MKT203 Marketing Research Report: Singapore Airlines Case Study

This report presents a comprehensive market research analysis focused on Singapore Airlines. It investigates consumer attitudes and perceptions within the context of the competitive aviation industry. The study explores the significance of service quality, pricing strategies, and other critical factors influencing consumer behavior and retention. The report includes a literature review examining consumer attitudes, perception, and the theoretical constructs used to analyze them. It outlines the research problem, objectives, and questions, along with the chosen research design and methodologies. The analysis considers how service quality and pricing impact consumer perception and attitude toward Singapore Airlines. The report also addresses other criteria that influence consumer perception and attitude, offering a detailed understanding of the airline's market position. The research employs a mixed-methods approach, using both quantitative and qualitative methods to gather and analyze data, providing valuable insights into the airline's market performance and consumer preferences.

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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Brief Literature Review...................................................................................................................5
Research Problem and Research Questions Research Objectives...................................................8
Type of Research and Research design.........................................................................................10
Research Methodologies and Key considerations.........................................................................13
References......................................................................................................................................16
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Executive Summary
The growth in the aviation sector has been considered significant in the past few years.
The growth in the aviation industry has been supported primarily by growth in smaller flight
segments. Most airlines in the past decade have globalized their operations. In the current report,
the case of Singapore Airlines has been analyzed. In the aviation industry, good consumer
experiences are of considerable importance. In any service industry, consumers are of great
importance as the airline depends solely on their consumers. Airline companies regard high
service quality as a pre-requisite in retaining competitive pressures. The competitive variables
for airlines include equipment, services quality, fares, advertising, market access and so on.
The literature analysis in the study reviews the concept of consumer attitude and consumer
perception to collect data and information pertaining to the study. Research design defines a
framework comprising of techniques and methods that are selected by a researcher. It enables
combining of the various parts of the research logically such that the results related to the
research problem can suitably be arrived at. Data collected from participants was voluminous in
nature as large amounts of quantitative and qualitative data regarding customer perception and
attitudes hence sampling technique was used. Selection of a research design is important for
setting direction in the research and for adopting a suitable research methodology. A research
method includes a systematic plan for conducting the study. For the purpose of conducting this
study, a quantitative and qualitative research method will be used. The quantitative methods
allow creating statistical models and then analyzing them.
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Introduction
The growth in the aviation sector has been considered significant in the past few years
(Malighetti, Meoli, Paleari & Redondi, 2011). The growth in the aviation industry has been
supported primarily by growth in smaller flight segments. Most airlines in the past decade have
globalized their operations. The services offered by airlines earlier extended to include air travel
solely, but currently, airlines are gradually including a plethora of services for their consumers.
Airlines have designed their businesses in a multi-dimensional manner to include air travel, hotel
stays, taxis, tourism and any travel related businesses for consumers (Fu, Oum & Zhang, 2010).
The plethora of services offered by airlines is designed to provide greater perception regarding
service quality to consumers.
Supported by international investments additional, some airlines in the industry have
extended beyond their domestic operational segment. In the current report, the case of Singapore
Airlines has been analyzed. Singapore Airlines is a leading global airline with its headquarters
based in Singapore, Asia. The airline connects various destinations globally and their services
are liked by consumers worldwide (Heracleous & Wirtz, 2012). There are various services along
with air travel that is offered by the airline is to extend its serviceability to its consumers. It also
enables the airline to retain its consumers. The airline has aimed at designing their service quality
in a manner such that it can design consumer motivation towards purchasing products of the
airlines. The studies conducted in the past assignments initially extended a research proposal,
whereby consumer attitude and perception factors were understood from a literature analysis for
Singapore airlines. In another part of the study an appropriate research design and methodology
applied for the study and the key aspects in the research process was covered (Chang, Park,
Jeong & Lee, 2014). In this current study, a research brief for Singapore airlines has been
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prepared. The research brief will act as the guidelines for the market research consultancy for
conducting market research, collection, and analysis of the data.
Brief Literature Review
In the aviation industry, good consumer experiences are of considerable importance. In
any service industry, consumers are of great importance as the airline depends solely on their
consumers. In the absence of consumers, airlines would not exist, hence it is of extreme
importance that airlines understand consumers wants and demands to design their unique
experience (Mayer, Ryley & Gillingwater, 2012). Airlines today not only faces competitive
threats in the global segment, rather they are exposed to competitive pressures in the various
smaller domestic markets as well. Airlines within the industry are designing personalized
experiences to make the consumer feel special. While airlines today are designing a wide variety
of consumer experiences, it becomes pertinent to understand the meaning of consumer attitudes
and consumer perception related to the same. This would enable selecting the right kind of
experience for gaining positive consumer perception and consumer experience.
