Background: Due to the deregulation of the European airline industry within the 1980’s, competition between airlines has intensified greatly. The emergence of low-cost carriers has given rise to the competition on price. However, meeting customer demands and delivering high-quality service, beyond the mere price factor, is still crucial for an airline’s survival. Previous literature has focused on the interactive marketing aspect between employees and passengers when it comes to service quality and customer satisfaction. Today, there is a gap between what management does to satisfy its employees. This research will evaluate what should be done by management in order to meet customer expectations and perform an excellent service.   Purpose: The purpose of this study is to determine how Germania’s management inhibited its employees in delivering superior service quality and how distributed communication within the Service Marketing Triangle negatively affects the Internal Marketing Model. The study’s empirical findings contribute to existing internal marketing literature and result in an extension of the Internal Marketing Model according to Ahmed and Rafiq (2002).   Method: A qualitative method consisting of semi-structured interviews with four former airline employees and two focus groups of 13 students was applied. This setup gives insight into both the consumer and employee perspective. Additionally, to handle the great amount of data, a thematic analysis was applied.   Conclusion: This study shows how Germania inhibited its employees from performing their work and deliver the service quality that was expected by customers. These inhibitions were mainly found in the tools that the company provided. The shortcomings can be found within the Service Marketing Triangle and an extension of the Internal Marketing Model is concluded from these. The findings and existing theory prove, that employee motivation, job satisfaction and employee empowerment are crucial aspects when it comes to meeting customer expectations and hence, delivering excellent service. The degree of the employees’ empathy, competence, and professionalism determine, whether the customer is satisfied and whether they are loyal to the airline.

A presente tese apresenta proposições para o desenvolvimento e aplicação de técnicas de mineração de textos, de modo a contribuir para a gestão de operações nas áreas médicas e de negócios. Os objetivos desta tese são: (i) identificar e estruturar técnicas de mineração de texto, de modo a elaborar um método para prever internações de pacientes provenientes de emergências hospitalares, tendo como base somente os registros textuais não estruturados escritos por médicos durante o primeiro encontro médico-paciente; (ii) comparar previsões realizadas pelo método proposto no objetivo (i) com análises médicas realizadas por humanos, de modo a verificar se computadores podem atuar de forma autônoma na tarefa de previsão de internações de pacientes provenientes de emergências hospitalares; e (iii) identificar e estruturar técnicas de mineração de texto, de modo a elaborar um método para prever a satisfação de clientes de companhias aéreas, tendo como base as avaliações escritas e publicadas por passageiros na internet. Os métodos propostos utilizaram diferentes técnicas de mineração de textos, sendo validados por estudos de caso. Em relação à área médica, o método proposto pode realizar previsões em tempo real sobre a necessidade de leitos, ajudando as equipes de gerenciamento de leitos a melhorar os processos de fluxo de pacientes. Além disso, verificou-se que tanto médicos (iniciantes ou experientes), quanto máquina, tiveram desempenhos semelhantes na tarefa de previsão de internação de pacientes. Já em relação à área de negócios, o método proposto permitiu extrair dimensões de satisfação de avaliações online, além dos sentimentos associados a elas, considerando diferentes perfis de passageiros, serviços e períodos de tempo. Desta forma, foi possível prever a recomendação de companhias aéreas baseado nas avaliações escritas por passageiros. / This dissertation presents propositions for the development and application of text mining techniques, in order to contribute to operations management in the medical and business areas. The objectives of this dissertation are: (i) identify and structure text mining techniques, in order to propose a method to predict admissions of patients from hospital emergencies, based only on unstructured textual records written by physicians during the first encounter with patients; (ii) compare predictions made by the method proposed in objective (i) with medical analyses carried out by humans, in order to verify if computers can work autonomously in predicting hospitalizations of patients coming from hospital emergencies; and (iii) identify and structure text mining techniques to develop a method for predicting airline customer satisfaction based on online customer reviews. The proposed methods used different text mining techniques, being validated by case studies. Regarding the medical area, the proposed method was able to perform real-time forecasts about the need for beds, helping bed management teams to improve patient flow processes. In addition, it was found that both physicians (novice or experienced) and machine had similar performances in predicting patient hospitalization. In relation to the business area, the proposed method allowed to extract satisfaction dimensions of online customer reviews, as well as sentiments associated to them, considering different profiles of passengers, services and time periods. It also enabled the prediction of airline recommendation based on online customer reviews.

