Jet air ways-marketing services

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Jet air ways-marketing services

  1. 1. Introduction Background of the study: - Why Service Marketing? Services include all economic activities whose output are not a physical product, are generally consumed at the time it is produced, and provide added value in forms that are intangible concerns of its purchaser. 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.” Service Marketing Triangle Company Internal Marketing External – Enabling Promises Marketing – Making Promises
  2. 2. CustomersProducer Producer Keeping Promises – Interactive Marketing Customer 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 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.
  3. 3. Synopsis 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. Jet Airways would like to know passengers whether they have been satisfied by the quality and service of Jet Airways. So the study of customer satisfaction has been conducted. Objectives of the Study: - The objectives of the study are as follows: - 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 satisfaction level of Jet Airways passengers. 4. To know about the operation of the Jet Airways. 5. To know the customers' reaction to the company's service.
  4. 4. 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 to make the customers satisfy. 8. To maintain the customer satisfaction to be the delighted customer. The ultimate goal of the study is to find out the actual customers satisfaction level and in turn to convert non – satisfied customers and satisfied customers into satisfied customers and delighted customers, respectively. Need for the Study: - Whether the buyer is satisfied 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 satisfied or delighted. 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 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 their using the airline’s services satisfies the customers, whereas customer satisfaction or delight depends on the service quality. Scope of the Study: - The scope of the study is to judge the satisfactory level of Jet Airways' service quality whether the passengers are satisfied. Moreover, to find out the factors that
  5. 5. make the customers dissatisfy. Therefore, to convert unsatisfied customers to satisfied customers and maintain satisfied customers up to be delighted customers is the goal of the study. Expected Contributions: - 1. To maintain the good service quality and improve the unsatisfactory service which is toward the customer satisfaction and expectations. 2. To create a good image to the customers. 3. To create customer retention. 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.
  6. 6. Company Profile Historical Background of Airline Industry 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 country’s international airline while Indian Airlines operated on domestic routes. The liberalization of the economy in the 1990’s allowing private airlines to operate as Air Taxi Operators saw five major airlines come 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 “Businessman’s Preferred Airline.”
  7. 7. Today, it is a matter of pride that Jet Airways is widely recognized as “India’s 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. “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.
  8. 8. To ensure accurate and efficient reservation systems, Jet Airways tied up with and is co – hosted with SABRE – one of the world’s best reservations systems, which was initiated with the launch of the first flight. Within 3 months 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 250 flights daily to 41 destinations within India 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 day’s business in a distant city. Thirty – six millions passengers have flown Jet Airways in the last 10 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.
  9. 9. The Jet Airways “Magic Box” collection has assisted in the setting up of SPARSH, a special care center for the mentality challenged children and hearing impaired, starting comprehensive school programs for the under – privileged children, adopting a Municipal School and contribution to the Gujarat Earthquake Rehabilitation program. 1993 – 2003, 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.
