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Unit 4 Research Project on Customer Satisfaction Assignment
Diploma in Business
Unit Number and Title
Unit 4 Research Project on Customer Satisfaction
1.1 Research Project outline specification
Wizz Air is Hungarian low cost airline and their head office is located into Budapest within the property of Budapest Liszt Ferenc International Airport. They are listed in London Stock Exchange and they are serving their services in different countries such as Europe, Israel and United Arab Emirates. They are largest fleet among the Hungarian airline. They were established in the year 2003 and their lead investors are Indigo partners. In order to reduce the costs they make use of the secondary as well as smaller airports. They are running their business in effective manner and get adequate rate of profits. There was a fall noted down during the time period of 2009 in which they almost file for bankruptcy. But then in the year 2012 and so on they are earning adequate profits. They are attaining second lowest "Cost per available seat km" within European airlines.
In the research project on customer satisfaction assignment the Wizz air is rendering low cost services to the customer and with this fact there is a problem raised with related to customer satisfaction. It create problem that with the effect of the low cost there might be possible that the level of services are not effective enough. With the help of the low cost they become able to attract the number of customers but there might be fall in the repetition of the customers. So the problem raised with the fact that low cost services might not satisfy the customers for a longer period of time. Now-a-days customers are willing to get the higher quality of services along with the low prices for that services. When a company tries to lower down their costs there might be possibility that they are compromising over their services or something else that affect the customer satisfaction level (Ahmad, et. al., 2012).
Research Objectives:The research objectives are set for this research study are as follows such as: -
- To evaluate the impact of low cost over the performance of Wizz air.
- Measure the benefits rendered by the low cost factor to wizz air.
- Evaluate factors that help them in lowering their cost.
Research Aim:The major aim of this research study is to meet out the set research objectives as well as answer the set research questions. So it also become aim to gather adequate set of information which is relevant as well as current to the research topic.
Research title:" Customer satisfaction in Low Cost Airline Company: Wizz Air"
1.2 Factors contributing research project selection
- Research Scope: - The scope of research is wide enough as it performs over the level of customer satisfaction. As the Wizz air is providing low cost services to their respective customers and for this purpose they are using different methods such as smaller and secondary airports in order to serve their customers. So it become essentially important in order to measure whether they are rendering adequate services to their customers against low cost or not (Ahmad, et. al., 2012).
- Available resources: - The required resources are available in the adequate quantity that helps in conducting research. The information is gathered with the help of questionnaire that get filled by the customers availing the facility of Wizz air. It helps in saving the time period as it get analysed in effective manner as well as it didn't demand much finance to perform all these activities (Tang & Zhang, 2013).
- Study material: - Effective amount of study material is available in context to the customer satisfaction that helps in processing the research study in effective manner. With the use of these study materials research study is processed in adequate manner that support in getting answers for the research questions and objectives (Tang & Zhang, 2013).
- Feedback: -This is an effective form of getting adequate set of information and knowledge from the different sources. It is the review of the customers made by them against their services consumed. So it is considered as an effective tool in order to gather the set of information for the purpose of evaluating their overall service quality (Tang & Zhang, 2013).
1.3 Critical review
Literature review: As per the Usman and Noreen, airline industry become the most competitive industry now-a-days (Usman & Noreen, 2014). And in this industry customer satisfaction become vital need as it is the only factor that help them in getting revenues as well as market share. There are various benefits of the satisfied customers as with the effect of it they make reuse of the services rendered by the company along with this they enhance the goodwill within the market. Satisfied customers results into mouth publicity and it is considered as most effective promotional activity made by the customers on behalf of organisation. It also results into increase in their sales. If frequent users get satisfied with the services rendered by the Airline industry then it didn't get retain but it also increase their sales by converting different customers towards them in order to avail their respective services. Airline industry highly focused over reducing the section of complaints as it is the factor that reduces the level of customer satisfaction and become an barrier in earning profits (Usman & Noreen, 2014).
