Cebu Pacific Airlines is an airline established on Ayrton Miguel G. de Leon graduated from Operation Brotherhood Montessori Center Inc. – Greenhills branch (OBMCI-GH). He had no academic awards but was always active in sports; he played varsity basketball all 4 years, won a championship as a captain in his senior year. He was also active in his CAT training as a non- commissioned officer won awards in the fancy drill competition and received a medal for excellence and loyalty. He is now currently enrolled at San Beda College-Mendiola, Manila taking up BSBA Marketing and Corp Communications.
He Joined the San Beda Flag Football Association (SBFFA) and took the position of External Vice President on his 2nd year before the organization was no longer active. And now he is a member of the Philppine Punishers an American Football team representing the country against other countries in the Asia Pacific. Imman B. Silvera graduated from Don Bosco High School at Mandaluyong. His hobbies are playing basketball, guitar and billiards. He enrolled at San Beda College- Mendiola, Manila in 2005 taking up BS Philosophy and later shifted to BSBA Marketing And Corporate Communications .
He was also a former member of the San Beda Rowing Team. His family serves as an inspiration for him to complete his studies and to pursue his dreams. Kevin A. Villanueva graduated from our lady of perpetual succor college (high school) and got 2 awards including 1st place in Filipino quiz bee and 2nd place in Science quiz bee and became a varsity in table tennis and baseball when he was in ateneo, attended ateneo de manila university when he was in primary level. Currently enrolled at San Beda College-Mendiola, Manila taking up BSBA Marketing and Corporate Communications. August 26, 1988, and started operating on March 8, 1996.
Republic Act No. 71 51, which grants franchise to Cebu Air, Inc. n August 30, 1991, Cebu Pacific was acquired wholly as a subsidiary of JG Summit Holdings, controlled by the Gokongwei Family- one of the richest Filipino-Chinese families based in the Philippines. Cebu Pacific Airlines is now headed by Lance Gokongwei, the presumptive heir of one of tne rlcnest ana one 0T tne most powerTul Duslness tycoons In tne pnlllpplnes, Jonn Gokonwei, the chairman of JG Summit Holdings. In the early years Cebu Pacific was known to be a decent airline, flying both domestic and international flights.
They have flights going from Metro Manila to Metro Cebu, Metro Manila to Metro Davao, Metro Manila to Iloilo etc. Cebu Pacific also have International flights like Manila to Beijing, Hong Kong, Singapore, Japan etc, all Asian countries. Cebu Pacific Air is Asia’s third largest low cost airline based in Pasay City, Metro Manila, Philippines. It is the countrys leading carrier for domestic flights. Cebu Pacific Air has the most domestic destinations with the largest number of flights and routes, and equipped with the youngest fleet.
Its main base is at Ninoy Aquino International Airport (NAIA), Manila with other hubs at Mactan-Cebu International Airport, Francisco Bangoy International Airport, and at Diosdao Macapagal International Airport. Two (2) years into business Cebu Pacific was hit with a huge controversy when their plane crashed, it happened on February 2, 1998; Cebu Pacific flight 387 (5J387), was a domestic flight coming from Ninoy Aquino international Airport Manila, was on its way to Lumbia Airport in Cagayan de Oro City in Mindanao island.
Their aircraft the 31 year old Mcdonnell Douglas DC-9-32 crashed on the slopes of Mt. Sumagaya in Misamis Oriental. The crash was said to be one of the most deadly aviation accidents in Manila, Philippines killing all 104 people on board, the plane carried five (5) crew members and ninety- ine (99) mostly Filipino passengers which iincluded five (5) children and five (5) passengers from other countries from Australia, Austria, Japan, Switzerland, and Canada. There were also initial reports erroneously indicated that fifteen (15) people had survived the crash.
Colonel Jacinto Ligot was the chief of the Philippine Air Force rescue team, which faced a lot of difficulties because of the deep ravines and dense vegetation on the slopes of the mountain. The pilots of the Cebu Pacific Aircraft were flying visually and not instrumentally, when their plane vanished from the radar. While the skies were clear at the airport, the mountains may have been covered by the fogs. Chief of Staff General Clemente Mariano speculated that the plane almost cleared the top of the mountain, but may have suffered a downward-draft, causing it to hit the mountain.
The airplane left Manila at 0100 GMT and was scheduled to arrive at 0303 GMT in Cagayan de Oro. The plane made a stopover at Tacloban City on 0220 GMT, though sources differ about whether it was a scheduled or an unscheduled stop. The last contact was 15 minutes before the plane was due to land, with the airport tower. In that call, the pilot said he was 68 kilometers away from the airport and was starting to descend. There was no indication that the plane was in trouble. The plane crashed 45 kilometers away from the airport.
