entertainment
programmes (Rust, Zahork and Keiningham, 1996). The extent to which different customer
segments place higher or lower values on different aspects of service depends to some extent
on nationality.
Chiang (2003, p.149) suggests that “Passengers select different airlines based on service
quality, travellers’ socioeconomic characteristics and the purpose of the trip”. Sultan and
Simpson (2000, p.188) agreed and elaborated further by writing: “Major airline industry
competitors, seeking to gain or expand market share globally or regionally, provide an
opportunity to explore the service expectations and perceptions of customers of different
nationalities”.
The above scholars highlight the need to consider the consumer’s background when
assessing service quality and airline’s performance during the service interaction (Natalisa
and Subroto, 2003). Shaw (1999, pp12-14) emphasises consumers’ personal characteristics
and separates them into roles in the decision making process, such as deciders, gatekeepers,
users, buyers and influencers. So consumer behaviour in airline choice is not entirely
individual, it may be influenced by other members of their group. In the generic model of
consumer behaviour there are five stages within the decision making process: problem
recognition, the search for alternative solutions, the evaluation of alternatives, purchase and
post-purchase use and the re-evaluation of the chosen alternative (Peter and Olson, 1999).
This model is useful since it allows this research to examine individual consumers’ mindsets
during different stages of consumption. Combining these two models of consumer behaviour
will allow this research to have a dynamic view of how and why Taiwanese student
passengers select airlines in the way they do.
Within the context of the airline industry, Kaynak and Kuchkemiroglu’s (1993) found
5
that the reliability of the airline, consumers’ their past experience with the airline, the price of
the tickets, service quality and safety are the five most important factors when selecting
airlines. Chen (2003) also identifies connection to the destination, price, emergency handling,
services and special discount for frequent flyers as important choice criteria in European flight
destinations.
This section reviewed a selection of the literature on the airline industry, the Taiwanese
overseas student market, service marketing and the consumer decision making process. With
this literature presented, the following section will focus on this research’s data collection
procedure and analytical approach.
Research method and analytical approach
In brief, this research adopted a qualitative, interpretive approach based on a
convenience sample of 60 Taiwanese students at UK universities. The interviews explored the
participant’s previous experiences as well as their attitude towards future consumption. The
core framework for this research was developed by Zenthaml and Bitner (1996). Customer
expectations are the standard reference points for performance against which service
experiences are compared, and are often formulated in terms of what a customer believed
should or will happen. In addition, the 7Ps of service marketing, the generic model of
consumer problem solving and the roles involved in consumer decision making were also
incorporated as guidance for this research.
Data gathering approaches
To reiterate, the objective of this study was primarily to identify the airline carriers’
service attributes that are important to Taiwanese students who are/were studying in the UK.
Given this, a qualitative approach was deemed most suitable, since its nature is to explore and
identify a phenomenon (Malhotra and Birks, 2003). In addition, the interpretive technique
was a useful analytical tool in this genre of qualitative studies. It is an approach that tries to
‘generate rich descriptions of everyday events and issues’ (Hackley, 2003, p.25). This
approach could improve the understanding of the participants’ decisions and their rationale
behind them.
60 overseas students who were regular users of the Taipei-UK airline route were
recruited during the first stage of the research and asked to fill in a questionnaire adapted from
on Kaynak and Kuchkemiroglu (1993) and Chen’s (2003) studies. The questionnaire was
used to identify the five most commonly used airlines when travelling to the UK. The most
6
popular was Cathay Pacific, followed by EVA Airways, British Airways, China Airlines and
Royal Dutch, in that order.
With the five most popular airlines identified and their specific service attributes
analysed, 40 participants were recruited from the original 60 Taiwanese students for the
second stage. In terms of the demographics and other information regarding these 40
interviewees, this research tried to balance its mix without setting a strict quota. Of the 40
interviewees, the average age was 27, gender balance was 15 males and 25 females, average
stay in the UK was 20 months, 37 were postgraduates and 3 undergraduates, and on average
each had flown this route 3.4 times. The potential influence of these characteristics will be
discussed separately.
The second wave of 40 respondents was subject to semi-structured in-depth interviews.
This is a popular method that can aid the data gathering and analysis (Fontana and Frey, 1994;
May, 1998), especially when designed to ‘reflect the interviewee’s view of world’ (Hackley,
2003, p.121). Furthermore, semi-structured interviews are a useful way to gain, sometimes
unexpected, feedback. They were suitable for this research because they allowed the
interviewer to have some control over the topic and direction, while not dictating the
discussion.
The interviews explored the preferred airline service attributes of respondents based on
their considerable flying experience. Finally, respondents were shown an organised
table-Airline Comparison Chart. This table showed five selected airlines’ products and service
information, which include duration, travel kit, transfer point, price and frequency of flying.
After letting the interviewees reflect on the given information, the researcher then asked ask
them whether they noticed these differences or not, what attributes are important to them and
whether they will consider changing their decision in their future purchases.
This structured approach was designed to provide a dynamic insight into the Taiwanese
students’ preferences when selecting an airline. With the literature and research method
presented, the following section will present the passengers’ experiences.
Findings: Student passengers preferred airline service attributes
The student passengers discussed several interesting topics throughout different stages of
the interviews. The following are the major emerging themes inferred y the researchers from
the data sets. During this section, partial transcripts will be presented to exemplify the points
being made.
7
The Unique Class (Elite Class) Offered by EVA Airways
A number of respondents refereed to a particular service offered by EVA Airways which
has a specially designed configuration. This airline offers four classes of service, a unique
differentiation among Taiwanese airlines (Shaw, 1999). The four classes are First, Business,
Evergreen Deluxe (Elite class for Boeing 777 only) and Economy class. According to EVA
airways, all EVA intercontinental services offer a unique class called the Evergreen Deluxe
Class cabins or Elite Class. It offers a very high quality service and many enhancements that
can only be found in other airlines' business class. For example, it has a large seat
configuration and individual video systems. This class received massive praise from the
passengers.
I always choose EVA because of its Elite class which was called Evergreen Deluxe in
Boeing 747. I can enjoy the better facilities which are like Business Class offered by
other airlines, but [at a] cheap price. (respondents AC)
However, not every participant who travelled with EVA bought an Elite Class ticket.
