Seminar Presentation
Seminar Presentation
SEMINAR PRESENTATION
ON
BY
UMOREN, EKA
MKT/[Link]/18/011
DEPARTMENT OF MARKETING
FACULTY OF MANEGEMENT SCIENCES
UNIVERSITY OF CALABAR
CALABAR
SUBMITTED TO
DEPARTMENT OF MARKETING
FACULTY OF MANAGEMENT SCIENCES
UNIVERSITY OF CALABAR
CALABAR
AUGUST, 2021
i
CERTIFICATION
We hereby certify that this seminar paper titled ‘’Distribution Strategies and Marketing
Performance of Domestic Airlines: A Conceptual Analysis’’ by Umoren, Eka with
Matriculation Number: MKT/[Link]/18/011 of the Department of Marketing, University of
Calabar under the direct supervision of Prof. B. B. Esu meets the minimum requirements
governing the award of a Master of Science ([Link]) Degree of the University of Calabar,
Nigeria. Hence, the report is hereby approved for the award of a Master of Science in
Marketing to the candidate.
Sign:__________________ Date:______________________
Prof. B. B. Esu
(Supervisor)
Department of Marketing
University of Calabar
Nigeria
Sign:__________________ Date:______________________
Dr. Ben Odigbo
(Ag. Head, of Department of Marketing)
University Of Calabar.
Nigeria
ii
DEDICATION
iii
ABSTRACT
The main thrust of the study was on distribution strategies and marketing performance of
domestic airlines. Three research objectives were formulated based on the study variables
which are; to explore the underlying dimension of distribution strategies, to explore the
underlying dimension of marketing performance and to explore the patterns of relationship
between distribution strategies and marketing performance. The literature was gathered based
on the study variables (distribution strategies and marketing performance). The conceptual
study adopted exploratory research design with a pragmatic approach and the preferred
reporting items systematic meta-analysis (PRISMA) to arrive at 23 articles as the sample size
from extant literature of 441,000 articles from google scholar. Among the finding of the study
revealed a strong relationship between distribution strategies and marketing performance. It
was therefore recommended that airline industry should concentrate on adopting modern
distribution strategies (brand websites, online travel agents, traditional travel agents, etc) in
stimulating customer satisfaction, customer loyalty, sales growth, market share, profitability
and quality service delivery to customers. (Word count: 165)
iv
TABLE OF CONTENTS
TITLE PAGE i
CERTIFICATION ii
DEDICATION iii
ABSTRACT iv
TABLE OF CONTENTS v
v
3.2 Research philosophy 16
6.1 Conclusion 64
REFERENCES 66
vi
LIST OF TABLES
Table 4.2: Distribution of keywords and concepts related to the study variables in the journals 46
Table 4.5: The pattern of relationship between distribution strategies and marketing
vii
LIST OF FIGURES
viii
Distribution Strategies and Marketing Performance of Domestic Airlines: A Conceptual
Analysis.
that functional role of delivering the needed goods and services desired by the consumers.
Thus, distribution function is vital and instrumental to the well-being of the society as it is
Distribution strategies are the frameworks that facilitate efficient delivery of goods
and services to the customers, grows the business, promotes the company’s profile and
corporate image in the market. Thus, distribution strategies contribute to the product value by
getting the product to the right place at the right time required by the customer. This enhances
interface simply means the interaction or communication between distribution company and
because customer interface does not only maintain but also sustain communication lines with
customers to assist the distribution companies correctly and interpret customer’s requirements
between parties involved in the transaction (Singh, 2016). Essentially the shorter the interface
the better because shorter interface ensures continuity in business either electronically and
otherwise between parties and is beneficial to both parties. The company endeavors to satisfy
customers’ requirements and at the same time the cost incurred must be such that allows the
1
Button (2005) states that the resolution or liberalization in the global airline industry
that started in the United States of America and spread across countries of the world has
brought about tremendous changes within the travel agencies and airlines. These changes
affected the travel agencies resulting in decline in business. These changes destroyed the
traditional ways of getting airline tickets and boost relationship that existed between the
airlines and travel agencies. This is because the airlines industry became open to many
players such as individuals, private companies and the state-owned airlines. This made
Amadeus (2007) posits that due to the over reliance on travel agencies for many
years, most domestic airlines and possibly new entrants are not finding it easy to service
travelers efficiently and independently without compromising their profit margin or running
at losses. This is factual because the travel agencies were the major drivers for the ticket sales
of the airline companies. With the liberation policy spreading across the globe many airlines
are struggling or battling to fill their plane seats with travelers due to low member of ticket
sales. Consequently, airlines are adopting innovative and other radical strategies measures to
remain in business. Hence, distribution strategies are to ensure that domestic airlines are
capable of meeting expected sales, operations and securing a fair deal in the delivery of air
market share within airline industry. Majid, Sucherly and Kaltum (2016) ascertain that
marketing performance involves marketing activities that cater for effectiveness and
efficiency of airline operation with regards to market related goals such as revenue, sales
growth and market share within the airline industry. Marketing performance helps in
2
projecting into market goals within the airline industry as well as depends on systematic and
strategic activity such as distribution function of products and services. Chikere (2015) as
cited by Didia and Amesi (2018) view marketing performance as basic fundamental factor for
firm’s success and survival. A firm’s current position and its distribution strategy have a
close link to their marketing performance with respect to competition and industry advantage
in the market place (Didia & Amesi, 2018). This study tends to explore the underlying
between both.
Airlines provide one of the finest and fastest transportation modes across the globe.
The airline business is highly competitive due to people travelling within countries and trans-
continentally. The airline industry is highly sensitive to social, political and economic
dynamic of any country. In Nigeria, air travel is a necessity due to high level of insecurity
and poor road network across the country. This has added to the demand rate of air travel
within the last two decades without corresponding plans to cater for such emerging changes
or demands by consumers.
