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Seminar Presentation

The seminar presentation by Eka Umoren focuses on the distribution strategies and marketing performance of domestic airlines, highlighting the importance of effective distribution in enhancing customer satisfaction and business growth. The study identifies a strong relationship between distribution strategies and marketing performance, recommending that airlines adopt modern distribution methods to improve profitability and service delivery. The research utilizes exploratory design and meta-analysis of existing literature to support its findings and objectives.
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0% found this document useful (0 votes)
160 views76 pages

Seminar Presentation

The seminar presentation by Eka Umoren focuses on the distribution strategies and marketing performance of domestic airlines, highlighting the importance of effective distribution in enhancing customer satisfaction and business growth. The study identifies a strong relationship between distribution strategies and marketing performance, recommending that airlines adopt modern distribution methods to improve profitability and service delivery. The research utilizes exploratory design and meta-analysis of existing literature to support its findings and objectives.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

A

SEMINAR PRESENTATION

ON

DISTRIBUTION STRATEGIES AND MARKETING PERFORMANCE OF


DOMESTIC AIRLINES: A CONCEPTUAL ANALYSIS

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

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A


MASTER OF SCIENCE ([Link]) DEGREE IN MARKETING

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

This seminar paper is dedicated to God Almighty.

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

LIST |OF TABLES vii

LIST OF FI|GURES viii

1.1 Background to the study 1

1.2 Statement of the problem 3

1.3 Objective of the study 4

1.4 Significance of the study 4

1.5 Scope of the study 5

1.6 Limitation of the study 5

1.7 Operational definitions of terms 5

2.0 Literature review 6

2.1 Theoretical framework 6

2.2 Conceptual framework 8

2.3 Empirical review 12

3.0 Research methodology 16

3.1 Research design 16

v
3.2 Research philosophy 16

3.3 Research approach 17

3.4 Research area 17

3.5 Population of the study 17

3.6 Sample size 17

3.7 Sources and methods of data collection 19

4.0 Result and finding 21

4.1 Literature review table 21

4.2 Distribution of Journals based on research themes 44

4.3 Distribution of journals based on year of published literature 45

4.4 Distribution of Keywords and concept related to study variables 46

4.5 Dimensions of distribution strategies of airlines from extant literature 48

4.6 Dimensions of marketing performance of airlines from extant literature 55

4.7 The pattern of relationship between distribution strategies and marketing

performance of airlines in extant literature 59

5.1 Discussion of findings 61

6.1 Conclusion 64

6.2 Recommendations and suggestion for further studies 64

6.3 Contribution of the study 65

6.8 Future study 65

REFERENCES 66

vi
LIST OF TABLES

Table 4.1: Literature review table 21

Table 4.2: Distribution of keywords and concepts related to the study variables in the journals 46

Table 4.3: Dimensions of distribution strategies of airlines from extant literature 48

Table 4.4: Dimensions of marketing performance of airlines from extant literature 55

Table 4.5: The pattern of relationship between distribution strategies and marketing

performance of airlines from extant literature 59

vii
LIST OF FIGURES

Fig: 1: Prisma flow chart 18

Fig. 2: The distribution of journals based on research theme 44

Fig. 2: Distribution of journals based on year of published literature 45

viii
Distribution Strategies and Marketing Performance of Domestic Airlines: A Conceptual
Analysis.

1.1 Background to the study

No product is beneficial until it is in the hands of the consumers. Distribution plays

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

that function that supplies customers’ requirements satisfactorily.

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

right ownership, place and time utility (Singh, 2016).

Distribution strategies equally perform the function of customer interface. Customer

interface simply means the interaction or communication between distribution company and

the customers. The importance of customer interface cannot be overemphasized. This is

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

effectively and efficiently. This is advantageous to the continuous dialogue of transaction

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

distribution company a margin of profit.

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

competition for customers intensified resulting in many airlines to adopt cost-cutting

measures that would make companies operations sustainable and profitable.

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

travel services (Uhuegho, Nwokocha & Olaniyi, 2014).

