After having read the Alizee airlines case, carry out the following tasks:
Task 1 Establish the research framework: complete the form below with information you find in each section of the Alizee case.
Section What is the main objective of this section? Which information is the most relevant?
1 2 3 4 5 6
Task 2 Make an analysis of the results from the in-depth interviews of the two groups : Alizee consumers and non-Alizee consumers for Brazil, Malaysia and the USA (see section 5 ).
A. Summarise the results concerning the five variables in the table below:
1. Determine whether each of the five variables given is relevant or irrelevant. For each variant which you consider relevant, mention the common responses and the aspects these reflect.
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171 Part One Final activity A1.1
Variables
Brazil Malaysia USA
Consumers Non-consumers Consumers Non-consumers Consumers Non-consumers Future
orientation Performance orientation Institutional collectivism Power distance Uncertainty avoidance
2. Write an analysis based on the completed table.
B. 1. Compare the results from consumers and non-consumers for each of the countries involved in this case, regarding their perceptions of online efforts and preferences for online channels, such as:
● performing channels
● e-mail: Alizee campaign ‘luggage tag’
● display: banners of an online advertisement.
2. Write a separate analysis by country.
Task 3 Discuss the conclusions.
A. Complete the table below using the results concerning the relevance of cultural dimensions for Alizee for the three countries, i.e. the combined results for consumers and non-consumers from task 2. Use the terms ‘relevant’, ‘moderately relevant’ or ‘irrelevant’ for each variable.
Brazil Malaysia USA
Power distance Performance orientation Uncertainty avoidance Future orientation Institutional collectivism
B. In section 6 of the case, the authors make the following statement: ‘It seems that when consumers approach airline services in the online environment, they do so on the basis of cultural constructs that do not necessarily follow the GLOBE study’s results’.
Compare the completed table above with Table A1.1.2 (Relevance of cultural dimensions according to GLOBE study) and write a conclusion for each of the countries.
C. Short essay: discuss the following statement: ‘Research methods using cultural dimensions (e.g. those from the GLOBE project) are not relevant to the study of international business issues.’
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Part One Final activity A1.1
Alizee airlines case
Cultural dimensions and their impact on online behaviour and consumption of digital channels among airline consumers from Brazil, Malaysia and the USA
Shortened and adapted from a thesis written by Javier Arias (Costa Rica) and Robert Deidun (USA), MBA graduates (2012) of Nyenrode Business University, the Netherlands
1. INTRODUCTION
This case study focuses on understanding the cultural differences in terms of what generates sales in the digital environment among Alizee consumers from the USA, Brazil and Malaysia.
Online channels within the airline industry have grown significantly as a source of revenue and a way of engaging with consumers. Therefore, it is very important for Alizee to understand all the variables that influence customer behaviour in the online environment. So far, Alizee has successfully implemented campaigns in Brazil, the USA and Malaysia through online channels such as mobile, display advertising, e-mail, metasearch, affiliation and social media. All of these campaigns have engaged consumers through increasing brand awareness, promoting transactions or allowing interaction with the brand.
Nonetheless, the competitive airline environment obliges the company to constantly look for ways to improve its connection with consumers.
Alizee is aware of the need to understand this behaviour in order to take its online marketing efforts to the next level. To this end, this case study aims to reveal insights into the markets mentioned to help Alizee in its efforts to develop engaging and effective online marketing initiatives.
Research into consumer behaviour has shown that cultural dimensions still play an important role in the decision-making process. That is why Alizee wants to know more about the cultural similarities and differences that affect buying behaviour for Alizee services through different online channels in the USA, Brazil, and Malaysia. By becoming more aware of how cultural dimensions affect the online behaviour of consumers in each of these three countries, Alizee can optimise online marketing activities which are specific to each.
However, due to time limitations, the research on which this case is based does not provide a representative sample of the whole population in each market, since only a limited number of consumers and non-consumers will be approached. The conclusions of this report, therefore, cannot be applied to all consumers of each market or to other markets where Alizee operates.
2. COMPANY ENVIRONMENT
Global airlines offer consumers the quickest and most time-convenient method of transportation, making them a key player in transporting the world’s globetrotters. As can be seen in the Air Transport Association of America’s 2010 Economic Report, commercial aviation plays a major role in today’s modern economy, providing economic activity as well as millions of jobs in the global work force.
The general landscape of today’s airline industry requires players in the markets to offer high levels of customer service among their clients (Wiseman, 2012). The digital environment provides the airline industry with a plethora of opportunities to develop products which meet the growing needs of its customers. To take advantage of these opportunities, it is necessary to understand the markets where an airline company is operating and, in particular, to understand the differences between these markets from a cultural standpoint.