  10. 10. JET AIRWAYS TIMELINE (DOMESTIC AIRLINE 1993 – 2003) Years EVENTS 1992 Jet Airways (India) Limited was founded by Mr. Naresh Goyal a Non – Resident Indian. 1993 May 5, Jet Airways started operation in India with the 737 – 300 series of aircraft. 1993 – 94 4 aircraft Boeing 737 – 300 leased from Ansett Worldwide Aviation Operations: 28 daily flights, 12 destinations with market share of 6.6%. 1994 April, two more Boeing B737 – 400s were acquired. Fleet of 6 Operations: 39 daily flights, 14 destinations. Frequent flyer Program (Jet Privilege). 1994 – 95 Jet Airways had increased its market share to an estimated 11%. 1995 14th January, Jet Airways was granted scheduled airline status and operating permit. 1998 Air Transport World, one of the world’s leading aviation magazines, stated that Jet Airways was the fastest growing airline in the world. In May, the airline introduced late night flights on the Mumbai – Delhi sector and branded it “Night Saver”. 1998 – 99 The B737 – 300s were phased out in, followed by the B737 – 500 aircraft. 1999 Jet Airways was the first airline in the country to introduce a three – tier frequent flyer program. 2001 The first private airline in India to have its own full flight simulator and flight-training device. 2002 Prestigious TTG Travel Award for the Best Domestic Airline in Asia Pacific. 2003 Over 250 flights to 41 destinations. Average age of fleet is around 3
  11. 11. years, making the fleet youngest in its size segment. 2003 May 5th, First airline in Southeast Asia to induct the Boeing 737 – 900. 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
  12. 12. 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. Achievements 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 “India’s favorite domestic airline”. Achievements so far Since the commencement, Jet Airways has achieved the status of the largest private domestic airline in India. The figures speak for themselves: -
  13. 13.  From 4 aircraft in 1993-94 to 41 aircraft in February 2003;  From 12 destinations in 1993-94 to 41 destinations in February 2003;  From 24 daily flights in 1993-94 to over 250 flights in February 2003. In the process, Jet Airways has carved out a market share of over 46% (estimated 2002 -2003). Jet Airways emphasis on technology and on time performance is one of the key factors of airline’s 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. Jet Airways operates over 250 flights daily to 41 destinations across the country. 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 was the first airline in India to receive the World Travel Market Global Award, the world's premier global travel event in London. 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. 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.
  14. 14. 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. Fleet Facts Jet Airways' current fleet consists of B737 New and Next-Generation aircraft and the modern turbo-prop ATR72-500 aircraft. CFM 56 engines power all the Boeing aircraft while the ATR aircraft are powered by Pratt and Whitney 127 engines. The average age of the fleet is 3 years making Jet Airways the operator of the youngest aircraft fleet in Asia. Jet Airways modern fleet of aircraft.
  15. 15. Aircraft No in Service B 737 - 900 01 B 737 - 800 13 B 737 - 700 12 B 737 - 400 08 ATR 72 – 500 08 Total No. 42 Research design
  16. 16. Purpose: - “Everyone knows what satisfaction is, until asked to give a definition. Then, it seems, nobody knows.” Richard L. Oliver quotes this sentence. This is the reason and purpose why this project report has been conducted. Before going beyond to do the research, I have referred the textbooks, journals, and articles from many sources. Through textbooks I got the broad idea about what the customer satisfaction is, and how and whether the importance is influenced to the today’s business in airline industry. Methodology: - After knowing the purpose, next step was methodology. Collecting and gathering the data was the first thing, which was done. From many textbooks, articles, journals and Internet Web Site information was collected for this project report as below: -  Service Marketing: Integrating Customer Focus Across the Firm (2003) by Valarie A. Zeithaml and Mary Jo Bitner.  Service Marketing (1999) by Roland T. Rust, Zahorik J. Anthony and Tinothy L. Keiningham. “Gaining Altitude” from the Economics Times Bangalore on 5 th June 2003, pp.8 – 10.  “10 years of service and growth” from Jetwings Magazine, vol.3, May 2003, Issue 5, pp.16 – 30 Internet Web Site: -  www.jetairways.com  www.servicemanagement.com
  17. 17. After these materials were collected, they were analyzed in points to do the report project. Conclusion: - From the gathered data, it is shown the importance of customer satisfaction and how it can link to delighted customers. The benefits derived from the literature review are as follows: - 1. It can help us to understand concept of the topic, which has been done. 2. Many ideas guide us how to do and analyze the project report. Conceptual Framework
  18. 18. “Definition of Customer Satisfaction” Everyone knows what satisfaction is but when they are asked to give a definition. It seems nobody knows. From the previous sentence, Richard L. Oliver expresses the definition of satisfaction as given below. “Satisfaction is the consumer’s fulfillment response. It is a judgment that a product to 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 Influence Customer Satisfaction • Product and service features • Consumer emotions • Attributions for service success or failure • Perceptions of equity or fairness Product and Service Features Customer satisfaction with a product or service is influenced significantly by the customer’s evaluation of product or service features. Research has shown that
  19. 19. 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. 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
  20. 20. 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 with products or services. Customer Satisfaction Product Catering Cost Delivery Product After Performance to Change Range Sales Service Figure 1: Other Factors Influence Customer Satisfaction
  21. 21. Reliability Situational Responsiveness factors Service Quality Assurance Empathy Product Quality CUSTOMER Tangibles SATISFACTION Price Personal Factors Figure 2: Components of Customer Satisfaction Components of Customer Satisfaction The factors that make the customer satisfy are given below: 1. Service Quality
  22. 22. • 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. 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.
