A Recommendation to all those people who have lend and helped me in carrying out the research

Dissertation

ACKNOWLEDGEMENT
The present research executed for is the pivotal work which is done with the aid of
momentous efforts that is made by a number of people. Therefore, I want to pay my regards to
all those people who have lend and helped me in completion of this research. I am greatly
thankful to my mentor under whose guidance I accomplished the entire study. His guidance
helped me a lot in carrying out this research in a simpler way with lots of learning opportunities.
Further, I want to pay gratitude to my family, friends and team members who supported me in
the entire research study and also encouraged me for my work. The great support of all these
members aided me in conducting the entire research as per the requirement. The report has
included the discussion over relationship marketing.

Table of Contents
CHAPTER 1 INTRODUCTION.................................................................................................................................5
1.1 Background....................................................................................................................................................5
1.2 Rationale........................................................................................................................................................6
1.3 Aims and objectives.......................................................................................................................................9
1.4 Research questions.........................................................................................................................................9
1.5 Significance of research.................................................................................................................................9
1.6 Structure of the research..............................................................................................................................10
1.7 Plan and procedure for the research.............................................................................................................12
CHAPTER 2 LITERARTURE REVIEW................................................................................................................13
2.1 Concept of relationship marketing in airline industry.................................................................................13
2.2 Theories related to CRM and relationship marketing..................................................................................14
2.3 Significance of relationship marketing........................................................................................................17
2.4 Customer retention and customer loyalty....................................................................................................18
2.5 Customer defection......................................................................................................................................19
2.6 Benefits of relationship marketing...............................................................................................................20
2.7 Interest of customer in context of airline services.......................................................................................21
2.8 Impact of relationship marketing on British airways...................................................................................22
2.9 Tools and techniques adopted by British Airways for relationship marketing............................................23
Conceptual Framework......................................................................................................................................24
CHAPTER 3 RESEARCH METHODOLOGY.......................................................................................................26
3.1 Introduction..................................................................................................................................................26
3.2 Research philosophy....................................................................................................................................26
3.3 Research approach.......................................................................................................................................27
3.4 Research design...........................................................................................................................................28
3.5 Research choices..........................................................................................................................................29
3.6 Data collection.............................................................................................................................................29
3.7 Selection of sampling method and size........................................................................................................30
3.8 Analysis of data...........................................................................................................................................31
3.9 Validity and reliability.................................................................................................................................32
3.10 Ethical considerations................................................................................................................................32
3.11 Limitations.................................................................................................................................................33
CHAPTER 4 DATA ANALYSIS...............................................................................................................................34
4.1 Introduction..................................................................................................................................................34
4.2 Data analysis- Questionnaire.......................................................................................................................34
CHAPTER 5 CONCLUSION AND RECOMMENDATION.................................................................................51

5.1 Conclusion...................................................................................................................................................51
5.2 Recommendation.........................................................................................................................................53
REFERENCES............................................................................................................................................................55
APPENDICES.............................................................................................................................................................58

CHAPTER 1 INTRODUCTION
1.1 Background
For a business to take away from its competitors, authorities should find the ways that
can help them achieve the position they are willing to achieve. So in a decade the term
relationship marketing has taken a boom among industries and most famous in Airline industry
which has benefited business in major way (Siems, 2013). Relationship marketing came into
force in 1983 by Leonard Berry, who introduced the concept by laying emphasis on difference
between long term marketing and Short term marketing. In relationship marketing, a firm target
its customers to interact with them, make relation with them in order to retain them for long-
term. In relationship marketing not just product is sold to consumers or customers rather in
addition they get relationship with the said brand which eventually customer also takes because
of the influencing power of the organizations (Paulssen, Roulet and Wilke, 2014). Since
competition in this present world is high and thinking of gaining the competitive advantage and
it is tough for firms to make that advantage by just merely selling the product. So in addition
what firms are doing is they have to engage in different strategies which will help them to make
their base strong. Relationship marketing is a promotional approach which focuses on the aspects
of networks and communication, interactions and relationships. This research has been
undertaken in order to understand the relationship marketing theories in relation to airline
business. Aviation industry has been the major factor in uplifting the scenario of relationship
marketing and mostly used marketing in this industry is this only. This research will analyse the
impact of relationship marketing in British airways and how airline industry is using tools and
techniques apart from relationship marketing in order to survive in the market (Huang and
Rundle-Thiele, 2014). In addition to this, it can be said that key measures need to take into
account. Previous studies has not provided appropriate learning in regard to the subject which
has motivated experts to select the concern subject. In order to overcome the issues which are not
resolved in previous studies the present investigation is being selected. It can also be concerned
as key rationale of overall report. It has been noticed that number of businesses are focused
towards application of relationship management tactics in order to ensure that goals and
objectives are being accomplished effectively. In addition to this, it can be stated that for better
relationship management the businesses are effectively concerning CRM as critical aspect. It is

