A Literature Review on Service Quality - Free Essay Example

Sample details Pages: 8 Words: 2479 Downloads: 9 Date added: 2017/06/26 Category Transport Essay Type Analytical essay Level High school Did you like this example? CHAPTER 2 2.0 Literature Review Nowadays, the trends for demand of the air transport are increasing. Airline industry has been transformed compare to before especially demand of using the air transport. It also becomes as the sector which experience the fastest growing sector compare to the other sector. This increasing of demand can be show out customer has gets their beneficiaries from using this kind of air transport. However, fastest growing of the airlines industry also brings the challenges because of the rising trend toward air transport demand. Purpose for this paper is to examine that how the price, service quality and advertising and promotion influence people to choose flight as the transportation. 2.1 Price According to the Business Dictionary (https://www.businessdictionary.com/), price is a value that exchange or transfer for the possession. The buyer is pleased to pay and seller is pleased to accept and the competition is allowed to exist. All o f this is the basic thing in the business dealing activities. However from the American Economic Review has detailed 117 meaning of price no matter in monetary or non monetary meaning or even in the objective and subjective meaning. R.Commons (1929), state that price can be separated in the value or debt and price is related to the scarcity of commodity, money and waiting. Further, price is a critical thing to an organization which enables to affects or affects by the function of an organization. There have some understanding which done by Monroe (2003), state that price sensitivity can divided into two dimension which is price awareness and price consciousness. The buyer who has the ability to remember the price is called as the price awareness conversely buyer who sensitive to price differential is price consciousness. Thus these price sensitive degrees are affecting to their purchasing behaviors. In economics perspective, this price sensitivity is measured by using the price elas ticity to the demand. Price is an important issue for public transport such as bus, train, taxi to earn their profit for the continuous operation. Generally, if the elasticity is negative value we can see that price increases the number of consumer that patrons toward the public transport will be decrease and vice versa. So that the elasticity concept is emerge to express the proportional change in number of patrons to the proportional changes in the prices. The price elasticity for the public transport in rural area is higher than urban area (Paulley et al., 2006). From the Transport and Road Research Report Laboratory (2004), shows that there was negative value and more elastic demand for the bus price in the short run distance if compare to the long run distance. Moreover, from Roza et al. (2013), a case study in Peninsular Malaysia shows users pay attention to the price increase of the intercity bus and train. Users also give the response which shift from bus to train beca use of reduction of price in the intercity train. This has strongly showed that the price changes influence the user toward choice of mode of transport in this case study. Identically for the flight demand, the price has playing a very important role. In the airline market we can see that there have multiple prices in the market. All airlines in the market must be taking over several considerations about the market demand reaction and the competitors price before set a price decision on the seats. However, the intention for the trip is decide the willingness of the consumer to pay for the price offer. The evidence can be get from the price discrimination of the fly ticket in the weekend with the low fair in weekend truly give the effect to the weekend purchase statistic on the demand of the flight ticket (L.Puller et al.,2012).Thus if we want to evaluate the demand competitiveness the price dynamics must take into account. According to International Air Transport Association ( IATA) Air Travel demand (2008), travelers will choose the destination according to the price of flight ticket offered thus they are more sensitive to the changes of the price of the price in air travel. Besides, the International Passenger Survey (2004), was conducted by UK Office of the National Statistics predict that UK people who travel to the Europe country by flight transport the price variant as 27% in the total travel cost in the year 2004. Many passenger who use the air transport also make the option between the difference of the price which according to the class level. In the study of Gillen et al. (2002), found that the price demand elastic is range differently according to the relevant market. For the long journey the price elasticity variables according to the purpose of international business is more elastic than the domestic business and also the international leisure also elastic than domestic leisure. However for the short journey price elasticity variable for the purpose of the business is more elastic than leisure purpose. The econometric of IATAs Passenger Intelligence Service (PaxIS) database (2005), has shown that there has significant difference statistic with geographic air transport market. In the Intra Europe there are more elastic to the price demand of the transport because there facing strong competition from the other mode of transport with a very low price. Conversely from the Intra Asia aspect, there is moderately more inelastic because the low price of transport in Asia is emerged just recently. New breed of the flight in the US airline industry with low cost has brought result toward the low price of the