EXECUTIVE SUMMARY In this report, there are numerous factors which will help to analysis those factors which are involved in customer dissatisfaction from business which is a case study on Ryanair. It is important that all factors of customer dissatisfaction is been identified and various models would be included within detailed study. In today's world, customers of the company demanding for improved and advanced innovative technological changes within airline services which can satisfy current demand of its customer in relevant manner. Thus, the report will include different terms of customer satisfaction and requirement which helps to understand topic effectively.
TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 Research aim:..............................................................................................................................1 Research Objective:....................................................................................................................1 Research Questions:....................................................................................................................1 Rational:......................................................................................................................................1 Background of company:............................................................................................................1 LITERATURE REVIEW................................................................................................................2 Customer focus is the main element of success..........................................................................2 The role of social technology in business performance..............................................................3 Factors involved in customer dissatisfaction..............................................................................4 METHODOLOGY..........................................................................................................................6 ANALYSIS......................................................................................................................................7 Concept of customer dissatisfaction............................................................................................7 Relationships between customer satisfaction, retention and profit.............................................8 Factor of customer dissatisfaction within Ryanair......................................................................9 DISCUSSION................................................................................................................................11 CONCLUSION..............................................................................................................................13 RECOMMENDATIONS...............................................................................................................14 REFERENCES..............................................................................................................................15
TABLE OF FIGURES Figure 1; Customer satisfaction model............................................................................................3 Figure 2: Gap model........................................................................................................................5 Figure 3: Customer dissatisfaction model.......................................................................................9 Figure 4: Customer buying process...............................................................................................10 Figure 5: Factor of customer dissatisfaction within Ryanair.........................................................11 Figure 6: Behaviour of customers..................................................................................................13
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INTRODUCTION Research aim: To analysis the factors of customer dissatisfaction from company: A study on Ryanair. Research Objective: ď‚·To study about meaning and causes of customer dissatisfaction in Ryanair. ď‚·To analysis factors of customer dissatisfaction from Ryanair ď‚·To examine various models related to dissatisfaction of customer within company Research Questions: 1.What is the meaning of customer dissatisfaction in Ryanair? 2.What are the factors due to which customers remain dissatisfied from Ryanair? 3.What are the various models and theories related to dissatisfaction of customer? Rational: As at in recent years Ryanair is witnessing many difficulties in retaining customers even many of them are dissatisfied with company which is causing loss to it. Here it becomes necessary and important that research is been conducted on this particular topic of what are those factors which are leading to dissatisfaction of customers. It is important that all factors of customer dissatisfaction is been identified and various models would be included within detailed study (Cassandra and Wong, 2014). Making customers happy, satisfied and retained within company so that they are loyal with firm are some important elements which management need to consider. If company is not making any efforts in channelizing their impact on buying decision of customers and helping them to purchase goods and services. Background of company: Ryanair is an Irish airline company which is serving the whole area of Europe having operational foundation in London and Dublin. The company is operating with more than 400 aircraft and this was once the largest airline company having the highest number of passengers. Ryanair had its rapid expansion since the time it came into existence in year 1984 with the successofhavinglowcostairline.Butsoonmanyproblemthoserelatedtocompany, management and employee relation and most importantly its customer handling procedure began to come into highlights. So in this research paper study would be done on what are the various issues related to Ryanair, why customers are dissatisfied with company and what models could we apply to find out dissatisfaction of customer with Ryanair. 1
