Factors Influencing Purchase Decision in Low-Cost Airline Industry

Ryanair airline offers low-cost services without compromising quality, providing customers with a valuable offering that meets their needs and preferences. With the ability to compare services online, customers can choose the best option that fits their budget and expectations. The company's marketing mix strategies focus on creating a positive perception among consumers by providing excellent service delivery, handling post-purchase queries effectively, and accommodating customers with different income levels. As a result, Ryanair is able to retain customers long-term and build brand loyalty.

Running Head: RYNAIR AIRLINE SERVICES 1
Ryanair Airline Services
Name of student
Institution affiliation
Date of submission

RYANAIR AIRLINE SERVICES 2
Table of Contents
Introduction......................................................................................................................................3
Marketing Mix Framework..............................................................................................................4
Consumer Definition + Ryan air’s consumer..................................................................................6
Decision Making Process................................................................................................................7
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

RYANAIR AIRLINE SERVICES 3
INTRODUCTION
The “Ryanair” is one of the leading Irish airlines that emphasizes on offering low cost
services to its clients. The company was established in 1985 with combined efforts of Tony and
Christy Ryan. The organization was named by considering surname of both the partners. Within
one year of operations, the company applied for a license to fly to London. It has been noticed by
the Ryanair in 1985 that 800, 000 passengers were travelling to London through Aer Lingus. The
survey helped the organization to start a flight for London Luton Airport. The move had resulted
in offering the tough competition for Aer Lingus. In response to this challenge Aer Lingus has
been forced to reduce their high fare prices and therefore this force/push become the first price
fare war in Europe and responsible for that was Ryanair company and its central focus on cost
reduction. Since the 1990s Ryanair applies southwest low-cost business model and has become
European’s first and main developer of low-cost fare Airline Company. The appearance of a
low-cost business model was first introduced in the beginning of 1970’s by Southwest in the
United States. In addition to it by applying the low-cost business model Ryanair gives its
customers opportunity to regularly visit their friends and families (Mason, 2001).
Nowadays the appearance of low-cost carriers has totally changed the air passenger
transport industry. In order to understand Ryanair’s services, price, distribution channels and
promotional strategies there is need to appreciate the way in which the company has used
marketing stimuli in a way that has robustly supported the consumers’ decision making process.
Ryanair mainly focuses on offering services at low prices. Henceforth, the low operations are
considered to provide the organization an edge over its competitors. The report proposed
herewith emphasizes on analyzing the case for Ryanair on grounds of Marketing Mix strategies,
Consumers’ perceptions and decision making process. In the above case study, we will first
discuss the literature on marketing stimuli and consumers’ decision making and introduce
Maslow’s Hierarchy of Needs. These models will work as a framework for present analysis
(Mason, 2001). Then we will present Ryanair’s sells services, price, distribution channels and
promotional strategies, focusing in particular on the company’s consumers’ characteristics and
behavior. Through the propose framework, we will then analyze the range of influences that
make the Ryanair strategy successful in drawing consumers to the final purchase (Creaton,
2014). We will show that Ryanair manages to target a wide range of customers’ needs
(according to the Maslow’s model) and is, for example, coherent with strong value safety needs