Marketing performance is vital in establishing return on investment, sales growth and

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

dimensions of distribution strategies and marketing performance and pattern of relationship

between both.

1.2 Statement of the problem

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

vital in ensuring a turnaround in the development of competitive advantages to add value to

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

intensify competition in the industry and high marketing performance.

This study intend to explore the underlying dimensions of distribution strategies and

marketing performance as well as explore the relationship pattern between distribution

strategies and marketing performance in the extant literature.

1.3 Objective of the study

The broad objective of the study was to explore distribution strategies and

performance of domestic airlines. The specific objective include; to

i. explore the underlying dimensions of distribution strategies of airlines from extant

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

performance of airlines in extant literature

1.4 Significance of the study

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

modern practices globally.

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

knowledge and equally serve as an area for future research.

1.5 Scope of the study

The study scope was restricted to domestic airlines and the focus on distribution

strategies and marketing performance. Furthermore, the scope identifies related dimensions

and pattern of relationships between distribution strategies and marketing performance in

extant literature.

1.6 Limitation of the study

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.

1.7 Operational definitions of terms

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

condition at reduced cost.

Strategy: It is the roadmap, plan, or framework for getting a specific result

5
Marketing: It refers to the activities a company undertakes to accelerate the buying or selling

of a product or service to customers’ satisfaction.

Performance: It is the level of goal attainment accompanied by results.

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

2.0 Literature review

2.1 Theoretical framework

2.1.1 Technology acceptance theory

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

that propels users to accept any technology.

The behavioural intention is underlined is influenced by the attitude which is the

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.

6
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

technologies to distribute their products to various customers or passengers in heterogeneous

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.

2.1.2 Theory of strategic turnaround

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

insolvency. Operating turnaround strategies are focused at contending with economic

recession through cost maneuver, increasing or generating revenues, reducing assets or a

7
combination of these approaches. These strategies display different levels of severity of

operating circumstances and the strategy involves cutback on discretionary expenses.

This strategy is carried out by companies that are operating below the equilibrium

point and need to improve on their profitability.

2.2 Conceptual framework

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

established channels of distribution.

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

designed for achieving mapped out goals for an organization.

2.2.3 Distribution strategies

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

air passengers or customers.

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

advancement in technology, airlines distribute company’s product directly to customers

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

transaction can take place.

2.2.4 Distribution strategies in airlines.

Basically, there are direct and indirect distribution strategies in air travel. Srivaslava

(2018) states that traditionally, airlines follow two different distribution strategies namely

direct and indirect strategies.

Direct distribution strategy is used by airlines to sell travel tickets directly to

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,

mobile app, phone calls , social media among others.

Indirect distribution strategy is used by airlines to distribute travel offers through

intermediaries. Indirect distribution channels includes physical travel agents, online travel

agents, internet booking engines, code sharing agreement, travel management companies,

Global distribution system (such as Sabre, Amadeus, Travelport) among others.

With the emergence of the internet and related technologies, there are remarkable

improvements in distribution of air travel services. The internet has demonstrated a

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

intermediary with valuable data about demographics of the passengers.

2.2.5 Marketing

There are many definition of marketing but the study mentions few. Nnabuko (2016)

views marketing to means all business activities involved in identification, conceptualization

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

beneficial exchanges with target markets.

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

high priority actions assisting in engaging and managing organization’s operation.

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).

2.2.7 Marketing performance conceptualized

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

quality, return on investment, profitability, corporate image, industry harmony, customer

satisfaction, customer loyalty, new product success.

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

and place with ease of transaction procures.

2.2.8 Distribution strategies and marketing performance of domestic airline

Distribution strategies are unified designs or processes of action intended to provide

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

with customer requirement.

The importance of distribution strategies to airlines cannot be over emphasized. This is

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

the right and at the right location needed for it.

11
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

and direct access without bottlenecks.

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

performance indicators contribute immensely to domestic airline survival and sustainability.

2.3 Empirical review

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

sales performance through internet and alliance.

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

12
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

customers and maintain the existing market share.

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

airlines on the instruments for measurement of domestic airlines performance. 41 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.