LITERATURE REVIEW Customer focus is the main element of success According Chaffey, (2015) Learning review of this research that, customer satisfaction is one of the crucial part for each organisation which must be taken into account by management professionals of company. In terms of airline industry, customer satisfaction is most necessary thing for each customers on which they can frequent buy industrial products and services again and again. However, customer satisfaction level must be focused by each organisational administration in respect to attaining desired objectives and goals of firm. In this context, customer can return any product id they are not happy with it. Customer satisfaction is a crucial concept for customer success professionals to understand and live by and its actually about more than a money-back guarantee. Customer satisfaction can be measured by quantifying degree to which a customer is happy with a product, services or experiences. Customer satisfaction review about how customer of business show their attitudes about particular product and services. Howsoever, as per DaSilva and Trkman, (2014) it has stated that, airline industry one of the emerging industry in UK which is serving various types of aviation and transportation or travelling facilities at the industrial plat form effectively. Figure1; Customer satisfaction model. [Source: Siu, Zhang and Kwan, 2014] 2
So corporation require making sure that, by provision of various aviation services, their customer is getting satisfied. Maintain customer satisfaction level; in business is important for each organisation to growing well in the industry, so management department of the company ensure that, provision of all aviation facilities of Ryanair airline company must be fair and appropriate which have potential to satisfy their each customer needs within the industry efficiently. In UK, facilities demands of airline services raising up equivalent and consumption of it within current marketplace. Falling down of provision of various modern and innovative airline facilities at workplace being cause of customer dissatisfaction in the company. Numbers of organisations are working in industry which generating more competition in the marketplace. On the other hand, being essential for the company to maintain customer satisfaction level in company according to customer demand in current market. According to many articles suggested by authors, they have stated that, airline industry require to delivering various types of accommodation and hospitality facilities should be provided by them in order to boosting up customer satisfaction level and market share of the industry as well. So it being essential for the organisation is to manage all functionalities of the business as per company standard on which its customer does belief, that must be taken into account by them. The role of social technology in business performance According Ferraro and Briody, (2013) it has stated that, dissatisfaction level of customer make negative impact upon organisational performance in the industry. Many caused can be find outbyprofessionalsinordertoidentificationofthecausesbehindthegenerationof dissatisfaction among existing customer of the industry. Some important factors which must be taken into account by its professionals which is, poor customer service provision, rude staff, no keeping promises, not listening to customers, over-costing of each facilities, low quality of product and services, inaccessibilities etc. so all these mentioned factor has been considered as majorprospectswhichisbeingcauseofdissatisfactionlevelincrementwithinbusiness environment. On the other side, from many surveys, it has stated that, loosing customer satisfaction level being cause of falling performance and profitability of business in industry. In caseofRyanaircompany,itcurrentlyfacingwiderangeofissuesconcerningabout dissatisfaction level of its existing customer in industry. On the other side, as per Gloor, (2012) it was examined that, dissatisfaction level of customers can damage reputation of business in 3
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industry and decrease the value of its quality of airline services within marketplace. However, dissatisfaction of its customer may affect the profitability and performance of business within current marketplace, so organisation may lose its existing employees and customers in industry on the basis they are running business sufficiently. Figure2: Gap model [Source: The Customer Service Gap Model, 2018] On the other hand, many articles published by different authors has stated that, business can repair their damages by improving within its existing aviation services within innovative ways. In today's world, customers of the company demanding for improved and advanced innovative technological changes within airline services which can satisfy current demand of its customer in relevant manner. So it being necessary for organisational professionals in context of provision of various airline accommodation services in effective ways. So all above factors which making effect customer satisfaction level should be considered by professionals in appropriate form in order to reduce negative impact of dissatisfaction level of their existing customers. Factors involved in customer dissatisfaction As per Protcko and Dornberger, (2014) it was stated that, examination of various models related to dissatisfaction of customer within the company. This has been suggested variety of 4
