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Value Creation by Self-Service in Air Asia

4 Februari 2011   08:34 Diperbarui: 26 Juni 2015   08:54 1212
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Service is unmeasurable, but can be felt by the customer. Every customer who buys a product is always thinking not just buy these products but also buy the service that accompanies the product. If customers are satisfied with the service provided, then he will come back to buy the product. After multiple customers buy those products, the service accompanying the product will be a must accompany the items purchased. So the service here cannot be separated from the product items purchased.

Nowadays service technology is needed by all mankind. For example, online shopping, paying bills, buying stock, online banking and from home are increasingly common ways to cope with the growing complexity of our lives. Everything is done by man alone that acts as a buyer, payer and user. Self-service technology enables customers to produce and perform a service independently, without any direct interaction with  firm's employees. Customers can enjoy free do volition in determining what products they want. It may be done with the help of the Internet. Internet has created completely new consumer behavior, new marketplaces (spaces), and competition patterns. New consumer behavior means a new customer in shopping habit. With the ease of which there are, for example, without the need to queue when paying, customers enjoy freedom in created the value they want. The Internet also creates new marketplaces. The point is through the internet people do not need to come to the store to buy food and the seller does not need to have a shop to sell food. Simply transaction over the internet then the goods ordered will soon be acquired customer. The Internet also creates competition patterns. The point is that with the ease of searching a variety of providers so customers can easily compare which items are most desired by the provisions of the closest their standard. This encourages providers to sell the goods by providing a better service to attract buyers.

In order for customers to perform self-service, knowledge and skills are needed to operate the existing equipment, such as customers should be able to operate the computer to make access Internet. With the knowledge and skills possessed these, new customers can enjoy the conveniences which offered by existing technologies. Without the knowledge and skills, customers will not get Company’s offer value despite the company is designing in such a way as offering products. Then it can be concluded that there must be close cooperation between the companies with the customer. Company provide a better service, customers have the knowledge and skills to be able to maximize existing technology. In that time, both of customers and companies are creating value. After this, if the value obtained by the customer to satisfy their needs, then the customer will repeat to use the same service. This will happen many times. The more customer needs and satisfaction are met then they will again use the services provided by the company. But if at one time the customer was disappointed, there is a possibility they will try to see the possibility of competitors to meet their satisfaction. If this happens then the customer can switch to competitors. They are no longer loyal to the former company. Therefore the company should be able to maintain and improve service. Customers will be loyal to a product obtained when satisfaction persist or increase. If the number of customers who are loyal to the service of a product increases, the need of service to be observed what is most desirable customer. This is where the role of service attributes beginning to show. It is exemplified by Witell & Fundin (2005) about the remote control of television. Formerly the remote control is a service attribute of the television with indifferent Quality. That is only to distinguish one brand of service provided by any other brand. But this time, the remote control has become Must-Be Quality, which is a service that should accompany all existing televisions. If the company produces television without a remote control, then we can ensure customers would not buy the television. The chain has become increasingly visible as we look at customer behavior with Air Asia.

For businesses that increasingly tight competition, companies are required to continue to develop the innovation of service provided to enhance the desired value to be achieved. New creations have been carried out as the technology advances that offer convenience. Creative to create a higher value is also needed in the aviation world. Currently, a lot of airlines are operating in this world. The number of these airlines offers a variety of choices to customers. This prompted many airlines do creations in improving service to their customers. For example, by using the latest technology for ticket booking, self check-in at the check-in kiosk, choose their own rates to be paid in accordance with the purposes and has the opportunity to choose which airline the most reliable information about the timeliness and level of service offered.

Airline passengers are becoming less reliant on assisted ground services and as high as 70 per cent of them want self-service whether for online booking, check-in and automated security checks. Popular demand is now reaching out into non-traditional areas of self-service as airline passengers demonstrate their increasing ease with online, kiosk and mobile phone channels, showed a global survey undertaken of passenger use of air transport self-service technology. While online booking and check-in are nearing their full potential, there is now a clear demand from the travelling public for self-service on other steps of the passenger journey including automated security checks, which are now acceptable to 70 per cent of respondents compared to 58 per cent in last year's survey. Similarly, demand for automatic boarding gates is now at 70% compared to 57 per cent last year, according to this year’s SITA/Air Transport World Passenger Self-Service Survey.

