The paper "Marketing Research for an Australian Business - Jetstar Airlines" is a perfect example of a marketing case study. This market planning is based on three objectives namely: identifying whether the management decisions made in regard to low wages and tight management control on employees affect service provision to customers; identify how Jetstar motivates its employee to perform well and meet customers’ service requirements; establishing how Jetstar manages to keep its customers satisfied. The research proposes to use triangulation in research where both quantitative and qualitative data will be obtained and analyzed with the main focus being placed on the need to establish whether there is a link between the prevailing HR policies in Jetstar, and the marketability of the airline (in terms of repeat purchase), with the latter being a result of customer satisfaction or lack thereof. The research concludes by noting that the implications of the research (especially if it emerges that a high number of an employee are dissatisfied) may include the possibility of customers sympathizing with employees and boycotting JetStar airways, and/or improvement of the HR practices in order to avoid negative publicity on the same.
If the research findings are positive however, they will boost Jetstar’ s marketing efforts by positioning it among employers who provide fair wages and consideration to their employees. Research conceptualization Since its establishment in 2004, Jetstar airline has been operating as a low-cost carrier (LCC) airline in Australia in apparent competition with Virgin Blue airline. Notably, the market has changed significantly since 2004 hence necessitating new research to indicate prevailing market conditions. Notably, Jetstar is a wholly-owned subsidiary of the Australian Government-owned airline, Qantas Airways (Qantas), and was specifically created to offer ‘ no frills’ , low-cost airline travel services in and beyond Australia.
To drive down the cost of airline travel, other management decisions that were made included reducing wages for airline staff, and high levels of management control (Sarina & Lansbury, 2009). This research will seek to establish if the management decisions made then are still relevant to date, and what their impact has been on employee performance and customer satisfaction. Specifically, the research seeks to answer how Jetstar manages to enhance high customer-satisfaction rates while offering relatively low wages and practising strict management control on its employees when compared to other airlines. The research will cover the internal market environment, specifically with a focus on the employees and the management. Research objectives To identify whether the management decisions made in regard to low wages and tight management control on employees are relevant to date. To identify how Jetstar motivates its employee to perform well and meet customers’ service requirements. To establish how Jetstar manages to keep its customers satisfied Literature Review Customer satisfaction is a key issue for most airlines, and as Hamm (2012) indicates, LLCs have been registering higher customer satisfaction rates when compared to their legacy carrier counterparts.
Customer satisfaction, on the other hand, affects the repeat purchase intention (Yeoh & Chan 2011). Auh and Johnson (2005) define customer satisfaction as “ a cumulative evaluation of a customer’ s purchase and consumption experience to-date” (p. 36). On his part, Statt (2001) defines customer satisfaction as “ an evaluation of emotion after consuming a chosen alternative, that it meets expectations” (p. 101). Notably, however, the attributes that contribute to customer satisfaction are different for LLC and legacy carriers.
LLCs make it clear that they have a “ no-frill” policy in their airlines. As such, customers do not expect certain onboard services that would be available on legacy carriers to be available in the low-cost carriers. It has been argued that customers are not more satisfied while travelling onboard LLCs, but are simply accepting the low services which are a compromise of the price they have to pay (Yeoh & Chan, 2011). Bieger et al. (2007) further argue that customers who have little money to spend no longer place value on the quality of transport offered by airlines; rather, they place value on low airfares.
Ahmad, M., Wasay, E., & Malik, S. (2012). Impact of employee motivation on customer satisfaction: study of airline industry in Pakistan. Interdisciplinary Journal of Contemporary Research in Business 4 (6), 431-539.
Auh, S., & Johnson, M.D. (2005). Compatibility effects in evaluations of satisfaction and loyalty. Journal of Economic Psychology 26, 35-37.
Baker, L. M. (2006). Observation: a complex research method. Library Trends 55(1), 171-189.
Bieger, T., Wittmer. A. & Laesser, C. (2007). What is Driving the Continued Growth in Demand for Air Travel? Customer Value of Air Transport. J. Air Transport Management, 13: 31-36.
Chen, S. H. (2011). Integrating service quality evaluation model to improve employees satisfaction for high-tech industry. Human Factors and Ergonomics in Manufacturing &Service Industries 01, 163-180.
Gittell, J. H., Nordenflycht, A., & Kochan, T. A. (2004). Mutual gains or zero sum? Labor relations and firm performance in the airline industry. Industrial & Labor Relations Review, 57(2): 163-180.
Gorman, G. E., & Clayton, P. (2005). Qualitative research for the information professional (2nd ed.). London: Facet.
Greener, S. (2008). Business research methods. New York: Ventus Publishing.
Hamm, C. (2012). Ssatisfaction with low-cost carrier outpaces legacy counterparts. Los Angeles Times, retrieved November 17, 2013, from http://articles.latimes.com/2012/jun/13/news/la-trb-airline-satisfication-survey-jdpower-20120612>.
Jetstar. (2012). Jetstar airways leverages cloud services and Genesys to drive growth. Success story. Retrieved November 17, 2013, from http://www.genesyslab.com/resources/success-stories-and-infographics/jetstar-airlines-leverages-cloud-and-genesys-to-drive-growth.pdf
Mann, P.S. (1995). Introductory statistics, 2nd edition, London: Wiley.
Statt, D.A. (2001). Consumer behaviour. A distance learning programme. Great Britain: FT Knowledge Pearson.
Stewart, B. (2006). Analysing focus group data. 109-134. Retrieved November 16, 2013, from http://www.sagepub.com/upm-data/11007_Chapter_7.pdf
Wirtz, J. (2008). Managing human resaources for service excellence and cost-effectiveness at Singapore Airlines. Managing Service Quality 18 (1).
Yeoh, E. & Chan, J.K.L. (2011). Malaysian low cost airlines: key influencing factors on customers’ repeat purchase intention. World Applied Sciences Journal 35-43.