Customer Service Management Report

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This report examines customer service management in the tourism and hospitality industry, focusing on British Airways. It analyzes cultural differences between Chinese and British consumers using Hofstede's cultural dimensions model and evaluates British Airways' marketing mix, including pricing policies, branding, and the 7Ps of marketing. The report also explores factors limiting customer service and the benefits of exceeding customer expectations. The report concludes with an analysis of good practices and relevant statistics.

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Customer Service Management for
Tourism and Hospitality

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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Hofstede’s model of cultural dimensions and differences between Chinese and British
consumer behaviour....................................................................................................................3
TASK 2............................................................................................................................................7
Evaluation by considering of British Airways in designing marketing mix...............................7
Pricing policies............................................................................................................................8
Branding and Image....................................................................................................................8
Marketing mix with a context of British Airways......................................................................8
Factors in limiting customer service with limited issues occur................................................10
Benefits and opportunities derived from exceeding customer expectations.............................11
Example of good practice..........................................................................................................11
Facts and statistics that underpins analysis...............................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
INTRODUCTION
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Customer service management is also known as customer relationship management
(CRM). It refers to the strategy, technology and practices that is used by the manager of
company to interact with customers with the objectives of improving their relationship with
consumers(Bowie, 2016). In customer service management, manager are use a techniques to
gather the data of consumers about their needs, norms and culture and provide quality products
as per their requirements. This project is based on British Airways which is the largest airline in
UK. It was founded in 31 March 1974. its headquarter is located in Harmondsworth, United
Kingdom. In this report there is a discussion about significant difference between Chinese and
British consumer behaviour with using a Hofstede's model of cultural dimensions. Apart from
this, there will be an evaluation of designing marketing mix to improve the service encounters.
TASK 1
Hofstede’s model of cultural dimensions and differences between Chinese and British consumer
behaviour
Hosfstede's model is used for culture dimensions to identify and explore the difference
between the consumer behaviour of two country. Before defining this model, firstly identify the
consumer behaviour.
Consumer Behaviour
It is a study of behaviour of consumer, organisation, group or individual in order to buy
products and services for satisfy their needs and requirements. It is a set of actions that
underlying the motives of consumer at marketplace. In this behaviour consumers are decide to
buy goods as per their needs and ensure that after consuming that goods they can satisfy their
requirements. In a hospitality and tourism industry, consumers play an important role for growth
and development of British Airways(Chathoth, 2014). Behaviour of consumer are changing time
to time so it is a responsibility of tourism sector to analyse the market and identify the needs of
customer and provide service as per their requirements to satisfy their needs.
Hofstede's model of culture dimensions
Hofstede's culture dimensions model was developed Geert Hofstede. These dimensions
make impact on culture of society and values of members of society. It also states the
relationship between behaviour and values. This theory is a study of significant aspects of
culture and give an assessment on a comparing scale. It is concerned with international business
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and knowledge which is a feature for business in different cultures. This theory was developed
for the purpose of identified the differences between culture and society between two countries
or places(Dhar, 2015). There are mainly six cultural dimensions in Hofstede's model which are
discuss as follows:-
Power Distance- This concept explain the level to which members who are less powerful
in a society accept and distribution of power is is not equal. Those societies who have a large
power distance are stands for inequality and their authorities are centralised with a lot of
supervisory staff.
Uncertainty Avoidance- It describe the level in which person of social group are not
comfort with uncertainty and unclearness. It includes those members and societies who are able
to cope up with uncertainty of future without taking any stress. It need a type of attitude that
avoid the risk and uncertainty. There is a requirement of predictability that highlight the
importance of planning.
Individualism vs. Collectivism- This dimensions states that people give preference to live
alone or look themselves. On the other hand, in collectivism, people are c;closely connects with
large number of people and make network. In individualism, people are concentrate on self or
very most dear ones and concerned with their interest and goals as well as behaviour
relationship. In collectivism, people are behave as per social culture and norms which helps to
maintain social harmony between group members.
Masculinity vs. Femininity- Masculinity refers to the preference of society for
achievement, positiveness, material reward and heroism for getting success. Whereas, femininity
refers to the preference of quality of life, modesty, cooperation and caring for the weak. It rotate
the arrangement between genders that is a prime issue in a number of societies(Jaakkola, E. and
Alexander, 2014). It focuses on sense of humour, affection and personality of a person.
Long term vs. Short term Orientation- long term orientation defined the tendency of
society in order to searching moral excellence. Whereas, short term orientation describe those
social groups who are powerfully disposed the formation of implicit facts. It shows that there is
an unequal relationship between people and stability of society. Long term orientation is deals
with positive association with economic growth. Short term orientation deals with focusing on
stability and respect for culture and tradition.