flight ticket which the low fair cost are distributed broadly. This low cost enable the price strategy in the US airline industry enter different market segment which whether in the low, medium or even in the high end strategy (Najda, 2003). The obvious demand increase in the flight shows that in the US aviation industry i s growing positively (US Federal Aviation, 2011). Real World Wide Web has been used in describe the air transport network. Thus, the connectivity of the airline in the global is very importance to stimulate the economic. The economic price of the flight has played an importance role to increase the demand of the air passenger. This can be show in Oxford Economics (2011), the economical importance places has the higher routes of frequency. The fall of cost in the air transport services has increase routes of flight in Malaysia which connect to cities of all around the world which consist of 111 routes in year 2011.Moreover, in British Airway (BA) April- December (2010), shows that the total revenue of the airline had possess 89% which means consists of 23 million air passengers generated about  £5.7 million profit in year 2010. Thus, we can see that appropriate pricing of the fly ticket is a very important to enhance the market to become more powerful, fairness and sustainability. The air transport in Asia has become a more common mode for the people as the transportation for the travel mode. The reason why it was happen because accelerated by the affordable price of flight ticket which dedicated by the low-cost flight. Airline competition occur cause the air flight ticket to be low will give the advantages to the passengers who pleased to pay and accept the minimal service and comfort ability(Zhang et al., 2008). In Malaysia, Air Asia has held their slogan which Everyone Can Fly in the reality. Air Asia can make it in the reality because they keeping their cost and fair low. An airline is a service industry if the service provided are no difference or only has a little difference to the service that offered in the market consumer will choose for the cheapest one (Lovelock, 2007). Price strategy always use by the airlines industry and customer will get the seats that what are they pay off. Malaysia Airline which launches the Everyday Low Fair program which want to meet the customers current demand. Zeithaml et al. (2009), state that the one information can get is price used by people as a pointer of quality. Addition, low cost airline are the price strategy which price differentiation used by airline industry market to attract the different segment of customers (De Pew et al., 2003). In conclusion, I wanted to find that is that the price given by the airlines will affect the people to choose flight as their transportation. 2.3 Quality of Service According to business dictionary (https://www.businessdictionary.com/), quality is a level used to measure a something which is excellence, absence of defect and it is a something that exceeds the degree of expectation by the consumer. There shows that different people have different perception toward meaning of the quality and it is a subjective term for everyone. Furthermore, Kasper et al. (1999), has defined that the service quality is a degree that fulfill the customer expectation. According to the Jasmina (2007), who has study in service quality in hotel industry stated that quality of service provided by a company is very important which must make sure always fulfill customer satisfaction to allow the company compete in the market and ensure the profitability. However, in the transportation aspect, service quality can straightly affect demand of the public to use it. This can be shown by Muhammad (2010), has study on relationship of bus service and its demand of passenger. From his study he shows that the condition of the bus has bring impact to the demand of the public to use and because of poor service quality cause the public lack the interest to use this transport. This shown by the Mazulla (2006), shows attribute of the service quality from a transport can influence the customer satisfaction is analyzed which the attributes consists of frequency, comfort ability, cleanliness, information given seats and security. Moreover in the Indian Railway there have several attribute used to evaluate the customer service quality instrument such as reliability, empathy, tangibles, responsiveness and assurance (Vanniarajan et al., 2008). From the Lai (2010), research has show that the positive relationship between the quality service of the transport toward the intention of the consumer behavior. According to the Chen et al. (2005), the authors have determined the airline industry service quality in a process form. They divide the process in the two parts which is ground and in flight service. It shows that the customer has different expectation for each different process. Service quality instrument also been use by the other researcher to measure the service provided in the airline industry. Abdul Rahim et al. (2005), has show that the higher quality service ensure the profit and will help satisfied the customer in the higher level and they will be more loyal. From Ali et al. (2012), states that their finding which the hierarchical mo del of service quality most suitable used to collect information and made decision if compare to the other type of service quality model such as multilevel model and Nordic model. The hierarchical model consists of primary dimension which is interaction, environment and outcome dimension. They have their own sub dimension which the interaction are included attitude, behavior and expertise. For environment it includes condition design and social factors. The outcome dimension includes the waiting time, tangible and valence. Lastly from their conclusion