  23. 23. • Responsiveness: Prompt and speedy system for ticketing, inflighted, 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 can provide. These include repurchase, positive word of mouth, increasingly profit and sales and so on. Why does the organization think about the important of the customer satisfaction?
  24. 24. Nowadays, many organizations look at the important of the customer satisfaction with the reasons are 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 1. Repurchasing Satisfied Customer Delighted Customer 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 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
  25. 25. 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 or delight creates an emotional affinity with the brand, not just a rational preference and this creates high customer loyalty. Satisfaction level Satisfaction level is a function of the difference between perceived performance and expectations. A customer could experience one of the 3 broad levels of satisfaction.  If the performance comes under the expectations, the customer is dissatisfied.  If the performance matches the expectations, the customer is satisfied.  If the performance exceeds the expectations, the customer is highly satisfied, pleased or delighted. From the following equations, they explain these relationships:  Perceived delivery < Expectation  Dissatisfaction  Perceived delivery = Expectation  Satisfaction  Perceived delivery > Expectation  Delight  Perceived delivery >> Expectation  Astonishment Methodology Type of Research: -
  26. 26. For preparation of the project report, several methods were used to collect data and pertinent information. The data required fro the study were collected from primary and secondary sources. Detailed questionnaires were prepared for passengers as well as for agencies 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. It this study, the passengers have traveled by Jet Airways, Indian Airlines and Air Sahara. 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 and agencies of Jet Airways. Passengers were selected from different professions, age groups who belong to different income levels without any kind of bias. Sampling process incorporates four steps as given below: Determine the sampling frame Select sampling technique Determine the sample size Execute the sampling process
  27. 27. Sample Size and Sample Description: - The sample size of this study is the questionnaire, which is divided into 2 parts: -  50 questionnaires from passengers  10 questionnaires from agencies Instrumentation Technique: - The study is conducted by using Instrumentation Technique. Questionnaire: The sample size of questionnaire is divided into 2 parts: -  50 questionnaires from passengers  10 questionnaires from agencies 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
  28. 28. 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 company’s 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 Tools used for testing of hypothesis: - “Chi – Square Test (ψ) ” 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
  29. 29. 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: Ψ 2cal = (O – E) 2 / E 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. HYPOTHESIS Statistically inference is that branch of statistics, which is concerned with using probability concept to dealt with uncertainty in decision – making. The field of statistical inference has had a fruitful development since the later half of the 19 th century.
  30. 30. It refers to the process of selecting and using a sample statistical to draw inference about a population parameter based on a subset of it – the sample drawn from the population. Statistical inference treats two different classes as problems: 1. Hypothesis testing, i.e., to test some hypothesis about parent population from which the sample is drawn. 2. Estimation, i.e., to use the ‘statistics’ obtained from the sample as estimate of the unknown ‘parameter’ of the population from which the sample is drawn. In both these cases the particular problem at hand is structured in such a way that inferences about relevant population values can be made from sample data. 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.” There can be several types of hypotheses. For example, a coin may be tossed 200 times and we may get heads 80 times and tails 120 times. We may now be interested in testing the hypothesis that the coin is unbiased. To take another example we may study the average weight of the 100 students of a particular college and may get the results as 110 lb. We may now interested in testing the hypothesis that the sample has been drawn from a population with average weight 115 lb. Similarly, we may be interested in testing the hypothesis that the variable in the population are uncorrelated.