Amount the 13 participants who collectively flew with EVA 22 times, only five mentioned
they would always travel Elite Class. Others would travel in Elite Class after they accumulate
enough mileage and received a free upgrade or were given it as a gift by someone else. The
participants’ feedback agreed with Calder’s (2003) view that price is one of the most
important attributes that passengers consider. However, it is still possible to charge a premium
price through providing a better service mix. The impact of these favourable opinions and
how they can be transformed to a positioning strategy will be discussed later.
The Web Service
With the progression of the technology and the emergence of the hyper-competitive
environment, e-commerce and information systems play essential roles in the airline industry
as well (Shaw, 1999). Web service is a key part of information systems. The companies
applied these systems to enhance their competitiveness, such as improving product quality
and customer services. In the airline industry, many airlines use internet services to attract
more customers by making the transaction more customer-friendly. Laudon and Laudon
(2002) point out that information systems are not only essential for management, but that
most organisations also need it to prosper or even survive in today’s competitive environment.
In this research, passengers agreed that they will take an airline’s web service into account
8
while shopping for and selecting airlines:
The convenient web service is the most important issue to me. I always choose Cathay
Pacific Airways because of their online booking and checking-in service. I don’t have
to arrive at the airport two hours early to queue in front of the counter. It is quite time
saving and convenient for me. (Respondents AF)
According to other participants, Cathay Pacific Airway’s convenient web service, on
some level, contributed to the user’s favourable attitude. On the other hand, the web service’s
influence should not be overstated. Even though nearly all of the participants used the internet
to search for alternatives, only a handful bought his/her ticket without the assistance of a
travel agency. Chaffey et al (2003) proposed that a good internet service is not only a good
source of marketing but also of relationship building which is essential in today’s deregulated
airline industry. With the high development of internet technology and communication
facilities, the web service is becoming a necessity for airlines. At the same time, student
passengers and other consumers who are already familiar with this instrument will expect the
airlines to provide this service at some level.
In-flight Service
The unique class and web services certainly are important, but the in-flight service is the
fundamental aspect that will be evaluated by the student passengers. They pointed out three
main criteria: the flight attendant’s service attitude, the food and the environment.
Flight attendant’s service quality
Because of the booming service industry in recent years, corporations have started to
provide additional and sometimes less noticeable services that were not available before
(Berry and Parasuraman, 1991). In addition, the emphasis on marketing started to shift from
the product itself to the overall impression that it gives to consumers (Parasuraman, Zeithaml,
& Berry, 1985; Li, 2003). The following quote is one participant’s view:
I choose Cathay Pacific Airways because of their good service. The flight attendants
are all kind and polite. Even if I push the call button several times requiring water
because I felt sick. They were still very patient. (Respondents AN)
From the passengers’ perspective, they cared very much about the service they received
9
from the cabin attendants. Perhaps more importantly, sometimes it is not only the formality of
the service, but whether the flight attendants were sensitive, caring and patient. Berry and
Parasuraman (1991) assert that both service quality and customer satisfaction are positively
correlated. Therefore, the quality of the flight attendants is crucial for airlines since they are
the people who will have direct contact with the passengers.
Quality of food
In Chinese and perhaps some other Asian-Pacific cultures, dining has other social
meanings apart from basic physical needs (Deng, 1997 in Li, 2002). In the Chinese saying,
dining, clothing, living and travelling are four vital parts in people’s lives. Hence, the quality
of the food served during the flight can also be a unique selling proposition. A couple of
respondents described their experience of the in-flight meals service and how much they cared
about the food quality.
In my experience, many airlines do not care about the quality of the in-flight meals.
However, Cathay Pacific Airways’ in-flight meals are provided by Hyatt Hotel. Even
though I am sitting in Economy Class, I still can enjoy high quality food from a five
star hotel on the airplane. (Respondents AN)
Based on general observations during the interviews, although passengers cared about
the quality of food, it was not the single most important issue. On the other hand, there are
some who care about this a lot, based on the examination of their texts. If airlines intend to
attract more Taiwanese or Chinese international students, these companies have to pay more
attention to the quality and style of the in-flight food service, because it could affect
customers’ satisfaction and re-purchasing intention.
Environment: the type of aircraft, seating comfort, and entertainment system
The Skytrax magazine (2006) describes how the in-flight environment is an essential
issue for long-haul flight passengers. The environment of the aircraft involves the comfort of
the seats and the entertainment system. A number of participants gave a rather detailed
description of the features of the cabin and the following comment was made by one
participant:
10
I had used EVA AIR a few years ago when they used Boeing-747s, but that flight was
awful because they didn’t have a personal TV service. I can only choose a few music
programmes during the flight. I haven’t used EVA since then. However, since EVA uses
Boeing-777s to fly from Taipei to London. I decided to try again. I find that the new
type aircraft is good. They offer a 3-3-3 seat arrangement, so the space of the seats is
wider. I also have a personalised movie channel, a music programme as well as video
games. (Respondents BD)
According to these international students’ views, they are concerned about and
well-aware of the in-flight environment that the airlines offered. If the price is similar, they
would choose the airline that can make them more comfortable, depending on their travel
needs. During this research, food and seat comfort ranked the highest, while entertainment
systems and service quality were rated slightly lower.
This once again suggested that price is not the only indicator for passengers but can be
affected by multiple issues; therefore, airlines should make efforts to improve their offer since
this is an effective way of building long-term relationships (Reichheld and Sasser, 1990).
Special Offers and Loyalty Programmes Targeted at Students
Kotler et al (2005, p.393) specify that segmentation is about adapting a company’s
offerings so that they more closely match the needs of one or more market segments. The
respondents mentioned a couple of offers that can attract their attention:
Being a student, I would like to choose the airlines which offer special discounts on
student tickets. Some airlines offer very good prices to students. Otherwise, I also
would consider the baggage allowance, because I may have to carry some necessary
things from my home country. That is why I choose Royal Dutch Airlines because it
offers a 30 kg baggage allowance which is also the best deal for students.
(Respondents BG)
Due to the special needs of the students, they would like to choose the airlines which
provide a tailor-made service for them. Student-fares and a baggage allowance are the two
aspects that mostly concern student travellers. This information will allow airlines to form
their targeting strategy if they wish to tag onto the student market.
Apart from the tailored offer, some other loyalty programmes can also offer additional
incentives. Rust, Zahork and Keiningham (1996) explain that defensive marketing could help
11
companies to maintain a long-term relationship with their customers, which is generally more
cost-effective than pursuing new customers.