they also believe that service quality is the best measurement for analyzing the customer information which included the need, wants and perception about the service. In addition, from the Brady et al. (2001), have states that the result of the high quality service will improve the organizations profit, market share, customer loyalty and the probability for customer to buy it will also increase. According to the Sumaedi et al. (2012 ), the research has found that there has a positive relationship between the service quality and the customer behavior intention. From the researcher finding it also can be support by the Wen et al. (2005), which the service quality of a public transport has influence people whether to use the public transport. In the research the service quality attribute included such as safety when riding, the cleanliness, and degree of crowd when transit, the drivers knows what passengers need and the formidable of the transit system engine. Thus, the behavioral intention of the customer can be affected by the service quality of the transportation are being supported. However, from the researcher al-Rousan et al. (2010), has do the research on the customer loyalty towards the service quality provide in the hotel industry. The finding from the research has show out that the directly influence of the service quality toward the customer loyalty which as same as the transportation industry the impor tant role of the service quality toward the customer who request the service. Service is an intangible and requires tangible facilities with a present of the customer will give an obvious influence toward the quality service that provided to the customer (Britner, 1992). Tangible feature have include outward appearance of physical facilities, communication material, personnel, equipment (Zeithmal et al., 1990). It also include the surrounding design was play an important role towards environments ambience (Wakefield et al., 1996). This also can be seen that the in the interior of the flight importance towards the customer perception towards service quality provided. There has mentioned such as seating comfort ability, safety guide, immediate handling customer request, inquiry and complaints (Lindstrom, 2009). According to the Nor et al. (2013), finding show that the service quality has influences the customer loyalty in the airline services. The customer loyalty will be import ant criteria which the customer will repurchase service or recommend it to the other people (Bloemer et al., 1999). Repurchase intention of customer from the same company will help to ensure that the customer are favorite to the certain company so they will continuous purchase and recommend it to the other peoples (Pearson, 1996). The repeat purchase of the customer from a same brand will help the company to maintain the demand from the customer which without the emotional coherence to that brand (Hawkins et al., 1998). The finding from the researcher Eileen et al. (2011), has found that the key service attribute that provide d by the Malaysia Low Cost Airline which delivery the promise service to customer has allow them to repeat purchase the service. For example the airline promise to delivery on time in departure and arrival, the cleanliness in the flight and with the comfortable seats has give them satisfied with the service provide. On the other hands, the experience of purc hase the flight ticket, check in counter, communication in the ground crew has influence the customer perception towards the service quality provided by the airline. According to the Westcott (2005), shows that it is important to attract the new customer as well retain the old customer and ensure the repeat purchase. In conclusion, according to the pass researcher above has mentioned there is very importance to provide good service quality towards the intention of customer by repeat purchase or attract new customer. So that for me I wanted to find out the quality service that given by the airline will influence the customer choose the flight as the transportation. Don’t waste time! Our writers will create an original "A Literature Review on Service Quality" essay for you Create order

The Life Of George Womble And Douglass - 1432 Words

The different treatments slaves received from their masters may have been caused by the different environments they were living in. After moving from the country to Baltimore, Douglass observed that slaves living in urban surroundings were treated differently from slaves living on plantations. Douglass notices that â€Å"a city slave is almost a freeman, compared with a slave on the plantation. He is much better fed and clothed, and enjoys privileges altogether unknown to the slave on the plantation† (Douglass 32). These differences can be seen through the experiences of George Womble and Douglass. Mr. Womble, a slave who lived on a plantation in Clinton, Georgia, says that â€Å"slaves on the Womble plantation were treated more like animals rather than like humans† (Womble 12). Children ate from a trough and shared meals with the animals, and his master would whip slaves â€Å"just to give himself a little fun† (Womble 2). Slaves were also punished unjustly. For instance, when he was sent off to complete an errand, Mr. Womble â€Å"stopped to eat some persimmons [instead]†¦of returning immediately† (Womble 13). As a result, his master â€Å"started beating him on the head with a wagon spoke† until â€Å"his head was covered with knots the size of hen eggs and blood was flowing from each of them† (Womble 13). This brutal treatment would not be accepted in the city. In urban areas, masters have â€Å"a sense of shame that does much to curb and check those outbreaks of atrocious cruelty so commonly enacted

School Uniforms Should Be Required For Their Freedom Of...

