07 - Marketing & Customer Value Flashcards
What is the concept of customer value of air transport about?
It’s about utility maximization.
Talking about air transport, what do we need wo know first?
Which market are we in? Mobility? Transport? Tourism? Information etc?
What is the problem with airline customer segmentation?
It is getting more difficult as passenger are hybrid + normally you come up with many significant groups –> very difficult to market
Which types of segmentation do we have?
- situational segmentation
- socio-economic and demographic
- psychographic segmentation
How do airlines develop “products”?
define which benefits belong to with product level
Which three elements are in the strategic triangle and where do airlines get strategic advantage?
Market, Networks and Resources
–> big game is about resources: customer loyalty, brand, hub dominance, service levels and innovation
What is the problem with inventing new cost structures for passenger?
They do not think through what happens at the customer front end. If you suddenly have to pay for everything you have many angry customers although it might be cheaper for them
Is e airline experience only about the flight?
No it starts from customer acquisition to after flight service. Some parts you can’t influence.
Definition of Customer Value
consists of perceived benefits and extra-benefits of the customer in the process of collaboration and for the effort service of the supplier.
Why is the Customer Value a risk?
because it is a perceived customer benefit which stands in relation to relative perceived benefits & costs
Why is the topline customer group of for example Miles & More so important?
Because they only make up for 3% but they generate 47% of the Miles & More revenue. So you do everything you can to help them
What are loyalty programs?
Specific marketing instrument, integrated system of marketing, value creating programs, creating an emotional relationship
What is the difference between stated and hidden preferences?
Customer behavior can be explicit and implicit
Explicit: stated preferences are affected by actual condition
Implicit: hidden preferences will be published unconsciously and represent almost real sensation
What are possible reactions of the management to overcome errors of stated answers?
Own expertise
Focus groups
Complex statistical methods
How can you measure company success?
- market success: value maxamization
- commercial success: profit maximization
