jet airways javedaslam 0419

M.P. Birla Institute of Management Customer Happiness

1

A STUDY ON CUSTOMER HAPPINESS TOWARDS

JET AIRWAYS

Submitted in partial fulfillment of the award of the degree

of Master of Business Administration of Bangalore University.

By:

JAVED ASLAM Reg. No. 04XQCM6035

Under the guidance of: DR. N.S. VISWANATH

M.P.BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

BANGALORE 2006

id6300171 pdfMachine by Broadgun Software - a great PDF writer! - a great PDF creator! - http://www.pdfmachine.com http://www.broadgun.com


2

DECLARATION

I, Javed Aslam, MBA student of M. P. Birla Institute of Management, Associate Bharatiya Vidya Bhavan, Bangalore University, Bangalore, submit my dissertation report on Customer Happiness towards Jet Airways in partial fulfillment of my course.

This is an original work and the result embodied in this project has not been submitted to any other University, Institution for the award of any degree or diploma.

JAVED ASLAM


3

CERTIFICATE

This to certify that, this report is the result of research done on CUSTOMER HAPPINESS TOWARDS JET AIRWAYS by Mr. Javed Aslam bearing the register number 04XQCM6035, under the guidance and supervision of DR. N. S. VISWANATH, MPBIM, Bangalore.

Place: Bangalore Principal

Date: (Dr. N. S. Malavalli)


4

CERTIFICATE

This is to certify that Mr. JAVED ASLAM, bearing register number 04XQCM6035 has done a research on Customer Happiness towards Jet Airways and has prepared this report under my guidance. This has not formed the basis for the award of any degree/diploma for any university.

Place: Project Guide Date: (Dr. N. S. Viswanath)


5

ACKNOWLEDGEMENT

I thank all the respondents who spared their valuable time to provide me the necessary information without which this report would not have been possible.

I thank Dr. N. S. Viswanath, my faculty guide for giving me the guidance and helping me to make my project practically a feasible one. This project would not be possible without his help.

I would like to show my sincere gratitude towards my principal, Dr. Nagesh Malavalli of M.P BIRLA INSTITUTE OF MANAGEMENT STUDIES, Bangalore for giving me moral support for doing this project well.

JAVED ASLAM


6

CONTENTS Particulars Page No.

Introduction 2 Services and Services Marketing 3 Service Marketing Triangle 4

Service Marketing Mix 5 Conceptual Framework 6 Meaning- Customer Happiness 7 Service Quality Dimension 9

Why organizations think of customer happiness? 11

Industry Profile 13 Company Profile 15 History of Jet Airways 16 Mission of Jet Airways 19 Products and services 20 Achievements 21 Launch of IPO 23 Research Methodology 26 Statement of problem 27 Purpose of study 28 Limitation of study 28 Methodology 29 Hypothesis testing 33 Data Analysis And Interpretation 39 Summary of Findings 52 Recommendations 53 Conclusion 54 Annexure 55 Questionnaire 56 Bibliography 60


7

LIST OF CHARTS AND TABLES

No of table

and chart Particulars

Page

No.

1 Shows the distribution of respondents

according to the purpose of traveling by air 40

2 Shows distribution of respondents according to

preferable airlines 41

3 Shows the ranking of preferable airlines according

to number of respondents 42

4 Shows the distribution of respondents according to

preferred class 43

5 Shows how passengers select the airlines 44

6 Shows the reasons to travels by air 45 - 46

7 Shows opinion of respondents towards Jet Airways

services 47

8 Shows the ranking of the satisfaction level,

according to the airlines services 48 - 49

9 Show percentage of passengers according to their

level of happiness 50


8

EXECUTIVE SUMMARY

There is a growing market for services and increasing dominance in service economies worldwide. There is a huge competition in every business and so in the service sector too. Every company wants to gain competitive advantage on their customers. This study considers customers happiness towards the services of Jet Airways.

Customer happiness is a very important factor to attract and retain the customers. Organizations have realized that it is important to keep their customers happy for the smooth running of their business. Without knowing and understanding the customers satisfaction, feedback and reaction of customers, organization cannot know what the customers want and expect from the organization, especially in service industry such as airline industry.

The study considers various aspects like introduction to service sector, historical background of airline industry in India and companys profile of Jet airways, the background of the study, its research design and methodology. The analysis of the data is presented through various charts and graphs.

From the survey it can be said that Jet Airways is the most favorite domestic airlines in India. The passengers of Jet Airways are happy with its service. The analysis of the survey tells Jet Airways have more delighted and happy passengers compared to Indian or Kingfisher Airlines


9

INTRODUCTION


10

INTRODUCTION

Its been recognized that services present special challenges. Attraction, retention and building of strong customer relationship through quality service are the heart of service sector industries. Services are deeds, processes and performances. Broadly it can be defined as follows:

Services include all economic activities whose output is not a physical product or construction, but it is generally consumed at the time it is produced, and provide added value in forms such as amusement, convenience, comfort etc that are essentially intangible concerns of its first purchaser.

Service Marketing concepts and strategies have developed in response to the tremendous growth of service industries resulting in their increased importance in world economies. There is something different about marketing and managing services. New trends are being developed that will shape the need and continue the need for services marketing concepts and tools.

Philip Kotler has defined Service marketing as: Any act or performance that one party can offer to another,

that is essentially intangible and does not result to the ownership of anything. Its production may or may not be tied to a physical product.

Technology has been the basic force behind service innovation. Technology is providing vehicles for delivering existing services in more assessable, convenient, productive ways. It has enabled both customers and employees to be more effective in getting and providing service.

Service Marketing Triangle


11

Company

External Marketing Making Promises

CustomersProducer

The services marketing triangle shows the 3 interlinked groups that work together to develop, promote and deliver services. Between the three points of triangle there are three types of marketing that must be successfully carried out for a service to succeed external and interactive marketing. All these activities resolve around making and keeping promises to customers. For services all three types of marketing activities are essential for building and maintaining relationships with customers.

