AirAsia Consumer Behaviour Essay

1.0. IntroductionAIRASIAAirAsia is a Malaysian company, that introduced the Low Cost Carrier service to the domesticated market and stilltually the asian region. Currently AirAsia isthe leader in this market segment. Before it fits the AirAsia that we all deal today, AirAsia was a poorly performed company owned by a government-link company (GLC) in Malaysia, DRB-HICOM. In 2001, it was sell to the current owner, Tony Fernandes and its TuneAir company, for a sum of only when RM1.00 or approximately US$0.30, together with its accumulated debt of RM40 peerless million million million (AirAsia, 2008). Within two course of instructions, Tony Fernandes exceeds everyones expectations, and turned AirAsia to a profit making company. By the third year it was listed in the Kuala Lumpur bourse with outstanding IPO (initial Public Offer) of RM717.4 million (AirAsia, 2008).In 2006, the AirAsia was given the use of LCCT terminal in Malaysia, because its passenger load engender expanded to s uch a capacity. This assignment will describe how AirAsia, managed to become the company it is today, started with a fleet of only 1 production linecraft in 2001, to a fleet of 72 aircrafts, go over 61 domestic and 108 international destinations, and operates over 400 flights daily from hubs located not only in Malaysia, but too Thailand and In shamesia, and launched AirAsia X for longer haul flights with its wide-body aircrafts, through the eyes of Consumer Behaviour, from psychological drivers, sociological drivers and consumer finding making touch.2.0. Psychological Drivers of consumer behaviourThere atomic number 18 psychological drivers that influence the consumers behaviour. They ar motivation, perception, learning, determine, beliefs and attitudes, and lifestyle, argon useful for intrepeting the consumers buying process and directing the companys merchandising efforts.2.1. Motivation.Motivation is the energizing force that causes behavior that satisfies a contend. The needs ar hierarchical, from the basic of it and utmoster.2.1.1. Hierarchy of necessarilyFrom this Maslows Hierarchy of Needs, in advance AirAsia, air change of location is generally considered in the higher hierarcy of needs, flirt with, where some citizenry intend to show other(a)s their ability to break down by air, and visit destinatations that others lott. This is what AirAsia realized, they created the tagline promptly everyone can vaporize, hence creating the aw benes to the people, and also created the motivation that now air travel is no longerconsidered in the esteem hierarchy of needs, people can travel just to fulfil their Love/Belonging needs, whether people travel to seek the ones they love, friends or family, or they travel to please those loved ones, such as holiday destinations, by air.2.1.2. Means-end scope.Means-end chain follow a sequence-honered approach for thinking about motivational issues. The central premise that objects have value only b ecause they produce desirable consequences or enable one to avoid negative consequences is at the heart of nigh modern conceptualizations of motivation (Atkinson, 1964, Lewin, 1951, Tolman 1959).The above chain shows that at the end of the day, a consumer who get AirAsia as way of their air travel, will have excess money to save or to put across on some matter else in their travel or holiday.The ad above, shows that because of the AirAsias cheap price of airticket to London, consumers get to sink their money on something else, like shopping and visiting heritages places in London. AirAsia merchandise people created the motivation of a desirable consequences if consumer grease ones palms their service2.2. Perception.Perception is the process of assembling sensations into a useable mental authority of the world,..perception creates faces, melodies, works of art, illusions out of the raw material of sensation (Coon, 1983) or to summarize, is the process by which physical sensat ions are selected, organised and interpreted. Individuals with the corresponding need might not leveraging or choose sympathetic products or service due to the difference in perception.From the perceptual process model above (Solomon, 2006), AirAsia succeded in creating stimulations and attentions, and undertake to generalized the perception of people that now everyone can take flight. Obviously they stimulate the sights first, by using the resembling tagline in every ads, media and online and billboards. Thus, consumers remember this cultivation, which results when they want to purchase an air passage ticket, AirAsia is the first choice comes to mind.2.3. attainmentLearning is the process by which relatively permanent changes occur in behavioural potential as a result of put through (Anderson, 1995). AirAsias merchandise people understand consumers learning process touching their decision making.2.3.1. Behavioural Learning. doubleed exposure to an experience will result i n the process of ontogeny an automatic response to that particular situation. In the AirAsia case, the company is trying to develop that automatic response is choosing AirAsia as their airway, everytime a customer wants to buy an airline ticket. e.g As AirAsia owns by Tune company who also owns the Hotel chain of Tune Hotel, the company able to sell air tickets together with hotel fares, resulted in cheaper and convenient way to travel. Customers larn that through the website, they can purchased the air ticket together with hotel. This resulted in repeated behaviour of buying AirAsia ticket, as the customer find it more convenient.2.3.2. Cognitive Learning.AirAsia is trying to make connections between the two ideas of get airline ticket together with the hotel. But now, as the customers uses the AirAsia website to purchase the air ticket, they can also choose a wider range of hotel choices, not just the AirAsias own Tune Hotel Chain. AirAsia through their website now also car ry as an agent, where customer, as theyre saving money by buying airasias ticket, have the options to throw off more whether to indulge in more luxurious way of staying, by choosing more luxurious hotels that now available in the companys website.The above screenshot of airasias website shows that cosumers can purchase airticket and hotel vouchers at the same time.2.3.3. Brand Loyalty.One of the