• Title/Summary/Keyword: Airline Market

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A Study on the Effect of Storytelling Marketing on Brand Image and Brand Attitude

  • Kim, Hye-Jin;Park, So-Yeon;Park, Hye-Yoon
    • The Journal of Economics, Marketing and Management
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    • v.6 no.4
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    • pp.1-16
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    • 2018
  • Purpose - This study will investigate and identify the relationship between brand image, brand attitude and intent to purchase based on subjects that have remembered or watched more than one storytelling marketing ad related to airlines. The purpose of the project is to secure market competitiveness by presenting the basis for and use of the marketing strategy using storytelling, which can capture the goodwill of the aerospace competition market in the future. Research, design, data, and methodology - Prior to the research model and hypothesis testing phase, a verification factor analysis was conducted to assess internal consistency among each measurement item and to ensure reliability and validity of the measurement tool. Further, the organization was assessed for validity by calculating the mean variance estimation (AVE) and the construction concept reliability (CCR) through a positive factor analysis. Hypothesis verification was analyzed through a structural equation model, and each concept set in the hypothesis was entered as a potential variable, and each measurement item was entered as an observation variable. Results - Airline's storytelling marketing has a significant impact on the brand image and two emotional and cognitive responses have been shown to influence the brand image. In addition, airline storytelling marketing has a significant impact on brand attitudes and airline storytelling marketing derived from factor analysis has shown two emotional and cognitive responses to brand attitudes. Conclusions - The parts derived based on the research results show that storytelling marketing has a strong influence on the airline's brand image and attitude, and that it is necessary for airlines to have a brand image and attitude. Also, forming a favorable brand image has a significant impact on brand attitudes. We believe that by presenting basic data to the aviation industry in future research on airline storytelling, we will be able to increase understanding and contribution to development of storytelling marketing in aviation.

A study on Management Strategy and Cases of Failure of Low Cost Carriers (저원가 항공사의 경영전략과 실패사례에 관한 연구)

  • Ha, Su-Dong;Lee, Yun-Cheol
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.14 no.2
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    • pp.45-55
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    • 2006
  • Air transportation industry becomes more competitive because that the restrictions on new access to market were eased and related enough for each airline to choose the freight rate and the route without rein. New competitors are pursuing convergence strategy which focuses on low freight rate as a niche strategy for increasing market share by stimulating low cost demand. This strategy is now spreading all over the world such places as Europe, Asia, Oceania and etc. As of December 1, 2004, hundreds of low cost carriers are participating actively in the market and finding their level as a new strategic group in the air transportation industry with expanding their market. In case of USA, however, many airlines, which had newly entered to the market, went into bankruptcy in the mid-1980s. People Express in USA established in 1980 is one of the examples of failure. In case of Japan, Hokkaido International Airline, a typical low cost carrier which established in 1997, filed for bankruptcy. This study is for examining the strategic implication closely through the study on management strategy and cases of failure of low cost carriers.

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Legal Constraint of Airline Alliance (항공사 제휴의 법적 규제)

  • Suh, Myung-Sun
    • The Korean Journal of Air & Space Law and Policy
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    • v.21 no.2
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    • pp.181-205
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    • 2006
  • After introduced in 1980's, the Frequent Flyer Program(FFP) was one of the most successful marketing tools in the airline industry and it has become a major linkage pin of strategic alliances for airlines despite of legal constraint. Further, the world air transport market progresses rapidly from a one-to-one alliance to a global alliance among groups due to fierce competition of the markets. In this study, I first examine the trends and the characteristics of global alliance groups. Further, I analyze the types of airline strategic alliances in the FFP, and present management strategy of the FFP for national flag carriers based on the collected data. It is suggested that airlines, including the two major Korean airline companies, consider the advantages of strategic alliances on the FFP in a rapidly changing management environment.

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Analysis on the Exchange Value of Traffic Rights between Korea and China Strategic Route: Focusing On Incheon International Airport (한중 전략노선 운수권 교환가치 분석: 인천국제공항을 중심으로)

  • Choi, Yu-Jin;Park, Jung-Hee
    • Korea Trade Review
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    • v.44 no.1
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    • pp.159-175
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    • 2019
  • In China, the government has aggressively led the construction and expansion of airports across China. Upon this opportunity, "Korea-China" network is expected to expand. Therefore this study tried to deduce implications for Incheon International Airport by expansion of "Korea-China" traffic rights. As a result of analyzing the exchange values of traffic rights on the "Incheon~Beijing/Chengdu" routes, it was found that there is a concern that Chinese airlines could make inroads into Korean airline's market. In both routes, Korean airline's market share and passenger demand increased while the sales decreased after expanding traffic rights. On the other hand, Chinese airlines showed an increase in sales and a larger passenger growth than Korean airlines. Therefore it is necessary for the government to expand the traffic rights through detailed route value analysis.

e-Business Impacts on Distribution Channel in Airlines (항공사 유통경로에 대한 e-비즈니스 파급효과)

  • Yoon Duk Young;Lee Hwi Young;Kim Kee Woong;Yoon Moon-Gil
    • Korean Management Science Review
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    • v.22 no.1
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    • pp.149-165
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    • 2005
  • From the growth of internet technology, many e-commerce principles have been Introduced In airline industry. The computer reservation systems(CRS) has been considered as the first real-time business application and the earliest examples of e-commerce. in airlines, the early e-business activity was to build the web site for providing flight Information to customers. Recently, many airlines are expanding the capability of the web site for selling tickets on the web to make use of the cheaper distribution channel. In this paper, we focus on the impacts of airline e-business being implemented in airline distribution channels. Using the conjoint analysis, we suggest a model for estimating the change of market sales for each distribution channel. With the empirical survey, we can find some implications on the e-business strategy and the effective internet marketing tools for airlines.

