Search results for: customer e-satisfaction
150 Challenges in Achieving Profitability for MRO Companies in the Aviation Industry: An Analytical Approach
Authors: Nur Sahver Uslu, Ali̇ Hakan Büyüklü
Abstract:
Maintenance, Repair, and Overhaul (MRO) costs are significant in the aviation industry. On the other hand, companies that provide MRO services to the aviation industry but are not dominant in the sector, need to determine the right strategies for sustainable profitability in a competitive environment. This study examined the operational real data of a small medium enterprise (SME) MRO company where analytical methods are not widely applied. The company's customers were divided into two categories: airline companies and non-airline companies, and the variables that best explained profitability were analyzed with Logistic Regression for each category and the results were compared. First, data reduction was applied to the transformed variables that went through the data cleaning and preparation stages, and the variables to be included in the model were decided. The misclassification rates for the logistic regression results concerning both customer categories are similar, indicating consistent model performance across different segments. Less profit margin is obtained from airline customers, which can be explained by the variables part description, time to quotation (TTQ), turnaround time (TAT), manager, part cost, and labour cost. The higher profit margin obtained from non-airline customers is explained only by the variables part description, part cost, and labour cost. Based on the two models, it can be stated that it is significantly more challenging for the MRO company, which is the subject of our study, to achieve profitability from Airline customers. While operational processes and organizational structure also affect the profit from airline customers, only the type of parts and costs determine the profit for non-airlines.Keywords: aircraft, aircraft components, aviation, data analytics, data science, gini index, maintenance, repair, and overhaul, MRO, logistic regression, profit, variable clustering, variable reduction
Procedia PDF Downloads 35149 Reality Shock Affecting the Motivation to Work of New Flight Attendants: An Exploratory Qualitative Study of Flight Attendants Who Left Their Jobs Early
Authors: Hiromi Takafuji
Abstract:
Flight attendant:FA is one of popular occupation, especially in Asian countries, and the decision to be hired is made after clearing a high multiplier. On the other hand, immediately after joining the company, they experience unique stress due to the fact that the organization requires them to perform security and customer service duties in a highly specialized and limited space and time. As a result, despite the high level of difficulty in joining the company, many new recruits retire early at a high rate. It is commonly said that 30% of new graduates leave the company within three years in Japan and speculated that Reality Shock:RS is one of the causes of this. RS is that newcomers experience refers to the stress caused by the difference between pre-employment expectations and post-employment reality. The purpose of this study was to elucidate the mechanism by which the expertise required of new FA and the expectation of expertise held by each of them cause reality shock, which affects motivation and the decision to leave. This study identified the professionalism required of new FA and the impact of that expectation for professionalism on RS through an exploratory study of the experiences and psychological processes of FA who left within three years. Semi-structured in-depth interviews were conducted with five FA who left a major Japanese airline at an early stage, and their experiences were categorized, integrated, and classified by qualitative content analysis. They were chosen under a number of controlled conditions. Then two major findings emerged: first, that pre-employment expectations defining RS were hierarchical, and second, that training amplified expectations of professionalism, which strongly influenced early turnover. From these, this study generated a model of RS generative process model of FA that expectations are hierarchical and influential. This could contribute to the prevention of mental health deterioration by reality shock among new FA.Keywords: reality shock, flight attendant, early turnover, qualitative study
Procedia PDF Downloads 82148 Building Successful Organizational Business Communication and Its Impact on Business Performance: An Intra- and Inter-Organizational Perspective
Authors: Aynura Valiyeva, Basil John Thomas
Abstract:
Intra-firm communication is critical for building synergy amongst internal business units of a firm, where employees from various functional departments and ranks incorporate their decision-making, understanding of organizational objectives, as well as common norms and culture for better organizational effectiveness. This study builds on and assesses a framework of the causes and consequences of effective communication in business interactions between customer and supplier firms, and the path for efficient communication within a firm. The proposed study’s structural equation modeling (SEM) analysis based on 352 sample responses collected from firm representatives at different job positions ranging from marketing to logistics operations, reveals that, in the frame of reference of intra-organizational communication, organization characteristics and shared values, top management support and style of leadership, as well as information technology, are all significantly related to communication effectiveness. Furthermore, the frequency and variety of interactions enhance the outcome of communication, that improves a company’s performance. The results reveal that cultural factors are significantly related to communication effectiveness, as well as the shared beliefs and goals. In terms of organizational factors, leadership style, top management support and information technology are significant determinants of effective communication. Among the contextual factors, interaction frequency and diversity are found to be priority factors. This study also tests the relationship between supplier and supplier firm performance in the context of communication effectiveness, and finds that they are closely related, when trust and commitment is built between business partners. When firms do business in other multicultural contexts, language and shared values with destination country must be considered significant elements of communication process.Keywords: business performance, intra-firm communication, inter-firm communication, structural equation modeling
Procedia PDF Downloads 99147 The Impact of Access to Finances on Survival of Small and Medium Enterprises: The South African Perspective in an Covid-19 Era
Authors: Thabiso Sthembiso Msomi
Abstract:
SMEs are the main engine of growth in most developing economies. One of the main factors that hinder the development of SME is access to finance. In this study, we explored the factors that hinder the growth and survival of SMEs in South Africa. The capital structure theory formed the theoretical underpinning for the study. The quantitative research design was adopted and data was collected from retail, construction, manufacturing and agriculture sectors of SMEs within the KwaZulu-Natal province of South Africa. The modified version of the Cochran formula was used to determine the sample size as 321 SMEs and analysed using the five-point Likert scale. The purposive sampling technique was used to select owners of SME. Statistical Package for the Social Sciences (SPSS) was used for the data analysis through Exploratory Factor Analysis (EFA) to determine the factor structures of items employed to measure each of the constructs in this study. Then, the Cronbach’s alpha test was conducted to determine the reliability of each construct. Kaiser-Meyer-Olkin (KMO) was used to determine the adequacy of the sample size. Linear regression was done to determine the effect of the independent variables on the dependent variable. The findings suggest that the main constraints facing South African SMEs were the lack of experienced management. Furthermore, the SMEs would fail to raise customer awareness of their products and services, which in turn affects their market access and monthly turnover. The study recommends that SMEs keep up-to-date records of business transactions to enable the business to keep track of its operations. The study recommends that South African banks adopt an SME accounting and bookkeeping program. The finding of this study benefits policymakers in both the private and public sectors.Keywords: small businesses, access to finances, COVID-19, SMEs survival
