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Advanced Strategic Management- International Airline Industry - Essay Example

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Advanced Strategic Management- International Airline Industry

This is to prevent the loss of current business and attract new customers ones at a minimal cost.
      This study explores the relationship between customer service, customer satisfaction and the factors that encourage customers to choose and remain with specific airlines. In particular, this study evaluates the customer satisfaction among North American airline passengers and the quality of customer service of corresponding airlines.
      A survey was used to gather the feedback of XYZ airline passengers at NYC airport. The survey items focused on the eight factors designated as independent variables. The independent variables considered were X1 – Delays (external forces such as weather), X2 – Culture (company), X3 – Prices/Frequent Flyer Programs, X4– Flexibility, X5 – Schedule, X6 – Employees, X7 – Quality of Product/Services (comfort), and X8 – Security.
      The importance of customer service and the corresponding customer satisfaction cannot be undermined. Ventures can succeed only if there are customers. Since they are the ones who keep businesses running by bringing in profit and supplying feedbacks, it is essential to keep them satisfied. Customer satisfaction, also called user satisfaction, is defined simply as “a qualitative measure of performance as defined by customers, which meet their basic requirements and standards” (TechTarget, 2007). This definition has two main implications. First, customer satisfaction is dependent on the performance of the product or service. Second, measuring customer satisfaction involves knowledge of the basic requirements and standards of the customers.
      In relation to customer satisfaction, customer service is a term that characterizes what happens when the customer encounters the business (The Times Newspapers Ltd, 2008). Good customer service is significant because gaining a new customer can cost as much as five ...Show more
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Summary

The National Summary of U.S. flights for 2007 pegs the number of airline passengers at 660 million. By January 2008, this figure has risen to 679 million (Bureau of Transportation Statistics,…
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