External Marketing Making Promises Through its external marketing efforts a company makes promises to its customers regarding what they can expect and how it will be delivered.

Interactive Marketing Keeping Promises This is the most critical type of marketing activity from the customers point of view. Interactive marketing occurs in the moment of truth when the customers interact with the organization and the service is produced and consumed. Promises are kept or broken and the reliability of service is related every time the customer interacts with the organization. International Marketing Enabling Promises Service providers must have the skills, abilities, tools and motivation to deliver. They must be enabled. Promises are easy to make but unless

Customer

Internal Marketing Enabling Promises

Producer

Keeping Promises Interactive Marketing


12

provided with tools and rewards for good service, the promises may not be kept. This is important as the employee satisfaction is linked with the customer satisfaction.

Service Marketing Mix Service marketing mix includes three more aspects i.e. people, physical evidence and process in addition to the traditional 4Ps of marketing i.e. product, price place and promotion.

PRODUCT PLACE PROMOTION PRICE

Good features Channel type Promotion blend Flexibility Quality level Exposure Sales people number Price level Accessories Intermediaries Advertising targets Terms Warranties Outlet location Media types and ads Differentiations Product line Transportation Sales promotions Discounts

Branding Managing channels Publicity Allowance

PEOPLE PHYSICAL EVIDENCE PROCESS Employees recruitment Facility design Flow of activities

Employees training Equipment Number of steps Employees rewards Employees dress Customer involvement

Team work Customer education Customer training


13

CONCEPTUAL FRAMEWORK


14

Meaning of Customer Happiness

Customer happiness can be said as customers satisfaction, fulfillment and delight towards the service provided. It is a judgment that a product or service feature, or the product or service itself, provides a pleasurable level of consumption related fulfillment.

Satisfaction is the customers evaluation of a product or service in terms of whether that product or service has met their needs and expectations. Failure to meet needs and expectation is brought to dissatisfy with the product or service.

Factors Influencing Customer happiness

Product and service features Consumer emotions Attributions for service success or failure Perceptions of equity or fairness

Product and Service Features

Customer happiness with a product or service is influenced significantly by the customers evaluation of product or service features. Research has shown that customers of services will make trade offs among different service features (price, quality and etc), depending on the type of service being evaluated and the criticality of the service.


15

Consumer Emotions

Actually, there are 2 types of emotion that are given below: -

Positive emotions

Negative emotions

The emotions can be stable, pre existing emotions e.g. mood state or life satisfaction. For example, when you are on vacation or at a very happy stage in your life, good mood and positive frame of mind has influenced, you will respond positively to that service.

Attributions for Service Success or Failure

Attributions the perceived causes of events influence perceptions of satisfaction as well. When the customer has been surprised by an outcome (the service which is better or worse than expected), customers tend to look for the reasons and their assessments for the reasons can influence the satisfaction.

Perceptions of Quality or Fairness Always, customers will ask themselves whether they have been treated fairly compared with other customers. Notions of fairness are central to customers perceptions of satisfaction and happiness with products or services.


16

Components of Customer Happiness and satisfaction

The factors that make the customer happy and delighted are given below: 1. Service Quality

Reliability Responsiveness Assurance Empathy Tangibles

2. Product Quality 3. Price 4. Situational Factors 5. Personal factors

Service Quality Dimensions

Ultimately, customers judge the quality of services on their perceptions of the technical outcome provided and on how that outcome was delivered. The service quality dimensions consist of: -

1. Reliability that is ability to perform the promised service dependable

and accurately.

2. Responsiveness that is the willingness to help customers and provide

prompt service.

3. Assurance that is the employees knowledge and courtesy and their

ability to inspire trust and confidence.

4. Empathy that is the caring, individualized attention given to customers.

5. Tangibles that are appearance of physical facilities, equipment,

personnel, and written materials.


17

In the case of airline industry, how customers judge the 5 dimensions of service quality is given below:

Reliability: Flights to promise destinations depart and arrive on schedule.

Responsiveness: Prompt and speedy system for ticketing, in-flight,

baggage handling

Assurance: Trusted name, good safety record, competent employees

Empathy: Understanding of special individual needs, anticipates customer

needs

Tangibles: Aircraft, ticketing counters, baggage area, uniforms

Satisfaction normally involves the eliminating problems. It goes beyond to the concept of delight, which is the positive surprise. It is the highest level of satisfaction and it transfers to better outcomes that can be achieved through other levels of satisfaction. The customer is satisfied with a defect rate of 0.01%, but if we could eliminate defects altogether, then the customer would be delighted.

Delight leads to behavioral outcomes that are substantially better than mere satisfaction. A delighted and happy customer will go for repurchase, will have a positive word of mouth there be increasing profit and sales of the organization. Thus customer happiness will lead to new customer generation and retention of he existing customer.


18

Why do organizations think about the customer happiness and delight?

All organizations nowadays consider customers happiness and delight for the reasons given below:

Repurchasing

Word of mouth

Pay less attention to competing brands and advertising

Buy other products or services of the same company

Profit increase

Sales volume increase

Satisfied Customer

Delighted Customer

1. Repurchasing 2. Word of Mouth 3. Increasingly Profit 4. Increasingly Sales 5. Pay less attention to

competing brands and advertising

6. Buy other products or service of the same company


19

How do the customers form their expectations?

Expectations are formed on the basis of the buyers past buying experience, statements made by friends and associates, and marketer and competitor information and promises. If marketers raise expectations too high, the customer is likely to be disappointed. On the other hand, some successful companies are raising expectations and delivering performance to match.

These companies aim high because customers who are just satisfied will still find it easy to switch suppliers when a better offer comes along. These who are highly satisfied are less ready to switch. The fact is that high satisfaction and happiness or delight creates an emotional affinity with the brand, not just a rational preference and this creates high customer loyalty.

Level of Happiness

Customer happiness level is a function of the difference between perceived performance and expectations. A customer could experience one of the 3 broad levels of happiness.