RYANAIR AIRLINE SERVICES 4
and self-actualization. The case analysis helps in identifying ways through which Ryanair has
been able to occupy the prominent position in consumers’ mind.
MARKETING MIX FRAMEWORK
Nowadays a lot more companies tend to used Marketing Mix in order to outspread their
marketing strategy in most efficient way (Mason, 2001). The framework about Marketing Mix
and Four Ps (product, price, promotion and place) was first anticipated by Jerome McCarthy in
1960s. According to McCarthy, marketers can set up a comprehensive marketing plan and
therefore to improve overall companies’ performance in more simple and visible way by using
the right combination of variables. There exists a set of controllable variables can be very useful
for the company to affect the buyer’s response because these variables help a company to
established a unique selling point as well as brand image thus Ryanair’s company do.
Ryanair company unique selling point and brand image is definitely “Cheap and
Cheerful”. Companies applying very successful Marketing Mix framework in more provocative
way by providing product and services on almost unbeatable low prices as well as make certain
destinations available, work in cooperation with different rental and business hotels (Buhalis,
2004). By doing this Ryanair keeps the costs lower which highlight them as a company from
other rivals and therefore make their products and services more affordable for the customer as
well as helped company gain better profit.
The price is one of the most important and sensual marketing instrument in both
directions provider and customer and therefore Ryanair use this instrument very successful by
providing to the customers’ lowest fare cost in the industry and confirm the company name as
cost leadership (Buhalis, 2004). Evidence of this can be found on companies’ web site where
there is a motto stating that “Ryanair lowest fare guarantee or we pay you double the difference”.
This motto confirms once again the cost leadership reputation of the company and at the same
time send message to the customer that there is nothing cheaper than us on the industry on a
qualifying route with another airline. Or in other words we can take you where you want for less
than you think. The Ryanair’s strategy to offer airline services at low price helps the organization
in capturing large number of customers. It is seen that few years back, consumers’ tends to
consider that airline services as luxurious offering. Henceforth, the organization were unable to
capture demand of customers falling into middle-class category. It is with low-price offering that

RYANAIR AIRLINE SERVICES 5
the consumers’ perceptions change and demand for airline services has been increased. The
Ryanair has captured a leading position in consumers’ mind for low-cost airline services.
In terms of place (distribution channels) most of the Ryanair’s flight are operating from
secondary airports which refer to more variety on destination options because those airports are
less busy which mean that the aircraft can turn around more quickly. Ryanair does not use travel
agencies to sell their ticket, the distributions of the ticket is upon Ryanair web site which save for
the company agency commissions and refer for more easy way for the customer to use their
services (Calder, 2006). In present era, consumers hardly find time to locate agencies and
platforms where tickets are sold. The introduction of World Wide Web has provided an
opportunity for businesses to reduce distances required to reach the customers. The Ryan air
allows consumers to communicate on online portal. This in turn provides an ease to consumers’
for placing enquiries, booking tickets, making payments and availing services. Further,
consumers are highly glad to have an access to services for 24 * 7. The online distribution
network helps the organization to attract large number of customers across the globe.
In terms of promotions Ryanair does not spend too much because most of the promotions
and adverts are done through their own employees very good example of this is company’s CEO
Michael O’Leary. Company’s CEO often appear to the media with his off-beat speech in one of
which he said that Ryanair will charge its customers for using the toilet on board but later on just
explained that this was very efficient way to attract the customer attention (Shaw, 2011). In
addition to this Ryanair do not hire an advertising agency and if there is any advert is normally a
simple one remaining to the customers that company exist and provide low cost fares and
services. The organization’s strategy to emphasize on internal departments for advertising has
captured consumers’ attention. The increasing awareness leads consumer to feel a sense of
belongings for the organization who strives to invest every single penny with the utmost care.
The consumers’ perceived that “Ryanair” as an airline business is working towards provide
quality services at the low price. Further, every promotional campaign framed by the
organization to create awareness capture the large degree of consumer’s attention.
In 1981 the original Marketing Mix principles has been extended by Booms and Bitner
which added three new elements (process, people and physical evidence) to the existing Four Ps
principles and by doing that they allowed marketers to include and concentrated more on
products and services which are intangible (Shaw, 2011). In terms of Process the firm allows

