Marketing Mix and Customer Engagement

This assignment discusses the significance of marketing mix in gathering information about consumer behavior and preferences. It highlights the need for market research to analyze elements of marketing mix and identify opportunities for growth. The assignment also touches on the importance of human resource management in the hospitality industry, co-creation, service quality, and customer satisfaction.

Customer Service
Management for
Tourism and Hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a. Use of Hofstede's model of cultural dimensions to identify different between Chinese and
British consumer's behaviour......................................................................................................1
b. Evaluations of the considerations that will be taken into account while designing its
marketing mix.............................................................................................................................6
CONCLISION.................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Customer service management refers to the strategies, tactics and technologies that are
implemented by various organisations in order to retain existing and attract prospect customers.
It helps to maintain good relations with the clients by rendering them good services. For all the
companies who are executing their business under tourism and hospitality industry it is vital to
provide good services to all the visitors to gain their trust (Ariffin and Maghzi, 2012). This report
is based on the customer relationship management strategy of British Airways which is the
largest airline in UK and it is mainly based in Waterside, London, UK. Various topics have been
discussed under this report such as use of Hofstede's model of culture dimension, identification
and exploration of significant differences between Chinese and British consumer behaviour,
evaluation of the considerations that will be taken into account by British Airways while
designing its marketing mix in order to enhance service encounters.
TASK 1
a. Use of Hofstede's model of cultural dimensions to identify different between Chinese and
British consumer's behaviour
Consumer behaviour: It can be defined as the study of customer's reaction on the
buying, selecting, using, disposing goods and services that are acquired by them in order to
satisfy their needs. For all the organisations whether they are offering products or services to the
consumers to analyse their behaviours so that they can fulfil all the requirements of them. As
British Airways is a large organisation who is rendering services all around the world hence it is
very important for the company to manage all of them effectively so that they can be retained.
Consumer's behaviour can be analysed with the help of appropriate research in which their
needs, demands, preferences, taste etc. elements are considered by the marketers (Boella and
Goss-Turner, 2013).
Hofstede's cultural dimensions: This model was introduced by Dr. Geert Hofstede in
the year 1970s. It helps to determine the effect of a society's culture on the beliefs of community
members. There are six different dimensions of this model that can help to determine different
between behaviour of Chinese and British consumers of British airways. All the differences are
as follows:
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Hofstede's
cultural
dimensions
British Chinese
Power distance
index
It depicts that less powerful members
of an organisation expect to distribute
the power unequally. PDI score is
high in Britain hence it will affect the
consumer behaviour as there is a large
difference in their compensation.
Customers in UK are concerned with
brands (Chathoth and et.al., 2014).
In China the PDI score if low as
there is not difference in
compensations and all the managers
and employees treated the same. In
China all the customers are focused
on innovation.
Individualism vs.
collectivism
It is the strength of ties that
individuals have to together in their
community. IDV score of western
consumers is high as they respect
privacy of other community
members. The consumers of UK have
persuasion behaviour.
IDV score of Chinese consumers is
low as they believe in building skills
so that they can become master in
something. The consumer of China
have trust in their local technology.
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Masculinity vs.
femininity
It refers to the distribution of
resources on the basis of gender. In
Britain the MAS is low as males and
females are not treated equally and
there are various issues that are
related to the pay gap of women and
men. In western countries females are
overshadowed by the males. In UK
consumer buy brands for status
among them women are mainly
concerned with higher standard of
living.
In China MAS score is very high as
males and females are treated
equally and their pay scale is also
equal. It helps to ignore the issues
that are related to pay scale gap. In
China all the consumers believe in
living a simple life and they do not
focus on brands to enhance their
standard of living (Testa and Sipe,
2012).
Uncertainty
avoidance index
It is related to the cooperation with
anxiety and sudden problems. UAI
score of British consumers is high as
they can cope with problems
specifically and they can implement
effective strategies to deal with
sudden problems or anxiety. They can
cope with the risk of purchase.
UAI score in china is very low
because the consumers there only try
to invent new things rather than
finding solutions for existing
problems as they don't want to waste
their time. In China all the
consumers are mainly concerned
with innovation or change.
Long versus short
term orientation
It defines the steps that are taken by
the organisations in order to attain
long as well as short term gains. In
Britain there is along term orientation
as they are more concerned with the
education level and modesty. In UK
consumers always will to invest in
brand.
In China there is a short-term
orientation as the local citizens there
consider to attain short term gains
and quick results for the problems.
In China consumer do not want to
invest in brands as they believe in
innovation.
Indulgence versus
restraint
It can be defined as the regulations of
people's conduct and behaviour. In
In China the IVR score is high as
they consider to enjoy life and have
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Britain IVR score is very low because
consumers are very strict about the
social norms.
fun so that they can enhance their
standard of living.