Procedia PDF Downloads 178146 Investigate the Current Performance of Burger King Ho Chi Minh City in Terms of the Controllable Variables of the Overall Retail Strategy
Authors: Nhi Ngoc Thien
Abstract:
Franchising is a popular trend in Vietnam retail industry, especially in fast food industry. Several famous foreign fast food brands such as KFC, Lotteria, Jollibee or Pizza Hut invested on this potential market since the 1990s. Following this trend, in 2011, Burger King - the second largest fast food hamburger chain all over the world - entered Vietnam with its first store located in Tan Son Nhat International Airport, with the expectation to become the leading brand in the country. However, the business performance of Burger King was not going well in the first few years making it questioned about its strategy. The given assumption was that its business performance was affected negatively by its store location selection strategy. This research aims to investigate the current performance of Burger King Vietnam in terms of the controllable variables like store location as well as to explore the key factors influencing customer decision to choose Burger King. Therefore, a case study research method was conducted to approach deeply on the opinions and evaluations of 10 Burger King’s customers, Burger King's staffs and other fast food experts on Burger King’s performance through in-depth interview, direct observation and documentary analysis. Findings show that there are 8 determinants affecting the decision-making of Burger King’s customers, which are store location, quality of food, service quality, store atmosphere, price, promotion, menu and brand reputation. Moreover, findings present that Burger King’s staffs and fast food experts also mentioned the main problems of Burger King, which are about store location and food quality. As a result, there are some recommendations for Burger King Vietnam to improve its performance in the market and attract more Vietnamese target customers by giving suitable promotional activities among its customers and being differentiated itself from other fast food brands.Keywords: overall retail strategy, controllable variables, store location, quality of food
Procedia PDF Downloads 345145 Crafting a Livelihood: A Story of the Kotpad Dyers and Weavers
Authors: Anahita Suri
Abstract:
Craft -an integral part of the conduit to create something beautiful- is a visual representation of the human imagination given life through the hand. The Mirgan tribe in the Naxalite infested forests of Koraput, Odisha are not exempt from this craving for beauty. These skilled craftsmen dye and weave the simple yet sophisticated Kotpad textiles. The women undertake the time-consuming task of dyeing the cotton and silk yarns with the root of the aul tree. The men then weave these yarns into beautiful sarees and dupattas. The root of the aul tree lends the textile its maroon to brown color, which is offset against the unbleached cotton to create a minimalist and distinctive look. The motifs, incorporated through the extra weft technique, reflect the rich tribal heritage of the community. This is an eco-friendly, non-toxic textile. Kotpad fabrics were on the verge of extinction due to various factors like poor infrastructure, no innovation in traditional designs/products, customer ignorance leading to low demand. With livelihood opportunities through craft slowly dwindling, artisans were moving to alternative sources of income generation, like agriculture and daily wage labor. There was an urgent need for intervention to revive the craft, spread awareness about them in urban spaces, and strengthen the artisan’s ability to innovate and create. Recent efforts by government bodies and local designers have given Kotpad handloom a contemporary look without diluting its essence. This research explores the possibilities to leverage Kotpad handloom to find a place in the dynamic culture of the world by its promotion among different target groups and incorporating self-sustaining practices for the artisans. This could further encourage a space for handmade and handcrafted art, rich with stories about India, with a contemporary visual sensibility. This will strengthen environmental and ethical sustainability.Keywords: craft, contemporary, handloom, natural dye, tribal
Procedia PDF Downloads 147144 Passenger Preferences on Airline Check-In Methods: Traditional Counter Check-In Versus Common-Use Self-Service Kiosk
Authors: Cruz Queen Allysa Rose, Bautista Joymeeh Anne, Lantoria Kaye, Barretto Katya Louise
Abstract:
The study presents the preferences of passengers on the quality of service provided by the two airline check-in methods currently present in airports-traditional counter check-in and common-use self-service kiosks. Since a study has shown that airlines perceive self-service kiosks alone are sufficient enough to ensure adequate services and customer satisfaction, and in contrast, agents and passengers stated that it alone is not enough and that human interaction is essential. In reference with former studies that established opposing ideas about the choice of the more favorable airline check-in method to employ, it is the purpose of this study to present a recommendation that shall somehow fill-in the gap between the conflicting ideas by means of comparing the perceived quality of service through the RATER model. Furthermore, this study discusses the major competencies present in each method which are supported by the theories–FIRO Theory of Needs upholding the importance of inclusion, control and affection, and the Queueing Theory which points out the discipline of passengers and the length of the queue line as important factors affecting quality service. The findings of the study were based on the data gathered by the researchers from selected Thomasian third year and fourth year college students currently enrolled in the first semester of the academic year 2014-2015, who have already experienced both airline check-in methods through the implication of a stratified probability sampling. The statistical treatments applied in order to interpret the data were mean, frequency, standard deviation, t-test, logistic regression and chi-square test. The final point of the study revealed that there is a greater effect in passenger preference concerning the satisfaction experienced in common-use self-service kiosks in comparison with the application of the traditional counter check-in.Keywords: traditional counter check-in, common-use self-service Kiosks, airline check-in methods
Procedia PDF Downloads 407143 Developing a Sustainable Business Model for Platform-Based Applications in Small and Medium-Sized Enterprise Sawmills: A Systematic Approach
Authors: Franziska Mais, Till Gramberg
Abstract:
The paper presents the development of a sustainable business model for a platform-based application tailored for sawing companies in small and medium-sized enterprises (SMEs). The focus is on the integration of sustainability principles into the design of the business model to ensure a technologically advanced, legally sound, and economically efficient solution. Easy2IoT is a research project that aims to enable companies in the prefabrication sheet metal and sheet metal processing industry to enter the Industrial Internet of Things (IIoT) with a low-threshold and cost-effective approach. The methodological approach of Easy2IoT includes an in-depth requirements analysis and customer interviews with stakeholders along the value chain. Based on these insights, actions, requirements, and potential solutions for smart services are derived. The structuring of the business ecosystem within the application plays a central role, whereby the roles of the partners, the management of the IT infrastructure and services, as well as the design of a sustainable operator model are considered. The business model is developed using the value proposition canvas, whereby a detailed analysis of the requirements for the business model is carried out, taking sustainability into account. This includes coordination with the business model patterns, according to Gassmann, and integration into a business model canvas for the Easy2IoT product. Potential obstacles and problems are identified and evaluated in order to formulate a comprehensive and sustainable business model. In addition, sustainable payment models and distribution channels are developed. In summary, the article offers a well-founded insight into the systematic development of a sustainable business model for platform-based applications in SME sawmills, with a particular focus on the synergy of ecological responsibility and economic efficiency.Keywords: business model, sustainable business model, IIoT, IIoT-platform, industrie 4.0, big data