  31. 31. Procedure of Testing Hypothesis The procedure of testing hypothesis is briefly described below: 1. Set up a hypothesis: The first thing in hypothesis testing is to set up a hypothesis about a population parameter. Then we collect sample data produce sample statistics, and use this information to decide how likely it is that our hypothesized population parameter is correct. 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. 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. Ho: µ1 − µ2 = 0 (Null Hypothesis) Ha: µ1 − µ2 ≠ 0 (Alternative Hypothesis)
  32. 32. 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’, 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.
  33. 33. 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 Correct Type I Ho is true. decision Error Type II Correct Ho is false. Error Decision Obviously, the first two possibilities lead to errors. The Test of Hypothesis: Chi – Square Test The hypothesis test of ranking airlines: Airlines Rank No. 1 Respondents % Jet Airways 33 66% Indian Airlines 11 22% Air Sahara 6 12% Total 50 100% Observed Expected (O – E) 2 (O − E ) 2 Value (O) Value (E) E 66 33.33 1067.3289 32.023 22 33.33 128.3689 3.8514
  34. 34. 12 33.33 454.9689 13.6504 Ψ 2 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.  Ψ2tab = 5.99 (O − E ) 2 Test Statistics Ψ 2 = ∑ E Test Ψ 2 cal = 49.5248 Conclusion Since Ψ2cal > Ψ2tab, Ho is rejected. ∴ Jet Airways ranking is very good. The Test of Hypothesis to find out the Preference between ‘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
  35. 35. P1 − P0 Z= P0 × P0 n 0.76 − 0.50 0.5 × 0.5 = 50 0.26 = 0.0707 = 3.68 Conclusion: It is showing highly significance i.e. 3.68. ∴ The passengers prefer to travel by economic class. Table No.1 Showing the distribution of respondents, According to gender Gender No of Percentage Respondents Male 40 80% Female 10 20% Total 50 100% Analysis and Interpretation Respondents are selected on random so there are both males and females. This study stated 40 out of 50 are male respondents (80%) and 10 out of 50 are female respondents (20%).
  36. 36. Chart No.1 Showing the distribution of respondents, according to gender 90% 80% 80% 70% 60% Percentage 50% Male 40% Female 30% 20% 20% 10% 0% 1 Gender SOURCE TABLE NO:1
  37. 37. Table No. 2 Showing the distribution of respondents, according to the age group Age Group No of Respondents Percentage 21-30 22 44% 31-40 10 20% 41-50 11 22% 51-60 5 10% 61-70 1 2% 71-80 1 2% Total 50 100% Analysis and Interpretation From the above table, we can see that 44% of the respondents belong to the age group of 21 – 30. While the second age group is between 41 – 50 (22%). Other age group respondents are negligible.
  38. 38. Chart No. 2 Showing the age group of the Respondents 25 22 20 no of respondents 15 11 10 10 5 5 1 1 0 21-30 31-40 41-50 51-60 61-70 71-80 Age group SOURCE TABLE NO.2
  39. 39. Table No. 3 Showing the distribution of respondents, according to the educational background Education No of Respondents Percentage Pre – University 1 2% Degree 11 22% Post Graduate 31 62% Above PG 7 14% Total 50 100% Analysis and Interpretation From the data, we interpret that post graduates believe in traveling in style whereas the others fall in a narrow bracket.
  40. 40. Chart No. 3 Showing the distribution of respondents, according to the educational background 35 31 30 25 No of Respondents 20 15 11 10 7 5 1 0 Pre - University Education PG Degree Above PG Education SOURCE TABLE NO:3 Table No. 4 Showing the distribution of respondents,
  41. 41. according to the occupation Occupation No of Respondents Percentage Student 17 34% Working group 19 38% Others 14 28% Total 50 100% Note: Due to the limitation of sample size, the private company, businessman, government sector and public company were grouped together. Analysis and Interpretation The above table shows 38% of respondents are in working group, which belongs to the private company, businessman, government sector and public company. 34% are students while 28% belongs to other occupations. From this we can infer that more than 50% of people travelling by air are either businessmen or white-collar workers.
