Customer perceived value in airline industry

The services are focused on meeting the expectations of the customers. The consumer is more likely to purchase the services of an airline if the airline meets the expectation of the consumer. Customer perceived value refers to the subjective construct inherent in the customers which shows the perceived value of the tradeoffs between the benefits received from a service offered and sacrifices made for the service or product. Benefits are therefore benefits are the essence of the perceived value (Kotler, 2000). This paper will utilize the Sanchez model to identify the customer perceived value in the airline industry. They would always assess the price fairness of the services or products offered to them by the airline. Price sacrifice There are effects of price bundling on perceived value and providing an all-inclusive package even if the monetary outlay is high will increase perceptions of value for first-time consumers Emotional Benefits Emotional benefits arise from giving customers satisfaction with customized and personalized in-flight services such as entertainment and meals Time sacrifices Customers will prefer companies that will offer benefits that match the sacrifices they make in queuing in check-in counter, waiting in the departure hall and the time they use to travel to the airports.

Customers will always value time and will switch to airlines with more punctuality. Social Benefits The airline customers will enjoy the traveling experience in the company of their family and friends. Customers also prefer personal interactions from flight attendants, especially individual attention. Also keeping prices at reasonable prices and in alignment with the services provided to the airline class chosen by the customer. Social benefits come through customized offerings from the airline company. Customization benefits can include customers’ perception of preferential treatment, being given extra attention or personal recognition and the special services that are not available from other airliners. Passengers’ satisfaction includes the various type of services which are related to the airline industry. Airline consumers perceive services such as online check-in service, ground handling service and the quality of food as beneficial to them and would likely switch to other airlines if these services are considered not quality or fail to satisfy customers.

Sacrifices The primary sacrifice the airline consumers make is the cost that comes with booking a flight. Price is a major influencer of the perceived value of airline consumers. When customers make monetary sacrifices they expect to get reasonably high-quality services. They will perceive to have gotten value if they will get more benefits which might consist of either monetary or non-monetary benefits more than the costs they pay for flights. Moreover, airline consumers are involved in time sacrifices when booking flights, waiting in the check-ins queues and traveling to the airport. According to Buttle (2009), a value proposition is a statement that is on using organization’s market activities to bring value to its customers and create a significant differential in customer’s decision-making process to purchase a company’s offering instead of the competitor’s.

Piercy model can be used in identifying the value proposition of Malaysian and Singapore airlines. In the identification of value propositions, it is imperative to ensure that the price, products or services and the place constructs of the marketing mix are utilized. This helps in differentiating the value propositions of companies particularly in the same industry by looking at the products or services they offer and the prices they use in offering these services. Both Malaysian Airlines and Singapore Airlines have the same mission of being the best airline in the Asian region, they also compete for the same target segment. Providing convenience and comfort prior, during and after flights 4. Prestige as a national courier. Frequent flyer programs for loyal customers.

Good customer relation. Competitive “safety, comfort and punctuality air travel” Malaysian Airlines value proposition statement Malaysian airlines have been in the leading edge when it comes to customer experience. The flight attendants have a strict adherence to a set of rules but can show flexibility in providing personalized services. Creating values for their customers desires that Singapore Airlines maintain customer satisfaction and credibility. This is the way the company keeps hold of the market share. SIA has developed a comprehensive system for handling customer complaints. SIA has created a reputation by identifying the real value for their customers and building relationships with the right market segment. High-quality experience for customers comes through identifying the needs of market-segment. Malaysian Airlines must ensure that it is globally competitive since its target customers are international passengers.

Market differentiation through high-quality freight services as well as in-flight services will help rebrand the image and attract passengers. Also, the products must be differentiated in the market, acquiring new fleet and utilization of special lounges internationally will help the company to gain competitive advantage. Malaysia Airlines have a huge gap between what customers expect of them and what is delivered to them in terms of value (Arif Kamisan & King, 2013). Elements Offer of purchase Suggested Business Actions Price competitive Slash prices to be competitively advantaged as compared to other airlines Feature Personalized/Customized Provide traveling passengers with a customized experience for convenience. Also providing personalized services and paying individual attention to passengers Quality Excellent Customer services must be excellent. The in-flight services, freight services and products such as passenger seats and meals must be of high-quality Support Standard Enhance the customer relationship through support services such as after-flight emails Availability Universal Leverage the global competitiveness by exploring exhaustively local and international markets Reputation Respected Regain the airline’s reputation through excellent services and ensuring that costs are lowered to improve financial stature.

Implementation of the new value proposition. The implementation of the proposed business actions are the constructs inherent in the new value proposition, it is imperative that strategies are adopted for internal and external marketing (Piercey, 1995). In an external implementation, marketing is a crucial tool in winning the faith of the customers. The company must focus on rebranding its image to represent the excellence of the services that they provide for its customers (Kotler, 2000) Malaysian airlines must ensure that the organizational culture conforms to the strategies of financial sustainability (Ravanfar, 2015). This ensures that the adopted business actions are supported from within the company. Malaysian Airlines should join with other alliances to ensure that in case of inconveniences such as rescheduling and flight delays, they are able to create value for their customers (Bazargan et al, 2015).