One useful way for Alizee to measure the effectiveness of cultural variables within the online processes of airline services is to use as benchmarks the home carriers in the markets where the company operates. In this regard, the following airlines have been defined by Alizee as relevant players in the markets investigated in this study: Airline B (in Brazil), Airline U (in the USA) and Airline M (in Malaysia).
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173 Part One Final activity A1.1 3. RESEARCH METHODS
In order to understand the behaviour of online consumers in the different markets, a qualitative exploratory approach was used for this study. According to Patton (2002):
Qualitative methods typically produce a wealth of detailed information about a much smaller number of people and cases. This increases the depth of understanding of the cases and situations studied.
Patton, 2002: 14 That is why this project makes use of non-numerical research tools to gain a deeper understanding of the cultural drivers, artefacts and attitudes of consumers’ online behaviour and their interaction with different online channels.
Different research methods will be used to understand the different variables that play a role in the decision-making process of consumers in the three markets mentioned above. Two groups of variables – as defined by the GLOBE project – were made.
The first group included variables to be explored via in-depth interviews. These variables include: power distance, uncertainty avoidance, institutional collectivism, future orientation and performance orientation. The second group of variables were inves- tigated via analysis of information displayed on the Facebook profiles of each airline. This group of variables includes: in-group collectivism, assertiveness, gender egalitarianism and humane orientation. (See section 4 , Table A1.1.1 .)
This adaptation of the original thesis will only focus on the results of the first group of variables which were obtained via in-depth interviews. These in-depth interviews were carried out with airline consumers as well as stakeholders from each of the markets. These stakeholders provided an understanding of Alizee’s operations in the markets selected. Their responses served as a means not only to understanding the business, but also to defining some of the questions for the consumer interviews.
According to Boyce and Neale (2006):
In-depth interviews are useful when you want detailed information about a person’s thoughts and behaviours or want to explore new issues in depth.
Boyce and Neale, 2006: 3 This research method helped to obtain insights into the beliefs and values that determine the interaction between consum- ers and airlines through different digital channels. It also provided an overview of the norms that determine the perception and efficiency of Alizee’s digital communications. Hence, additional questions were asked during the consumers’ interviews about performing channels and two Alizee campaigns:
● Where do you prefer to buy your airline ticket, i.e. through your computer, iPad, mobile phone, others? Why?
● I would like to know what you think about this e-mail. What would you change in it? (The interviewee was shown an e-mail about an Alizee campaign which offered the consumers the possibility to personalise a luggage tag with predetermined pictures or pictures uploaded by the user, plus text.
● I will present you with an online advertisement. (The interviewee was shown the banners of an online display advertisement whereby Alizee promotes low fares for specific destinations.) What did you like about it? What would you change in it?
Both researchers conducted the in-depth interviews. In the case of the consumers’ interviews, a pilot survey was carried out with an airline consumer in order to validate the comprehensibility of the questionnaire and to minimise room for misinter- pretation. However, the international scope of the case study implied some local interpretation of questions, especially in Brazil where English is not the mother tongue.
The interviews with airline consumers were conducted on a one-on-one basis by one of the researchers and took place in a comfortable environment. The closed environment used was intended to promote trust and to encourage the interviewees to be more open when giving their responses.
Interviews with airline consumers from Malaysia were run in Alizee’s local offices in Kuala Lumpur. Interviews in Brazil were conducted in Sao Paulo in the presence of a Portuguese-speaking interpreter. The interviews with USA consumers were con- ducted at Amsterdam’s Schiphol Airport.
The interviewees were people who could provide information related to the content of the research project. In this case, the most relevant players who provided the insights regarding the role of cultural dimensions of each market were:
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Part One Final activity A1.1
a) Airline consumers: ten consumers from the USA, Brazilian, and Malaysian markets were used as a primary source of infor- mation. Two main groups of interviewees were approached – Alizee consumers and non-Alizee consumers for each market;
five of the interviews were conducted with Alizee consumers and five with non-Alizee consumers.
b) Stakeholders related to Alizee online operations: country managers from different departments in the Brazil, Malaysia and USA markets.
4. VARIABLES
Table A1.1.1 Conceptual, instrumental and operational definitions of each cultural variable Cultural variables
(House et al. , 2004)
Conceptual definition (House et al. , 2004)
Instrumental definition Operational definition In-depth
interviews
Power distance
‘The extent to which a community accepts and endorses authority, power differences, and status privileges’
This variable is considered to be relevant for Alizee’s online marketing
communications if the interviewees refer to at least three of the following aspects:
privileges, status, power, equality, differences between economy and business classes, exclusivity and social mobility.