This incident proved to hurt the sales on what was then a new company Cebu Pacific. Because after this incident Cebu Pacific was forced to be grounded but only after a month they continued their services after their aircrafts were re-certificated. Even when all their aircrafts were re-certified, people were still hesitant to buy trips from Cebu Pacific because of this incident. So what management and marketing had to do was find a way to bring customers back in their airplanes to prove that Cebu Pacific was once again safe.
Cebu Pacific came out with “it’s time every Juan flies” what it mearns is Cebu Pacific, offers low budget flights, so that every Filipino can start going around the country or, out of the country at very affordable price compared to anyone in the market. wnat tney Tocusea on to get tnese Tllgnts so aTToraaDle, was to Tocus on getting trained pilots, crew training and expertise, fuel, aircraft maintenance, on time reliability, service, and new planes. And with that, they took out payment for newspapers, lounges, paper tickets, frequent flyer program and “free meals”.
Cebu Pacific also partnered with SIA Engineering Company ( the number 1 aircraft maintenance provider in Asia) which guarantees expert maintenance support in all the airports Cebu Pacific flies to. On late November 2001, Cebu Pacific Air started operating international flights with a twice- daily service to Hong Kong and then March 1, 2002, Cebu Pacific Air introduced thrice-weekly flights to Seoul which proved to be really effective because of the more affordable prices Filipinos now have a hance to go out of the country at a very affordable price.
Now the question is has Cebu Pacific, come back in a way that it can now be compared to other airlines in Asia or worldwide. With the conceptual and theoretical framework provided below questions that will have to be explored are: 1 . ) How will Cebu Pacific Airline Manage to stay on the top 3 of low budget airlines? 2. ) How will Cebu Pacific maintain its world class standards with it being a budget airline? 3. ) How Ccould Cebu Pacific keep in touch with their customers? 4. ) How will Cebu Pacific guarantee the safety of their customers?
Figure 1: Conceptual Framework The Conceptual framework that we used was how to get customers back after crash incident happened, what we want to do is, to get the customers back and how we can get and build their trust, so that they can come back and have customer loyalty. In the airline industry service is one of the most important assets of the company, when your service quality is positive this will result to good customer satisfaction, with good customer satisfaction there is no reason for the customer not to come back for your service.
But when customer satisfaction is low, the company can receive complaints nd improve on the customer needs. Brand image is also important to the company, this is because this is how your company portrays itself to the public if you don’t have good brand image customers will not go to you. This is why it is important for Cebu Pacific to rebound from their crash incident because when people heard about the incident, people thought it was not a good idea to purchase flights because it was not safe. After fulfilling the customer needs the most important thing is to maintain the customer satisfaction so that the customers will come back to you.
Theoretical Framework Cebu Pacific Airlines is owned by one of the biggest companies in the Philippines which is JG Summit. What Cebu Pacific has to do is maintain world class standards in service for a low budget costs solutions are: (1) Brand new planes = efficiency, planes that are hi tech have low maintenance and more fuel efficiency. Because of this, costs are reduced and savings will be seen (2) Joint Venture = Expert Inexpensive Malntenance Avlatlon Partnersnlps wltn otner engineering companies tnat will guarantee expert maintenance support to any airport that they fly to so that
Expensive Maintenance will not be made (3)lmproved Website = Ticket insurance should be faster and cheaper, open 2417 websites in English, Filipino, and other languages and Electronic ticketing (4)No Paper Tickets = no paper and printing costs use only itinerary receipts that will be part of the system no need for paper printing just bring receipt with valid id’s (5)Quality and Value-oriented service no need for newspapers free meals Just what matter most service, pilots, fuel, maintenance etc. and maintain its customer service.
Methodology A research design is a master plan specifying the methods and procedures for ollecting and analysing the data. It is a strategy or blueprint that plans the action for carrying through the research project data. A research design involves a series of rational decision-making choices depending upon the various options available to the researchers. This study is descriptive in nature. It provides a description of competencies of marketing professionals in the current industry through in-depth interviews that provided first-hand information. Descriptive research provides insights into and comprehension of an issue or situation.
This research design helps to determine the est research design, data collection method and selection of subjects. Types of Research Design, Correlational, Field (survey), Experimental, Qualitative, Meta- analysis. The researchers chose descriptive interview essentially in-depth interview to determine employers’ perspectives on how company can rebound from their bad impression. Through this method, the researchers will be able to specify each detail on how the respondent will react on the company. By using descriptive interview, it allows too study the participants in their natural setting, secondly, it maximizes the realism.