Procedia PDF Downloads 86142 Employing Artificial Intelligence Tools in Making Clothing Designs Inspired by the Najdi Art of Sadu
Authors: Basma Abdel Mohsen Al-Sheikh
Abstract:
This study aimed to create textile designs inspired by Najdi Al-Sadu art, with the objective of highlighting Saudi identity and heritage. The research proposed clothing designs for women and children, utilizing textiles inspired by Najdi Al-Sadu art, and incorporated artificial intelligence techniques in the design process. The study employed a descriptive-analytical approach to describe Najdi Al-Sadu, and an experimental method involving the creation of textile designs inspired by Al-Sadu. The study sample consisted of 33 participants, including experts in the fashion and textile industry, fashion designers, lecturers, professors, and postgraduate students from King Abdulaziz University. A questionnaire was used as a tool to gather opinions regarding the proposed designs. The results demonstrated a clear acceptance of the designs inspired by Najdi Al-Sadu and incorporating artificial intelligence, with approval rates ranging from 22% to 81% across different designs. The study concluded that artificial intelligence applications have a significant impact on fashion design, particularly in the integration of Al-Sadu art. The findings also indicated a positive reception of the designs in terms of their aesthetic and functional aspects, although individual preferences led to some variations in opinions. The results highlighted a demand for designs that combine heritage and modern fashion, striking a balance between authenticity and contemporary style. The study recommended that designers continue to explore ways to integrate cultural heritage, such as Al-Sadu art, with contemporary design elements to achieve this balance. Furthermore, it emphasized the importance of enhancing the aesthetic and functional aspects of designs, taking into consideration the preferences of the target market and customer expectations. The effective utilization of artificial intelligence was also emphasized to improve design processes, expand creative possibilities, and foster innovation and authenticity.Keywords: Najdi Al-Sadu art, artificial intelligence, women's and children's fashion, clothing designs
Procedia PDF Downloads 76141 The Study of Tourists’ Behavior in Water Usage in Hotel Business: Case Study of Phuket Province, Thailand
Authors: A. Pensiri, K. Nantaporn, P. Parichut
Abstract:
Tourism is very important to the economy of many countries due to the large contribution in the areas of employment and income generation. However, the rapid growth of tourism can also be considered as one of the major uses of water user, and therefore also have a significant and detrimental impact on the environment. Guest behavior in water usage can be used to manage water in hotels for sustainable water resources management. This research presents a study of hotel guest water usage behavior at two hotels, namely Hotel A (located in Kathu district) and Hotel B (located in Muang district) in Phuket Province, Thailand, as case studies. Primary and secondary data were collected from the hotel manager through interview and questionnaires. The water flow rate was measured in-situ from each water supply device in the standard room type at each hotel, including hand washing faucets, bathroom faucets, shower and toilet flush. For the interview, the majority of respondents (n = 204 for Hotel A and n = 244 for Hotel B) were aged between 21 years and 30 years (53% for Hotel A and 65% for Hotel B) and the majority were foreign (78% in Hotel A, and 92% in Hotel B) from American, France and Austria for purposes of tourism (63% in Hotel A, and 55% in Hotel B). The data showed that water consumption ranged from 188 litres to 507 liters, and 383 litres to 415 litres per overnight guest in Hotel A and Hotel B (n = 244), respectively. These figures exceed the water efficiency benchmark set for Tropical regions by the International Tourism Partnership (ITP). It is recommended that guest water saving initiatives should be implemented at hotels. Moreover, the results showed that guests have high satisfaction for the hotels, the front office service reveal the top rates of average score of 4.35 in Hotel A and 4.20 in Hotel B, respectively, while the luxury decoration and room cleanliness exhibited the second satisfaction scored by the guests in Hotel A and B, respectively. On the basis of this information, the findings can be very useful to improve customer service satisfaction and pay attention to this particular aspect for better hotel management.Keywords: hotel, tourism, Phuket, water usage
Procedia PDF Downloads 257140 Attracting the North Holidaymaker to Ireland Using Social Media Channels: An Irish Marketing Strategy
Authors: Colm Barcoe, Garvan Whelan
Abstract:
In tourism, engagement has been found to boost awareness of a destination and subsequently increase visits. Customer engagement in this industry is now facilitated by social media. This phenomenon is not very well researched in relation to Ireland and the North American tourism market. The objective of this paper is to present research findings on two related topics; the first is an investigation into the effectiveness of social media channels as components of a digital marketing campaign when promoting Ireland as a brand in North America. Secondly, this study reveals how Irish marketers have embraced social media platforms and channels with an innovative strategy that has successfully attracted growing numbers of US and Canadian holidaymakers to Ireland. A range of methodological approaches was applied in order to achieve the study’s objective. The methods used were both quantitative and qualitative, and the data was obtained from both Irish marketers and North American holidaymakers. Surveys of these holidaymakers in the pre, during and post-trip phases revealed their attitudes towards social media and Ireland as a destination. Semi-structured interviews with those responsible for implementing relationship marketing strategies for this segment provide insight into the effectiveness of social media when used to capitalise on the cultural link between Ireland and North America. Further analysis involved using Nvivo 11+ software to investigate the activities of the Irish destination marketer (DMO) and the engagement of the US and Canadian audiences through a detailed study of social media platform content. The findings from this investigation will extend an under-researched body of literature pertaining to Ireland as a destination and the successful digital marketing campaigns that have achieved exponential growth in this sector over the past five years. The empirical evidence presented also illustrates how the innovative use of social media has assisted the DMO to engage with the North American holidaymaker as part of an effective digital marketing strategy.Keywords: channels, digital, engagement, marketing, strategies
Procedia PDF Downloads 158139 A Multi-Agent System for Accelerating the Delivery Process of Clinical Diagnostic Laboratory Results Using GSM Technology
Authors: Ayman M. Mansour, Bilal Hawashin, Hesham Alsalem
Abstract:
