Impact of Relationship Marketing in Airline Industry

This research aims to analyze the impact of relationship marketing in the airline industry, with a case study of British Airways. It will explore the concept of relationship marketing, tools and techniques used by airline companies, and the role of relationship marketing in British Airways. The study will provide recommendations for British Airways to develop effective marketing strategies.

RESERACH PROJECT

Table of Contents
CHAPTER 1 INTRODUCTION.....................................................................................................3
1.1 Background.......................................................................................................................3
1.2 Rationale...........................................................................................................................4
1.3 Aims and objectives.........................................................................................................7
1.4 Research questions...........................................................................................................7
1.5 Significance of research...................................................................................................7
1.6 Structure of the research...................................................................................................8
1.5 Plan and procedure for the research.................................................................................9
CHAPTER 2 LITERARTURE REVIEW.....................................................................................11
2.1 Concept of relationship marketing in airline industry....................................................11
2.2 Theories related to CRM and relationship marketing....................................................12
2.3 Significance of relationship marketing...........................................................................15
2.4 Customer retention and customer loyalty.......................................................................16
2.5 Customer defection.........................................................................................................17
2.6 Benefits of relationship marketing.................................................................................18
2.7 Interest of customer in context of airline services..........................................................19
2.8 Impact of relationship marketing on British airways.....................................................19
2.9 Tools and techniques adopted by British Airways for relationship marketing..............21
2.10 Conceptual framework.................................................................................................21
CHAPTER 3 RESEARCH METHODOLOGY............................................................................23
3.1 Introduction....................................................................................................................23
3.9 Validity and reliability....................................................................................................28
3.10 Ethical considerations...................................................................................................29
3.11 Limitations....................................................................................................................29
REFERENCES..............................................................................................................................31

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. The Aviation sector is also

involved in marketing practices at a higher level. This is mainly done through relationship
marketing so as to retain customers within business. This research will investigate the impact of
relationship marketing on British Air and evaluate the tools and techniques used by the
organisation related to relationship marketing to compete and survive in the market (Huang and
Rundle-Thiele, 2014).
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 understood 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 was well
known for its customer satisfaction level and for the ambience they gave 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 in doing so is to have those customers as their clients for
longer time which eventually make them feel like that it is a devoted firm for customers. Thus,
consumers will do word of mouth communication to their different groups and relatives, family
etc. and then this gossip chain will turn into cluster chain by enhancing number of customers.
1.2 Rationale
In the modern era relationship marketing has become the necessity of the business,
without having strong relationship with the consumers, companies can not get succeeded in the
corporate market. In the airline industry there are high competition, many firms are here which
are providing excellent extra ordinary services to the traveller. 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 his subject is that it will help in increasing
knowledge of the researcher and will give the person in depth knowledge about the topic.

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 researchers 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.
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. 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. ( A. Vincent, & M.
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.
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. By studying these theories, there will be
a benefit in the form of attaining the better understanding in relation to the customer relationship.
Besides this, the following research will be a beneficial factor for the research aspirants and
various scholars as well in getting the deep insight of airlines industry with special reference to
British airways along with a knowledge of relationship marketing. In addition to this, the
research conducted here will make an attempt to give knowledge about various tools and
techniques that are utilised for the relationship marketing. Besides this, the discussion done on
British airways and the tools adopted by them for maintaining a sound relation with their
customer and retaining them on a long term basis will also present a great opportunity to
understand the relevance and vitality of the customer relationship management. ( Albassami, F.
Alqahtani, & Saleh, (2015).)

1.3 Aims and objectives
Aim
To critically analyse Impact of relationship marketing to retain customers in the Air Line
Industry: A case study of British Airways.
Objectives
 To understand the concept of relationship marketing in the Air line industry.
 To analyse the tools and techniques used by Airline companies for marketing their
services.
 To evaluate the role of relationship marketing in British airways.
 To recommend the ways which will help British airways to make sound marketing
strategies.
1.4 Research questions
 What is the concept of relationship marketing in the Air line industry?
 What are the tools and techniques used by Airline companies for marketing their
services?
 What is the role of relationship marketing in British airways?
 What are the ways which will help British airways to make sound marketing strategies?
1.5 Significance of research
The present study is conducted with an aim of having knowledge about the relationship
marketing and its use in the field of airlines sector. The potential significance of the present
research is to have a proper insight on the use of relationship marketing. The study will also
throw some light on the current status of the aviations sector and the British airways. On conduct
a proper study on all the said aspects, several aims and objectives have been set according to
which the various phases of study will be taken into consideration so that entire scope of study
can be covered in it. In addition to this, the study has developed the framework in a way that has
given more opportunities for the research aspirants to have more study on the current topic.
Besides this, it is apparent that the said theme of relationship marketing is currently getting more
relevance. It has emerged in the market at present as a tool which is helping in retention of
customer as well as in making new clients for the business firms. The study made in the present
research will help in understanding this process and also the way through which the current study
is made. Thus, this study will help in attainment of various objectives set out for the research