It is alleged that domestic airlines companies that do not perform proper managing of
their distribution functions effectively tend to fail in business (Bankole, 2015). Research
shows that Nigeria airlines are not market driven as a result of the inability for the airline
industry to ensure the needed distribution strategies in delivering their products and services
to the consumers which directly affects marketing performance. These problems of poor
distribution strategies among other problems have caused Nigeria airlines to lag behind in
areas of acceptable standard of operations globally, unable to grow and expand to attract
travelers. This has contributed to low performance and huge economic losses. This is one of
3
the major reason why marketing activities specifically distribution strategies are inevitably
customer needs which airline business is not exceptional. The advent of new and advanced
technologies particularly the internet has revolutionized the travel industry as well as redirect
focus on distribution strategies of airline products and services. European commission (2006)
reports that the internet and others have introduced cheaper and flexible technologies that
permit new players in the market to implement effective low cost distribution strategies to
This study intend to explore the underlying dimensions of distribution strategies and
The broad objective of the study was to explore distribution strategies and
literature.
ii. explore the underlying dimensions of marketing performance of airlines from extant
literature.
iii. explore the pattern of relationship between distribution strategies and marketing
The study is suggested to have a wider effect on different stakeholders in the industry.
First, the study could be of immense advantage to travelers who will be exposed to direct
4
access to purchase air tickets at their comfort zones through the use of internet and others.
The airline companies will equally benefit from the study by understanding the different
possible modern technologies available in the industry and adopt such to meet with the
The study will assist the government in policy formulation of the business especially
with the current fraud in online sectors. To the academics, it will contribute to the body of
The study scope was restricted to domestic airlines and the focus on distribution
strategies and marketing performance. Furthermore, the scope identifies related dimensions
extant literature.
In the course of carrying out the study, it is discovered that there is draught of
information in literature as few literatures exist pertaining to the study. Therefore, the
researcher drew conclusion from the thirty (23) available articles reviewed.
Distribution: Distribution is the framework or process that facilitates efficient and effective
delivery of goods and services to the customer at the right time, right location and safe
5
Marketing: It refers to the activities a company undertakes to accelerate the buying or selling
Domestic airlines: Domestic airlines are companies that provide air transport services for
travelling passengers and freight. Domestic airlines are indigenous companies that provides
air transport services for passengers and cargoes or freight within countries and inter-
continentally
This theory was put forward by F. D. Davis in 1986.. Technology acceptance theory is
an information system theory that explains how users come to terms in acceptance and usage
of new technologies. The author point out that “Behavioural intention” is the primary factor
general impression of the particular technology. The theory explains that when users are
introduced to a new technology, two major forces are responsible to influence users’ decision
about how and when they will use the technology. These factors include:
Perceived usefulness – which means the extent to which user believes that the usage of a
particular system would raise, augment or improve job performance. This implies that
whether or not some users perceive that the technology will be useful for what they want to
do.
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Perceived ease of use – This is the ease of application. In other words, the extent to which a
user believe that the application of a particular technology will free him or her from effort
(Davis, Bagozzi and Warshaw, 1989). This implies that if the technology is easy to use,
obstacles or hindrances are overcome but if it is not easy to use and the interface is
complicated, there will be no positive attitude to accepting such technology. The importance
of this theory is that it serves as a useful general framework that is consistent with a number
of researches into factors that influence user’s intentions to use new technology (Lee, Kozar
and Larsen, 2003). The theory aim at emphasizing the potentials of the users as it is designed
to foretell the technology adoption decisions of users. Airlines make use of different
locations. The application of technology acceptance theory in this study is premised on the
fact that modern technological applications provide ease of usage and perceived usefulness
for the comfort of both new and old customers and equally to the airlines. It brings about
reduction in cost, saves time and easy accessibility which are core utility functions of
distribution in marketing.
This theory was propounded by Hofer (1980) and popularized by theorists like Barker
III in 1997. The theory of strategic turnaround focuses attention on two kinds of turnaround
strategies such as strategic and operating turnaround. The authors explain that strategic
turnaround options take consideration of new methods to compete in the current markets or
entering new markets. Strategic turnaround actions apply to company that face hardship due
to unsuitable market arrangement. On the other hand, operating turnaround are actions that
companies that are experiencing low productivity from inefficient operations or bank
7
combination of these approaches. These strategies display different levels of severity of
This strategy is carried out by companies that are operating below the equilibrium
2.2.1 Distribution
Esu (2020) reports that distribution deals with the movement of how to take goods
and services from the manufacture to the buyers and the flow is accomplished through
Ebitu (2019) defines distributions as all of those activities involves in the movement
of goods and services from the producers or market to the buyer or final consumer effectively
and efficiently. Distribution decisions are very vital and critical to a company’s existence and
growth.
The essential objective of distribution is the delivery of the right goods and services to
the right location, at the right time in accordance with cost framework for the supplies. Hence
distribution closes the gap that exists between the producer and the consumer.
2.2.2 Strategy
Bert (2013) views strategy as processes, schemes, plots, devices and techniques
Ejionueme and Nwora (2021) define distribution strategies to mean framework for
organized and serviced system created and utilized to provide convenient access or point of
sale to customers or passengers through marketing intermediaries or direct from the airline to
the passengers or customers. This implies that distribution is not restricted to intermediaries
8
but equally to airlines or parent companies that can distributed air travel services directly to
Ejionueme and Nwora (2021) state that in recent time’s distribution of airlines tickets
and other travel services have been dominated by direct channels. However, with the
through internet technology. The crux of distribution strategies is to provide convenient point
of sales or access to services to customer. Point of sale is any location which purchase
Basically, there are direct and indirect distribution strategies in air travel. Srivaslava
(2018) states that traditionally, airlines follow two different distribution strategies namely
customers. In the use of direct distribution strategies, the passenger or customers do travel
booking by directly accessing the airline without any intermediary. The direct strategies
include airline website, city sales outlet, airport walk-in, call centre, corporate booking,
intermediaries. Indirect distribution channels includes physical travel agents, online travel
agents, internet booking engines, code sharing agreement, travel management companies,
With the emergence of the internet and related technologies, there are remarkable
remarkable update and uptakes which is used by airline. Bin (2013) states that the internet
enhances the comfort and access of buying tickets and at the same time reduce the cost of
9
distributing tickets for airlines. The author further stresses that airlines that employ parallel
distribution strategies possess the propensity to rely more on internet services. The internet
equally expands airline distribution system. Also, the internet provides airline and
2.2.5 Marketing
There are many definition of marketing but the study mentions few. Nnabuko (2016)
and flow of goods and services that satisfy the needs and wants of consumers from the point
of initial production to the point of the final consumers. Adeleye (2017) mentions that
marketing consist of all activities aimed at identifying and satisfying customer needs through
2.2.6 Performance
Performance implies a guide for making investments, defining goals and bench-
making and facilitating instrument for predicting and reducing uncertainties and identifying
Performance is all about carrying out execution of action to accomplishment the company’s
goals. Performance is about what has been done and how it has been done. Performance is the
work result that has strong relationship with company strategic objective, customer
satisfaction and gives economic contribution (Majid, Sucherly and Kaltum, 2016).