Airline companies regard high service quality as a pre-requisite in retaining competitive
pressures. The competitive variables for airlines include equipment, services quality, fares,
advertising, market access and so on. Aksoy, Atilgan, and Akinci (2003) identified service
quality to the most emphasized variables, which can enable an airline to differentiate from its
competitors, determine share in the market and ultimately lead to profitability. In the
determination of service quality, airlines need to understand its passenger's needs and
expectations, as it assists in determining standards against which they can judge performances.
There has been a number of researches to determine the factors of service quality measures for
passengers in the aviation industry, first of such research being conducted by Keanery (1986).
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Such researches led airlines to determine ways in which they could enhance their quality of
service and which in turn will affect its profitability. It is also important to examine if perceived
service quality is a driver of customer satisfaction and finally loyalty. Airline managers needed
to understand the factors that affect a passenger's choice of an airline and attributes which leads
to satisfaction and loyalty. The current study's theoretical construct assumes consumer attitude
and consumer perception to be the key drivers of satisfaction in the aviation industry. Hence, to
build and theoretical model and gain deeper insights into the factors a literary analysis has to be
conducted.
Figure 1: Theoretical Construct
The literature analysis in the study reviews the concept of consumer attitude and
consumer perception to collect data and information pertaining to the study. Consumer attitude
comprises of a combination of beliefs, feelings and behavioral intentions, according to Rani
(2014). Consumer attitude is market segmentation in the aviation industry. Hence analyzing such
attitudes enables understanding their response towards a marketing context. The three
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Consumer
Satisfaction
Consumer
Perception
Consumer
Attitude

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dimensions of consumer attitudes are interconnected with one another and are highly
interdependent. Together these forces (beliefs, feelings and behavioral intentions) influences the
way consumer will react to the service offered.
The first component of belief within a consumer might be negative or positive towards
the airline (Wu & Cheng, 2013). Sometimes beliefs might be neutral in nature and sometimes it
depends upon the situation or the individual. Though belief in a consumer might not be accurate
in nature, sometimes beliefs might appear to be contradictory in nature.
The effect is the feeling that a consumer hold towards a particular brand or its services.
Feelings are sometimes shaped by beliefs, but at other times feelings might be independent of
beliefs as well. The last factor in attitude is behavioral intention. The behavioral intention
includes what the consumer plans to do with the service, such as a purchase or not to purchase.
Often there is a logical consequence of beliefs but at other times it reflects from other
circumstances. For example, though a consumer does not like Singapore Airlines he will travel
as it connects to a destination in Asia. A Multi-attribute or Fishbein Model can be used to
summarize overall attitude using the score of;
In the above equation (Wi) is the weight of the belief and it is multiplied with its
evaluation (Xib).
Consumer perception in the aviation industry occupies the central role in the attraction of
newer customers and for retention of the existing ones. Consumer perception of a consumer can
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be negative, positive feelings, inhibitions, predispositions, expectations, and experience which a
consumer has. Understanding consumer perception enables determining the most important
factor for brand success. It acts as a key criterion in decision making. Consumer perception of an
airline brand is dependent upon the way in which the airline has performed in the past (Nikbin,
Armesh, Heydari & Jalalkamali, 2011). It has an emotional connect, top brands such as
Singapore Airlines make an emotional connection with consumers. Perception includes a way in
which a brand communicates to its consumers. Overall it includes the holistic marketing efforts
made by the brand to satisfy the customers from all its touch points. Eklof (2016) in his study of
the consumer perception found its correlation to drive financial performance. A measure of
consumer perception can be arrived at through customer satisfaction (CSI). The concept of
perception and attitude will enable determining a consumer’s final intent of purchasing a product
or a service or not. The airline has aimed at designing their service quality in a manner such that
it can design consumer motivation towards purchasing products of the airlines.
