Qantas (queensland and Northern Territory Aerial Services Limited) - Research Problem Identification

Case Analysis: Research Problem Identification

Introduction

Qantas (Queensland and Northern Territory Aerial Services Limited) as one of leading brand in Australia, it and its subsidiaries (QantasLink and Jetstar) maintain a significant 65% domestic market share comparatively. However, it encounters the problem that is international lines do not gain as much profits as domestic lines do. Actions such as excluding lossmaker routes, eliminating old airplanes and strengthening the maintenances have been taken, yet Qantas International still consistently operates at a loss.

Qantas has ended its partnership with British Airways and launched a partnership with Emirates recently. This alignment provides one-stop access travelling to Europe and contributes to a more convenient way of travel experience for passengers. As a result, this service offering is the key that brings in its international segment revenue.

Decision Maker’s Key Goal

The goal of the research is to find out how passengers who are travelling to different destinations response to the new service offerings in Europe, for example, reducing two stops to one stop in Dubai. Moreover, is that the new service offerings have the viability in the potential consumers, and when experienced the new service they would to like to recommend Qantas airline to the other passengers or not as well.

Management Decision Problem (MDP)

Management Decision Problem Statement

Should Qantas improve service offering in order to increase its consumer perception and satisfaction?

Rational

To gain customer satisfaction should be the essential goal for marketing activities commonly (. Understanding consumer’s needs and wants contributes to the organization operating successfully in competitive global marketplace today (. Satisfying consumers with the high quality of service could drive the consumer high involvement purchasing intention. According to S.C. Chen, K.S. Chen and Hsia (2005), they point out that a perfect customer satisfaction could be included in manufacturing, design and high quality service. As well as this, it is an effective path for the organisation to attract more potential passengers and maintain the long-term relationship with consumers in the future (Hunter, 2011). In addition, consumer perception has a significant influence on buying behaviour, such as the aspect of individual’s demands, values and expectations (. As customer satisfaction increases, so do the consumer perception improves as well (Bala, 2011). Consequently, it is necessary for the Qantas international line to understand customers’ expectations and requirements so that they can make improvements to increase customer satisfaction.

Marketing Research Problem (MRP)

Marketing Research Problem Statement

To determine customer satisfaction toward services that Qantas offers in order to retain current customers and attract more potential customers.

Rational

When defining the problem, the first look through it is to listen to the inner voice of customers. By identifying what customers need and expect, the company is able to see through customers’ perceptions of, satisfaction with, service. This approach would provide a “blueprint” which integrates customers’ insights such as impression, awareness and consciousness that assists the company to acquire evidences to improve its service delivery. According to Hansen and Steadman (1991), it is vital for the company to identify whether its current services meet and satisfy customers’ needs, since services provided may not be as customers expects. In addition, feedbacks from customers enable the company to disclose its shortcomings and thus improve the performances. Once the services are improved, the satisfied customers are more likely to engage in positive word-of-mouth, leading a way to reach potential customers (.

Therefore, through the process of understanding insights from customers, Qantas then could make improvements on its services and thus it would be more promising for Qantas to maintain current customers and obtain potential customers.

Research Objectives

• RO1: To assess the level of satisfaction that passengers deem toward Qantas’s service offerings.
• RO2: To identify what service elements that customers seek when traveling internationally.
• RO3: To identify the Qantas international line new service quality.

Qualitative research (1) – Repertory Test

The repertory test has become a technique that is applied to consumer research in order to reveal customer’s hidden needs and what is important in his/her mind. It derives from George Kelly's (1955) personal construct psychology and is used to determine how the customer interprets his/her experience in his/her own words. The repertory test is fundamentally made up by four stages: (1) selecting elements; (2) eliciting constructs; (3) comparing the elements and (4) analysing data (. In this process, three elements will be selected and then the researcher will ask the participants to describe how two of the selected elements are similar to each and how they are different from the third. This approach could be used to compare one brand to the competitors and to know what attributes customers perceive toward brands.

To address the RO2, Qantas will be compared with the following competitors: Virgin Australia and Scoot. Some key constructs such as Price, Fees for Check-in Luggage, Safety Concern, Choices of Destinations and Transit Stop(s) are identified as shown in the Table below. According to the table below, it shows that Qantas International and Virgin Australia are quite similar to each, while Scoot has completely opposite traits from Qantas. Regarding the level of customer satisfaction, Virgin Australia has better results out of all. Therefore, Qantas International could view Virgin Australia as a reference, thus to make improvements on its services.