Marketing in itself is an activity with a defined process that can be applied for
creating, communicating, delivering and exchanging good and services that have added value
for customers, consumers, groups and the public in exchange for money (American
Marketing Association, 2013). Marketing entails the process of exchange between two parties
10
normally the buyer and seller. In the process of exchange something of value is given out by
one party to obtain something of value from the other party (Kotler and Armstrong, 2013).
Kotler and Keller (2013) view marketing performance as the returns which can be
financial and non-financial resulting from marketing activities of the company. Marketing
performance can be seen as results of ends from activities or means of marketing activities of
the organization. It is pertinent to note that marketing performance can be measured using
some parameters or indicators such as sales volume, sales growth, market share, product
In the context of the study marketing performance entails facilitation of the exchange
process for higher sales of air travel tickets and other related airlines services at the right time
convenient access or point of access to air travelers in order to accomplish smooth purchase
of air ticket services. Singh (2016) report that distribution strategies are the support
structures, and devices that are design to assist in bringing about efficient and effective
delivery of the right travel ticket to the traveler at the right time, right location in accordance
because distribution strategy brings about business growth, increases company’s reputation,
visibility and accessibility as well as corporate image of the airline in the market. Hence,
distribution contributes significantly to the product travel by bridging the gap between the
airline and the customers. This is done to enable air travelers have access to air travel ticket at
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The dependence of airlines on distribution strategies brings great advantage by
enabling them to create interface that makes both potential and current travelers to have ease
Hence, the distribution strategies leads to increase in sales volume of air tickets, increase in
market share, ease access to air tickets (product quality), profitability through cost reduction,
customer satisfaction, corporate image return on investment among others. These marketing
Kibe, Ogutu and Kasanzu (2021) carried out a research on strategies adopted by airlines to
sustain ticket sales performance post the zero commission policy. A case study of Kenya
airways and their objective were to assess the strategies to sustain ticket sales performance.
Sales staff and travel agent were selected as population of study. The research was carried out
as a result of distribution gap, loss of goodwill among travel agent and increase in fee price.
The research design was survey while the statistical tool was delphi. Among the findings in
the study, it was revealed that airline that use internet to provide access to travelling
customers through physical avenues and company website were statistically higher by a mean
of 3.22 than other channels. Internet technologies are the best alternative for airline ticket
selling, contacting and also source of information. Also, Kenya airline sustained their ticket
Lee, Sun, Law and Zhong (2020) researched on Electronic distribution channels of
airlines ticket. They identified all electronic distribution channels to book airline, compared
airline ticket prices offered by online travel agents in different region, examined outline
pricing strategy of Cathay pacific airways among different distribution channel and the
implication to suppliers. The research was carried out as a result of challenges of airlines in
getting competitive advantage due to internet services. Survey was the research design. 100
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respondents were accidentally sampled out for the study. ANOVA was the statistical tool.
The result showed that airlines have a good relationship with selected local based online
travel agents to leverage the presence of the brand through digital intermediaries at 0.374( P<
0.05). Also, offering cheapest airline ticket to local based online travel agents can retain local
Majid, Sucherly and Kaltum (2016) studied the measurement scale for Indonesia’s
domestic airlines performance. The objective was to obtain a consensus from experts in
aviation both in academics and practitioners were the population of study. The research
method uses questionnaires to obtain answers and inputs from the selected correspondents
using delphi method. The data was processed using SPSS version 17.00. The result of
research findings shows that 41 respondents who answered considered all the indicators as
valid and agreed with the design of instrument for measuring of airline performance, Also,
the findings shows the easiness and speed in obtaining ticket indicates good performances.
Udjo, Lubbe and Douglas (2013) studied on the search for and purchasing of an
airline ticket. The objective was to investigate passenger’s perception of the best time to
purchase tickets to gain a price advantage and their preferred distribution channel. The
research design used was survey. The populations of the study were 42,982 who were made
up of airline passengers of full-service and low-cost carrier in South Africa who travel
domestically for leisure purpose. All passengers on the data base received the questionnaire
and a total of 1,649 used responses were realized representing 3.86% response rate. The
response was slightly dominated by female respondents (53%), with males making up the
remainder of the sample (46%). Passengers indicating that they travelled on the low-cost
carrier amounted to approximately 24% with the rest being passengers in the full service
13
carrier. Simple percentage statistical tool was used. The research problem captured
passenger’s perception of most favourable time to purchase ticket and which channel they
prefer to use (passenger buying behaviour). The result indicates that not only are internet
channels being used more, but airline websites are the preferred channel as passengers are not
channels in Nigeria. The objective was to examine the distribution channels adopted by
airlines in Nigeria. The population of study was airline customers, travel agency owners,
regulatory bodies and airline managers. The research design used was survey. The
questionnaire was design with multiple choice questions, some of the question options were
designed in a ordinal ranking method. The study measured the awareness of airline
differently from sales distribution channels which statistically shows that 25% of customers
were aware of the airline airport office, 22% indicated that they were aware of town office
while 5% indicated that they were aware of online channels. The findings discovered that
each distribution has its own appeal to customers as well as its limit in terms of effectiveness
in service delivery. Also, study revealed that customer awareness and perception significantly
influences distribution channel and market share in distributing airline products and services
ticket purchasing channel. They analyze the motive behind selection of booking channel,
provide vertical insight into the strategy traditional travel agency needs to survive the trend.
The study was carried out due to factors influencing consumer’s decisions in booking
channels selections. Survey was the research design. Inductive approach and mapping was
the statistical tools. Findings showed that consumers statistically preferred offline when the
14
between online and offline travel agencies in terms of speed, broader choice and ease of use
Chen, Huang and Chiu (2011) carried out a study on optimum channel strategy for air
ticketing. The objective was to examine air ticketing in duopoly market using three different
channel structures which include the integrated structure (selling tickets through company
channels), common franchisee structure (selling tickets through company franchisee), and
decentralized structure (selling tickets through different franchisees) to explore the optimum
channel strategy for airline companies in various competition situations and high/low
seasons. Franchisees and airline companies were selected as the population of study. The
researchers attempted this study as a result of operational cost of airline forcing them to seek
effective channel strategies to boost ticket sales and profits because of task of selling out
available tickets in order not to lose it. Trivedi’s linear demand function was the statistical
tool used and finding revealed that integrated structure is the optimum channel choice for
franchisees and between tickets, and the season is favorable to the aviation industry, the
decentralized franchisee structure is the optimum channel choice for airlines companies.
