Marketing Research - Essay Example

Ryan operates scheduled-passenger airline serving short-haul, point-to-point lights. In 2012, the Company offered more than 1,500 scheduled short distance flights every day serving 150 airports largely throughout Europe with an operating fleet of 294 aircraft flying approximately 1 ,500 routes (Box, Buys, 2007). In the fast growing and changing, technology and computer centralized airline industry the Ryan achieved significant growth and profitability in the very competitive market, as a result of its low cost business model.

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Ryan was one of the first airlines in Europe to adopt the low-cost model which aims to offer lower fares, eliminating some inform and services that were traditionally guaranteed (Amalgamate, Appealer, & Redound, 2009). Ryan today is nothing but an uncomfortable ride. According to Michael Kevin O’Leary, the chief executive officer of the Irish airline Ryan: “people will put up with Just about anything for a cheap fare, make it cheap enough, and they might even live with toilet-free planes” (Warnock, 2011).

Problem background and definition Headlines: Ryan voted Rupee’s worst airline (Smith, 2012). Ryan voted least popular short-haul airline (Massey, 2012). – Ryan bottom of consumer satisfaction poll (Kennedy, 2013). Ryan boss labels passenger ‘stupid’ over boarding pass charge (Smith, 2012). – Ryan made its loyal customers angry (musicians), they are intended to punish the company with boycott (Smith, 2012). More than 5500 passenger rated different airlines in a customer satisfaction survey referring to range variety of categories from check in process to value for money (Smith, 2012).

According to the newspapers’ articles it can be seen that the number of customer complaints significantly increased referring to consumer’s satisfaction, add-on charges and poor services such as: one star ratings for baggage allowance, boarding arrangements, seat allocation, food and drinks. Based on a customer satisfaction survey (563 responses) conducted by consumer magazine, Ryan achieved only 34% in overall score reaching the 16th place in the table (Massey 2012). In the category of boarding arrangement, baggage allowance, seating allocation and food and drinks the Ryan achieved only one out of five (Smith, 2012).

Many item provided by Ryan, such as Kit Kate, a bottle of water or a cup of tea, are unreasonably expensive. According to travel supermarket, it can be revealed that the cost of 6 basics item is often more expensive than the ticket. Stephen Manager, the Ryan spokesman said that the majority of the customer’s complain is referring to its extra charges. (for instruments, print out the boarding pass, admit fee, web check in fee) Ryan uses an incredible exchange rate (El=в?l) when the company makes its fees calculation (Smith, 2012).

Referring to the summer of 2014, customers would like to use Ryan services, but they hope that the airline will attempt to reorganize and increase the quality of its services in order to satisfy its loyal passengers. Research design and data sources (descriptive) A research design is formulated after the problem has been defined and the approach developed. It is the most important part of the marketing research project which provides a structure how the marketing project will be conducted and also manages data collection, analysis and report preparation (Malory, 2010).

In my project I will plan descriptive research methods such as survey and observation. The survey method is designed to gather appropriate information based on questioning of participants. The researcher is planning the range variety of questions referring to the individual’s behavior, feelings, attitude, experience, motivation. It also includes demographic and lifestyle characteristics (Proctor, 2005). One of the most popular data collection method is the structured direct survey involves fixed alternative questions to require the participant to answer from the determined set.

The survey method has many advantages such as: simple administration and evaluation, reliability according to the alternatives, reduced variability, simple data coding. There are some disadvantages such as: accuracy, unwillingness to provide the desired information, might loss of validity. All in all, it can be mentioned that the approach of survey is the most popular method of remarry data collection in marketing research (Sigmund, Ward, Lowe, & Winner, 2007). To support my chosen method refers to Ryan case.

As Ryan airline operates all around Europe the survey has to be organized in different countries. This method was chosen is because it is the most easiest and convenient way to analyses huge amount of data. It would be really difficult and time consuming to use other methods when around 1000 people has to be interviewed. I planned to do the surveys via Internet (online survey). I strongly believe that it is possible to gather livable information according to the big number of participants using online surveys.

Survey will include open ended questions in order to collect appropriate information to improve Ryan’s services. Sampling design According to Dry. Chuck Chairman the President of the largest independent research company in Canada, sampling is the only feasible way to collect marketing research data in most of the situation (Chairman, 2011). I would use the probability sampling where the selection of units depends on the chance. Basically, in probability sampling the elements of the population have exactly the same chance to be selected or the sample (Malory, 2010).

This technique requires accurate definition of the target population and the sampling frame. Furthermore, stratified random sampling is suitable to analyses large consumer population. This approach divides the population into smaller groups (mutually exclusive), and it can reflect the social background of participants (Proctor, 2005). According to Ryan airline customer satisfaction survey, it can be determined the different countries by mutually exclusive groups. For instance, it can represent passengers in Sweden (Stockholm), England (Liverpool), France (Marseille), Italy (Rome).

The first step in sampling design is to define the target population. It is vital that the target population has to be defined precisely, otherwise the imprecision will result ineffective research (Malory, 2010). The researcher has to decide who should be included in the sample referring its problem definition. The elements are usually the respondents in in survey research. There are three important question has to be answered: who is going to be surveyed? ; How many people? ; How the researcher chose the participants? (Proctor, 2005).

Target population and sampling frame of Ryan case 25-55 years old passengers * Male and female (total number 1000, randomly chosen) * Regular traveler * Fly at least twice a year * Passengers within Europe * Purchased flight ticket in the last two month * Average income * Online surveys (customer satisfaction) Sampling frame refers to the elements of the target population. It made up of lists or different set of directions in order to identifying the target population (Proctor, 2005). I would definitely use Internet as a primary marketing research tool in Ryan case.