along with answering various questions that have been discussed in the above section. ( ATUL,
& MONA, (2015).)
1.6 Structure of the research
The research structure is a part in the research report which helps the reader to know
about the content of the study. The structure describes step by step process that will be followed
for the completion of research. Besides this, the structure is also helpful for the researcher to be
in right direction while following the research. The researcher can take it as a guideline to be
followed so that the study can be moved in a proper path. In addition to this, the structure will
also give a proper understanding to the reader about what each chapter contains about. The
present research will follow a particular format according to which its structure has been
designed in a following manner: ( Dean, D., Croft, R., & Pich, C. (2015).)
Chapter 1 Introduction: The first step of the research report is to introduce about the topic to the
readers so that they can have an understanding about the report and the subject on which the
entire research is based. The first chapter of study contains introduction part in which the
background of the topic is discussed along with a focus on what the report will contain. Further,
it talks about the rationale of the research according to which a discussion is made on the
purpose of report. Apart from this, in the stated section, the researcher develops aims and
objectives of the research which gives a proper vision about the report. In addition to this, the
section contains significance of research for various parties so that all concerned persons can
have appropriate knowledge about the research. ( H. Tsiotsou, R. (2013). )
Chapter 2 Literature review: This section of the research contains views and thoughts of various
scholars and authors about the chosen topic. Besides this, it gives a critical analysis of the entire
study on the basis of which various decisions can be made. Apart from this, it also involves the
discussion of various theories, models and approaches that can be applicable in context of chosen
topic.
Chapter 3 Research methodology: The research methodology section of the research report
contains information about the way in which the present research has been carried out. As per
this section, the report discusses various tools and methods which have been used for collecting
the data. Further, here the discussion is made on the design and approach of research so that the
reader can have knowledge of the particular way adopted for study. Besides this, a discussion is
done on the way through which data is collected and the analysis have been made within the

study. Moreover, the last section in this chapter contains information about the limitations and
ethical considerations that have been followed in the research. ( Khojastehpour, M., & Johns, R.
(2014). )
Chapter 4 Data analysis: This section is a crucial part of the research process in which the data
collected for studying the topic is studied in an appropriate way. This section may deal with the
data by adopting the qualitative or quantitative analysis on the basis of which, the way of
studying the data is followed. It contains various statistical tools, graphs, charts, tables and
figures as well to describe the study in detailed manner as per the need of analysis.
Chapter 5 Conclusion and recommendation: The final chapter of the research report contains
the conclusion and recommendation in which the findings from the entire report is discussed. In
this section, the report discuss about the various things which have been discovered from the
report. Apart from this, the said part also contains different recommendations that are made on
the basis of issues pointed out in the report.
1.5 Plan and procedure for the research
Activities for
research
1st
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2nd &
3rd
Week
4th
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9th
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10th
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12th
Week
Introduction
Literature
Review
Secondary Data
collection
Examination
Research Design
Research
Methodology
Collection of
Primary Data
Data Analysis
Conclusions and
Recommendatio

