Evaluating difference in customer expectations between Low cost carriers (LCCs) and Full service carriers (FSCs) in Dubai International Airport
volume:44 pages style:Harvard Type: Dissertation Evaluating difference in customer expectations between Low cost carriers (LCCs) and Full service carriers (FSCs) in Dubai International Airport Total maximum word count 12100 words 44 pages (double spaced, 275 words per page) Chapter 1 Introduction and Background (1200words) 1.3 Rationale (reason for the study) Chapter 2 Literature review (4500words) Chapter 3 Research methods (1500 words) 3.1 Introduction 3.2 The research framework 3.3 Research philosophy and perspective 3.5 Qualitative vs. Quantitative study 3.7 Sampling method 3.9 Validity and reliability- triangulation Writer will consider the proposal 3.10 Ethical concerns Chapter 4 Data Findings and Presentation of Results (1000 words) Chapter 5 Data analysis and Discussion (3000 words) 5.3. Discussion of the specific objectives 5.4. Conclusion Chapter 6 Conclusions and Recommendations (1000 words) Introduction Appendices References EAU Business School Research Proposal – Form B Student Name: Dissertation Title – Evaluating difference in customer expectations between Low cost carriers (LCC’s) and Full service carriers (FSC’s) in Dubai International Airport 1. Proposal Summary Full service model Kano model 8. Primary/secondary data sources
Style: Harvard
US English
1.1 Introduction
1.2 Background to the study
The research problem
1.4 Aims and objectives of the study
The objectives of this research are:
1.5 Research questions
1.6 The relevance of the study
1.7 Structure of the Dissertation
2.1. Introduction
2.2. Conclusion
. Research purpose
3.4 Research Approach adopted
To Describe both qualitative method or quantitative analysis
3.6 Research methods used-
..
3.8 Data analysis
To Describe triangulation
To Apply to this study
3.11 Limitations and delimitations of the study
3.12 Conclusion
4.1Introduction
4.2Interview results in tables based on the research objectives
4.3Conclusion
5.1. Introduction
5.2. Overview
6.1. Conclusions
6.2. Implications of the study
6.3. Recommendations
Appendix 1:
Required 50 to 60 sources (Mainly recent sources between 2005 to 2015)
Student ID:
Course:
Email:
Supervisor:
Dissertation Details
Since the liberalization and mitigation of aviation regulations in around 1978, rivalry in the aviation industry has become more intense (Doganis 2002, p. 51). The outcomes of such lenient aviation regulations include the emergence of Low-Cost Carriers (LLCs) that is accelerating competition even further among airliners. Besides the quantitative growth of Low-Cost Carriers, the operation strategies of Low-Cost Carriers, which are usually focused on short haul or domestic services, are slowly spreading to long haul and international routes; hence can no longer stop competing with Full-Service Carriers (FSCs) (Mahadevan 2009, 26). Thus, the strategic management and improvement of service quality with definitive influence on the choice of airline companies by consumers are significant for FSCs and LCCs to be competitive in the rapidly growing market. In real sense, there are not only differences in the key services and service strategies pursued by the LCCs and FSCs, but also different levels and standards of expectations for consumers and accessibility the service qualities of these carriers (Morrell 2013, p. 122). This proposition implies that different standards should be implemented in the design and management of services provided by LCCs to customers in relation to other bigger airline companies.
Moreover, the airline services are composed of both intangible and tangible properties (Carmichael, Whittington & Graham2012, p. 3). Thus, airline companies utilize tangible aircrafts to move cargo and passengers to their destinations. However, in this case, passengers usually experience several intangible services such as comfort seats, hospitality of crew, and cabin services, as well as service frequency. To measure and assess such airline service quality, many studies have used five measurement criteria of PZB model – a model that was developed by Parasuraman, Zeithaml and Berry in 1985 (Kersten 2008, p. 244). These studies are relevant to airline service quality and have concentrated on testing the powerful relationship between attributes of service quality and result variables such as loyalty and customer satisfaction. Although consumers have differing evaluation criteria and expectations for the service quality offered by FSCs and LCCs, there have been no efforts to differentiate and clarify quality attributes of airline services based on the various types of airline. Furthermore, studies relevant to the airline service quality in the field of tourism mainly constitute studies that categorize airline services based on properties such as human, physical, ground, cabin, and airline services (Duval 2007, p. 250). Additionally, there are three major service attributes that can be used to make comparison between LCCs and FSCs: human service; physical; and system service. However, this paper seeks to evaluate the most significant service dimensions that appeal to the customers of LCCs and FSCs.