Additionally, distribution helps to overcome length of delay and increase punctuality.

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

willing to spend more time searching for tickets.

Legesse and Obaide (2012) studied on Customer perception of airline distribution

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

Cheng and Klingenberg (2011) study on consumer’s perspectives on selection of air

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

trip is complex or complicated by 35% than online. There is no significant difference

14
between online and offline travel agencies in terms of speed, broader choice and ease of use

at 0.475 (P< 0.05).

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

airline companies in most situations. However, if there is intense competition between

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

factors that prompt airlines adopting a single-channel approach of ticket distribution. It

analyses several factors that an airline decide to ticket through an online travel agent platform

or owned websites. It examined the complicated process airline’s navigate in choosing a

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.

3.0 Research methodology

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

to guide the conduct of the study appropriately.

3.1 Research design

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

approach would be developed.

3.2 Research philosophy

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

advances a particular research in the best acceptable way.

3.3 Research approach

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

related literature in the study area.

3.4 Research area

The research area was on aviation industry. Specifically, domestic airlines on

distribution strategies and marketing performance.

3.5 Population of the study

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.

3.6 Sample size

The Preferred Reporting Items for Systematic and Meta-analysis (PRISMA) flow

chart provides three steps in arriving at the final sampling size which are:

- Records screened based on title

- Record screened based on abstract and keywords

- Full text articles assessed for eligibility

The study designs the PRISMA chart as follows:

17
Goggle scholar (from
2002 to 2021)

n = 441,000

Articles excluded based on


Articles Inclusive based title not relevance to
on title relevance to research topic
research topic n = 432,750
n = 8,250

Number of Articles Number of Articles


inclusive based on excluded based on abstract
abstract and keywords and keywords
n = 45 n = 8,205

Full text articles


assessed for eligibility Full text articles assessed for
N = 34 eligibility
n = 11

Reasons:
Language = 1
Out of scope = 6
Final sample size No citations = 1
n = 23 Limited relevance = 1
Publication status = 2

Fig: 1 PRISMA flow chart


Source: Researcher developed model

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.

3.7 Sources and methods of data collection

3.7.1 Description of the search strategy for the literature

(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:

“distribution strategies of airlines’’, “marketing performance of airlines’’, “distribution

strategies and marketing performance of airlines’’.

(ii) Pool of literature according to search keywords: The search keywords generated a vast

pool of relevant literatures through exploring numerous journals including Journal of

Information Systems and Technology [JIST], Journal of Distribution Science [JDS],

[Link], International Journal Revenue Management [IJRM], African Journal of Business

Management [AJBM], Universal Journal of Management [UJM], International Journal of

Marketing Research and Management [IJMRM], Journal of Industrial Engineering and

Management[JIEM], American International Journal of Contemporary Research [AIJCR],

Journal of Air Transport Management [JATM], International Journal of Business

19
Environment [IJBE], International Conference on Science, Technology, Education, Arts,

Management and Social Sciences [ICSTEAMS], E-review of Tourism Research [ERTR],

Transport and Communication [TC], Global Journal of Engineering Science and Research

Management [GJESRM], African Journal of Hospitality, Tourism and Leisure [AJHTL],

International Journal of Economics, Commerce and Management [IJECM], Journal of

Tourism and Hospitality Management [JTHM], Journal homepage: [Link],

[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.

2 Majid, S. The Internationa 2016 - To obtain Survey 41 - Delphi Fundam -Easiness


A., measurem l journal of Measureme a design expert Measurem method ental and speed in
Sucherly ent scale economics nt design, consensus s in ent scale weaknes obtaining
and for commerce airline from aviatio - s in ticket
Kaltum, Indonesia’ and business, experts in n both performan safety indicates
U. s domestic managemen airline on in ce(service perform good
airlines t 4(2) 388- -safety the acade quality) ance and performance
performan 410. performanc instrumen mics economi s
ce. e, financial ts for and c -distribution
performanc measure practit perform helps, to
e ment of ioners ance overcome the
domestic length of
airlines delay and
performa increases
nce punctuality.

