Company backgroundConsumer behavior is described as the research on the procedures involved when people select the commodities or services with regards to purchasing products within the market. In most organizations consumer behavior us conducted by companies to retrieve a deeper understanding of the consumer needs in the market.
This report will explore the consumer/buyer behavior of Emirates Airlines, which is among one of the most prosperous air flight company in the world. As Emirates website mentions, Emirates Airlines entered into market the air flight market in 1985 after Dubai’s government raised $10 million to start the company. The capital was invested in the purchasing of commercial airlines and construction of several airstrips in the country. Initially Emirates Airlines purchased two commercial aircrafts they were Boeing 737-300 and Airbus A300. The two aircrafts were used to ferry passengers from Dubai to parts of Asia where the company had several travel agents. In 1987, Emirates increased the capital investment by purchasing more aircrafts top grow their luxurious branded Arline. These days Emirates is ranked as one of the largest air flight companies with over 170 aircrafts and more than 50,000 operational staff.
The company has been experiencing the best financial performance with average annual revenue improvement of 10%. Continuous revenue growth in Emirates has thus led to the expansion of the capital investment in the company. Due to the high demand of the Emirates flight services the airline now travels to over 120 destinations in over 70 countries around the world. Due to the high passenger flow of carrying over 34millionn passengers per year emirates is defiantly known to be one of the best airlines anyone is yet to experience. Emirates have 3 different classes to cater to the needs of all customers in the market ranging from economy to high first class travelers.
The three classes offered by the company have different features and services that suit the needs of the customers. As revealed by Delmar-Morgan (2012), in Emirates first class is one of the most lavish classes provided by the company due to the provision of luxurious facilities by Emirates Company. Emirates shopping environmentEmirates are one of the flight companies that have created a conducive environment for the customers to buy flight tickets.
Recently Emirates has taken a major transition in the provision of extra luxurious services to the travelers. Ensuring travelers to feel a sense of luxury in all their tiers. Provision of luxurious services such as dining and shelter services has motivated the majority of travelers to access the flights continuously. Additionally, the company prides itself to having excellent customer service that provide luxurious meals that preferred by the majority of travelers using the flight services. Emirates airlines cares about the detailing when it comes to going the ‘extra’ mile Emirates is the Airline to travel on. The fine detail include, real cutlery on the inflight service as opposed to plastic knives and forks.
Other luxurious services provided by the Emirates Airline are bedding and entertainment. As customers may find that entertainment now days is offered in most airlines Emirates have been known to have a wide selection ranging of different genres and categories from around the world of Music and Movies. With regards to the bedding customers will find that even in economy you will receive ‘cashmere’ like blanket, a pillow and comfortable headphones. As stated by Holloway (2017), business organizations that provide a suitable buying environment are more likely to generate a higher turnover than their competitors. Buyer environment has significantly boosted revenue generation in the company due to high customer preferences within the market.Unlike other airline companies, Emirates has created an environment where all travelers are free to give their personal flight experience. At the end of each flight the captain will announce that each passengers experience is valuable and to show this is if they are to complete a survey they are in the chance of winning a prize draw.
The use of online feedback platforms such as Facebook and website has created a strong relationship between the company and customers enabling other customers ‘friend’ to be able to view one another’s experience. Customer feedback generated by Emirates has created an enabling shopping environment for the other customers to want to feel they can trust and travel with Emirates. Neises (2013) argue that organizations with higher customer relationships have more chances of securing competitive market position. The use of online feedback programs has also allowed Emirates to connect with new and potential customers in the market. In the business environment, the majority of people rely on the outcome of feedbacks and reviews when making purchases from new companies. In the past years, Emirates are valued on providing services the highest satisfactory to the travelers and ensuring that they sustain that position by continuingly providing surveys and putting their customers ‘first’. Hussain et al. (2015), claims that Emirates top management has invested in Total Quality Management (TQM), which is one of the vital aspects in the creation of suitable purchasing environment.
The use of TQM policy by the top managers in the company has allowed the company some of the weaknesses, such as poor service provision by the employees. To achieve a higher customer satisfaction, the company places a very high value on online customer feedbacks, which will portray a true company image. As a part of creating an enabling purchase environment, Emirates has developed different pricing strategies that attract more customers within the market. The pricing strategy ranging In this case, the company has affordable prices for the first class travelers in every corner of the globe. The pricing system developed by the company management is quite affordable as compared to other air travel firms. Provision of affordable flight services by the company has continued to attract more customers. Other pricing strategies adopted by the company include the use of different pricing strategies in different nations.