In 2011, the airline industry will face an enormous challenge. While yields, or revenues per passenger, have begun to improve since airlines slashed capacity, IATA statistics show they are still 5% to 10% below 2008 levels. This suggests that airlines are struggling to raise fares even though demand has begun to pick up. Profitability will be even slower to recover. It is predicted that 2010 will be year of cost controls and capacity caps among most legacy carriers and small low cost carriers. Air Asia should be able to face these challenges, so the value of the firm remains in place.

One of the service attribute that is currently the mainstay of Air Asia is online ticketing, where passengers who buy tickets online can select their own kind of services that will be received when they fly with Air Asia. Based on the annual report of Air Asia, in 2009, as many as 76% ticket purchase is carried out through internet booking, service attributes thus has become the main option for getting the service passenger flight from Air Asia and has become the must be quality. Kano et al. (1984) explain that if “must-be quality” is not fulfilled, customers will be dissatisfied. However, fulfilling only these needs is not sufficient. The basic needs are so obvious to customers that they do not express them as essential qualities. “One-dimensional quality” results in satisfaction when fulfilled, and in dissatisfaction when not fulfilled.

Other services that involve passengers are self check-in. Passengers can check-in online 48 hours prior and up to four hours before the scheduled flight and print out their boarding pass. This facility is available to passengers taking any route in the Air Asia network, except those flying to Australia where travelers need to go through pre-immigration clearance. With web check-in, passengers can head directly to the Document Check Counter for stamping and to the boarding gate. Those with baggage need to drop them at the Self Check-In Counter at least 60 minutes before boarding. The self check-in kiosks are available at LCCT airports in Kuala Lumpur, Johor Bahru, Kota Kinabalu and Kuching and airports in Jakarta, Bali, Bangkok, Phuket, Chiangmai and Hatyai. They can be used six hours prior and one hour before departure time. After use, customers proceed to the Document Check Counter for stamping then to the boarding gate. Again, those with baggage must deposit them at the Self Check-in Counter.

As Gronroos (2008, p.299) noted that “…the essence of the service logic for the customer and the provider, respectively, can be derived and summarized ……”, so that Air Asia’s customer and Air Asia, respectively, can be derived:


  1. When costumers are using resources provided by Air Asia together with other resources and applying skills held by them, customers create value for themselves in their everyday practices (customer service logic).
  2. When Air Asia is creating interactive contacts with customers during their use of goods and services, Air Asia develops opportunities to co-create value with them and for them (provider service logic).”

All of innovative services as mentioned above further explained that Air Asia as much as possible trying to persuade passengers to involve in creating the service. All services involving passengers to determine the type of services they want based on information technology that is currently being developed rapidly. In order to create value for the company by involving the customer knowledge, customer experience, and service attributes that make it even easier to get the service that the customer wants.

In order to increase the quality of service, Air Asia and all employees are always applying what has been mentioned by Gronroos (2000) on the four most important aspects that are expected by passengers in flight experience. First, Air Asia care and concern to passengers, Air Asia passengers feel confident that they will get a solution by using the services given by Air Asia. Second, Air Asia will reach its passengers spontaneously to provide the best service and attention to the problems faced by passengers. Third, contact employees of Air Asia have the skill and knowledge in performing their jobs and work in accordance with the standards to meet the wishes of the passengers. Fourth, if there is problem in terms of service, employees of Air Asia will be as soon as possible take measures to control the situation and find the solutions as quickly and as possible.

As airlines struggle for a widespread adoption of self service technology, it is increasingly important to understand the factors affecting customers’ attitudes toward these kiosks and the consumer adoption behavior for the new technology (Liljander, Gillberg, Gummerus, & Riel, 2006). However, although substantial research has been conducted to study the functions, technologies, and information management of self-service kiosks (Maguire, 1999; Ni & Ho, 2005; Nicholas, Huntington, & Williams, 2003; Tung, 1999), despite their widespread installation throughout the world, little research has been performed to determine whether self-service kiosks provide a sufficiently high-quality service for air passengers.

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