  42. 42. Chart No. 4 Showing the Occupation Profile 20 18 16 no of respondents 14 12 10 19 8 17 14 6 4 2 0 Student W orking Group Others occupation SOURCE TABLE NO:4
  43. 43. Table No. 5 Showing the monthly income of respondents Monthly Income No of Respondents Percentage Less than 20,000 17 34% 20,001 – 30,000 17 34% 30,001 – 50,000 7 14% Above 50,000 9 18% Total 50 100% Analysis and Interpretation It has been observed from the above data that about 34% from the total respondents comes under wage bracket below Rs.10,000, 34% comes under Rs.10,001 to 30,000 income bracket, 14% comes under Rs.30,001 to 50,000 income bracket and 18% comes under Rs.50,000 and above income bracket. It is inferred that middle class people prefer to travel by air for mental satisfaction or status.
  44. 44. Chart No.5 Showing the Monthly Income Above 50,000 Less than 18% 20,000 30,001 – 34% 50,000 14% 20,001 – 30,000 34% SOURCE TABLE NO:5 Table No. 6 Showing the travel frequency of respondents
  45. 45. Frequency No of Respondents Percentage Weekly 3 6% Monthly 14 28% Yearly 20 40% Others 13 26% Total 50 100% Analysis and Interpretation From the above table, it is understood that most of the passengers have travelled once a year (40%). 14 out of 50 travel frequently and 13 out of 50 travel occasionally. Marginal 6% travel continuously by air. Chart no.6 showing the frequency of travel by air. 25 20 20 No of respondents 15 14 13 Series1 10 5 3 0 Weekly Monthly Yearly Others Frequency SOURCE TABLE NO:6
  46. 46. Table No. 7 Showing the distribution of respondents, according to the purpose of travelling by air Purposes No of Respondents Percentage Business 12 24% Leisure 7 14% Business and Leisure 10 20% Others 21 42% Total 50 100% Analysis and Interpretation Most of the passengers travel by air for different reasons. Most passengers prefer to travel by air for business purpose ie; 24%. While 14% prefer to travel for leisure, where as 20% prefer travelling for both work and leisure. Others include those who travel to meet their relatives, subordinates who are sent by their superiors for business purpose and those who travel for educational purposes[students].others also include businessmen and doctors who travel to attend seminars and functions.ie; 42%. Others also include those who travel exclusively for shopping.
  47. 47. Chart no.7 showing the purpose of travel by air. 25 21 20 No of respondents 15 12 10 10 7 5 0 Business Leisure Business and Others Leisure Purpose SOURCE TABLE NO:7
  48. 48. Table No. 8 Showing the distribution of respondents, according to the most preferred airline. Airlines No of Respondents Percentage Jet Airways 28 56% Indian Airlines 16 32% Air Sahara 6 12% Total 50 100% Analysis and Interpretation 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 Indian Airlines and Air Sahara, respectively.
  49. 49. Chart No. 8 Showing the most Preferable Airline 30 28 25 20 no of respondents 16 15 10 6 5 0 Jet Airways Indian Airlines Air Sahara Airlines SOURCE TABLE NO:8 Table No.9 Ranking of Preferable Airline,
  50. 50. according to the no of respondents Airlines Rank No. 1 Rank No. 2 Rank No. 3 Respondents % Respondents % Respondents % Jet Airways 33 66% 15 30% 2 4% Indian Airlines 11 22% 18 36% 21 42% Air Sahara 6 12% 17 34% 27 54% Total 50 100% 50 100% 50 100% Analysis and Interpretation 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 the Indian Airlines i.e. 22% and Air Sahara i.e. 12%. For the second preferable, the passengers prefer the Indian Airlines as the second option i.e. 36%, while the Air Sahara is the third option i.e. 54%. Overall Jet Airways is the most favourable airline followed by the Indian Airlines and Air Sahara.