School uniforms were first introduced in England, in the 16th century. In the beginning it was only for charity purposes, but clothing started to have a different meaning throughout the centuries. The early purposes of wearing school uniforms were not much different than that of today’s. Same clothing can represent togetherness and may also help students no to get distracted. This research paper will take a closer look at why schools should mandate such a policy, supported by details and statistics from different sources. The majority of school students believe uniforms will restrain their freedom of expression. However, all elementary schools in different nations should make it mandatory for their students to wear school uniforms.†¦show more content†¦There are many positives to this idea. It is said to increase academic and discipline and even safety within the schools. Uniforms can decrease social competition and bullying, and also can make getting ready easier. In Hungary for instance, there is only a few schools that require their students to wear uniforms, thus representing them as the same. However, most all the schools require some sort of a dress-code regulation. For instance, at the American International School of Budapest (AISB), an ‘indirect’ policy was introduced: â€Å"Although AISB does not have a school uniform, appropriate school dress is important to the atmosphere of the school. We expect that clothing worn to school is comfortable, neat, clean, safe and appropriate to the season. In particular it must be appropriate for the school setting.† (AISB, 11) The schools states its dress-code regulations in a guideline (handbook). Most of these regulations state that â€Å"clothing should not be overly tight, overly baggy or revealing. Shirts and tops should cover the student s underwear and belly button. Hats may not be worn inside the building. No clothing may be worn that exhibits inappropriate language or l ogos (violent, sexist, racist). Hanging straps and chains are unsafe and should not be part of, or attached to, clothing worn to

Porter’s Five Forces Model of Retail Industry for Strategic Management

Question: Describe about the Five Forces Model of Retail Industry for Strategic Management. Answer: Porters Five Forces Model of Retail Industry: Threats of New Entrants- The retail industry face strong forces of threats from the new entrants. This is because; new retail firms can easily enter the market, as most of running business is low; capital cost is also moderate. Small retailers can compete with the existing giant firms in terms of locality; specialty and convenience. Threats of Substitutes- Substitute of retail products are not available in any other industry. The threats of substitutes exist among the firms under industry, for example, people can shift from Wal-Mart to Tesco. Hence, force is strong. However, there is variety of products in the retail sector and there is no other ways to shift. Bargaining Power of Buyer-Though the number of buyers is large and has strong forces, the individual purchase amount is too small. Therefore, there is weak pressure that buyers can impose in this industry. The purchase of each buyer is also diversified that cannot put force on the firms under this industry. Bargaining Power of Supplier- There are large numbers of supplier in this industry. Therefore, this industry can easily affect them. Due to tough competition among the suppliers and availability of supplies, make it difficult for them to affect the retail industry. Intensity of Rivalry- The firms under this industry are engaged in bottleneck competition. The large number of firms in this industry imposes strong rivalry in this industry. they are oftrn engaged in price war. The US automobile industry can be examined by conducting the PEST analysis. Political: Government of United States focuses on the reducing pollution from the production of automobiles. The government of this country assists for technical innovation. The trade agreement with this nation is also increasingly growing. However, the pollution laws or laws regarding the environment are strictly enforced by US government. Economic: Growth in the economy of US is an opportunity for the automobile industry. The high growth rate of the developing market is generating demand for the US automobile products. However, strength of US dollar is a disadvantage for the industry as their export has been becoming costlier in the global market. Social: The consumers preference for electric automobiles and its increasing demand for vehicles is the opportunity for Automobile industry. The US consumers are attracted to after-sales services. Therefore, this industry has more opportunity to grow. Technology: In US, the research is growing rapidly in order to innovate new technology and to develop new products. Therefore, the technological environment is supportive for the automobile industry. However, limited availability of alternative fuel is a disadvantage of this country. Economic and Social factors are of major importance for Automobile industry of US. The economic condition of the global and domestic market significantly influences this industry. the social factor like customers changing pattern is also of major importance. The firms are related to the three levels of external environments. The remote or broader level of external environment takes into account the economic; political; technological and social factors. The industry environment constitutes of competitive rivalry; power of buyers; power of suppliers; barriers for entry and threats of substitute. The operating environment influences the firm through suppliers; competitors; customers; creditors; government bodies; labor union or the workers and the local community. In the operational external environment, the supplier; customers and the competitors are of most important. These particular stakeholders are highly affected and they face instant consequences when the firm faces any uncertain change. The direct competitors of a firm or an organization are those firms those have similar resource