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Qantas: Service Quality and Recovery

   

Added on  2020-03-23

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Running head: SERVICES AND MARKETING RELATIONSHIPServices and marketing relationshipName of the student:Name of the University:Author’s note
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1SERVICES AND MARKETING RELATIONSHIPAnswer 4: Determinants of satisfaction/dissatisfaction at QantasService quality and good pricing are the main determinants of satisfaction/dissatisfactionin the airline industry. Satisfying customers is an important marketing activity as it has an impactof profitability of business and consumer purchase behavior. In case of Qantas airlines businessorganization, it is the world’s leading long distance airlines, which has built a reputation forsafety, operational reliability and customer service. Qantas has reached a new level in customer’ssatisfaction and the main determination of satisfied customers includes high class travelexperience, quality of in-flight entertainment and pricing. Compared to other domestic airline inAustralia, Qantas is ahead of Virgin in customer satisfaction. In terms of business travelexperience, Qantas score was 84% and Virgin’s score was 75% in 2015. Qantas got 2014 RoyMorgan Customer Satisfaction Award for this achievement (Roy Morgan Research 2017). Another element for increasing customer’s satisfaction in the airline industry is theattributes related to airline service quality. Airline companies mainly aim to exceed customer’ssatisfaction by improving the service quality to satisfy the needs of passengers. Service quality isthe dimension of competitiveness. The service quality is affected by the expected service andservice perceived by the consumers. This is also in relevance with the assimilation theory thatstates that cognitive process in a consumer determines the comparison between the expectationsabout the product and perceived product performance (David Mc 2013). Theoretical models have suggested different models for service quality. The threecomponent model suggest service product, service delivery and service environment as criticalfor safety. Service quality and service satisfaction are interrelated aspects where a high level ofservice quality is associated with high level of customer satisfaction. For instance, the
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2SERVICES AND MARKETING RELATIONSHIPconfirmation and the disconfirmation theory suggest that customer’s expectation about theservice has a vital role in customer satisfaction. This expectation is also related to their beliefsabout service delivery that is up to their standards or expectations (Pizam et al., 2016). Hence,customer’s expectation becomes the main reference for evaluating quality of service. Figure: Association between customer’s satisfaction and perceive performance Source: (Liu, etal. 2017).At Qantas, the quality of service is evaluated by giving ratings on the availability andstandards of facilities, airline’s responsiveness to address problems or challenges within thefacility. Passenger perception survey is also conducted by Qantas to know about customer’sperception regarding coverage and level of satisfaction with facilities. This detail is also relevantwith the above theories as it reflects that quality and customer satisfaction are interrelated(ACCC airport quality of service monitoring guideline 2017). 5. Service recovery plan for QantasQantas has faced several challenges in its business due to external competitive challengesin the international airline industry. Some of the major challenges for them in the past year wasrelated to industrial disputes, demand in working conditions and wages, impact on business dueto weather events and natural disasters, 48 hour shut down, A380 mid-air engine failure,financial pressure due to fluctuating fuel prices and many other issues. Hence, a comprehensive
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