MKT2307 service marketing

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Business Finance

Mkt2307 service marketing

Ramkhamhaeng university


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4 CASE United Attempts to Crack the Non-business Market ates more than 3,300 flights a day. Although the airline's hubs are oper- > the right price. United Airlines flies to more than 200 domestic and international destinations and in Chicago, Denver, Los Angeles, and San Francisco, United's 47,000 employees live in e strategically located every U.S. state and in many countries throughout the world. According to, “The company's portfolio of products offers the right service to the right customer and Colorado. United's major strengths are the number of destinations served, multiple United Airlines dominates the business travel market that flies in and out of Denver, flights to single destinations throughout each day; different types of aircraft that offer first class, business class, and coach seating classes; and a dedicated and professional staff United also benefits from the lower price sensitivity of it business travelers. Business including gate personnel, pilots, flight attendants, and baggage handlers. travel is typically not paid for by the individual passenger but by the passenger's em ployer. Consequently, price is frequently not the most important decision criterion when selecting an airline , whereas , flight schedule and timeliness become more impor- tant decision-making criteria. Despite United's success in the business traveler market, it has not been as successful in the non-business market as the airline would like. After sitting down with several focus groups to determine how non-business travelers purchase their airline ticket, the following multi-attribute matrix was developed: CONSIDERATION SET OF AIRLINE ALTERNATIVES FOR NON-BUSINESS TRAVELERS IMPOR DECISION MAKING CRITERIA UNITED PRONTIER AIRLINES AIRLINES SOUTH WEST AIRLINES AMERICAN AIRLINES WEIGHTS Price 8 9 9 8 9 9 7 7 9 8 10 Flight Schedule Destination Baggage Fees Leg Room 10 10 10 10 8 8 10 8. 8 8 9 9 7. 8 7 9 8 In-flight Entertainment Options Totals 7. 8 Source: Profile Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBox Ontent does not materially affect the overall leaming experience. Cengage Learning reserves the right Case 4: United Attempts to Crack the Non-business Mafket 107 As managers examined the decision-making matrix, they attempted to answer the five questions listed below. You have been hired as an outside consultant to assist in deter- mining the correct course for United's future marketing efforts as they pertain to non- business travelers. Please help United answer the six questions posed below. Discussion Questions 1. According to the data collected from United Airlines and presented in the above multi-attribute matrix, describe five useful pieces of information for future mana- gerial decision making. 2. According to the data collected from United Airlines and presented in the above multi-attribute matrix, which airline is preferred by non-business travelers? 3. Compared to the airline preferred by non-business travelers, which attributes should United Airlines seek to improve? Which attributes should receive the most immediate attention? 4. After flying with United Airlines, passengers were asked to record their perceptions regarding their experience pertaining to each of the decision-making criteria. The results are displayed in Table form below (expectation scores were obtained from the original multi-attribute matrix. Given this information, determine the size and direction of the service gap and whether customers were dissatisfied, satisfied, or delighted UNITED AIRLINES EXPECTATIONS UNITED AIRLINES PERCEPTIONS DECISION-MAKING CRITERIA 8 8 Price 9 8 10 10 8 7 Flight Schedule Destination Baggage Fees Leg Room In-flight Entertainment Options Timeliness 8 7. 7 8 7 9 5. If United's customers' expectations are misaligned with their actual perceptions, what can United do to correct the situation so that in future purchase decisions, accurate rankings are entered into the consumer's multi-attribute matrix? 6. Discuss the pros and cons of United Airlines actively pursuing non-business customers. choice, sh ravelers attribu ceive ir pe the crit stai ise Short Case Presentation Each group will analyze a short case and present to the class in the form of a Powerpoint . approximately 15 minutes and include: th sa 1. Summary: A very brief summary of the facts presented. (10% of the grade) 2. Problem: This should be an objective statement of the problem(s) in the case. (30% of the grade) 3. Analysis: Analyze the problem(s). Make specific references to evidence you found in the case that suggests there is a problem, and be as precise and detailed as possible. (30% of the grade) 4. Recommendations: Be sure that your recommendations follow from the analysis. Be specific, precise and clear in your recommendations. Explain why the recommended course of action is the strongest one. Justify your conclusions. (30% of the grade) NOWDROINT SIDES ON THE SAME DAY
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United airline is one of the three largest airlines in united states.
It serves at least 200 domestic flights and 3300 international flight in a
Its success has been led by:

Its strategic business location serving almost all states and having
hubs in crucial states such as Chicago, Francisco, and Denver.

low-price strategy

having different destinations,

its professional flight attendants and personnel

offering different classes for different status of people

Its successful has been mostly on the business class which in
most cases it is paid by the travelers' employee.
Its customers focus on its scheduling and timeliness in which
the airline has put a lot of effort in providing.
Despite all these successes, the airline has been faced with
low clients and success in non-business flight. This called for
a crisis meeting to identify ways of marketing the nonbusiness class fligh...

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