Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspective
Autor(a) principal: | |
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Data de Publicação: | 2020 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | por |
Título da fonte: | Consumer Behavior Review |
Texto Completo: | https://periodicos.ufpe.br/revistas/index.php/cbr/article/view/244288 |
Resumo: | The number of domestic airlines operating in the Nigerian aviation industry have been on a steady decline for a number of years. This is despite a gradual increase in the average number of domestic travelers. Reasons adduced for this anomaly is related to high operational costs, debt burden and outstanding financial obligations. This study therefore examined low cost strategy as a prescription for struggling airlines in the Nigerian domestic airline industry. Stated preference theory served as the theoretical framework because it allowed the construction of realistic alternatives that respondents could choose from based on their preferences. The study was conducted in two phases using conjoint analysis. The first phase identified competitive tools relevant to Nigeria while the second phase involved respondents choosing from an orthogonal content analysis matrix based on selected factors and their attribute levels. Results indicated a high internal correlation value between observed and estimated preferences while no significant correlations was observed between the competitive tools, suggesting good model fit. Findings revealed that out of the six competitive tools, Refund policy and In-Flight Menu were the most important to passengers while Channel of ticket purchase was the least important. Based on the computer-generated pathworth utility matrix, the authors suggested a workable low-cost model that airlines could adopt to ensure survival and profitability. Implications are discussed. |
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Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspectiveEstratégia de baixo custo como receita corretiva para ressuscitar a indústria aérea doméstica da Nigéria: a perspectiva dos clientesairline industrylow-cost strategycompetitive toolsconjoint analysiscustomer preferences.indústria aéreaestratégia de baixo custoferramentas competitivasanálise conjuntapreferências do cliente.The number of domestic airlines operating in the Nigerian aviation industry have been on a steady decline for a number of years. This is despite a gradual increase in the average number of domestic travelers. Reasons adduced for this anomaly is related to high operational costs, debt burden and outstanding financial obligations. This study therefore examined low cost strategy as a prescription for struggling airlines in the Nigerian domestic airline industry. Stated preference theory served as the theoretical framework because it allowed the construction of realistic alternatives that respondents could choose from based on their preferences. The study was conducted in two phases using conjoint analysis. The first phase identified competitive tools relevant to Nigeria while the second phase involved respondents choosing from an orthogonal content analysis matrix based on selected factors and their attribute levels. Results indicated a high internal correlation value between observed and estimated preferences while no significant correlations was observed between the competitive tools, suggesting good model fit. Findings revealed that out of the six competitive tools, Refund policy and In-Flight Menu were the most important to passengers while Channel of ticket purchase was the least important. Based on the computer-generated pathworth utility matrix, the authors suggested a workable low-cost model that airlines could adopt to ensure survival and profitability. Implications are discussed.O número de companhias aéreas domésticas que operam no setor de aviação nigeriano tem diminuído constantemente há vários anos. Isso ocorre apesar de um aumento gradual no número médio de viajantes domésticos. Os motivos apresentados para essa anomalia estão relacionados a altos custos operacionais, carga de dívida e obrigações financeiras pendentes. Portanto, este estudo examinou a estratégia de baixo custo como receita para as companhias aéreas em dificuldades no setor aéreo doméstico da Nigéria. A teoria da preferência declarada serviu de base teórica, pois permitiu a construção de alternativas realistas que os entrevistados pudessem escolher com base em suas preferências. O estudo foi realizado em duas fases, utilizando análise conjunta. A primeira fase identificou ferramentas competitivas relevantes para a Nigéria, enquanto a segunda fase envolveu os entrevistados escolhendo uma matriz de análise de conteúdo ortogonal, com base em fatores selecionados e seus níveis de atributos. Os resultados indicaram um alto valor de correlação interna entre preferências observadas e estimadas, enquanto não foram observadas correlações significativas entre as ferramentas competitivas, sugerindo um bom ajuste do modelo. As descobertas revelaram que das seis ferramentas competitivas, a política de reembolso e o menu de bordo eram as mais importantes para os passageiros, enquanto o canal de compra de passagens era o menos importante. Com base na matriz de utilidade gerada por computador, os autores sugeriram um modelo viável de baixo custo que as companhias aéreas poderiam adotar para garantir a sobrevivência e a lucratividade. Implicações são discutidas.Universidade Federal de Pernambuco2020-05-14info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionQuantitative Researchapplication/pdfhttps://periodicos.ufpe.br/revistas/index.php/cbr/article/view/24428810.51359/2526-7884.2020.244288CBR - Consumer Behavior Review; Vol. 4 No. 2 (2020): may-august; 66-83CBR - Consumer Behavior Review; v. 4 n. 2 (2020): maio-agosto; 66-832526-7884reponame:Consumer Behavior Reviewinstname:Universidade Federal de Pernambuco (UFPE)instacron:UFPEporhttps://periodicos.ufpe.br/revistas/index.php/cbr/article/view/244288/35274Copyright (c) 2020 CBR - Consumer Behavior Reviewinfo:eu-repo/semantics/openAccessAjeyalemi, Oladipupo FolorunshoOlarewaju, Adeniyi Damilola2023-05-26T02:02:18Zoai:oai.periodicos.ufpe.br:article/244288Revistahttps://periodicos.ufpe.br/revistas/cbrPUBhttps://periodicos.ufpe.br/revistas/cbr/oaicbr@ufpe.br||periodicos.ufpe@ufpe.br2526-78842526-7884opendoar:2023-05-26T02:02:18Consumer Behavior Review - Universidade Federal de Pernambuco (UFPE)false |