A study on the Effect of Aviation Safety over the Air Passenger's Behaviour for Enhancement of Aviation Safety Management (항공안전관리 향상을 위한 항공여객의 행동 변화 연구)

  • Lee, K.S.
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.13 no.4
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    • pp.11-28
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    • 2005
  • The research purpose of A Study on the Effect of Aviation Safety over the Air Passenger's Behavior for enhancement of aviation safety management lies at the judgement that passenger's airlines choice criteria has much changed after several serious aviation accidents as before when we used to overlook "aviation safety" variable through surveying to Korean aviation passengers and foreigners visit or travel Korea on various purposes. This study will be regarded significant in terms that empirical analysis was used to prove "Aviation Safety", a variable which had not been regarded as a airline choice factor within Korea air transport market so far, and has an effect on the air passengers' airline preference change and choice after recent frequent aviation accidents. I wish, it can be another opportunity for Korean two national flag airlines to reappraise and reinforce the significance of "aviation safety" and set forth immediate vigorous efforts to support the government's aviation safety improvement countermeasures.

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e-Business Impacts on Distribution Channel in Airlines (항공사 유통경로에 대한 e-비즈니스 파급효과)

  • Yun Mun-Gil;Yun Deok-Yeong;Lee Hwi-Yeong
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.10a
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    • pp.99-115
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    • 2004
  • From the growth of Internet technology, many e-commerce principles have been introduced in airline industry. The computer reservation systems(CRS) is the first real-time business application and considered as the earliest examples of e-commerce. In airlines, the early e-business activity was to build the web site for providing flight information to customers. Recently, many airlines are expanding the capability of the web site for selling tickets on the web to make use of the cheaper distribution channel. In this paper, we focus on the impacts of airline e-business being implemented in airline distribution channels. Using the conjoint analysis, we suggest a model for estimating the change of market sales for each distribution channel. With the empirical survey, we can find some implications on the e-business strategy and the effective internet marketing tools for airlines.

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An Empirical Study of the Effect of the Internet on Fares in the U.S. Airline Industry

  • LEE, HWA RYUNG
    • KDI Journal of Economic Policy
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    • v.37 no.1
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    • pp.1-18
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    • 2015
  • A reduction in search costs is generally believed to make markets more competitive. However, the effect may be mitigated or amplified if consumers must pay costs for switching products. This paper investigates how search costs affect prices in the presence of switching costs using U.S. domestic airfare data for 2000-2010. The airline industry experienced a dramatic decrease in search costs with increasing Internet use in the 2000s. At the same time, the industry is known for its frequent flyer programs (FFPs), which increase switching costs for consumers. We use the average network size of airlines in a market as a proxy for switching costs related to FFPs and Internet usage as a proxy for (the inverse of) search costs. The results show that increasing Internet usage lowers airfares but that the effect is smaller for markets with a larger average network size.

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Asiana Airlines' Computer Reservation System (아시아나 항공의 예약정보시스템)

  • Sin, Hun;Jeong, In-Geun
    • Asia pacific journal of information systems
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    • v.1 no.1
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    • pp.165-181
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    • 1991
  • This paper presents a developmental approach undertaken by Asiana Airlines to implement computerized reservation system (CRS), Asiana Airlines is a new entrant into the once monopolized airline business in Korea. As a new entrant, it was absolutely necessary to develop CRS fast to begin the business in a relatively short period of time. By taking the risk of choosing Airline Control System which no airlines has yet implemented CRS with, Asiana Airlines was able to shorten development time considerably as well as integrate CRS with internal management information systems. This enhances system flexibility greatly. It is initially viewed that developing CRS is not to get competitive advantage but to overcome competitive disadvantage at Asiana Airlines. The paper also surveys the changing environment of CRS in general and the future implementation plan for ARTIS(Asiana Airline Reservation and Travel Information System) to be more of a competitive weapon in increasingly competitive international air travel market.

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The Effect of Satisfaction, Trust and Repurchase Intention in Airline Industry Quality (항공산업품질의 만족, 신뢰 및 재구매 효과)

  • Lee, Chang Won;Kim, MiJeong
    • Journal of Korea Society of Industrial Information Systems
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    • v.19 no.2
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    • pp.137-145
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    • 2014
  • The paper is to investigates how influence service quality satisfaction, trust and repurchase intention using SERVPERF instrument in airline industry. This study will contributes to provide development strategies how to expense market and strength relation between customer to FSC and LCC by an empirical study. This study uses computer software of SPSS 20.0 and AMOS 20.0 for study analysis. The LCC should strengthen the price competitiveness, as well as it needs to establish a strategic management distinguishing service quality from other airline. The airline will has improved service quality of reliability and tangibles since improve service of reliability and tangibles. This study will provide strategic insights and information on service quality in airline industry.