RYANAIR AIRLINE SERVICES 6
online check which is easy to book, pay, and access. The mode allows no additional charges as
instructions are clear. Such an approach save time for the customer and make company look
environmentally friendly. Customers can select a prefer seat for additional charge, bag options,
fast turnaround time due to secondary airports use. The firm doesn’t withdrawn value from its
customers just passed down the cost to it.
The process, people and physical evidence are considered to be the most important
marketing mix elements for airline industry. Customers are highly impressed by an
environmental friendly and time saving approach that Ryanair has adopted to deliver the
services. Further, the high level of hostility make consumers’ feel connected to the business unit.
The way Ryan air designed its flights that provides a sense of luxury to customers at affordable
proves. It can be said that Ryanair in all ways satisfies demand of target consumers and gained a
positive brand image.
CONSUMER DEFINITION + RYAN AIR’S CONSUMER
The company’s marketing mix gives the customers the best combination for their service
delivery. Such ensures that the customers are satisfied and they remain loyal to the firm due to
the exemplary services provided. It has to be noted that the low cost services does not mean that
the airline sacrifices the good quality of its services but that is maintained (Shaw, 2011).
Consumers are more willing to transact business with the airline because they are getting value
for their money and the firm is sensitive to their needs (Mack, 2016). The firm gives the best
option for individuals with less income but who need to travel to various destinations. Young
individuals with less income for instance may consider the services of the airline.
The consumer is individual or household who buy goods and services for their own
consumption. Consumer behavior it’s a mental process including beliefs, emotions, ideas,
imaginations and etc.as well as ability to learn and experience new things. Consumer behavior is
driven by the motivation of individual to explore and own goods and services (Alamdari &
Fagan, 2005). The best example of why consumer need and look for different product and
services is Maslow’s Hierarchy of Needs whereby he explains that every individual is motivate
by five main factors/needs which are as follows:
 Physiological needs – breathing, eating, sleeping and etc.
 Safety needs- security of our jobs, home, health, morality, family

RYANAIR AIRLINE SERVICES 7
 Social needs – love, belongings, culture, friends, family
 Esteem needs- confidence, achievement, respect by others, respect of others
 Self-actualization- morality, creativity, self-fulfilled, acceptance
Ryanair Company is very concentrate on self-actualization and safety needs of consumer.
An example of that is the thirty-one no incident experience that Ryanair provide to its
consumers. In addition to it we can clearly state that everybody prefers to have save trip rather
than traveling first class with glass of champagne with company which have more than three
incidents per year. Buyer behavior is important to treat everybody individually and depended on
its personal circumstances. Therefore, because is about consumer companies need to concentrate
on Maslow’s Hierarchy of Needs (Alamdari & Fagan, 2005). Previous studies show that there
are different types of consumer’s value orientations and there are driven by different types of
needs and beliefs. The needs will cut across traditional, materialist, Hedonism, Post-materialism
and post-modernism:
Ryanair’s airline price is sensitive to customers thus people with low income may
consider using the services of the airline. It means that the company considers all the consumers
and has something for everyone. There is more freedom to the customer needs and preferences
whereby they may pay extra for services like, drinks, luggage and foodstuffs. The company is
more considerate to weekend travelers and families that travel with their kids thus they tailor
their services according to their needs. Business people can comfortably use the services of the
flight to transact their business activities and operations.
DECISION MAKING PROCESS
According to Engel, Kollatt and Blacwell (2005) CDP Model, consumer is going through
a five step decision making process. At consumer level, it is through evaluation of needs and
means to satisfy the needs that purchase decision is made by consumers. The sequential
procedure through which consumer is able to make purchase decision is stated underneath.
 First of all, the consumers tend to identify the problem has faced by him/her. It is through
the identification of one’s own needs and wants that the consumers are able to select the
best offering (Alamdari & Fagan, 2005). It is through comparison of present situation
with that of post-purchase the consumer is able to identify the issue faced. For example:
He or she working too much and feel stressed, therefore need a holyday break which will

