The Effect of Digital Sales on Revenue Maximization: The Case of Ethiopian Airlines
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Date
2021-07
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Addis Ababa University
Abstract
This study analyzed the effect of digital sales on revenue maximization taking the case of Ethiopian
Airlines. The study took the selling function as an extension of the marketing concept as suggested
by Jobber D. and Lancaster G. (2009) where the firm’s and its sales person’s long-term survival is
very much dependent on their ability to identify customer needs and to support customers’
decision-making by serving those products and services that best fit their requirements. The
general objective of this paper was to identify the effect of digital sales on maximizing revenue of
Ethiopian Airlines with the specific objectives being to identify the effect that determinants of
digital sales, namely, digitally connected customers, digital customer relationship management,
product/service offering digitally, and digital delivery of products/services had on maximizing
revenue of the airline. A survey was conducted with a total of 70 employees of the airline working
under the division of Integrated Marketing Communications where the effect of digital sales on
revenue maximization was broken down into four major constituents namely digitally connected
customers, digital customer relationship management, products/services offering digitally, and
digital delivery of products/services and the collected data was analyzed via regression analysis.
The results showed that all of the determinants had a positive and significant effect on the airlines’
revenue maximization except digital delivery of products/services whose influence was found to
be insignificant. In addition, the results demonstrated that product/service offering digitally was
the most important factor influencing the airlines’ revenue maximization followed by digitally
connected customers and digital customer relationship management respectively. It was expected
that the result of this study might be used as a fundamental data in the development of airline
marketing strategies, particularly by investigating the relative importance of each component and
analyzing the effects of each on airline revenue.
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Keywords
sales, Digital sales, static media