Company background
Consumer behavior is described as the research on the procedures involved when people select the commodities or services to purchase in the market. In most of the organizations consumer behavior us conducted by companies to get a deep understanding of the consumer needs in the market. This research report will explore the consumer/buyer behavior of Emirates Airline, which is among one of the most prosperous air flight company in the globe. As mentioned in Emirates website, Emirates Airline entered into market into the air flight market in 1985 after Dubai’s government raised $10 million as the starting capital. The capital was invested in the purchase of commercial airlines and construction of several airstrips in the country. Initially Emirates Airline bought two commercial aircraft that are Boeing 737-300 and Airbus A300. The two aircraft were used to ferry passengers to Pakistan and India where the company had several travel agents. In 1987, Emirates Airline increased the capital investment by purchasing three more aircraft, which were later hired by Pakistan and Dubai air wing.
In the recent years, Emirates Airline has been ranked as one of the largest air flight companies with over 170 aircraft 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 company has over 120 destinations in over 70 nations around the world. In the last three years, the company has managed to ferry an average of 34 million passengers a figure that has been described as the best in the air flight industry. Emirates Company has various flight classes that cater to the needs of all customers in the market. Some of the major classes offered by Emirates Airline include first, economy and business class. 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), 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 environment
Emirates Company is one of the flight companies that has created a conducive environment for the customers to buy flight tickets. In the past years, Emirates has taken a major transition in the provision of extra luxurious services to the travelers. Provision of luxurious services such as the dining and shelter services has motivated the majority of travelers to access the flights continuously. Additionally, the company has invested in good customer services that provide luxurious meals that are much preferred by the majority of travelers using the flight services. Other luxurious services provided by the Emirates Company such as bedding services and entertainment have created a conducive environment for travelers who prefer such facilities. As stated by Holloway (2017), business organizations that provide a suitable buying environment are more likely to generate more income than the competitors. Enabling buyer environment has significantly boosted revenue generation in the company due to high customer preferences in the market.
Unlike other airline companies, Emirates has also created an enabling environment where all travelers are free to give their personal flight experience. Emirates Company has invested in online customer feedback programs, which allow different travelers to share travel experience. The use of online feedback sharing platforms such as Facebook and website has created a strong relationship between the company and customers. Online customer feedback generated by Emirates customers has created an enabling shopping environment for the customers. Neises (2013) argue that organizations with higher customer relationship have more chances of securing competitive market position. Presence of good online feedback programs has allowed majority of customers to explore the level of customer services offered by Emirates. The use of online feedback programs has also allowed Emirates to connect with new and potential customers in the market. In the recent business environment majority of people, rely on the online feedbacks when making purchases from new companies. \Emirates management team has also invested resources in customer satisfaction, which is one of the mechanisms for creating an enabling customer purchase environment. In the past years, the company has always valued on providing services that are satisfactory to the travelers. 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 much value on online customer feedbacks, which portray the company image. As a part of creating an enabling purchase, environment Emirates has developed different pricing strategies that attract more customers within the market. 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 Emirates
Customer 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 one of the factors 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 has 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 decent meals, drinks, entertainment, beauty therapies and shelter services. The majority of customers in the market has also described the luxuries facilities provided by Emirates as the best.
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 use superior technology in the management of its aircraft. Use of the modern technology in the aircraft technology has thus guaranteed most of traveler’s safety. 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. This ideology has developed as result of positive feedback from most of the customers within the market. 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 factors
Consumer 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 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 flight companies Emirates first class services have been described as extra decent since they supersede the services offered by other airline corporations. The provision of super luxurious services in the first class has motivated the majority of people to admire the lavish lifestyle enjoyed by the travelers using the facility. The provision of such facility has thus increased the desire for the majority of people to use the Emirates flight unlike 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 has established several branches in different countries thus 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. Due to a large number of establishments, Emirates Company has managed to avail its services to the majority of people around the globe. 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 availing 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 flights
Emirates customers’ attitude
As 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 thus 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 company agents are able to educate people on various benefits of the services offered by Emirates.
To 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 strategies
Emirates 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
Although the report solely focused on the brand encounter and consumer behavior, no comparison has been made between Emirates and its competitors. Emirates airline should be aware of two major upcoming airline companies, which include Turkish and Swiss airline. Both Turkish and Swiss have been at the top position competing to secure a strong position in the market in the past. Emirates airline should be aware of the strategies applied being used by the two competitors and prepare in readiness to keep off the competitors from the market. To counter competition from the two main competitors Emirates should develop a culture of using modern technology in the management of its operations. Other measures that should be applied by Emirates management include the continued development of unique services in the market zone.
References
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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/
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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. http://www.dawsonera.com/depp/reader/protected/external/AbstractView/9781292116754
Squalli, J., 2014. Airline passenger traffic openness and the performance of Emirates Airline. The Quarterly Review of Economics and Finance, 54(1), pp.138-145.