endowment and similar market product. Direct competitors also produce identical products and services. While identifying the direct competitors, the management team often misses out to consider the potential entrants in the same industry. Hence, they remain unidentified. Moreover, rivals often give misleading signals that divert the focus from them. Identified competitors may have different approach of business because they face different challenges. Therefore, such competitors are not the direct one. The competitors can be identified through technology analysis; by market access and by identifying the reputation of the firm. The operating knowledge and skills are another tools of examining the competitors. The firm is considered to be a potential entrant when it has sufficient capital to invest in order to set up new business and has a existing customer base. Moreover, if an existing firm with high brand value is diversifying in new market with new product then the firm is a potential entrant in the industry. If the demand for a product falls due to availability of another product, then the good is considered as substitute. If the degree of fall in demand is high, then the product is potential substitute. Companys strategy is often influenced by environment. The organization is successful if the organization adapts all the environmental forces. The company determines the environment by developing relationship with the stakeholders and other activities. Strategic choice incorporates recognition and assessment of alternative plans and then it decides upon some specific choice. Strategic choice assists the firm to obtain the goals of the company. The approaches of making strategy choices are different. There are, planned approach; experience based approach; enforced choice approach and command approach. Stakeholders approach recognizes the stakeholders of the company frames the model according to their need. The stakeholders are affected by the performance of the firm and on the changes strategy according to their need. The consumers; suppliers; government and employees are major stakeholders of companies. The enactment of strategy makes the environmental changes less aggressive. This process is more favorable for the success of the organization. in this process the company attains continuity and coordination. By adaptation, it is meant that how the companies responds to the environmental changes by modifying its strategy according to the needs of the business. The resource of the company generates value for the consumers that are difficult for the competitors to imitate. Therefore, the resource-based view of the firm provide basis for sustainable competitive advantage. This view incorporates recognition of potential resources and derives strategy in order to create synergy. Valuable; rare; inimitable and non-substitutable resources can achieve competitive advantage in the long run. The four principles of Blue Ocean strategy are: creating uncontested market; making competition irrelevant and new demand creation and breaking the value cost trade-off. There are major differences between porters five forces and Blue Ocean Strategy. Porters model opined that business has to determine how to compete in the existing marketplace. However, the Blue Ocean theory focuses on creating a new market. Blue ocean strategy completely avoids the competition in the market. it also encourages to focus less on the competitors and instead encourage to find alternative products to create a competition less market. This strategy focuses on current customers instead of existing potential customers. However, the porters Five Forces emphasizes on power of existing buyers; sellers; substitutes and competitors. Porters Five Forces model is competing approach and Blue Ocean approach is the innovation approach. This is because; Blue ocean looks for new market and Porter looked for surviving in the competitive strategy. The generic level competitive strategies are of three types, such that, focus; differentiation and cost leadership. Cost leadership can be implemented through creating low-cost position of the company. It also helps the company to capture the significant portion of market share. The disadvantage of this strategy is that due to huge cost of investment, new and advanced technology may not be implemented in the company that can reduce the cost of production. RD and innovation offers high quality product in order to make their product different from others. Therefore, differentiating strategy makes the product attractive. However, innovation or the new product can be copied or imitate by other firms. Therefore, if other firm steals the product then the company will not enjoy benefits of differentiating product. The business strategy of Focus formulates concentration on the niche market. this requires understanding the customers and market. The limitation is that focus strategy is that concentration focuses in small segment with low capacity and company is unable to serve in the broader market. SWOT Analysis of Carlsberg Brewery Malaysia Berhad: Strengths Weaknesses Large size of the firm Brand Value Global expansion Significant market share High cost of production Exposed to the risk of global market Changes in exchange rate Only Non-Muslim Malaysian as consumer Opportunities Threats Changing festive or celebrating pattern of the consumers causes high demand Growth in Malaysia Expansion in the new foreign market Rise in alcohol Tax Increasing fuel price rises cost of transportation Growing awareness of health Wine as a major substitute An organizations options for growth are listed as follows: Partnership/ Merger and Acquisitions/ Joint Venture Foreign Collaboration Expansion Diversification Modernization Example of company external growth strategy: Nokias acquisition of Siemens network. Example of company internal growth strategy: Apples diversification in mp3 Player; online music store etc. Approaching the market place with strategy of differentiation based upon speed, this entails that speed of production or the speed of services