For example, the pricing system for the Emirates is higher in the developed nations as compared to the third world states such as African countries. Hussain, (2016) affirms that the use of varying flight charges in different countries has been developed to suit the needs of all customers in the market. The management at Emirates Company has also concentrated on providing services that account for the customer’s money. For example, most of the services provided at the first class have been termed as services that are worth the traveler’s cost. Accountability and transparency in the service provider have given Emirates a good market reputation thus attracting more travelers.
Customer perception of EmiratesCustomer perception is defined as the manner in which customers view and think of the company goods and services provided in the market. Customer perception is the main factor that has significantly motivated the majority of people to use Emirates air flight services. Currently, Emirates is viewed as one of the best air flight companies that provide luxurious services to the customers. The majority of customers in the market have always viewed the company as the “center of luxury”. The perception that the company is the center of luxury has developed due to the provision of high luxurious services to the first class travelers using the company flights. Due to the customer’s perception of the quality of services majority of customers prefer using the first class facility provided by Emirates. Some of the services behind the mentioned customer perception include amazing ‘al a carte’ style meals, drinks, cocktails, champagne, entertainment, beauty therapies, showers and cabins.
The majority of customers in the market have also described the luxuries facilities provided by Emirates as one the most outstanding facilities across the Airline organizations.In the global market, the company has been perceived as the best organization that provides travelers safety. Currently, Emirates Company is thought to be the best company that has the safest air travel facilities. The ideology on the safe flight has motivated the majority of travelers around the world to use the Emirates flight services.
One of the facts that motivate people to think that Emirates aircraft are safe is due to using modern air technology. Unlike other air travel company, Emirates uses superior technology in the management of its aircraft. Other factors that make people view Emirates flights include the use of highly skilled pilots and powerful aircraft. The culture of recruiting highly skilled pilots by the company has led to the perception that Emirates flights are always safe to use. As echoed by Hagmann et al. (2015), efforts to minimize the number of aircraft accidents in Emirates has led to the purchase of superior planes that can guarantee travelers much safety.
Due lower incidences of the aircraft accidents majority of people have always viewed the company planes as free from accidents. Other customer perceptions that have inspired travelers to use the Emirates flight services include the ideology that the company is the most convenient to use. Currently, the company has been termed as one of the most convenient flights to use. Emirates have also been termed as a convenient air flight service provider that meets the promises made to its travelers.
For example majority of online feedback claim that the company has minimum cases of delay, unlike other air flight corporations. The perception that Emirates is the most convenient has motivated the majority of people to use the company services to enjoy benefits incurred by other service users in the market. Emirates motivation factorsConsumer motivation is one of the factors that inspire customers within the market to purchase certain brands within the market. According to the Maslow, motivational theory human beings are inspired to satisfy needs after they have realized the urge to do so.
Maslow motivational theory also claim that desire for human beings to satisfy particular need may be influenced by various factors such as learning behavior and organizational influence. Emirates Airline is one of the multinational companies that influence customer motivation needs. The first and most obvious way Emirates influence customer motivational needs through the provision of more luxurious services such as first-class services. The provision of first class services by Emirates has inspired the majority of people to seek the same services in the company (Squalli, 2014).
Compared to other airline companies Emirates first class services have been described as extra decent since they supersede the services offered by some of their competitor. Customers are made to feel every drop of luxury, weather you are flying economy, business or First class. Super luxurious services in the first class have motivated the majority of people to admire the lavish lifestyle enjoyed by the travelers using the facility. A survey carried out by the airline company indicates that travelers feel more relaxed when they are in an environment which they like. Therefore a feeling of profound luxury is sure to set travelers desire to fly with Emirates other compared to other airline service providers in the market. Other motivational factors that have forced people to seek flight services from Emirates include wide market coverage and large investment facilities.
Emirates have established several branches in different countries as a result managing to serve a large number of customers within the market. The company has been termed as one of the top five corporations in the provision of airline services to travelers. The proximity of Emirates services to the customers has extremely motivated many individuals to seek the company services with the intention of enjoying the lavish first class lifestyle. A research conducted by Schmid (2011) asserts that ag of goods near the customer’s base inspires many people to taste and develop a preference within time.