Koo, Mantin and O’ Connor (2011) carried out a study on online distribution of
airline ticket: should airlines adopt single or a multi-channel approach? The study determined
analyses several factors that an airline decide to ticket through an online travel agent platform
distribution strategy. Observation approach was adopted as research design while the
population of study was travel agencies and airlines. The study was carried out as the high
expenses incurred when ticket are distributed through online travel agencies. Findings
revealed that airlines are likely to use online travel agent platforms if they have large
15
consumer loyalty or if the online platform is highly competitive to own large market share
and profitability.
Research methodology is the framework of the study that involves the research
design, population and sample size, sample techniques and method of data collection. It also
focuses on the validity and reliability of the instrument and data analysis techniques. This is
The study adopted exploratory research design. The exploratory design focuses on
the gathering of data either primary or secondary as to gain additional insight before an
The research philosophy for this study is a pragmatic research philosophy. The
pragmatic research philosophy attempts to work with relevant concept that can support
action. This philosophy acknowledges that there are many ways of interpreting the world,
circumstances or research problem and understanding the research that no single point of
view can ever give the entire scenario and there maybe multiple realities. Pragmatic
researchers are similar to architect because in the same manner architects use whatever
material and methods in erecting a building, the architect must first sketches in a paper before
the actual action. Pragmatic philosophy engages different methods that are relevant to find
answers to research questions. On the other hand, it must be stressed that pragmatists may not
16
use multiple approaches rather they use an approach or combination of approaches that
The study adopted inductive research attempt because inductive attempt does not
involve hypotheses formulation and testing rather it focuses on research objectives and
research questions that are required to be attained in the research process and review of
The major search engine used was google scholar to gather 441,000 related articles of
distribution strategies and marketing performance of domestic airlines for the period 2002 –
2021.
The Preferred Reporting Items for Systematic and Meta-analysis (PRISMA) flow
chart provides three steps in arriving at the final sampling size which are:
17
Goggle scholar (from
2002 to 2021)
n = 441,000
Reasons:
Language = 1
Out of scope = 6
Final sample size No citations = 1
n = 23 Limited relevance = 1
Publication status = 2
18
The search engine provides population size of 441,000 from 2002 - 2021 as shown in the
PRISMA flow chart above. The articles were screened based on title relevance criteria and
8,250 articles were inclusive while 432,750 were exclusive. It was also screened based on
abstract and keywords relevance to the research topic were 45 numbers of articles were
included while 8,205 numbers of articles were excluded. The articles were further screened
based on full text assess and 34 numbers of articles were found to eligible while 11 numbers
of articles were found to be ineligible with reasons being non usage of English language, out
of scope, no citations, limited relevance, publication status for the purpose of arriving at the
sample size of 23 which the researcher finally arrived at 23 articles as the sample size for the
study.
(i) Identification of search term: The study used the terms that were related to the study to
search for articles. The keywords that were typed on google scholar search bar includes:
(ii) Pool of literature according to search keywords: The search keywords generated a vast
19
Environment [IJBE], International Conference on Science, Technology, Education, Arts,
Transport and Communication [TC], Global Journal of Engineering Science and Research
[Link].
(v) Identification and separation according to date of publication: The research strategy
for literature in the study concentrated attention on recent publications except for the
inclusion of theoretical reviews. The study paid attention to current development in the study
area. Thus, it was important to extremely analyze current sources of the literature since many
of the literature discussed in the study were the ones that were published recent years.
20
4.0 Result and finding:
4.1 Literature review table
The following tables and chart below represent the findings in different categories which are in line with the research objectives
Table 4.1
Literature review table
s/ Author(s) Title of Publication Year of Definitions Objective Research Popula Variable of Statisti Problem Findings
n paper publication s of the design tion of study cal tool s
study the
study
Kibe, J., Strategies Universal 2021 -Airlines - Survey Sales -Yielded Descrip - -It was
1. Ogutu, adopted by journal of strategies Assessing design staff manageme tive Distribut revealed that
H. and airlines to managemen -ticket sales the and nt statistic ion gap airline use
Kasanzu, sustain t. 9(2):52- travel strategies travel - internet s -Lots of internet to
W. ticket sales 61 agencies to sustain agent branding goodwill provide
performan -zero ticket -Alliance among access to
ce post the commission sales -sales travel travelling
zero policy -Establish performan agent customers
commissio influence ce - through
n policy. of Increase physical
A case 1. Yield in fee avenues and
study of mgt. price company
Kenya 2. internet website.
Airways and -Internet
(KQ) branding- technologies
determini are the best
ng the alternative
ticket for airline
sales ticket selling,
performa contacting
21
nce and also
source of
information.
Also, ---
Kenya airline
sustained
their ticket
sales
performance
through
internet and
alliance.
22
M. and n systems: and systems impact of s n systems, alternati technology
Tafur, J. The threat managemen -Global ICTs on Global ve to to added
of new t 2(1):251- Distribution airlines distributio distributi higher value
entrants to 272 System with n systems on of services to
incumbent -airline focus on new channel customers.
players. industry: GDS. entrants, in the
- -To know New market
information the distributio place.
and changing n
communicat market capabilities
ion dynamics, )
technologie -Analyze
s. the
environm
ent that
led to the
appearanc
e of
GNGs.
-pinpoint
the issues
behind
the failure
to provide
an
alternativ
e to
Global
Distributi
on system
-Clarify
critical
23
issues in
air travel
distributi
on field.
-The
interactio
n between
technolog
y and
airline
distributi
on.
-To
examine
the latest
developm
ents and
transform
ation in
airline
distributi
on.