<p>The 1990s were one of the most profitable periods for European airline companies, mainly because of development of world economy and increasing globalisation trends. However, towards the end of the decade, a global economic downturn, high oil prices and new forms of competition turned the industry towards troubled times. The European air-travel industry had to face and accept the new airline business concept, called low-cost or no-frill airlines. In these conditions, traditional airlines had to rethink their strategies and question the old business model. As a response to the competition, European traditional full-service airlines formed alliances or networks to expand the route network and to increase efficiency. Although joint actions of airlines within alliances started to grow, full-service airlines continued to report losses in the weak business environment, in which the low-cost airlines were growing. This thesis aims at identifying the strategic decisions the European traditional airlines have made during the recent downturn in the industry and how the case companies perceive customer value in the alliance they are members of. In order to conduct this study, the authors have chosen two airline companies from two large European alliances. Interviews have been used as a main information source. Interviews were conducted with managers of companies, which at the same time were representatives of companies in the respective alliances. The secondary material such as previous interviews, annual reports of companies, recent studies in thefield, were used as complementary data. Findings and analysis at the end are introduced in response to general market situation, and as a company - alliance information.</p>

The 1990s were one of the most profitable periods for European airline companies, mainly because of development of world economy and increasing globalisation trends. However, towards the end of the decade, a global economic downturn, high oil prices and new forms of competition turned the industry towards troubled times. The European air-travel industry had to face and accept the new airline business concept, called low-cost or no-frill airlines. In these conditions, traditional airlines had to rethink their strategies and question the old business model. As a response to the competition, European traditional full-service airlines formed alliances or networks to expand the route network and to increase efficiency. Although joint actions of airlines within alliances started to grow, full-service airlines continued to report losses in the weak business environment, in which the low-cost airlines were growing. This thesis aims at identifying the strategic decisions the European traditional airlines have made during the recent downturn in the industry and how the case companies perceive customer value in the alliance they are members of. In order to conduct this study, the authors have chosen two airline companies from two large European alliances. Interviews have been used as a main information source. Interviews were conducted with managers of companies, which at the same time were representatives of companies in the respective alliances. The secondary material such as previous interviews, annual reports of companies, recent studies in thefield, were used as complementary data. Findings and analysis at the end are introduced in response to general market situation, and as a company - alliance information.

There are many differentiated product industries in which firms offer multiple products in the same market. In making strategic decisions regarding entry, quality and quantity to be supplied for their multiple products firms must consider the competition with rivals as well as cannibalization of their own products that are close substitutes. In this setting, understanding the relationship between the behavior of consumer demand and firms decisions' regarding product characteristics and strategic variables like advertising are fundamental issues in industrial organization. This dissertation empirically explores these fundamental issues in the pharmaceutical and airline industries. The first paper of my dissertation estimates consumer demand for different anti-cholesterol drugs using panel data on a nationally representative sample of individuals who were diagnosed with cholesterol problems in the period 1996-2002. The data provides detailed information on individuals' medical conditions, medical and drug insurance coverage, drug purchases (if any), and other demographic and medical information. Individuals choose whether to purchase an anti-cholesterol rug and, if so, which drug to buy. The model permits flexible substitution patterns among drug choices and persistence in those choices by incorporating both observed and unobserved consumer heterogeneity. The estimates suggest that lower income patients without prescription drug insurance are very price sensitive: they are less likely to use drugs and, if they do use them, they tend to purchase the less expensive drugs. I find that roughly 500 thousand individuals without drug insurance who are currently not purchasing anti-cholesterol drugs would do so in the counterfactual world in which they are given the standard co-payment plan. The second paper also looks at consumer demands for anti-cholesterol drugs. While the first paper focused on the differentiated products, this paper explores the market expansion effects of direct-to-consumer advertising (DTCA). The study combines the individual data used in the first paper with monthly expenditure data on DTCA for the period 1996-2002. The dynamic demand model estimated in this paper explores the heterogeneous effects of DTCA. Overall, I find a positive effect from DTCA with short term elasticity of 0.107. Through persistence in consumer demand this effect lasts over multiple time periods. I find that individuals not taking a cholesterol drug respond more to advertising than those on the drug. In addition, I find that less educated individuals, those that may be unaware of their health condition, and those without health insurance are most responsive to DTCA. Finally, the third paper studies the effect of product ownership and quality on entry in the airline industry. Specifically, this paper empirically examines the decision of an airline to offer high quality nonstop service between cities given that the airline may or may not be offering lower quality one-stop service. I find that airlines that offer one-stop service through a hub are less likely to enter that same market with nonstop service than those that do not. In addition, the quality of the one-stop service is another determinant of entry. Airlines are more likely to enter a market with nonstop service if their own or their rival's one-stop service in the market are of lower quality. / text