ns
Remaining
work
Draft
Submission

CHAPTER 2 LITERARTURE REVIEW
2.1 Concept of relationship marketing in airline industry
The marketing is a function where goods and services are introduced among the
customers. The companies use this process so that they can establish themselves in the market as
a recognised brand. It includes various strategies of advertising, sales promotion and delivering
products and services to the customers. According to Paulssen, Roulet and Wilke, (2014) in this
concept of marketing a new thought has also been induced in recent years which is related to
relationship marketing. In this type of marketing, the major focus is based on making good
relations with the customers through various techniques so that they can be retained within
company. The idea behind the relationship marketing is to make terms with the customers to
retain theme for a long duration on the basis of trust and commitment between both parties. The
said marketing has emerged in present market with more focus on maintaining a sound and close
relationship with customers in every sector (Dixon, Martinez and Martin, 2015). The relationship
building is a concept that helps in managing a business with a new vision of saving time and use
it in building significant relationships with the clients so that they can be turned in to valuable
customers that are brand loyal. In this scenario, airline companies are also involved with same
efforts as other industries. The airlines is a service based industry which tries to give high quality
services to its clients through different efforts. The cited sector has emerged in the field of
marketing aggressively in the recent years so as to attain the competitive advantage. In the views
of Huang and Rundle-Thiele, (2014),serving customers with superior facilities and maintaining
strong relationships with them is a key driver that helps in gaining better position in market along
with competitive advantage. The competition has increased to a fierce level where each
organisation tries to give the services to the level best with different aspects. In such condition,
innovative mind and satisfied customers are the major components who can help in development
and success of business firms. The customers have a large choice to switch over the brands in
search of better services because of which the concept of relationship marketing has got more
relevance for British airways ( Rojas-Méndez, & Vasquez-Parraga, 2015).
The brand image of mentioned entity is market is very strong as it is well known for its
superior services through more than 295 convoys. The pricing policy of cited firm is quite
effective as it is affordable for every class of people. Thus, it has applied different cost strategies

for various customers like economy pricing for lower class, medium value pricing for individuals
requiring fringe benefits and premium strategy for high class. The quality of services is also high
as it operates on most of the busiest routes with a streamlined process. It provides properly
scheduled flights for customers to drop at their destinations. It uses good strategies for marketing
like invention of a mobile app so as to make easier reservations and bookings. At the time if
festivals and other occasions, it offers tickets at discounted rates to some certain destinations.
2.2 Theories related to CRM and relationship marketing
There are various theories related to relationship marketing which has emerged from the
economics. Several approaches have been developed on relationship marketing that are based on
exchange concept. Siems, (2013) has stated that the concept of relationship marketing helps in
creating an approach which can help the organisation in retaining of customers. This is a new
concept which highlights the relationship of marketing with customers in increasing the brand
value and productivity of the company. In this sense, there is an approach of Inter firm
relationship marketing in which a firm to firm relationship is featured. In this relationship, a
multiple level of relationship with multiple interactions between people is depicted which shows
several drivers who impact the performance on inter firm basis. The theory of inter firm
relationship marketing is based on various types of bonding that that can help in deciding various
key information and discovering all those opportunities which can help in enhancement of profits
(Hollensen, 2015). This model describes the theory which is developed on the basis of various
relational drivers that are helpful in understanding the relationships that can exist between
various firms. Apart from this, it also attempts to make a study on various effects that may be
laid on assorted factors as a result of these interactions. ( Sarmento, Farhangmehr, & Simões,
(2015). ) However, Kozlenkova & et.al., (2015) has argued that said theory presents various new
factors of market like time based competition, supply chain management, e-commerce etc. These
factors help in creating an enhnced value for business by doing better marketing, establishing
better relationships with internal and external parties and utilising useful information for
business.

Another theory in this context is related with the interpersonal relationship marketing
which is adopted by most of the industries. Christopher, Payne and Ballantyne, (2013). opined
that the the theory of interpersonal RM suggests that there are various impacts of relationship
marketing on the performance level. All these impacts are mostly dependent on a level of trust
and commitment between customers and business firms. This concept mainly reflects that by
allowing the customers to give response and feeling of gratitude towards then services provided
to them can help in establishing a long term relationships. Moreover, this feeling among the
customers can be generated only through better performance and quality services provided to the
customers so that they can have the feeling of gratitude and would like to repay it in the form of
maintaining sound relationship with the firm. Thus, this theory of marketing helps in turning an
existing customer into a brand loyal client (Peck & et.al., (2013). Tsiotsou, (2013) has
contradicted that allowing a customer to respond an emotion of appreciation transfer a short-term
sentiment into a enduring relational model. Beliefs of reciprocity and gratefulness are heritably
and socially entwined into individuals, which build their occurrence throughout societies
rational.
Continuing with this sense, there is another theory of relationship marketing that is called
Multilevel relationship marketing. As per Cohen, (2014), this theory states that there can be
many types of relationships at various level for an enterprise like relations of an individual
customer with an individual sales executive or with entire firm, group of people having terms