RYANAIR AIRLINE SERVICES 8
make he or she more productive and reduce the level of stress. It can be said that the
identification of problems or needs lays down the foundation for purchase decision of
consumers.
 Once the consumer has identified his/her requirements, it is essential to have an idea of
resources available. The consumers tend to know the constraints related to budget and
time. This in turn would help in supporting the purchase decision of consumers (Suthar
Lathangi & Dr. Pradhan, 2014).
 They then have to search for available options that may help them to solve their
problems. In this stage, the person gathering information about how this want and need
can be met. This research might be based on previous experience with the same company
or throw consulting with external sources of information. For example: friends, family,
adverting or etc.
It is through review of various options available that the consumer is able to
decide the best alternative. Hence, purchase decision is justified on grounds that the
consumer tend to map their requirements with that of available options. Consumers have
to strike a comparison between the available options. Such helps in making a right choice
in solving a problem according to the prevailing conditions (Barbot, 2006). Based on the
information that the consumer found in previous stage he or she compared which service
or product best meet his/her own needs and desires. For example: If a customer has small
amount of money and time might go with cheap airline company for a city break rather
than spend all budget for just a luxury flight. Every customer will choose a product or
services which best fits their priorities.
 Consumers go to an advanced level of purchase decision after choosing best option from
the available choices. Once the consumer develops the desire to buy certain product or
services (Cross, 2016).
 Consumer will also conduct a Post-purchase evaluation. It comes after after the purchase
decision step, the consumer will give feedback does product or services satisfied or
dissatisfied its expectation (Barbot, 2006).
 Marketers in every company pay a lot of attention in all steps of this process, because
each aspect gives them ability to identify the choices of their consumer toward
organizational products and services.

RYANAIR AIRLINE SERVICES 9
Various activities are involved in Ryanair’s consumer decision making which can be
illustrated in the following table.
Definition of Decision
making process
Ryanair decision making
process
Consumers’ decision
making process
Consumer need or want The firm has a range of airline
services that sat aim to satisfy
consumer needs.
Consumers are highly
rational in present
scenario. They tend to
prefer airline services that
satisfy purpose of their
travel. For example:
student on education trip
may prefer economy
class. On other hand,
corporate delegates may
prefer luxurious services,
Search for alternatives The airline offers a variety of
services for business people,
young people and family with
kids.
Customers tend to map
their requirements with
business offerings. The
point at which
organization’s value
proposition matches the
consumers’ demand is
considered to be
preferable purchase
decision.
Compare alternatives The services for the company
are lower compared to the other
airlines but that doesn’t mean
that quality of services is
compromised.
With the availability of
services online, customers
have an option to make
comparison. The
alternative that provide
the best combination of

RYANAIR AIRLINE SERVICES 10
offerings at an affordable
price is preferred by
customers.
Purchase decision Individuals can get services at a
lower rate and at the same time
get value for their money
The purchase decision of
consumers are highly
dependent on list of
factors. The customers
decide to purchase a
product/services when
they are satisfied on all
grounds as: quality of
services, prices, brand
image and purpose of
their purchase.
Post-purchase evaluation Consumers may write reviews
and rate the services of the
airline after using them
Customers now-a-day
expect a positive respond
after the services have
been availed. The
consumers’ perception are
impacted by manner in
which their post-purchase
queries or enquiries are
handled. The positive
response on part of the
organization helps in
long-term retention of
customers.
CONCLUSION
In conclusion Ryanair airline has been in the forefront for better service delivery in the
airline industry. The firm has a wide range of services for all consumers and accommodates

RYANAIR AIRLINE SERVICES 11
customers with different levels of income. Individuals have the freedom to choose the services
they can afford and the firm has a provision for that. The firm offers an option for individuals
with low levels of income and they are in serious need of travelling. The firm offers the best
marketing mix that ensures that the company services are publicized and consumers basically get
to know that the firm offers low cost airline services. The report brings forth the fact that the
marketing mix strategies adopted by the organization tend to impact consumers’ perceptions. It is
through effective marketing mix combination that the organization is able to create a valuable
offerings. Ryanair takes into consumers’ taste and preferences in all aspects so as to offer them
the best value proposition.