This variable is included in the questionnaire of the in-depth interviews.
Uncertainty avoidance
‘The extent to which a society, organisation, or group relies on social norms, rules, and procedures to alleviate the unpredictability of future events’
This variable is considered to be relevant for Alizee’s online marketing
communications if the interviewees refer to at least three of the following aspects:
formality in interaction, risk taking, change, planning, structure, reaction to events (expected and unexpected), self- protection and social norms.
This variable is included in the questionnaire of the in-depth interviews.
Institutional collectivism
‘The degree to which organisational and societal institutional practices encourage and reward collective distribution of resources and collective action’
This variable is considered to be relevant for Alizee’s online marketing
communications if the interviewees refer to at least three of the following aspects:
group loyalty, autonomy, friendship, organisation (interdependence/
independent), individualism, social fairness, decision-making.
This variable is included in the questionnaire of the in-depth interviews.
Future orientation
‘The degree to which a collectivity encourages and rewards future- oriented behaviours such as planning and delaying gratification’
This variable is considered to be relevant for Alizee’s online marketing
communications if the interviewees refer to at least three of the following aspects: gratification, wealth management, long-term/short-term, connection between wealth and fulfilment,
flexibility to reach goals, treating yourself,
‘the now’
This variable is included in the questionnaire of the in-depth interviews.
Performance orientation
‘Reflects the extent to which a community encourages and rewards innovation, high standards, excellence, and performance improvement’
This variable is considered to be relevant for Alizee’s online marketing
communications if the interviewees refer to at least three of the following aspects:
innovation, excellence, performance,
‘high standards’, materialism, value of self, self-improvement.
This variable is included in the questionnaire of the in-depth interviews.
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175 Part One Final activity A1.1
Cultural variables (House et al. , 2004)
Conceptual definition (House et al. , 2004)
Instrumental definition Operational definition Analysis and
data-processing (Facebook)
In-group collectivism
‘The degree to which individuals express pride, loyalty, and cohesiveness in their organisations or families’
This variable is considered to be relevant for Alizee’s online marketing
communications. In the Facebook pages at least two of the following aspects are displayed four times in a two-month period: social endorsement, pride, loyalty, pace of life, relations.
This variable is considered in the matrices for the data-gathering of Facebook fan pages.
Assertiveness ‘The degree to which individuals are assertive, confrontational, and aggressive in their relationships with others’
This variable is considered to be relevant for Alizee’s online marketing
communications. In the Facebook pages at least two of the following aspects are displayed four times in a two-month period: complaints, competition, personal environment (control/harmony), ambiguity, trust building.
This variable is considered in the matrices for the data-gathering of Facebook fan pages.
Gender egalitarianism
‘The degree to which a collective minimises gender inequality’
This variable is considered to be relevant for Alizee’s online marketing communications. In the Facebook pages at least two of the following aspects are displayed four times in a two-month period: gender segregation, women, societal roles, gender interdependence;
and economic participation.
This variable is considered in the matrices for the data-gathering of Facebook fan pages.
Humane orientation
‘The degree to which an organisation or society encourages and rewards individuals for being fair, altruistic, friendly, generous, caring, and kind to others’
This variable is considered to be relevant for Alizee’s online marketing communications. In the Facebook pages at least two of the following aspects are displayed four times in a two-month period: social responsibility, friendliness, caring, tolerance for mistakes, well-being.
This variable is considered in the matrices for the data-gathering of Facebook fan pages.
5. RESULTS OF THE INTERVIEWS WITH AIRLINE CONSUMERS
The interviews were accomplished successfully for each of the markets. The same questionnaire was used for both Alizee consumers and non-Alizee consumers in each country, including two questions for each of the first five cultural variables given in Table A1.1.1 . All of the interviewees agreed to respond to all of the questions.
5.1 Results from Brazil
5.1.1 Alizee consumers
For the variable Future Orientation, four of the interviewees said that they decided which flight to take on the basis of cost.
There was some flexibility involved in their decision. One of the interviewees even said: ‘It really depends on what is on offer:
if it was really a good offer maybe I would change my mind’. Alizee consumers mentioned that the next preferred place to fly to on their list was the factor that defined their trip; the season was also a consideration in this matter and they started planning their trips well in advance. Consumers mentioned at least three of the aspects defined in the ‘instrumental definition’
( section 4 ) as relevant to this cultural dimension.