4. Abdelgha Evaluating Internationa 2007 -Airlines To Experime - Distributio difficulti -The result
ny, A. airlines l Journal of competition evaluate ntal n channel es of shows that it
and ticket revenue -demand distributi design with high travelers is more
Abdelgha distributio managemen -itinerary on market to select beneficial for
ny K. F. n t 1(8):231- choice strategies penetration among an airline to
strategies: 246. -revenue for and high different distribute its
A managemen commerci competitio itinerarie tickets in a
simulation t al airlines n among s that are distribution
based subscribed provided channel that
24
approach. -simulation airline. by has high
-ticket - airlines competition
distribution. Distributio subscrib among its
n channels ed by subscribed
with low the airlines than
market channel a distribution
penetration that has low
and low market
airlines penetration
competitio and low
n competition
among its
subscribed
airlines.
-It shows
that airlines
get lower
load factors
when a
limited
number of
itineraries
are displayed
through the
distribution
channel.
25
R.S. capabilitie t 6(1):66-80 ion- es in approaches booking enhances
s. Standardiza allocating -traditional with the airline
tion airline distributio revolutio distribution
products. n n of strategies.
-To capabilities internet.
explore - -
the Innovative challeng
existing capabilities es of
distributi multiple
on distributi
challenge on
s on capabilit
allocating ies faced
airline by
products. airlines
through
tradition
al
distributi
on
system.
6 Udjo, O. The search - 2013 -Airline To Survey 42,98 -optimum Simple - - The result
Lubbe, B for and [Link] distribution investigat Design 5 time to percent Passeng indicates that
and purchasing /ertr./files/ -consumer e (Airlin purchase age er’s not only are
Douglas, of an 2013/03/ purchase passenger e - percepti internet
A. airline enter 2013 decision s passen distributio on of channels
ticket. submission- - price perceptio gers n channels most being used
[Link]. advantage n of the who (online and favourab more, but
best time travel offline) le time airline
to domes to websites are
purchase purchase the preferred
26
tickets to tically ticket channel.
gain a For and -Passengers
price leisure which are not
advantage purpos channel willing to
and their e) they spend more
preferred prefer to time
distributi use searching for
on (passeng tickets.
channel. er
buying
behavio
ur)
7 Chen, Y., Optimum African 2011 -Air Examine - Franc Integrated Trivedi - -Finding
Huang, channel journal of ticketing, - air hisees structure ’s Operatio revealed that
S. and strategy business channel ticketing and (ticket linear nal cost integrated
Chiu, F. for air managemen strategy in airline sales by deman of airline structure is
ticketing t selection. duapoly compa airlines. d forcing the optimum
5(22),97489 market nies -Common functio them to channel
759 franchisee n. seek choice for
structure effective airline
(ticket channel companies in
sales by strategie most
one s to situations.
common boost However, if
franchisees ticket there is
) sales and intense
- profits. competition
decentraliz -Task of between
ed selling franchisees
franchisees out and between
structure available tickets, and
27
(ticket tickets the season is
sales by so they favorable to
different do not the aviation
franchisee) become industry, the
a loss. decentralized
franchisee
structure is
the optimum
channel
choice for
airlines
companies.
28
decision competitive.
to tickets
through
an Online
travel
agent
platform
or owned
websites.
-
examines
the
complicat
ed
process
airlines
navigate
in
choosing
a
distributi
on
strategy.
-Demand-
related
factors in
airlines
ticket
sales
distributi
on
29
choice.
9 Cheng, Consumer Internationa 2011 -travel -To Survey - Online - -Factors - Findings
K., s’ l journal of agency analyze Custo travel inducti influenci showed that
Lee,Z-H. perspectiv Business -internet the mer agencies ve ng consumers
and es on the environmen booking motive pool approa consume statistically
Klingenb selection t 4(1) 63-91 -air ticket behind of Offline ch and rs’ preferred
erg, B. of air reservation. selection travel travel mappin decision offline when
ticket of agenc agencies g s in the trip is
purchasing booking y. booking complex or
channel channel. -social channels complicated.
-To order selection
provide of one s. -There is no
vertical of the significant
insights author difference
into the s between
strategy online and
traditiona offline travel
l travel agencies in
agency terms of
need to speed,
survive broader
the trend. choice and
ease of use.
1 Adiele, Perceived Journal of 2018 Airfare -To Cross - -perceived ANOV - -perceived
0 K.C. and airfare hospitality, fairness examine sectional 75,00 airlines A. interacti air fairness
Etuk S. fairness tourism and Nigerian the effect Survey 0 fairness on and does not
G. and leisure 7(1). domestic of airfare process significantly
patronage 1-11 airlines fairness -Customer experien affect
of Customer on patronage ced in domestic
domestic domestic of the airline in
30
airlines in patronage airline domestic purchase patronage in
Nigeria. patronage airlines. of Nigeria
in airline
Nigeria. tickets
-
unavaila
ble
airplanes
at the
right
time
1 Alamdari Regional Journal of 2002 -Airline -To - Airlin -Airlines Bar - -Major
1 , F. developme air transport distribution. analyze es -Travel chart Increase carriers have
nt in managemen -Travel the agents inability identified
airlines t 8(5),339- agents, distributi of airline and
and travel 348 - on to developed
agents Commissio strategies distribut direct sales
relationshi n of major e their strategies
p airline products based on
carriers in cost electronic
US, effective delivery with
European ly. the inevitable
and Asia. -Airlines in future
-Examine drive to ticket
the reduce distribution.
changing cost. -By passing
relationsh -Airlines travel agent
ip wishing has not been
between to have successfully
airlines more possible.
and travel direct
31
agents. contact
-Trends with
on direct their
selling by client.
airlines in
each
region.
-The
trend in
distributi
on policy
of
airlines.