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Indulgence vs. Restraint- It resolve around the degree in which societies can control their
impulses and desires(Kandampully, Zhang and Bilgihan, 2015). The quality of restraint refers to
a society that need gratification and try to control their social culture.
Difference between consumer behaviour of two countries with using Hofstede's model of
culture dimension
Basis of Comparison Chinese consumer behaviour British consumer Behaviour
Power Distance It is an extent which states that
there is an inequality of power
that consumer have in society
and their social culture.
Chinese consumer have high
distance in power distribution.
It is less powerful and more
autocratic.
It is focuses on the reason that
why people find the difference
between power distribution.
British consumers have to face
out low power distance. British
Airways have to provide equal
power in their services and
travelling.
Uncertainty Avoidance It is concerned with the degree
in which people of a nation
formal rules and fix pattern
and they don't want any
uncertainty. There is a low
uncertainty in Chinese
consumer behaviour and they
avoid to new experience and
generating new things. British
Airways have not to do any
changes in their services.
Uncertainty is a type of risk in
which behaviour of consumer
is not clear about the future
happenings and they avoid
future uncertainty and explore
new things. There is a high
avoidance of uncertainty in
British consumer behaviour. In
a high uncertainness avoidance
society, people are generally
related with risk aversion.
Individualism vs. Collectivism Chinese consumer behaviour
scored a high rating on
collectivism in which people
are maintain group harmony
and low rating on
Consumer behaviour of British
countries are get high scored
on individualism and low
scored on collectivism. They
are self concentrated and focus
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individualism. on achieve their own goals and
objectives.
Masculinity vs. Femininity There is almost same score get
by Chinese and British
consumer behaviour. But apart
from this, Chinese consumer
get the low score in femininity
and low score in masculinity.
Consumers behaviour is
depends on distribution of role
of emotions between genders
in which they decide to buy
goods as per their needs. There
is a high masculinity in British
consumer behaviour and low
femininity in their behaviour.
Long term vs. Short term
Orientation
It can be describe as a time
horizon of society which is
more important to deal with
future aspects. Chinese
consumer behaviour have very
high long term orientation.
As per British consumer
behaviour there is a very low
orientation of long term.
British Airways have to
implement any strategy and
changes in service in short
time period.
Indulgence vs. Restraint Chinese consumer have high
indulgence scores and low
restraint score.
Restraint is high whereas
indulgence is scored low as per
consumer behaviour of British.
Culture
Culture is refers to a system of knowledge which is shared by a large number of people in
society or as a whole. It is a way of life of life of different groups of people who believe in their
behaviour, knowledge, skills, beliefs, attitudes and motives. It is a collective program which
categories people from another(Law, 2015). British Airways have to follow the culture of
society and provide services and food items as per their norms. Culture of society make a large
impact on hospitality and tourism industry.
Glocalisation Theory
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Glocalisation theory is used to describe the goods and services distributed and developed
in global market as well as also adjust their accommodation for customers in local market. It is a
adaption of product at international market. In context of British Airways, this airline is not
provide their service in UK but also cover worldwide area.
Standardization vs Adaption
Both of these terms are represent a way of selling the products. Standardisation refers to
the production of goods as per economies of scale which the helps to research and development.
It reduce the cost of production and improve consumer mobility(Law, R., Buhalis, D. and
Cobanoglu, 2014). It also helps to improve planning and controlling by improving the standard
of a product. When British Airways want to glocalised their services in international market then
they have to improve their standard of products and services as per consumer behaviour and their
requirements. Adaption refers to the modification in existing services or adopt new products or
services by innovation or any other sources. Glocalisation theory is applied in adaption because
when British Airways want to expand their service in worldwide area then they have to adopt
more new things or modifications in existing services to meet with consumer behaviour and
culture of society.
Ethnocentric versus poly-centric staffing and staff training
Ethnocentric refers to position of management which is filled by parent country. Poly-
centric staffing is a policy manage the things and held the position of headquarter. UK is a host
country. So, it manage all the things related to British Airways. Staff training refers to a area
where training is providing to staff members of British Airways. This place is located in host
country i.e. United Kingdom.
TASK 2
Evaluation by considering of British Airways in designing marketing mix
British Airways is global airline industry with exposed to make changes in customer
behaviour and developing confidence of consumer. Company is based in present for leading with
opportunities and challenges faced by them. In this, tourism and hospitality is refers to build
understanding in different cultures faced by market(Prebensen, Chen and Uysal, 2018). As per
evaluation British Airways opt British consumers for making long term growth.

