At the beginning of the century, first, it is mentioned by an Italian economist Vilfredo Pareto in order to formulate unequal distribution of wealth and resources in Italy. He finds out that twenty percent of the people owned eighty percent of the wealth. So, this was the base of so called 80/20 principle. Lately in 1940s, Joseph Juran, working on the theory of “vital few and trivial many” studied Pareto’s work and named it as Pareto Principle. He applied Pareto's observations about economics to a broader body of work.Juran's observation of the “vital few and trivial many” states the principle that %20 of something always are responsible for %80 of the results.
Published in Chapter:
Financial Implications of Relationship Marketing in Airline Business
Hasan Dinçer (Istanbul Medipol University, Turkey),
Ümit Hacıoğlu (Istanbul Medipol University, Turkey), and Aydın Özdemir (Beykent University, Turkey)
Copyright: © 2015
|Pages: 43
DOI: 10.4018/978-1-4666-7484-4.ch025
Abstract
Relationship marketing promises a change from vendor, product and price centered marketing concept to a new people, long-term relationships and value centered marketing concept for airline companies in search of a messiah who will rescue them from bleeding to death because of monopolized supply market, duplicated services, financial crises, heavy pressure of competition and low profit margins. In this chapter, definitions and short background of relationship marketing are revised by focusing on components of the concept and relations with customer loyalty, customer value and basic notions. A glance at the airline industry takes place with a focus on relationship marketing and airline business on the basis of implication aspects such as frequent flyer programs, global distribution systems and internet. Specifically, domains of relationship marketing concept on the airline business are analyzed in detail specific to cost and profitability balance.