A SELECTION OF PROJECTS TO INCREASE IN-FLIGHT MERCHANDISES OF LOW COST AIRLINES IN THAILAND.

Abstract

This study has objectives to 1) Study customer behavior factor affecting buying decision of In-flight merchandises. 2) Analyze the cause of In-flight merchandises decrease. 3) Select the suitable project to increase In-flight merchandises of low cost airlines in Thailand. Research tools are Analytic Hierarchy Process (AHP), Cause and Effect Diagram, depth interview and questionnaire. Two groups of respondents were selected, two hundred experienced In-flight merchandise airline employees and two hundred airline customers who used to fly and buy In-flight merchandises.
The research identified factors that affect customers’ buying decision, they are the variety of In-flight merchandises, sales distribution such as online and delivery service and sales promotions. Data from customer behavior factors, causes and effects diagram and questionnaires based on AHP approach are used to propose four suitable projects in increasing In-flight merchandises, they are (1) develop sales operations including products choosing, (2) implement sales tool, (3) improve incentive plan by increase sales compensation and reward, and (4) train salespeople or cabin crew to increase knowledge, technique and skills. Four primary key performance indicators (KPIs); efficiency, probability of success, customer impact, and sustainability criteria are determined.
Conclusions were: The Analytical Hierarchy Process comprised of 400 decision makers showed that the most suitable project to increase In-flight merchandises is developing sales operations with a weight value of 0.332. The necessity of training salespeople was perceived as less significant and there was no statistically significant difference between the rankings of two groups of respondents.