Review Exercise 3: Characteristics of Services WestJet was founded in 1996 as a low cost Canadian...

Review Exercise 3: Characteristics of Services

WestJet was founded in 1996 as a low cost Canadian airline. Today, WestJet welcomes 20 million travelers annually. Use your own knowledge of WestJet and the company website at www.westjet.com to answer the following.

1. Explain how the four characteristics of services affect WestJet.

2. What marketing initiatives could WestJet employ to try to mitigate the negative effects of these characteristics as much as possible?

Solutions

Expert Solution

1. The four characteristics of services affects WestJet in following ways:

A. Intangibility: Miscommunication or lack of communication of services offered by WestJet to its customers affects the organization since it hurts the revenue of the organisation.

B. Inseparability: Next issue that the organization faces is the lack of provision of customer satisfaction which leads to the customers going for other airlines which provide them better services.

C. Perishability: The third factor which affects the organisation is that the supply and demand is not properly managed and the organization needs to ensure that adequate staff is maintained to cater to the demand and lean period must be catered by reducing the supply of staff.

D. Variability: Last factor affecting the organization is giving variable services to the cistocustan not establishing standard operating procedures to cater to customer demand.

2. Below marketing initiatives could be employed by WestJet to mitigate the negative effects of these characteristics:

A. Communication: Communication to the customers is the best way to ensure that the negative effects are mitigated and effective information is provided to the customers.

B. Well designed website: A properly designed website helps a customer to navigate and see all the services that would be provided to them, hence they will be able to choose best service for them.

C. Customer service initiatives: Proper customer services must be provided at the right time in order to increase customer satisfaction and improve the overall reliability of services provided.

D. Promotions: Promotions of services have to be done on a regular basis in order to ensure that customers are attracted to the services and features are provided to them in order to increase organization revenue.

E. Pricing strategies: Pricing strategies of different services must be catered by pricing the services in accordance with their level of importance and keeping the price in accordance with the income level of customers availing those services.

keosha answered 7 months ago

Next > < Previous

Related Solutions

Case 3 (10 marks) VietJet is an international low-cost airline from Vietnam. As a low-cost carrier,...

Case 3 VietJet is an international low-cost airline from Vietnam. As a low-cost carrier, VietJet offers the different fares based on seasonal demands in order to maximize their profit and hence the fares vary as per the demand during peak and off-peak season. The airline’s total demand is given by; Q = 1200 – 8P, where Q is the number of passengers (in thousands) per year and P is the fare in US dollars. The demand in the peak season...

Exercise 6A-3 Cost Behavior; High-Low Method [LO6-10] Hoi Chong Transport, Ltd., operates a fleet of delivery...

Exercise 6A-3 Cost Behavior; High-Low Method [LO6-10] Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 96,000 kilometers during a year, the average operating cost is 10.3 cents per kilometer. If a truck is driven only 64,000 kilometers during a year, the average operating cost increases to 11.5 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual...

Exercise 3-3 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3] Primare...

Exercise 3-3 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3] Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 32,000 Indirect materials used in production $ 4,930 Direct labor $ 58,300 Manufacturing overhead applied to work in process $ 88,200 Underapplied overhead $ 4,160 Inventories Beginning Ending Raw materials $ 10,100 $ 19,700 Work in process $ 55,100 $ 68,300 Finished goods $ 33,200 $ 42,900 Required:...

Exercise 9-13 Revenue and Spending Variances [LO9-3] Lavage Rapide is a Canadian company that owns and...

Exercise 9-13 Revenue and Spending Variances [LO9-3] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,100 $ 0.07 Maintenance $ 0.20 Wages and salaries $ 4,400 $ 0.40 Depreciation $ 8,200 Rent $ 2,000 Administrative expenses $ 1,700 $ 0.05 For example, electricity costs are $1,100 per...

Exercise 9-13 Revenue and Spending Variances [LO9-3] Lavage Rapide is a Canadian company that owns and...

Exercise 9-13 Revenue and Spending Variances [LO9-3] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,000 $ 0.09 Maintenance $ 0.25 Wages and salaries $ 4,300 $ 0.20 Depreciation $ 8,500 Rent $ 1,900 Administrative expenses $ 1,600 $ 0.03 For example, electricity costs are $1,000 per...

Integrative Exercise Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel Using the High-Low Method to...

Integrative Exercise Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel Using the High-Low Method to Estimate Variable and Fixed Costs Located on Swiftcurrent Lake in Glacier National Park, Many Glacier Hotel was built in 1915 by the Great Northern Railway. In an effort to supplement its lodging revenue, the hotel decided in 20X1 to begin manufacturing and selling small wooden canoes decorated with symbols hand painted by Native Americans living near the park. Due to the great success of...

3 If a researcher is using data that are low in cost and save time, which...

3 If a researcher is using data that are low in cost and save time, which type of data is this likely to be? questionnaire data mined data secondary data patented data observational data

1. Before completing this exercise, review Chapters 3 and 4 of your SPSS textbook and complete...

1. Before completing this exercise, review Chapters 3 and 4 of your SPSS textbook and complete the example in each chapter (the example starts at the beginning of the chapter) to learn how to create a frequency distribution and a histogram. Using these new skills: Use SPSS to create a frequency distribution of the Body Mass Index (BMI) of a random sample of 30 adults diagnosed with the depression (Table 1). Take a screenshot of the output (make sure the...

Exercise 3-6 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3]...

Exercise 3-6 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3] The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 657,000 Direct labor cost $ 85,000 Raw material purchases $ 131,000 Selling expenses $ 100,000 Administrative expenses $ 48,000 Manufacturing overhead applied to work in process $ 204,000 Actual manufacturing overhead costs $ 225,000 Inventories Beginning Ending Raw materials $ 8,400 $ 10,500 Work...

Exercise 5.7 (Algorithmic) Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and...

Exercise 5.7 (Algorithmic) Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year: Number of direct labor hours 6,710 Direct labor cost $87,230 Overhead cost $50,325 During the year, the following actual amounts were experienced: Number of direct labor hours 6,030 Direct labor...

Subjects