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Factors of Customer Dissatisfaction - Ryanair

University: Nottigham University Business School

  • Unit No: 5
  • Level: Undergraduate/College
  • Pages: 16
  • Words: 4000
  • Paper Type: Assignment
  • Course Code:

    NRH5337

  • Country: UK
  • Downloads: 0
Question :

This unit state that research had to carried out by using various sources in order to know the factors of customer dissatisfaction on Ryanair airline

  • Give brief about aim and objective of the study which are beneficial for Ryanair
  • Carry out literature review on factors & model related to customer dissatisfaction.
  • Formulate research methodology which are beneficial for study with use of data analysis.
  • Carry put discussion on improving ways of customer dissatisfaction.
Answer :
Organization Selected : Ryanair

Research Aim

To analysis the factors of customer dissatisfaction from company: A study on Ryanair.

Research Objective

  • To study about meaning and causes of customer dissatisfaction in Ryanair.
  • To analysis factors of customer dissatisfaction from Ryanair
  • To examine various models related to dissatisfaction of customer within company

Research Questions

  1. What is the meaning of customer dissatisfaction in Ryanair?
  2. What are the factors due to which customers remain dissatisfied from Ryanair?
  3. What are the various models and theories related to dissatisfaction of customer?

Rational

As at in recent years Ryanair is witnessing many difficulties in retaining customers even many of them are dissatisfied with company which is causing loss to it. Here it becomes necessary and important that research is been conducted on this particular topic of what are those factors which are leading to dissatisfaction of customers. It is important that all factors of customer dissatisfaction is been identified and various models would be included within detailed study (Cassandra and Wong, 2014). Making customers happy, satisfied and retained within company so that they are loyal with firm are some important elements which management need to consider. If company is not making any efforts in channelizing their impact on buying decision of customers and helping them to purchase goods and services.

Background of Company

Ryanair is an Irish airline company which is serving the whole area of Europe having operational foundation in London and Dublin. The company is operating with more than 400 aircraft and this was once the largest airline company having the highest number of passengers. Ryanair had its rapid expansion since the time it came into existence in year 1984 with the success of having low cost airline. But soon many problem those related to company, management and employee relation and most importantly its customer handling procedure began to come into highlights. So in this research paper study would be done on what are the various issues related to Ryanair, why customers are dissatisfied with company and what models could we apply to find out dissatisfaction of customer with Ryanair.

LITERATURE REVIEW

Customer focus is the main element of success

According Chaffey, (2015) Learning review of this research that, customer satisfaction is one of the crucial part for each organisation which must be taken into account by management professionals of company. In terms of airline industry, customer satisfaction is most necessary thing for each customers on which they can frequent buy industrial products and services again and again. However, customer satisfaction level must be focused by each organisational administration in respect to attaining desired objectives and goals of firm. In this context, customer can return any product id they are not happy with it. Customer satisfaction is a crucial concept for customer success professionals to understand and live by and its actually about more than a money-back guarantee. Customer satisfaction can be measured by quantifying degree to which a customer is happy with a product, services or experiences. Customer satisfaction review about how customer of business show their attitudes about particular product and services. Howsoever, as per DaSilva and Trkman, (2014) it has stated that, airline industry one of the emerging industry in UK which is serving various types of aviation and transportation or travelling facilities at the industrial plat form effectively.

So corporation require making sure that, by provision of various aviation services, their customer is getting satisfied. Maintain customer satisfaction level; in business is important for each organisation to growing well in the industry, so management department of the company ensure that, provision of all aviation facilities of Ryanair airline company must be fair and appropriate which have potential to satisfy their each customer needs within the industry efficiently. In UK, facilities demands of airline services raising up equivalent and consumption of it within current marketplace. Falling down of provision of various modern and innovative airline facilities at workplace being cause of customer dissatisfaction in the company. Numbers of organisations are working in industry which generating more competition in the marketplace. On the other hand, being essential for the company to maintain customer satisfaction level in company according to customer demand in current market.