Faster delivery of laboratory test results is one of the most noticeable signs of good laboratory service and is often used as a key performance indicator of laboratory performance. Despite the availability of technology, the delivery time of clinical laboratory test results continues to be a cause of customer dissatisfaction which makes patients feel frustrated and they became careless to get their laboratory test results. The Medical Clinical Laboratory test results are highly sensitive and could harm patients especially with the severe case if they deliver in wrong time. Such results affect the treatment done by physicians if arrived at correct time efforts should, therefore, be made to ensure faster delivery of lab test results by utilizing new trusted, Robust and fast system. In this paper, we proposed a distributed Multi-Agent System to enhance and faster the process of laboratory test results delivery using SMS. The developed system relies on SMS messages because of the wide availability of GSM network comparing to the other network. The software provides the capability of knowledge sharing between different units and different laboratory medical centers. The system was built using java programming. To implement the proposed system we had many possible techniques. One of these is to use the peer-to-peer (P2P) model, where all the peers are treated equally and the service is distributed among all the peers of the network. However, for the pure P2P model, it is difficult to maintain the coherence of the network, discover new peers and ensure security. Also, security is a quite important issue since each node is allowed to join the network without any control mechanism. We thus take the hybrid P2P model, a model between the Client/Server model and the pure P2P model using GSM technology through SMS messages. This model satisfies our need. A GUI has been developed to provide the laboratory staff with the simple and easy way to interact with the system. This system provides quick response rate and the decision is faster than the manual methods. This will save patients life.Keywords: multi-agent system, delivery process, GSM technology, clinical laboratory results
Procedia PDF Downloads 250138 Application of Integrated Marketing Communications-Multiple, Case Studies
Authors: Yichen Lin, Hsiao-Han Chen, Chi-Chen Jan
Abstract:
Since 1990, the research area of Integrated Marketing Communications (IMC) has been presented from a different perspective. With advances in information technology and the rise of consumer consciousness, businesses are in a competitive environment. There is an urgent need to adopt more profitable and effective integrated marketing strategies to increase core competitiveness. The goal of the company's sustainable management is to increase consumers' willingness to purchase and to maximize profits. This research uses six aspects of IMC, which includes awareness integration, unified image, database integration, customer-based integration, stakeholders-based integration, and evaluation integration to examine the role of marketing strategies in the strengths and weaknesses of the six components of integrated marketing communications, their effectiveness, the most important components and the most important components that need improvement. At the same time, social media such as FaceBook, Instagram, Youtube, Line, or even TikTok have become marketing tools which firms adopt them more and more frequently in the marketing strategy. In the end of 2019, the outbreak of COVID-19 did really affect the global industries. Lockdown policies also accelerated closure of brick-mentor stores worldwide. Online purchases rose dramatically. Hence, the effectiveness of online marketing will be essential to maintain the business. This study uses multiple-case studies to extend the effects of social media and IMC. Moreover, the study would also explore the differences of social media and IMC during COVID-19. Through literature review and multiple-case studies, it is found that using social media combined with IMC did really help companies expand their business and make good connections with stakeholders. One of previous studies also used system theory to explore the interrelationship among Integrated Marketing Communication, collaborative marketing, and global brand building. Even during pandemic, firms could still maintain the operation and connect with their customers more tightly.Keywords: integration marketing communications, multiple-case studies, social media, system theory
Procedia PDF Downloads 232137 Financial Performance Model of Local Economic Enterprises in Matalam, Cotabato
Authors: Kristel Faye Tandog
Abstract:
The State Owned Enterprise (SOE) or also called Public Enterprise (PE) has been playing a vital role in a country’s social and economic development. Following this idea, this study focused on the Factor Structures of Financial Performance of the Local Economic Enterprises (LEEs) namely: Food Court, Market, Slaughterhouse, and Terminal in Matalam, Cotabato. It aimed to determine the profile of the LEEs in terms of organizational structure, manner of creation, years in operation, source of initial operating requirements, annual operating budget, geographical location, and size or description of the facility. This study also included the different financial ratios of LEE that covered a five year period from Calendar Year 2009 to 2013. Primary data using survey questionnaire was administered to 468 respondents and secondary data were sourced out from the government archives and financial documents of the said LGU. There were 12 dominant factors identified namely: “management”, “enforcement of laws”, “strategic location”, “existence of non-formal competitors”, “proper maintenance”, “pricing”, “customer service”, “collection process”, “rentals and services”, “efficient use of resources”, “staffing”, and “timeliness and accuracy”. On the other hand, the financial performance of the LEE of Matalam, Cotabato using financial ratios needs reformatting. This denotes that refinement as to the following ratios: Cash Flow Indicator, Activity, Profitability and Growth is necessary. The cash flow indicator ratio showed difficulty in covering its debts in successive years. Likewise, the activity ratios showed that the LEE had not been effective in putting its investment at work. Moreover, profitability ratios revealed that it had operated in minimum capacity and had incurred net losses and thus, it had a weak profit performance. Furthermore, growth ratios showed that LEE had a declining growth trend particularly in net income.Keywords: factor structures, financial performance, financial ratios, state owned enterprises
Procedia PDF Downloads 256136 Queuing Analysis and Optimization of Public Vehicle Transport Stations: A Case of South West Ethiopia Region Vehicle Stations
Authors: Mequanint Birhan
Abstract:
Modern urban environments present a dynamically growing field where, notwithstanding shared goals, several mutually conflicting interests frequently collide. However, it has a big impact on the city's socioeconomic standing, waiting lines and queues are common occurrences. This results in extremely long lines for both vehicles and people on incongruous routes, service coagulation, customer murmuring, unhappiness, complaints, and looking for other options sometimes illegally. The root cause of this is corruption, which leads to traffic jams, stopping, and packing vehicles beyond their safe carrying capacity, and violating the human rights and freedoms of passengers. This study focused on the optimizing time of passengers had to wait in public vehicle stations. This applied research employed both data gathering sources and mixed approaches, then 166 samples of key informants of transport station were taken by using the Slovin sampling formula. The length of time vehicles, including the drivers and auxiliary drivers ‘Weyala', had to wait was also studied. To maximize the service level at vehicle stations, a queuing model was subsequently devised ‘Menaharya’. Time, cost, and quality encompass performance, scope, and suitability for the intended purposes. The minimal response time for passengers and vehicles queuing to reach their final destination at the stations of the Tepi, Mizan, and Bonga towns was determined. A new bus station system was modeled and simulated by Arena simulation software in the chosen study area. 84% improvement on cost reduced by 56.25%, time 4hr to 1.5hr, quality, safety and designed load performance calculations employed. Stakeholders are asked to put the model into practice and monitor the results obtained.Keywords: Arena 14 automatic rockwell, queue, transport services, vehicle stations
Procedia PDF Downloads 79135 Corporate Social Responsibility as a Determinant of Sustainability of SME: A Study of House of Tara, a Small Business Operating in Nigeria
Authors: Bolanle Deborah Motilewa, E. K. Rowland Worlu, Gbenga Mayowa Agboola, Ayodele Maxwell Olokundun
Abstract:
In the pursuit of profit maximization as a major objective of business organizations, several firms forfeit their social and economic responsibility whilst focusing on activities that are deemed to solely profit the firm, without taking into cognizance the effect of their operations on the society in which they operate. Business analysts have, however, realized the determinant role of social responsibility in corporate performance, such that firms that are able to imbibe corporate social responsibility in their core business operations may be able to take advantage of the social reputation gained across their several stakeholders. Small and medium enterprises operating in highly competitive markets are also advised to leverage on this reputation gained from being socially responsible, if they seek ways to remain relevant in the same markets dominated by multinational corporations. Adapting a case study approach, this study highlights the advantages (such as employee and customer loyalty) gained by House of Tara, a small business operating in the beauty and make-up industry in Nigeria, resulting from the firm’s commitment to advancing the society in which it operates through several social responsibility activities. It is observed that although competing with major makeup brands such as MAC, Maybelline, Dior, Mary Kay and others, House of Tara has been able to not only thrive, but gain a sizeable market in the Nigerian makeup industry, because several consumers purchase their products not solely because of the quality or price of their product, but because they perceive themselves as buying into the firm’s CSR vision. This study, therefore, recommends that small and medium enterprises that may lack adequate resources (manpower, technology, capital) needed to successfully compete with multinationals, can harness the potentials in the reputation and loyalty gained from adequate investment in corporate social responsibility.Keywords: corporate social responsibility, small and medium enterprises, House of Tara, sustainability
Procedia PDF Downloads 274134 Investigating the Role and Position of Tuka Sabz Manufacturing Service Company in Supplying Human Resources to Mobarakeh Steel Company
Authors: Mohammad Abbas Nejad
Abstract:
Tuka Sabz service production company (private shares), with more than 30 years of history, is considered as one of the first holding companies of Tuka Foulad, which takes steps in the direction of increasing service quality and customer satisfaction. Manpower supply is one of the most important activities of Tuka Sabz company, in addition to car supply services; light and heavy transportation services; management of entertainment, sports, tourism and accommodation centers; design, creation and maintenance services of land space; preparing, cooking, distributing and serving all kinds of personal and ceremonial foods; design, construction, repair and reconstruction of non-industrial buildings; industrial laundry services; public and industrial cleaning services are also among other activities of Tuka Sabz. This company has a high capacity of specialized and committed human resources as the main pillar of its success and spent most of its years of activity in Mobarakeh steel company as one of the reliable contractors in the field of automotive service contracts, green space, industrial cleaning, management cultural, recreational and tourism places, consulting, maintenance and repair of buildings and facilities, industrial laundry, management of cooking centers and personnel transportation. The final result of this article states that Tuka Sabz company is trying to get the satisfaction of three main groups of stakeholders, i.e., employees, customers, and shareholders, for this purpose, by improving the competence and competence of employees, trying to establish a system of meritocracy and respecting the human status of employees. On the one hand, the implementation of quality management and assurance to employers with the timely and favorable implementation of contracts takes a step in this direction.Keywords: Mubarakeh steel company, Tuka Sabz company, human resources, industrial laundry services
Procedia PDF Downloads 60133 Corporate Social Responsibility for Multinational Enterprises to Gain Incomparable Advantage on the Long Run without Competition
Authors: Fatima Homor
Abstract:
The new era in business has started, according to my research paper findings, corporate social responsibility leads organizations to an incomparable advantage phase, where competition is secondary and financial growth is a result. Those who join later, lose their active advantage and cause passive disadvantage for their organizations. The main purpose of this presentation is to state the obvious and shed the light of the advantages of doing good, while doing well for multinational enterprises, extremely low fluctuation (preventing one of the highest costs), significantly lower marketing budget, enhanced reputation causing customer and supplier loyalty, employee commitment results in higher motivation level leading to better quality at each stages, Corporate Social Responsibility brings Unique Selling Proposition incomparable to others. The paper is based on a large research work conducted for the University of Liverpool Masters in Business Administration program, with the title of Corporate Social Responsibility for Multinational Enterprises to gain incomparable advantage. The research is based on both recent secondary data, but most importantly on 25 interviews with Chief Executive Officers at Multinational Enterprises and / or the Human Resources / corporate communications directors. The direct gains on Corporate Social Responsibility are analyzed when it is embedded into the core of the business. It is evident that project based Corporate Social Responsibility is not effective neither from the supported topic, Non-governmental Organizations point of view nor from the organization’s long-term sustainability point of view. Surveys have been conducted, data compared and consequences drawn. Corporate Social Responsibility must be started inside of the business to strengthen it. First, commit employees. It must come from the Chief Executive Officer. It must be related to the business profile. It has to be long term. They will commit customers. B-corps are coming (e.g. Unilever); the phenomenon of social enterprises has become a leading one.Keywords: B-corps, embedded into core business, first inside, unique advantage
Procedia PDF Downloads 207132 Management of Small-Scale Companies in Nigeria. Case Study of Problems Faced by Entrepreneurs
Authors: Aderemi, Moses Aderibigbe
Abstract:
The supply chain of a manufacturing company can be classified into three categories, namely: 1) supplier chain, these are a network of suppliers of raw materials, machinery, and other requirements for daily operations for the company; 2) internal chain, which are departmental or functional relationships within the organization like production, finance, marketing, logistic and quality control departments all interacting together to achieve the goals and objective of the company; and 3) customer chain; these are networks used for products distribution to the final consumer which includes the product distributors and retailers in the marketplace as may be applicable. In a developing country like Nigeria, where government infrastructures are poor or, in some cases, none in existence, the survival of a small-scale manufacturing company often depends on how effectively its supply chain is managed. In Nigeria, suppliers of machinery and raw materials to most manufacturing companies are from low-cost but high-tech countries like China or India. The problem with the supply chain from these countries apart from the language barrier between these countries and Nigeria, is also that of product quality and after-sales support services. The internal chain also requires funding to employ an experienced and trained workforce to deliver the company’s goals and objectives effectively and efficiently, which is always a challenge for small-scale manufacturers, including product marketing. In Nigeria, the management of the supply chain by small-scale manufacturers is further complicated by unfavourable government policies. This empirical research is a review and analysis of the supply chain management of a small-scale manufacturing company located in Lagos, Nigeria. The company's performance for the past five years has been on the decline and company management thinks there is a need for a review of its supply chain management for business survival. The company’s supply chain is analyzed and compared with best global practices in this research, and recommendations are made to the company management. The research outcome justifies the company’s need for a strategic change in its supply chain management for business sustainability and provides a learning point to small-scale manufacturing companies from developing countries in AfricaKeywords: management, small scale, supply chain, companies, leaders
Procedia PDF Downloads 26131 Double Row Taper Roller Bearing Wheel-end System in Rigid Rear Drive Axle in Heavy Duty SUV Passenger Vehicle
Authors: Mohd Imtiaz S, Saurabh Jain, Pothiraj K.