Culture: It can be defined as the social behaviour and the beliefs that are found in human
societies. It is considered as a primal thought in anthropology. In other words, culture can be
defined as the characteristics and knowledge of a group of individuals who are encompassing
social habits, languages, religion, cuisines and other factors. Customers of British Airways are
having different cultures as they belong to different countries. It very important for the
organisation to respect their culture so that the business can be executed successfully (Wong,
2013).
Glocalisation theory: It is an historic process in which localities are motivated to
develop direct economies and cultural relations all around the world so that skills and
knowledges can be exchanged. For this purpose, information technology and other methods can
be used by the government. It is the mixture of two different concepts that are globalisation and
localisation. This theory is used by British Airways to describe all its services that are offered
and developed to the customers who are from different locations but is also adjusted to
accommodate the user or consumer in the local market. It is very important to apply this theory
effectively so that large number of customers can be attracted toward the organisation.
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From the above chart it has been analysed that high forces for national market
responsiveness and global coordination will help the organisations to be glocalise. This will help
to operate the business world wide (So and Wang, 2016).
Standardisation: it can be defined as the process of developing and evaluating
techniques that are based on the agreement of different parties in which firms, organisations,
government and other interested groups are included. It can help to enhance and maximise
compatibility, safety and interoperability of the services. It is very important for British Airways
to standardise its services so that customers can choose such services that matches to their
standard. Standardisation is very beneficial for British Airways as it can reduce variability and
also lead the organisation for continuous improvement (Prebensen, Chen and Uysal, 2018).
Adaption: It can be define as the process of adapting a particular strategy that can help to
operate business in more effective manner. According to this concept it is very important for
British Airways to respect all the local specifications and expectations so that local authorities
can be liberal while analysing the information of the organisation which is provided to them. It
will be beneficial for the organisation as it can establish an excellent local image. Sometimes it
may also result negatively for the organisation because the cost of adaption is very high and
consumes high time but if it is handled effectively than it can help to operate the business
successfully.
Ethnocentric staffing: It refers to the hiring of managers from the same nationality as
parent company. As British Airways belongs from Britain and if this staffing technique is chosen
by the organization than all the employees for foreign branches will be hired from Britain. It
offers an opportunity to the companies to transfer their values to the other countries and execute
business more successfully.
Poly-centric staffing: In this type of staffing the employees are selected from the host
country. If this type of staffing is adopted by British Airways than staff members will be selected
from those countries where the organization is executing business (Nickson, 2013).
Ethnocentric vs. poly-centric staffing:
Ethnocentric Poly-centric staffing
It helps to establish better coordination
between parent and host country.
It is used for the purpose of reducing cultural
and communication challenges.
As employees are hired from the country of Productivity and profitability will be increased
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parent company hence there is a high
possibility of control over all the subsidiary
companies.
as staff is having broad knowledge of local
market.
Parent company can keep an eye on the
operations of subsidiaries.
Career options for the host country’s
individuals will be increased.
Government regulations and restrictions of the
host country may affect the business of the
parent organization.
Managers of parent companies may have to
face difficulties while controlling subsidiaries.
b. Evaluations of the considerations that will be taken into account while designing its marketing
mix
Marketing mix: It is the combination of four different P’s these are product, price, place
and promotion and late three more P’s were introduced specially for service sector these are
people, process and physical evidence (Marketing mix, 2018). For British Airways analysis of
marketing mix is as follows:
Product: It can be defined as the services that are provided by the organization to its
customers. As British Airways is providing good quality services to its customers that help to
retain them and set a positive image in the mind of them. It also help to create a good value of
the services that are rendered by the organization.
Price: British Airways is offering services on appropriate price so that all type of
customers can be attracted by the organization. There are various types of pricing strategies that
can be chosen by British Airways to operate its business. All the strategies are as follows:
 Premium pricing: In this pricing strategy high prices for the products or services are set
by the organizations and they have a selected area of the market who are targeted by
them. The products and services offered by such companies are mainly for upper class of
the society.
 Penetration pricing: In this strategy price for all the products and services is set low to
high so that large market share can be captured by the organization. It is mainly used by
such business entities who are launching a product for the first time in the market.
Sometimes it is also used to retain and attract large number of customers so that market
share can be gained.
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 Economy pricing: In this type of strategy lower prices are set by the organization for
their services so that5 they can attract large number of customers. Main objective behind
the use of this strategy is to capture the large market area.
 Skimming pricing: In this strategy high price is set by the organizations on their
products until any competitor tries to capture their market share. Main objective of this
strategy to maximize profits of the organization.
From the above mentioned pricing strategies penetration strategy is used by British
Airways. The organization is targeting all type of customers who are from different class.
Place: It refers to the location of the organization where the customers can reach easily
and get the services quickly. British Airways always chose such places for the distribution of the
tickets for the flights where the technology is highly supported by the individuals. It prefer such
places where the connectuv8ity of network is very high so that clients can book tickets easily.
Chinese people always source information form online media hence it is very important for the
organization to consider their choice.