I always choose Cathay Pacific Airways or British Airways to London. The reason is
that I can earn more miles based on the benefits of the Asian Mile system. No matter
which I choose, I can accumlate the mileage and enjoy the upgrade service. This is an
important issue to me because I also can have other benefits while booking a hotel or
shopping using this Asian Mile system. Even when I want to travel to another country,
if I choose the airline within this system, I still can accumulate the miles I fly. It’s quite
good. (Respondents AF)
From the passengers’ point of view, they think that earning benefits by taking flights is
attractive. They enjoy the services and benefits, such as upgrades, discounts and shopping, as
long as they fly with airlines within this Asian Mile system. British Airways and Cathay
Pacific Airways are also members of the oneworld alliance, and passengers who join the
AsianMile programme also can have the benefits of the oneworld members’ airlines. One
observation made during the interviews was that loyalty programmes only attract those who
travel most frequently. For less regular travellers, an immediate discount is sufficient. Airlines
must consider their objectives and their consumer profile before deciding on which strategy to
implement.
Good Connection to the Destination: the Number of Transfer Points
Long-haul flights can be a tiring experience regardless of the quality of the service;
therefore, many passengers like to choose airlines that can take them to their destination fast
(Shaw, 1999, p.124). At the moment, it is difficult drastically to decrease the flight duration
due to technological reasons; however, too many transfer points and regular delays will be a
disadvantage.
I will pick the flight which will let me arrive at my destination the quickest. I
remember I have taken Royal Brunei Airlines once, because of a cheap ticket, however,
it took me over 24 hours. I had to transfer four times to London. I almost went crazy
during the trip. Since then, I do not like to spend too much time on a flight which has
too many transfer points even if the ticket is cheap. (Respondents AJ)
Long-haul flights certainly are not an experience they enjoyed, especially those who
travelled often. Nearly all of those who travelled often tried to share a story about their
12
painful encounters with delays and flight cancellations. So a long-haul flight is a negative
purchase, like a new car tyre- consumers would not but if they didn’t have to. Consequently,
airlines and passengers have to come up with solutions that are acceptable to both sides.
Safety
Although it may sound obvious, passengers can accept a reasonable trade-off between
airlines’ offers, but safety is the most important feature that cannot be compromised:
Safety is the most important issue for me when selecting airlines, because life is
precious. If I knew that China Airlines have had so many accidents in ten years, I
would not ever take China Airlines! When I saw the number of fatalities, it frightened
me seriously. I could not believe that I choose China Airlines just because of the cheap
tickets. I think other services are not important compared to life. Nothing is more
important than life itself. (Respondents AH)
Through the passengers’ views, even though they think that good service is a necessity in
their experience, nevertheless, the safety record is still a priority without dispute, and this can
have a crucial impact on the passengers’ decision-making process (Morrison and Winston,
1995).
From the above, it appears that safety is a priority as well as a bottom line that an airline
has to provide. It is not only important to student travellers but most other travellers as well.
Since 911, airlines are facing additional and sometimes very difficult challenges from within
the industry and the macro-environment. All of the above topics are individual offers
provided by airlines, but the last topic of the analysis section will look at the sum of these
parts - brand image and reputation.
Brand Image and Reputation
Kotler et al (2005, p549) assert that brand includes a wide range of offers and that ‘brand
names tell the buyer something about product quality. Buyers who always buy the same brand
know that they will get the same quality each time they buy’. In other words, all the different
offer criteria discussed above could be summarised through brands and the meanings
associated with brands. In the interviews, several respondents stated that they would buy
tickets from certain airlines due to the recommendations of their friends. On the other hand,
the importance of recommendation and word of mouth in travel and tourism industry although
is confirmed in some studies, but it is not without debate. Some of the interviewees would
13
actively advocate the airline with which they flew. For example, five respondents said that,
when they saw or heard about EVA airways, they would think that it is the safest airline,
while other respondents stated that Cathay Pacific Airways would remind them of the good
service quality.
Cathay Pacific Airways always gives me a good impression because of their
reputation. The majority of my friends also choose Cathay to travel. They told me that
they choose Cathay Pacific Airways because that they saw some reports about the
good service and safety provided by Cathay Pacific. I also agree with them due to the
enjoyable flying experiences with Cathay. (Respondents AO)
Moreover, the fact that all of participants can remember which airline they travelled with
last time and could name their favourite airline reconfirmed the importance of brand and
branding to consumers as well as airline companies.
Summary of Main Findings
To summarize, the major themes which emerged as key to customer airline choice in this
study were as follows. 1) having a fourth class with added benefits was perceived positively 2)
an efficient and user-friendly web interface allowing ticket purchase was an important
pre-requisite for many consumers 3) in-flight service quality was highly important,
particularly the attitude and professionalism of cabin crew, the quality of food and the
in-flight entertainment 4) special offers and loyalty programmes targeted at particular market
segments were viewed very favourably 5) convenience in terms of proximity to end
destination and transport links from the airport were also important 6) respondents were very
aware of each airline’s safety record and regarded it as a key factor 7) overall, respondents
seemed to be very aware of brand reputation as a symbol of all these themes collectively.
Managerial Implications
In this section, the existing literature will be combined with some of the above findings
to suggest how airline companies can improve their competitiveness in the short-, medium-
and long-term. This research realises that there are many alternatives but here only presents
those that were routinely pointed out by the participants.
Short-term improvement: the in-flight service
The first important lesson from this research relates to the kind of in-flight service that
14
the airline provided. These are the areas where airlines can improve within a relatively short
period of time. The first issue that concerns the respondents is the flight attendants’ service.
Some respondents worried about their language skills and chose EVA Airways, China
Airlines and Cathay Pacific Airways, which have Chinese-speaking cabin crews. Another
issue relates to the choice of food. Although other factors should not be undermined, however,
airlines can add value to their services if they can appreciate their passengers’ dining habits.
This effort will be positively acknowledged by the passengers. The third factor concerning the
interviewees is the in-flight entertainment programme. They care about that whether airlines
can offer up-to-date and the newest movies, music as well as video games because long-haul
journeys are long and tiresome, Additionally, the majority of the student participants are
members of generation X (1965-1979), who are curious, adventurous, enjoy challenges and
like to pursue fashionable things (Li, 2003).