  51. 51. Chart No. 9 Ranking the Airline 35 33 30 27 25 21 No of respondents 20 18 17 15 15 11 10 6 5 2 0 Jet Airways India Air Sahara Airlines Airlines Rank No. 1 Respondents Rank No. 2 Respondents Rank No. 3 Respondents SOURCE TABLE NO:9
  52. 52. Table No. 10 Showing the distribution of respondents, according to the class, which the passengers prefer to travel Class No of Respondents Percentage Executive/Business Class 9 18 % Economic Class 38 76 % Both 3 6% Total 50 100 % Analysis and Interpretation 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.
  53. 53. Chart no.10 showing the distribution of respondents according to the class in which the passenger prefer to travel 40 38 35 30 No of respondents 25 20 15 9 10 5 3 0 Business Class Economic Class Both Class prefered SOURCE TABLE NO:10
  54. 54. Table No. 11 showing the reasons to select the airline. C No of Respondents Percentage Friends 10 20% Family 11 22% Advertisement 13 26% Others 12 24% More than two reasons 4 8% Total 50 100% Analysis and Interpretation By seeing this table, we can understand that the family is the main factor to influence the passengers for selecting a specific airline (24%). Similarly others (24%), is either customer’s suggestion or the convenience of the airline’s schedule being the other reason for the passengers to select the airline. others also include those passengers who are brand conscious, those who prefer the best of the lot. While friends and advertisement are the other reasons that make the passengers select a particular airline ie; 12%, and 10% respectively. 6% of passengers show preference for a particular airline for more than 2 reasons.
  55. 55. Table no.11 showing the reason to select the airline 14 13 12 12 11 10 No of respondents 10 8 6 4 4 2 0 ds rs ily t en s he ien m on m Fa Ot Fr as se re rti ve o tw Ad an th e or M Particulars SOURCE TABLE NO:11 Table No. 12 Showing the reasons to travel by air
  56. 56. Reasons No of Respondents Percentage Airfare 16 32% Convenience 40 80% Service 26 52% Image 13 26% Accessibility 9 18% Cabin Crew 7 14% Punctuality 18 36% Responsibility 8 16% Safety 19 38% Discount 5 10% Onboard Promotion 2 4% Food 12 24% Network 12 24% Others 4 8% Note: - The difference between the total number of respondents and total percentage is because some respondents do not use a particular airline and some respondents use more than one airline service. Which means few respondants have chosen more than two or more reasons. Analysis and Interpretation There are many reasons that the passenger selects to travel by air. From the table we infer 80% of passengers have selected by air travel because of convenience, 52% for service, 38% for safety, 36% for punctuality, 32% for airfare, 26% for image, 24% for food and network, 18% for accessibility, 16% for responsibility, 14% for cabin crew, 10% for discount, 8% for others reason and 4% for onboard promotion, respectively.
  57. 57. Chart No.12 Showing the Reasons to Travel by Air Others 4 Network 12 Food 12 Onboard Promotion 2 Discount 5 Safety 19 Responsibility 8 Punctuality 18 Cabin Crew 7 Accessibility 9 Image 13 Service 26 Convenience 40 Airfare 16 0 20 40 60 No of Respondents SOURCE TABLE NO:12 Table No. 13 Showing the overall opinion of respondents,
  58. 58. according to the airlines’ services Overall Opinion Excellent Good Average Dissatisfaction Freq. % Freq. % Freq. % Freq. % Airfare 5 10 32 64 10 2 3 6 0 Reservation 14 28 28 56 8 1 - - 6 Help Desk 11 22 21 42 17 3 1 2 4 Check-in 16 32 23 46 10 2 1 2 Counter 0 In flight 13 26 22 44 13 2 2 4 6 Security 12 24 22 44 14 2 2 4 Checking 8 Food 15 30 20 40 11 2 4 8 2 Aircraft 9 18 27 54 11 2 3 6 2 Schedule 17 34 20 40 12 2 1 2 Convenience 4 Onboard 5 10 10 20 24 4 11 22 Promotion 8 Others 1 2 4 8 1 2 1 2 Note: In the above table, Freq refers to the number of respondents. Analysis and Interpretation The above table has been designed to show the satisfaction level of passengers regarding services, which are provided by airline. From the above data, it can be explained that: -  Overall services were rated as follows: - airfare (64%), reservation (56%), help desk (42%), check-in counter (46%), in-flight (44%), security checking (44%), food (40%), aircraft (54%), schedule convenience (40%), and others (8%) -- discount and punctuality.