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Company has observed that British consumers are more familiar with British Airways
tourism part. The consumers of which critically provided understanding about facilities provided
to customers. Their impact and operating takes part in order to the behaviour of consumer.
Designing are prepared on the basis by dealing with marketing mix. It is made by enhancing
service encounters. In tourism and hospitality, company is use to provide many of the products
and services which are laid down in market for enhancing customers and growth.
The customers are attracted on the basis of company's image and the level of competition
faced by them(Shani, 2014). Zopiatis, A., Constanti, P. and Theocharous, A. L., 2014). British
Airways encounters services provided in restaurants and hotels to their consumers.
Pricing policies
Setting up of prices are leading with the development stage in formulation they are used to avoid
launching of products and services by making sustainable profits. It is a principal task of
marketing managers in order to determine price of product and service with a significant role in
making success. Their refers policy based on cost, demand, value and level of competition in
market. This strategy is used by British Airways in formulating prices on tourism and hospitality
which is successfully applied. The consumers are founder of prices by making comparison and
considering with facilities. Managers must look into account by ensuring market conditions and
pricing strategies by considering customers, costs and different market segments.
Branding and Image
The impression came on consumer mind with a real quality and consistent theme
authenticated by direct experience. It is also known as corporate image designed by
advertisement campaigns. British Airways perception came on mind of customer in according to
their beliefs, impression and ideas in regarding with company brand. From the image of
company British Airways also configure various products and services for British consumers.
The importance of brand image is fulfilled by enhancing profits of new customers by attracting
them. By evaluation, opting British consumers is useful for British Airways in maintaining
confidence to existing customers by retaining them. This image in made by having better
customer relationship. Finest services provided by company to make different brand in market
operations.
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Marketing mix with a context of British Airways
It is a set of decisions made by British Airways with a need of before launching a
product. In marketing mix there are 7P's in which 4P's defines traditional marketing and 3P's
defines service marketing. They are lead to which in making effective decision in regarding with
making new invention of product and service in market. Here 4P's describe product, price, place,
promotion and 3P's describe people, process, physical evidence.
These mix are made for designing by making evaluation in considering with British
Airways(Su, Swanson and Chen, 2016). They are beneficial in order to make theory and practice
for service delivery and customer satisfaction. Mix are defined as under.
Product: It is refers to as selling with including features from which a consumer can opt
it. In tourism and hospitality heterogeneous, perishable and cannot be owned. The company used
to make new service in order to have in blue print for defining how exactly the product is going
to be. British Airways is running with leading from services provided in respect to hospitality
and tourism.
Place: Company has opt British consumer in a way to which service product is easily
determine by them. The place is consider on the basis of product service in which it is going to
be located. In this, British Airways decided location where there they are going to start a hotel or
restaurant. A place is decided on the basis of crowd where customer attraction is made easily.
Price: In this pricing strategy is determine on the basis of customer are willing to pay.
Their having competitive advantage in making consideration with a possible discounts and
seasonal pricing of products and services. This marketing mix is designed by manager of British
Airways according to the consent of British consumer.
Promotion: In this promotional activities, customers are aware about products and
services. Here British Airways is leading with sales tactics, promotions, advertising and direct
marketing in order to enhance these activity. Hospitality and tourism part is configure in which
British consumer can make their focus on Airways company.
People: It refers to as staff or either sales person who are providing excellent services to
customers. They are those who create positivity among British consumer for buying product.
British Airways company attraction is made by consumer perception in order to opt product or
service. From this, business lead competitive advantage in order with recruitment and training is
provided to right person and staff.
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Process: It is based on delivering products and services to different customers. British
Airways is running easily its business in a manner to which customers ensure repeatedly
standardised service to customers. British consumers are their to buy product and service in
hospitality and tourism for increasing efficiency.
Physical evidence: It is everything for customer to make interaction within business.
Physical environment is made with the purpose of layout and designs. British Airways is
providing their products and services in order with packaging and branding for attracting
customers towards it. British consumer consider layout and interior designs.
Factors in limiting customer service with limited issues occur
Issues are made at different sources in company. British Airways in leading with an
economy which includes many of the limitation made on services provided to customers. British
consumers are facing many of the problems and issues occurred in company products and
services.
Communication: The issues made by supplier and buyer in order with cultural aspects,
group dynamics, detachments and inability make by interacting with British consumers. In
hospitality and tourism company, their connection plays a vital role in contacting on day to day
basis with customers for informing about products and services. From this communication
should be clear.
Employee engagement: By providing services to customers their laying complete
engagement of employees. Due to lack of this attachments their having limitations in customer
services(Suki, 2014). British Airways is dealing with day to day British customers where many
of the issues occur to be resolved by employee in making complete engagement it them.