Medium-term: the Inspirations from EVA Airway’s Elite Class
During this research, the respondents’ favourable attitude towards EVA’s Elite Class
confirmed the study by J ohnson and Nunes (2002). They propose that there is a gap between
the upper and the middle-class that was not recognised by the corporations.
The background of the students can be used to explain their purchase decisions and
travelling preferences. These participants mainly are funded by their slightly above
middle-class families at some level. They find business class too expensive and unnecessary,
but also find economy class unattractive. Currently, only EVA has pioneered this type of
in-between class and it seems quite successful in terms of capturing this marketing segment.
Apart from EVA, only Virgin Atlantic Airways has a Premium Economy Class which is
similar to EVA’s Elite Class, but it is only offered on a limited scale. On the other hand,
having an extra class will require a wide range of activities, such as new seating arrangements,
service, marketing and financial obligations.
Long-term: Airlines’ Safety and Branding Image
As mentioned in the previous chapter, safety cannot be replaced by any amount of
service (Shaw, 1999). Therefore, it is essential for airline companies to be safe and have an
image of being safe. Because airline’s actual safety is more of an aviation safety subject,
hence, this section will explore two suggestions about how airlines can use a service
marketing strategy to acquire an image of being safe. As demonstrated by some of the
participants in this research, they do have an existing belief about which airline is safer.
15
According to weak theory (Ehrenberg et al, 2002), airlines should not expect to alter the
travellers’ existing beliefs within a short period of time.
Airlines with a superior safety record, like EVA Airways and Cathay Pacific Airways,
could stress their records in their promotional kits as a reinforcement and reminder to
travellers. For airlines with inferior safety records, like China Airlines, one suggestion to
improve their image is through public relations and endorsements by aviation specialists,
especially through the channels of newspapers and specialised travel magazines. These
channels can be perceived as credible due to their nature (Hackley, 2005). In Hsieh and
Chang’s (2005) study on the Taiwanese travellers, it confirms that advertising through
endorsement can be an effective approach in hotel and hospitality industry. This research
proposes it should also be effective when applied to airlines due to their nature are similar in
many areas.
However, in another travel and tourism marketing study by Boo and Busser (2005), it
demonstrated the essentialness of considering the affective image as well as its cognitive
image. In other word, travel and tourism industry can not treat the consumers as naïve.
Concluding comments: limitations of this study and future research opportunities
This study, based on a representative and convenient sample of airline travellers and
focussed on a single route, has limited generalizability. Nevertheless, it does generate insights
which carry immediate implications for competitive strategy in the airline market. There are
limitations as regards the data gathering and analytical method. Due to the number of
respondents, it is difficult to establish a correlation between service attributes and behaviour.
Furthermore, interview respondents’ accounts of their behaviour are not always accurate. For
example, one respondent initially claimed that she had bought an economy class ticket but
later admitted that she flew business class because she did not want to be viewed as
showing-off or different, despite the interviews being conducted individually and privately.
However, in general, responses based on individual interviews tend to carry a high degree of
integrity, especially when responses are probed in depth interviews lasting a considerable
time period. The study could be extended and its findings deepened by adopting the same
methodological approach to other typical students routes, and also by extending the study to
other, non-student consumer segments.
16
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doc_648665758.pdf
This paper reports an empirical study into airline consumer purchase behaviour on a major global route, that between the United Kingdom and Taipei. It focuses on the factors influencing airline choice for a sample of 60 Taiwanese students based at UK Universities and travelling on five airlines: British Airways, Cathay Pacific Airways, China Airlines, EVA Airways and Royal Dutch Airways.
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Chen, Huiling and Peng, Norman and Hackley, Chris (!!"# $valuating
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1
Evaluating Service Marketing in Airline Industry and its
Influence on Student Passengers’ Purchasing
Behaviour-using Taipei-London Route as an example
(Published by the J ournal of Travel and Tourism
Marketing Vol.25, No.1 pp.149-160)
Annie Huiling Chen
1
, Dr. Norman Peng
2
, and Dr. Chris Hackley
3
Abstract
This paper reports an empirical study into airline consumer purchase behaviour on a
major global route, that between the United Kingdom and Taipei. It focuses on the factors
influencing airline choice for a sample of 60 Taiwanese students based at UK Universities and
travelling on five airlines: British Airways, Cathay Pacific Airways, China Airlines, EVA
Airways and Royal Dutch Airways. Several stages of data-gathering were undertaken and a
well-established analytical framework for services marketing was used to identify gaps
between the desired and received service. The main findings suggest that service quality,
including in-flight entertainment, cabin crew attitude and seating comfort, can be as important
as, or more important than, price in student purchase decisions for long-haul flights. Other
important factors in carrier choice included student discounts, baggage allowances and airline
safety record.
Key Words: Service Marketing, Airline Industry, Consumer Behaviour, Taiwan,
Tourism
1
First author: Chen Hui-ling, MBA at Royal Holloway, University of London. Contacting
email: [email protected]
2
Second and corresponding author: Dr. Norman Peng, PhD in Management, Royal Holloway,
University of London. Contacting email: [email protected]
3
Third author: Dr. Chris Hackley, Professor of Marketing in the Department of
Management at Royal Holloway, University of London. Contacting
email: [email protected]
2
Introduction
“Competition [between airlines] has increased… Service is becoming more important
is this competition. (Morrison and Winston, 1995)
The airline industry has evolved rapidly in recent decades. It was a luxurious form of
travel in the early of the last century but has become one of the most common methods of
travel today. By 2003, there were 590 air million travellers in Europe alone (Eurostat News,
2005). Globally, world passenger traffic (measured in passenger-kilometres performed by
scheduled airlines of ICAO contracting states) was estimated to have increased by a factor of
3 from 1,367 billion to 3,807 billion between 1985 and 2005 (Hanlon, 1999, p.14). There was
a phase when most airlines were state-owned, followed by a period of oligopoly, before we
entered a stage when competition is as intense as any other commodity goods (Shaw, 1999).
Partly because of these changes, the service quality and marketing of the airline industry also
changed rapidly. In the early days, airlines placed a heavy emphasis on service quality
because it was a luxurious leisure pursuit. Then, it became a secondary focus when it entered
the oligopoly stage. During this stage, price and price wars were the primary concern of the
travellers and the airline companies. This tide shifted again during the 1990s, as some airlines
started to reemphasise and improve their service to attract travellers (Zeithaml and Bitner,
1996). However, the focus of existing studies is on the industry rather than the traveller.