3 Sizmanid Progress Journal of 2009 -Travel -To - 6 -ICT Delphi -Failure


ou, A., in airline industrial reservation explore expert (Global method to -Introduction
Palacios, distributio Engineering the distributio provide of innovative

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.

5. Hammou Developm Journal of 2018 -New -To - - -Direct and - - Implementati


d, G.A, ent of tourism and distribution determine indirect Complic on of
Tawfik, airlines’ hospitality capability distributi distributio ation of distribution
H. F. and distributio managemen - on n the capabilities
Fahmy, n personalizat capabiliti airline technology

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.

8 Koo,B. Online Journal 2011 - To Observati - -Online - The high - Findings


Martin, distributio homepage; Distribution determine on Travel distributio expenses revealed that
B. and n of airline [Link] strategy. factors approach agenci n (Single incurred airlines are
O’Conno tickets: [Link]/ -Online that es and and dual when less likely to
r, P. should locate/ travel prompts airline approach) tickets use online
airlines tourman. agency. airlines s - consumer are travel agent
adopt a -market adopting loyalty distribut platforms if
single or a competition a single ed they have
multi- . channel through large
channel approach online consumer
approach? of ticket travel loyalty base
distributi agencies which result
on. . in large
-to market share
analyzes and profit or
several if the online
factors platform is
that affect highly
an airline

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.

2 Legesse, Customer Internationa 2012 Airline To survey Airlin -Airline Consumer


3 P. and perception l aviation distribution examine e retail perception
Obaide, of airline managemen channel. the custo office and
A. distributio t conference Optimum distributi -Airport awareness

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%

Tourism and Environmental and


hospitality computer sciences
30.43% 21.73%

Social sciences Conference


4.34% papers 4.34%

Fig: 2 The distribution of journals based on research theme


Source: Researcher, 2021

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

Fig. 3: Distribution of journals based on year of published literature


Source: Researcher, 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

1 Ticket sales 7 Distribution strategies

2 Travel agencies 9 Distribution strategies

3 Airline (Nigerian domestic airlines) 14 Airline

4 Internet booking 6 Distribution strategies

5 Air travel market 10 Distribution strategies

6 Distribution channels 24 Distribution strategies

7 safety performance 4 Marketing performance

8 Productivity 15 Marketing performance

9 Cost cutting 4 Distribution strategies

10 Information and communication 8 Distribution strategies


technology

11 Travel reservation system 5 Distribution strategies

12 Global distribution system 3 Distribution strategies

13 Itinerary choice 2 Distribution strategies

14 Revenue management 4 Marketing performance

15 Personalization 2 Marketing performance

16 New distribution capability 7 Distribution strategies

17 Pricing / price advantage 8 Marketing performance

18 Financial management 3 Marketing performance

19 Airline image 2 Airline

46
20 Product quality 9 Marketing performance

21 Personnel competence 5 Marketing performance

22 Physical evidence 3 Distribution strategies

23 Inflight services 4 Airline

24 Post flight reception 2 Airline

25 On board comfort 4 Airline

26 Sales growth 9 Marketing performance

27 Market share 10 Marketing performance

28 Customer satisfaction 9 Marketing performance

29 New generation network 2 Distribution strategies

30 Load factor/ seat factor 1 Airline

Source: Researcher, 2021


The study analyzed the keywords and concepts related to the study variables which were

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

airline appeared 6 times with the least frequency of 14.

47
4.5 Dimensions of distribution strategies of airlines from extant literature

Table 4.3
Dimensions of distribution strategies of airlines from extant literature

S/N Author(s)/Journal Variables Dimension Findings

1 Kibe, J., Ogutu, H. and -Yield -Internet - it was revealed


Kasanzu, W. (2021) management -Alliance that airline use
universal journal of -Internet internet to provide
management. 9(2) 52-61 -Alliance access to travelling
-Sales customers through
performance physical avenues
and company
website. Internet
technologies are
the best alternative
for airline ticket
selling, contacting
and also source of
information. Also,
Kenya airline
sustained their
ticket sales
performance
through internet
and alliance.

