Verified Document

Consumer Behavior Segmentation Targeting And Positioning Term Paper

Consumer Behavior: Segmentation, Targeting, And Positioning Consumer Behavior

Key External Factors. The airline industry is susceptible to changes in the environment that stem from natural causes and man-made causes. As with any transportation industry, a fundamental and consistent external factor that influences the airline industry is weather. Many other external factors can be ameliorated to one degree or another by direct action of the airline companies. Weather triggers unavoidable adjustments and accommodations, many of which are the bane of airline customers and airlines alike. Additional external factors that the airline industry cannot influence to any great degree include the cost of fuel and the cost of labor. The Air Transportation Association reports that the primary expense of running an airline is the cost of paying the wages and salaries of pilots, flight attendants, reservations or check-in and ticketing staff, baggage handlers, customer service representatives, dispatchers, marketing and sales, IT staff, and maintenance mechanics. The second largest expense in the airline business is fuel, a variable that shows fluctuation across carriers according to the efficiencies of airplanes and the type of haul that occurs. Short hauls generally are less fuel efficient because of the high levels of fuel consumption during takeoff and landing. Regional disruptions around the globe can have dilatory impact on international carriers. External variables that the airline industry can influence over the long-term include the route structures and the capacity of airports.

Moreover, the costs associated with maintaining and upgrading in the airline business includes facility and fleet costs. Airlines can certainly negotiate contracts to lower the costs of leasing, buying, and maintaining their fleet. Nevertheless, competition is keen and for some travelers, accessing online maintenance data is a variable in choosing an airline for their...

Considering the airline industry overall, there are distinct types of services that are associated with particular market segments. The segments identified by the U.S. Department of Transportation (DOT) include: International, national, regional, and cargo (Rothman & Jasper, 2011). Categorically, international airlines earn annual revenues in excess of $1 billion, national airlines are considered to be those with revenues of $100 million to $1 billion, and regional airlines generally provide short-haul flights that contribute to annual revenues of $100 million.
With high levels of mergers, acquisitions, and consolidations in the airline industry, segmentation has constricted to large enterprise carriers and niche participants (Rothman & Jasper, 2011). The smaller niche segments tend to focus on route, by providing service between two heavily trafficked commuter points or feeder routes, or price, attracting customers through lower overall costs or options that enable travelers to orchestrate the actual cost of their travel according to their budget.

Positioning in the airline industry is driven by factors important to travelers -- factors that influence whether and how a customer differentiates an airline. Travelers can access a considerable amount of information about particular airlines online, and the airlines tend to be heavy purchasers of television media. The comparative strengths and weaknesses of the different airlines fall into several categories that are well-known to customers who fly frequently. These attributes include the following: Ticket cost, customer service, operating efficiency, flight type offerings, service offerings, technological advancements, and -- of necessity -- economic recovery.

Flight Class Target Markets. The flight class options offered by most airlines are another layer of segmentation, which is characterized by optional…

Sources used in this document:
References

Mouawad, J. (2104, January 30). Southwest and JetBlue buy Washington airport rights. Business Day. New York, NY: The New York Times. Accessed http://www.nytimes.com/2014/01/31/business/southwest-and-jetblue-add-flights-at-reagan-national-and-la-guardia.html?ref=southwestairlinescompany

Rothman, A., & Jasper, C. (2011). The unbearable heaviness of business class. Business Week (December 19)1. Available 5/4/12 through EBSCO database. Structure of the airline industry (n.d.). Littleton, CO: Avjobs. Available 5/4/12 at: http://www.avjobs.com/history/structure-of-the-airline-industry.asp

Stellin, S. (2012, September 12). Budget airlines fly south. Travel -- The Getaway. New York, NY: The New York Times. Accessed http://www.nytimes.com/2012/09/16/travel/budget-airlines-fly-south.html?ref=jetblueairwayscorporation

Wen, C-H. And Yeh, W-Y. (2010). Positioning of international air passenger carriers using multidimensional scaling and correspondence analysis. Transportation Journal (Winter):10. Available 5/4/12 through ProQuest database.
Cite this Document:
Copy Bibliography Citation

Related Documents

Consumer Behavior the Transition of
Words: 2900 Length: 10 Document Type: Book Report

Support for global phones Medium to High. Social events are pervasive during skiing season Medium to High; on Tours there is much planned out and taken care of; a chance to enjoy the sites and visit historic places High for shopaholics; boring for anyone who doesn't enjoy this type of activity Cost From $2,000 to over $10,000 per person Less than $100 for camping out in a tent to over $2,000 for a cabin rental From

Segmenting, Targeting, and Positiong for
Words: 885 Length: 3 Document Type: Term Paper

As such, age differentiates potential customers into three categories: young consumers of ages up to 20, potential clients of ages between 21 and 56, and clients older that 57. The first group of consumers is not the ideal target market, as young people rarely have sufficient money to travel and stay in luxurious hotels. The greater emphasis will be placed on the second group as its members travel and

Organization Behavior Nike Marketing Analysis Business Environment...
Words: 1304 Length: 4 Document Type: Essay

Organization Behavior NIKE Marketing Analysis Business environment consists of numerous factors and forces that impact the business organizations' ability to operate competitively and profitably in their industry. These forces exist at both micro and macro levels and require the business organizations to show quick response to the uncertainties and complexities which may arise in the business environment from time to time (Cadle, Paul, & Yeates 2010). These forces impact each and every

Organization Behavior Marketing Report for
Words: 6235 Length: 17 Document Type: Assessment

In its Pavilion dm1-3101ea laptop, Hp has used the latest technology to make this product the most innovative, fastest, and the most liked electronic gadget in the market (Dixons 2011). To stay competitive, HP has to keep on introducing the latest models of its Pavilion laptops so that no other competitor can snatch its market share. Social factors: Social factors such as education, income levels, preferences, and other cultural factors influence

Buyer Behavior and Communication Strategies Applied Management
Words: 2040 Length: 7 Document Type: Essay

Buyer Behavior and Communication Strategies Applied Management The Toyota Motor Corporation The Toyota Corporation, a Japanese organization of automotives, is popular for the successful innovations and manufacture of the Toyota vehicles and other products. The Toyota vehicles have many profound advantages and benefits. The Toyota users, who are beneficiaries, have agreed that the Toyota product has always observed the sustainability issues, of economical use, society and the care of the environment. Toyotas vehicles

Market Strategy and Market Segmentation
Words: 1189 Length: 4 Document Type: Marketing Plan

Oakley Pro-Lenses Marketing plan Market Strategy and Market Segmentation Presenting the brand It is important to know what role plays one product in our lives, that's why to fulfill all the customer needs requires a set of processes. In order to see how the new product will fit in the market, we conducted a marketing plan for releasing successfully Oakley ProLenses. Oakley is one of the most loved brands of sunglasses, being known worldwide

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now