The purpose and contribution of this research is to capture the essence of contemporary
airline service marketing through 60 overseas student passengers and their evaluation of five
world-classed airlines’ performance on the Taipei-London route. There are existing studies on
airline service performance and studies on travelling behaviour. The originality of the present
study lies in its attempt to combine the two through a qualitative interpretive approach.
Despite the limitations, the findings reconfirm some existing literature on the issue, such
as the importance of safety, but also produce some new suggestions about how airlines can
improve customer satisfaction through understanding what passengers in the large and
important student passenger market regard as a quality flying experience. In addition, the
findings of this research can also bring new thoughts to other travel, tourism and hotel
industries because the focus of this research is on marketing and service instead of aviation.
3
Literature review
Previous Studies in Airline Service Quality and Related Issues
The literature that helped to develop this study is primarily about the airline industry, the
overseas student market of Taiwan, service marketing, consumer decision making, research
methods and philosophical frameworks. In this section, we will sample a couple of
representative studies from each category and point out the potential gap within the current
studies.
According to Williams (1994), the deregulation of the airline industry has influenced
several regions besides the US. Before deregulation, market structure and price were two
important features in competitive environment (Shaw, 1999; Doganis, 2001). Gaps between
provided service and the perceived service were also noted (Gourdin and Kloppenborg, 1991)
although some of these have been resolved post 9/11 by the development of electronic
ticketing and other innovations in response to environmental and safety issues. Proussaloglou
and Koppelman (1995) in Chen (2003) point out that there are three issues which can
influence the passenger’s decision in airline choice: the purpose of travel, the passenger’s
attributes and the airline’s incentives. One of the reasons why the present study used an Asia
Pacific-Europe route is due to its significance in today’s airline industry. Shaw (1999, p.127)
describes how ‘both Boeing and Airbus agreed that the crucial market for new large jets is
that from Asia/Pacific markets to Europe’. Airline companies have to be competitive in the
Asian market in order to be competitive worldwide. The student market travelling between
the UK and Taiwan is a significant segment of this larger market.
According to Kim et al. (2006), the studies on student travellers are primarily US based
and its history is between two to three decades, therefore, there are further opportunities that
can be explored. Since Taiwan (formally known as the Republic of China) entered the WTO
in 2002, the government called for the ‘Internationalisation of higher education’ as part of the
drive to enhance the competitiveness of Taiwan by empowering its citizens to seek new
knowledge overseas (Tsai, 2002). The numbers of Taiwanese overseas students reached
33,000 in 2005and the UK is the second most popular destination after the United States. This
number reached 9,248 in 2005, a figure which has doubled over ten years according to the
Taiwan Ministry of Education. This means that the UK is becoming more attractive since the
number of students in the US remained relatively constant during the same timeframe. Some
airlines have become aware of this potential market, while others have not.
4
Airline service marketing and consumer decision making
Airline service marketing throws up some issues specific to the industry. Parasuraman,
Zeithaml and Berry (1993) describe how an expectation of service in general can be divided
into desired service and adequate service. Adequate service means the actual service that the
customer received, while the desired service is the quality of service for which the customer
wished. Palmer (1994) states that ‘pure’ services have characteristics of intangibility,
inseparability, variability and perishability. Airline customers regard intangibles such as the
service encounter and cabin crew friendliness and service performance levels as important,
but they also place a high value on tangible aspects including food, seating and entertainment
programmes (Rust, Zahork and Keiningham, 1996). The extent to which different customer
segments place higher or lower values on different aspects of service depends to some extent
on nationality.
Chiang (2003, p.149) suggests that “Passengers select different airlines based on service
quality, travellers’ socioeconomic characteristics and the purpose of the trip”. Sultan and
Simpson (2000, p.188) agreed and elaborated further by writing: “Major airline industry
competitors, seeking to gain or expand market share globally or regionally, provide an
opportunity to explore the service expectations and perceptions of customers of different
nationalities”.
The above scholars highlight the need to consider the consumer’s background when
assessing service quality and airline’s performance during the service interaction (Natalisa
and Subroto, 2003). Shaw (1999, pp12-14) emphasises consumers’ personal characteristics
and separates them into roles in the decision making process, such as deciders, gatekeepers,
users, buyers and influencers. So consumer behaviour in airline choice is not entirely
individual, it may be influenced by other members of their group. In the generic model of
consumer behaviour there are five stages within the decision making process: problem
recognition, the search for alternative solutions, the evaluation of alternatives, purchase and
post-purchase use and the re-evaluation of the chosen alternative (Peter and Olson, 1999).
This model is useful since it allows this research to examine individual consumers’ mindsets
during different stages of consumption. Combining these two models of consumer behaviour
will allow this research to have a dynamic view of how and why Taiwanese student
passengers select airlines in the way they do.
Within the context of the airline industry, Kaynak and Kuchkemiroglu’s (1993) found
5
that the reliability of the airline, consumers’ their past experience with the airline, the price of
the tickets, service quality and safety are the five most important factors when selecting
airlines. Chen (2003) also identifies connection to the destination, price, emergency handling,
services and special discount for frequent flyers as important choice criteria in European flight
destinations.
This section reviewed a selection of the literature on the airline industry, the Taiwanese
overseas student market, service marketing and the consumer decision making process. With
this literature presented, the following section will focus on this research’s data collection
procedure and analytical approach.
Research method and analytical approach
In brief, this research adopted a qualitative, interpretive approach based on a
convenience sample of 60 Taiwanese students at UK universities. The interviews explored the
participant’s previous experiences as well as their attitude towards future consumption. The
core framework for this research was developed by Zenthaml and Bitner (1996). Customer
expectations are the standard reference points for performance against which service
experiences are compared, and are often formulated in terms of what a customer believed
should or will happen. In addition, the 7Ps of service marketing, the generic model of
consumer problem solving and the roles involved in consumer decision making were also
incorporated as guidance for this research.
Data gathering approaches
To reiterate, the objective of this study was primarily to identify the airline carriers’
service attributes that are important to Taiwanese students who are/were studying in the UK.
Given this, a qualitative approach was deemed most suitable, since its nature is to explore and
identify a phenomenon (Malhotra and Birks, 2003). In addition, the interpretive technique
was a useful analytical tool in this genre of qualitative studies. It is an approach that tries to
‘generate rich descriptions of everyday events and issues’ (Hackley, 2003, p.25). This
approach could improve the understanding of the participants’ decisions and their rationale
behind them.
