Business Research Methods Project

LCA vs FSA
 Low Cost Airlines

Airline
Industry
Full Service Airlines
 Low fares

Strict rules of use or not to be missed, especially for the cheapest tickets.

Expenses

Secondary Airports

Characteristics No loyalty program

of Low cost No airport lounges

airlines Single class cabins

Online booking

No commercial transaction

Restricted interline agreements make the use of multiple stopovers with different carriers less
convenient.
 Generally higher fares

Special offers for companies, full discounts and itinerary offers

Other services included

Characteristics More extensive routes
of Full Service Airport lounges
Airlines Loyalty Programs

Alliances

Multi-class cabins
 • To collect data and information to segment the
Statement of customers on their activities and behavior in
order to strategize marketing plans for the
the Problem same.
 • Formulate Marketing strategies for the various
Research profiles of LCA and FSA
Question
 • To cluster people into groups of similar
Research preferences so as to formulate marketing
strategies
Objective
Information Collection

Factors, a passenger will consider before booking a flight ticket

Decision making factors while selecting an airline

How perception of flight prices affects the choice.

How passengers will react to the changes in ticket price

Additional service playing a crucial role in decision making

Variation in preferences when the factors of travelling change

Does preferences change with traveling time

 Data collection
Secondary Primary

• Focus group discussion • Questionnaire

• Interviews
• Extensive research of Online
platforms Scaling Technique

• Published research reports • Five-point Likert scale

 Travel time
Instant check-In
Ticket Prices
Questionnaire
Waiting rooms
Development
Boarding and Time to lift-off
Staff attitude
Pay for Service
Focus Group Discussion
• Have you travelled by flight?
• What was the purpose of your travel?
• What was the duration of the flight?
• Who booked a flight for you?
• How did you book a ticket?
• Why did you choose that booking channel?
• How many flight options did you consider?
• Which brand did you choose? Why?
• Did you ever shift to a different brand?
• Why did you shift to that?
• What time did you choose to travel? Why?
• Did you wait for the right time to book a flight?
• What according to you is the right time to book a flight?
• What is the average wait time for a check-in baggage?
• What is the time taken to board a flight?
• How is the service provided by the airline airport staff?
• Did you ever cancel a flight?
• Any bad experiences you had in flight?
• How were they addressed?
• Was there any time where their staff went out of the way
to provide services?
Sampling Fieldwork

 Students  Focus group discussions

 Business travelers  Detailed interviews
 Tourists  TAPMI student center

 Airline Cabin crew  End Point Park

 Chefs  Questionnaire

 Agriculture students  Friends

 Family members
 Colleagues
 Sample size - 100
 Students of TAPMI
Cluster Analysis
1. Formulate the problem
2. Select a distance measure
3. Selecting a clustering procedure
4. Decide on the number of clusters
5. Interpret and profile clusters
6. Access the validity of clustering
Results
Proximity Matrix
Cluster Formation
Interpretation

Airport Boarding
Travel Instant Ticket Staff Pay for Consumer
Cluster waiting and Time
Time Check-In Prices Attitude Service Behaviour
rooms to Lift-off

1 4.63 4.73 4.13 4.60 4.83 4.80 3.86 Service Quality

2 4.39 4.20 4.46 3.29 3.93 4.41 2.80 Travellers

3 4.10 3.83 4.91 3.13 3.78 3.70 1.00 Price Sensitive

Conclusion and
Recommendations
 • Prefers FSA
Service • Satisfactory service
Quality • Complaints as an improvement tool
Customers • Marketing expenditure
 • Prefers LCA

Price Sensitive • Getting the benefit of competition

Customers • Aim: Cost Reduction

• Compete at service quality
 • Switches between FSA and LCA

Indifferent • Additional WTP for additional service

Travellers • Additional Perks

• Low turnaround time
• Differentiating factors