Unveiling the Values of Blue Bird Taxis

Prepared for:
Dr. H. Purnomo Prawiro
President Director PT Blue Bird Tbk.
By:
Anita William |U1076156
Word Count: 2174 words
Date of Submission: 14 March 2015

Table of Contents

Unveiling the Values......................................................................................................... 1

of Blue Bird Taxis............................................................................................................ 1
1.

Introduction to Blue Bird............................................................................................. 1

2.

Value Equation.......................................................................................................... 2
2.1 Value of Blue Bird.................................................................................................... 2
2.2

Costs of using Blue Bird....................................................................................... 4

3.

Decision Making Perspectives....................................................................................... 5

4.

Decision Making Approaches....................................................................................... 6

5.

Heuristics................................................................................................................ 7
5.1 Recognition heuristic................................................................................................ 7
5.2 Lexicographic heuristic............................................................................................. 7

6.

Situational Influences................................................................................................. 8
6.1 Time..................................................................................................................... 8
6.2

Conditions......................................................................................................... 9

6.2.1 Weather........................................................................................................... 9
6.2.2 Mental Budgeting............................................................................................... 9
6.2.3 Occasion.......................................................................................................... 9
7.

Influence of Atmospherics......................................................................................... 10
7.1 Odor................................................................................................................... 10
7.2 Music................................................................................................................. 10
7.3 Drivers................................................................................................................ 10
7.4 Color.................................................................................................................. 11

8.

Conclusion............................................................................................................ 12

Bibliography................................................................................................................ 13

1. Introduction to Blue Bird

Figure 1: Mrs. Mutiara Fatimah Djokosoetono & Dr. Chandra Suharto (Blue Bird Group 2014)

Blue Bird Group is a company in Indonesia that provides transportation and travel
services. Established in 1972 by the late Mrs. Mutiara Fatimah Djokosoetono and the late
dr. Chandra Suharto, Blue Bird Groups line of services encompasses a broad range of
spectrum, from regular taxis (Blue Bird & Pusaka) up to executive taxi (Silver Bird),
limousine & car rental (Golden Bird), charter bus (Big Bird), Logistic (Iron Bird
Logistic), Industry, Property, Supporting Services and Heavy Equipment (Blue Bird
Group 2014). However, this assignment will focus on its regular taxi line, Blue Bird and
Pusaka.
Even though Blue Bird started off with only 25 taxis in Surabaya, their excellent
quality and safety have made them the largest taxi provider in Indonesia. Now, Blue Bird
Group operates not only in Jakarta but also in the largest cities in Indonesia such as
Yogyakarta, Bali, Bandung, etc. Blue Bird taxis features include trusted driver, 24-hour
GPS technology, well-maintained fleet, lost & found service, and easy to get and easy to
pay (Blue Bird Group 2014).

2. Value Equation
Value equation involves assessing the benefits received by consumers with what
they

have to sacrifice (Babin & Harris 2009). Below is a diagram showing Blue Birds value

equation.

What
you
get

Value

Transportatio
n
Safety
Time
Convenience

What
you
give

Money
Opportunity
Emotions

Figure 2: Blue Birds value equation

2.1 Value of Blue Bird

Blue Bird mostly offers utilitarian value. Utilitarian value is derived from a
product that helps the customer solve problems and accomplish tasks that are a part of
being a consumer (Babin & Harris 2009, p. 29). The values offered are:

1. Transportation

Figure 2.1: Blue Bird Cars (Blue Bird 2014)

As Blue Bird group is a transportation service provider, it offers a safe

transportation from the passengers point of origin to the desired destination.
2. Safety
Most Indonesian citizens acknowledge Blue Bird as the safest taxi in Jakarta, so
riding Blue Bird taxi gives a sense of security or safety for the passengers as opposed to
when they use other taxi brands or other public transportation.
3. Time

Figure 2.3: Blue Bird Taxi Mobile Reservation (Blue Bird 2014)

Blue Bird provides a hassle free and quick transportation, unlike other public
transportation such as train, Transjakarta (a Bus Rapid Transit system in Jakarta), and
buses which often involve prolonged waiting periods, Blue Bird is available almost
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everywhere throughout major cities in Indonesia making it easier for passengers to catch
a cab quickly. Furthermore, consumers can now book Blue Bird taxi beforehand via Blue
Bird mobile app and hotline.

4. Convenience and Comfort

Waiting for public buses or trains can be quite tedious, not to mention public
transportations in Indonesia are often very crowded, unhygienic, and uncomfortable.
Thus, consumers often opt for Blue Bird instead as they can easily find Blue Bird taxis
everywhere and the cars are clean and comfortable.