with entire firm or group of sales persons etc. thus, all these relationships help in impacting the
decision of making purchase at various levels. Thus, this theory entails that a loyalty of customer
is obtained through the efforts of a loyal sales person who attends the client in a impressive way
because of which he becomes a valuable customer for the company. Relationships frequently
develop and function concurrently at multiple points within an exchange. Furthermore, Gentry,
Macintosh, Stoltman & Wilson, (2014) has argued that theoretically and empirically divergent
constructs drive at interpersonal versus person-to-firm relationship levels.
The best theory which can be applied in present case is the commitment-trust theory of
relationship marketing. Gast and Ledford, (2014) opined that two primary factors, reliance and
dedication, must be present for an association to be flourishing. Relationship marketing engage
outline union with customers by meeting their requirements and giving commitments. The
conclusion of a relationship based on pledge and trust are supportive behaviours that permit both
parties to accomplish their desires. Clients not only obtain the manufactured goods or service
they’re making payment for, but they also experience valued services. The business collects
customer allegiance in return, which is precious, because firm won’t have to devastate capital or
any resources to obtain new consumers. This is why it is vital to classify the patrons who are
largely precious to the mentioned company and focus its hard work on them.

2.3 Significance of relationship marketing
The relationship marketing has a considerable importance in relation of product and
service based industry that helps in making sales of firms to be increased to a great level. In
context of airlines industry, this concept has attained a considerable importance as the
competition is increasing day by day. According to Samaha, Beck and Palmatier, (2014) the
companies who are dependent on the customers for achievement of growth and development
have to be very cautious and attentive so that they can take the benefit of any new opportunity
emerging in market before the rival firms. This recognition of any opportunity at right time helps
in the development of revenues for the organisation. This work is performed by enterprises by
having a deep analysis of the customers and their demands in the market. They make a study on
market to know the trends and demands of customers which can help them in knowing their
preferences so as to develop way which can help in fulfilling their demand. This type of activity
aid in coming up with innovative perspective in the market that can prove to be of profitable.
Koga, (2013) states that the concept of relationship marketing helps in development of the
networks for the business entity which later on develops in the form of recognised brand among
the customers at a large level. In relation to airlines industry, the top priority has become to
retain the customers at any cost for which a number of strategies are developed so that customers
can be provided with all comforts and necessities. Apart from this, the recent studies have made
it clear that mentioned sector have started giving more priority to retention of existing customer
in place of making new ones. The rationale behind this concept is that retention of customers can
be made by providing them high level of satisfaction (Lusch and Vargo, 2014). This improved
satisfaction level of customers can be easily promoted in the market. In addition to this, a
satisfied customer will definitely share his/ her opinion with other persons about the services
provided by the company which will have an impact on the decision of other customers as well.
Thus, it will help in marketing of the company for making new customer without making many
efforts for the new target market. Hence, it is necessary for business organisation to understand
the role of switch over cost of customers. The competition is fierce because of which it is easier
for customers to switch over other products to gain more advantage and get desired services. The
switching over of clients is a big loss for any company. According to Gentry, Macintosh,
Stoltman and Wilson, (2014), the various studies have shown that the cost of marketing with a
target of making new customer is much more than efforts made towards the retention of clients.

With the help of retention of customers, the airlines company will be benefited in a considerable
way as the existing customers would like to have a repetitive contact with the business. While on
other hand, the marketing in relation to new customers will be done from the words of mouth of
present client. Thus, in this way, it becomes clear that the organisations can have great
advantages in the form of relationship marketing.
2.4 Customer retention and customer loyalty
The concept of customer retention and royalty is very important for every organisation
because without them the company cannot earn profits and succeed in competitive market.
Customer retention as refers to the activities and actions which are taken by the company to
reduce the number of customer defections. It is important to remember that customers retention
are the first contact for the company and continuous through out the entire lifetime of relation.
British airways company company will get the benefits to retain the customers for a long period
of time. As this company send more money to earn high revenue and rise the cost up to seven
times less than the customer acquisition. The company has to apply strategies and techniques for
the convenience of customers and these are.
 Set customer expectation
 Become the customer trusted advisor
 Build a strong relationship and trust with customers
 Use a social media to build relationship
British Airways company has to retain the customers when employees will provide the
quality of services and will retain a loyal customers who are engaged in making the profitable for
the business. Customer loyalty measures the success of organisation in making the long term
relationships with them. Customer loyalty have direct connection with the financial results of the
organisation. Customer loyalty can be measured in terms of two combinations which are
described as below.
Satisfied and disloyal customers – When British Airline company is providing services
to customer may be satisfied but may not be loyal due to many reasons such as; entrepreneur
customers, pressure from competitors and sometimes from the out dated suppliers.
Unsatisfied and loyal customers – In this customers are satisfied with the services of
company but they are loyal. There are many reasons such as lack of available options, improved