The researchers chose respondents that will help in providing the information relevant for the study. The researchers will interview 15 random employers who experience to ride an airplane. Two types of interviews, unstructured and semi-structured, their usage depending on the aim of the study. Semi-structured interviews are characterized by topic guides containing major questions that are used in the same way in every interview. Semi-structured interviewing is suitable when the researcher already has some grasp of what is happening within the sample in relation to the research topic.
Unstructured interviewing allows the respondent to tell their own stories in their own words, with prompting by the interviewer. Its objective is to find out what kind of things is happening rather than to determine the frequency of predetermined kinds of things that the researcher already believes can happen. Regardless 0T wnetner unstructured or seml-structurea, tne questlons posed aurlng the interview should be as open-ended as possible, in order to avoid simple answer or rehearsed aanswers. In this study, the researchers utilized a semi-structured interview.
The researchers will characterized by topic guides in every interview in rder to gain standard information from respondents. It is important to build a rapport with the interviewee before starting the interview so that both sides can feel more at ease. Different ways of posing questions and using probing and prompting help to elicit more information or steer the interview. The interview involves questions that correspond to the objectives of the study. The development of the questions of the interview guide was based from the actual statement of the problem of this research paper.
The process also involved examination of the theoretical framework and existing related literature to include ssential items as criteria for designing the questions in the interview guide. Prior to the interview proper, each respondent will be sent a copy of the interview guide. They will be given an ample time of ten days (10) to prepare aanswers for the actual interview. If allowed by the respondent, the researchers will video the actual interview on the actual date of appearance. Related Literature Customer loyalty to a company or to a store is very important in a business.
It will increase your sales more, it will help you introduce a new product and most especially it will be your greatest adverstisment, I am talking about the word of outh. People will refer you to their friends and you will gain more customers. Cebu Pacific Airlines is an airline established on August 26, 1988, and started operating on March 8, 1996. According to the Journal marketing research 2009, Keeping your customers happy and contented will make your business good. Having such as loyalty programs would make them your loyal customers.
Having loyal customers is the most important thing, however if all of your competitors including you offers, loyalty program it would be now useless. It will be Just an increase in expenses. To increase service pproduactivity, many companies utilize automation extensively to reduce the use of labor. However, greater use of automation does not always result to higher service quality, and the effectiveness of automation is providing service hinges on how advanced the technology level is Oennifer J argo & Katherine white).
Studies show that customers are willing to spend more with products that are high in quality and spend less with products low on quality. Even if the price is high consumers will still choose to purchase that product compared to a product that is cheap but is less n quality. When consumers are given more choices for a certain product, they will be more concerned with the price rather than the quality because price is much easier to be noticed compared to quality, like Cebu pacific giving discounts but has the quality like the other high end airlines such as pal.
Having a popular brand is the most Important tnlng Tor a producer to De successTul. IT a consumer Keeps on nearlng and seeing a certain brand it is most likely that the consumer will avail of it rather than trying a brand that he is not familiar with. A lot of companies are investing illions and millions Just to maintain their brand names and make it popular so that people will invest more in their products and they will be loyal customers Oournal marketing research 2007. ) Prior research has found that under certain conditions, small packages can paradoxically increase consumption.
This work suggest that people low in appearance self-esteem are particularly sensitive to external control properties and as a result, increase consumption levels when packages are small. Cebu Pacific Airlines giving affordable price by giving discount to consumers to grab heir attention to keep on moving up their sales and to get known in the industries. Self controlling usually occurs when people have long term goals. People tend to get impatient to save money to buy their long term goal eg. House, car. People tend to use their money for short term pleasures eg. Beers, gimmicks.
This will result to failing their dream of buying their long term goals. Consumers with an active with an active self-regulatory goal will tend to focus on the cost of the things they are purchasing rather than pleasure, as a result they will be more successful in attaining their long term goals Oournal marketing research 2006. Companies are challenge to improve their promotion methods in order for them to make a good name and to maintain their products in the market. Retailers are afraid or in great risk whenever they face a new product because of the high ppercentage of failure.
Considering the new products that were endorsed before, only a few of them survived. New products are also considered critical for the long term success of firms. They also observed that the new products have the same method of how it is being introduced to the market and most of them were not successful. This Journal also suggests that a tong relationship between the product and the retail buyers will make a new product successful. RESULTS AND DISCUSSION In this part of the research, results from the data collection method were then gathered and analyzed for interpretation of data.
Survey question can be view at the Appendix I of this research. This part will show the results and explain in detail each and every answer to the objectives of this paper. The first objective of this research is to know what aspect of the marketing sources affects the consumers. In a marketing source, there are four categories: price, place, promotions, and service. These four are then categorized to a more specific manner to show which part of it affects the consumer the most. least rating which in return, tells that the functionality of the product has the least effect on consumer spending.