In the case of Emirates, establishments of the services in most of the corners of the world have extremely motivated people to seek services from the company thus raising the demand for the Emirate flightsEmirates customers’ attitudeAs described by Solomon et al (2016) behavioral learning is one of the factors that motivate consumers to make purchases from particular organization. According to the behavioral learning processes, theory individuals change consumption behavior after interaction hence causing a transition in the consumption patterns. After learning from other individuals then adopt a specific consumption behavior of different products. O’Connell (2011), majority of customers within Emirates learn of the first class services from friends. Learning of the company services by individuals has led to continuous demand of the Emirates airline services around the globe. Prevalence of learning environment has also created a conducive marketing communication where the gents are able to educate people on various benefits of the services offered by Emirates.
In order maintain the positive attitude from the customers in the market Emirates has invested many resources in developing unique services. Creation of unique attitude has aided customers in distinguishing Emirates from other competitors in the market. The attitude of the company towards the marketing of its services has been to develop special services that are not within the market.
Provision of unique services by Emirates has led to the continuous development of positive attitude within the world market. It is evident that the services offered in the first class by Emirates Company are only available in few of the competitor airline corporations. Provision of unique services within Emirates has not only boosted the positive attitude towards the brand but has also increased the company popularity in the market. As researched by Neises (2013), product differentiation strategies play a vital role in improving the reputation of organization within the market. Decision-making strategiesEmirates have a special decision-making system that aims at involving the company consumers in service provision matters. In the past years, the company has been targeting customers in the decision-making operations.
As a part of consumer involvement in the decision, making Emirates relies on customers’ views and feedback when making a decision. For example, the company has a suitable online platform that allows all customers to give views and feedback on the services offered in the market. Involvement of consumers in the decision-making procedures has extremely strengthened the relationship between the company and the clients.
Presence of a strong bond between Emirates and its client has made it easy for the management to run the company since customer complaints are minimized. Research by De Boer (2017), state that organizations that involve consumers in the decision-making procedures have higher chances of securing vibrant market reputation. Conclusion After a long period in the market, participation Emirates has successfully secured about 40% market share. Compared to other airline companies in the globe Emirates has made a great transition to the maintenance of vibrant market reputation. The great financial success of the company can be linked to the existence of a strong relationship between the organization and its customers in the market. Further Emirates Corporation has more long-term goals that aim at securing a greater market share in the coming years.
Some of the organizational goals set by the company include global dominance in the airline industry and achieving 60% market share. As part of accomplishing success within the market, the company has developed a strong framework that provides high-quality services to consumers. Recommendation As seen throughout this report Emirates is a highly viewed high performance and good value company. Having said this Emirates should be aware of two major upcoming airline companies, which include Singaporean, Luthfansa, Swiss and Turkish airlines . All these airlines have been at the top position competing to secure a strong position in the market in the past. Although Emirates have a unique strategy to maintain their brand they will need to view strategies from other competitors which also rank in high positions.
Other measures that should be applied by Emirates management include the continued development of unique services in the market zone.In conclusion every customer/consumer should take on their slogan ‘Come fly with me’ and experience the Emirates experience.ReferencesDe Boer, E.R., 2017. Strategy in Airline Loyalty: Frequent Flyer Programs. Springer.
Delmar-Morgan, A., 2012. Fuel Costs Slam Profit at Emirates Airline.
The Wall Street Journal.Emirates group website. https://www.emirates.com/english/about-us/Hagmann, C., Semeijn, J. and Vellenga, D.
B., 2015. Exploring the green image of airlines: Passenger perceptions and airline choice. Journal of Air Transport Management, 43, pp.37-45.
Holloway, S., 2017. Straight and Level: Practical Airline Economics: Practical Airline Economics.
Routledge.Hussain, R., 2016. The mediating role of customer satisfaction: evidence from the airline industry. Asia Pacific Journal of Marketing and Logistics, 28(2), pp.234-255Hussain, R., Al Nasser, A.
and Hussain, Y.K., 2015. Service quality and customer satisfaction of a UAE-based airline: An empirical investigation. Journal of Air Transport Management, 42, pp.
167-175.Neises, L., 2013. Social CRM in the airline industry: engaging the digital natives (Vol. 7).
LIT Verlag Münster.O’Connell, J.F., 2011.
The rise of the Arabian Gulf carriers: An insight into the business model of Emirates Airline. Journal of Air Transport Management, 17(6), pp.339-346.SCHMID, V. (2011). Consumer behaviour in the airline industry. Place of publication not identified, Grin Verlag Ohg.
SOLOMON, M. R., BAMOSSY, G. J., ASKEGAARD, S.
, & HOGG, M. K. (2016). Consumer behaviour: a European perspective.
, 2014. Airline passenger traffic openness and the performance of Emirates Airline. The Quarterly Review of Economics and Finance, 54(1), pp.138-145.