I came across a wonderful case study on Switching Behavior and thought of sharing it online.
Problem Statement: The study is about 2 Airlines Kingfisher and Jet Airways catering to the airline services mainly to the student segment in Karnataka India. Both the Airlines have been offering various promotion campaigns (CASH BACK , FLY 500, FREE TICKET ) to the customers however a high level of Switching has been observed between the 2 Airlines .
Problem Statement: The study is about 2 Airlines Kingfisher and Jet Airways catering to the airline services mainly to the student segment in Karnataka India. Both the Airlines have been offering various promotion campaigns (CASH BACK , FLY 500, FREE TICKET ) to the customers however a high level of Switching has been observed between the 2 Airlines .
Data / Methods and Methodology: The
study aimed to identify the switching behavior
of Consumers between the 2 Airline Companies.The Study was conducted in
3 Phases :
1. The Switching behavior was modeled using Markov’s Model.
There were 2 assumptions made which is called as Markov’s property.
ü
The customer uses current brand which they are
using in order to determine the future purchases- hence the past purchases is
not relevant in the study
ü
The second Assumption that was made was one
period transition between airlines are constant.
2. Next Game Theory is applied to determine the evaluating
and determining decisions under conflict.
Game theory was
applied to determine the most optimal mix.
3. Sensitivity Analysis was conducted to estimate errors and to determine how robust the Model is.
Conclusion and Managerial Implications: Kingfisher
should use Fly 500 and Cash back (50% of the time) as they are the most optimal
and in case of Jet Airways Fly 500 is the best.
Download the paper
Hopefully some day i will have you all downloading papers written by me lolz...
Comments
Post a Comment