suppliers and customer inertia. If the customer loyalty breaks then it become difficult for the
company to maintain the strong relationship with them.
2.5 Customer defection
The customer defection is a term that can be understood as a failure of a business firm in
the field of its operations. This concept can also be understood as the opposite of customer
retention. Taylor, Bogdan & DeVault, (2015) opined that the customer defection depicts the
reduction of clients to a considerable number in which the diminishing value of relationship
marketing becomes apparent. As per this concept, it is necessary to understand the cause behind
reduction of customers for a particular organisation and reasons of their switching over to other
business firms. The strategies adopted to know about all these reasons will be helpful in making
a way to adopt useful tactics for maintaining the relationship with customers. After knowing
various reasons followed by switching over to other brands, the firms can have the knowledge of
there weak-points which are not able to satisfy the customers. In response of this, they can take
necessary steps which can help in making improvements in this regard. This will help in
developing the areas which can result into retention of customers instead of their defection.
According to Vaioleti, (2016), the defectors are those persons who are not the regular customers
of a firm and use to make infrequent purchase. It is evident that such customers have the more
tendency to switch over towards the other brands. This necessitates for the enterprise to make
strategies that can convert the existing consumers into frequent buyers with a preference over
other brands. As per the studies conducted on various customers to know the reason about their
switch over has revealed different factors which are responsible for their changing preference for
the other brands. Among these factors, customers have given importance to elements like prices,
quality of products and services, technology and also the variety or alternatives present in the
market. All of these factors have a great importance and in impacting the decision of buyers in
making purchase and changing their preferences for a particular product or service. From all the
said factors, it is clear that customers would prefer to have those services which are available in
market at a reasonable price (Vamsi Krishna Jasti & Kodali, 2014). The cost of product or
service which are greater than their budget will be directly ignored by them. Further, they always
prefer to have a quality service in all aspects. Therefore, in case of receiving better quality
service from any firm, they will switch over towards t hat brand easily. In addition to this,
Abeza, Reilly and Reid, (2013) has give the views that trend of using modern technology in

globalised times have become popular. The companies who provide their products and services
on the basis of latest technology are more preferable by the customers. Apart from this, another
factor which have an impact on the customers' demands is variety of services. It is evident that
there are many customers who like to have a variety in style of products and services. Therefore,
they switch over the products which are capable of giving differentiated services.
2.6 Benefits of relationship marketing
Relationship marketing with customer aims to create create customer loyalty and to
secure custom for a long period of time (Rojas-Méndez & Vasquez-Parraga, 2015). The
company invest large amount in making the large marketing programmes to make the successful
relationship with marketing campaign. Benefits of marketing relationship includes.
 Loyal customers will help the organisation to expand their business and by taking
recommendation form families and friends.
 Customer relationship marketing tends to identify those customers who are likely to
having the high value for the company.
 Loyal customers will try new products and services which are offer by the company
because they trust on organisation.
 Loyal customers will give the feedback and their views if they are not happy with the
services of British airways company. Through this the company will able to improve the
quality of products and services. They also try to fill the identification gap which are
arises in market and giving suggestion to organisation for making the strong relationship
with the customers (Salaberry & Comajoan, 2013).
 The customers will able to use those products and services even at a high prices which
are offer by the company.
 The customers who are satisfied with the services of company have become an effective
promoters because they share their experience with other and this create a new customer
for British Airways.
Relationship marketing will help the company to increase the marketing skills and to beat
their competitors. The marketing department of British Airways has to conduct time to time
market research to identify the requirements of customers which are changing from time to time.
Through the relationship marketing it help to develop the unique style and make strong the
position in global competitive market. Through this they can develop the trust among the

