Project Report Prepared on

BUYING BEHAVIOUR OF CUSTOMER IN AVIATION INDUSTRY

Prepared by: HARENDRA N.PUROHIT KIRAN SINGH

Under the guidance of MISS VIBHA MAM

G.I.D.C ROFFEL BUSINESS SCHOOL, VAPI

DECLARATION
We, MR. HARENDRA N.PUROHIT AND KIRAN SINGH Students of G.I.D.C ROFEL BUSINESS SCHOOL, VAPI Approved by All India Council for Technical Education, hereby declared that this project report is result of culmination of our sincere efforts.

We declare that this submitted work is done in group by us and to the best of our knowledge. No such work has been submitted by any other person for the award of degree or diploma.

We also declare that all the information collected from various secondary sources has been duly acknowledge in this project report.

HARENDRA N.PUROHIT

KIRAN SINGH

EXECUTIVE SUMMARY
This report covers the aspects of changing patterns of consumer behaviour of aviation industry. This will be helpful for aviation industry to know where they are lacking.

This report aims at understanding that “consumer behaviour of aviation industry”

For this project: We take 61 respondents sample size and choose two big airlines, one is jet airline and second one is AIR INDIA.

7p’s Of Aviation Industry in India

JET AIRWAYS
PRODUCT
Special Services Infant and child care, wheel chair assistance, expectant mothers, unaccompanied minors, medical emergencies, travelling with animals & carriage of stretchers •
• •

Jet Mobile Jet Kids Jet Escapes Cargo

PRICE
• • • • • • • Economy & Club Premiere Fare Discounted fare for senior citizens & defense personnel Advance Passenger Excursion/ APEX Fares One Fare Night Saver Fares Check Fares US Dollar Fares & Visit India Fares

PLACE

Place of Service – Aircraft Various Destinations

PROMOTION

Offers Companion Free Offer, One Fare, Concessional fares, JET PRIVILEGE Offers,

Jet Airways Citibank Credit Cards, Corporate Deal Offers, International Specials, Camp Rock contest, Festival specials, Student specials, Surprises etc. Advertising and Branding • Hoardings

• • •

Brand Ambassadors Sponsorships Event Organization

PEOPLE
• • • Employees Pilot, Cabin Attendants, Engineers, Customer Service Agents, Securities, Marketing, Sales & Reservation employees Customers

PROCESS
People Processing • People physically enter the service system to receive the service. Aircraft is the service factory where service is delivered.

Possession Processing • • Cargo Luggage & Courier

PHYSICAL EVIDENCE

Service scape Service scape usage - Interpersonal Complexity of Service scape - Elaborate

Flight

Offices - Org. & Ticket Booking Agents

Virtual Service scape

AIR INDIA
PRODUCT
State-owned national flag carrier of India 16th largest airline in Asia Fleet of 136 aircraft Serve 28 major destinations worldwide. In 2010, Air India is expected to join prestigious Star Alliance, the world's largest airline alliance. The air transport service

PRICING
Variety of structured price bands categorized on the basis of the various combinations of routes (Short/long distances and number of halts etc.) and categories (i.e. Business class, Economy class).

PROMOTIONS
Point of purchases i.e. ticketing counters at traveling agencies, online options (E.g. Membership promotions, couple tickets, Tourist packages for agencies and various other individual and corporate offers)

PLACE
Ticketing counters delivering services

PEOPLE
A team of skilled & professionally trained pilots, ground staff, flight attendants, freight movers and packers, security personnel, management decision makers and most importantly, customers.

PROCESS
To avail of the air service, there is online or manual booking of tickets followed by confirmation at security desks on arrival at the airport at least 2 hrs. before the scheduled commencement of the journey. After boarding the aircraft, basic after sales services are provided to those who avail of the range of services available. Besides, arranging for passenger travel post landing to the convenient destination,

arrangements made if flights are delayed or rescheduled etc are some of the value additions that the airline offers to provide improved customer satisfaction.