different models related to caused and affection of dissatisfaction level upon the business and how to make improvement within them. Gap model has been suggested by author which defines that, today's airline industrial consumers has become increasingly demanding within various airline accommodation facilities within the company. It was identified that, organisation require making changes within its aviation current facilities as per modern changes, so they will be able to satisfy their customer in better manner. According to the model, they has said that, identify the gap between customer expectation and actual services provided at different stages of service delivery, which assist business professionals for identification of actual performance potential of the business services' ion industry. On other hand, according to Wells, (2013.) it has stated that, variety of model can be utilised by its administration in terms of recognise the actual level of performance and quality of its services from its competitors in industry. However, it was identified that, customer satisfaction level can be increased by listening contemporary issues which has faced by them. Improvement within existing services as per modern demand and innovation is necessary for company to maintain satisfaction level. Several types of attractive changes and operational practices can be adopted by business professionals in case of boosting up customer response towards its specific airline services. In this context, several authors has saidthat,implementationoftechnologicaladvancementandinnovativechangeswithin organisational structure can assist the business to betterment within performance of business ion industry efficiently. From the survey, it was also recognised that, understanding of each customer's needs or expectation and maintain the level of standard of its aviation facilities according to modern world demand in the industry many reduce the numbers of dissatisfied consumers of company in current marketplace. All accommodation and hospitality services provided by enterprise must be in relevant manner and knowing the customer demand and needs from organisation efficiently can help the business to implementation of strategies by which dissatisfaction level can be reduced within business environment efficiently (Juric, Smith and Wilks, 2015). It is analysed by many articles, there is a certain connection between customer services and business that products and services offered by firm in the market should be effective in order to satisfy consumer needs and preferences. This will help business to improve profitability and production. In addition to this, many airlines businesses are offering different services for customers as they are divided in three 5
parts rich, average and lower class. The sections are also different in planes for each category customer. METHODOLOGY Research philosophy:It can be said that there are different methodological approaches are availableforresearchersinordertodetermineresearchobjectivesandaimeffectively. Qualitative and quantitative both approaches are effective in order to assess the factors due to which customers remain dissatisfied. Data collection method:Data collection methods such as secondary and primary data collection are used by researcher in order to determine factors causing dissatisfaction in business. In this, secondary data collection method is used to evaluate and collect information regarding topic. Both are effective approaches that helps to evaluate and determine information and data regarding topic effectively. Data collection tools:These are tools are effective that it helps to determine actual position of firm in order to assess factors from which customers remains dissatisfied about services, products or any other thing. In respect to this, a group of customers is taken which will help to evaluate effectiveness of customer satisfaction services. Research approach:Inductive and deductive two approaches are mostly used by researcher in order to acquire results from outcomes and observations that helps to improve and develop search pattern. The approach will help to create meanings and set of data and information collection to determine factors and theories related to customer dissatisfaction. Research design:Exploratory research is used in this project in order to explore research question in order to assess the factors due to which customers remain dissatisfied. The approach will help businesses to identify issues which are not yet defined effectively. This will also help by providing a clear understanding of topic. Sampling:Probabilistic and non-probabilistic are normally two methods of sampling. In order to determine factors influence customer satisfaction in business. According to this method, every member from the population usually ninth is taken to analyse and determine actual impact of services and products offered by business and which also affect customer satisfaction and profitability. This will also help to provide clear and equal chance as well as opportunities for employees. 6
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Ethical considerations:Ethical considerations are the most crucial aspect of research that affect operational activities of researchers. Ethical issues are one of them such as insufficient data and information regarding customers or any other member in the team. Low involvement of senior authorities and board members which also reduce the active involvement of employees. The main objective is to determine the factors due to which customers remain dissatisfied and lead towards decreasing profitability and production. ANALYSIS Concept of customer dissatisfaction Consumer satisfaction is defined to as behaviour of customer which would be in regard to acquiring goods or service of company and how or why they are using that. This would also be evolving around post purchase judgment which is due to choice of customer on specified purchase of good and then consuming that (Siu, Zhang and Kwan, 2014). If after their purchase and use of those goods or availing that service customers are complaining about goods and service then this would be included into dissatisfaction of customers. There are 5 behaviour of customers which is included into their complaining nature like that of dealing with the retailer, avoiding to purchase from that retailer and suggesting friends to do so, taking strict actions against them, simply boycotting whole firm and purchasing goods with other company. There are many reasons as to why consumer is behaving in this manner of not using products of company or purchasing that of other competitive firm. Price of product, its quality, quantity, customer service and why of company handling customer would be all included factors as studied in above literature review part. 7