2.2 Costs of using Blue Bird

The costs of using Blue Bird Taxi are;

1. Money
Although Blue Bird is very good in providing a safe and comfortable
transportation, it is quite costly. The Blue Bird taxi fare is quite high compared to other
Taxi providers.
2. Opportunity of using that money
Because of the high taxi fare, the money that can be used to pay for other
necessities or kept for savings are used for a one time transportation only.
3. Emotions
For people that often use public transportation, they may feel guilty for spending a
lot of money for taxi since the cost of using Blue Bird once can be used for other things.

3. Decision Making Perspectives

For Blue Bird, the decision making perspectives that passengers have to go
through are rational and behavior decision making perspective.

Figure 3.1: Decision making perspective diagram

Rational decision making perspective assumes that consumers diligently gather

information about purchases, carefully compare various brands of products on salient
attributes, and make informed decisions regarding what brand to buy (Babin & Harris
2009, p.216). Passengers may go through rational decision making perspective by
comparing Blue Bird with other taxi brands and public transportation. Blue Bird is
known for its safe and reliable reputation, so people who put safety first would choose
Blue Bird. However Blue Birds fare is considered as quite pricy so consumers that
prioritize on price would opt for cheaper transportation.
Babin & Harris (2009) states that behavioral influence decision making
perspective assumes that many decisions are actually learned responses to environmental
influences (p.217). Consumers may choose Blue Bird since the clean and cool interior
of the cars can protect them from Indonesias hot weather and allow them to travel
comfortably.

4. Decision Making Approaches

Through detailed analysis of decision making approaches, Blue Birds consumers
will likely use limited and habitual decision making.

Decision
Making
Approaches

Limited
Decision
Making

Habitual
Decision
Making

Heuristics
Brand
Loyalty
Brand Inertia

Figure 4: Decision Making Approaches Diagram

In choosing a one-time transportation, first time consumers wouldnt spend a lot

of time to search for the best transportation since they just need a vehicle to get to their
destination safely and on time. Hence, customers engage in limited decision making
instead. The customers choose which brand they want to use based on their perception of
the quality of the services attributes. For Blue Bird in particular, the target passengers
would choose the taxi brands or transportation based on the degree of safety, price, and
time efficiency each transportation offers.
Returning customers may choose to repeatedly use the same brand due to habitual
decision making. Babin & Harris argues that with habitual decision making (sometimes
referred to as routine decision making), consumers generally do not seek information at
all when a problem is recognized (p. 219).

Consumers that have previously used Blue

Bird service may continue using Blue Bird to avoid the risks of using other
transportation. Habitual decision making may occur due to brand inertia or brand loyalty.

Brand Inertia or inertia loyalty occurs when repeated purchases are made by
consumers due to their spending pattern (BigDoor 2014). Customers who fall into this
bucket tend to purchase from a certain brand because it is easy to do, or its what they
have always done. (BigDoor 2014). Consumers may employ Blue Bird not because it is
the best taxi provider but because they have always used Blue Bird or because they refuse
to try other transportation.
If the customers have had pleasant experience with Blue Bird then they may
develop fondness towards Blue Bird which can lead to brand loyalty. Customers with
brand loyalty to Blue Bird would always prioritize Blue Bird when looking for
transportation and would rather wait rather than choosing other transportations (Babin &
Harris 2009).

5. Heuristics
Heuristics are mental short cuts that reduce the cognitive burden associated with decision
making (Shah & Oppenheimer, 2008, pp. 207-222). Heuristic simplifies and speeds up
consumers decision making process by choosing one or two significant attributes they need in a
product or service and ignore other attributes. The heuristics used by the Blue Birds consumers
are recognition and lexicographic heuristics.

5.1 Recognition heuristic

Consumers that utilize recognition heuristics will choose the taxi brand or public
transport that they know of. As Blue Bird is the most famous taxi provider in Jakarta,
consumers will likely to opt for Blue Bird over other less known taxi providers.

5.2 Lexicographic heuristic

Stafford (2014) stated that Lexicographic heuristic refers to when a consumer
chooses the best brand on the basis of its perceived, most important attribute. Consumers
select the most important attribute for them and pick the brand that offers the best
proposition for said attribute (Stafford 2014). For customers whose priority is finding a
budget friendly transportation, they would choose Transjakarta or public buses, whereas

consumers that put safety first would choose Blue Bird taxi. For consumers who are in a
hurry they might be forced to take whatever transportation thats ready for use at the time.

