Strategies for Mitigating Low-Cost Airlines' Passenger Complaints

176 Pages·2017·1.12 MB·English

Walden University
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Walden Dissertations and Doctoral Studies
Walden Dissertations and Doctoral Studies
Collection
2017
Strategies for Mitigating Low-Cost Airlines'
Passenger Complaints
Michael Jay Price
Walden University
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Walden University

College of Management and Technology

This is to certify that the doctoral study by

Michael Price

has been found to be complete and satisfactory in all respects,
and that any and all revisions required by
the review committee have been made.

Review Committee
Dr. Dorothy Hanson, Committee Chairperson, Doctor of Business Administration Faculty

Dr. Jamie Patterson, Committee Member, Doctor of Business Administration Faculty

Dr. James Savard, University Reviewer, Doctor of Business Administration Faculty

Chief Academic Officer
Eric Riedel, Ph.D.

Walden University
2017
Abstract
Strategies for Mitigating Low-Cost Airlines’ Passenger Complaints
by
Michael Jay Price

MAcc, Nova Southeastern University, 1981
BS, New York Institute of Technology, 1968

Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration

Walden University
December 2017
Abstract
Representatives of the U.S. Department of Transportation’s Bureau of Transportation
Statistics reported that passenger complaints filed for the first quarter of 2015 were up
14.4% over the same period of the previous year. The purpose of this single case study
was to explore strategies for mitigating low-cost airlines’ passenger complaints. Porter’s
generic strategies provided the conceptual framework for this research study. Data were
collected from 3 ground service managers employed by a low-cost airline in Florida
using semistructured interview questions, direct observation, field notes, and review of
the airline’s website and public documents filed with the U.S. Securities and Exchange
Commission. Member checking and methodological triangulation were used to ensure
data saturation. Inductive line-by-line analysis of participant interviews and review of
documents and website to identify similar words and phrases resulted in the emergence of
5 themes: complaints, training, customer retention, policies and procedures, and low-cost
strategies. The implication for social change exists because airline managers can apply
insights gained from this study to mitigate passenger complaints, thereby increasing the
number of customers, lowering fares, and maintaining profitability. In this way, the
study may support the creation of additional jobs for airlines as well as other industries
providing services to an expanded workforce necessary to accommodate more
passengers. Further, in supporting better performance for low-cost carriers, this study
may help these businesses to offer low fares to customers previously unable to afford
travel, enabling them to visit new places and gain a better understanding of other cultures.
Strategies for Mitigating Low-Cost Airlines’ Passenger Complaints
by
Michael Jay Price

MAcc, Nova Southeastern University, 1981
BS, New York Institute of Technology, 1968

Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration

Walden University
December 2017
Dedication
I dedicate this doctoral study to my wife, Caryn, my first and only love, who has
supported me in all my endeavors, stood by me, encouraged me, and put up with me
through all the trials and tribulations of my doctoral journey. I could not have
accomplished this difficult task without you. To my children, Joseph, Alyson, and
Mindy; my grandchildren, Chloe, Isabella, Jacob, Katie, Matthew, Rachel, and Sariah;
my son-in-law, Juan; and my mother-in-law, Cecelia, thank you for your understanding
and support during my journey.
Acknowledgments
I would like to acknowledge and express my sincerest thank you to my
committee: Dr. Dorothy Hanson, Chairperson; Dr. Jamie Patterson, Second Committee
Member; and Dr. James Savard, URR. Each has helped and guided me through this
challenging journey enabling me to attain my DBA. To Dr. Hanson (Dr. D.), your gentle
nudges, comments, encouragement, caring, and support will never be forgotten. Dr.
Patterson, thank you for your help, your airline background, and the guidance you
provided, which added to my research study. Dr. Savard, your comments, although
many, not only enhanced my study, but also provided me with valuable lessons and
information, making my research study better. I also would like to express my thank you
and appreciation to all my instructors, along with a special thank you to Team Synergy; it
was an honor being a member of a group of DBA students helping each other toward a
common goal.
Table of Contents
List of Tables .......................................................................................................................v
Section 1: Foundation of the Study ......................................................................................1
Background of the Problem ...........................................................................................1
Problem Statement .........................................................................................................2
Purpose Statement ..........................................................................................................2
Nature of the Study ........................................................................................................3
Research Question .........................................................................................................5
Interview Questions .......................................................................................................6
Conceptual Framework ..................................................................................................6
Operational Definitions ..................................................................................................8
Assumptions, Limitations, and Delimitations ................................................................9
Assumptions ............................................................................................................ 9
Limitations ............................................................................................................ 10
Delimitations ......................................................................................................... 12
Significance of the Study .............................................................................................12
A Review of the Professional and Academic Literature ..............................................14
Porter’s Generic Competitive Strategies ............................................................... 16
Low-Cost Leadership ............................................................................................ 20
Product Differentiation ......................................................................................... 24
Focus Strategy ....................................................................................................... 28
i
Low-Cost Airlines ................................................................................................. 30
Passenger Complaints and Retention (Loyalty) .................................................... 36
Training ................................................................................................................. 51
Transition .....................................................................................................................53
Section 2: The Project ........................................................................................................55
Purpose Statement ........................................................................................................55
Role of the Researcher .................................................................................................56
Participants ...................................................................................................................59
Research Method and Design ............................................................................................62
Research Method .................................................................................................. 63
Research Design.................................................................................................... 65
Population and Sampling .............................................................................................67
Ethical Research...........................................................................................................68
Data Collection Instruments ........................................................................................70
Data Collection Technique ..........................................................................................72
Data Organization Technique ......................................................................................75
Data Analysis ...............................................................................................................76
Reliability and Validity ................................................................................................78
Reliability .............................................................................................................. 79
Validity ................................................................................................................. 80
Transition and Summary ..............................................................................................82
ii
Section 3: Application to Professional Practice and Implications for Change ..................84
Introduction ..................................................................................................................84
Presentation of the Findings.........................................................................................85
Theme 1: Complaints ............................................................................................ 86
Theme 2: Training................................................................................................. 92
Theme 3: Customer Retention .............................................................................. 95
Theme 4: Policies and Procedures ........................................................................ 98
Theme 5: Low Cost ............................................................................................. 103
Applications to Professional Practice ........................................................................106
Implications for Social Change ..................................................................................108
Recommendations for Action ....................................................................................108
Recommendations for Further Research ....................................................................110
Reflections .................................................................................................................111
Conclusion .................................................................................................................113
References ........................................................................................................................114
Appendix A: Letter of Invitation .....................................................................................151
Appendix B: Generic Strategies.......................................................................................154
Appendix C: Interview Questions ....................................................................................155
Appendix D: Interview Protocol ......................................................................................156
Appendix E: Participant Email Invitation ........................................................................158
Appendix F: Participant Introductory Letter ....................................................................159
iii