dc.title.none.fl_str_mv |
Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspective Estratégia de baixo custo como receita corretiva para ressuscitar a indústria aérea doméstica da Nigéria: a perspectiva dos clientes |
title |
Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspective |
spellingShingle |
Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspective Ajeyalemi, Oladipupo Folorunsho airline industry low-cost strategy competitive tools conjoint analysis customer preferences. indústria aérea estratégia de baixo custo ferramentas competitivas análise conjunta preferências do cliente. |
title_short |
Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspective |
title_full |
Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspective |
title_fullStr |
Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspective |
title_full_unstemmed |
Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspective |
title_sort |
Low cost strategy as a remedial prescription for resuscitating Nigeria’s ailing domestic airline industry: the customers’ perspective |
author |
Ajeyalemi, Oladipupo Folorunsho |
author_facet |
Ajeyalemi, Oladipupo Folorunsho Olarewaju, Adeniyi Damilola |
author_role |
author |
author2 |
Olarewaju, Adeniyi Damilola |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Ajeyalemi, Oladipupo Folorunsho Olarewaju, Adeniyi Damilola |
dc.subject.por.fl_str_mv |
airline industry low-cost strategy competitive tools conjoint analysis customer preferences. indústria aérea estratégia de baixo custo ferramentas competitivas análise conjunta preferências do cliente. |
topic |
airline industry low-cost strategy competitive tools conjoint analysis customer preferences. indústria aérea estratégia de baixo custo ferramentas competitivas análise conjunta preferências do cliente. |
description |
The number of domestic airlines operating in the Nigerian aviation industry have been on a steady decline for a number of years. This is despite a gradual increase in the average number of domestic travelers. Reasons adduced for this anomaly is related to high operational costs, debt burden and outstanding financial obligations. This study therefore examined low cost strategy as a prescription for struggling airlines in the Nigerian domestic airline industry. Stated preference theory served as the theoretical framework because it allowed the construction of realistic alternatives that respondents could choose from based on their preferences. The study was conducted in two phases using conjoint analysis. The first phase identified competitive tools relevant to Nigeria while the second phase involved respondents choosing from an orthogonal content analysis matrix based on selected factors and their attribute levels. Results indicated a high internal correlation value between observed and estimated preferences while no significant correlations was observed between the competitive tools, suggesting good model fit. Findings revealed that out of the six competitive tools, Refund policy and In-Flight Menu were the most important to passengers while Channel of ticket purchase was the least important. Based on the computer-generated pathworth utility matrix, the authors suggested a workable low-cost model that airlines could adopt to ensure survival and profitability. Implications are discussed. |
publishDate |
2020 |
dc.date.none.fl_str_mv |
2020-05-14 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Quantitative Research |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://periodicos.ufpe.br/revistas/index.php/cbr/article/view/244288 10.51359/2526-7884.2020.244288 |
url |
https://periodicos.ufpe.br/revistas/index.php/cbr/article/view/244288 |
identifier_str_mv |
10.51359/2526-7884.2020.244288 |
dc.language.iso.fl_str_mv |
por |
language |
por |
dc.relation.none.fl_str_mv |
https://periodicos.ufpe.br/revistas/index.php/cbr/article/view/244288/35274 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2020 CBR - Consumer Behavior Review info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2020 CBR - Consumer Behavior Review |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidade Federal de Pernambuco |
publisher.none.fl_str_mv |
Universidade Federal de Pernambuco |
dc.source.none.fl_str_mv |
CBR - Consumer Behavior Review; Vol. 4 No. 2 (2020): may-august; 66-83 CBR - Consumer Behavior Review; v. 4 n. 2 (2020): maio-agosto; 66-83 2526-7884 reponame:Consumer Behavior Review instname:Universidade Federal de Pernambuco (UFPE) instacron:UFPE |
instname_str |
Universidade Federal de Pernambuco (UFPE) |
instacron_str |
UFPE |
institution |
UFPE |
reponame_str |
Consumer Behavior Review |
collection |
Consumer Behavior Review |
repository.name.fl_str_mv |
Consumer Behavior Review - Universidade Federal de Pernambuco (UFPE) |
repository.mail.fl_str_mv |
cbr@ufpe.br||periodicos.ufpe@ufpe.br |
_version_ |
1797220395858788352 |