If the performance of the service provided comes below the

expectations of the consumer, the customer is unhappy about the

service.

If the performance matches the expectations, the customer is happy

about the service.

If the performance exceeds the expectations, the customer is highly

delighted or happy with the service provided.


20

INDUSTRY PROFILE


21

INDUSTRY PROFILE

Seven decades have passed since the late JRD Tata, better known as the father of civil aviation in India operated the first ever flight of a scheduled air service. Tata Airlines was founded in 1938 and operated under this name until nationalization in 1953, when it was renamed Air India International and later; Air India.

The Air Corporation Act of 1953, led to the formation of two airlines Air India and Indian Airlines, the former designated as the countrys international airline while Indian Airlines operated on domestic routes. The liberalization of the economy in the 1990s allowed private airlines to operate as Air Taxi Operators saw five major airlines coming into existence. By 1997, only two airlines remained operational, Jet Airways being of one of them.

Jet Airways has become a success story in the Indian Aviation Industry and is one of the fastest growing airlines in the world. Jet Airways was set up with the objective of becoming the most preferred domestic airline in the country, by providing superior quality and reliable air travel in India.

A high percentage of the domestic air traffic comprises business travelers. Therefore, Jet Airways focus from the very beginning was to emerge as the Businessmans Preferred Airline.

Today, it is a matter of pride that Jet Airways is widely recognized as Indias Best, World Class Domestic Airline. This has led to a product and service that aimed at world class norms, beginning with the choice of aircraft itself.


22

COMPANY PROFILE


23

COMPANY PROFILE

JET AIRWAYS

History of Jet Airways

Jet Airways began its operations on May 5, 1993, with the first flight, Ahmedabad Bombay (AHM BOM 737 9W 322). The fleet started with 4 Modern Generation Boeing 737 300 aircraft with an objective of being the most preferred airline in India that would upgrade the concept of domestic airline to world class standards.

Since May 1993, Jet Airways has systematically and continually inducted modern generation aircraft, and was the first to operate the B737 400, B737 500, in India, after their launch across the United States.

Jet Airways was also the first to fly the ATR 72 500 aircraft in 1997 in India. This has enabled Jet Airways to offer better connectivity and reliable air links to interior cities and towns. Seven months later Jet Airways became the first airline to fly the 737 900 and also the first to fly the 737 700. Today, Jet Airways has one of the youngest aircraft fleets in the world with an average age of around 3 years.

The facilities of Ansett (Australia) were used for the training and conversion of Jet Airways pilots and engineers. To help Jet Airways achieve world class norms in service, Speedwing (a British Airways Subsidiary) assisted Jet Airways in conducting a program on Customer Service Excellence for staff across functions at all levels.

To ensure accurate and efficient reservation systems, Jet Airways tied up with and is co hosted with SABRE one of the worlds best reservations systems, which was initiated with the launch of the first flight. Within 3 months


24

of running operations, Jet Airways also became an associate member of IATA, a party to the IATA Multilateral Interline Agreement and a member of the IATA Clearing House.

Today Jet Airways operates over 300 flights daily to 46 destinations within India they connect a place every 5 minute and provides over 22,000 seats per day. Passengers have a choice of multiple frequency flights between the metros. Same day returns flights make it possible to even conduct just half a days business in a distant city.

Thirty six millions passengers have flown Jet Airways in the last 12 years. This has not only contributed to international and domestic tourism within India but has also provided employment opportunities to a large segment of people.

Building a highly skilled and motivated team of professionals at all levels has played a key role in delivering world class service. Both on ground and in the air, Jet Airways product and service standards have been benchmarked against the best internationally. In recognition of this, several global and national awards and honors have been conferred on the airline. Jet Airways has also received the ISO 9001:2000 certification for its in-flight services, a rarity in the aviation industry.

Jet Airways is also committed to the areas of corporate and social responsibility. The airline supports a variety of social causes, one of which is the Magic Box initiative. This is an in flight collection program undertaken by Jet Airways since 1997 to facilitate the welfare activities undertaken by Save The Children India (STCI), an NGO dedicated to empowering the under privileged, especially women and children across the country through health and education based initiatives.

The Jet Airways Magic Box collection has assisted in the setting up of SPARSH, a special care center for the mentality challenged children and


25

hearing impaired, starting comprehensive school programs for the under privileged children, adopting a Municipal School and contribution to the Gujarat Earthquake Rehabilitation program.

Jet Airways is Indias most preferred airline. They assure finest service from the time of booking the ticket to the time the passenger leaves the airport. Jet Airways was the first airline in India to receive the World Travel Market Global Award, the world's premier global travel event in London. It has the youngest fleet of aircrafts in India, consisting of the modern Airbus 340-300E, Boeing 737-400/700/800/900 and the ATR 72-500. Jet Airways strive to provide service of the highest standard to their customers, both on ground and in-flight. Jet Airways has ISO 9001 certification for their services.

The Government agreed the Jet Airways proposal to takeover Air Sahara, a move that boosted Jets dominance in the fast growing aviation sector. Thus, Jet Airways, the country's largest private carrier, took over Air Sahara for $500 million in cash.

1993 2006, a decade that has seen Jet Airways transform civil aviation in India. An airline, that has done India proud for ten years and is firmly established as the preferred domestic carrier of the country.


26

Mission of Jet Airways

Jet Airways has firmly established its corporate mission statement, to be the most Preferred Domestic Airline in India and achieve this pre eminent position by offering a high quality of service. It was to make the world look up to the Indian skies. Jet Airways wants to set a global example for domestic travel. There are 4 missions of Jet Airways as given below:

1. Jet Airways will be the most preferred domestic airline in India. It will

be the automatic first choice carrier for the traveling public and set standards,

which other competing airlines will seek to match.

2. Jet Airways will achieve this pre-eminent position by offering a high

quality of service and reliable, comfortable and efficient operations.

3. Jet Airways will be an airline, which is going to upgrade the concept

of domestic airline travel - be a world - class domestic airline.

4. Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achieving healthy, long-term returns for the

investors and providing its employees with an environment for excellence and

growth.


27

PRODUCT AND SERVICES OF JET AIRWAYS

Jet Airways always endeavor to make travel comfortable, convenient and seamless. From on ground to in-flight services it constantly strives to innovate and upgrade their services. As India's best airline, Jet Airways always comes up with many firsts by offering new services and have set standards in Indian Aviation. It provides the following products and services:

On Ground Services: Learn about everything from check-ins to airport lounges, baggage allowance to our 24 hour Helpdesk.

In-flight Services: World-class service certified by ISO 9001:2000

Special Services: Jet Airways understands passengers special requirements - be it a special meal, or wheel chair assistance.

JetMobile: This provides information on flight schedules, automatic flight status alert or simply request for a flight alert.

JetKids: It promises a great time for the kids traveling in Jet Airways. There is assistance if and when needed.

JetMail - Newsletter: Get Updates on the latest offerings from Jet Airways and its partners.

Cargo: Jet Airways cargo with huge network and infrastructure is equipped to handle all cargo requirements of its passengers.

Downloads: Passengers can download concession forms, safety cards and also corporate video.

Customers Safety and Comfort: Customers safety is of vital importance to Jet airways and passengers comfort comes right up with safety.


28

ACHIEVEMENTS OF JET AIRWAYS

Jet Airways aims at excellence in all areas of service, and has been credited with many aviation innovations to achieve complete customer satisfaction and the highest standards in everything. From the maintenance of Jet Airways fleet to customer satisfaction, from security to service both in-flight and on the ground, the achievements have set benchmarks. Jet Airways has always set high standards for itself, take a look at some of the reasons that make itself as Indias favorite domestic airline.

Since the commencement, Jet Airways has achieved the status of the largest private domestic airline in India. The figures speak for themselves: -

From 4 aircraft in 1993-94 to 46 aircraft in February 2006; From 12 destinations in 1993-94 to 46 destinations in 2006; From 24 daily flights in 1993-94 to over 300 flights in 2006.

Jet Airways emphasis on technology and on time performance is one of the key factors of airlines spectacular success. Jet Airways flies Modern and Next Generation aircraft and maintain a young aircraft fleet (with an average age of 3 years as on March 2003), making airline as one of the youngest fleet in the world.

The rapid expansion of the route network has earned airline the prestigious Air Transport World Award 2001 for Market Development and the TTG Travel Award 2002 for Best Domestic Airline. Jet Airways has also won the prestigious H&FS Domestic Airline of the Year Award four times, with the latest award in 2001. And Citibank Diners Club has chosen Jet Airways as India's best domestic airline for excellence in service besides consistently winning other; awards for excellence in service.


29

Jet Airways also prides in having the youngest fleet of aircraft in India, consisting of the modern 737 400/700/800 and the ATR 72 500 and on having an unbeatable record of on time flights and providing world class frequent flyer benefits to its customers, through Jet Airways alliances with British Airways, KLM Royal Dutch Airlines and Northwest Airlines.

Jet Airways strives to provide service of the highest standard to customers, both on ground and in flight. Jet Airways is proud that it is one of the few airlines in the world to receive the ISO 9001 certification for in flight services. Apart from the various innovations launched by Jet Airways in the history of Indian Aviation, Jet Airways also continues to be a responsible corporate citizen.


30

JET AIRWAYS LAUNCHES IPO

The purpose of the IPO is to gain benefits of listing to enhance visibility and brand name, raise capital and retire certain outstanding debt of IFC and IDFC. Jet Airways has reserved 1,200,000 equity shares for subscription by employees at the offer price. Thus, the net offer to public would be 16,066,801 equity shares.

Jet Airways announced the details of its IPO 11 Feb 2005. The Jet Airways IPO will be of 1.72 crore shares of Rs 10 each to raise a maximum of up to Rs 1942.50 crore. The price band for the issue has been fixed at Rs. 950 and Rs. 1,125 per share. Of the total offer, Jet Airways is making fresh issue of 1.42 crore equity shares and balance 30.21 lakh shares are an offer for sale by TailWings Ltd. The combined offer constitutes 20 per cent of fully diluted post offer paid up equity capital of the company. A part of the proceeds of IPO would be used to retire some debt of the company. The company executive director Saroj Datta said that the brand and trademarks would be transferred to Jet Airways by Jet Enterprises. The valuation for IPO pricing had to be done by comparing it with foreign airlines as none of the airlines are listed on the Indian stock exchanges. Earlier, two Indian airlines had issued shares and their stocks were listed on stock exchanges. But, these companies later folded their operations.

Out of total offer, 12 lakh shares are reserved for Jet Airways employees. There would be 60 per cent allocation for institutional investors, up to 15 per cent to high net worth individuals and up to 25 per cent to retail investors.

JET Airways' financials have truly taken flight in the company's maiden performance announcement since its IPO. The net profits for 2004-05 have expanded by a better-than-expected 140 per cent to Rs 392 crore, while


31

revenues surged 24 per cent to Rs 4,420 crore. With its planes flying fuller and after a couple of fare increases through the year, the airline has managed to counteract the effects of a rising wage bill and surging fuel costs.

The number of passengers boarding the company's planes rose 17.9 per cent during the year. Jet Airways has managed a challenging cost environment reasonably well in 2004-05. Competition also had an inflationary impact on selling and distribution expenses. But the company appears to have managed the challenging environment reasonably well.


