Applying a Dynamic Model of Consumer Choice to Guide Brand Development at Jetstar Airways
Download (311.26 kB)
-
Altmetric Citations
Danaher, Peter J; Roberts, John; Roberts, Ken; Simpson, Alan
Description
This paper describes the use of a marketing science model by Jetstar, a subsidiary of Australia's leading airline, Qantas, to effectively and profitably compete in the low-cost carrier marketplace. We trace the evolution of the Jetstar strategy from a baseline calibration of its initial position, to its efforts to attain price competitiveness and service parity, followed by its highly focused, cost-effective service delivery strategy. We develop a hierarchical model with parameters estimated at...[Show more]
dc.contributor.author | Danaher, Peter J | |
---|---|---|
dc.contributor.author | Roberts, John | |
dc.contributor.author | Roberts, Ken | |
dc.contributor.author | Simpson, Alan | |
dc.date.accessioned | 2015-12-10T21:56:47Z | |
dc.identifier.issn | 0732-2399 | |
dc.identifier.uri | http://hdl.handle.net/1885/39598 | |
dc.description.abstract | This paper describes the use of a marketing science model by Jetstar, a subsidiary of Australia's leading airline, Qantas, to effectively and profitably compete in the low-cost carrier marketplace. We trace the evolution of the Jetstar strategy from a baseline calibration of its initial position, to its efforts to attain price competitiveness and service parity, followed by its highly focused, cost-effective service delivery strategy. We develop a hierarchical model with parameters estimated at the individual level. This allows us to study not only how service design and pricing initiatives shift the perceived performance of Jetstar relative to its competitors but also how the airline can move market preferences toward areas in which it has competitive advantage. The contribution of the research is substantial. The Jetstar market share went from 14.0% to 18.1% during the first five quarterly waves of the research, and profits went from $79 million in 2006-2007, before the study was commissioned, to $124 million in 2008-2009. | |
dc.publisher | Institute for Operations Research and the Management Sciences (INFORMS) | |
dc.source | Marketing Science: the marketing journal of INFORMS | |
dc.subject | Keywords: Airlines; Bayesian estimation; Consumer choice; Marketing strategy; Service management | |
dc.title | Applying a Dynamic Model of Consumer Choice to Guide Brand Development at Jetstar Airways | |
dc.type | Journal article | |
local.description.notes | Imported from ARIES | |
local.identifier.citationvolume | 30 | |
dc.date.issued | 2011 | |
local.identifier.absfor | 150503 - Marketing Management (incl. Strategy and Customer Relations) | |
local.identifier.ariespublication | u4024396xPUB180 | |
local.type.status | Published Version | |
local.contributor.affiliation | Danaher, Peter J, University of Melbourne | |
local.contributor.affiliation | Roberts, John, College of Business and Economics, ANU | |
local.contributor.affiliation | Roberts, Ken, Forethought Research | |
local.contributor.affiliation | Simpson, Alan, Forethought Research | |
local.description.embargo | 2037-12-31 | |
local.bibliographicCitation.issue | 4 | |
local.bibliographicCitation.startpage | 586 | |
local.bibliographicCitation.lastpage | 594 | |
local.identifier.doi | 10.1287/mksc.1100.0619 | |
local.identifier.absseo | 910403 - Marketing | |
dc.date.updated | 2016-02-24T10:28:10Z | |
local.identifier.scopusID | 2-s2.0-80051622777 | |
local.identifier.thomsonID | 000293824200003 | |
Collections | ANU Research Publications |
Download
File | Description | Size | Format | Image |
---|---|---|---|---|
01_Danaher_Applying_a_Dynamic_Model_of_2011.pdf | 311.26 kB | Adobe PDF |
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.
Updated: 17 November 2022/ Responsible Officer: University Librarian/ Page Contact: Library Systems & Web Coordinator