2 Sismanidou, A. Palacios, Information Global Introduction of


M. and Tafur, J. (2009) in communication distribution innovation
Journal of industrial system (GDS), global technology added
engineering and distribution higher value to
management.2(1) 251-272 system network service of
entrants (GNEs) customer.

3 Abdelghany, A. and Distribution -High market The result show


Abdelghany, K. F. (2007) channels with penetration and that it is more
in international journal high market high beneficial for an
revenue management. 1(3) penetration and competition. airline to distribute
230-246 high competition -Low market its tickets in a
among subscribe penetration and distribution
airline. low Airline channel that has
-Distribution competition high market
channels with penetration and
low market high competition

48
penetration and among it
low airline subscribed airlines
competition than a distribution
channel that has
low competition
among its
subscribed airline.

-it shows that


airlines lower load
factors when a
limited number of
itineraries are
displayed through
the distribution
channel

4 Hammoud, G. A., Tawfik, -Direct and Airline Implementation of


H. F. and Fahmy, R. S. indirect Distribution distribution
(2018) in journal of capabilities. capabilities capabilities
tourism and hospitality -Traditional technology
management. distribution enhances airline
capabilities. distribution
Innovation strategies.
capabilities

5 Udjo, O., Lubbe, B. and Optimum time to -Online The result


Douglas, A. (2013) in purchase -Offline indicated that not
[Link]/ertr/files/ Distribution only are internet
channel (online channels being
and offline) used more, but
airline website is
the preferred
channel.

6 Chen, Y., Huang, S. and -Integrated -Integrated Finding revealed


Chiu, F. (2011) in African structure structure that integrated
journal of business (selling tickets -Common structure is the
management. 5(22) 9748- through company franchisee optimum channel
9759 channels) structure choice for airline
-Common -Decentralised companies in most
franchisee franchise situations.
structure (selling structure However, if there
tickets through a is intense
common competition
franchisee) between
franchisees and

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.

7 Koo, B., Mantin, B. and -Online Online Findings revealed


O’connor, P. (2011) in distribution distribution that airlines are
journal homepage: ( single and dual likely to use online
[Link]/ 32. approach) travel agent
69-74 platforms if they
have large
consumer loyalty
or if the online
platform is highly
competitive to own
large market share
and profitability.

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.

9 Alamdari, F. (2002) in -Airline -Travel agents -The study shows


journal of air transports -Travel agents that bypassing
management. 8(5) 399- agents has not been
348 successfully
possible

10 Sabrina, S. D. and -Ticket sales -Airline website -The result


Widodo, E. (2014) in through airline -Airline website revealed that

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

11 Shon, Z-Y., Chen, Y-F. -E-commerce -Virtual The study revealed


and Chang, Y-H. (2003) -Ticketing channels that virtual
in journal of air transport channels (virtual -Physical channels are good
management 9(2003) and physical) channels enough to
325-331 dominate the
market but the
traditional channels
also have their own
niche in some
specific segments

12 Qteishat, M. K.,Alshibly, -E-ticketing -E-ticketing Finding indicates


H. H. and Al-ma’aitah, M. technique technique that customer
A. (2014) in journal of -Customer satisfaction with e-
information systems and satisfaction ticketing services
technology. 11(3) was influenced by
all the independent
variables measured
(data security,
customer and
technical support
and user-
friendliness)

13 Lee, Y. E. and Sun, S. and -E-distribution E-distribution The result showed


Law, R. (2020) in e- channels channels (online that airlines have a
retrieve of tourism -Online pricing travel agents good relationship
research. 17(5) 722-736 strategy and meta- with selected local
search) based online travel
agents to leverage
the presence of the
brand through
digital

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

15 Alamdari, F. and Mason, -Airline websites -Airline -Corporate


K. (2006) in journal of air -Travel agents -Travel agent travelers will
transport management. 1- -Global -Corporate continue to air their
13 distribution Travellers concern about the
system lack of access to
-Corporate complete travel
travelers content and cost
implication of
changes occurring
in the relationship
of airlines and
travel agents.
-Airline will use
the internet tool to
increase direct
online sales and put
pressure on the
intermediaries to
reduce fees.
-Travel agent need
to build trust with
their customer by
ensuring their
content is reliable
52
and to offer the
cheapest options on
consistent bases