6. Situational Influences
Babin & Harris (2009) stated that situational influences are things that influence
consumers that are independent of enduring consumer, brand, or product characteristics.
Three classifications of situational influences are;

Figure 6: Situational circumstances that influence Blue Birds consumers

6.1 Time
The time of day, the time of year, and how much time consumers feel like they
have to shop also affects what they buy (Raymond & Tanner 2010, pp. 76-80). Used
under a Creative Commons Attribution 3.0 (http://creativecommons.org/licenses/by-ncsa/3.0/).
For customers that need to travel quickly, they would choose taxi or Ojek
(motorcycle ride) that are available everywhere. They wouldnt choose transportation
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that requires long waiting time such as Transjakarta or operates under a restricted
schedule like train.
Consumers use Blue Bird when they need to get to work in the morning and/or
when they go back home in the evening. Consumers also tend to choose to travel using
Blue Bird at night as they feel a sense of urgency to get home as the night progressed.
Blue Birds demand is also influenced by seasons. During the rainy season,
consumers are inclined to seek quick transportation that can shelter and protect them
from the rain.

6.2 Conditions
6.2.1 Weather
Consumers are more likely to use Blue Bird to shelter them from
Indonesias extreme heat or heavy rain.
6.2.2 Mental Budgeting
When consumers are in a tight budget, they would select a more
affordable alternative instead of using Blue Bird.
6.2.3 Occasion
When there is an important occasion that the customers have to get to,
they are likely to use Blue Birds services to get there on time and for conveniences
sake. They might also choose to travel with Blue Bird while with friends or relatives
to save cost.

7. Influence of Atmospherics
In consumer behavior, atmospherics refers to the emotional nature of an
environment or, more precisely, to the feelings created by the total aura of physical
attributes that comprise the physical environment (Babin & Harris 2009, p. 203).

7.1 Odor
Unlike other taxi brands that sometimes reek of cigarettes or other scents, Blue
Bird cars are well-maintained. They do not use any heavy fragrances and most of the
cars are odorless, though some cars may use subtle citrus fragrance. This is a good
approach as many people often detest strong fragrances. By only utilizing subtle to no
scent, consumers that have sensitive olfactory would not be disrupted.

7.2 Music
Blue Bird doesnt use any particular music for their cars. The drivers often turn
on the radio and ask the passengers which radio channel would they like. This affects
customers in both positive and negative ways as even though the passengers are free to
choose a radio channel that they like, the songs played on those channels may not suit the
consumers taste.

7.3 Drivers
While most of Blue Birds drivers are mostly polite and adept in navigating
through the streets, not all of them are reliable. Once in a while, consumers may
encounter rude drivers or ones that purposely take the longer road in order to get more
money. Hence, Blue Bird should train all the drivers better since rude and undependable
drivers negatively affect the consumers perception.

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7.4 Color

Figure 7: Blue Bird Group Logo (Voices of Leaders 2015)

As evident in their cars, uniforms, and logo, Blue Bird taxis primarily use blue
and white as their main colors. While most people neglect to care about the effects of
color, studies have shown that each color can invoke certain feelings.
Blue is often associated with calm, trust, reliability and intelligence while white
color promotes cleanliness, safety, and clarity (Precision Intermedia 2015). By utilizing
various shades of blue and white, Blue Bird has successfuly built a clean, dependable,
safe, and trustworthy image to the customers minds hence influencing their perception of
Blue Bird positively.

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8. Conclusion

To summarize, Blue Bird taxis provide a safe, comfortable, and quick transportation for
customers in exchange for money. However, consumers may also experience the loss of
opportunity of using their money and emotional expense. In choosing transportation, consumers
utilize rational and behavior decision making perspectives and engage in limited and habitual
decision making approaches. Consumers also use lexicographic and recognition heuristics when
making a quick decision. Situational influences that affect the customers decision the most are
time pressure, weather and mental budgeting.
Blue Bird taxis in general have delivered satisfactory transportation service, however
they need to ensure that all of the cars and staffs are maintained to meet Blue Birds high
standards. Consumers mostly prioritize price, readiness, and safety when looking for
transportation, while Blue Bird is considered as the safest taxi in Jakarta, it is also widely
acknowledged as one of the most expensive transportation. Thats why Blue Bird should
conduct occasional sales promotion by giving discounts for returning passengers or price
reduction during certain times in the day so that Blue Bird will be more appealing, especially to
consumers with a tight budget.
Furthermore, they should increase the number of their taxis so consumers can easily find
Blue Bird taxis anyplace and anytime. Constant improvement of service quality is also highly
encouraged so Blue Bird wouldnt lose against their competitors.

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