Research Problem and Research Questions Research Objectives
The case analysis for Singapore airlines aims at understanding consumer perception and
attitudes towards the airline. With competition intensifying in the global aviation industry,
airlines globally are trying to offer their own unique services and products to consumers (David
Mc A, 2013). consumer retention has become a major challenge within the aviation industry with
an increasing number of aircraft and airlines globally. Airlines today not only faces competitive
threats in the global segment, rather they are exposed to competitive pressures in the various
smaller domestic markets as well. Faced with such intensifying competition, airlines are trying to
recognize variables or factors that could increase consumer retention (Wang, Lin & Tseng,
2011). The research problem that this study aims to identify are the specific values or variables
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in airlines that consumers are attracted to. In case the study is able to recognize the individual
factors or variables of consumer attraction or motivation, then they could suitably make use of
such variables in their favor. Such factors could enhance the competitive positioning of the
airline within the industry.
Another major challenge facing the airline industry includes the domain of pricing. A
large number of airlines have emerged in the recent decade, as ‘low-cost carriers'. These air
carriers such as Ryan Air, Air Asia offer travel to consumers at considerably lower rates. They
solely offer consumers the travel with hand baggage, whereas food, drinks, additional luggage
has to be paid for an additional cost. This segment of air travel has received considerable
acceptance from a wide class of travelers. This determines that price comprises of a major
determinant in forming the perception and attitude of the consumers towards a particular airline.
Hence, this study will analyze the dimension of price with its effects information on consumer
attitude and perception towards Singapore Airlines. Lastly, the study will aim at evaluating other
criteria’s or variables which might have a dominant influence on consumer attitude and
perception towards the airline company. In order to attend to the research problem, the following
research objectives need to be attended.
 To understand whether service quality leads to the development of consumer
attitude and perception towards Singapore Airlines
 To understand whether the price of the airline results in the development of
consumer perception and attitude towards Singapore Airlines
 To understand other criteria that influence the attitude and perception of
consumers towards Singapore Airlines
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In order to attend the above research objectives, the following research questions need to
be attended to;
o Does service quality develop consumer perception and attitude towards
Singapore Airlines?
o Does price affect developing consumer attitude and perception towards
Singapore Airlines?
o What are the other criteria which impact the perception and attitude of
consumers towards Singapore airlines?
Type of Research and Research design
Research design defines a framework comprising of techniques and methods that are
selected by a researcher. It enables combining of the various parts of the research logically such
that the results related to the research problem can suitably be arrived at. Any type of research
design includes three basic components of data collection, then measurement and finally
analysis.
Amongst the various types of research designs available, the study will adopt the
exploratory research design (Maxwell, 2012). Exploratory studies are generally appropriate for
studies where the problem being investigated is not defined in a clear manner or will not provide
conclusive results. As in this case study analysis, the researcher has started with the general idea
of consumer attitude and perception that leads to the development of service quality (Wahyuni,
2012). In case the researcher gets any new data available then the direction of the research might
be added (for example, factors of SERVQUAL might be added later).
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In this current case study research, the study has been undertaken to find more suitable
and valuable information regarding existing or similar cases. This is an important case study in
today's business world as it will allow the researcher to be sure is the selection of variables
present (McMillan & Schumacher, 2010). This type of study was selected as it requires low
costs, it generally does not needs to be structured, its open-ended and interactive in nature.
At the first stage of the research, the problem related to the study has been identified by
using various research questions. Then the hypothesis was formed using the research questions
as;
H0: Service quality has no association with customer attitude and perception towards
Singapore Airlines
H1: Service quality has a significant impact on customer attitude and perception towards
Singapore Airlines
Dependent upon the above-stated hypothesis, the researcher will collect data and will
analyze the same to continue with the descriptive investigation. The quantitative and qualitative
study will be used for the purpose of conducting this research.
Once the hypothesis has been ascertained for the research, the research methods for this study
have to be determined. Primary research that makes use of the first-hand collection of data from
participants will be the method for this study. The researcher will directly conduct the data
collection by self and explore areas related to the problem (Walliman, 2017). The researcher will
collect data by means of a survey to gather information from predefined respondent groups. The
survey is an important method, whereby employees of Singapore Airlines will be provided with
questionnaire or polls and would be asked to respond regarding the same.
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The selection criteria for employees of Singapore Airlines comprises of mainly service
staffs and employees, who interact directly with customers. Employees such as cabin crew, front
office executives, customer care executives and call center executives, and other staffs who
directly interact with customers will take part in the study. Exclusion criteria for research will be
air pilots, ground staffs, cleaning staffs, catering staffs, ticketing staffs will not form part of the
study. The participating criteria for employees were age between 26 years to 40 years of age.
