Topic > service - 807

The implications of the intangibility of the service offered by AirAsia and communication strategies to address the problems created by the intangibility of services. Services have four characteristics, namely Intangibility of services is one of its unique characteristics which makes services different from products. Intangibility refers to the state in which services do not exist as a physical thing but still have value. Intangibility makes it difficult for any service provider to manage its quality control since services have no physical attributes that could be seen and evaluated by either customers or service providers. It is a very important feature that brings many challenges for service providers, including AirAsia. According to Macquarie Research, AirAsia derived 66% of its revenue from the sale of passenger seats. This means that the majority of AirAsia's revenue comes from the flight service offered to customers. Therefore, it is very important for AirAsia to improve its service from time to time. However, the intangibility feature has made it difficult and challenging for AirAsia to measure its performance in terms of service quality. According to Bebko (2000), service quality can be measured by the level of discrepancy between consumers' expectations or desires and their perception of what they received. This means that customers will evaluate the services they receive based on what they expect from the service provider. As for AirAsia, the company has provided a means for customers to provide their feedback or contact AirAsia for any compliments and complaints. Customers who wish can visit the AirAsia website and write or submit feedback or a complaint by simply clicking on...... in the center of the sheet ......their opinion on the services. For AirAsia, the aircraft is the physical evidence that facilitates service production while other physical evidence such as flight attendants, flight seats and in-flight magazines are used to enhance service consumption. AirAsia has taken some initiatives to enhance its customers' in-flight experience, including providing Travel 3Sixty magazine flyers and other in-flight entertainment. To conclude, service intangibility is a challenge for every service provider. However, if service providers know how to address this problem, they will have a competitive advantage and acquire more customers. The most important thing that all service providers should do is determine the level of quality expectations that consumers have of their service industry and attempt to meet them.