customers and confidently respond them regarding their issues which are facing by them. The
managers are implementing the effective relationship marketing strategy and it become
profitable to focus or shift from constantly trying to acquire new customers and to understand
about their behaviours and needs of existing customers (Samaha, Beck and Palmatier, 2014).
2.7 Interest of customer in context of airline services
In the present context, the airlines industry is operating in a highly competitive market
where it is necessary to have a innovative strategy that can help in making customers happy and
intact with the firm. In the views of Sarmento, Farhangmehr & Simões (2015) the organisation
under aviation sector are necessary to be developed and have a worldwide relationships so that
they can expand their market in better way with attainment of competitive advantages. When the
customers attain better service and improved satisfaction from any firm, they quickly switch over
to it. The customers always prefer to have a service that can provide better satisfaction to them at
a reasonable price. In context of airlines, there are various factors in this industry which needs to
be improved by the enterprise to provide satisfaction to the customers. These factors are charges
for the baggage, service delivered at airports, waiting rooms, cleanliness, frequency of flights,
comfortability, schedule of flights on the basis of connecting it from other airports etc. These
factors must be taken into consideration for framing various strategies to satisfy the clients. On
this basis, the airline industry can manage its activities and services to retain the customers
(Siems, 2013). Apart from this, by correct identification of all those areas that can result into
satisfaction of customers, the airline companies can develop their services. In this regard, the role
of relationship marketing increases to the great extent. The firms take help of their valuable
customers to get their feedback and suggestions sop that the level of satisfaction among the
clients can be monitored. In addition to this, there are lots of development in the field of
relationship marketing because of which the companies have increased their value and customer
base.
2.8 Impact of relationship marketing on British airways
The marketing on the basis of relationships is related with the retentions of existing
customers in a way that can impact the parties involved to achieve the desired objectives.
Samiee, Chabowski and Hult, (2015) has opined that in this concept, the relationship is
maintained by the party at various levels with number of stakeholders so that an overall benefit
can be attained. The British airways is one of the Europe's largest aviation group. The stated

organisation maintains the relationships with all the parties because of which it has attained a
substantial revenue with a a large number of loyal customers. For the mentioned entity, the
relationship marketing has helped in creation of win win situation where customers are put in the
central level. In the views of e Hasan & et.al., (2014) the customer loyalty can be termed as a
relationship with the client which is based on friendship and supportive attitude of the consumer
with the company so that his belief can be maintained at a strong level which can help in
retaining customers with the organisation in all situations. The cited enterprise manage the
customer relationship with the help of various models and theories along with sophisticated
technologies. The studies have revealed that the British airways is a company that operates in a
market who has a number of characteristics like over capacity, regulations of the government,
fierce rivalry and other influences. These factors induce the said entity to develop a strong
relationship with the customers so as to survive in a better way in the market (Kozlenkova &
et.al., 2015). In addition to this, the organisation has launched various strategies that can impact
its position in market along with the retention of customers. All these strategies have helped in
making customers more loyal towards the brand so that the organisation can manage its survival
in better way. In addition to this, the aforesaid entity has established various goals and objectives
to attain the profits. These objectives have been attained by the said firm with the help of
implementing the strategies. In relation to airlines industry, the top priority has become to retain
the customers at any cost for which a number of strategies are developed so that customers can
be provided with all comforts and necessities. Apart from this, the recent studies have made it
clear that mentioned sector have started giving more priority to retention of existing customer in
place of making new ones. MacInnis, Park and Priester, (2014) has stated that with the help of an
incorporated source of information is not only less costly to hold back, it also improves decision-
making reactivity and assist in the determination of cost diminution initiatives. The technologies
used in relationship marketing is also helpful in making the complex data simple so that it can be
easier for said company to manage its clients with a more focussed approach. Thus, there are
various impacts for the mentioned organisation as a result of relationship marketing that helps in
managing the business in better manner. Apart from this, it is a useful strategy of retaining
customers within business which helps the organisation in achieving the good position in market.
This has also opened up many gates for achieving better opportunities in market along with a
better approach of cost saving techniques (Hoppner, Griffith and White, 2015).

