AirAsia Consumer Behaviour

Introduction

AIRASIA:

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AirAsia is a Malaysian firm, that launched the Low Cost Carrier service to the home market and ultimately the asian region. Currently AirAsia is the leader in this market segment. Before it becomes the AirAsia that everyone knows at present, AirAsia was a poorly carried out company owned by a government-link firm (GLC) in Malaysia, DRB-HICOM. In 2001, it was bought to the current owner, Tony Fernandes and its TuneAir company, for a sum of only RM1.00 or approximately US$0.30, together with its accrued debt of RM40 million (AirAsia, 2008).

Within two years, Tony Fernandes exceeds everyone’s expectations, and turned AirAsia to a revenue making firm. By the third 12 months it was listed in the Kuala Lumpur bourse with excellent IPO (initial Public Offer) of RM717.4 million (AirAsia, 2008).

In 2006, the AirAsia was given using LCCT terminal in Malaysia, as a result of its passenger load have expanded to such a capability. This project will describe how AirAsia, managed to become the corporate it’s today, started with a fleet of only one plane in 2001, to a fleet of seventy two aircrafts, flies over sixty one domestic and 108 international destinations, and operates over four hundred flights every day from hubs situated not solely in Malaysia, but also Thailand and Indonesia, and launched AirAsia X for longer haul flights with its wide-body aircrafts, via the eyes of Consumer Behaviour, from psychological drivers, sociological drivers and consumer choice making course of.

Psychological Drivers of Consumer Behaviour

There are psychological drivers that affect the consumer’s behaviour. They are; motivation, perception, learning, values, beliefs and attitudes, and lifestyle, are helpful for intrepeting the consumer’s shopping for process and directing the company’s marketing efforts.

Motivation.

Motivation is the energizing pressure that causes conduct that satisfies a need. The wants are hierarchical, from the fundamental of it and better.

Hierarchy of Needs

From this Maslow’s Hierarchy of Needs, earlier than AirAsia, air travel is generally thought-about in the larger hierarcy of needs, esteem, the place some folks intend to indicate others their capacity to journey by air, and visit destinatations that others can’t. This is what AirAsia realized, they created the tagline “now everybody can fly”, hence creating the awarenes to the folks, and likewise created the motivation that now air journey isn’t any longer thought of in the ‘esteem’ hierarchy of wants, folks can travel just to fulfil their Love/Belonging wants, whether people journey to hunt the ones they love, friends or family, or they journey to please these loved ones, similar to holiday locations, by air.

Means-end chain

Means-end chain comply with a time-honered strategy for excited about motivational issues. The central premise — that objects have worth solely as a end result of they produce desirable penalties or enable one to keep away from adverse consequences — is on the heart of most trendy conceptualizations of motivation (Atkinson, 1964, Lewin, 1951, Tolman 1959).

The above chain exhibits that at the finish of the day, a client who buy AirAsia as way of their air travel, may have excess cash to avoid wasting or to spend on one thing else of their journey or vacation.

The ad above, reveals that due to the AirAsia’s cheap worth of airticket to London, consumers get to spend their money on something else, like buying and visiting heritages places in London. AirAsia marketing people created the motivation of a fascinating penalties if client purchase their service

Perception

Perception is “the strategy of assembling sensations into a useable mental representation of the world,..perception creates faces, melodies, artworks, illusions out of the raw material of sensation” (Coon, 1983) or to summarize, is the process by which physical sensations are chosen, organised and interpreted. Individuals with the identical want won’t buy or choose related merchandise or service as a result of difference in notion.

From the perceptual process model above (Solomon, 2006), AirAsia succeded in creating stimulations and attentions, and attempt to generalized the perception of people that now everyone can fly. Obviously they stimulate the sights first, by using the identical tagline in every advertisements, media and on-line and billboards. Thus, shoppers bear in mind this information, which ends up when they need to purchase an airline ticket, AirAsia is the first choice involves mind.

Learning

Learning is “the process by which relatively everlasting changes happen in behavioural potential on account of experience” (Anderson, 1995). AirAsia’s advertising people perceive consumer’s learning course of affecting their determination making.

Behavioural Learning.

Repeated exposure to an expertise will end result within the process of growing an computerized response to that specific situation. In the AirAsia case, the company is trying to develop that automatic response is choosing AirAsia as their airline, everytime a customer desires to purchase an airline ticket. e.g: As AirAsia owns by Tune group who additionally owns the Hotel chain of Tune Hotel, the corporate capable of promote air tickets along with lodge fares, resulted in cheaper and convenient way to journey. Customers learned that via the website, they’ll purchased the air ticket along with resort. This resulted in repeated behaviour of buying AirAsia ticket, as the customer discover it extra handy.

Cognitive Learning

AirAsia is making an attempt to make connections between the two ideas of buying airline ticket together with the hotel. But now, as the customers uses the AirAsia web site to purchase the air ticket, they’ll additionally choose a wider vary of lodge decisions, not simply the AirAsia’s personal Tune Hotel Chain. AirAsia by way of their web site now additionally act as an agent, where customer, as they’re saving cash by shopping for airasia’s ticket, have the choices to spend more whether to indulge in additional luxurious means of staying, by selecting extra luxurious motels that now out there within the company’s web site.