Eighty-seven per cent (87%) of the respondents say that the quality has the most influence on their consumer spending behavior as you can see on Table 2. It affects them the greatest and 5% of the population say that it does not affect their spending behavior at all. Most people see quality as the basis for their spending behavior. What they see with thers have a great effect on them and they create this psychological fact that having the same would be satisfying to them. Service Rating Verbal Interpretation Service MOSTNEED Brand name 3. 0 NEED Quality 3. 92 Pricing 3. 81 newarticle. 0 These researches, the four categories of the marketing sources were analyzed. According to the newarticle above this shows the one of the marketing source which is the Service. Under the Brand name there are four characteristic or qualities that each respondents rated according to show what they need. Service has the greatest mean rating among the four. Having the rate of 3. 92/4. 0. This shows that Quality has thea greatest influence among the respondents who participated in this research.
Half of the respondents say that brand name is influential but not to the extent that it is more important than anything else. Meaning to say that the brand name of the product in important to consumers but mostly people spend by Service. (Refer to Table 2) Also, half of the respondents say that service is the most need to spend by the consumer; it is next to quality which mearns that, consumer wants is the best service that you can give to them so they will go back for some more. 45 33 31 9 Brand Name 5 18 3 47 17 5 Prlclng 12 4 Table 2. 0 Customer intend to spend money who will give them good service (Refer table 2. ). Quality is the second to the highest ppercentage that the correspondents rate that give the researcher the idea that giving service plus the quality of it will give good results on giving customer service. On the other hand, pricing is also need to consider as one of the important role of giving service but low price cost. Now we briefly answer the research objective number 5 The other objective is the pricing. The research objective is; how will Cebu pacific manage to be in the top 3 budgeted irline, the researchers conduct a survey question which will answer this objective.
See survey questionnaire at the appendix l. Another segment to answer the objective is to determine the pricing. Affordability is influential to 68% of the respondents. When a product or a service is affordable, people tend to buy them. It also becomes a vital part in the consumers’ decision making process. People who are trying to make ends meet try to purchase products and services that are of low Price has always been a dynamic part of marketing strategy. Pricing is important to marketing since it enerates the income needed by the company in order to grow and expand.
The price of the product/services sometimes becomes the value of a brand. Price Affordability 3. 12 Most Need Seasonal Pricing 3. 16 Discounts 3. 37 Suggested Retail Price 3. 22 Table 3. 0 58 10 2 6 Srp 41 16 7 Table 4. 0 Discounts’ influence constitutes to 58% of the respondents (refer to Table 4. 0) perception. Discounts offers consumers lower prices and thus making it easier to afford. Discounts often happen when there is surplus or when there is an event. Price discounting is a technique whereby businesses offers consumers incentive to nduce them to purchase products and services.
Seasonal pricing is very influential to 47% of the respondents in this research. Businesses adjust prices and create promotional events to increase profit. Since it is seasonal, demands are higher and businesses are able to maximize their profits during these times. Christmas is the one of the most popular season in the country, many business utilize this season to earn. Suggested retail price or SRP is commonly seen in nowadays in the products’ advertisements. According to 44% of the respondents (refer to table 4), SRP is very influential to consumers.
Suggested retail prices shows the minimum price a retailer could use to that would give them enough profit in selling the product. Sometimes, although SRPs are being advertised, retailers tend to mark up their prices. Marketing sources are influential to most of the respondents. All of its categories: place, price, promotions, and place has been influential to most of the consumers. But mostly, brand name has the most influence on consumers since it becomes the vital part on the consumers buying process. The fourth object of this research is to find the kind of reference group which mostly affects the consumers.
Reference groups are what consumers use as standard of reference against oneself to be compared to. According to the data gathered in this research, friends are influential to 66% of the respondents (refer to table 5. 0) Consumers often go shopping with friends. Their friends’ opinions and views influence a consumer on the perception in buying. Friends help consumers to evaluate products, brand, and stores that it ennances consumers’ motlvatlon to purcnase a pr Friends 28 Family Acquaintance 42 8 Colleagues Table 5. 0 oauct or a servlce. has become a primary influence to consumers’ buying process.
Colleagues are influential among the 44% of the respondents. Colleagues are the people associated with consumers. Most respondents say that colleagues are influential to them. In some time of the day, people communicate with their colleagues and they exchange ideas and opinions. One main reason why it is influential to consumers. The exchange of ideas gives them the motivation to purchase a product or service, being told by the other the experience the person had in purchasing the product. Acquaintance is influential to 45% of the respondents in this research. Reference Group Verbal Influence 3. 21 3. 23