Promotion: It can be defined as the marketing and advertising activities that are
conducted by the organizations to aware customers about the brand and the services that are
offered by them. British Airways use effective methods for promotion as it helps to establish a
good market image.
People: British Airways always hire skilled and well educated employees for the
organization so that they can contribute in the development of the business. EPRG model is used
by the organization so that all its subsidiaries and employees can be managed in appropriate
manner.
Process: It can be defined as the way in which services are rendered to the customers of
British Airways. The organization use latest technology to deliver services to the clients so that
they can be retained (Mok, Sparks and Kadampully, 2013).
Physical evidence: As the services that are delivered by British Airways are of good
quality ans this helps to establish a good market image of the organization so that large number
of customers get attracted.
All the above discussed marketing mix are managed by British Airways in appropriate
manner so that it can establish a good market image.
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Factors that may limit customer service: Following are the factors that can limit
customers services:
 If the organization is not able to render services to the customers at that time when
customers want it.
 When the services are of low quality than it will leave negative impact on the customers
and they will switch to another service provider.
 If British Airways misuse the technology then it will affect the customers service because
in this situation the organization will not be able to render good services to the clients.
 When an organization is not considering needs of customers than it will limit the services
as customers will not buy such services that are not able to satisfy their needs.
Benefits and opportunities that derives from exceeding customer expectation:
If an organization is rendering such services to the customer that exceeds their
expectations than it will help to gain their trust and provide various benefits to the organization.
It will also benefit British Airways all of them are as follows:
 Trust of customers will be enhanced when an organization exceeds customer expectation
(Marković and Raspor Janković, 2013).
 New opportunities for the business will take place as organization will have large
number of customers.
 Help to establish a good market image and brand loyal customers.
If British airways is considering the the needs of customers as the basis for the strategies
that are formulated to increase the market share than it will exceed the expectations of the
customers and help the organization to attain benefits and grab opportunities.
Good practices:
Various steps are taken by British Airways to acquire large market share all of them are
as follows:
 British Airways has reduced the prices for all its tickets so that all type of customers may
afford the tickets and large market share can be captured by the organization.
 Various strategies have been implemented in order to enhance the profits of the
organization.
 Innovative techniques are used in service delivery system that help to remain competitive
in the market (Dhar, 2015).
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 While British Airways have taken initiative to provide services all around the world than
managers of the organization conducted market analysis which is done for the purpose of
acquiring higher market share.
From all the above mentioned points it has been analyzed that British Airways have
initiated to implement new and innovative techniques which has resulted positively for the
organization (Chathoth and et.al., 2016). It has also been analyzed that British Airways is mainly
concerned with the implementation of such strategies that are implemented for the betterment of
the organization. All the strategies are formulated by considering the point of view of customers
and their needs.
CONCLISION
From the above project report, it has been concluded that customer relationship
management is the process of implementing strategies, methods and techniques so that
satisfaction level of them can be maintained. For all the organisations who are operating business
under hospitality and tourism sector to have information about the taste and preferences of
consumers for the purpose of retaining them. If the companies are not able to gather information
about consumer's behaviour then it is not possible to supply them such services that they are
willing to acquire. A well structured market research is a tool that can help to get exact
information about behaviour of customers. For all the organisations it is also very important to
analyse all the elements of marketing mix so that all the opportunities that are related to growth
can be identified and grabbed.
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REFERENCES
Books and Journals:
Ariffin, A. A. M. and Maghzi, A., 2012. A preliminary study on customer expectations of hotel
hospitality: Influences of personal and hotel factors. International Journal of Hospitality
Management. 31(1). pp.191-198.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. 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.181-
193.
Chathoth, P. K. And et.al., 2016. Co-creation and higher order customer engagement in
hospitality and tourism services: A critical review. International Journal of
Contemporary Hospitality Management. 28(2). pp.222-245.
Dhar, R. L., 2015. Service quality and the training of employees: The mediating role of
organizational commitment. Tourism Management. 46. pp.419-430.
Marković, S. and Raspor Janković, S., 2013. Exploring the relationship between service quality
and customer satisfaction in Croatian hotel industry. Tourism and Hospitality
Management. 19(2). pp.149-164.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Prebensen, N. K., Chen, J. S. and Uysal, M. eds., 2018. Creating experience value in tourism.
Cabi.
So, K. K. F. and et.al., 2016. The role of customer engagement in building consumer loyalty to
tourism brands. Journal of Travel Research. 55(1). pp.64-78.
Testa, M. R. and Sipe, L., 2012. Service-leadership competencies for hospitality and tourism
management. International journal of hospitality management. 31(3). pp.648-658.
Wong, I. A., 2013. Exploring customer equity and the role of service experience in the casino
service encounter. International Journal of Hospitality Management. 32. pp.91-101.
Online
Marketing mix. 2018. [Online]. Available thorugh:
<https://www.cleverism.com/understanding-marketing-mix-concept-4ps/>
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