way of doing applicating learning principles by AirAsia is introducing their reward programs to AirAsias customers, there are the shop flyer miles, or free ticket, or holiday vouchers to give away to its customers. These things reinforce their behaviour and pattern brand loyalty toward AirAsia itself. AirAsia is trying to educate the people, they themselves become the catalyst of the learning process.The outcome of learning is memory. By putting inputs and information out there, now everyone can fly, even the people who are not in needs of air travel, learned that there is now a cheap way to fly. Hence, this information is recovered from memory when these consumers are in need of air travel, and choose AirAsia.2.4. Beliefs and Attitudes.Beliefs and attitudes play an essential social occasion in influencing the buying decisions of consumers. No matter how good the service is, but if the consumer feels it is useless, he/she would never purchase it.From the attitude-towards-the-ad models, AirAsia, creates such an exposure to ads for consumers, with the same theme of red and white, in their billboards ads, websites look, magazine and forward-lookingspapers ads, thus affecting the beliefs towards the AirAsia brand.Constant exposure to these ads and commercials, with red and white coloured themed, create the attitude of choosing AirAsia, when the time is come for consumer to make a choice.2.5. Lifestyle.A psyches activities, interests and opinions, often resulted in that particular persons lifestyle. The technology nowadays created a new lifestyle in peoples life. net income and smartphones is becoming more and more important to people. AirAsia recognized this, beside website as their acquire portal, now people also can purchase air ticket and hotel voucher as well through their smartphones, by creating cover for smartphones plattforms such as iOS and android.3.0. Sociological Drivers of consumer behaviour3.1. Personal Influence.Personal influences resulted from the interaction between one individual and others. These influences can also come from opinion leaders, where one individual can exert definite infulence over other people. e.g., in a working environment, when a manager decided to use AirAsia, even for his/her personal travel, his/her subordinances will be influenced to do the samething.3.2. Reference Groups.When a certain individual looks to a separate of people, as a basis of self-appraisal or as a source for personal standards, these root of people can be considered as Reference groups. Marketers must understand how groups influe nce individual behaviour, how group influences vary accross products and brands, how to use group influences to develop effective strategies. Recognizing these groups can help the marketing people of AirAsia for their marketing strategies. There are three types of reference groups to create a difference in marketing implications3.2.1. social station group.A membership group is where an individual is actually belong to.3.2.2. Aspiration group.An aspiration group is a group where an individual want to be indentified to.3.2.3. Dissociative group.A dissociative group is a group where one individual wants to maintain a distance to, because of differences in values or behaviour.3.3. The Family.Differential influence of family members can affect the pruchasing decisions. AirAsia recognized this by introducing one credit card for all transactions in their home website. In asian region, in a family, decision usually carried out by the transfer of the family (the father), or the one who is providing for the whole family. Thus, even where a situation like a joint decision making is arised, the father who has the biggest income usually make the decision. In their website, a father, can create a user denote, which already included with all the credit cards data. In this case, any family member who wants to purchase air ticket can easily use their husbands/fathers username.3.4. social Class.Social class is a relatively permanent, self-colored divisions in a guild into which people sharing similar values, interests, and behaviour are grouped. The determinant of social class usually include occupation, source of income and education. AirAsias marketing strategies and advertisement spotted these social classes in society, especially the middle-class. Therise of middle-class economy in asia peaceable region created more value-oriented consumer, where value for money is important. Co-workers, students even housewives group can now easily travel and spend holiday together.3. 5. CultureCulture refers to the set of values, ideas and attitudes that are accepted by a homogeneous group of people and transmitted to the next generation. The South eastmost Asiatic region, where AirAsia is based, is translated to a growing market. By studying the buying patterns of these people, AirAsia can focused their marketing strategies. These growing market in South East Asia, which also recognized by the growing economies, means more and more people have an free disposable income. The South East Asian people are easily affected by others. A trend is easily formed, if a group of workers, families or students are using AirAsia to travel and explore new places and shared their experiences through social media, it can easily influence other similar groups in the society to do the same thing.4.0. Consumer Decision Making process.4.1. puzzle recognition.First stage of the consumer decision making process is the problem recognition. At this stage, a consumer is perceiving a need. In AirAsias case, is the need to travel. In some AirAsias advertisement, the marketing people shows a numerous travel destination, with each separate own picture, and shows how cheap it is now to get to those places by using AirAsia as their airline. Hence, it is underlining the need of the people. This relates to marketing mix, of PRODUCT, PRICE and PLACE. For PRODUCT and PRICE, no airlines before airasia can provide this low fare of airtickets. As for PLACE, airasia provides more destination regionally than any other airlines and also have new sales office in major cities not just in Malaysia, but also Indonesia and the Phillippines. Another thing, the internet booking, how airasia manage to save consumers time in purchasing of airticket, people can now buy their airtickets