16 Legesse, P. and Obaide, -Airline retail -Airline retail The findings


A. (2012) in interactive office office discovered that
aviation management -Airport office -Airport office each distribution
conference 102-109 -Travel agent -Travel agent has its own appeal
-Online shop to customers as
-Customer well as its limit in
perception terms of
/awareness 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

Source: Researcher, 2021


Table 4.3 sorted out underlying dimensions of distribution strategies based on research

question 1. Among the following authors; Kibe, et al (2021), Simanidou, et al (2009),

Abdelghany and Abdelghany (2007), Hammoud, et al (2018), Udjo, et al (2013), Chen, et al

(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:

information communication technology (internet , website, online travel agent, global

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,

and online travel agent and offline travel agent.

54
4.6 Dimensions of marketing performance of airlines from extant literature

Table 4.4
Dimensions of marketing performance of airlines from extant literature

S/N Author(s)/Journal Variables Dimensions Findings


1 Kibe, J., Ogutu, H. and Yield Sales - it was revealed
Kasanzu, W. (2021) universal management performance that airline use
journal of management. 9(2) -Internet internet to provide
52-61 -Alliance access to
-sales travelling
performance customers
through physical
avenues and
company website.
Internet
technologies are
the best
alternative for
airline ticket
selling, contacting
and also source of
information.
-Kenya airline
sustained their
ticket sales
performance
through internet
and alliance.

2 Adiele, K. C. and Etuk, S. G. -Perceived Customer -Perceived airfare


(2018) in African journal of airlines fairness. patronage fairness does not
hospitality, tourism and -customer significantly
leisure 7(1) 1-11 patronage affect domestic
airline patronage
in Nigeria.

3 Majid, S. A., Sucherly and -Measurement Service quality Easiness and


Kaltum, U.(2016) in scale speed in obtaining
international journal of -Airline ticket indicates
economics, commerce and performance good performance
management 4(2) 388-411 (service quality) in serving
customers among
Indonesia’s

55
airline

4 Murty, A., Kiran, T. and -Efficiency - Efficiency -The study found


Goel, N. (2013) in -Productivity -Productivity a negative
international journal of between rate of
engineering and management airline expansion
research 3(6) 37-46 and total factor
productivity.
-efficiency
affects
productivity
growth

5 Koo, B., Mantin, B. and -Online Consumer Findings revealed


O’connor, P. (2011) in distribution loyalty that airlines are
journal homepage: (single and likely to use
[Link]/ 32. 69-74 dual channel online travel
approach) agent platforms if
they have large
- consumer consumer loyalty
loyalty or if the online
platform is highly
competitive to
own large market
share and profit.

6 Asiegbu, I. F., Igwe, P. and -Physical -Sales growth Physical evidence


Akekue-Alex, N. (2012) in evidence -Market share affects marketing
American journal of -Sales growth -Profitability performance
contemporary research. 2(12) -Market share measures.
135-149 -Profitability

7 Sabrina, S. D. and Widodo, E. -Ticket sales Marketing The result shows


(2014) in through airline performance that airline ticket
[Link]. website (sales growth, distribution
corpus:208026650 -Ticket sales profit and channel under
through both market share) airline website
airline website together with
and travel agent traditional travel
-Ticket sales agent and online
through airline travel agent give
website, the best market
traditional share, profit and
travel agent sales growth.
with online
travel agent

56
-Marketing
performance
(market share,
profit and sales
growth

8 Didia, J. U. D. and Amesi, P. -Focus strategy -Sales growth There is a strong


C. (2018) in International - Sales growth -Market share positive
journal of marketing research - Market shares relationship
and management, 8(4) 6-18 between focus
strategy and
marketing
performance
measures (sales
growth and
market share)