It is much cheaper to conduct the surveys via Internet than using other media sources. It can be seen that the scope of the sampling frame is closely connected those individuals of online community who actually participate in surveys. I strongly believe that to gather necessary information in order to improve product and services of Ryan, Internet (online survey) is a great option because the company can assess determine the sample size. According to the number of element, it shows the minimum sample size required for data analyzing.

There are many important factors that must be considered in determining sample size such as: incidence and completion rates, nature of research and analysis, number of variables. The market researchers usually use larger samples for descriptive survey because it is required (Malory, 2010). Data collection method Couples years ago conducting online surveys was really time consuming and required high level of knowledge of web authoring programs. Nowadays, fast- growing and developing Internet services make online marketing research much easier and faster.

There are many advantages to use online surveys, for instance: it can be conducted all around the world, participant’s instant access in distant locations, convenience, data can be collected automatically, fast and inexpensive Wright, 2006). I plan to conduct online survey refers to customer’s satisfaction of Ryan. I would like to use an effective approach to evaluate the quality of services of Ryan airline. Therefore, customer survey is going to reflect the passengers’ perceptions, feeling, experiences referring to the airline’s quality.

The main reasons why I would conduct online survey: * Time and budget management (saving time and money) * Huge number of participants (males + females = 1000) * Instant access (all around the world) * Data collection (fast, inexpensive) * Automatic data analyzing system Customer satisfaction survey In order to the market researcher successfully achieve the required objectives the protesting of the questionnaire is essential (Bowers, 2010). In marketing research questionnaire can be used in a range variety of context according to the task.

It is important that the questionnaire has to be improved and tested before the administration process (Proctor, 2005). A customer satisfaction questionnaire is vital to get valuable feedback from the customers about the quality of the product and services provided by Ryan airline. Thank you very much for your time to participate n this survey and give us the opportunity to serve you better. Customer satisfaction survey of Ryan airline Questionnaire code: 2244606 Name of the passenger: Airline name: Date of travel: Passenger’s phone number: Destination of the flight: AAA . What is your gender?

Male AAA. How old are you? 25-30 35-40 45-50 50-55 AAA. What is your current marital status? Single Married Divorced Widowed AAA. How often do you fly with Ryan? First time Every week Once a month Every 3-6 months Once a year AS. How much is your annual income? 20. 000-40. 000 ADD 40. 000-60. 000 ADD 60. 000-80. 000 ADD 80. 000 or more Blob . Rate the check in process on a scale of 1 to 5 (1 is very poor and 5 is very good) 1. Very poor 2. Poor 3. Average 4. Good 5. Very good 82. Rate the baggage allowance process on a scale of 1 to 5 83. Rate the behavior of the airline staff on a scale of 1 to 5 84.

Rate the quality of the food and drink on a scale of 1 to 5 1 . Very poor Please rate the following questions 1 . Strongly Disagree 2. Somewhat Disagree 3. Neither Agree nor Disagree 4. Somewhat Agree 5. Strongly Agree CLC . Ryan flight attendants are well trained. CA. Food and beverage quality is great. CA. The check in process is fast and passenger friendly. CA. The seat allocation is perfect. CA. The boarding allowance is impeccable. Del . How likely would you recommend Ryan to your friend or colleague? (O is not at all, 5 is extremely likely) (1) (2) (3) (4) (5) DO. How likely would you use again Ryan services?

DO. How likely would you purchase flight ticket in the future? (1) (2) (3) (4) (5) What would you suggest for further improvement? (Please detail 2-3 sentences) Notes to scripted: Using color code: AAA-AAA (purple) Blob -BE (green) CLC -CSS (red) Del-DO (blue) Questions are bold capital. (Times new roman, 12) Project: Ryan airline Design: 10 minutes questionnaire Sample: Total sample size is n = 1000 Data analysis It can be clearly seen that nominal scale has been used in the survey, where the data have been placing in different categories such as: gender, age, marital status.

Nominal scale is the lowest measurement level can be used and it is usually refers to “yes” or “no” answers (Proctor, 2005). The ordinal scale involve ranking. The market researcher asks the participant to rank according to his/her preference. Therefore, it is very subjective and no objective distance exists between two points. Ordinal scales usually include quality ranking (Malory, 2010). An interval scale the number rates different objects with equal distance on the scale. It can be determined that the distance between value 1 and 2, is exactly the same than between 2 and 3.

In customer satisfaction survey of Ryan airline the question C and D refer to interval scale. It can be clearly seen that the value between the numbers 1 to 5 is always identical (Malory, 2005). The ratio scale involves all the properties of the nominal, ordinal and interval scales. Ratio scale enables the market research to identify and classify objects and also to compare differences. Ratio scale usually refers to height, eight, age or money, but in marketing context it can be used for cost, sales, or number of consumers (Proctor, 2005).

To select the appropriate data analysis strategy it must be based on the marketing research project. Its purpose is to show information in order to help address the problem (Malory, 2005). Chi-square analysis can be used for a comparison according to the participants’ answers referring to the sets of characteristics such as age, sex, income (Proctor, 2005). This technique provides information about the passengers who use Ryan services. It can be determined and represented on a chart the target customer distribution in efferent characteristics.

Furthermore, it shows how many male and female, and in which age category fly with Ryan. According to intra cultural analysis, I am convinced that it is an efficient system to distinguish data in different countries. The data is analyses separately, therefore it can easily reflect the level of customer satisfaction in each country. The main goal of this research is to discover and understand the existing relationship and the pattern in analyses countries. All of the collected and analyses data from individuals can be pooled according to punctually analysis (Malory, 2005).