has to be improved. In such case, the supporting activity like technology development and human resource management will become primary activity, in the value chain. This is because; more labors are required and through technology advancement, the speed can be directly improved. To distinguish the products in terms of speed from other products, the outbound logistics and distribution must be improved in the value chain. In the phase of introduction of a new product, promote of the product by advertising method will be the competitive strategy of a company in order to develop a market for product. In the phase of growth, the firm emphasizes on building brand value and attempts to capture major market share through implementation of different strategic. In the maturity stage of the product cycle, the goal of the competitive strategy will be to achieve greatest profit. In the stage of decline of the product, the firms may choose several strategies to continue its business. For example, if product sale of is falling, the firm may choose to operate in another market and will develop its business. In this stage, a general approach of the firm is to diversify its production, bu focusing on developing different items. When the transaction costs are too high to persuade a company to produce goods and services in-house instead of purchasing it in the open market, then it is known s market failure. When a firm creates part of its requirement by itself and buys rest of the things from the open market, then it is known as taper integration. When a firm is not involved in the entire adjacent business units in the supply chain, then it is known as quasi integration. The firms themselves do not produce entire goods and services, rather it buys inputs or other parts of final goods from the suppliers. This reduces cost of production. Hence, the firm violates principles of market failure, in order to ensure better flow and to have control over the operations and supply chain. Thus, the business organizations follow taper integration, produce some parts by their own, and buy some of its ingredients from outsiders. The functional level strategy must be steady between functions; within the function; and with the generic-level strategy. This approach facilitates to attain business level and corporate level objectives by exploiting the resource and productivity. Hence, this strategy must be reviewed from time to time in order to be consistent with the business level approach and supportive of corporate level approach. The functional strategy must be consistent with the capabilities in order to formulate higher-level strategies. It must be consistent with the delivering of products or services; manufacturing as it manages various functional and operations. Functional level strategy should be formulated in such a way so that it helps the company to accomplish its goals of the business and corporate level. Concurrent control incorporates the control or regulation of continuing process. The monitoring system is made in real time. Concurrent control also necessitates understanding particular tasks involved in the process and the relationship between them. It starts with standards of the product and all other activity of employees against standards. This control ensures best possible quality and services. The process control or the control of the process is associated with entire process of the production and service. Process control ensures whether the products or the outputs are meeting conditions. This control makes sure that the progress of the firm and its success continues at every stage of production. Customers survey is an important tool of the strategic control. Through this survey of the customer, entrepreneur or the marketers will be able to have an idea in order to improve their strategy in the proper direction. Consumers survey enables the company to measure how well their standard of customers satisfaction is. Structure of capital and funds are provided by the finance strategy. Human resource strategy focuses on the reducing hiring cost and number of hiring. These are account-based measures, which can be influenced. Therefore, the control measures cannot be formulated based on only the numerical values of the performance of the company. Therefore, the executives prefer market-based measures to alleviate the difficulty of account-based measures as control measure. Market based measure is not restricted to the sole aspect of firms performance. Concentration strategy focuses on a single product and market. This strategy prefers to invest in the resource and marketing of the particular product that it plans to improve. This strategy creates loyalty among the customers and builds up reputations. The limitation of this plan is that since the firm is focusing on single product or market and if customers preference of that market shifts from that product, the product will be obsolete. This might cause failure of the business. An example of firm with concentration strategy is McDonalds Corporation Integration strategy improves the overall competency of the company through strategic alliances. Integration can be in the form of Merger and Acquisition; Partnership or joint venture. It reduces cost of production in the overall supply chain. The disadvantage of this strategy is that, in order to have enough supply for downstream operations the upstream capacity is also requires to be formed efficiently. This in turn hit backs the suppliers of the previous stage. Integration also makes raw materials limited that creates barrier for the new firm to enter the market. An example of firm with integration strategy is Amazon.com. The diversification strategy refers to entering into the new market for a new product. This strategy enables the company to create more customers base. This helps the company to grow fast by increasing profits and cash flow of the company. The limitation of this strategy is that the consumers may not like the new product, which will lead to failure of the strategy. An example of firm with diversification strategy is Nestle.