32

Cycle of Service

Corporate Travel Policy

Extensive

Route Competition

Limited

Check In

Queue Management

Departure Lounge

Security

Arrival Ramp

Arrival Lounge

Baggage screening

City side Ticketing

CP Lounge

Departure Ramp

In-flight Service

Reservation / Tele Check In

Corporate Captive Flyer with

Extensive Choices

Flyer with No Choices Flyer with

Limited Choices

Focus on wallet share

Create company specific rewards for adherence to travel policy

Maintain satisfaction

Highest focus share Concentration on retention, wallet share Offer company specific programs service

Focus on retention Devise programs to satisfy disgruntled passengers

Extensive

Route Competition

Limited


33

RESEARCH METHODOLOGY


34

Statement of the Problem: -

Nowadays, the passengers have more options to travel by preferable airlines. So success to meet needs and expectations is assumed to be the result in satisfaction with the service. Jet Airways, today, recognize that it can compete more effectively by distinguishing itself with respect to service quality and improved customer satisfaction and happiness. Jet Airways would like to know passengers whether they have been satisfied and happy by the quality and service of Jet Airways. So the study of customer happiness has been conducted.

Objectives of the Study: -

1. To find out customer satisfaction and expectation towards Jet

Airways.

2. To find out agencies' opinion about the customer satisfaction

towards Jet Airways.

3. To determine the level of happiness of Jet Airways passengers.

4. To know about the operation of the Jet Airways.

5. To know the customers' reaction towards the company's service.

6. To know how to make successful service towards the customer

satisfaction and expectation.

7. To find out how to improve the service quality and get rid of sources

of dissatisfaction and make the customers happy .

8. To maintain the customer satisfaction to be the delighted and happy

customer.

The ultimate goal of the study is to find out the actual level of happiness among the passengers of Jet Airways and in turn to convert unhappy customers into satisfied and delighted customers, respectively.


35

Need for the Study: -

Whether the buyer is satisfied and happy after purchase depends on the offer performance in relation to the buyers expectations. If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly delighted and happy.

Now companies are aiming to delight the customers because customers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied and happy are much less ready to switch to other companies. Delight creates an emotional bondage with the brand.

The need for this study is to know whether the customers are happy with the airline services they are using. Customers satisfaction and delight depends on the service quality provided by the airline company.

Purpose of the Study: -

The scope of the study is to judge the level of happiness of passengers of Jet Airways, whether the passengers are satisfied with their service.

Limitation of the Study: -

1. The survey is conducted in Bangalore city only.

2. Due to time constraint, sample size for passengers and agencies

was restricted to 50 and 10 respectively.


36

METHODOLOGY

Type of Research: -

For preparation of the project report, several methods were used to collect data and pertinent information. The data required for the study were collected from primary and secondary sources. Detailed and structured questionnaire was prepared for passengers covering as many variables as possible. The secondary data were collected from the textbook, journals, Jetwings magazine, and Internet web site.

Sampling Technique: -

The simple random Sampling Method was considered for the study, which is based on assumption that the respondents were randomly drawn from population. In this study, the passengers have traveled by Jet Airways, Indian and Kingfisher. The sample was random from the passengers of these airlines.

Target Population: -

Sampling design begins by specifying the target population, which is the selection of elements or objects that posses the information sought by the researcher and that frame about which inferences are to be made. The target population selected for the research was the passengers of Jet Airways. Passengers were selected from different professions, age groups who belong to different income levels without any kind of bias.


37

Sampling process incorporates four steps as given below:

Sample Size The sample size was 50 passengers who were randomly selected.

Instrumentation Technique: -

The instrumentation technique used in the project is structured questionnaires. The sample was asked to fill the questionnaire that formed a part of primary data.

Determine the sampling frame

Select sampling technique

Determine the sample size

Execute the sampling process


38

Actual Collection of Data: -

The collection of data is the gathering of information from various sources. For this project, the primary and secondary sources have been used.

Data Collection from Primary Sources

The primary data is based on the objectives of the study, research approach through survey method that is questionnaire development and samplings have been designed visiting the passengers and airline agencies in Bangalore.

Data Collection from Secondary Sources

Secondary data were gathered from numerous sources. While preparation of this project report, the two types of secondary data have been collected.

Internal Data was generated from the companys profile and Jetwings magazine.

External Data, on the other hand, was generated from general library research sources, textbooks, trade journals, articles from newspaper, brochures and Internet web site.

www.jetairways.com. www.servicemangement.com


39

Tools used for testing of hypothesis: -

Chi Square Test

Chi square is non parametric test used by marketing researchers to test hypothesis. This test is employed for testing hypothesis when distribution of population is not known and when nominal data is to be analyzed. With the help of chi square, it can be ascertained whether the given discrepancy between theory and observation is due to change or whether it is due to failure of theory to fit into the observed facts.

In this project chi square test was used to determine whether there was any association between two options. It was also used to find the effectiveness of any option or preference. Formulae used for calculating the value of chi square is as follows:

The expected frequency can either be taken arbitrary assigned or determined mathematically from the observed information. The table value was taken from the chi square table corresponding to the degree of freedom that was obtained from the frequency table.

2cal = (O E) 2 / E


40

HYPOTHESIS TESTING


41

HYPOTHESIS

Testing of Hypothesis

Hypothesis testing: Hypothesis testing begins with an assumption called a hypothesis that we make about a population parameter. A hypothesis is a supposition made as a basis for reasoning. According to Prof. Morris Hamburg, A hypothesis in statistics is simply a quantitative statement about a population. Palmer O Johnson has beautiful described hypothesis as Islands in the uncharted seas of thought to be used as bases for consolidation and recuperation as we advance into the unknown.

Procedure of Testing Hypothesis

1. Set up a hypothesis: The first thing in hypothesis testing is to set up a hypothesis about a population parameter. The conventional approach to hypothesis testing is not to construct a single hypothesis about the population parameter, but rather to set up two different hypotheses. This hypothesis must be so constructed that if one hypothesis is accepted, the other is rejected and vice versa.

The two hypothesis in a statistical test are normally referred to as: Null Hypothesis Alternative Hypothesis

The null hypothesis is a very useful tool in testing the significance of difference. In its simplest form the hypothesis asserts that there is no real difference in the sample and the population in the particular matter under consideration (hence the word null which means invalid, void, or amounting to nothing) and that the difference found is accidental and unimportant arising out of fluctuations of sampling.


