Impact of Relationship Marketing on Businesses

This assignment delves into the crucial role of relationship marketing in contemporary business. It examines how effective implementation of relationship marketing strategies can contribute to increased customer loyalty, improved brand reputation, and ultimately, a sustainable competitive edge. The analysis considers various aspects of relationship marketing, including its impact on customer retention, building strong customer relationships, and creating value for both businesses and their customers. The assignment draws upon relevant research studies, real-world examples, and theoretical frameworks to provide a comprehensive understanding of the subject.

Running Head: Business Research
The Role of Relationship Marketing in Maintaining Competitive Advantages-
Finn Air and Cathay Pacific Airways

Business Research 1
Table of Contents
Introduction......................................................................................................................................2
Project Objective.............................................................................................................................3
Project Scope...................................................................................................................................4
Literature Review............................................................................................................................5
Research Questions/Hypothesis.......................................................................................................6
Research Design and Methodology.................................................................................................7
Research Limitations.......................................................................................................................9
Time Schedule (Research Plan).....................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
Appendix........................................................................................................................................14

Business Research 2
Title: The Role of Relationship Marketing in Maintaining Competitive Advantages- Finn Air
and Cathay Pacific Airways
Introduction
This research has been started with an objective to enhance the knowledge regarding the role and
importance of relationship marketing in maintaining a competitive advantage over the others in
the industry. For the purpose of standing in the consumer market, companies need to adopt
effective approaches for attracting the customers. The focus of the companies is on enhancing
the quality of the services and products for gaining competitive advantage and expansion of the
customer base. A good relationship with the customers is an essential element on which
performance and sales of the business are based on (Rahman & Masoom, 2012). Competition in
the airline industry is increasing which has increased the need to develop a healthy relationship
with the customers. Relationship marketing focuses on the customer satisfaction, customer
defection and retaining the customers for developing loyalty among the customers. With the
increase in the number of companies operating in the Airline industry, competition is increasing.
This has increased the need for effective relationship marketing for the companies (Wanjau,
2013).
The focus of this research program will be on analyzing the importance of relationship
marketing and impact of relationship marketing on the satisfaction level of the customers.
Analysis of the data collected will be done by applying different methods or approaches.

Business Research 3
Project Objective
Objectives are set with a motive to form a base for the purpose of data collection process. The
objective of this research program is to develop knowledge of the role of relationship marketing
in maintaining competitive advantages. Relationship marketing has played a crucial role in the
airline industry as the satisfaction of the customer is dependent on the quality of the services
offered to them. Critical analysis will be done of the different articles, journals, books and other
secondary sources so as to understand the knowledge of the research topic and different aspects
related to the research.

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Project Scope
Customer satisfaction level is an important element which determines the chances of growth and
success of the business. The scope of the project has been defined so as to provide a guide to the
research in the right direction. This research program will cover analysis of the role of
relationship marketing and its increasing popularity in the dynamic business environment. For
the collection of the data regarding the research topic, different approaches have been chosen.

Business Research 5
Literature Review
In the words of Bazinia, et. al. (2012), Rrelationship marketing can be explained as an approach
used by the organizations for the purpose of developing customer loyalty, interacting with the
customers and enhancing their satisfaction level. For the purpose of gaining a competitive
advantage over the others in the airline industry, Finn Air airways and Cathay Pacific Airways
have adopted relationship marketing. An emotional connection is developed between the
organization and customers with the help of relationship marketing. Relationship marketing is
considered crucial for the purpose of quality of the relationship, value, and service.
According to Githaiga (2013), satisfaction among the customers helps in enhancing the
chances of growth and survival of the company. Impact of the relationship marketing can be seen
on the long-term profitability of the company. An organization has to fulfill its responsibility
towards the different partners including customer, internal partners, external partners, and
suppliers. For the attainment of the long-term growth, both Finn Air and Cathay Pacific are
focusing on interacting with the customers for developing a healthy relationship (Peng & Wang,
2010).
The trained staff has been appointed for assisting the customers. Customer loyalty is an
essential aspect which is developed on the basis of the relationship marketing. For developing a
positive attitude among the customers towards the company, there is a need to adopt relationship
marketing (Sammut, 2011). Quality services are being offered by the companies for enhancing
the customer base and retaining the existing customers (Maina, 2016).

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Relationship marketing plays a vital role for the airlines industry. Different strategies are
being adopted by the different organizations for meeting the expectations of the customers and
establishing healthy relationship with the customers. Cathay Pacific has adopted a customer
oriented cost strategy for meeting the needs or desires of the customers. Finnair and Cathay
Pacific need to analyze the factors which are contributing to customer defection. Finnair is
offering different types of memberships to its customers for providing them benefit as well as
developing large customer base (Rahman & Masoom, 2012).
Customer loyalty is an essential element which shows the level of trust in the brand.
Finnair is conducting events for appreciating loyalty among the customers. On the contrary,
focus of Cathay pacific is on building customer supplier relationship by applying CRM
approaches. Personal information regarding the customers is assembled with the help of CRM
campaigns. E-CRM approaches are also being used by the organizations for reaching out the
customers (Tung & Yu, 2013).