2. Topic Literature Review
The advancement of the air transportation industry has exhibited a rapid growth since the early 19th Century as proposed by Radnoti (2001, P. 362). The liberalization (privatization) and deregulation of the air transport system have generated new airline business. According to Neufville and Odoni (2003, P. 441), deregulation is defined as the removal of government policies to control airport or airline companies to drop or raise prices and entry and exit markets. According to the AlDamari and Fagan (2005, P. 378), the liberalization and deregulation first occurred in the United States in 1970s and in the European Union, according to Graham et al. (2003, P. 211), these events took place in three differing times 1987, 1990, and 1992 when regulated routes and fares were removed permitting EU airline companies to operate within EU territories. Furthermore, liberalization and deregulation have increased the intensity of competition among airlines (Guillen and Ashish, 2004, P. 44). To compete and broaden their air traffic market, the companies have enhanced their business models by using new business strategies to minimize cost operations, reduce fares, and at the same time, maximize profits. Thus, to compete with Low-Cost Carriers, Full-Service carriers are minimizing costs by utilizing LCC strategies especially in short-term operations. AlDamari and Fagan (2005, P. 379) propose three general airlines strategies to be adopted by carriers to have a competitive edge: cost leadership, differentiation strategy, and focus strategy.
The conventional FSC model has depicted a mild profit growth as it has been characterized by decreased productivity and average fares over the last two decades. According to Barret (2004, P. 35), FSCs have enjoyed government regulation and control of airport activities. However, after deregulation and privatization of the air transport industry, Full –Service Carriers have been compelled to cutting down of airline operation costs and minimize fares to remain competitive relevant in short-haul operations. According to Dennis (2007. P. 314), FSCs have realized the merits of the LCC business model and some, such as FlyDubai, and Jazeera Airways, have invested in a low-cost subsidiary carrier. However, FSCs can only adopt to LLC strategies that do not have a negative effect on the quality of services such as frequent scheduling, ground service, inter-flight flexibility in connection to interest in comfort on-board, personal space, in-flight entertainment, and drinks and free meal.
Low-Cost model
According to AlDamari and Fagan (2005, P. 383), the recent development of LCC concept has been contributed by the great challenge in the airlines market caused by rapid fluctuations of economic circumstances. The LCC model can be defined as the low-cost scheduling airlines. The major LCC customers are business and leisure passengers (Williams 2002, P. 52). The deregulation and liberalization have assisted LCCs in gaining market and increase profitability while at the same time, providing the customers with more accessibility to travel at lower prices (Gillen &Ashish 2004, P. 45).
The Kano model clarifies the attributes of products and services on the basis of how they are recognized by customers (Goodpasture 2003, p. 8). It is also known as a two-dimensional recognition approach for quality and describes the relationship between product or service performance with customer satisfaction. Additionally, consumers have different levels of satisfactions for the fulfillment of quality elements. When any of quality elements is not fulfilled, the levels of the satisfactions of consumers drop significantly. Therefore, the Kano model classifies three main quality elements of customer expectation of products and services (Mukherjee &Kachwala 2009, p. 321).
3. Objectives
• To evaluate different customer expectations for airline service quality characteristics of LCCs and FSCs through Kano Model in Dubai International Airport
• To evaluate whether price is the only main determinants of carrier choice for the passengers in Dubai International Airport
4. Project Outcomes
There will be five factors to be evaluated together with their attributes. These factors include aircraft (safety, attractiveness of ticket fare, comfort of the seats, and cabin storage space), in-flight service (meal service availability, food & beverage quality, in-flight entertainment), employee (appearance, kindness, uniforms, knowledge and skills), and the flight system (seat assignment, flight timeliness). The expected outcomes of the dissertation include differences between LCCs and FSCs in terms of ticket fare attractiveness, safety, seat comfort, cabin storage space, availability of meal service, food and beverage quality, in-flight entertainment, employee appearance, seat assignment, and flight timeliness.
5. Why are you interested in the project?
I am interested in this project to study the factors that affects the airline service quality and what influences customers to choose between LCCs and FSCs.
6. Research Questions
• Does a person paying for an LCC fare do it only for a price? Is there possibly other factors which come into it instead, such as network of routes, the choice to pick selected services are also brand perception.
• Does a cheap ticket mean a customer expects less quality in their service? Does paying more for a ticket mean service is aligned with a premium price?
• LCC’s are integrating the use of slim line seats, which helps to keep the prices down, yet also adds an extra seat to each row in an aircraft. This also makes passenger seats narrower. Is there a tradeoff between this inconvenience and the low price?