Abstract:
In today’s highly competitive passenger vehicle market, comfortable driving experience is one of the key parameters significantly weighed by the customer. Smooth ride and handling of the vehicle with exceptionally reliable wheel end solution is a paramount requirement in passenger Sports Utility Vehicle (SUV) vehicles subjected to challenging terrains and loads with rigid rear drive axle configuration. Traditional wheel-end bearing systems in passenger segment rigid rear drive axle utilizes the semi-floating layout, which imparts vertical bending loads and torsion to the axle shafts. The wheel-end bearing is usually a Single or Double Row Deep-Groove Ball Bearing (DRDGBB) or Double Row Angular Contact Ball Bearing (DRACBB). This solution is cost effective and simple in architecture. However, it lacks effectiveness against the heavy loads subjected to a SUV vehicle, especially the axial trust at high-speed cornering. This paper describes the solution of Double Row Taper Roller Bearing (DRTRB) wheel-end for a SUV vehicle in the rigid rear drive axle and improvement in terms of maximizing its load carrying capacity along with better reliability in terms of axial thrust in high-speed cornering. It describes the advantage of geometry of DRTRB over DRDGBB and DRACBB highlighting contact and load flow. The paper also highlights the vehicle level considerations affecting the B10 life of the bearing system for better selection of the DRTRB wheel-ends systems. This paper also describes real time vehicle level results along with theoretical improvements.Keywords: axial thrust, b10 life, deep-groove ball bearing, taper roller bearing, semi-floating layout.
Procedia PDF Downloads 75130 Use of Transportation Networks to Optimize The Profit Dynamics of the Product Distribution
Authors: S. Jayasinghe, R. B. N. Dissanayake
Abstract:
Optimization modelling together with the Network models and Linear Programming techniques is a powerful tool in problem solving and decision making in real world applications. This study developed a mathematical model to optimize the net profit by minimizing the transportation cost. This model focuses the transportation among decentralized production plants to a centralized distribution centre and then the distribution among island wide agencies considering the customer satisfaction as a requirement. This company produces basically 9 types of food items with 82 different varieties and 4 types of non-food items with 34 different varieties. Among 6 production plants, 4 were located near the city of Mawanella and the other 2 were located in Galewala and Anuradhapura cities which are 80 km and 150 km away from Mawanella respectively. The warehouse located in the Mawanella was the main production plant and also the only distribution plant. This plant distributes manufactured products to 39 agencies island-wide. The average values and average amount of the goods for 6 consecutive months from May 2013 to October 2013 were collected and then average demand values were calculated. The following constraints are used as the necessary requirement to satisfy the optimum condition of the model; there was one source, 39 destinations and supply and demand for all the agencies are equal. Using transport cost for a kilometer, total transport cost was calculated. Then the model was formulated using distance and flow of the distribution. Network optimization and linear programming techniques were used to originate the model while excel solver is used in solving. Results showed that company requires total transport cost of Rs. 146, 943, 034.50 to fulfil the customers’ requirement for a month. This is very much less when compared with data without using the model. Model also proved that company can reduce their transportation cost by 6% when distributing to island-wide customers. Company generally satisfies their customers’ requirements by 85%. This satisfaction can be increased up to 97% by using this model. Therefore this model can be used by other similar companies in order to reduce the transportation cost.Keywords: mathematical model, network optimization, linear programming
Procedia PDF Downloads 347129 Determining Factors for Opening Accounts, Customers’ Perception and Their Satisfaction Level Towards the First Security Islamic Bank of Bangladesh
Authors: Md. Akiz Uddin
Abstract:
This research attempted to identify the determining factors that extensively persuaded customers of the First Security Islamic Bank Limited (FSIBL) to open accounts and their perception and satisfaction level towards it. Initially, a theoretical model was established based on existing literature reviews. After that, a self-administered structured questionnaire was developed, and data were collected from 180 customers of the FSIBL of Bangladesh using purposive sampling technique. The collected data were later analyzed through a statistical software. Structural Equation Modelling (SEM) was used to verify the model of the study and test the hypotheses. The study particularly examined the determinants of opening accounts, customers’ perception and their satisfaction level towards the bank on several factors like the bank’s compliance with Shariah law, use of modern technology, assurance, reliability, empathy, profitability, and responsiveness. To examine the impact of religious belief on being FSIBL clients, the study also investigates non-Muslim clients’ perception about FSIBL. The study focused on FSIBL customers only from five branches of Dhaka city. The study found that the religious beliefs is the most significant factors for Muslim customers for considering FSIBL to open an account, and they are satisfied with the services, too. However, for non-Muslim customers, other benefits like E-banking, various user-friendly services are the most significant factors for choosing FSIBL. Their satisfaction level is also statistically significant. Furthermore, even if the non- Muslim customers didn’t consider religious beliefs as determinant factors for choosing FSIBL, the respondents informed that they have trust that people who believe in shariah law are more reliable to keep money with them. These findings open up the avenue for future researchers to conduct more study in this area through employing a larger sample size and more branches and extending the current model by incorporating new variables. The study will be an important addition to the potentials of Islamic banking system, literature of service quality and customer satisfaction level, particularly in the success of Islamic banking system in Bangladesh.Keywords: islamic banking, customers’ satisfaction, customers’ perception, shariah law
Procedia PDF Downloads 76128 The Determinants of Co-Production for Value Co-Creation: Quadratic Effects
Authors: Li-Wei Wu, Chung-Yu Wang
Abstract:
Recently, interest has been generated in the search for a new reference framework for value creation that is centered on the co-creation process. Co-creation implies cooperative value creation between service firms and customers and requires the building of experiences as well as the resolution of problems through the combined effort of the parties in the relationship. For customers, values are always co-created through their participation in services. Customers can ultimately determine the value of the service in use. This new approach emphasizes that a customer’s participation in the service process is considered indispensable to value co-creation. An important feature of service in the context of exchange is co-production, which implies that a certain amount of participation is needed from customers to co-produce a service and hence co-create value. Co-production no doubt helps customers better understand and take charge of their own roles in the service process. Thus, this proposal is to encourage co-production, thus facilitating value co-creation of that is reflected in both customers and service firms. Four determinants of co-production are identified in this study, namely, commitment, trust, asset specificity, and decision-making uncertainty. Commitment is an essential dimension that directly results in successful cooperative behaviors. Trust helps establish a relational environment that is fundamental to cross-border cooperation. Asset specificity motivates co-production because this determinant may enhance return on asset investment. Decision-making uncertainty prompts customers to collaborate with service firms in making decisions. In other words, customers adjust their roles and are increasingly engaged in co-production when commitment, trust, asset specificity, and decision-making uncertainty are enhanced. Although studies have examined the preceding effects, to our best knowledge, none has empirically examined the simultaneous effects of all the curvilinear relationships in a single study. When these determinants are excessive, however, customers will not engage in co-production process. In brief, we suggest that the relationships of commitment, trust, asset specificity, and decision-making uncertainty with co-production are curvilinear or are inverse U-shaped. These new forms of curvilinear relationships have not been identified in existing literature on co-production; therefore, they complement extant linear approaches. Most importantly, we aim to consider both the bright and the dark sides of the determinants of co-production.Keywords: co-production, commitment, trust, asset specificity, decision-making uncertainty