2.9 Tools and techniques adopted by British Airways for relationship marketing
British Airways have adopted many tools and techniques for making the strong marketing
relationship with customers and to retain them for a long period of time. The relationship
marketing tools and techniques will help the organisation to run successfully in competitive
market. This company has offers a varieties of services to customers and the complexities of
management has to enhanced relationship marketing. These tools and techniques are as follows.
Networking – It is powerful relationship marketing technique. It does not only increase
the brand awareness but also it expand the potential customer base. As it is win-win strategies
(Paulssen, Roulet and Wilke, 2014).
Build a brand identity – A unforgettable brand will always attract the customers for a
long period of time. British Airways has strong brand identity then customers will wish to
become a raving fan.
Give the customer free information – British airways is providing the information
regarding the products and services that what they are offering to customers. Through this
customers are free to ask anything and the employees are given them an appropriate answer for
resolving their issues.
Loyalty rewards – To get succeed in relationship marketing, British airways is trying to
expand their traditional type of programmes (Rojas-Méndez & Vasquez-Parraga 2015). The
members of this company are cherishing their loyal customers and rewarding them. Through this
they are creating a perfect loyal programme and managing it like a tool.
Special events – British Airways are organising the special events for existing and new
customers and it is good way to build a strong relationship with them. Events can cover the to
share customer experience and many more. It is also an another way to say thank you to
customers for using these services.
Communicate often – Most of the relationship are depends upon the communication.
British Airways company is trying to make strong relationship with customers in terms of
effective communication. They are using social media, advertising to communicate with the
customers (Taylor, Bogdan & DeVault, 2015).
2.10 Conceptual framework

Marketing efforts
to make good
relations
Brand image
Pricing policy
Quality services
Good marketing
Innovative ideas
Applying Theories of
relationship marketing
Inter-firm RM
Inter personal RM
Multilevel RM’
Commitment-Trust theory
of RM
Building of an
ideal
relationship
marketing

CHAPTER 3 RESEARCH METHODOLOGY
3.1 Introduction
Research methodology is a one of the essential part of the any research project. It is a
critical structure to examine various research tools and techniques. Research methodology is
provide a effective structure to research their concerning topic. It is helps to provide effective
research techniques which are helpful to generating effective information. Research
methodology is aids to making fundamental fact and figures which means research report is laid
on relevant fats and information. In this part of research, discussion is made on tools and
techniques which are used in research project. Further, various tools and techniques will be
applied for the effective analysing. This also provides a clear guidance regarding the methods of
research which should be applied by the researchers. Techniques are more effective where as
there are various kinds of new techniques and methods which are more applicable in concerning
research project. In this research various part of the research has been discussed and adopted by
the researcher. There are research designs, data collection, sampling tools, limitation analysis the
research, philosophy of the research will be discussed in this research report. Along with that
various legal considerations is followed along with the whole discussion. One thing is limitation
which would be discussed in this research project which are faced while conducting the research
program ( Blumberg, Cooper & Schindler, 2014).
3.2 Research philosophy
The research philosophy is based on assumptions where organisation is a laid on such
presumes. For the research process, researcher through study has made an interpretation. This
means researcher has ensured to information is relevant and related to the respected topic. The
philosophy of research is deal with the nature of research along with its source so that the
development of knowledge can be done accordingly. It is helpful for addressing beliefs and
assumptions of their concerning research project. Research philosophy is based on development
of knowledge where organisation is more reliable on that. It is a way to addressing future
assumptions and fact which create an impact on the organisation. Values and beliefs set out in
research helps in understanding each research process. In the research report each process is

comes on interpolations and then interpretation is made as per the current market situation. In
this report proper research philosophy is applied by proper allocation of resources. With the help
of all these will consider at in budget process of business concern. The research philosophy has a
two sub parts one is positivism and interpretivism. Where, the positivism philosophy is mainly
based on research about the existing facts, so that the end results can be linked with logical
reasons. Along with that all validated outcomes will be attained through the whole process of
research. In this process there are so many statistical tools will be used to meet quantitative
research procedure. (Knobe & Nichols, 2013). In this type of research universal facts and figures
aid to determine perceptions and assumptions. This method is extremely well organized which
make high results and reliability. Researcher can also take help quantitative tools to analysis
statical research. On the other hand other one is interpretivism which can help to provide
integration to analysis the diverse approaches. In this process researcher create differentiate
between various approaches and setting up new facts. The current study is based on
interpretivism philosophy, which can provide deeply investigation on research topic. In this type
of research generating researcher taken sample size so that can be easier to investigating. Here,
research is conducted by undertaking a controlled and structured approach of study (Leitch, Hill
& Harrison, 2010). This is essential for accomplishing all pre-determined objectives and aims of
the research ( Brinkmann, 2014).
3.3 Research approach
The next process of the research methodology is research approach. The present research
topic is very vast to analysing. In this research various issues as well as some strength will also
be there. In this point research ensure deeper information related to the concerning topic. Proper
identification of research approach help researcher to achieving objectives and pre determined
aims. As per this approach this research approach is based on two forms of the approaches. One
is inductive and second is deductive. Where as inductive approach is based on testifying the aims
and objectives of the research process. In this type of approach researcher make observations to
such research field and develop their areas if it is required. In this research researcher can use
existing theories. This research pattern is helpful to provide viewpoints of researcher where they
can improve the concerning areas (Sultan & Yin Wong, 2013). One the other hand deductive
approach is based on hypothesis techniques. This can be helpful to applying suitable possibilities
on research project. Researcher used these techniques which provide accurate outcomes with the