1 Asiegbu, Physical American 2012 -Physical -To Cross 29 Pearso - - The result
2 I. K., evidence internationa evidence. determine sectional Nigeri -Physical n and Inability shows that
Igwe, P. and l journal of -marketing the extent survey an evidence stepwis to airline ticket
and marketing contempora performanc to which research based (ambience, e provide distribution
Akekue- performan ry research. e. physical design airline service regressi required channel
Alex, N. ce of evidence operat system) on service under airline
commercia affects ors. - statistic quality, website
l airlines marketing Performan s low - together with
in Nigeria performa ce (sales patronag traditional
nce of growth, e and travel agent
commerci personal abysmal and online
al competenc profit travel agent
activities. e, market margin. give the best
share, market share,
profitabilit profit and
y) sale growth
1 Rebezova Developm Transport 2012 Passenger To Explorato Overv -Air Concep Emergin It shows that
32
3 , N., ent trends and air transport analyze ry iew of transport tual g losses distribution
Sulima, of air Telecommu services the research numer service study in airline of air
N. and passenger nication developm design ous -service business passengers
Surinov, transport -Global ent trend public distributio transport
R. services distribution of air ation n channel services
and system passenger regarding
services -New s new
distributio generation transporta generation
n network tion network
channels. - services
information
technology _To make
- computer connectio
reservation n between
system the
developm
ent
problems
of the
range of
core and
extra
services
and those
of the
distributi
on
channels
and the
require
informati
on
33
technolog
y support
1 Sabrina, The Sematicssch (2014) -Airline -To - - -ticket Mathe -Conflict -Airline
4. S. D. and implement [Link]. ticket maximize Airlin sales matical issues ticket
Widodo, ation of corpus distribution profit/gai es through model between distribution
E. dual- id;2080266 -Dual- n for - airline develo airlines channel
channel 50 channel supply Custo owned pment and under airline
supply supply charts mers website (numer travel website
chain chain system -travel ical agents together with
(DCSC) in - agents -ticket Experi about traditional
airline Optimizatio . sales ment channel travel agent
ticket n through distributi and online
channel -Quadratic both on of travel agent
distributio programmin airline tickets give the best
n g websites selling financial
and Performance
traditional terms of
travel market share,
agent. profit and
sales growth
-Ticket
sales
through
their own
website,
traditional
travel
agent with
Online
travel
34
agents.
1 Didia, J. Focus Internationa 2018 -Focus -To 6 -Focus Regres -The There is a
5. U. D. and strategy l Journal of strategy investigat Descripti airline strategy sion high strong
Amesi, P. and marketing -Marketing e focus ve firms -Sales, Analysi level of positive
C. marketing Research performanc strategy Survey operat Growth s competit relationship
performan and e and ing in -market ion that between
ce of managemen -Sales marketing Port share makes focus
domestic t, 8(4). growth performa Harco airlines strategy and
airline -Market nce of urt to seek marketing
operators share domestic strategic performance.
in Port -Domestic airline options
Harcourt. airline operators that
operators in Port exposes
Harcourt. them to
opportun
ities
among
competit
ors,
survive
and
remain
business.
1 Shon, Z. Airline e- Journal of 2003 -Web -Web -e- Chi- - -It shows
6. Chen, F commerce: air transport reservation reservatio Survey Custo commerce square Conflict that virtual
and The managemen -Airline e- n and mers test s channels are
Chang, revolution t 9:325-331 commerce online Behav -ticketing between good enough
Y. in -Channel ticketing ior channels vertical to dominate
ticketing conflicts. services (virtual and the market
channels provided and physical but
35
by - physical ticketing traditional
airlines differe channels) channels channel, also
and travel nt have their
agents. distrib niches in
-To ution some
examine chann specific
the els segments.
impact of
internet
on air
transporta
tion and
developm
ent of e-
commerc
e and e-
business
in airline
operation
s and the
conflicts
between
virtual
and
physical
channels
-Examine
the new
trends
and e-
commerc
36
e issues.
1 Murty, Performan Internationa 2013 -Airlines -To explorato Extant -Efficiency Concep Technic The study
7. A., ce analysis l journal of - discuss ry literat - tual al found a
Kiran, T. of airline engineering Productivity on the ure Productivit study efficienc negative
and Goel, services and , developm betwe y y of an relationship
N. ( A critical managemen - ent of en airline between the
study of t research outsourcing thought in 1983- compan rate of fleet
global 3(6), 37-46 airlines 2012 y expansion
scenario) efficienci and total
es and factor
also on productivity
allocative
efficiency
1 Yoo, E., Relationsh Journal 2020 -social To Survey -social Correla Effect of The study
8. and Park, ip between distribution network examine design network tion relations shows that
S airline’s of science service the service analysi hip social
distributio 18(8) 5-14 -customer impact of -customer s between network
n services satisfaction, characteri satisfaction content services and
contect SNS stics of -personal characte personal
and content SNS characteris ristics of characteristic
customer - personal content tics social s
saticfactio characteristi provided network significantly
n cs by airline services impact
on and customer
customer custome satisfaction.
satisfactio r
n. satisfacti
-To on
explore
the effect
37
of a
personal
characteri
stics of
the
customer.
1 Ejem, E. Analysis Global 2017 Airlines To Survey 800 Determina Simple The The critical
9 A., of journal of - examine nts of t- test determin factor
Ekeugo, determina engineering productivity the airline ant for affecting
C. U., nts of science and - Passenger determina productivit - predictin airline
Dike, D. airlines research nts of y Friedm g the productivity
N., productivit managemen productiv an’s extent of in Nigeria is
Chukwu, y in t 4(2),7-13 ity in the rank unprodu sincere and
O., Nigeria Nigerian test ctivity responsive
Igboanusi domestic airlines are not attitude to
, C. C., network industry clear passengers
Erumaka, airline request and
O. complaint
and success
to complete a
trip
2 Qteishat, The Journal of 2014 Customer -To Survey Airlin Multipl Challeng -It indicates
0. M. K. Al impact of Information technical examine e -e- e and es that
Shibly, e-ticketing system and support the passen ticketing simple involvin customers
H. H. and technique technology - impact of gers regressi g e- satisfaction
Al- on 1(3) Infrastructu e- (custo -customer on ticketing with
ma’aitah, customer re ticketing mers) satisfaction and e- electronic
M. A. satisfactio -Security technique service ticketing
n: An -User- on processe services was
empirical customer influenced
38
analysis friendliness. satisfactio s by all of the
n. independent
variables
measured
(data
security,
customer,
technical
support and
user-
friendliness).
2 Lee, Y. Electronic e-review of 2020 -Airline -To Survey Electr -e- ANOV Challeng The result
1. E. Sun, distributio tourism ticket identify onic distributio A es of showed that
S, Law, n channels research -e- all e- n. channels airlines airlines have
R. and of airline 17(5)722- Distribution electronic distrib -online in a good
Zhong, ticket. 736 channels distributi ution pricing getting relationship
L. -Online on chann strategies competit with selected
travel channels els ive local based
agencies to book advantag online travel
-Cathay airline. e due to agents to
Pacific -Compare internet leverage the
airways. airline services. presence of
ticket the brand
prices through
offered digital
by online intermediarie
travel s. Also,
agents on offering
different cheapest
region. airline ticket
-examine to local
39
online based online
pricing travel agents
strategy can retain
of Cathay local
Pacific customers
airways and maintain
among the existing
different market share.
distributi
on
channel
-
Implicati
on to
suppliers.