According to many articles suggested by authors, they have stated that, airline industry require to delivering various types of accommodation and hospitality facilities should be provided by them in order to boosting up customer satisfaction level and market share of the industry as well. So it being essential for the organisation is to manage all functionalities of the business as per company standard on which its customer does belief, that must be taken into account by them.

The role of social technology in business performance

According Ferraro and Briody, (2013) it has stated that, dissatisfaction level of customer make negative impact upon organisational performance in the industry. Many caused can be find out by professionals in order to identification of the causes behind the generation of dissatisfaction among existing customer of the industry. Some important factors which must be taken into account by its professionals which is, poor customer service provision, rude staff, no keeping promises, not listening to customers, over-costing of each facilities, low quality of product and services, inaccessibilities etc. so all these mentioned factor has been considered as major prospects which is being cause of dissatisfaction level increment within business environment. On the other side, from many surveys, it has stated that, loosing customer satisfaction level being cause of falling performance and profitability of business in industry. In case of Ryanair company, it currently facing wide range of issues concerning about dissatisfaction level of its existing customer in industry. On the other side, as per Gloor, (2012) it was examined that, dissatisfaction level of customers can damage reputation of business in industry and decrease the value of its quality of airline services within marketplace. However, dissatisfaction of its customer may affect the profitability and performance of business within current marketplace, so organisation may lose its existing employees and customers in industry on the basis they are running business sufficiently.

On the other hand, many articles published by different authors has stated that, business can repair their damages by improving within its existing aviation services within innovative ways. In today's world, customers of the company demanding for improved and advanced innovative technological changes within airline services which can satisfy current demand of its customer in relevant manner. So it being necessary for organisational professionals in context of provision of various airline accommodation services in effective ways. So all above factors which making effect customer satisfaction level should be considered by professionals in appropriate form in order to reduce negative impact of dissatisfaction level of their existing customers.

Factors involved in customer dissatisfaction

As per Protcko and Dornberger, (2014) it was stated that, examination of various models related to dissatisfaction of customer within the company. This has been suggested variety of different models related to caused and affection of dissatisfaction level upon the business and how to make improvement within them. Gap model has been suggested by author which defines that, today's airline industrial consumers has become increasingly demanding within various airline accommodation facilities within the company. It was identified that, organisation require making changes within its aviation current facilities as per modern changes, so they will be able to satisfy their customer in better manner. According to the model, they has said that, identify the gap between customer expectation and actual services provided at different stages of service delivery, which assist business professionals for identification of actual performance potential of the business services' ion industry. On other hand, according to Wells, (2013.) it has stated that, variety of model can be utilised by its administration in terms of recognise the actual level of performance and quality of its services from its competitors in industry. However, it was identified that, customer satisfaction level can be increased by listening contemporary issues which has faced by them. Improvement within existing services as per modern demand and innovation is necessary for company to maintain satisfaction level. Several types of attractive changes and operational practices can be adopted by business professionals in case of boosting up customer response towards its specific airline services. In this context, several authors has said that, implementation of technological advancement and innovative changes within organisational structure can assist the business to betterment within performance of business ion industry efficiently. From the survey, it was also recognised that, understanding of each customer's needs or expectation and maintain the level of standard of its aviation facilities according to modern world demand in the industry many reduce the numbers of dissatisfied consumers of company in current marketplace.

All accommodation and hospitality services provided by enterprise must be in relevant manner and knowing the customer demand and needs from organisation efficiently can help the business to implementation of strategies by which dissatisfaction level can be reduced within business environment efficiently (Juric, Smith and Wilks, 2015). It is analysed by many articles, there is a certain connection between customer services and business that products and services offered by firm in the market should be effective in order to satisfy consumer needs and preferences. This will help business to improve profitability and production. In addition to this, many airlines businesses are offering different services for customers as they are divided in three parts rich, average and lower class. The sections are also different in planes for each category customer.

METHODOLOGY

Research philosophy: It can be said that there are different methodological approaches are available for researchers in order to determine research objectives and aim effectively. Qualitative and quantitative both approaches are effective in order to assess the factors due to which customers remain dissatisfied.