60 overseas students who were regular users of the Taipei-UK airline route were
recruited during the first stage of the research and asked to fill in a questionnaire adapted from
on Kaynak and Kuchkemiroglu (1993) and Chen’s (2003) studies. The questionnaire was
used to identify the five most commonly used airlines when travelling to the UK. The most
6
popular was Cathay Pacific, followed by EVA Airways, British Airways, China Airlines and
Royal Dutch, in that order.
With the five most popular airlines identified and their specific service attributes
analysed, 40 participants were recruited from the original 60 Taiwanese students for the
second stage. In terms of the demographics and other information regarding these 40
interviewees, this research tried to balance its mix without setting a strict quota. Of the 40
interviewees, the average age was 27, gender balance was 15 males and 25 females, average
stay in the UK was 20 months, 37 were postgraduates and 3 undergraduates, and on average
each had flown this route 3.4 times. The potential influence of these characteristics will be
discussed separately.
The second wave of 40 respondents was subject to semi-structured in-depth interviews.
This is a popular method that can aid the data gathering and analysis (Fontana and Frey, 1994;
May, 1998), especially when designed to ‘reflect the interviewee’s view of world’ (Hackley,
2003, p.121). Furthermore, semi-structured interviews are a useful way to gain, sometimes
unexpected, feedback. They were suitable for this research because they allowed the
interviewer to have some control over the topic and direction, while not dictating the
discussion.
The interviews explored the preferred airline service attributes of respondents based on
their considerable flying experience. Finally, respondents were shown an organised
table-Airline Comparison Chart. This table showed five selected airlines’ products and service
information, which include duration, travel kit, transfer point, price and frequency of flying.
After letting the interviewees reflect on the given information, the researcher then asked ask
them whether they noticed these differences or not, what attributes are important to them and
whether they will consider changing their decision in their future purchases.
This structured approach was designed to provide a dynamic insight into the Taiwanese
students’ preferences when selecting an airline. With the literature and research method
presented, the following section will present the passengers’ experiences.
Findings: Student passengers preferred airline service attributes
The student passengers discussed several interesting topics throughout different stages of
the interviews. The following are the major emerging themes inferred y the researchers from
the data sets. During this section, partial transcripts will be presented to exemplify the points
being made.
7
The Unique Class (Elite Class) Offered by EVA Airways
A number of respondents refereed to a particular service offered by EVA Airways which
has a specially designed configuration. This airline offers four classes of service, a unique
differentiation among Taiwanese airlines (Shaw, 1999). The four classes are First, Business,
Evergreen Deluxe (Elite class for Boeing 777 only) and Economy class. According to EVA
airways, all EVA intercontinental services offer a unique class called the Evergreen Deluxe
Class cabins or Elite Class. It offers a very high quality service and many enhancements that
can only be found in other airlines' business class. For example, it has a large seat
configuration and individual video systems. This class received massive praise from the
passengers.
I always choose EVA because of its Elite class which was called Evergreen Deluxe in
Boeing 747. I can enjoy the better facilities which are like Business Class offered by
other airlines, but [at a] cheap price. (respondents AC)
However, not every participant who travelled with EVA bought an Elite Class ticket.
Amount the 13 participants who collectively flew with EVA 22 times, only five mentioned
they would always travel Elite Class. Others would travel in Elite Class after they accumulate
enough mileage and received a free upgrade or were given it as a gift by someone else. The
participants’ feedback agreed with Calder’s (2003) view that price is one of the most
important attributes that passengers consider. However, it is still possible to charge a premium
price through providing a better service mix. The impact of these favourable opinions and
how they can be transformed to a positioning strategy will be discussed later.
The Web Service
With the progression of the technology and the emergence of the hyper-competitive
environment, e-commerce and information systems play essential roles in the airline industry
as well (Shaw, 1999). Web service is a key part of information systems. The companies
applied these systems to enhance their competitiveness, such as improving product quality
and customer services. In the airline industry, many airlines use internet services to attract
more customers by making the transaction more customer-friendly. Laudon and Laudon
(2002) point out that information systems are not only essential for management, but that
most organisations also need it to prosper or even survive in today’s competitive environment.
In this research, passengers agreed that they will take an airline’s web service into account
8
while shopping for and selecting airlines:
The convenient web service is the most important issue to me. I always choose Cathay
Pacific Airways because of their online booking and checking-in service. I don’t have
to arrive at the airport two hours early to queue in front of the counter. It is quite time
saving and convenient for me. (Respondents AF)
According to other participants, Cathay Pacific Airway’s convenient web service, on
some level, contributed to the user’s favourable attitude. On the other hand, the web service’s
influence should not be overstated. Even though nearly all of the participants used the internet
to search for alternatives, only a handful bought his/her ticket without the assistance of a
travel agency. Chaffey et al (2003) proposed that a good internet service is not only a good
source of marketing but also of relationship building which is essential in today’s deregulated
airline industry. With the high development of internet technology and communication
facilities, the web service is becoming a necessity for airlines. At the same time, student
passengers and other consumers who are already familiar with this instrument will expect the
airlines to provide this service at some level.
In-flight Service
The unique class and web services certainly are important, but the in-flight service is the
fundamental aspect that will be evaluated by the student passengers. They pointed out three
main criteria: the flight attendant’s service attitude, the food and the environment.
Flight attendant’s service quality
Because of the booming service industry in recent years, corporations have started to
provide additional and sometimes less noticeable services that were not available before
(Berry and Parasuraman, 1991). In addition, the emphasis on marketing started to shift from
the product itself to the overall impression that it gives to consumers (Parasuraman, Zeithaml,
& Berry, 1985; Li, 2003). The following quote is one participant’s view:
I choose Cathay Pacific Airways because of their good service. The flight attendants
are all kind and polite. Even if I push the call button several times requiring water
because I felt sick. They were still very patient. (Respondents AN)
From the passengers’ perspective, they cared very much about the service they received
9
from the cabin attendants. Perhaps more importantly, sometimes it is not only the formality of
the service, but whether the flight attendants were sensitive, caring and patient. Berry and
Parasuraman (1991) assert that both service quality and customer satisfaction are positively
correlated. Therefore, the quality of the flight attendants is crucial for airlines since they are
the people who will have direct contact with the passengers.
