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Branding satisfaction in the airline industry a comparative study of malaysia airlines and air asia

Accepted 23 March, 2011 Brand is crucial in differentiating the superiority of products or services over others.

This is an exploratory study examining the differences in brand satisfaction between Malaysian Airlines full service airlines and Air Asia low cost airlines in Malaysia. Exploratory factor analysis revealed seven brand satisfaction dimensions which are tangibles, price, core service, reputation, publicity, word-of-mouth, and employee. Generally, respondents were not satisfied with all brand dimensions of both airlines.

The level of brand dissatisfaction is also higher for Malaysian Airlines compared with Air Asia. Air Asia was perceived better than Malaysian Airlines in price, publicity, and word-of-mouth. On the other hand, Malaysian Airlines was perceived better in tangibles, core service, reputation, and employee.

The paper highlights some of its theoretical, managerial and marketing implications to the development of airline industry. Airlines, branding, satisfaction, Malaysia Airlines, Air Asia.

Among factors particularly during the weak economic situation in 2008 contributing to the situation are, increasing fuel prices, and 2009. As reported in the recent World The aviation industry in Malaysia is dominated by two Airline Report, the world airline industry has recorded a airlines.

These are Malaysia Airlines and Air Asia. The tough situation has been classified as a full service airline while Air Asia has forced the airlines around the world to revoke their has been classified as a low cost airline. Malaysia traditional airline strategy and venture into new alliances Airlines, the national airline of Malaysia is serving both and new business models in order to keep its international and domestic routes across 100 destinations competitiveness.

One of the main developments in the worldwide including code-sharing flights. It has one of current aviation industry is the growing popularity of low the largest fleet sizes in South East Asia and is one of cost airlines, including the Asia Pacific region.

On the other hand, Air Asia is the first low cost airline in the region, and it operates scheduled domestic and inter- national flights over 75 destinations in 21 countries. Air Asia has been reengineered and made a remarkable Wong and Musa 3411 turnaround and turned into a profitable airline in 2002. Therefore, it could be proposed that Skytrax World Airline Award.

Best Low Cost Airlines from the same organization. The competition between Malaysia Airlines and Air Asia has been fierce in particular as regards the price factor. This has challenged The aviation industry has been identified as one of the the branding position of the long-known Malaysia Airlines.

  • Distinct dimensions such as core service, feelings, command premium prices Tepeci, 1999;
  • A Guide to Creating, Conducting, Analyzing, and responses to service encounters;
  • The individual airline were completed;
  • The new Factor 1 has been renamed as tangibles as publicity, advertising, and servicescape can be classified as tangibles according to the items used in Parasuraman et al.

However, this may not Tiernan et al. How- Transport Association, 2002; Clemes et al. It great impact on aviation industry, particularly to the mar- is also important to differentiate themselves from their ket of business travel. Based on previous studies, the low cost airlines. This popularity is magnified with the airline industry has demonstrated that it is possible to adoption of deregulation practices in the airline industry achieve a clear differentiation through service brands by many countries Clemes et al.

The success of this business model 2002 is confident that customers do not have a has then been the inspiration to other low cost airlines relationship with a product or service; but they do have around the world, such as Ryan Air and EasyJet in the relationship with a brand.

The emergence of low cost Previous researchers have developed some theoretical airlines in South-East Asia began in early 2000s. Aaker 1996 and Keller 1993, 1998 have tiation strategy Tiernan et al.

However, Turley and Moore and Yeh, 2010. There is still limited research carried out in the satisfied are the customers with the services provided. This is achieved by Saha and Theingi, 2009; Tiernan et al. Bennett 1988 defined brand as a name, term, sign, LeBlanc and Nguyen 1996 described core service as symbol, design, or any combination of these concepts, the main reason for customer to choose a services used to identify the goods and services of a seller.

In the organization over the others. Therefore, it may be unlike having individual branding for tangible products expected that a good service brand should be able to Berry et branding satisfaction in the airline industry a comparative study of malaysia airlines and air asia.

Therefore, in the airlines industry, we provide excellent core and adjunct services in order to may sometimes find that the corporate image of the create values to customers.

Elements of core service, airline company is the airlines brand itself. Bateson such as on-time departure LeBlanc and Nguyen, 1996; 1995 and Cliff 1999 argued that marketers and brand Parasuraman et al. Their results show that 1991 pointed out that we can better explain customer branding principles are generally common between satisfaction through an understanding of the emotional physical goods and services.

De Chernatony and content of services encountered. Following the event of September 11, safety has rience with the company. Often, they are able to brand. Distinct dimensions such as core service, feelings, command premium prices Tepeci, 1999.

These dimensions Rogerson 1983 stated that good reputation could appeared in several branding models, though different increase an organization's sales, attract more customers, expressions were used instead Bailey and Schechter, and reduce customer departures.

Both LeBlanc and Nguyen 1996 and branding dimensions that will be considered in this study. Thus, it may be advertising. The price is an issue Zeithaml and Bitner, 2000 and their satisfaction level Wong and Musa 3413 Crosby et al. The finding echoes in Kim et al. According to 1999 who discovered that publicity media exposure is Gronroos 1994staffs embody the service brand in the more effective than paid advertising. Furthermore, each member of the publicity can have a major impact on the business services organization represents the firm and defines the success Henthorne and Henthorne, 1994.

Reidenbach product Shostack, 1977. Employee has been used as a and Sherrel 1986 cautioned that while negative publicity study construct in some of the recent airline studies such may not be entirely preventable, efforts should always be as Aksoy et al.