Service culture: In this, business services provided to customer is made on the basis of
culture. British Airways is leading with services to consumers by laying many of the issues
incurred by having interaction with other customer(Law, 2015). In order to which British
Airways is providing similar products and services with high rates occur issues and problems in
market.
Technology: Technological issues are made by using poor or outdated technology. British
Airways facing many of the problems in relating with machines, equipments etc. Company is
using it for making easy and fastest work operations.

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Service recovery strategies: In this strategy, British Airways faces many of the problem in
relating with the recovery. Here customers of British is opting for recover all the losses incurred
by company.
Relationship marketing: This is define by marketing concept in order to make relation among
British customers and suppliers. It is helpful in making familiar relation among different persons.
For proving wrong product issues incurred on this basis.
Customer relationship management: Company is maintaining relations with customers in order
to enhance supplies. Due to this relation their may occur issues relating with the behaviour
prospects. British Airways is facing lots of issues made by supplier and buyer for product.
Loyalty programs: Loyalty programs are made by British Airways with good practising. Their
are lots of issues made by customers towards buying behaviour on product.
Benefits and opportunities derived from exceeding customer expectations
Customer expectations are fulfilled on the basis of automated services. The services are
provided to customers according to their demand expectation(Wang, 2014). British Airways are
their in defining level of demand and customer willingness is made with special attention. The
benefits and opportunities are as under.
Providing best quality of product to customer by making contracts with company. British
Airways are providing quality for service to their customers by fulfilling their
expectations.
By making friendly connections with customers and solving issues or quires. British
customers used to opt tourism services by making contact with British Airways.
Example of good practice
Best practice is defined by British Airways by embracing accessibility, customer service
training proved, focus on face time, keeping staff always happy. Customers are dealing with
wow factor which is they gain from using product and service provided from British Airways.
Good practice is provided to British customers in order to attend guests by input quickly.
Facts and statistics that underpins analysis
Facts and statistics are made by underpinning analysis made on customer products and
services. British airways is making determination by having data of observation of customers in
order to product.
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CONCLUSION
From the above mentioned report it is concluded that British airways opting Hofstede
model to recover significant roles by maintaining differences in behaviours of consumer. From
this it is conclude that which one is the best. Report prescribe issues in policies, branding, 7P's of
marketing which is concluded to be resolved by individuals. The opportunities faces by
hospitality and tourism company by exceeding customer expectations. Good and best practice is
derived from making statistical analysis. From this conclusion company is to resolve such issues
made by limiting of customer services.
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REFERENCES
Books and Journals
Bowie, D. and et. al., 2016. Hospitality marketing. Routledge.
Chathoth, P. K. and et. al., 2014. Barriers affecting organisational adoption of higher order
customer engagement in tourism service interactions. Tourism Management. 42. pp.
Dhar, R. L., 2015. Service quality and the training of employees: The mediating role of
organizational commitment. Tourism Management.46. pp.
Jaakkola, E. and Alexander, M., 2014. The role of customer engagement behavior in value co-
creation: a service system perspective. Journal of service research.17(3).pp.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.
Law, R. and et. al., 2015. Distribution channel in hospitality and tourism: Revisiting
disintermediation from the perspectives of hotels and travel agencies. International
Journal of Contemporary Hospitality Management. 27(3). pp.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary
Hospitality Management. 26(5). pp.
Prebensen, N. K., Chen, J. S. and Uysal, M. eds., 2018. Creating experience value in tourism.
Cabi.
Shani, A. and et. al., 2014. Emotional labor in the hospitality industry: The influence of
contextual factors. International Journal of Hospitality Management. 37.pp.
Su, L., Swanson, S.R. and Chen, X., 2016. The effects of perceived service quality on repurchase
intentions and subjective well-being of Chinese tourists: The mediating role of
relationship quality. Tourism Management. 52. pp.82-95.
Suki, N. M., 2014. Passenger satisfaction with airline service quality in Malaysia: A structural
equation modeling approach. Research in transportation business & management.10.
pp.
Wang, L. and et.al., 2014. Consumer trust in tourism and hospitality: A review of the literature.
Journal of Hospitality and Tourism Management. 21. pp.
Zopiatis, A., Constanti, P. and Theocharous, A. L., 2014. Job involvement, commitment,
satisfaction and turnover: Evidence from hotel employees in Cyprus. Tourism
Management.41, pp.
Online
Customer Service Management for Tourism and Hospitality. 2018[Online]. Available
Through:<https://economictimes.indiatimes.com/definition/pricing-strategies>
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