Procedia PDF Downloads 188127 Measuring Stakeholder Engagement and Drivers of Success in Ethiopian Tourism Sector
Authors: Gezahegn Gizaw
Abstract:
The FDRE Tourism Training Institute organizes forums for debates, best practices exchange and focus group discussions to forge a sustainable and growing tourism sector while minimizing negative impacts on the environment, communities, and cultures. This study aimed at applying empirical research method to identify and quantify relative importance of success factors and individual engagement indicators that were identified in these forums. Response to the 12-question survey was collected from a total of 437 respondents in academic training institutes (212), business executive and employee (204) and non-academic government offices (21). Overall, capacity building was perceived as the most important driver of success for stakeholder engagement. Business executive and employee category rated capacity building as the most important driver of success (53%), followed by decision-making process (27%) and community participation (20%). Among educators and students, both capacity building and decision-making process were perceived as the most important factors (40% of respondents), whereas community participation was perceived as the most important success factor only by 20% of respondents. Individual engagement score in capacity building, decision-making process and community participation showed highest variability by educational level of participants (variance of 3.4% - 5.2%, p<0.001). Individual engagement score in capacity building was highly correlated to perceived benefit of training on improved efficiency, job security, higher customer satisfaction and self-esteem. On the other hand, individual engagement score in decision making process was highly correlated to its perceived benefit on lowering business costs, improving ability to meet the needs of a target market, job security, self-esteem and more teamwork. The study provides a set of recommendations that help educators, business executives and policy makers to maximize the individual and synergetic effect of training, decision making process on sustainability and growth of the tourism sector in Ethiopia.Keywords: engagement score, driver of success, capacity building, tourism
Procedia PDF Downloads 77126 Methodology for the Integration of Object Identification Processes in Handling and Logistic Systems
Authors: L. Kiefer, C. Richter, G. Reinhart
Abstract:
The uprising complexity in production systems due to an increasing amount of variants up to customer innovated products leads to requirements that hierarchical control systems are not able to fulfil. Therefore, factory planners can install autonomous manufacturing systems. The fundamental requirement for an autonomous control is the identification of objects within production systems. In this approach an attribute-based identification is focused for avoiding dose-dependent identification costs. Instead of using an identification mark (ID) like a radio frequency identification (RFID)-Tag, an object type is directly identified by its attributes. To facilitate that it’s recommended to include the identification and the corresponding sensors within handling processes, which connect all manufacturing processes and therefore ensure a high identification rate and reduce blind spots. The presented methodology reduces the individual effort to integrate identification processes in handling systems. First, suitable object attributes and sensor systems for object identification in a production environment are defined. By categorising these sensor systems as well as handling systems, it is possible to match them universal within a compatibility matrix. Based on that compatibility further requirements like identification time are analysed, which decide whether the combination of handling and sensor system is well suited for parallel handling and identification within an autonomous control. By analysing a list of more than thousand possible attributes, first investigations have shown, that five main characteristics (weight, form, colour, amount, and position of subattributes as drillings) are sufficient for an integrable identification. This knowledge limits the variety of identification systems and leads to a manageable complexity within the selection process. Besides the procedure, several tools, as an example a sensor pool are presented. These tools include the generated specific expert knowledge and simplify the selection. The primary tool is a pool of preconfigured identification processes depending on the chosen combination of sensor and handling device. By following the defined procedure and using the created tools, even laypeople out of other scientific fields can choose an appropriate combination of handling devices and sensors which enable parallel handling and identification.Keywords: agent systems, autonomous control, handling systems, identification
Procedia PDF Downloads 177125 Trip Reduction in Turbo Machinery
Authors: Pranay Mathur, Carlo Michelassi, Simi Karatha, Gilda Pedoto
Abstract:
Industrial plant uptime is top most importance for reliable, profitable & sustainable operation. Trip and failed start has major impact on plant reliability and all plant operators focussed on efforts required to minimise the trips & failed starts. The performance of these CTQs are measured with 2 metrics, MTBT(Mean time between trips) and SR (Starting reliability). These metrics helps to identify top failure modes and identify units need more effort to improve plant reliability. Baker Hughes Trip reduction program structured to reduce these unwanted trip 1. Real time machine operational parameters remotely available and capturing the signature of malfunction including related boundary condition. 2. Real time alerting system based on analytics available remotely. 3. Remote access to trip logs and alarms from control system to identify the cause of events. 4. Continuous support to field engineers by remotely connecting with subject matter expert. 5. Live tracking of key CTQs 6. Benchmark against fleet 7. Break down to the cause of failure to component level 8. Investigate top contributor, identify design and operational root cause 9. Implement corrective and preventive action 10. Assessing effectiveness of implemented solution using reliability growth models. 11. Develop analytics for predictive maintenance With this approach , Baker Hughes team is able to support customer in achieving their Reliability Key performance Indicators for monitored units, huge cost savings for plant operators. This Presentation explains these approach while providing successful case studies, in particular where 12nos. of LNG and Pipeline operators with about 140 gas compressing line-ups has adopted these techniques and significantly reduce the number of trips and improved MTBTKeywords: reliability, availability, sustainability, digital infrastructure, weibull, effectiveness, automation, trips, fail start
Procedia PDF Downloads 76124 The Price of Knowledge in the Times of Commodification of Higher Education: A Case Study on the Changing Face of Education
Authors: Joanna Peksa, Faith Dillon-Lee
Abstract:
Current developments in the Western economies have turned some universities into corporate institutions driven by practices of production and commodity. Academia is increasingly becoming integrated into national economies as a result of students paying fees and is consequently using business practices in student retention and engagement. With these changes, pedagogy status as a priority within the institution has been changing in light of these new demands. New strategies have blurred the boundaries that separate a student from a client. This led to a change of the dynamic, disrupting the traditional idea of the knowledge market, and emphasizing the corporate aspect of universities. In some cases, where students are seen primarily as a customer, the purpose of academia is no longer to educate but sell a commodity and retain fee-paying students. This paper considers opposing viewpoints on the commodification of higher education, reflecting on the reality of maintaining a pedagogic grounding in an increasingly commercialized sector. By analysing a case study of the Student Success Festival, an event that involved academic and marketing teams, the differences are considered between the respective visions of the pedagogic arm of the university and the corporate. This study argues that the initial concept of the event, based on the principles of gamification, independent learning, and cognitive criticality, was more clearly linked to a grounded pedagogic approach. However, when liaising with the marketing team in a crucial step in the creative process, it became apparent that these principles were not considered a priority in terms of their remit. While the study acknowledges in the power of pedagogy, the findings show that a pact of concord is necessary between different stakeholders in order for students to benefit fully from their learning experience. Nevertheless, while issues of power prevail and whenever power is unevenly distributed, reaching a consensus becomes increasingly challenging and further research should closely monitor the developments in pedagogy in the UK higher education.Keywords: economic pressure, commodification, pedagogy, gamification, public service, marketization