42

As against the null hypothesis, the alternative hypothesis specifies those values that the researcher believes to hold true, and, of course, he hopes that the sample data lead to acceptance of this hypothesis as true.

The null and alternative hypothesis is distinguished by the use of two different symbols, Ho and Ha representing the null hypothesis and the alternative hypothesis, respectively.

2. Set Up a Suitable Significance Level: Having set up the hypothesis, the next step is to test the validity of Ho against that of Ha at ascertains level of significance. The confidence with which an experiment rejects or retains a null hypothesis depends upon the significance level adopted. The significance level is customarily expressed, as a percentage, such as 5 per cent, is the probability of rejecting the null hypothesis if it is true.

3. Setting a Test Criterion: The third step is to construct a test criterion. This involves selecting as appropriate probability distribution for the particular test, that is, a probability distribution that can properly be applied. Some probability distributors that are commonly used in testing procedures are t, F and chi square. Test criteria must employ an appropriate probability distribution; for example, if only small sample information is available, the use of the normal distribution would be inappropriate.

4. Doing Computations: Having taken the first three steps, we have completely designed a statistical test. We now precede to the fourth step performance of various computations from a random sample of size n,

Ho: Null Hypothesis)

Ha: Alternative Hypothesis)


43

necessary for the test. These calculations include the testing statistic and the standard error of the testing statistic.

5. Making Decisions: Finally, we may draw statistical conclusions and take decisions. A statistical conclusion or statistical decision is a decision either to reject or to accept the null hypothesis. The decision will depend on whether the computed value of the test criterion falls in the region of rejection or the region of acceptance.

Two Types of Errors in Testing of Hypothesis

When a statistical hypothesis is tested, there are four possibilities as given below:

1. The hypothesis is true but our test rejects it. (Type I error) 2. The hypothesis is false but our test accepts it. (Type II error) 3. The hypothesis is true but our test accepts it. (Correct decision) 4. The hypothesis is false but our test rejects it. (Correct decision)

Accept Ho Reject Ha

Ho is true.

Ho is false.

Obviously, the first two possibilities lead to errors.

Correct decision

Type I Error

Type II Error

Correct Decision


44

The Test of Hypothesis: Chi Square Test

The hypothesis test of ranking airlines:

Rank No. 1 Airlines Respondents %

Jet Airways 33 66% Kingfisher 11 22% Indian 6 12% Total 50 100%

Observed Value (O)

Expected Value (E)

(O E) 2 E

EO 2)(

66 33.33 1067.3289 32.023 22 33.33 128.3689 3.8514 12 33.33 454.9689 13.6504 cal = 49.5248

Assumption:

Ho: Ranking between the airlines is same.

Ha: It is not same.

Level of significance 5% and D.O.F. is 2.

2tab = 5.99

Test Statistics EEO 2)(

Test 2cal = 49.5248

Conclusion

Since 2cal > 2tab Ho is rejected.

Jet Airways ranking is very good.


45

The Test of Hypothesis to find out the Preference betweens

EXECUTIVE CLASS VS ECONOMIC CLASS

Class No of Respondents

Percentage

Executive/Business Class 9 18 % Economic Class 38 76 % Both 3 6 % Total 50 100 %

Po = 0.50, P1 = 0.76

Assumption:

Ho: P1 = P2

Ha: P1 P2

Level of significance 5% => Z tab = 1.96

Test Statistics

Z =

n

PP

PP

00

01

=

505.05.0

50.076.0

=

0707.026.0

= 3.68

Conclusion:

It is showing highly significance i.e. 3.68.

The passengers prefer to travel by economic class.


46

DATA ANALYSIS AND INTERPRETATION


47

ANALYSIS AND INTERPRETAION OF DATA

Table and chart No 1 showing the distribution of respondents, According to the purpose of traveling by air

Purpose No of response Percentage Business 18 36% Leisure 11 22% Others 21 42%

36%

22%

42%

Business Leisure Others

Passengers select to travel by air for many reasons. Most passengers have selected to travel by air for business purpose i.e. 42% while 36% selected to travel by air for leisure and 22%for other reasons.


48

Table and Chart No.2 showing distribution of respondents according to preferable airlines

Airline No of respondents Percentage Jet Airways 28 56% Kingfisher 16 32%

Indian 6 !2% Total 50 100%

28

166

0 10 20 30

No of respondents

1

Airl

ine

s

Jet Airways Kingfisher Indian

From the above table, it shows the preferable airline of 50 passengers. Most of them have selected Jet Airways as the most preferable airline (56%). 32% and 12% have selected Kingfisher and Indian, respectively.


49

Table and Chart No 3 showing ranking of preferable airlines according to number of respondents

Airlines Rank no 1 Rank no 2 Rank no 3 Respondents % Respondents % Respondents %

Jet Airways 33 66% 15 30% 2 2% Kingfisher 11 22% 18 36% 21 42%

Indian 6 12% 17 34% 27 54% Total 50 100% 50 100% 50 100%

0

5

10

15

20

25

30

35

Rank no 1 Rank no 2 Rank no 3

No

o

f res

pon

den

ts

Jet AirwaysKingfisherIndian

From the above table, we can see that most of the passengers ranked the Jet Airways as the first preferable airline i.e. 66%, which is followed by Kingfisher i.e. 22% and Indian i.e. 12%. Overall Jet Airways is the most favorable airline followed by the Indian and Kingfishers.


50

Table and chart No 4 showing distribution of respondents according to Preferred class

Class No of respondents Percentage Executive 9 18% Economic 38 76%

Both 3 6% Total 50 100%

No of respondents

Executive18%

Economic

76%

Both6%

From the above data, we infer the preferable class.

76% of respondents prefer to travel by economic class.

18% of respondents prefer to travel by executive class.

6% of respondents prefer to travel both classes.


51

Table and chart No 5 showing how passengers select the airlines

Particulars No of respondents Percentage Friends 11 22% Family 15 30%

Advertisement 5 10% Agencies 5 10% Others 9 18% Total 50 100%

11

155

5

9

Friends Family Advertisement Agencies Others

By seeing this table, we can understand that the family is the main factor to influence the passengers for selecting a specific airline (30%) following by other reason as word from friends (16%). Advertisement is also the running reasons that make the passengers select a particular airline (10%).