Quality of food
In Chinese and perhaps some other Asian-Pacific cultures, dining has other social
meanings apart from basic physical needs (Deng, 1997 in Li, 2002). In the Chinese saying,
dining, clothing, living and travelling are four vital parts in people’s lives. Hence, the quality
of the food served during the flight can also be a unique selling proposition. A couple of
respondents described their experience of the in-flight meals service and how much they cared
about the food quality.
In my experience, many airlines do not care about the quality of the in-flight meals.
However, Cathay Pacific Airways’ in-flight meals are provided by Hyatt Hotel. Even
though I am sitting in Economy Class, I still can enjoy high quality food from a five
star hotel on the airplane. (Respondents AN)
Based on general observations during the interviews, although passengers cared about
the quality of food, it was not the single most important issue. On the other hand, there are
some who care about this a lot, based on the examination of their texts. If airlines intend to
attract more Taiwanese or Chinese international students, these companies have to pay more
attention to the quality and style of the in-flight food service, because it could affect
customers’ satisfaction and re-purchasing intention.
Environment: the type of aircraft, seating comfort, and entertainment system
The Skytrax magazine (2006) describes how the in-flight environment is an essential
issue for long-haul flight passengers. The environment of the aircraft involves the comfort of
the seats and the entertainment system. A number of participants gave a rather detailed
description of the features of the cabin and the following comment was made by one
participant:
10
I had used EVA AIR a few years ago when they used Boeing-747s, but that flight was
awful because they didn’t have a personal TV service. I can only choose a few music
programmes during the flight. I haven’t used EVA since then. However, since EVA uses
Boeing-777s to fly from Taipei to London. I decided to try again. I find that the new
type aircraft is good. They offer a 3-3-3 seat arrangement, so the space of the seats is
wider. I also have a personalised movie channel, a music programme as well as video
games. (Respondents BD)
According to these international students’ views, they are concerned about and
well-aware of the in-flight environment that the airlines offered. If the price is similar, they
would choose the airline that can make them more comfortable, depending on their travel
needs. During this research, food and seat comfort ranked the highest, while entertainment
systems and service quality were rated slightly lower.
This once again suggested that price is not the only indicator for passengers but can be
affected by multiple issues; therefore, airlines should make efforts to improve their offer since
this is an effective way of building long-term relationships (Reichheld and Sasser, 1990).
Special Offers and Loyalty Programmes Targeted at Students
Kotler et al (2005, p.393) specify that segmentation is about adapting a company’s
offerings so that they more closely match the needs of one or more market segments. The
respondents mentioned a couple of offers that can attract their attention:
Being a student, I would like to choose the airlines which offer special discounts on
student tickets. Some airlines offer very good prices to students. Otherwise, I also
would consider the baggage allowance, because I may have to carry some necessary
things from my home country. That is why I choose Royal Dutch Airlines because it
offers a 30 kg baggage allowance which is also the best deal for students.
(Respondents BG)
Due to the special needs of the students, they would like to choose the airlines which
provide a tailor-made service for them. Student-fares and a baggage allowance are the two
aspects that mostly concern student travellers. This information will allow airlines to form
their targeting strategy if they wish to tag onto the student market.
Apart from the tailored offer, some other loyalty programmes can also offer additional
incentives. Rust, Zahork and Keiningham (1996) explain that defensive marketing could help
11
companies to maintain a long-term relationship with their customers, which is generally more
cost-effective than pursuing new customers.
I always choose Cathay Pacific Airways or British Airways to London. The reason is
that I can earn more miles based on the benefits of the Asian Mile system. No matter
which I choose, I can accumlate the mileage and enjoy the upgrade service. This is an
important issue to me because I also can have other benefits while booking a hotel or
shopping using this Asian Mile system. Even when I want to travel to another country,
if I choose the airline within this system, I still can accumulate the miles I fly. It’s quite
good. (Respondents AF)
From the passengers’ point of view, they think that earning benefits by taking flights is
attractive. They enjoy the services and benefits, such as upgrades, discounts and shopping, as
long as they fly with airlines within this Asian Mile system. British Airways and Cathay
Pacific Airways are also members of the oneworld alliance, and passengers who join the
AsianMile programme also can have the benefits of the oneworld members’ airlines. One
observation made during the interviews was that loyalty programmes only attract those who
travel most frequently. For less regular travellers, an immediate discount is sufficient. Airlines
must consider their objectives and their consumer profile before deciding on which strategy to
implement.
Good Connection to the Destination: the Number of Transfer Points
Long-haul flights can be a tiring experience regardless of the quality of the service;
therefore, many passengers like to choose airlines that can take them to their destination fast
(Shaw, 1999, p.124). At the moment, it is difficult drastically to decrease the flight duration
due to technological reasons; however, too many transfer points and regular delays will be a
disadvantage.
I will pick the flight which will let me arrive at my destination the quickest. I
remember I have taken Royal Brunei Airlines once, because of a cheap ticket, however,
it took me over 24 hours. I had to transfer four times to London. I almost went crazy
during the trip. Since then, I do not like to spend too much time on a flight which has
too many transfer points even if the ticket is cheap. (Respondents AJ)
Long-haul flights certainly are not an experience they enjoyed, especially those who
travelled often. Nearly all of those who travelled often tried to share a story about their
12
painful encounters with delays and flight cancellations. So a long-haul flight is a negative
purchase, like a new car tyre- consumers would not but if they didn’t have to. Consequently,
airlines and passengers have to come up with solutions that are acceptable to both sides.
Safety
Although it may sound obvious, passengers can accept a reasonable trade-off between
airlines’ offers, but safety is the most important feature that cannot be compromised:
Safety is the most important issue for me when selecting airlines, because life is
precious. If I knew that China Airlines have had so many accidents in ten years, I
would not ever take China Airlines! When I saw the number of fatalities, it frightened
me seriously. I could not believe that I choose China Airlines just because of the cheap
tickets. I think other services are not important compared to life. Nothing is more
important than life itself. (Respondents AH)
Through the passengers’ views, even though they think that good service is a necessity in
their experience, nevertheless, the safety record is still a priority without dispute, and this can
have a crucial impact on the passengers’ decision-making process (Morrison and Winston,
1995).
From the above, it appears that safety is a priority as well as a bottom line that an airline
has to provide. It is not only important to student travellers but most other travellers as well.
Since 911, airlines are facing additional and sometimes very difficult challenges from within
the industry and the macro-environment. All of the above topics are individual offers
provided by airlines, but the last topic of the analysis section will look at the sum of these
parts - brand image and reputation.