As per the Nuriye, et. al. there is adequate advancement is noted down within the aviation industry that create adequate level of competition among airline industry (Nuriye, et. al., 2014). As airline is the fastest mode of transportation the respective government also render them adequate support in order to grow. With the effect of these activities there is adequate level of increase is noted down within the aviation industry. With the effect of the increase in competition it is also noted down that there are no other factors or elements are left that become major tool for acquiring market share except customer satisfaction. Nuriye, et. al. is focused over meeting the expectation of the customers there are various factors that get expected by the customers and need to be fulfilled by the airline industry in order to increase the ratio of customer satisfaction such as airline need to render services in the promised manner and must be accurate enough as it results in to increase in reliability factor (Nuriye, et. al., 2014). Airline industry need to improve their customer services and promptly answer their queries as it helps in increasing their overall responsiveness. Airline industry need to enhance their services by providing individual attention over their respective customers that results into assurance and customisation. There are some elements that need to be taken care by them including external appearance of the airlines, ground level facilities, communication facilities and others. All these factors effectively help them out in increasing the customer satisfaction level and with the effect of it there is adequate enhancement is noted down within their profit earning capacity as well as increase their market share. The group of satisfied customers helps in increasing their sales volume as well as increase the market share because mouth publicity is considered as the most effective promotional activities. In order to increase the customer satisfaction level there is effective need to meet out the customer expectations by rendering adequate level of services to them. Reliability, assurance, customisation, facilities, responsiveness and others are the effect measures that helps in increasing the level of customer satisfaction (Nuriye, et. al., 2014).
1.4 Research project proposal
- Research methodology: -The process of research study that get followed in the systematic manner is termed as research methodology. There are various process get processed in order to gather adequate set of information in order to meet out the objectives of the research study.
- Research method:There are various methods are available in order to conduct the research program that help in processing the research study further. These methods include mono method (where qualitative or quantitative approach get followed as per the discretion), mixed method (where both qualitative and qualitative approaches get followed in same ratio) and multi method (where information is gathered through both approaches in huge ratio). In this research study mix method is followed for the purpose of data collection (Tang & Zhang, 2013).
- Data collection methods:Data collection methods depend over the source of data collection as information is gathered through different sources which is primarily segregated into two parts such as primary source and secondary source. Primary source yields raw and current information related to the research topic so in order to gather these set of information surveys, interviews, etc. get conducted. To conduct survey or interviews adequate and relevant questionnaire is prepared (Tang & Zhang, 2013).
- Data analysis methods:The data which is gathered from the different sources need to be analysed in order to extract the useful set of information so that research questions get answered. The raw data gathered from different sources such as websites, journals, articles, survey, etc. which get analysed through different methods and helps in extracting adequate set of information (Suresh, et. al., 2011).
- Recommendations:Once the data is analysed with the help of adequate techniques it rendered adequate and useful information which get utilised for making recommendations. These recommendations are made in order to resolve the problem that results into conducting this research study. Recommendations get considered as the solution of the research problem (OHalloran, et. al., 2016).
- Limitations:Research study is processed in systematic manner but there are various hurdles are available. These hurdles are available in the form of limited finance, limited time period, available tools and techniques in order to analyse and evaluate the gathered information. These limitations become the major barriers in the progress of the research study (OHalloran, et. al., 2016).
- Ethics:For research study it is essentially needed to conduct in ethical manner so that it results into extracting desired results. There are various features that need to be followed by them in order to process ethically such as proper approvals need to be taken before conducting survey in order to gather the information. Adequate tools and techniques need to be analysed that also helps in extracting the information at ethical basis. Incitation's and references need to be made in the gathered information that helps in making the information ethical (Cohen, et. al., 2014).
1.5 Appropriate plan and procedures.
Research study is processed in effective manner and it should be made with the help of adequate strategy. It is systematic planning that helps in successful execution of the research study and below is the action plan and Gantt chart is prepared in context to it such as: -
Action plan: -
Selection of research title
Collect some information
Method selection and documentation
Getting approvals and population segmentation
Arrange data in sequential order
Analyse the arranged data
Make summary of data and make its submission
Gantt chart: -
2.1 Research questions or Hypothesis
Research questions: -
R1. Is low cost impact their service quality.