Procedia PDF Downloads 133123 The Impact of E-commerce to Improve of Banking Services
Authors: Azzi Mohammed Amin
Abstract:
Summary: This note aims to demonstrate the impact that comes out of electronic commerce to improve the quality of banking services and to answer the questions raised in the problem; it also aims to find out the methods applied in the banks to improve the quality of banking. And it identified a conceptual framework for electronic commerce and electronic banking. In addition, the inclusion of case study includes the Algerian Popular Credit Bank to measure the impact of electronic commerce on the quality of banking services. Has been focusing on electronic banking services as a field of modern knowledge, including fields characterized by high module in content and content, where banking management concluded that the service and style of electronic submission is the only area to compete and improve their quality. After studying the exploration of some of the banks operating in Algeria, and concluded that the majority relies sites, especially on the Internet, to introduce themselves and their affiliates as well as the definition of customer coverage for traditional and electronic, which are still at the beginning of the road where only some plastic cards, e-Banking, Bank of cellular, ATM and fast transfers. The establishment of an electronic network that requires the use of an effective banking system overall settlement of all economic sectors also requires the Algerian banks to be ready to receive this technology through the modernization of management and modernization of services (expand the use of credit cards, electronic money, and expansion of the Internet). As well as the development of the banking media to contribute to the dissemination of electronic banking culture in the community. Has been reached that the use of the communications revolution has made e-banking services inevitable impose itself in determining the future of banks and development, has also been reached that there is the impact of electronic commerce on the improvement of banking services through the provision of the information base and extensive refresher on-site research and development, and apply strategies Marketing, all of which help banks to increase the performance of its services, despite the presence of some of the risks of the means of providing electronic service and not the nature of the service itself and clear impact also by changing the shape or location of service from traditional to electronic which works to reduce and the costs of providing high-quality service and thus access to the largest segment.Keywords: e-commerce, e-banking, impact e-commerce, B2C
Procedia PDF Downloads 90122 Online Consortium of Independent Colleges and Universities (OCICU): Using Cluster Analysis to Grasp Student and Institutional Value of Consolidated Online Offerings in Higher Education
Authors: Alex Rodriguez, Adam Guerrero
Abstract:
Purpose: This study is designed to examine the institutions that comprise the Online Consortium of Independent Colleges and Universities (OCICU) to understand better the types of higher education institutions that comprise their membership. The literature on this topic is extensive in analyzing the current economic environment around higher education, which is largely considered to be negative for independent, tuition-driven institutions, and is forcing colleges and universities to reexamine how the college-attending population defines value and how institutions can best utilize their existing resources (and those of other institutions) to meet that value expectation. The results from this analysis are intended to give OCICU the ability to target their current customer base better, based on their most notable differences, and other institutions to see how to best approach consolidation within higher education. Design/Methodology: This study utilized k-means cluster analysis in order to explore the possibility that different segments exist within the seventy-one colleges and universities that have comprised OCICU. It analyzed fifty different variables, whose selection was based on the previous literature, collected by the Integrated Postsecondary Education Data System (IPEDS), whose data is self-reported by individual institutions. Findings: OCICU member institutions are partitioned into two clusters: "access institutions" and "conventional institutions” based largely on the student profile they target. Value: The methodology of the study is relatively unique as there are not many studies within the field of higher education marketing that have employed cluster analysis, and this type of analysis has never been conducted on OCICU members, specifically, or that of any higher education consolidated offering. OCICU can use the findings of this study to obtain a better grasp as to the specific needs of the two market segments OCICU currently serves and develop measurable marketing programs around how those segments are defined that communicate the value sought by current and potential OCICU members or those of similar institutions. Other consolidation efforts within higher education can also employ the same methodology to determine their own market segments.Keywords: Consolidation, Colleges, Enrollment, Higher Education, Marketing, Strategy, Universities
Procedia PDF Downloads 135121 Exploring the Unintended Consequences of Loyalty programs in the Gambling Sector
Authors: Violet Justine Mtonga, Cecilia Diaz
Abstract:
this paper explores the prevalence of loyalty programs in the UK gambling industry and their association with unintended consequences and harm amongst program members. The use of loyalty programs within the UK gambling industry has risen significantly with over 40 million cards in circulation. Some research suggests that as of 2013-2014, nearly 95% of UK consumers have at least one loyalty card with 78% being members of two or more programs, and the average household possesses ‘22 loyalty programs’, nearly half of which tend to be used actively. The core design of loyalty programs is to create a relational ‘win-win’ approach where value is jointly created between the parties involved through repetitive engagement. However, main concern about the diffusion of gambling organisations’ loyalty programs amongst consumers, might be the use by the organisations within the gambling industry to over influence customer engagement and potentially cause unintended harm. To help understand the complex phenomena of the diffusions and adaptation of the use of loyalty programs in the gambling industry, and the potential unintended outcomes, this study is theoretically underpinned by the social exchange theory of relationships entrenched in the processes of social exchanges of resources, rewards, and costs for long-term interactions and mutual benefits. Qualitative data were collected via in-depth interviews from 14 customers and 12 employees within the UK land-based gambling firms. Data were analysed using a combination of thematic and clustering analysis to help reveal and discover the emerging themes regarding the use of loyalty cards for gambling companies and exploration of subgroups within the sample. The study’s results indicate that there are different unintended consequences and harm of loyalty program engagement and usage such as maladaptive gambling behaviours, risk of compulsiveness, and loyalty programs promoting gambling from home. Furthermore, there is a strong indication of a rite of passage among loyalty program members. There is also strong evidence to support other unfavorable behaviors such as amplified gambling habits and risk-taking practices. Additionally, in pursuit of rewards, loyalty program incentives effectuate overconsumption and heighten expenditure. Overall, the primary findings of this study show that loyalty programs in the gambling industry should be designed with an ethical perspective and practice.Keywords: gambling, loyalty programs, social exchange theory, unintended harm
Procedia PDF Downloads 90