referred as factor that helps in building better relationship through having regular basis
communication and make sure that long term sustainability can be advanced. As same the British
Airways can also have advancement in operations by having use of CRM. It will allow to
understand the need of employees as well as customers so that better opportunities can be
created.
Marketing for business is necessary because it drives a consumer to perform the
purchasing function which is good for business. Among the years many business practices have
been introduced to engage customers with the project and among them relationship marketing is
one which can be understand by this report. For the research purpose British airways has been
taken into account which is a reputed airline business and in the years of its start-up it is well
known for its customer satisfaction level and known for the ambience they give to every
customer who board their plane. Through relationship marketing a firm try to develop a
relationship with its customers in this way that it does not harm their long-term relationship
(Paulssen, Roulet and Wilke, 2014). Main purpose of firms is to have better gathering of
customers so that long term opportunities can be created. It eventually make them feel like that
firm is focused towards word of mouth communication to different groups and relatives, family
etc. for better improvement. In order to maintain such issues the business firm need to make sure
about long term sustainability.
1.2 Rationale
In the modern era relationship marketing has become the necessity of the business,
without having strong relationship with the consumers, companies cannot get succeeded in the
corporate market. In the airline industry there is high competition, many firms are here which are
providing excellent extra ordinary services to the travellers. Organizations can sustain in the
market by developing bonding with the consumers (Dixon, Martinez and Martin, 2015). Needs
and wants of consumers can get changed any time, so for offering them satisfactory products and
services it is essential for the firms to know about their desires. It is only possible with the help
of relationship marketing. It is a burning topic as most of the entities are engaged in this and they
are developing their interaction with the consumers so that they can make them loyal towards the
brand. Aviation industry is one of the major sector that contribute well in the economic
development. The rationale behind choosing this subject is that it will help in increasing

knowledge of the researcher and will give the person in depth knowledge about the topic
(Vincent & Webster, 2013).
Scholar has huge interest in the aviation industry and marketing so it would be interesting
topic for him that is why individual has selected this topic for the study. Investigator has
knowledge and experience about the aviation industry and individual knows the ups and down in
of this sector. This knowledge will help the scholar in preparing the good project. There are
many researches that have been conducted by other scholars on the same topic so huge data are
available on the subject matter that can help the investigator in completing the research
successfully (Paulssen, Roulet and Wilke, 2014). It is feasible topic and on this subject matter
impressive report can be prepared by the scholar within the time duration.
Along with this, another rational behind the selection of study is that various researchers
has focused on the subject to develop better understanding. However, they have not provided
proper evidences in that studies which has impacted the effectiveness of overall study. By having
an improved focus on present investigation the issues faced under previous research can be
overcome in desired manner. Another factor which has advanced the motivation to select the
concern subject is that it helps students to gain better knowledge about relationship management.
Businesses can have better opportunities in the market by having an advanced focus on
relationship management (Akbari, Kazemi & Haddadi, 2016). With an assistance of present
investigation the issues can be resolved and lead business firm to impressive level of success.
Major issue
The overall industry of aviation is presently facing big challenges and various issues in
the present environment. A number of factors like heavy traffic of passengers, low growth rate of
economy, increasing labour cost and increasing competition have presented a number of
challenges before the airlines organisations which must be resolved with increasing efforts. The
customers are the valuable assets for any service based company who are required to be
developed by providing real satisfaction. It is evident that there are a number of barriers that
restricts the airline organisations to retain their customers in this competitive scenario as many
low cost firms in this sector have increased. In such situation, it has become easier for the
customers to switch over the preferred brand as per their needs (Albassami, Alqahtani & Saleh,
2015). Therefore, for the companies like British airways are in strict need of making firm
strategies that can help in retaining their customer and survive in the tough competition.

Therefore, the strategy of relationship marketing has emerged in the market that can help in this
objective in appropriate way. In addition to this, it has been noticed that retention of customers
have become a major issue in the present time as the needs and demands of the clients are
increasing continuously. Their preferences and expectations from the airlines industry is
increasing day by day, they expect that the companies offer something different and innovative
who can satisfy them in better way. As a result, the firms who are potential enough to make
innovation in their services and have new things to offer their clients can easily attract the
customers. Thus, it has emerged as an issue in the present time to be innovative at each and
every step so as to retain the customers. (Vincent & Webster, (2013).
Reason of issue
Every company or a business entity establishes itself in market to gain profits so that it
can survive successfully. As per this requirement, they have to serve their products and services
to the customers according to their needs and demands. If they are not successful in providing
desired services to the clients, they may lose them and reach to have a substantial losses in
market. Therefore, in present time every firm is trying to achieve a great number of customer
base for their firm so that they can attain large number of profits and a brand value in the market.
(Bryman & Bell, 2014). Losing customers due to availability of better services by rival firms has
become very common due to which it has become crucial for all the companies to retain their
customers by adopting the practices that are helpful in maintaining better relation with clients to
retain them. This will be a preferable tool to survive in a right manner in the market for every
organisation. In addition to this, the relationship marketing aids in maintaining a brands'
recognition among customers which is also helpful in making an identity to win the competition.
(Akbari, Kazemi, , & Haddadi, 2016).
Usefulness of the research
The present research has been done on the relationship marketing concept to know its
impact and utility for airlines industry. In this context, the British airways has been chosen as a
subject for making further analysis. The research report has pointed out many issues, their
reasons and an attempt to know the relationship marketing with a deeper analysis. As per the
present report, studies have been made to know the relevance and significance of relationship
marketing in the airlines sector. This research will be helpful in gaining the knowledge about the
relationship marketing and various theories related to it (Choy, 2014). By studying these