This dissertation investigates the economic consequences from hedge accounting signals and risk management disclosure. I first examine the product market consequences to these accounting signals and related disclosure in Chapter 1, then stock market reactions to disclosure requirements in Chapter 2. Chapter 1 examines potential entrants’ strategic entry decisions in response to incumbents’ accounting information and related disclosure. I predict that potential entrants are more likely to enter markets in which the incumbents’ accounting information suggests higher future production costs that are specific to the incumbents themselves. I further hypothesize that the relation is stronger when the accounting signals are accompanied by more disclosure. Using detailed U.S. airline industry data and hedge accounting disclosure under SFAS 133, I find that potential entrants are more likely to enter routes in which the incumbents’ lower accumulated other comprehensive income from fuel hedges suggests their higher future production costs. This entry pattern is stronger when incumbents have more transparent annual report disclosure regarding their fuel hedge programs. The entry pattern is also stronger after a systematic increase in risk management disclosure requirements following the (exogenous) adoption of SFAS 161. Chapter 2 analyzes stock returns of U.S. airlines around events leading up to the adoption of SFAS 161. SFAS 161 enhanced the disclosure requirements for derivatives and hedging activities. I find that U.S. airlines experienced statistically significant positive returns around the key events leading up to the adoption of SFAS 161. I then examine the cross-sectional variation of the returns around these events. Regression results provide initial support for the real effects theory that greater disclosure requirements could distort firms’ hedging and production decisions and lead to suboptimal behavior. In summary, this dissertation provides evidence that competitors use hedge accounting signals and related disclosure in making product market decisions. Meanwhile, additional risk-management disclosures may also distort firms’ hedging and production behavior, leading to suboptimal decisions. This dissertation sheds light on the ongoing projects by the FASB and the IASB on hedge accounting and disclosure and informs the regulators that costs and benefits should be weighted in hedge accounting policy setting.

This dissertation investigates the economic consequences from hedge accounting signals and risk management disclosure. I first examine the product market consequences to these accounting signals and related disclosure in Chapter 1, then stock market reactions to disclosure requirements in Chapter 2. Chapter 1 examines potential entrants’ strategic entry decisions in response to incumbents’ accounting information and related disclosure. I predict that potential entrants are more likely to enter markets in which the incumbents’ accounting information suggests higher future production costs that are specific to the incumbents themselves. I further hypothesize that the relation is stronger when the accounting signals are accompanied by more disclosure. Using detailed U.S. airline industry data and hedge accounting disclosure under SFAS 133, I find that potential entrants are more likely to enter routes in which the incumbents’ lower accumulated other comprehensive income from fuel hedges suggests their higher future production costs. This entry pattern is stronger when incumbents have more transparent annual report disclosure regarding their fuel hedge programs. The entry pattern is also stronger after a systematic increase in risk management disclosure requirements following the (exogenous) adoption of SFAS 161. Chapter 2 analyzes stock returns of U.S. airlines around events leading up to the adoption of SFAS 161. SFAS 161 enhanced the disclosure requirements for derivatives and hedging activities. I find that U.S. airlines experienced statistically significant positive returns around the key events leading up to the adoption of SFAS 161. I then examine the cross-sectional variation of the returns around these events. Regression results provide initial support for the real effects theory that greater disclosure requirements could distort firms’ hedging and production decisions and lead to suboptimal behavior. In summary, this dissertation provides evidence that competitors use hedge accounting signals and related disclosure in making product market decisions. Meanwhile, additional risk-management disclosures may also distort firms’ hedging and production behavior, leading to suboptimal decisions. This dissertation sheds light on the ongoing projects by the FASB and the IASB on hedge accounting and disclosure and informs the regulators that costs and benefits should be weighted in hedge accounting policy setting.

Thesis (Ph. D.)--Miami University, Dept. of Political Science, 2008. / Title from second page of PDF document. Includes bibliographical references (p. 152-162).

This thesis examines the determinants of air route profitability in the European Union and the cooperating countries of Norway and Switzerland. Building on the assumption that only profitable routes are served, I develop a set of probit models that specify route service as a function of route characteristics, airline networks' attributes, airline partnerships and competition. Estimation results show that route profitability increases with population size and decreases with flight distance and the time efficiency of car travel relative to air travel. An airline's airport presence, that is, its share of airport operations, exerts a significant, positive effect on its route profitability, and so does airport presence of its group or allied partners. Competitive effects are asymmetric across airline business types. This paper's contribution to existing airline-route profitability studies lies in accounting for airline cooperation, controlling for an alternative mode of transport, and using EU data for estimation.

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