Brand Image and Reputation
Kotler et al (2005, p549) assert that brand includes a wide range of offers and that ‘brand
names tell the buyer something about product quality. Buyers who always buy the same brand
know that they will get the same quality each time they buy’. In other words, all the different
offer criteria discussed above could be summarised through brands and the meanings
associated with brands. In the interviews, several respondents stated that they would buy
tickets from certain airlines due to the recommendations of their friends. On the other hand,
the importance of recommendation and word of mouth in travel and tourism industry although
is confirmed in some studies, but it is not without debate. Some of the interviewees would
13
actively advocate the airline with which they flew. For example, five respondents said that,
when they saw or heard about EVA airways, they would think that it is the safest airline,
while other respondents stated that Cathay Pacific Airways would remind them of the good
service quality.
Cathay Pacific Airways always gives me a good impression because of their
reputation. The majority of my friends also choose Cathay to travel. They told me that
they choose Cathay Pacific Airways because that they saw some reports about the
good service and safety provided by Cathay Pacific. I also agree with them due to the
enjoyable flying experiences with Cathay. (Respondents AO)
Moreover, the fact that all of participants can remember which airline they travelled with
last time and could name their favourite airline reconfirmed the importance of brand and
branding to consumers as well as airline companies.
Summary of Main Findings
To summarize, the major themes which emerged as key to customer airline choice in this
study were as follows. 1) having a fourth class with added benefits was perceived positively 2)
an efficient and user-friendly web interface allowing ticket purchase was an important
pre-requisite for many consumers 3) in-flight service quality was highly important,
particularly the attitude and professionalism of cabin crew, the quality of food and the
in-flight entertainment 4) special offers and loyalty programmes targeted at particular market
segments were viewed very favourably 5) convenience in terms of proximity to end
destination and transport links from the airport were also important 6) respondents were very
aware of each airline’s safety record and regarded it as a key factor 7) overall, respondents
seemed to be very aware of brand reputation as a symbol of all these themes collectively.
Managerial Implications
In this section, the existing literature will be combined with some of the above findings
to suggest how airline companies can improve their competitiveness in the short-, medium-
and long-term. This research realises that there are many alternatives but here only presents
those that were routinely pointed out by the participants.
Short-term improvement: the in-flight service
The first important lesson from this research relates to the kind of in-flight service that
14
the airline provided. These are the areas where airlines can improve within a relatively short
period of time. The first issue that concerns the respondents is the flight attendants’ service.
Some respondents worried about their language skills and chose EVA Airways, China
Airlines and Cathay Pacific Airways, which have Chinese-speaking cabin crews. Another
issue relates to the choice of food. Although other factors should not be undermined, however,
airlines can add value to their services if they can appreciate their passengers’ dining habits.
This effort will be positively acknowledged by the passengers. The third factor concerning the
interviewees is the in-flight entertainment programme. They care about that whether airlines
can offer up-to-date and the newest movies, music as well as video games because long-haul
journeys are long and tiresome, Additionally, the majority of the student participants are
members of generation X (1965-1979), who are curious, adventurous, enjoy challenges and
like to pursue fashionable things (Li, 2003).
Medium-term: the Inspirations from EVA Airway’s Elite Class
During this research, the respondents’ favourable attitude towards EVA’s Elite Class
confirmed the study by J ohnson and Nunes (2002). They propose that there is a gap between
the upper and the middle-class that was not recognised by the corporations.
The background of the students can be used to explain their purchase decisions and
travelling preferences. These participants mainly are funded by their slightly above
middle-class families at some level. They find business class too expensive and unnecessary,
but also find economy class unattractive. Currently, only EVA has pioneered this type of
in-between class and it seems quite successful in terms of capturing this marketing segment.
Apart from EVA, only Virgin Atlantic Airways has a Premium Economy Class which is
similar to EVA’s Elite Class, but it is only offered on a limited scale. On the other hand,
having an extra class will require a wide range of activities, such as new seating arrangements,
service, marketing and financial obligations.
Long-term: Airlines’ Safety and Branding Image
As mentioned in the previous chapter, safety cannot be replaced by any amount of
service (Shaw, 1999). Therefore, it is essential for airline companies to be safe and have an
image of being safe. Because airline’s actual safety is more of an aviation safety subject,
hence, this section will explore two suggestions about how airlines can use a service
marketing strategy to acquire an image of being safe. As demonstrated by some of the
participants in this research, they do have an existing belief about which airline is safer.
15
According to weak theory (Ehrenberg et al, 2002), airlines should not expect to alter the
travellers’ existing beliefs within a short period of time.
Airlines with a superior safety record, like EVA Airways and Cathay Pacific Airways,
could stress their records in their promotional kits as a reinforcement and reminder to
travellers. For airlines with inferior safety records, like China Airlines, one suggestion to
improve their image is through public relations and endorsements by aviation specialists,
especially through the channels of newspapers and specialised travel magazines. These
channels can be perceived as credible due to their nature (Hackley, 2005). In Hsieh and
Chang’s (2005) study on the Taiwanese travellers, it confirms that advertising through
endorsement can be an effective approach in hotel and hospitality industry. This research
proposes it should also be effective when applied to airlines due to their nature are similar in
many areas.
However, in another travel and tourism marketing study by Boo and Busser (2005), it
demonstrated the essentialness of considering the affective image as well as its cognitive
image. In other word, travel and tourism industry can not treat the consumers as naïve.
Concluding comments: limitations of this study and future research opportunities
This study, based on a representative and convenient sample of airline travellers and
focussed on a single route, has limited generalizability. Nevertheless, it does generate insights
which carry immediate implications for competitive strategy in the airline market. There are
limitations as regards the data gathering and analytical method. Due to the number of
respondents, it is difficult to establish a correlation between service attributes and behaviour.
Furthermore, interview respondents’ accounts of their behaviour are not always accurate. For
example, one respondent initially claimed that she had bought an economy class ticket but
later admitted that she flew business class because she did not want to be viewed as
showing-off or different, despite the interviews being conducted individually and privately.
However, in general, responses based on individual interviews tend to carry a high degree of
integrity, especially when responses are probed in depth interviews lasting a considerable
time period. The study could be extended and its findings deepened by adopting the same
methodological approach to other typical students routes, and also by extending the study to
other, non-student consumer segments.
16
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