MR1100 Assignment 1, Fall 2019

JetBlue Case Study

MR1100

College of the North Atlantic

Linda Brown

September 25^th, 2019

This case introduces JetBlue, a low-cost, high-class airline, with a story of overcoming a public relations disaster when passengers were stranded due to a winter storm. Even though this misfortune was expensive and enraged JetBlue’s customers, their core culture of customer service was strong enough to allow them to bounce back and grow stronger than before. JetBlue’s dedication to exceptional customer experience is what sets it apart from its competitors.

JetBlue’s mission is about creating delight for customers at a value that satisfies customers beyond their expectations. Their corporate strategy revolves around customer well-being and providing a first-class flying experience at a cost attainable for the average traveller. During each phase of their relationship with the customer they strive to achieve a high level of service and excellence.

In this report, we will discuss in more detail the market offerings of JetBlue. We will also discuss JetBlue’s strong corporate culture, and the importance of that culture to successfully implementing the mission into the daily practices of the organization. We will discuss the marketing management concepts which apply to this company, as well as look at how JetBlue creates value for its customers. We will then assess JetBlue’s future potential in building customer relationships and reiterate the importance of maintaining strong customer relationships as a strategic competitive advantage.

JetBlue’s consumer needs, or states of felt deprivation, could be classified as the need to travel from one location to another, the need for nourishment, shelter and protection from the elements, the need to access somewhere comfortable to rest, and the need to achieve these goals in a way that is accessible and feasible for everyone. Customer wants are the form that needs take as they are shaped by culture and personality. JetBlue’s customers want what any other airline customer wants—to get from point A to point B relatively painlessly, at an affordable cost. In addition, they may want specific expectations to be fulfilled, such as promptness, reliability, and good customer service. Demands, or, their wants backed by buying power, are convenient flights, and 5% of the time (but 30% of the revenue) customers will demand more luxurious options like first-class (CNBC, 2019).

It is fair to deduce that the average traveller’s expectation of airline experiences might be limited to crowded airports, squished seating, expensive low-quality snacks (if any) and expensive upgrades, unattainable for the average traveller. That is why when customers experience JetBlue for the first time, what they demand and what they receive surpasses all expectation. This creates an emotional reaction in the customer, as they are delighted with the value of the product they have received.

At every stage we see customer satisfaction being pumped generously into each facet of the experience. With customer experience at the core of their mission, each practice is guided by the underlying corporate culture of ensuring the customers wants and needs are met proactively. They make the customer feel important and prioritized, and this appeals to peoples sense of self-esteem and worthiness. Creating the strong, positive emotional reaction in their customers is how JetBlue has differentiated itself from competing airlines.

JetBlue’s product aims to delight customers. In this way, they offer enhancements to the usual flying experience. Enhancements range from tangible perks to intangible satisfaction and pleasure. Through a strategic mix of endless extras and world-class treatment, JetBlue sets itself apart from its larger competitors.

The tangible components of their products include comfortably padded leather seating offers 8 inches of extra leg room, and a further upgrade for “Even More Legroom” fore merely $10.00. To satisfy the customers need for food, and their want for something delicious, healthy and affordable, they offer free snacks, and provide them generously throughout the duration of the flight. Each seat has its own LCD entertainment system with free DIRECTV and SiriusXM Radio. Free Wifi is made available in all terminates and free sending and receiving messages while in the air.

The product could be replicable by anyone who could afford it, but what makes JetBlue stand out against competitors is its intangible benefits—namely, its culture. The culture becomes a part of the product, as it is a deeply ingrained, interconnect weave of customer excellence, satisfaction, and experience. Without the fundamental belief and passion in providing customers with the best service possible, JetBlue may not have bound back from the 2007 storm that created so much havoc. It was on this strong foundation for customer experience that JetBlue secured its resilience in the marketplace.

There is a two-way exchange between JetBlue and its loyal customers. While JetBlue strives to create a world-class experience so that even the average traveller can feel first-class, customers reciprocate with loyalty, and positive word-of-mouth marketing.

JetBlue’s founder, David Neeleman, sought to “bring the humanity back to air travel (CNBC, 2019).” This organizational standpoint is best reflected is the marketing concept orientation, since both have customer satisfaction at the core of their model. The marketing concept, or, “a philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do (Kotler, 2014)” further exemplifies the marketing management orientation that JetBlue adheres to. The customer-centric approach, needs and wants assessments, and integrated marketing to achieve profits through customer satisfaction describes that approach of JetBlue.

JetBlue creates value for its customers in different forms. Firstly, with affordable flights that offer more comforts and luxuries than the competitors, the value of their flight and experience is enhanced. Without having to pay extra, the average traveller gets many perks that are normally reserved for pricier first-class tickets.

Second, there is a psychological value, as the high-class services appeals to people’s egos, sense of worthiness, pride, and confidence. They are made to feel important and valued, and that feeling is something pleasurable that they want to repeat and flaunt to others.

Air travel is expensive and unobtainable for many working-class people in our society. It is not often, in any industry, that the products we consume are truly lavish, or desirable, or quality. Oftentimes, people purchase products out of necessity, with cost being a primary driving force. Most people can’t afford luxury, so they can’t afford to feel that sense of being important, being valued, or being high class.

People want to be pampered, and want to have extras and frills, but most times when they travel, they must accept what is offered and expect that they will be “grinning and bearing it” but not really enjoying the experience of flying. It’s more of a means to an end than an enjoyable experience. But JetBlue has changed that, and the philosophy of bringing the humanity back to air travel is practiced through delighting their customers with an upscale experience that they weren’t expecting. JetBlue is creating lifelong customers through these experiences and maximizing customer equity.

I believe JetBlue is likely to continue to build successful customer relationships because customer relationship management is central to all JetBlue functions. They consider themselves a “customer service company that just happened to fly planes” (Kotler, 2014). Additionally, customers are demanding more from the businesses they support. Through Internet, social media and a shift in attitudes about the consumer-business relationship, customers communicate directly with businesses and are increasingly involved in the production, marketing, planning, development, distribution and rating of products.

Businesses also communicate with customers through social media; requesting feedback, opinions and ideas to bring to the business. JetBlue’s strong relationship with their customers is more easily facilitated in the digital age, and their innovativeness will undoubtedly propel them through any impending crises, just as they emerged from the 2007 storm catastrophe and kept growing even through the Great Recession.

The loyalty of JetBlue customers, created through exquisite customer service and obsession with customer well-being, is expressed through positive reviews and word-of-mouth advertising. Delighted travellers tell their networks about the upscale experience they had flying with JetBlue. They will likely relay that JetBlue challenges the other competing airlines to offer more perks—free snacks, more comfortable seats, cheaper upgrades, and attentive service. Positive word-of-mouth reviews are going to help JetBlue maintain a competitive advantage, even during economic hardship. That will ensure that JetBlue continues to invest heavily in their customer service facets so that this rich form of marketing through their customer relationships maintains strength.

JetBlue raises the standards for airlines worldwide. Offering upscale services, luxury and excellence in customer experience, this airline uses the power of customer relationships and customer equity to build mutual value and sustain a competitive advantage. As corporations dominate our capitalistic society, they will need to innovate and strategize to keep customers loyal. With the vast variety available in our marketplace, a smart strategy is that of JetBlue—to go back to the roots of customer service and rebuild from there. It has proven, thus far, to work out for them!

Bibliography

CNBC. (2019, Jan 24). YouTube.com. Retrieved from How JetBlue Is Challenging American, United and Delta: https://www.youtube.com/watch?v=A53Uos7t32k

Kotler, A. T. (2014). Principles of Marketing. Pearson.