PHYSICAL EVIDENCE

:

The service itself

MARKETING SEGMENTATION-JET
DEMOGRAPHIC SEGMENTATION

Jet has two economy class subsidiaries, namely Jet Lit and Jet Airways Konnect

PSYCHOGRAPHIC SEGMENTATION • • • Golden Jet Escapes Jet kids which is a special program for children aged 2 to 12 Jet mall in partnership with ELVY-premier and domestic

BEHAVIOURAL SEGMENTATION • • Jet Privilege- for frequent flyers Jet Mobile

MARKETING SEGMENTATION-AIR INDIA
Demographic • Business and economy class

Psychographic • National carrier as a household name.

Behavioural

Still preferred airline for the govt. staff and old clientele.

MARKET SURVEY ON AVIATION INDUSTRY
OBJECTIVE: • TO UNDERSTAND THE CONSUMER BEHAVIOR OF INDIANS TRAVELLING BY AIR.

TO DETERMINE THE CURRENT SCENARIO IN AVIATION INDUSTRY.

QUESTIONNAIRE FOR AVIATION
1. Name __________________________________

2. Sex Male Female

3. Income (per month) 10,000 to 25000 > 40,000 25000 to 40,000

4.

Factors you consider for selecting air line Price schedule time service

others

5. Which airline you prefer more? Jet Air India Others

6. Do you recommend to others? Yes No

7. from where you buy ticket? From air port Agent online

8. In Which class do you normally fly? Economy class Business class

9. How do u rate services offered by following airlines?

Very poor Air India Jet

Poor

Good

Very good

10. You suggestions if any_______________________________________________________________________ __________________________________________________________________________ __

Chi-square Test
HO: Income does not affect the overall buying behaviour of customer for choose aviation class H1: Income affects the overall buying behaviour of customer for choose aviation class

Inco me 10 to 25 25 to 40 > 40 Total Calculated Value: 8.88 Tabulated Value: 5.99 (2-1) = 2X1 = 2]

Class Econo my 16 14 2 32

Busin ess 7 12 10 29

Total 23 26 12 61

[degree of freedom: (r-1) (c-1) = (3-1)

Interpretation: As C.V >T.V, H0 is rejected, hence Income affect the overall buying behaviour of customer for choose aviation class.

Graphs:
1 - SEX

As per our survey 39% are female respondent and 61% are male respondent. We take total 61 sample size and from that 24 are females and 37 are male.

2 - INCOME

As per our survey 20% respondents income are above 40,000 and 38% respondent income are between the 10 to 25 thousands and 42% respondent income are between the 25 to 40 thousands

3 - FACTORS YOU CONSIDER FOR SELECTING AIR LINE

From the graph, it show that consumer prefer relatively same as price, schedule and service. All are effects on selects the airlines.

4 - WHICH AIRLINE YOU PREFER MORE?

From this graph AIR INDIA popularity are high with compare to the JET AIRLINE.

5 - DO YOU RECOMMEND TO OTHERS?

The graph show that 77% consumers are not satisfied the desire service from the chosen airline.

6 - FROM WHERE YOU BUY TICKET?

From the graph, it show that for buy a tickets consumer use online more instead of agent throw or physical going the airports.

7 - IN WHICH CLASS DO YOU NORMALLY FLY?

According to our survey consumer use more economy class with compare to the business class. For that reasons today more airlines want to attracted these types of consumers. And some airlines want to convert 1st class A.C. railways consumer to airline economy class.

8 - HOW DO U RATE SERVICES OFFERED BY FOLLOWING AIRLINES?

From this graph respondents give good rating for both the airlines AIR INDIA and JET AIRLINE.

CONCLUSION

From the above research done on the AVIATION INDUSTRY following conclusion will be drawn:-

From the chi square test, it shows that income level of consumer will effect in the selection of the class of aviation service economy and business.

If the income level of consumer are high then consumer prefer more service and schedule time instead of price

In the mind of consumer there perception is good for AIR INDIA with compare to JET AIRLINE.

Accordingly to our survey consumer are more travelling in the economy class with compare to the business class?

According to our survey consumer use online buy ticket more with compare to the agent throw or physically going ticket place.