PsyPost
  • Mental Health
  • Social Psychology
  • Cognitive Science
  • Neuroscience
  • About
No Result
View All Result
Join
My Account
PsyPost
No Result
View All Result
Home Exclusive Aviation Psychology and Human Factors

Study suggests that airline mergers can improve customer satisfaction

by Eric W. Dolan
May 31, 2018
Reading Time: 3 mins read
(Photo credit: Pavel Losevsky)

(Photo credit: Pavel Losevsky)

Share on TwitterShare on Facebook

A new study in the Journal of Consumer Affairs provides evidence that airline mergers can improve consumers’ perceptions of services.

The research examined the merger between United Airlines and Continental Airlines, which was agreed to in 2010 and completed in 2012. (The merger retained the United Airlines name.)

“Most research concerning mergers and acquisitions are managerial and leaned toward marketing strategy of top managers or decision makers. The main focus has been on the role of mergers in companies’ profitability and growth,” said study author Peter Andersen, an assistant professor of marketing at the University of Scranton.

“However, as behavioral scientists, our main interest was the impact of forming a merger between two airlines on the perception and value assessment of consumers. It is important for managers to understand how their decisions to integrate their operations with another firm can improve service quality and customer satisfaction, which in turn, will lead to a better corporate image and increase in sales.”

“Therefore, we tried to conduct an empirical study by surveying passengers in two phases – before and after the formation of an airline merger.”

Prior to the merger, United Airlines was rated as having the worst customer satisfaction among US airlines, while Continental Airlines was rated as second best. The researchers found that the biggest differences in service quality between United Airlines and Continental Airlines before the merger was related to ground services, such as check-ins, the boarding processes, and baggage handling.

In the first three years of post‐merger United Airlines, Andersen and his colleague observed an increase in customer satisfaction, which was associated with an improvement in the level of service quality.

The findings were based on 186 passengers who were surveyed between 2011 and 2015 while traveling through three airports in the United States. Sixty-three passengers were surveyed from the pre-merger United Airlines, 63 passengers from Continental Airlines, and 60 passengers from the post-merger United Airlines.

Google News Preferences Add PsyPost to your preferred sources

“The result of such study is mainly useful for managers who need to make strategic decisions regarding mergers,” Andersen told PsyPost.

“However, consumers and industry experts may also be interested in realizing how a merger can help the company improve the quality of its services through synergy. Of course, a successful merger will be the one in which at least one firm has a better reputation for quality services, or if both firms have some strengths and resources that enable the merger to achieve greater performance and better satisfaction ratings.”

The study — like all research — has some limitations. In particular, the researchers noted that the study would have benefitted from a larger sample of airline passengers.

“The previous experience of mergers in auto industry has shown that many mergers failed because of cultural difference between the managers or employees of the two firms. However, this issue arises only if the two companies belong to different countries,” Andersen noted.

“As our study was about domestic airlines, such a threat may not be relevant. Nevertheless, researchers may be interested in studying what will happen if two airlines from different countries decide to form a merger. For example, how about if Air Asia, which is the most successful low-cost airline in the world forms a merger with an American firm such as Southwest or JetBlue?”

Andersen also said there was a need for more practical research on issues like business mergers.

“I would like to invite my academic colleagues around the world to expand their research from merely theoretical frameworks to more practical areas. Although developing theories and models is a critical role of research, we need to have insights for managers and decision makers,” he explained.

“Marketing is a profession that relies on managerial art, marketing science, and technology. So, we should apply scientific methods to create objective explanations helpful in making better managerial decisions.”

The study, “The Effects of Airline Mergers on Consumers’ Perceptions of Services and Behavioral Responses“, was authored by Peter Andersen and Fei L. Weisstein.

TweetSendScanShareSendPinShareShareShareShareShare

Follow PsyPost

The latest research, however you prefer to read it.

Daily newsletter

One email a day. The newest research, nothing else.

Google News

Get PsyPost stories in your Google News feed.

Add PsyPost to Google News
RSS feed

Use your favorite reader.

Copy RSS URL
Social media
Support independent science journalism

Ad-free reading, full archives, and weekly deep dives for members.

Become a member

Trending

  • Study finds unpredictable childhood environments are linked to borderline personality traits in adulthood
  • Is intelligence related to happiness?
  • Anti-democratic attitudes are highly contagious, new psychology study finds
  • How the brain shifts gears to appreciate the beauty of poetry
  • Unpredictable preferences, not flawed learning, drive social misunderstandings in autism

Science of Money

  • Do glowing words really sell? An economist finds a small but real puffery effect on Airbnb
  • Error tolerance: entrepreneurship booster or societal risk?
  • What CrossFit reveals about how brands really earn loyalty
  • Do we overestimate how much a raise will improve our lives? A new experiment says yes
  • A new look at Social Security’s “windfall to the initial old”

Recent

  • Jealousy increases men’s support for feminine honor norms, study finds
  • Prenatal THC exposure drives teenage binge drinking in female rats
  • Socioeconomic status shapes brain networks in different ways for boys and girls
  • Mentalizing ability appears to serve as a link between insecure attachment and hypersexual behavior
  • Mapping the dark triad: Which countries have the most narcissistic and manipulative populations?
  • Relying on reminders could be weakening your memory skills
  • Financial infidelity imbalances appear to hurt both relationship and financial health
  • New psychology research reveals the “Goldilocks rule” of online dating profiles
  • NoAIphobia: The surprising new anxiety linked to AI use on college campuses
  • Scientists claim to have found distinct brain activity during “medium” trances

PsyPost is a psychology and neuroscience news website dedicated to reporting the latest research on human behavior, cognition, and society. (READ MORE...)

  • Mental Health
  • Neuroimaging
  • Personality Psychology
  • Social Psychology
  • Artificial Intelligence
  • Cognitive Science
  • Psychopharmacology
  • Contact us
  • Disclaimer
  • Privacy policy
  • Terms and conditions
  • Do not sell my personal information

(c) PsyPost Media Inc

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Subscribe
  • My Account
  • Cognitive Science Research
  • Mental Health Research
  • Social Psychology Research
  • Drug Research
  • Relationship Research
  • About PsyPost
  • Contact
  • Privacy Policy

(c) PsyPost Media Inc