The above screenshot of airasia’s website shows that cosumers should purchase airticket and resort vouchers on the same time.

Brand Loyalty

One of the finest way of doing applicating studying rules by AirAsia is introducing their reward programs to AirAsia’s prospects, there are the frequent flyer miles, or free ticket, or vacation vouchers to disclose to its prospects. These issues reinforce their behaviour and build model loyalty towards AirAsia itself. AirAsia is trying to teach the people, they themselves turn into the catalyst of the educational course of.

The end result of studying is memory. By placing inputs and knowledge out there, “now everybody can fly”, even the people who are not in wants of air journey, learned that there is now an inexpensive approach to fly. Hence, this info is recovered from reminiscence when these shoppers are in need of air travel, and choose AirAsia.

Beliefs and Attitudes.

Beliefs and attitudes play an important function in influencing the shopping for decisions of customers. No matter how good the service is, but if the patron feels it is ineffective, he/she would never buy it.

From the attitude-towards-the-ad fashions, AirAsia, creates such an exposure to adverts for shoppers, with the identical theme of purple and white, of their billboards advertisements, website’s look, magazine and newspaper’s ads, thus affecting the beliefs in course of the AirAsia brand.

Constant publicity to these ads and commercials, with purple and white colored themed, create the angle of selecting AirAsia, when the time is come for shopper to select.

Lifestyle.

A person’s activities, interests and opinions, often resulted in that explicit person’s way of life. The expertise nowadays created a new way of life in people’s life. Internet and smartphones is turning into increasingly more necessary to individuals. AirAsia recognized this, beside web site as their buying portal, now folks additionally should purchase air ticket and resort voucher as properly via their smartphones, by creating software for smartphone’s plattforms similar to iOS and android.

Sociological Drivers of client behaviour

Personal Influence

Personal influences resulted from the interaction between one particular person and others. These influences can also come from opinion leaders, where one individual can exert sure infulence over different people. e.g., in a working setting, when a manager determined to make use of AirAsia, even for his/her private travel, his/her subordinances might be influenced to do the same factor.

Reference Groups

When a certain individual appears to a group of people, as a basis of self-appraisal or as a supply for personal requirements, these group of people may be considered as Reference groups. Marketers should perceive: how groups influence particular person behaviour, how group influences differ accross products and brands, how to use group influences to develop effective strategies. Recognizing these groups may help the advertising individuals of AirAsia for their marketing methods. There are three types of reference teams to create a difference in advertising implications:

3.2.1. Membership group.

A membership group is the place an individual is actually belong to.

Aspiration group

An aspiration group is a bunch the place a person wish to be indentified to.

Dissociative group

A dissociative group is a bunch the place one individual needs to maintain up a distance to, because of differences in values or behaviour.

The Family

Differential affect of members of the family can affect the pruchasing choices. AirAsia acknowledged this by introducing one credit card for all transactions in their house web site. In asian area, in a family, decision normally carried out by the top of the family (the father), or the one who is providing for the whole family. Thus, even where a scenario like a joint determination making is arised, the daddy who has the biggest revenue normally make the decision. In their web site, a father, can create a username, which already included with all of the credit card’s data. In this case, any member of the family who wants to buy air ticket can simply use their husband’s/father’s username.

Social Class

Social class is a comparatively everlasting, homogeneous divisions in a society into which individuals sharing related values, interests, and behaviour are grouped. The determinant of social class usually include occupation, supply of income and education. AirAsia’s marketing methods and advertisement noticed these social classes in society, especially the middle-class. The rise of middle-class economic system in asia pacific area created extra value-oriented consumer, the place worth for money is essential. Co-workers, college students even housewives group can now easily travel and spend holiday together.

Culture

Culture refers to the set of values, ideas and attitudes which may be accepted by a homogeneous group of people and transmitted to the subsequent generation. The South East Asian region, where AirAsia is predicated, is translated to a growing market. By studying the shopping for patterns of these people, AirAsia can targeted their marketing methods. These rising market in South East Asia, which additionally recognized by the rising economies, means increasingly people have an extra disposable income. The South East Asian people are easily affected by others. A trend is definitely shaped, if a group of workers, families or college students are using AirAsia to journey and explore new places and shared their experiences by way of social media, it could simply influence other similar groups within the society to do the identical thing.

Consumer Decision Making process.

Problem recognition.

First stage of the consumer determination making course of is the issue recognition. At this stage, a shopper is perceiving a necessity. In AirAsia’s case, is the need to travel. In some AirAsia’s commercial, the marketing folks reveals a quite a few travel vacation spot, with every separate personal picture, and shows how low cost it is now to get to these locations by utilizing AirAsia as their airline. Hence, it is underlining the necessity of the people. This relates to advertising combine, of PRODUCT, PRICE and PLACE. For PRODUCT and PRICE, no airlines earlier than airasia can provide this low fare of airtickets. As for PLACE, airasia provides more destination regionally than any other airlines and additionally have new sales office in main cities not simply in Malaysia, but additionally Indonesia and the Phillippines. Another factor, the internet reserving, how airasia manage to save tons of consumer’s time in purchasing of airticket, people can now purchase their airtickets on-line, and even from their smartphones.