  59. 59.  While most of passengers are not satisfied by the onboard promotion (i.e. 48%). Most of the passengers are quite satisfied on airline’s services. Chart No. 13. Showing the overall opinion of respondents, regarding to the airlines’ services Excellent % Good % Average % Dissatisfaction % 100% 0 2 2 2 6 4 4 6 8 16 2 90% 22 20 24 20 26 22 34 28 22 80% 2 70% 60% 56 46 40 48 Percentage 50% 40 44 44 54 64 42 8 40% 30% 20% 20 32 34 28 30 26 24 10% 22 18 2 10 10 0% od rs n re ft ng sk r e t n te gh io nc ra io he rfa Fo De ki un at rc fli ot ie Ot ec Ai rv Ai Co en lp om In Ch se He nv in Pr Re y Co k- ri t d ec ar cu e ul bo Ch Se d On he Sc Service parameters SOURCE TABLE NO:13
  60. 60. Table No. 14(a): Showing the opinion of Jet Airways’ respondents, according to the airline’s services. Jet Airways Excellent Good Average Dissatisfaction Freq. % Freq. % Freq. % Freq. % Airfare 2 7 21 75 4 14 1 4 Reservation 12 43 15 53 1 4 - - Help Desk 8 29 15 53 5 18 - - Check-in 12 43 13 46 3 11 - - Counter In flight 12 43 11 39 5 18 - - Security 5 18 16 57 6 21 1 4 Checking Food 9 32 15 53 3 11 1 4 Aircraft 8 29 16 57 4 14 - - Schedule 13 46 11 39 4 14 - - Convenience Onboard 3 11 7 25 11 39 7 25 Promotion Others 2 7 2 7 - - - - Note: In the above table, Freq refers to the number of respondents. Analysis and Interpretation The above table shows the data about the satisfaction level of Jet Airways’ passengers.  75% of passengers rated the airfare good while 14%, 7%, and 4% rated at average, excellent and dissatisfactory level, respectively.  Similarly reservation (53%), help desk (53%), check-in counter (46%), security checking (57%), food (53%), and aircraft (57%) have been rated.  For the in-flight service (43%) and schedule convenience (46%) has been the rating.
  61. 61.  39% of passengers are satisfied with onboard promotion at the average level while 25% are not satisfied. Chart No. 14(a): Showing the opinion of Jet Airways’ respondents, according to the airline’s services Excellent % Good % Average % Dissatisfaction % Jet Airways 100% 0 0 0 0 0 0 0 4 4 4 11 11 14 14 90% 18 18 14 25 21 80% 7 70% 53 46 39 39 60% 53 57 53 39 Percentage 50% 57 75 40% 30% 7 46 25 43 43 43 20% 32 29 29 10% 18 11 7 0% s t d re g n er k e ht n af er oo in io es nc io fa nt ig cr th k at F D ot ie ir ou ec fl ir O v A n p om A er In h C ve el C es n H Pr on -i ty R k C rd ri ec cu le oa h du Se nb C he O Sc Service param eters SOURCE TABLE NO:14(a)
  62. 62. Table No. 14(b): Showing the opinion of Indian Airlines’ respondents, according to the airline’s services Indian Airlines Excellence Good Average Dissatisfaction Freq. % Freq. % Freq. % Freq. % Airfare 2 13 9 57 4 24 1 6 Reservation 1 6 9 57 6 37 - - Help Desk 1 16 5 31 9 57 1 6 Check-in 2 13 6 37 7 44 1 6 Counter In flight - - 7 44 7 44 2 12 Security 5 31 4 25 6 38 1 6 Checking Food 2 13 4 24 8 50 2 13 Aircraft - - 6 37 7 44 3 19 Schedule 2 13 8 50 5 31 1 6 Convenience Onboard - - 3 19 10 62 3 19 Promotion Others - - 1 6 2 13 1 6 Note: In the above table, freq refers to the number of respondents. Analysis and Interpretation From the above table, we can see the satisfaction level of Indian Airlines’ passengers.  There are 57% of passengers who rated the airfare at good level while 24%, 13%, and 6% of respondents have rated at average, excellent and dissatisfactory, respectively.  Similarly reservation (57%), in-flight (44%) and schedule convenience (50%) are the ratings.  While for help desk (57%), check-in counter (44%), food (50%), security checking (38%) and aircraft (44%) are the favourable rating.  62% of passengers are satisfied with onboard promotion at the average level, similarly 19% are dissatisfied.
