COMPETITIVE DIFFERENTIATION STRATEGY OF CEBU PACIFIC AIR TOWARDS PASSENGER LOYALTY

Abstract

In a competitive market, Cebu Pacific Air aims to be the top choice of airline by utilizing differentiation strategy to reduce the pressure by other brands. The airline constantly improves its existing services through introducing new ones to tailor its offerings to the needs of its passengers in order to increase customer satisfaction and loyalty. In this study, the researchers utilized a qualitative case study to prove if Cebu Pacific Air's differentiation strategy applied in their services create impact on the brand loyalty of some of their target market through a set of structured interview questions, as services are seen as a key tool in an airline’s attempt to differentiate itself from its competitors, while customer loyalty may contribute as a competitive advantage for an airline. The result of the interview revealed different factors that lead the passengers to repurchase the same services from the airline, and the impact of Cebu Pacific Air’s services on the loyalty of their customers.