Essays on Customer Perception of Cheap Fares and Its Implications Case Study

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The paper "Customer Perception of Cheap Fares and Its Implications" is a great example of a Marketing Case Study. EasyJet is amongst the fastest growing airlines in the world. EasyJet is a British low-cost cargo and passenger airline based in London. The airline was founded in 1995 but has since grown to become the largest airline in terms of the number of passengers carried. However, being a low-cost carrier, EasyJet normally charges low fares for its passengers as a way of attracting price-conscious traveler to the airline. However, this pricing strategy is likely to prove detrimental to EasyJet performance in the long run due to the negative perception that customers have about the quality of products and services offered by low-cost airlines.

This report investigates the perception of travelers on the quality of services and products offered by low-cost airlines. The study will involve the involve providing participants in the study with a questionnaire to give their perception of the quality of services and products offered by the low-cost airlines. Customer Perception of Cheap Fares and its Implications: A Case of EasyJet Introduction EasyJet is amongst the fastest growing airlines in the world.

EasyJet is a British low-cost cargo and passenger airline based in London. The airline was founded in 1995 but has since grown to become the largest airline in terms of the number of passengers carried. The faster growth that the airline has registered over the last few decades has seen EasyJet increase its flight destinations to more than 700 and flies in over 32 countries across the globe (Mayer 2007, p. 12). EasyJet employs about 8,900, which makes it rank amongst the largest employers in the European airline industry.

EasyJet flies about 200 aircraft consisting mainly of Airbus A319 and flown more than 65 million passengers in 2014. Currently, EasyJet is the second-largest low-cost airline in entire Europe, just behind Ryanair (Jones 2007, p. 75). Despite faster growth that the airline has registered over the years, EasyJet has had to face stiff competition from both domestic and international airlines. Among the major competitors of EasyJet are British Airways, Virgin Atlantic and Ryanair just to name but a few. Problem Statement Although EasyJet has been registering considerable growth since 1995, the airline faces a number of marketing challenges that might affect its performance in the future, key among them being cheap ticket prices that make the EasyJet being perceived to offer low-quality products and services.

This report will investigate why EasyJet has been charging low prices and how charging low prices are impacting negatively on the company performance. Based on the findings, the report will provide recommendations for change to help EasyJet overcome this challenge. Significance of the Study There are different stakeholders that might benefit from this study.

The first group will be the EasyJet as a company. By gaining an insight of how charging low ticket prices impacts negatively how customers perceive the company, the airline’ s marketing team will see the need to take a proactive and necessary action to overcome the challenges. The second group that might be affected by the study is the passengers using EasyJet as their airline of choice since the study will recommend changes to the company’ s pricing strategy that might affect passengers using the airline in the future.

The educators will also be affected by this study. By emphasizing to the marketing students the need to adopt an effective pricing strategy for a product or service, they will be able to transfer such knowledge to the workplace where they will be working in the future, thereby enhancing the performance of a company. Lastly, this study is also beneficial to other low-cost airlines other than EasyJet that also adopts similar low fares as a way of attracting price-conscious travelers to the industry. Accordingly, this report will help the other low-cost airlines understand how the low fares impact negatively on the way customers perceive the company and come up with effective measures of improving the image of their airlines.

References

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Jones, L 2007, EasyJet: The story of England's biggest low-cost airline. Aurum, London.

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Mayer, F 2007, A case study of EasyJet and the airline industry. GRIN Verlag, Berlin.

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Prisco, J., & Nurse, E 2015, Tanzania offers cockpit view into Africa's soaring low-cost airline industry, CNN 19 August, viewed 3 September 2015 http://edition.cnn.com/2015/08/19/travel/tanzania-aviation-fastjet/

Reed, T 2015, American's too-low pricing hurts the airline industry, analyst says. The Street 3 August, viewed 3 September 2015 http://www.thestreet.com/story/13240568/1/americans-too-low-pricing-hurts-the-airline-industry-analyst-says.html

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The Telegraph 2001, British Airways v the low cost airlines: how they compare. The Telegraph 30 July, viewed 3 September 2015 http://www.telegraph.co.uk/finance/newsbysector/transport/8671925/British-Airways-v-the-low-cost-airlines-how-they-compare.html

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