Services Case Assignment - Case Assignment Jet Blue 1a This...

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Case Assignment: Jet Blue 1a.) This report is going evaluate several issues that are currently facing Jet Blue and proceed by recommending actions to counteract them. Let us begin by examining several key issues that Jet Blue is currently facing and then identify the source of how these arose. The first issue we are going to examine is that of consumer perception. Jet Blue faces a strong challenge from perception of service because most consumers have a strong perception that overall quality of service is declining. While this is isn’t the case for every service industry it directly correlates to the airline industry, as consumers have grown increasingly unhappy with rising costs and lack of quality. In the text, one possible reason for increased negative perception is stated as, “with more companies offering tiered service based on the calculated profitability of different market segments, many customers are in fact getting less service than they have in the past.” (Pg 12) This is most certainly the case with Jet Blue as they were able to gain success quickly because of their excellent customer service but eventually hit a roadblock that left consumers wishing they could have their past service again. The roadblock was a result of several issues that arose as Jet Blue increased in size, however the most detrimental was clearly the attempted launch of a brand new aircraft, the Embraer 190. Jet blue experienced unexpected glitches, including the aircraft being behind schedule and pilots and mechanics having to take time to learn how to operate the new aircraft. This lead to the erosion of on time performance and also came at a very inconvenient time as Jet Blue was ravaged by Hurrican Rita, Wilma, and Katrina shortly after. These challenges resulted in many Jet Blue customers having a negative perception of the company. Because of these setbacks Jet Blue was faced with a major Customer Gap, which the text describes as, “the difference between customer expectations and perceptions.” (Pg 32) Expectations are often what a customer believes should or will happen, for example many Jet Blue customers expect to receive special amenities and excellent customer service based on promises made by the company. During the storm crisis of 2007 Jet Blue faced a serious challenge as crewmembers and passengers of 10 airliners were stuck on board for six to ten hours. Many of the passengers were frustrated with Jet Blue’s lack of responsiveness to the
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incident. Responsiveness is described in the text as, “the willingness to help customers and provide prompt service.” (Pg 114) While Jet Blue couldn’t control the weather, they did have control over their responsiveness to the incident and could have been better prepared for the long delay. Jet Blue could have avoided this issue by employing a lost customer research technique after a previous storm in order gain information from customers on how they could have served them better. Lost customer research is similar
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This note was uploaded on 02/22/2011 for the course ACCOUNTING 101 taught by Professor Jamesbrown during the Spring '10 term at Abilene Christian University.

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Services Case Assignment - Case Assignment Jet Blue 1a This...

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