  63. 63. Chart No. 14(b): Showing the opinion of Indian Airlines’ respondents, according to the airline’s services Indian Airlines 100% 0 6 6 6 6 6 12 13 90% 19 19 6 24 37 80% 31 38 44 70% 57 44 50 60% 44 percentage 50% 62 13 25 57 40% 50 57 30% 37 31 24 44 20% 37 31 6 10% 19 13 16 13 13 13 6 0% 0 0 0 0 s t d re g er on k e ht n af er in oo es nc io fa nt ig ti cr th k D F ie ot ir va ou ec fl ir O A n p om A er In h C ve el C es n H Pr on -i ty R k C rd ri ec cu le oa h du Se nb C he O Sc Excellence % Good % Average % Dissatisfaction % SOURCE TABLE NO:14(b) Table No. 14(c): Showing the opinion of Air Sahara’s respondents, according to the airline’s services
  64. 64. Air Sahara Excellent Good Average Dissatisfaction Freq. % Freq. % Freq. % Freq. % Airfare 1 17 4 66 1 17 - - Reservation 2 34 4 66 - - - - Help Desk 2 34 3 50 1 16 - - Check-in 2 34 3 50 1 16 - - Counter In flight 2 34 4 66 - - - - Security 2 34 3 50 1 16 - - Checking Food 4 66 2 34 - - - - Aircraft 1 16 5 84 - - - - Schedule 1 16 2 34 3 50 - - Convenienc e Onboard 2 34 1 16 3 50 - - Promotion Others - - 1 16 - - - - Note: In the above table, Freq refers to the number of respondents. Analysis and Interpretation It has been observed from the above table that: -  Respondents feel airfare (66%), reservation (66%), help desk (50%), check-in counter (50%), in-flight (66%), security checking (50%), and aircraft (80%)and others service (16%) are good.  While respondents are in favour of excellence i.e.66%.  Similarly, 50% of respondents feel that they are not been satisfied with schedule convenience and onboard promotion. Chart No. 14(c): Showing the opinion of Air Sahara’ respondents, according to of the airline’s services
  65. 65. Air Sahara Excellent % Good % Average % Dissatisfaction % 100% 0 0 0 0 0 0 0 0 0 0 0 17 16 16 16 90% 34 80% 50 50 70% 66 66 60% 50 50 50 84 percentage 50% 66 16 16 40% 66 34 30% 20% 34 34 34 34 34 34 10% 17 16 16 0% 0 s t re d g on er k e n ht af er oo in es nc io fa nt ig ti cr th k F D ot ie ir va ou ec fl ir O A n p om A er In h C ve el C es n H Pr on -i ty R k C d ri ec ar cu e ul o h Se nb C d he O Sc service param eters SOURCE TABLE NO:14(c) Table No. 15(a): Showing the ranking of the satisfaction level, according to the airlines’ services

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