2 Alamdari The future Journal of 2006 - -To - -Airlines Delphi The -corporate
2 , F. and of airline air transport Distribution provide Survey Airlin websites fragment will continue
Mason, distributio managemen -GDS an over design es -travel ation of to air their
K. n t -Travel view of - agent airlines concerns
managemen the Travel inventori about the
t change manag - es across lack of
taking ement companies distributi access to
place in compa -GDS on complete
air nies channels travel
distributi - -Corporate . content and
on and global travelers. cost
evaluatio distrib implication
n the ution of changes
impact of syste occurring in
these m the
changes relationship
40
on the (GDS) of airline and
key - travel agent.
stakehold Corpo -airline will
ers. rate continue to
travele use the
rs internet as
tool to
increase
direct online
sales and put
pressure on
intermediarie
s to reduce
fees.
- travel agent
need to build
trust with
their
customers
by ensuring
their content
is reliable to
offer the
cheapest
option on a
consistent
basis.
41
n channels (102) distribution on mer office significantly
in Nigeria channel. channel Travel -Travel influences
Airlines’ adopted agenc agent distribution
distribution by y -Online channel and
challenges airlines in owner shop market share
Nigeria s. in
Regul distributing
atory airline
bodies products and
. market share
Airlin in
e distributing
manag airline
ers products and
services
42
4.2 Distribution of Journals based on research themes
The final journals used for this study were 23 which formed the sample size for this study. The
distribution of journals and conference papers in the study reveals that journals within
management and marketing practices contributed the highest of 39.13% to the extant literature,
tourism and hospitality contributed the second highest percentage of 30.43%, environmental and
pure sciences contributed 21.73% while social sciences and conference paper contributed 4.34%
respectively.
Marketing and
management
39.13%
44
4.3 Distribution of journals based on year of published literature
9
8
8
7
6
6
5
4
4
3
3
2
2
0
2002-2005 2006-2009 2010-2013 2014-2017 2018=2021
From the bar chart showing distribution of years of published literature, it was clearly shown that
publications between the years 2010 -2013 contributed the highest with a frequency of 8.
Publications between the years 2018-2021 contributed the second highest with a frequency of 6.
Year 2014-2017 contributed 4 publications. The year 2006-2009 had 3 publications while the
years 2002-2005 contributed the least with a frequency of 2 to the published literature.
45
4.4 Distribution of Keywords and concept related to study variables
Table 4.2
Distribution of keywords and concepts related to the study variables in the journals
s/n Grouping of keywords and concept Occurrence Cluster Affirmation
46
20 Product quality 9 Marketing performance
classified into distribution strategies, marketing performance and airline. From table 4.2 the
result clearly shows that distribution strategies appeared 13 times with the highest frequency of
24, marketing performance appeared 11 times with the second highest frequency of 15 while
47
4.5 Dimensions of distribution strategies of airlines from extant literature
Table 4.3
Dimensions of distribution strategies of airlines from extant literature
48
penetration and among it
low airline subscribed airlines
competition than a distribution
channel that has
low competition
among its
subscribed airline.
49
-Decentralized between tickets,
franchisee and the season is
structure (selling favorable to the
tickets through aviation industry,
different the decentralized
franchisees) franchisee structure
is the optimum
channel choice for
airlines companies.
8 Cheng, K., Lee, Z-H and -Online travel -Online travel -Findings showed
Klingenberg, B. (2011) in agents agents that consumers
international journal of - Offline travel -Offline travel statistically
business environment 4(1) agents agents preferred offline
63-91 when the trip is
complex or
complicated.
-There is no
significant
difference between
online and offline
travel agencies in
terms of speed,
broader choice and
ease of use.
50
[Link]. website and traditional airlines ticket
corpus:208026650 -Ticket sales travel agent distribution
through both -Airline channel under
airline website website, airline website
and travel agent traditional travel together with
-Ticket sales agent with traditional travel
through airline online travel agent and online
website, agent. travel agent gives
traditional travel large market share,
agent with online profit and sales
travel agent growth.
-Marketing
performance
51
intermediaries.
-By offering
cheapest airline
ticket to local
based online travel
agents can retain
local customers
and maintain the
existing market
share.
14 Rebezova, M., Sulima, N. -Air transport -Zero level It shows that the
and Surinov, R. (2012) in service channel and distribution of air
transport and -Service multi- level passengers
telecommunication. 13(2) distribution channel) transport services
159-166 channel (zero regarding new
level channel and generation network
multi level concept
channel) implementation
strategy has started
to be in use
(2011), Koo, et al (2011), Cheng, et al(2011), Alamdari, (2002), Sabrina and Widodo (2014),
Shon, et al (2003), Qteishat, et al (2014), Lee, et al (2020), Rebezova, et al (2012), Alamdari and
Mason (2005) and Legesse and Obaide (2012) in the exploratory and conceptual studies, it was
revealed that the key underlying dimension of distribution strategies of airline include:
distribution system, global distribution system new entrants, etc.) direct and indirect distribution,
53
virtual and physical channels, integrated structure, common franchisees structure, decentralized
franchisees structure, zero level channel and multi- level channel, travel agent corporate
travelers, e-ticketing, airline retail office or outlet, airport office, high market penetration with
high competition, low market penetration with low penetration. This implies that distribution
strategies can be grouped into direct and indirect distribution channel, online and offline
distribution, single and multi-level distribution channel, virtual and physical distribution channel,
54
4.6 Dimensions of marketing performance of airlines from extant literature
Table 4.4
Dimensions of marketing performance of airlines from extant literature
55
airline
56
-Marketing
performance
(market share,
profit and sales
growth
9 Yoo, E. and Park, S. (2020) in -Social network Customer The study shows
journal of distribution science service satisfaction that service
18(8) 5-14 -customer network and
satisfaction personal
-Personal characteristics
characteristics significantly
impact customer
satisfaction
57
security,
customer and
technical support
and user-
friendliness)
Table 4.4 sorted out underlying dimension of marketing performance base on research question
2. Among the following author(s): kibe et al(2021), Adiele and Etuk (2018), Majid , et al( 2016),
Murty, et al, (2013), Koo, et al (2011), Asiegbu, et al (2012), Sabrina and Widodo (2014), Didia
and Amesi (2018), Yoo and Park (2020), Ejem, et al (2017), Qteishat, et al (2014) and Legesse
and Obaide (2012) in the exploratory and conceptual studies, The following underlying
service quality, efficiency and productivity, consumer loyalty, sales growth, market share,
58
59
4.7 The pattern of relationship between distribution strategies and marketing
performance of airlines from extant literature
Table 4.5
The pattern of relationship between distribution strategies and marketing performance of
airlines from extant literature
2 Koo, B., Mantin, B. and -Online The study showed that airlines are
O’connor, P. (2011) in distribution likely to use online travel agent
journal homepage: strategies platform if they have a large consumer
[Link]/ 32. 69- (single and dual loyalty base or if the online travel agent
74 channel platform is highly competitive to own
approach) large market share and profit.