Figure3: Customer dissatisfaction model. [Source: Juric, Smith and Wilks, 2015] Relationships between customer satisfaction, retention and profit There are important terms which are been included within satisfaction of customer like that of retention and company’s profit section as well (Akamavi, Mohamed and Xu, 2015). There is strong relationship between satisfactions of customer their retention and then profit of company which tells that if one increases there would be increase in another. But there is inverse relationship between dissatisfaction of customer and profits of company or customer’s retention. If customer is highly dissatisfied by company then surely they would not be retained within firm which means that they are switching from firm causing loss of profits. Ryanair is having high number of dissatisfied customers within Europe which is not helping company to retain their customers which is directly impacting the profits of company. There are many instances related to organisation that are pointing out that into Ryanair customers are highly dissatisfied with management or staff of company (Juric, Smith and Wilks, 2015). Company is following its rigorous strategies related to controlling of its cost which is thus allowing them to keep their price low but this seems not regulating with customers. As in way of lowering down their cost firm is started involved into cheap price of their products and 8
cancellation of flights on daily bases are very common problem. Company is having very strong brand image within market as it is having tendency of timely departure or low fare but the increased number of cancellation of flights would be big reason of dissatisfied customer. Figure4: Customer buying process [Source:Ghazali, Nguyen and Mohd-Any, 2016] However, instance show that company is hiring people on base of third party agencies which is one of the basic reason as to why airlines is controlling their cost. But if the staff members of company refused to cooperate with company which they are doing many a times by calling off for strike (Kalaiarasan, Appannan and Doraisamy, 2015). All these things would be revolving around loyalty of customers which means that for how much time they are been involved with company having positive attitude on products of company. Factor of customer dissatisfaction within Ryanair The factors or causes of customer lower amount of satisfaction within Ryanair would be many points assembling together to form their leaving products or company and going to other. Customer being the vital part of inviting profits for company so there is need to identify their need and then fulfilling them as possible. The main issue with Ryanair could be included as due to lower down of cost company is tend to attract higher number of customers are not able to 9
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serve them quality of products and services (Kefallonitis, 2015). Ryanair is having limited amount of resource as studied in above literature review part and these all are creating dissatisfaction among company’s customers. As it was analysed that it becomes impossible for company to identify and fulfil all needs and wants of customers but they could be focusing on standardising the quality of service which they are providing to customers. Figure5: Factor of customer dissatisfaction within Ryanair [Source: Factor of customer dissatisfaction within Ryanair] The number of areas of dissatisfaction among customers within airline sector creating to negative image in market and on part of customers as well. But they should be focusing on how to handle complain and behaviour of customers so that they could be creating positive image in minds of customers (Ghazali, Nguyen and Mohd-Any, 2016). Putting the aim of company in providing low cost, lower price, higher number of consumers would be leading to decrease in quality of service. This is the main and biggest problem which company is facing at present time but this could be solved if they are having their interest in resolving issues and problems faced by customers. 10
DISCUSSION The business should consider various factors that helps to determine what are the necessary factors that helps to maintain and retain customer satisfaction in order to improve profitability and production. There are many researchers provided an analysis that better and quality services are required by firm in order to increase consumer satisfaction and loyalty. As per the discussion, the key is to provide quality services in airline so that customers belongs to the rich families can enjoy their journey and also satisfied with the needs. There are different factors of customer dissatisfaction in business such as high cost, quality, services and extra charges. There are a lot of customers who cannot afford airline services due to the extra charges. The comparison is easy to make between consumer expectation and the expectation to measure business performance (Kalaiarasan, Appannan and Doraisamy, 2015). According to the authors in the part of literature review customer services are related to the quality and effectiveness of services and products offered by firm in order to satisfy their needs and requirements. It can be said from the discussion made on customer satisfaction services that a customer is satisfied when he or she found all their requirements in a positive manner and make smile on their faces. There are different things which should be considered by businesses in order to manage and control customer satisfaction as well as loyalty the helps to increase profitability and production effectively. 11