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

10 Ejem, E. A., Ekeugo, C. U., Determinant of Determinants The critical factor


Dike, D. N., Chukwu, O., airlines of airlines affecting airline
Igboanusi, C. C., Erumaka, O. productivity productivity productivity in
(2017) in global journal of Nigeria is sincere
engineering science and and responsive
research management. 4(12) attitude to
7-13 passengers
request and
complaint and
success to
complete a trip

11 Qteishat, M. K., Alshibly, H. -E-ticketing Customer Finding indicates


H. and Al-ma’aitah, M. A. technique satisfaction that customer
(2014) in journal of -Customer satisfaction with
information systems and satisfaction e-ticketing
technology. 11(3) services was
influenced by all
the independent
variables
measured (data

57
security,
customer and
technical support
and user-
friendliness)

12 Legesse, P. and Obaide, A. -Airline retail -Customer - The findings


(2012) in interactive aviation office awareness discovered that
management conference 102- -Airport office -Customer each distribution
109 -Travel agent perception has its own appeal
-Online shop to customers as
-Customer well as its limit in
awareness and terms of
perception 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

Source: Researcher, 2021

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

dimension of marketing performance were identified, sale performance, customer patronage,

service quality, efficiency and productivity, consumer loyalty, sales growth, market share,

profitability, customer satisfaction, customer awareness and perception.

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

S/N Author(s) Variables Findings


1 Kibe, J., Ogutu, H. and Yield It was revealed that airline use internet
Kasanzu, W. (2021) management to provide access to travelling
universal journal of -Internet customers through physical avenues
management. 9(2) 52-61 -Alliance and company website. Internet
-Branding technologies are the best alternative for
-sales airline ticket selling, contacting and
performance also source of information. Also,
Kenya airline sustained their ticket
sales performance through internet and
alliance.

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

4 Qteishat, M. K., Alshibly, -E-ticketing The findings indicate that satisfaction


H. H. and Al-ma’aitah, M. technique with e-ticketing service was influenced
A. (2014) in journal of -Customer by all of the independent variables
information systems and satisfaction measured (data security, customer and
technology. 11(3)1-12 technical support and user friendliness)

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

Source: Researcher, 2021

Table 4.5 identified the pattern of relationship between distribution strategies and

marketing performance as follows.

1. Kibe et al (2021) revealed that there is a relationship between airlines websites

through the internet and market share.

2. Kibe et al (2021) indicated that there is a relationship between physical avenue

and increase in sales of tickets.

61
3. Koo et al (2011) suggested that there is a relationship between online travel

agent and consumer loyalty.

4. Koo et al (2011) identified that there is a relationship between online travel

agents and large market share and profitability.

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.

6. Qteishat et al (2014) reported that there is a relationship between e-ticketing

and customer satisfaction.

7. Legesse et al (2012) submitted that distribution strategies have relationship

with customer appeal.

8. Legesse et al (2012) showed that the choice of distribution strategies is

affected by the level of customer awareness and perception which affects

market share of airlines.

5.1 Discussion of findings

5.1.1 Objective 1: Underlying dimensions of distribution strategies in extant literature.

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

optimum channel choice for airline companies in most situations.

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

satisfaction, customer patronage, efficiency, productivity, sales growth, market share,

profitability, customer awareness and perception as key underlying dimensions of marketing

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

and marketing performance?

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

profitability (Koo et al., 2009).

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

performance (Adiele and Etuk, 2018)

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

relationship between distribution strategies and marketing performance.

6.2 Recommendations and suggestion for further studies

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

relevant technologies to assist customer’s booking.

ii. Airline should periodically review marketing performance indicators in order to assess

attainment of the organization objectives and goals

iii. Airline should concentrate on adopting modern distribution strategies (brand websites,

online travel agents, traditional travel agents, etc) in stimulating customer satisfaction, sales

growth, market share, profitability and quality service delivery to customers.

6.3 Contribution of the study

65
This study has contributed towards identifying dimensions of variables and revealed pattern of

relationship among variables (distribution strategies and marketing performance).

6.8 Future study

The following areas are key for future studies, challenges and emerging issues in airline

practices, challenges of implementing modern marketing techniques in airline industry.

66
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