-consumer
loyalty
3 Sabrina, S. D. and -Ticket sales The result shows that airline ticket
Widodo, E. (2014) in through airline distribution channel under airline
[Link]. website website together with traditional agent
corpus:208026650 -Ticket sales and online travel agent gives enhances
through both sales growth , market share and
airline website improves profit
and traditional
travel agent.
-Ticket sales
through airline
website,
traditional
travel agent
with online
60
travel agents.
-Marketing
performance
5 Legesse, P. and Obaide, A. -Airline retail The findings discovered that each
(2012) in interactive office distribution strategy has its own appeal
aviation management -Airport office to customers as well as its limit in
conference 102-109 -Travel agent terms of effectiveness in service
-Online shop delivery. Also, study revealed that
-Customer customer awareness and perception
awareness and significantly influences distribution
perception channel and market share in
distributing airline products and
services
Table 4.5 identified the pattern of relationship between distribution strategies and
61
3. Koo et al (2011) suggested that there is a relationship between online travel
5. Sabrina and Widodo (2014) indicated that airline websites, traditional agent
and online travel agent has a relationship with sales growth, market share and
profitability.
The findings revealed the underlying dimensions of distribution strategies to include, direct and
indirect distribution strategies, online and offline distribution strategies, single and multiple
distribution strategies, virtual and physical distribution strategies, online travel agent and offline
travel agent distribution strategies. This finding supports the study of Kibe et al (2021) which
views that internet technologies is the best alternative for airline ticket selling, contacting and
also sourcing information for available products and services. It was further affirmed that Kenya
airways sustained their tickets sales performance through alliance. Modern distribution strategies
62
like online travel agents, e-ticketing innovative capabilities provides for easy distribution of
airline product and reduce passenger’s stress, improve profitability and proper management of
various stakeholders interest and desires. Distribution strategies add higher value to service
delivery to airline customers as well as reduce logistics challenges (Sismanidou, et al, 2009).
The study findings uphold the findings by Abdelghany and Abdelghany (2007) which shows that
it is more beneficial for an airline to distribute its tickets in distribution channel that has high
market penetration and high competition among its subscribed airlines than distribution channel
that has low market penetration and low competition among its subscribed airline. The study by
Chen et al. (2011) also further supports the findings of this study that integrated structure is the
5.1.2 Objective 2: What are the underlying dimensions of marketing performance that
affects airline
The exploratory study reveals that sales performance, productivity, consumer loyalty, customer
performance. The finding concludes that these measures are key to enhancing marketing
performance, easiness and speed in obtaining ticket. The finding is consistent with the study by
Adiele and Etuk (2018), Majid and Kaltum (2016), Murty and Goel (2013), Yoo and Park
(2020), which identify customer loyalty, customer satisfaction, customer patronage, profitability,
sales growth and market share as marketing performance. Didia and Amesi (2018) and Asiegbu,
et al (2013) further affirmed the underlying dimensions of marketing performance in their study
when measuring marketing performance (sales growth, market share and profit).
63
5.1.3 Objective 3: What are the pattern of relationship between distribution strategies
The findings reveals a strong pattern of relationship between distribution strategies and
marketing performance through a closes link between (i) internet, alliance and sales performance
(ii) Online distribution and consumer loyalty (iii) Airline website, Airline website and traditional
travel agent, Airline website, traditional travel agent with online travel agent and marketing
performance (i.e. market share, profit and sales growth) (iv) E-ticketing and customer
satisfaction (v) Distribution strategies (retail office, airport office, travel agent, online shop) and
customer perception and awareness. The study revealed that efficiency affects productivity
among airlines; this postulation clearly reflects the underlying dimension of marketing
performance identified in this exploratory studies. Airlines are less likely to use online travel
agent platforms if they have a large consumer loyalty or if they own large market share and
The finding of this study is in line with the findings by Qteishat et al. (2014) which indicate that
customer satisfaction positively relates to e-ticketing services. Airline ticket distribution channel
under and airline website together with traditional travel agent and online travel agent
significantly enhances the market share, profits and sales growth (Sabrina and Widodo, 2014).
Modern technologies cause lot of changes in aviation practices that will proportionally increase
sales growth and profitability (Kibe et al., 2021). Distribution strategies are a necessity in
growing airline business and sales growth. Hence, development of marketing models is a strong
factor in encouraging huge harvest in airline ticketing and sales (Koo et al., 2009). E-
commerce’s growth in airline is a good prospect to developed future business potentials because
64
it provides opportunity for travel agents to own websites for fast stimulation of marketing
6.1 Conclusion
This exploratory study draws 34 journals through Google search, a purposive sampling technique
was adopted to select 23 related journals from the 34 journals. The importance of distribution has
redirected the cause of actions in developing distribution strategies in airline businesses. As such
the findings of this study have exposed key distribution strategies to include; direct and indirect
distribution strategies, online and offline distribution strategies, single and multi-distribution
channel, virtual and physical distribution, etc. Conclusively, the study shows a strong
i. Airline distribution strategy should focus on using brand website, online travel agents,
traditional travel agents and other related service channels to provide speed, ease of use and
ii. Airline should periodically review marketing performance indicators in order to assess
iii. Airline should concentrate on adopting modern distribution strategies (brand websites,
online travel agents, traditional travel agents, etc) in stimulating customer satisfaction, sales
65
This study has contributed towards identifying dimensions of variables and revealed pattern of
The following areas are key for future studies, challenges and emerging issues in airline
66
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