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Research Questions/Hypothesis
Research has been initiated for the assembling of the data regarding the importance of
relationship marketing and its impact on the customer loyalty. Information will be assembled on
the basis of the research questions formulated. Research questions for the research program are
listed below:
Primary Question
 What is the role of relationship marketing in maintaining competitive advantages over the
others in the industry?
Secondary Questions
 What are the impact of relationship marketing on the satisfaction level and loyalty among
the customers?
 Which factors help in building satisfaction level and loyalty among the customers?

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Research Design and Methodology
Research methodology section defines the various approaches or methods which are adopted by
the researcher with a motive to assemble quality data. Research programs are conducted with a
motive to assemble data and presenting different facts related to the research topic. This research
program has been carried out with a motive to gain knowledge of the role played by relationship
marketing in maintaining a competitive advantage for the firms in the competitive business
environment. Different approaches will be chosen on the basis of the requirement of the research
program. These approaches will contribute towards the collection of the relevant data for the
research.
Research Design or method: there are various methods or designs available which are adopted
by the researchers for their research. The motive behind the selection of the method is to
maintain the quality of the research program. Qualitative research method will be used for the
accumulation of the relevant data for the research (Terrell, 2012). Qualitative research method
has been chosen with a motive to provide insight of the problem or the aspect in a better manner
for developing knowledge. Trends or opinions will be uncovered with the help of qualitative
research method. Qualitative research method uses unstructured or semi-structured techniques
for the assembling of data (Acaps, 2012).
Research approach: qualitative approach has been selected after the analysis of different
approaches. The reason behind the selection of this approach is to ensure that the required data is
assembled for this research program. The qualitative approach uses primary and secondary data
for the execution of the research program (Smith, 2015). Both these sources are effective in
collecting quality data and maintaining the reliability and authenticity of the data collected.

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Data collection: data collection is the process of assembling of the required information with the
help of different sources of data collection. Numerous methods or sources are present which can
be used for the assembling of the required information. Data in this research program will be
accumulated by applying primary and secondary sources. Primary data is assembled with a
motive to gather raw form of data directly from the respondents, especially for the research.
Quality of primary data may get affected due to the biasedness and judgment of the respondents
(Lowry, 2015). Due to these reasons, primary data is considered less reliable and authentic.
Primary data can be assembled with the help of questionnaire or interview (Thomas, 2015). The
questionnaire will be used for fulfilling the objective of data collection for the research.
Secondary data is assembled with the help of the second-hand sources which has already been
assembled and used by others for their work (Turkenburg & McAuley, 2013). This form of data
is more reliable and authentic as it has been already used. Sources for the collection of secondary
data include internet sources.
Sampling method: sampling methods are used for the analysis of the data within the limited
time allocated for the completion of the research. Data assembled will be available in large
quantity and for the analysis and evaluation of the assembled data, random sampling technique
has been chosen. According to random sampling technique, equal chance needs to be allocated to
every sample for getting selected for the analysis process (Nishad & Sankar, 2016). This
approach is considered reliable as the data analysis process takes place without any biasedness
(Alvi, 2016).
Research strategy: strategies are adopted by the researcher for the completion of the research in
a better manner and attaining the desired outcomes from the execution of the research. A

Business Research 10
sequential strategy has been chosen for the execution of this research program. This strategy will
ensure that the research is being conducted as per the plans formulated.
Targeted market: there is a need to identify the target market so as to identify the source from
where data has to be assembled for the research. Primary data for this research program has to be
assembled with the preparation of a questionnaire. The questionnaire will be presented to the
employees for collecting data. For the accumulation of secondary data, Internet sources will be
accessed and data will be collected from those internet sources. For maintaining the authenticity
of the data, internet sources will be used which have been issued after the year 2010.
Timeframe: timeframe can be defined as the time period in which researcher has to complete
the research program. It is essential to execute the research program within the allocated time
period. This maintains the relevance of the collected data and helps in meeting the objective of
the research well on time.
Ethical considerations: ethics are the guides which provide direction to the actions in right
manner and performing the actions in a fair manner without creating harm to the interest of
others. Ethical considerations play a vital role as these shapes the execution process of the
research by complying with the values including confidentiality, honesty, integrity, and
unbiasedness.