52

Table No 6 showing the reasons to travels by air

Reason No of respondents Percentage

Airfare 4 8%

Convenience 10 20%

Service 6 12%

Image 3 6%

Accessibility 3 6%

Cabin crew 2 4%

Punctuality 5 10%

Responsibility 2 4%

Safety 4 8%

Discount 1 2%

Onboard promotion 1 2%

Food 3 6%

Network 3 6%

Others 3 6%

Total 50 100%

There are many reasons that the passenger selects to travel by air. From the table we infer that maximum number of passengers prefer air travel because of convenience then follows for service, punctuality, safety aspect, airfare, food, network, image etc.


53

Chart No 7 showing the reasons to travels by air

0 5 10 15

1

Reas

on

s

No of respondents

Others

Network

Food

OnboardpromotionDiscount

Safety

Responsibility

Punctuality

Cabin crew

Accessibility

Image

Service

Convenience

Airfare


54

Table and chart No 7 showing opinion of respondents towards Jet Airways services

Particulars Excellent Good Average Dissatisfactory Airfare 5 40 4 1

Reservation 20 26 4 - Help Desk 15 27 8 -

Check in counter 20 23 7 - In flight 24 20 6 -

Security checking 10 32 8 - Food 18 25 7 -

Air craft 16 30 4 - Schedule

Convenience 26 20 4 -

Onboard promotion 7 18 25 -

0 10 20 30 40

No of respondents

Airfare

Reservation

Help Desk

Check incounter

In flight

Securitychecking

Food

Air craft

ScheduleConvenience

Onboardpromotion

AverageGoodExcellent


55

Table no 8 showing the ranking of the satisfaction level, according to the airlines services

Factors 1 2 3 4 5 6 7 8 9 10 11 Weighted Average Airfare

12

132

3

30

8

72

2

16

3

21

1

6

7

35

3

12

2

6

8

16

1

1

350 Reservation

8

88

10

100

15

135

2

16

3

21

6

36

3

15

1

4

1

3

1

2

0

0

420

Help Desk

4

44

8

80

4

36

7

56

5

35

7

42

3

15

8

32

2

6

2

4

0

0

350 Check-in counter 6

66

5

50

4

36

7

56

9

63

10

60

3

15

2

8

3

9

1

2

0

0

365 In-flight

3

33

3

30

3

27

9

72

9

63

4

24

10

15

4

16

2

6

3

6

0

0

327 Security Checking 4

44

7

70

4

36

5

40

2

14

6

36

5

25

10

14

6

18

0

0

1

1

324

Food

5

55

10

100

5

45

6

48

6

42

4

24

5

25

5

20

4

12

0

0

0

0

371

Aircraft

5

55

5

50

5

45

5

40

5

35

6

36

2

10

6

24

9

27

2

4

0

0

326

Schedule Convenience

14

154

6

60

3

27

4

32

5

35

1

6

3

15

4

16

6

18

4

8

0

0

371

Onboard Promotion

0

0

2

20

6

54

3

24

3

21

1

6

4

20

2

8

9

27

19

38

1

1

219

Others

1

11

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

2

4

3

3

18

Note: -The factors deciding the satisfaction of services for airline, assigning one (1=11 marks) for the most satisfaction and eleven (11=1 marks) for the dissatisfaction level.


56

Factors Rank number Weighted averages Reservation 1 420

Schedule convenience 2 371 Food 2 371

Check in counter 3 365 Airfare 4 350

Helpdesk 4 350 In flight 5 327 Air craft 6 326

Security checking 7 324 Onboard promotion 8 219

Others 9 18

Chart No. 8 showing weightage for various services

350

420

350

365327324

371

326

371219 18

Airfare Reservation Help Desk Check in CounterIn-flight Security Checking Food AircraftSchedule Convenience Onboard Promotion Others


57

Table and chart 9 showing percentage of passengers according to their level of happiness

25

19

6

00

5

10

15

20

25

No of respondents

1Rates

Excellent Good Average Dissatisfactory

Among the various respondents 50% passengers are extremely happy with the service provided by Jet Airways and have rated Jet Airways services as excellent. 38% respondents have rated jet airways services as good that show the respondents are satisfied with its service. Only 12% respondents rate Jet Airways services as average and none of the respondents are dissatisfied with its service.

Rates No of respondents Excellent 25

Good 19 Average 6

Dissatisfactory - Total 50


58

SUMMARY, RECOMMENDATIONS

AND CONCLUSION


59

SUMMARY AND CONCLUSION

1. Jet Airways is the favorite domestic airlines in India regarding its services and customers satisfaction. It is seen that approximately 50% of respondents are very happy with services provide by Jet Airways.

2. While doing the survey, it was found that maximum 56% of respondents prefer to travel by Jet Airways because of the standard services provide. About 32% and 12% of respondents prefer to travel by Kingfisher and Indian, respectively.

3. Family is the factors that influence people to select a particular airline.

4. While doing the survey, it was noticed that the reasons that motivates the respondents to prefer traveling by air are as follows: - Convenience Service Safety Punctuality Airfare

5. 76% of respondents feel comfortable to travel by the economy class. While 18% of respondents have selected to travel by executive class. Whereas 6% have selected to travel in both classes since it depends on the schedule and seat availability.

It can be concluded that the passengers are very happy and satisfied with the services, provided by Jet Airways.


60

Problems While Doing the Survey

1. Passengers are in hurry to board so they refuse to fill the

questionnaire.

2. There is less time to conduct survey.

3. Passengers will not participate to answer some questions.

4. While doing the survey, it is found that some passengers hesitated and

could not give the proper answer.

RECOMMENDATIONS

The survey shows most passengers are satisfied and happy with the services of Jet Airways. Anyhow, some points are suggested as given below: -

Onboard promotion should be improved and provided for all

passengers.

