Customer Dissatisfaction in E-Business: A Case Study on Ryanair Report

Verified

Added on  2021/01/01

|20
|5089
|425
Report
AI Summary
This report provides an executive summary analyzing the factors contributing to customer dissatisfaction, using Ryanair as a case study. The study identifies key issues, including the importance of customer focus, the role of social technology, and specific factors like poor customer service and lack of innovation. The report includes a literature review covering customer satisfaction models and the impact of dissatisfaction on business performance. The methodology involves both primary and secondary data collection to examine the meaning, causes, and models related to customer dissatisfaction within Ryanair. The analysis explores the relationship between customer satisfaction, retention, and profit, along with an examination of the factors leading to dissatisfaction in Ryanair. The report concludes with recommendations for improving customer satisfaction, based on the findings and analysis.
Document Page
E-BUSINESS
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
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.
Document Page
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
Document Page
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
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
INTRODUCTION
Research aim:
To analysis the factors of customer dissatisfaction from company: A study on Ryanair.
Research Objective:
To study about meaning and causes of customer dissatisfaction in Ryanair.
To analysis factors of customer dissatisfaction from Ryanair
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
success of having low cost airline. But soon many problem those related to company,
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
Document Page
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.
Figure 1; Customer satisfaction model.
[Source: Siu, Zhang and Kwan, 2014]
2
Document Page
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
out by professionals in order to identification of the causes behind the generation of
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
major prospects which is being cause of dissatisfaction level increment within business
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
case of Ryanair company, it currently facing wide range of issues concerning about
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
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
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.
Figure 2: 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
Document Page
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
said that, implementation of technological advancement and innovative changes within
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
Document Page
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
available for researchers in order to determine research objectives and aim effectively.
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
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
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
Document Page
Figure 3: 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
chevron_up_icon
1 out of 20
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]