Ans. No, the low cost of their services didn't impact their service quality. There are various factors that helps in reducing their cost. With the effect of the increase in service quality they become able to lower down their cost.
R2. What are the measures that helps in lowering their cost?
Ans. There are various measures that helps in lowering the cost and it makes inclusion of increase in service quality that results into increase in sales which ultimately reduce their costs. Increase in sales helps in reducing their cost as they incur them over rendering training session for their employees, and many more. These factors helps in reducing their cost as they are efficient enough in lowering their cost.
R3. Is low cost is sufficient enough to increase the customer satisfactions?
Low cost is not only factor that increases customer satisfaction because there are various factors that helps in increasing customer satisfaction. These factors make inclusion of diverse services, attractive ambience, effective customer related services, and others. These factors helps in increasing the customer satisfaction level.
2.2 Data collection method
For the purpose of the data collection effective data collection method is followed by the researcher for gathering their relevant information. Researcher gather the information with the use of the adequate method like conducting survey program in which researcher make use of questionnaire for collecting set of information. Below is the questionnaire prepared for the purpose of data collection (Mackey & Gass, 2015).
Low cost services effectively increases customer satisfaction level.
Low cost services effectively increases their sales.
Customers effectively avail the services rendered by the Wizz airlines.
Customers get attracted towards the services rendered instead of low cost charged.
Low cost services subsequently increases competition within their market.
Training session improve the efficiency of employees that results into lowering their costs.
The services rendered by the Wizz Air is efficient enough in order to satisfy need of customers.
The service rendered by Wizz Air is highly satisfying their charged costs.
Customers get satisfied with the effect of low cost and high quality services rendered by Wizz Air.
Customers are enjoying the services rendered by the Wizz Air.
2.3 Record and collate data
- Primary source:There are significant sources from where information is gathered for the first time. The information is gathered with the use of questionnaire in order to conduct survey. This survey helps in getting adequate set of information from the primary source. Survey is utilised by the researcher in order to gather the information for the purpose of supporting research study (Noble & Bestley, 2011).
- Secondary source:There are significant secondary sources in the form of articles, journals, reports and websites which get consulted by the organisation in order to extract the useful information. These resources get evaluated by the researcher in order to extract and use adequate set of information for the purpose of satisfying the need of the research topic (Noble & Bestley, 2011).
- Sampling: -There is huge information is gathered with the use of different sources which need to be analysed in adequate manner. But due to the limited time period as well as limited sources it is not possible to evaluate whole set of information. In order to analyse the gathered information 20 respondents are taken into consideration as their responses are evaluated in effective manner that helps in satisfying their desired outcomes (Noble & Bestley, 2011).
Response table: -
3.1 Research Evaluation techniques
Adequate set of information is gathered with the help of different methods but it is not get utilised directly for the purpose of satisfying the desired outcomes. So before using information directly there are various tools and techniques that get utilised for evaluating the set of information (Noble & Bestley, 2011). Some of the evaluation technique that get followed by them in order to evaluate the gathered information such as:
Survey evaluation method: -With the use of this method researcher become effective enough in order to analyse the information collected from the primary source via conducting survey program. This technique helps in evaluating the set of information that gathered with the use of the survey which further utilised for answering the set research questions (Habib, et. al., 2014).
Bibliometric analysis method: -Researcher gather the set of information through diverse secondary sources such as website design, journals, articles, etc. in order to extract the adequate set of information related to the research topic. With the use of this method all the secondary information get analysed in effective manner that helps in satisfying the set objectives as well as support in making recommendations (Habib, et. al., 2014).
3.2 Data analysis
The data gathered with the help of the questionnaire through survey program get analysed below. But it is not possible to analyse the whole gathered information so that adequate sample is taken out from it. The sample size is 20 means 20 responses are taken into consideration for the purpose of analysing.
Table 1. Low cost services effectively increases customer satisfaction level.