Wen and Yeh 2010. Mortimer 2001 negative experiences. The finding contradicts Fisk et al. However, Parasuraman et al. Positive word-of-mouth activity expectation, thus, making satisfaction more difficult to on a particular organization will result in it having a good achieve.

Saha and Theingi 2009 highlighting services benefits Mittal, 1999. Pitt and Brown historical thought of marketing schools. The earlier study 2001 had summarized that low cost airlines would offer of customer effort, expectations, and satisfaction can be a cheaper product design such as no assigned seats and traced back to the research done by Cardozo 1965.

Branding satisfaction in the airline industry a comparative study of malaysia airlines and air asia

Thus, it can be expected satisfaction differently; thus different measuring tools that the satisfaction level on servicescape for these two have been proposed accordingly. Customer satisfaction stimulates repeat purchases and Publicity creates brand awareness, enhances attitudes favourable word-of-mouth Rogerson, 1983.

It acts as an towards a company and its brands, and possibly exit barrier and therefore, able to help the company in influences purchase behaviour. In this, it shares a similar retaining its customers Anderson and Sullivan, 1993; role to advertising Burnley, 1998.

Hennessey 1992 Cardozo, 1965; Fornell, 1992; Halstead and Page, 1992and Nally 1991 suggested that successful publicity securing customer loyalty Selnes, 1993and producing depends on how well it has been communicated and how supercilious long-term financial performance Karna, well the various segments of the public understood it.

Authors such as Cronin and Taylor Cameron 1994 pointed out that previous researches 1992Fornell 1992Jones 1990and Parasuraman have indicated that publicity activities outshined adver- et al. Reichheld and perception; thus it may be evolved over time as well. Sasser 1990 found that profitability of a company However, as SERVQUAL has been the most widely used escalates proportionally with the number of loyal and tested service quality survey instrument, the validity customers.

Referring to Heskett et al. In this study, it is essential customers is more expensive than retaining the existing for the authors to study the expectation, perception, and target groups. Thus, the theoretical underpinning of SERVQUAL 2005and Yi 1990satisfaction occurs as a process or has supported the appropriateness of this study on the an outcome itself. The product and the accompanying relevance of branding on customer satisfaction. As this is an exploratory study was originally proposed by Gronroos 1990 and suppor- examining the differences in services branding satisfaction between a full service airline and a low cost airline, it is essential to look into ted by Cronin and Taylor 1992.

The conceptual framework as shown in Figure 1 is derived from Theoretically, customer satisfaction is also being the definition of satisfaction; that is, the result of the perceived defined as the result of a subjective comparison between discrepancy between prior expectations and the perceived post- purchase accomplishments Fecikova, 2004; Liljander and expectation and the perceived post-purchase accom- Strandvik, 1992; Oliver, 1997; Tse and Wilton, 1988; Wirtz and plishments Fecikova, 2004; Liljander and Strandvik, Bateson, 1992.

If the difference is negative, it shows Bateson, 1992 or a comparison between rewards and dissatisfaction of the customer. There are three parts of the affective processes, both psychological and physiological questionnaire. A total of 30 statements are presented each in Part A and the understanding of service quality gap, where B. The items for each dimension are selected based on the items SERVQUAL has been developed to measure service used by previous researches carried out on services operations and services branding as summarized in Table 1.

  1. Bamford D, Xystouri T 2005.
  2. The target population pling adequacy was 0.
  3. The dimensionality of consumption Autumn. Both LeBlanc and Nguyen 1996 and branding dimensions that will be considered in this study.
  4. Comparison of expectation, perception, and higher perception means for the rest of the dimensions. Perception of service quality and the effect of customer satisfaction levels on their of 'service-gaps' in malaysia's airline industry conducted a study on the perceptions of low-cost airlines and full-service airline frequently used mas sia thai international airasia jet airways comparison is shown in table 6 a.
  5. Cranfield School of Management, Data Analysis 5th ed.

Even Wong and Musa 3415 Table 1. Items of each service branding dimensions. Dimension Item Source 1. Feeling i Warmth Lemmink and Mattsson 2002Price et al. Reputation i Good reputation Boyd et al. Publicity i Informative 2003 ii Influenced my evaluation Burnley 1998Kim et al. Coelho and Esteves, 2007 and it is used to avoid any neutral The scores from the Part A and Part B are compared in order to response Dimofte et al.

Juwaheer 2004Saha and Theingi 2009Tiernan et al. As proposed by Lin and Jones 1997 on the importance of 2008and Wen and Yeh 2010. The results show that the items measurement achieved the validity and reliability required.

Each researcher was stationed at each airport separately, from Monday to Friday in the month of June Factor analysis using Principle Component Analysis and 2008.

The survey times were between 8 am and 12 noon in Varimax Rotation was performed on 30 exploratory items departure areas and between 1 and 5 pm in arrival areas in order to of airlines branding satisfaction. Bartlett test of sphericity widen the coverage of the samples. Every five passengers who was significant and Kaiser-Meyer-Olkin measure of sam- passed through the gate were approached. The target population pling adequacy was 0. Malaysia Airlines and Air Asia flight services in the last six months.

Respondents could either return the completed questionnaires to The minimum suppress absolute values had been set at the researchers by the postage paid self-addressed envelopes or 0.

The initial factor by email through scan copies in order to provide convenience to analysis revealed seven factors. It was interesting to find the respondents. A total of 500 questionnaires with postage paid out that few of the items from different dimensions were self-addressed envelopes were distributed by hand in each airport.