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Research Limitations
Limitations are those issues or challenges which are being faced by the researcher during the
execution of the research program. Limitations need to be dealt in an effective manner so as to
overcome these challenges. Impact of these limitations can be seen on the quality of the research
and the execution process of the research. Research limitations identified in the research program
include lack of availability of resources, availability of short span of time and lack of knowledge
regarding the research topic. These limitations need to be identified during the research
execution process so as to eliminate the adverse impact of these limitations.

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Time Schedule (Research Plan)
Serial no. Activities Initiation date Duration (days) Completion date
1) Selection of the
topic
23 January 2018 1 23 January 2018
2) Construction of
plans
24 January 2018 4 27 January 2018
3) Implementation of
the outlined plans
28 January 2018 8 04 February 2018
4) Selection of data
collection methods
05 February 2018 3 07 February 2018
5) Initiation of data
collection process
08 February 2018 9 16 February 2018
6) Analysis and
evaluation
17 February 2018 5 21 February 2018
7) Conclusion and 22 February 2018 1 22 February 2018

Business Research 13
recommendations
Gantt chart
Serial no. 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
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Feb-18Jan-18

Business Research 14
Conclusion
Thus, at the end of the research program, it has been stated that focus is on developing
knowledge regarding the relationship marketing in relation to Finnair and Cathay Pacific airlines.
For the purpose of developing loyalty among the customers, relationship marketing is being
used. The focus of the airlines is on the retaining the customers by satisfying the customers and
attracting potential customers. For the purpose of operating in the dynamic business
environment, there is a need to adopt relationship marketing. It is essential to enter into
negotiation with the competitors and signing a long-term contract. E-approach has been chosen
by the airlines for enhancing the customer base and contributing to the satisfaction level of the
customers.

Business Research 15
References
Acaps, 2012, “Qualitative and Quantitative Research Techniques for Humanitarian Needs
Assessment”, Acaps.
Alvi, M., 2016, “A Manual for Selecting Sampling Techniques in Research”, MPRA.
Bazinia, E., Elmazib, L. & Sinanaj, S., 2012, “Importance of relationship marketing management
in the insurance business in Albania”, Procedia - Social and Behavioral Sciences, Vol. 44, pp.
155 – 162.
Githaiga, A. M., 2013, “Customer Relationship Management As A Strategy To Gain
Competitive Advantage In The Banking Industry”, United States International University.
Lowry, L. D., 2015, “Bridging the Business Data Divide: Insights into Primary and Secondary
Data Use by Business Researchers”, IASSIST.
Maina, V. N., 2016, “Relationship Marketing and Sustainable competitive advantage in large
pre-hospital service companies in Kenya”, University Of Nairobi.
Nishad, P.M. & Sankar, S., 2016, “Efficient random sampling statistical method to improve big
data compression ratio and pattern matching techniques for compressed data”, International
Journal of Computer Science and Information Security, vol. 14, no. 6, pp. 179.
Peng, L. Y. & Wang, Q., 2010, “Impact of relationship marketing tactics (RMTs) on switchers
and stayers in a competitive service industry”, Journal of Marketing Management, Vol. 22(1-2),
pp. 25-59.

Business Research 16
Rahman, S. M. A. U. & Masoom, M. R., 2012, “Effects of Relationship Marketing on Customer
Retention and Competitive Advantage: A Case Study on Grameen Phone Ltd.”, Asian Business
Review, Volume 1, Issue 1.
Sammut, H. J., 2011, “A competitive advantage through customer relationship management”,
Times Malta.
Smith, N.L., 2015, “Using Action Design Research to Research and Develop Evaluation
Practice”, New Directions for Evaluation, vol. 2015, no. 148, pp. 57-72.
Strategic Marketing Solutions, 2013, “Strategic Marketing Solutions Can Develop Your
Relationship Marketing Program”. Accessed on: 24 January 2018. Available at:
http://www.strategicdriven.com/relationship-marketing/
Terrell, S. R., 2012, “Mixed-Methods Research Methodologies”, The Qualitative Report,
Volume 17, Number 1, pp. 254-280.
Thomas, J. A., 2015, “Using unstructured diaries for primary data collection”, Nurse researcher,
vol. 22, no. 5, pp. 25.
Tung F.C. & Yu T.W., 2013, “Investigating effects of relationship marketing types in life
insurers in Taiwan”, Managing Service Quality, Vol. 23(2), pp.111-130.
Turkenburg, J. P. & McAuley, K. E., 2013, “Data collection and processing”, Acta
Crystallographica Section D, Vol. 69(7), pp. 1193-1194.

Business Research 17
Wanjau, C., 2013, “Investigation of the effect of customer relationship management on customer
retention in commercial banks a case of KCB Limited in Kenya Nairobi region”, Kenyatta
University.

Business Research 18
Appendix
Figure 1: Customer relationship management
Source: (Strategic Marketing Solutions, 2013)