The advert reveals how cheap it’s to journey to Paris. The must journey, especially abroad, possibly as honeymoon, is already there, however now AirAsia, with these commercials everywhere, is enhancing that need.

Information search

The data search by the consumers, clarify what options are there out there to them. Which airline is the cheapest, which one is essentially the most snug, problem free and so on. There are two steps of knowledge search;

Internal Search.

Internal search is the place one search one’s memory, recall any earlier experience or data, on this case, associated to air journey. An individual might remember how exhausting it’s to buy a ticket utilizing a physical store, the place the need to be on the journey agent physically and bought the ticket. In marketing combine, PROMOTION, airasia is going all-out with their “now everybody can fly” tagline. Consumer can see this tagline in all places; billboards on roadsides, magazines, newspaper, even on news web site as pop-up advertisement. Airasia is trying to plant this tagline inside everyone’s mind, therefore, by the point they wish to purchase airticket, they immediately keep in mind of airasia’s “now everybody can fly”.

External Search.

Sources for external information are normally family and friends, public sources, and marketer-dominated supply. Marketer-dominated sources are where AirAsia’s advertising staff excelled at. Their promoting aggressive everywhere and media, their websites are continuously updating with new time-limited promotions, inflicting folks to access it extra usually. Now, consumer’s can even subscribe for their newsletter by emails.

In relation to advertising combine, airasia present new PRODUCT/SERVICE. The screenshot above exhibits AirAsia comes up with hassle free web site, with its flash page technology, that exhibits multiple locations photos that all the time altering within the house web page.

Evaluation of alternatives

At this stage, a consumer is evaluating what are the alternatives of choices he/she has. The company will all the time enhancing what are their superiorities over competitors. PRICE is one obvious thing why client choose AirAsia, theirs will often cheaper than others. Other method doing that is at all times one step ahead in the know-how aspect of selling. AirAsia is the first airline that offering on-line purchasing via the internet. Now, the place other low-cost airline also have the identical characteristic on their web site, AirAsia have provide you with smartphone application. This software could be downloaded to a consumer’s smartphone, and he/she can simply make flight queries or buying ticket(s) or even shopping for hotel voucher, simply through the use of his/her smartphone.

Purchase decision

At this stage, client are making their decision by which airline service to determine on. AirAsia’s advertising individuals understand on the previous levels of CDP, they have excelled. Hence, at this stage, their marketing combine, PRODUCT, PRICE, PROMOTION and PLACE of AirAsia have succesfully goal the consumer and guiding them into purchasing their service.

Postpurchase behaviour

At this stage, the patron compares the service they bought with expectations and is either happy of dissastified. Expentancy disconfirmation with performance strategy (Oliver, 1997) and the balancing paradigm (Fournier and Mick, 1999) are two present theories of client satisfaction. Satisfaction extra more probably to result in repeat purchase/loyalty and positive Word of Mouth (WOM). Dissatisfaction more likely to lead to brand switching, complaints and negative word of mouth (WOM). In AirAsia’s case, they attempt to reduce the consumer’s expectations as little as attainable.

The two footage above are the screenshot of airasia web site when consumer buying airticket. It clearly shows that passengers is not going to get in-flight refreshment, no complimentary luggage, no alternative of seats, except they purchase all of these things in the web site. By doing this, AirAsia managed to get their customer’s expectations as little as potential, beacuse they don’t promise other than the service that you just, as a customer, already purchased on-line.

Conclusion

Airasia has established themselves as a profit making company and a succesful low value service that prompted different airlines in the south east asian area to do the similar factor. This company build their brand name with their tag line “now everybody can fly”, telling people who flying is now more inexpensive and simple. This tagline is also shaping their advertising combine. For their Product, Price, and Place, airasia clearly launched a new means of flying by airways, an inexpensive and simple one. At Consumer Decision Making process, the Product and Price influenced consumer at the Problem recognizition and Information search step process. With Promotion, they influence the steps of Information search and Purchase determination in the CDP process. Airasia is so aggressive of their promotional activities, by placing their tagline “now everyone can fly” in each advertisement and commercials.

By understanding the psychological drivers and sociological drivers of consumer, airasia have executed its marketing plan briliantly, placing the kind of commercial that appropriate. By understanding the Consumer Decision making course of, AirAsia present what type of values that consumer seeks and asses within the information search, and evaluation of options phases. By the time consumer making their buy choice and postpurchase behaviour, these values are good enough to make them purchase airasia’s service and by not giving the patron excessive expectations from the first time, the satisfaction rate from client is excessive. The succes story of AirAsia advertising strategies exhibits how necessary it is for a brand to grasp the psychological drivers, sociological drivers and the decision making strategy of client behaviour.

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