Data collection method: Data collection methods such as secondary and primary data collection are used by researcher in order to determine factors causing dissatisfaction in business. In this, secondary data collection method is used to evaluate and collect information regarding topic. Both are effective approaches that helps to evaluate and determine information and data regarding topic effectively.

Data collection tools: These are tools are effective that it helps to determine actual position of firm in order to assess factors from which customers remains dissatisfied about services, products or any other thing. In respect to this, a group of customers is taken which will help to evaluate effectiveness of customer satisfaction services.

Research approach: Inductive and deductive two approaches are mostly used by researcher in order to acquire results from outcomes and observations that helps to improve and develop search pattern. The approach will help to create meanings and set of data and information collection to determine factors and theories related to customer dissatisfaction.

Research design: Exploratory research is used in this project in order to explore research question in order to assess the factors due to which customers remain dissatisfied. The approach will help businesses to identify issues which are not yet defined effectively. This will also help by providing a clear understanding of topic.

Sampling: Probabilistic and non-probabilistic are normally two methods of sampling. In order to determine factors influence customer satisfaction in business. According to this method, every member from the population usually ninth is taken to analyse and determine actual impact of services and products offered by business and which also affect customer satisfaction and profitability. This will also help to provide clear and equal chance as well as opportunities for employees.

Ethical considerations: Ethical considerations are the most crucial aspect of research that affect operational activities of researchers. Ethical issues are one of them such as insufficient data and information regarding customers or any other member in the team. Low involvement of senior authorities and board members which also reduce the active involvement of employees. The main objective is to determine the factors due to which customers remain dissatisfied and lead towards decreasing profitability and production.

ANALYSIS

Concept of customer dissatisfaction

Consumer satisfaction is defined to as behaviour of customer which would be in regard to acquiring goods or service of company and how or why they are using that. This would also be evolving around post purchase judgment which is due to choice of customer on specified purchase of good and then consuming that (Siu, Zhang and Kwan, 2014). If after their purchase and use of those goods or availing that service customers are complaining about goods and service then this would be included into dissatisfaction of customers. There are 5 behaviour of customers which is included into their complaining nature like that of dealing with the retailer, avoiding to purchase from that retailer and suggesting friends to do so, taking strict actions against them, simply boycotting whole firm and purchasing goods with other company. There are many reasons as to why consumer is behaving in this manner of not using products of company or purchasing that of other competitive firm. Price of product, its quality, quantity, customer service and why of company handling customer would be all included factors as studied in above literature review part.

Relationships between customer satisfaction, retention and profit

There are important terms which are been included within satisfaction of customer like that of retention and company’s profit section as well (Akamavi, Mohamed and Xu, 2015). There is strong relationship between satisfactions of customer their retention and then profit of company which tells that if one increases there would be increase in another. But there is inverse relationship between dissatisfaction of customer and profits of company or customer’s retention. If customer is highly dissatisfied by company then surely they would not be retained within firm which means that they are switching from firm causing loss of profits. Ryanair is having high number of dissatisfied customers within Europe which is not helping company to retain their customers which is directly impacting the profits of company.

There are many instances related to organisation that are pointing out that into Ryanair customers are highly dissatisfied with management or staff of company (Juric, Smith and Wilks, 2015). Company is following its rigorous strategies related to controlling of its cost which is thus allowing them to keep their price low but this seems not regulating with customers. As in way of lowering down their cost firm is started involved into cheap price of their products and cancellation of flights on daily bases are very common problem. Company is having very strong brand image within market as it is having tendency of timely departure or low fare but the increased number of cancellation of flights would be big reason of dissatisfied customer.

However, instance show that company is hiring people on base of third party agencies which is one of the basic reason as to why airlines is controlling their cost. But if the staff members of company refused to cooperate with company which they are doing many a times by calling off for strike (Kalaiarasan, Appannan and Doraisamy, 2015). All these things would be revolving around loyalty of customers which means that for how much time they are been involved with company having positive attitude on products of company.

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