7. Research Methods
The qualitative research method will be used for the methodology section. According to Klenke (2008, p. 4), the qualitative research has been facilitated by the general dissatisfaction with the information generated by quantitative techniques, especially in understanding and interpretation of the feelings of the participants. In this case, questionnaire will be utilized as tools to collect qualitative data for the study from FSC and LCC passengers. Therefore, the dissertation will be conducted by surveying 50 recent LCC passengers and 50 FSC carrier passengers at random in the public area of exit lanes, CellPhone waiting lot, and accessible terminals in Dubai International Airport to ask them about the variables that are important to them in airline choice. Therefore, the size of sample will include 100 passengers and the participants of the dissertation will be selected randomly from (DXB) Dubai International Airport’s passengers who have experienced both FSCs and LCCs for flights; by requesting them to fill in questionnaires. Each participant will be allowed utmost 10 minutes to fill in questionnaire. With the concepts delivered from the literature review, questionnaires will be designed and the attributes of airline carrier service quality will be composed of three main parts: Human service, system service, and physical service. The questionnaires will have 21 attributes that will be used to develop questions based on Kano’s positive and negative attributes (Beckley, Paredes & Lopetcharat 2012, p. 183). Furthermore, the data gathered through questionnaires will be categorized into “attractive”, “must be”, “one-dimensional”, “reverse”, and “indifferent” based on the Kano model.
Questionnaire design
The primary data sources include the first-hand evidence of observers or participants, whereas the secondary data sources include materials that identify, analyze, assess, and interpret information from a primary data source. Therefore, the primary data for the dissertation will be obtained through survey from the passengers using both LCCs and FSCs in an airport setting. The primary data will obtained through self-administered questionnaires and will form the main source of data for the dissertation. However, the secondary source of data will include textbooks and journal articles relevant to the FSC and LCC topic.
9. Chapter heading draft
The following will be chapter headings for the dissertation report:
• Cover page
• Title page
• Acknowledgements
• Abstracts
• Content page
1. Introduction
2. Objectives
3. Methodology
4. Literature survey
5. Results
6. Discussions
7. Conclusion
8. Recommendations
• Reference list
• Appendices
10. Plan
List of References
Aldamari, F., Fagan, S 2005. Impact of the Adherence to the original low-cost model on the profitability of the low-cost airline. Transport Reviews, Vol 25, pp. 377-392
Barret, S 2004. How do the demands for airport services differ between full-service carriers and low-cost carriers? Journal of Air Transport Management, Vol 10, pp. 33-39
Beckley, J. H., Paredes, M. D., &Lopetcharat, K. (2012). Product innovation toolbox: A field guide to consumer understanding and research. Hoboken, NJ: Wiley-Blackwell.
Carmichael, D. R., Whittington, O. Ray, & Graham, Lynford. (2012). Accountants’ Handbook, Financial Accounting and General Topics. John Wiley & Sons Inc.
Dennis, N 2007. End of the free lunch? The responses of traditional European airlines to the low-cost carrier threat.Journal of Air Transport Management, Vol 13, pp. 311-321
Doganis, R 2002. Flying Off Course: The Economics of International Airlines. London: Psychology Press
Duval, D. T. (2007). Tourism and transport: Modes, networks, and flows. Clevedon, England: Channel View Publications.
Goodpasture, J. C. (2003). Quantitative methods in project management. Boca Raton, Fla: J. Ross Pub.
Graham, F., Fidato, A. and Humphreys, I 2003.Airport–airline interaction: the impact of low-cost carriers on two European airports. Journal of Air Transport Management, Vol 9, pp. 206-273
Guillen, D. and Ashish, L 2004. Competitive advantage of low-cost carriers: some implications for airports, Journal of Air Transport Management, Vol 10, pp. 41-50
Kersten, W. (2008). Global Logistics Management: Sustainability, Quality, Risks. Berlin: Schmidt.
Klenke, K. (2008). Qualitative research in the study of leadership. Bingley, UK: Emerald Group Pub.
Mahadevan, B. (2009). Operations management: Theory and practice. New Delhi: Published by Dorling Kindersley (India), licensees of Pearson Education in South Asia.
Morrell, P. S. (2013). Airline finance. Farnham, Surrey, England: Ashgate.
Mukherjee, P. N., &Kachwala, T. T. (2009). Operations management and productivity techniques. New Delhi: PHI Learning.
Neufville, R. and Odoni, A 2003. Airport Systems Planning, Design and Management, Printed by McGraw Hill, New York
Radnoti, G 2001. Profit Strategies for Air Transportation, Aviation Week Books. McGraw Hill: United States.
Williams, G 2002. Airline Competition: Deregulations Mixed Legacy, Printed by Ashgate, England, United Kingdom
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