Figure6: Behaviour of customers [Source:Cassandra and Wong, 2014] There are many areas in airlines where faulty process is leading to dissatisfaction among the customers which create a negative image of the company. Complain handling is the most important part for a service industry. If the complaint of the customer is not effectively handle than the customers feel that nothing can be done so they avoid travelling with the company. This will reduce the business strength towards achieving goals and objectives of customer satisfaction as well as loyalty efficiently. According to many authors, they have stated that, airline industry require to delivering various types of accommodation and hospitality facilities should be provided by them in order to boosting up customer satisfaction level and market share of the industry as well. This will help to enhance business profitability and production effectively. It also creates a negative impact on consumer minds regarding services and products offered by them in the airline (Kefallonitis, 2015). It is analysed that a happy customer tells at least three of his or her friends, family members or any other in terms of positive or negative interaction with services. Effective services are the key of business success. It is concluded in the above section of literature review that customer needs, requirements and preferences changes with time, trend and culture in a specific time period. With the change in customer satisfaction needs, the business 12
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also should try to manage and control its services accordingly and effectively. There is a high involvement of decisions made by management and firm in order to improve and develop business process and profitability that helps to maintain customer behaviour positively towards brand. Expectation of customer is the key of providing excellent services through effective understanding of expectation and requirements of customers. It also creates a negative impact on customer minds which affect the business operational activities. In addition to this, it can be said that customers are the most crucial as well as important part of firm that there is a huge change observed in these days in customer services and products. The problem with the Ryan Air is that due to its low cost the company is attracting the lots of customers (Cassandra and Wong, 2014). The company is not able to provide quality service to its entire customer because of the limitation of the company resources. This create dissatisfaction among the customers of the business. In addition to this, there are a lot of customers who always think to provide reviews to business in order to make necessary changes according to their perception. This will help to make changes in process or services that helps to manage and control customer satisfaction as well as loyalty. There are various models and theories related to dissatisfaction of customer which helps to determine factors causing dissatisfaction in consumers such as low cost, services, products, equipments and other important factors. There are different approaches and theories analysed in order to assess the things affect customer’s satisfaction and decrease business profitability and production effectively. Secondary data collection techniques are used by business in order to collect some information regarding topic that helps to maximise profits and productivity. CONCLUSION It can be concluded from the above analysis and discussion that there are some important factors which should be considered by business in order to manage customer satisfaction which is the main key for business success effectively.Customer satisfaction can be measured by quantifying degree to which a customer is happy with a product, services or experiences. Some important factors which must be taken into account by its professionals which is, poor customer service provision, rude staff, no keeping promises, not listening to customers, over-costing of each facilities, low quality of product and services, inaccessibilities etc. Several types of attractive changes and operational practices can be adopted by business professionals in case of boosting up customer response towards its specific airline services. Gap model has been 13
suggested by author which defines that, today'sairline industrial consumers has become increasingly demanding within various airline accommodation facilities within the company. The above analysis provide information regarding customer satisfaction factors which helps to determine factors which affect satisfaction of customer and should be considered by businesses in order to increase profitability and production. It is concluded in the above section of literature review that customer needs, requirements and preferences changes with time, trend and culture in a specific time period. It also creates a negative impact on customer minds which affect the business operational activities. RECOMMENDATIONS It can be recommended that Ray-nair should adopt pricing strategy in order to increase prices of expensive services that helps to attract rich people effectively. There are many pricing strategies which will help to manage and control prices of various resources as well as services that helps to increase profitability and production. Customer satisfaction is the main key of business success that there should be some effective plans and strategies formulated by management in order to enhance effectiveness of operational activities to enhance customer satisfaction and loyalty with brand. Some important factors which must be taken into account by its professionals which is, poor customer service provision, rude staff, no keeping promises, not listening to customers, over-costing of each facilities, low quality of product and services, inaccessibilities etc. this will reduce production process effectiveness as well as increase business issues that management should interpret with customers as well as employees to reduce complaint factors from business side. Thus, it can be said that there are so many things which should be considered by firm in order to manage and maintain customer satisfaction as well as profitability. 14
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