Both male and female employees will take part in the study. Participants who have worked a
minimum of 5 years with Singapore Airlines will be selected for the study, new employees will
not be allowed to take part in the study.
The employees and the staffs will be contacted over telephone and email, post obtaining
permission from the HR manager and other senior authorities regarding the study. A letter
seeking permission will be handed over to the authorities as well as to employees to seek their
consent to participate in the study. The letter will clearly indicate the research problem, aims and
research questions that the researcher is aiming to accomplish through the study. The employees
will be provided a period of 15 days to revert regarding their acceptance of the proposal. Once
the employees send across their acceptance over email, they will be sent across with participant
consent form, after which they will be taking part in the study. Of the total 1500 bulk emails sent
out to employees based across various regions in the world, only positive response from 500
employees was received. From the positive responses received the exclusion criteria was applied.
Post application of all criteria, the final number of response received was 300. Then the
researcher applied random stratified sampling techniques to select 50 participants. A sampling
process was applied due to the ease of analyzing the data. A random stratified sampling
technique involves dividing the entire population into smaller sub-groups called the strata. The
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strata will be formed depending upon the employee's income levels, duration of service, loyalty
towards Singapore Airlines and so on.
Data collected from participants was voluminous in nature as large amounts of
quantitative and qualitative data regarding customer perception and attitudes hence sampling
technique was used (Christensen, Johnson, Turner & Christensen, 2011). Once the data has been
collected it will be analyzed using quantitative and qualitative methods. The primary collected
from various employees will be grouped into various sub-categories of consumer perception and
attitude towards Singapore Airlines.
Research Methodologies and Key considerations
Selection of a research design is important for setting direction in the research and for
adopting a suitable research methodology (Silverman, 2016). A research method includes a
systematic plan for conducting the study. For the purpose of conducting this study, a quantitative
and qualitative research method will be used. The quantitative methods allow creating statistical
models and then analyzing them. Qualitative method of the survey has been used for this study
as it allows to test hypothesis and then explain the observations arrived at. The survey research is
a procedure where participants are generally asked to respond to a series of questions related to
customer perception and attitude (Taylor, Bogdan & DeVault, 2015).
The questionnaire for this study will be framed in a manner that allows, employees, to
reveal regarding the service quality they have been successful in providing their customers. Due
to the large sample of employees present at Singapore Airlines, a sampling method will be used.
Each participant in the study will be provided with a total of 50 questions. The questions will be
close-ended as well as open-ended in nature. The close-ended questions will aim at ascertaining
the authenticity, reliability, and validity of the data. Whereas the open-ended questions are at par
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with exploratory research design, as it allows respondents to clearly reveal their point of view
regarding particular service issues or quality. The close-ended questions can easily be analyzed
using quantitative methods, whereas the open-ended transcripts can be analyzed by transcribing
of the interviews. The close-ended questions will be analyzed by way of statistical models of
Mean and chi-square tests using SPSS. This will help determine the relative weight of each
criterion and their impact on the service quality provided by the airlines.
Some of the key consideration that needs to be adhered to while conducting this study
are;
o Equal weighting being provided to the participant selection process. In quantitative
methodology, it becomes crucial to provide equal weight to each participant such that justice
and equity can be attained. Participants need to be defined such that they cater to the
selection criteria in the study and the sample participant has to abide by such features. Every
participant needs to be provided with an equal opportunity to take part in the study. As in this
case every employee needed to be provided with equal opportunity to take part in the study
process.
o The researcher needs to ascertain that relatively fewer risks are involved for the participants
of the study. Reducing risks against the benefits obtained in the study is a crucial strategy
that the researcher needs to apply. The researcher needs to avoid quoting the names of the
participant while publishing the study. Moreover, the researcher needs to provide an option
in the question of whether answering it or not, which might contradict with terms of
employment with Singapore Airlines. Any information that makes use private or confidential
information of the employees, which relates to terms of employment with Singapore Airlines.
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o The research will be conducted using separate and independent assessment. The aims and
goals of the research should be reviewed by an Independent Ethics Committee prior to
initiating the study. This ensures that the study does not have any ethical conflicts with stated
research.
o Informed consent is a primary criterion that makes a study conform to ethical concerns. A
separate document that includes all details regarding the study explicitly has to be informed
to the participants taking part in the study procedure such that they can exercise their
autonomy of taking part in the project.
o The researcher needs to have respect for the participants taking part in the research
procedure. This will help develop a positive relationship and safeguard any confidential
information of the participant.
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