Jetstar Airways: How Modeling Guided the Brand Migration Strategy of a Low-Cost Carrier

2012 ◽  
Vol 4 (2) ◽  
pp. 42-51
Author(s):  
John Roberts ◽  
Peter Danaher ◽  
Ken Roberts ◽  
Alan Simpson
Keyword(s):  
Competitive Advantage ◽  
Choice Model ◽  
Consumer Preferences ◽  
Low Cost ◽  
Initial Position ◽  
Migration Strategy ◽  
Shareholder Returns ◽  
Dynamic Choice ◽  
Perceived Performance ◽  
Low Cost Carrier

Abstract This article describes the application of a dynamic choice model of consumer preferences. It supported Jetstar, a subsidiary of Australia’s leading airline, QANTAS, to effectively and profitably compete in the low-cost carrier marketplace. The evolution of the Jetstar strategy is traced from its initial position through to its efforts to attain price competitiveness and service parity. The model helped service design and pricing initiatives to shift the perceived performance of Jetstar relative to its competitors. It further indicated how the airline could move market preferences towards areas in which it had competitive advantage. The Jetstar market share went from 14.0 % to 18.1 % during the first five quarterly waves of the research, while profits went from US $ 79 million 2006 / 07, before the study was commissioned, to US $ 124 million in 2008 / 09. Today, Jetstar remains the only successful low-cost offshoot of a full service airline in terms of shareholder returns

scholarly journals Service Quality and Customer Satisfaction on Budget Airlines: Kano Model Approach

2019 ◽  
pp. 1-16 ◽  
Author(s):  
Anthony Tik-Tsuen Wong ◽  
Mandy Wai-Man Ho
Keyword(s):  
Hong Kong ◽  
Competitive Advantage ◽  
Low Cost ◽  
Demographic Variables ◽  
Service Model ◽  
Kano Model ◽  
Service Areas ◽  
Low Cost Carrier ◽  
Model Approach

Although low-cost carrier (LCC) airlines do not provide significant service to customer, the demand and market share of LCC is constantly increasing. Services provided by LCC and the quality of their services become a competitive advantage of LCC airlines. The purpose of this research is to identify the factors that are ‘must-be’ dimension after being categorized into five attributes by using Kano Model. 260 responses were collected. The questionnaires include questions about the services factors in the SERVQUAL service model, basic demographic variables and respondents who have taken or not taken the Hong Kong Express before as Hong Kong Express is classified as one significant player of LCC airlines in Hong Kong. The result can give insights to Hong Kong Express to identify their service areas that needed to be improved and paid attention to increase customers’ satisfaction in future.

Optimize the Study of the Dynamic Film Selection

2013 ◽  
Vol 320 ◽  
pp. 768-773
Author(s):  
Tien Kuei Yu
Keyword(s):  
Computer Animation ◽  
High Efficiency ◽  
Consumer Preferences ◽  
Low Cost ◽  
The United States ◽  
Short Film ◽  
Film Properties ◽  
Animation Industry ◽  
Video Library ◽  
Grey Relational

A technical computer animation for dynamic film, animated short film production to Taiwan by customers to move to the development of the continent, a shrinking market worries. Visible the Taiwan in animation foundry (low-cost, high-quality, high-efficiency) industry, no longer is an advantage. The other hand, the industry has also been realized to cartoons of the United States and Japan and therefore positive efforts (toward the direction of home-made animation Fanmei Jun, 2004). Secondly, the computer animation at this stage of the development of animation industry in Taiwan is the weakest that is, the ability of the financial, legal, and international marketing. Due to the creation of the marketing practices of the finished product is difficult to both creators oriented (Hongfeng Yi, 2004). The research basis the Tsou-Hsiang Ju (2008) using conjoint analysis, analysis of four different preference cluster analysis, five kinds of film properties and their rights, grey relational analysis of dynamic video library field to be named; understand the Hall field the eyes of the average consumer selection situation, it is recommended to design products to meet consumer preferences, and to continue to innovate and reform, driven by the digital content industry to flourish in the international market and to keep pace with foreign manufacturers.

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