The Performance Orientation variable proved to be relevant for only two people. The most important factor for four of the interviewees when choosing to buy an airline service online was the price. Some interviewees mentioned the flight connections as well. Three individuals perceived the innovations introduced by the airline as user-friendly.
Table A1.1.1 Continued
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For the Institutional Collectivism variable, all of the five consumers said that external sources were their main reference when looking for information about airline services. These sources included forums, blogs and other travel-related websites.
One of the interviewees said: ‘I use an internet forum to share information with people who are planning to travel’. Three of the interviewees would also ask friends if they did not find enough information online. When watching the video ‘Alizee’s Trip plan- ner campaigns’, four of them had the impression ‘it reminds me of me and my friends’. Four of the five consumers showed at least three aspects defined in the ‘instrumental definition’ ( section 4 ) as relevant to this variable.
With respect to the Power Distance variable, consumers had different views regarding whom Alizee’s online efforts such as newsletters and e-mails with promotions, were targeting. Three of the interviewees said that they were aimed at everyone, while one added that Alizee was moving towards a much larger audience. She stated that: ‘From my experience, I would say that Alizee is trying to expand the range of people who travel with them . . . because nowadays younger people have more opportunity to travel due to the economic situation in Brazil’. Interviewees mentioned that Alizee’s efforts targeted ‘people like me’. However, when it came to Alizee’s apps and social media, four of the interviewees replied that only young people used them.
Of the aspects defined in the ‘instrumental definition’ ( section 4 ) of the Power Distance variable, at least three were men- tioned by just one of the interviewees. Still, three of the consumers referred to the ‘social mobility’ aspect in Brazil.
For the Uncertainty Avoidance variable, three of the interviewees stated that they would buy an Alizee ticket online because that was what they had always done. In addition, two of them mentioned that they did so because it was safe. When asked for the reasons for buying a ticket through another party, just one of the interviewees mentioned safety as the reason for doing so.
All five interviewees mentioned at least three aspects of the Uncertainty Avoidance variable (see the instrumental definition, section 4 ). Most of them referred several times to expected versus unexpected situations, self-protection and avoiding taking risks. One of the consumers said: ‘If I had a problem with the ticket I would want to talk directly to the airline company’.
When it came to choosing a channel for buying online services, all five consumers said they preferred using a website. They considered this channel more trustworthy and easy to use. Two of the interviewees said they thought that using a mobile phone channel might not be safe. Three of them considered using a tablet as a possible option. Still, some of them referred to the extra functionality which a desktop offered to be preferable in this sense.
With respect to Alizee’s e-mail campaign, five consumers said they liked the initiative. They found the personalised gadgets to be very attractive. Three of them mentioned that the message was clear. However, three of them also said that the message or images could be even clearer. One of the consumers added: ‘The idea is very good but the font is very small and there is no explanation as to how the promotion works’.
The reactions of the consumers to the display advertisements from Alizee’s campaign were very positive. Three of them said they liked the idea and that the banners were very clear. Two consumers spoke positively about the use of the design elements in the banners, as well as the message given in the text. However, most of the consumers preferred the vertical versions of the banners to the horizontal ones. The latter were more attractive and easier to understand.
5.1.2 Non-Alizee consumers
For the first variable, Future Orientation, the decision about taking a flight involved several different considerations. Three non-Alizee consumers mentioned all of the following: a spontaneous decision, a decision based on cost, a seasonal decision and a decision based on the next place to fly to on their list. Three interviewees mentioned that they plan their trips one month in advance. One of these said that she planned her trip only one month in advance because: ‘I travel with my son, who travels a lot, so my decision is based on the place where he is and whenever he has time’.
For four of the interviewees, the aspects related to Future Orientation were relevant in the decision to plan a trip. Among the aspects mentioned more frequently were the flexibility to reach goals, long-term versus short-term orientation and giving yourself a treat.
The aspects related to Performance Orientation did not prove to be very relevant for this group. However, the five consum- ers said that the range of prices on offer was a key consideration for choosing to buy an airline service online. Reliability was mentioned by two of the interviewees as a relevant factor as well. With respect to the innovations made by airlines online, the answers were very diverse. They ranged from ‘I like them but it doesn’t satisfy my needs’ to ‘They are user-friendly’.
Just like Alizee consumers, most of the non-Alizee consumers said they looked for external sources when they wanted to access other people’s opinions regarding an airline or a destination. Three of them also mentioned that asking friends could be a source of information. Non-Alizee consumers’ impressions of one of Alizee’s initiatives were very diverse. Most of them were positive and included answers such as ‘it reminds me of me and my friends’, ‘I would totally do it’ and ‘I would do it if some things were different’.
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