Analysis:The 70% of the responses are agreed with the statement that with the effect of low cost the level of customer satisfaction get increased in significant manner. Customers are happy in availing airline services by paying low costs (Hussain, 2016).
Table 2. Low cost services effectively increases their sales.
Analysis:Majority of the respondents are agreed with the statement that with the effect of the low cost there is adequate increase in the overall sales. But there is 30% population is disagreed with the statement that low cost services didn't play major role in increasing their sales (Hussain, 2016).
Table 3. Customers effectively avail the services rendered by the Wizz airlines.
Analysis:The majority of customers (60%) are agreed with the statement that they are effectively availing services rendered by the Wizz air. But around 30% of the population didn't agreed with the statement that they are not satisfied after availing the services rendered by the Wizz air (Steven, et. al., 2012).
Table 4. Customers get attracted towards the services rendered instead of low cost charged.
Analysis:The majority of the customers are highly agreed with the statement that around 70% of them agreed that they attract towards the quality services rendered by them instead of the cost or prices charged by them against their services rendered (Steven, et. al., 2012).
Table 5. Low cost services subsequently increases competition within their market
Analysis:The majority of the customers are agreed with the statement that with the effect of the low cost there is adequate increase in the competition within the company. Low cost services set adequate path for other industries as they also have to provide their services at low cost or they need to give valid reasons against it (Chow, 2014).
Table 6. Training session improve the efficiency of employees that results into lowering their costs.
Analysis:Most of the respondents are agreed with the statement that there is effective improvement should be made within the employees skills set with the help of training and development program. The efficient employees helps in rendering effective level of services that helps in reducing their overall cost (Chow, 2014).
Table 7. The services rendered by the Wizz Air is efficient enough in order to satisfy need of customers
Analysis:The majority of the respondents are agreed with the statement that they are satisfied with the services rendered by the Wizz air. The services rendered by them having adequate quality level that effectively motivate their users (Sandada & Matibiri, 2016).
Table 8. The service rendered by Wizz Air is highly satisfying their charged costs.
Analysis:The majority of the respondents are agreed with the statement that the cost charged by Wizz air is meeting the expectations in the form of services rendered by them. The quality level of services rendered by them satisfying the cost charged by them (Sandada & Matibiri, 2016).
Table 9. Customers get satisfied with the effect of low cost and high quality services rendered by Wizz Air.
Analysis:60% of the population is agreed with the statement that the services rendered by the Wizz air is having adequate level of quality along with the low cost factor. But there are some respondents that didn't get satisfied with the statement as they are not up to the mark in rendering adequate level of services (Keiningham, et al., 2014).
Table 10. Customers are enjoying the services rendered by the Wizz Air.
Analysis:There are 70% of the respondents are highly satisfied with the statement that they are satisfied and enjoy the services rendered by them. There are 20% of the respondents that didn't satisfied with the services (Keiningham, et al., 2014).
3.3 Recommendations and Further consideration
Recommendations:The gathered set of information is analysed effectively and with the help of these set of information effective recommendations are made in order to resolve the problem such as: -
- They need to focus over improving their service quality that results into increase in their customer satisfaction ratio.
- There is effective need of rendering routinely training to their employees so that they enhance their skill set and provide quality services to customers.
- They need to focus towards improving their overall quality of services.
- They need to improve their customer relationship services as they need to resolve customer issues as soon as possible.
- Fill up feedback forms customers in order to get the reviews of the customers and make adequate changes accordingly.
- Focused over hiring right person for right jobs.
- took monthly reviews from employees in order to get best ideas.
- Need to analyse the complaints made by the customers
- Need to improve their services
- They need to introduce effective and additional services such as low cancellation charges, etc.
Further consideration:Once the research study is executed successfully by satisfying all the research questions and objectives then there are various measures that rendered adequate sections in order to make further consideration such as: -
- Impact of the increase in cost over the customer satisfaction of Wizz air.
- Measures that enhance the overall performance of Wizz air at low costs.
- Impact of increase in service quality over their cost.
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