To make arrangements for connecting flights traveling from one

sector to another by using different airlines.

Airfare should be reduced.

The airline should keep providing a special discount to frequent

fliers and students.

The airline should improve and manage the time for connecting

flight.

While meals served are very good, snacks should be

customized according to the place, city or region.


61

CONCLUSION

Jet Airways can be ranked as no.1 for its guaranteed rewards (based on survey).

Jet Airways services are excellent. They believe in innovativeness and creativity to serve their customers satisfactorily and keep them happy always.

To compete with its competitors, in this day and age, they however need to improve their services marginally to excel and remain in the top bracket.


62

ANNEXURE


63

QUESTIONNAIRE FOR PASSENGERS

I, JAVED ASLAM, MBA STUDENT OF M.P.BIRLA INSTITUTE OF MANAGEMENT, AM DOING PROJECT UNDER THE TOPIC CUSTOMER HAPPINESS. KINDLY SPEND A FEW MINUTES TO FILL THIS QUESTIONNAIRE. THIS WILL BE USEFUL INFORMATION TO COMPLETE MY MASTER PROJECT. THANK YOU.

11.. NNAAMMEE ________________________________________________________________________________

22.. AAGGEE ______________

33.. SSEEXX Male Female

44.. EEDDUUCCAATTIIOONN Pre university Degree Post graduate Above post graduate

55.. OOCCCCUUPPAATTIIOONN Student Private company Housewife Government sector Business person Others.

66.. MMOONNTTHHLLYY IINNCCOOMMEE Less than 1,20,000 1,20,000 3,60,000 3,60,000 6,00.000 Above 6,00,000

77.. HHOOWW OOFFTTEENN DDOO YYOOUU TTRRAAVVEELL BBYY AAIIRR?? Weekly Monthly Yearly Others


64

88.. FFOORR WWHHIICCHH PPUURRPPOOSSEE DDOO YYOOUU TTRRAAVVEELL BBYY AAIIRR?? Business Leisure Others.

99.. WWHHIICCHH AAIIRRLLIINNEE DDOO YYOOUU PPRREEFFEERR?? Jet Airways Indian Kingfisher

1100.. RRAANNKK TTHHEE LLIISSTT OOFF AAIIRRLLIINNEESS AACCCCOORRDDIINNGG TTOO YYOOUURR PPRREEFFEERRAABBLLEE.. Jet Airways Indian Kingfisher Others

1111.. WWHHIICCHH CCLLAASSSS DDOO YYOOUU TTRRAAVVEELL BBYY?? Executive Class / Business Class Economic Class Both

1122.. HHOOWW DDIIDD YYOOUU SSEELLEECCTT TTHHEE AAIIRRLLIINNEE?? Friends Family Advertisement Agencies Others..

13. WWHHAATT AARREE TTHHEE RREEAASSOONNSS TTHHAATT YYOOUU SSEELLEECCTT TTOO TTRRAAVVEELL BBYY YYOOUURR PPRREEFFEERREEDD AAIIRRLLIINNEE?? (You can select more than one reason) Air fare Convenience Service Image Accessibility Cabin Crew Punctuality Responsibility Safety Discount Onboard Promotion Food Others.


65

1144.. WWHHAATT IISS YYOOUURR OOPPIINNIIOONN AABBOOUUTT FFOOLLLLOOWWIINNGG SSEERRVVIICCEESS PPRROOVVIIDDEEDD BBYY YYOOUURR AAIIRRLLIINNEE??

Excellent Good Average Dissatisfactory Airfare Reservation Help Desk Check-in counter In flight Security checking Food Aircraft Schedule Convenience

Onboard Promotion

Others.

1155.. RRAANNKK TTHHEE FFOOLLLLOOWWIINNGG SSEERRVVIICCEESS OOFF JJEETT AAIIRRWWAAYYSS AACCCCOORRDDIINNGG TTOO PPRREEFFEERRRREENNCCEE..

Airfare Reservation Help Desk Check in Counter In-flight Security Checking Food Aircraft Schedule Convenience Onboard Promotion Others..

II DDOONNTT LLIIKKEE JJEETTAAIIRRWWAAYYSS BBEECCAAUUSSEE OOFF:: ______________________________________________________________

______________________________________________________________

____

1166.. DDOO YYOOUU TTHHIINNKK JJEETT AAIIRRWWAAYYSS HHAAVVEE VVAALLUUEE FFOORR MMOONNEEYY??

YES NO


66

1177.. JJEETT AAIIRRWWAAYYSS SSEERRVVIICCEE RRAANNKKIINNGG WWOOUULLDD BBEE::

EEXXCCEELLLLEENNTT GGOOOODD AAVVEERRAAGGEE DDIISSSSTTIISSFFAACCTTOORRYY PPOOOORR

11

22

33

44

55

1188.. AANNYY SSUUGGGGEESSTTIIOONNSS ____________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________

__________________________________________

DDAATTEE ____________//____________// 22000066 PPLLAACCEE ____________________________________

Signature _____________

Thank you for your co-operation. JJAAVVEEDD AASSLLAAMM..


67

BIBLIOGRAPHY

Rust, Ronald T., Zahorik, Anthony J. and Keiningham, Timothy L. SERVICE MARKETING. Addison Wesley, New York, 1999.

Zeithaml, Valarie A. and Bitner, Mary Jo. SERVICE MARKETING: INTEGRATING CUSTOMER FOCUS ACROSS THE FIRM. 3rd ed., Tata McGraw Hill, New Delhi,.

Jetwings. 10 YEARS OF SERVICE AND GROWTH. Vol.5, May 2005.

The Economic Times Bangalore. GAINING ALTITUDE.

Internet:

www.jetwings.com www.servicemanagement.com

www.jetairways.com

jet airways javedaslam 0419

Documents

meaning customer happiness

javed aslam

history of jet airways

mission of jet airways

bangalore principal

services marketing

project guide date

research methodology