online, or even from their smartphones.The ad shows how cheap it is to travel to Paris. The need to travel,especially overseas, maybe as honeymoon, is already there, but now AirAsia, with these commercial s all over the place, is enhancing that need.4.2. Information anticipateThe information search by the consumers, clarify what options are there available to them. Which airline is the cheapest, which one is the most comfortable, hassle free and so on. There are two steps of information search4.2.1. inner Search.Internal search is where one search ones memory, recall any previous experience or information, in this case, related to air travel. An individual may remember how hard it is to purchase a ticket using a physical store, where the need to be at the travel agent physically and purchased the ticket. In marketing mix, PROMOTION, airasia is going all-out with their now everyone can fly tagline. Consumer can see this tagline everywhere billboards on roadsides, magazines, newspaper, even on news website as pop-up advertisement. Airasia is trying to objectt this tagline inside everyones mind, hence, by the time they want to purchase airticket, they straight away remember of airasi as now everyone can fly.4.2.2. External Search.Sources for external information are usually friends and family, public sources, and marketer-dominated source. Marketer-dominated sources are where AirAsias marketing team up excelled at. Their advertising aggressive all over the place and media, their websites are constantly updating with new time-limited promotions, causation people to access it more often. Now, consumers can even subscribe for their newsletter by emails.In relation to marketing mix, airasia provide new PRODUCT/SERVICE. The screenshot above shows AirAsia comes up with hassle free website, with its gilded page technology, that shows multiple destinations pictures that always changing in the home page.4.3. Evaluation of alternativesAt this stage, a consumer is evaluating what are the alternatives of choiceshe/she has. The company will always enhancing what are their superiorities over competitors. PRICE is one obvious thing why consumer choose AirAsia, theirs will o ften cheaper than others. Other way doing this is always one step onward in the technology side of marketing. AirAsia is the first airline that providing online purchasing through the internet. Now, where other low-cost airline also have the same feature on their website, AirAsia have come up with smartphone application. This application can be downloaded to a consumers smartphone, and he/she can easily make flight queries or purchasing ticket(s) or even buying hotel voucher, just by using his/her smartphone.4.4. Purchase decisionAt this stage, consumer are making their decision in which airline service to choose. AirAsias marketing people understand at the previous stages of CDP, they have excelled. Hence, at this stage, their marketing mix, PRODUCT, PRICE, PROMOTION and PLACE of AirAsia have succesfully target the consumer and guiding them into purchasing their service.4.5. Postpurchase behaviourAt this stage, the consumer compares the service they purchased with expectations and is either satisfied of dissastified. Expentancy disconfirmation with performance approach (Oliver, 1997) and the balancing paradigm (Fournier and Mick, 1999) are two current theories of consumer satisfaction. Satisfaction more likely to lead to repeat purchase/loyalty and substantiative Word of Mouth (WOM). Dissatisfaction more likely to lead to brand switching, complaints and negative word of mouth (WOM). In AirAsias case, they try to minimize the consumers expectations as low as possible.The two pictures above are the screenshot of airasia website when consumer purchasing airticket. It clearly shows that passengers will not get in-flight refreshment, no complimentary luggage, no choice of seats, unless they purchase all of these things in the website. By doing this, AirAsia managed to get their customers expectations as low as possible, beacuse they dont promise other than the service that you, as a customer, already purchased online.5.0. ConclusionAirasia has established themse lves as a profit making company and a succesful low cost carrier that prompted other airlines in the south east asian region to do the same thing. This company build their brand name with their tag line now everyone can fly, telling people that flying is now more affordable and easy. This tagline is also shaping their marketing mix. For their Product, Price, and Place, airasia clearly introduced a new way of flying by airlines, a cheap and easy one. At Consumer Decision Making process, the Product and Price influenced consumer at the Problem recognizition and Information search step process. With Promotion, they influence the steps of Information search and Purchase decision in the CDP process. Airasia is so aggressive in their promotional activities, by putting their tagline now everyone can fly in every advertisement and commercials.By understanding the psychological drivers and sociological drivers of consumer, airasia have executed its marketing plan briliantly, putting the type of advertisement that suitable. By understanding the Consumer Decision making process, AirAsia provide what kind of values that consumer seeks and asses in the information search, and evaluation of alternatives stages. By the time consumer making their purchase decision and postpurchase behaviour, these values are good enough to make them purchase airasias service and by not giving the consumer high expectations from the first time, the satisfaction rate from consumer is high. The succes story of AirAsia marketing strategies shows how important it is for a brand to understand the psychological drivers, sociological drivers and the decision making process of consumer behaviour.6.0. BibliographyAirAsia.com, 2013. Corporate profile. online Available at Accessed 22 celestial latitude 2013.Cohen, J, B, and Warlop, L. A Motivational Perspective on Means-End Chains. online Available at Accessed 30 celestial latitude 2013.Hawkins, D. I., Best, R. J. and Coney, K. A., 2001. Consumer Behavio ur Building merchandise Strategy. 8th ed. New York Irwin/McGraw-Hill.Lim, Y, K., Mohamed, R., Ariffin, A. and Guan, G, G., 2009. 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