reaching at conclusion point (Oyegoke, 2011). In this present report researcher used inductive
approach where researcher make analysis with this approach. So, researcher has generated aims
and objectives which has covered the entire issue of the research report. Further, this also helps
identifying a clear picture for the readers in a way which is potential for them to create an
understanding of the topic. ( Bryman & Bell, 2014)
3.4 Research design
The research design is help to provide ways of execution. The research design is laid on
specific styles which would be helpful to examine all investigations. The research design is a
appropriate manner to undertake all research process. It is more helpful in provide better decision
making situation. There are various types of research design, which have a numerous
characteristics. Such as descriptive exploratory, experimental, case study, causal etc. where the
exploratory research design is based on deep research on the respected topic. This type of
research gives detailed explanation on the report (Taylor, Bogdan & DeVault, (2015). The
descriptive type of research is laid on facts and figures. In this research design does not involve
any type of exploration on the related topic. On the other hand, experimental research design
consists of scientific studies that involves in their research. This type of research is based on the
experiments which researcher has chosen in their report (Creswell, 2013). In the present report
researcher used descriptive research design where it is helpful to provide deep analysis with the
help of available facts and figures. In this methodology there is a various data collection from the
different sources along with the various models and theories which are used in this research
report. It is more helpful to provide accurate manner to aims and objectives accomplishments.
This, design have been chosen in study as it will help in conducting the qualitative research
process. Apart from this, cited research design also aid to provide deep study about the
concerning topic. It will also help to provide better way for finding a solution for the current
topic. This would be helpful to achieving report objectives and aims. Further, case study
approach has been presented as well so as to give a better ideas of entire scenario with special
reference to chosen company ( Choy, 2014)
3.5 Research choices
in this stage research choice is affect to whole research process. Where researcher should
have to chose effective research. Research is based on different kind of tools and techniques. The
research choice is selected methods of implications. Further, this selection gives significant

information on what data has been collected by the researcher. In research report all thing wire
done in systematic manner. In present scenario, two methods have been applied for the data
collection. Most of the time qualitative methods will be used in research project. One is
qualitative or other one is quantitative. Where both are the methods will lay more emphasis on
subjective areas during the existing report. Whereas, qualitative method will help to understand
the entire process and has included some theoretical aspects and models (Saunders, 2011). On
the other hand quantitative method involves scientific methods which may include graphs, charts
etc. Present report is laid on qualitative method where it will be helpful to analyse all tools and
techniques in right manner. With the help of some qualitative methods researcher have to
develop effective and reliable outcomes. This method is more helpful as current study is based
on descriptive method of study and positivism philosophy (Silverman, 2016).
3.6 Data collection
Data collection is most essential part of the any research project. It help to make proper
investigation on the respected project. Researcher ensure collected data should be reliable or
relevant which can be used in that research process. In this process data collection process is
based on two ways. One is primary data collection method and second is secondary data
collection method. Where as primary method is based on survey, observation, questionnaires etc.
in this method data should be specific and first handed. ( Salaberry & Comajoan, (2013 On the
other hand, secondary data collection method is based on referring books, journals, previous
research articles etc. In this research report, researcher takes both the data collection methods
which aid in providing effective information related to concerning project. Here, questionnaire
method is adopted to collect primary data as it is beneficial. Through questionnaire method,
analysis is easier and large population can be contacted at lower cost. The close ended
questionnaire has been made in this study. Research project is totally dependent on information
which are provided by various data collection source. Combination of both the methods of data
collection is generate proper knowledge about the specific topic and more efficient for the
applying pre determined tools and techniques. ( Gast, and Ledford, 2014.)
3.7 Selection of sampling method and size
The sampling is a process to identifying targeting mangers. Mainly large number of population
is divided into small number of units so that they can be referred for study purpose. The
sampling is a process where researcher makes an attempt to reduce the large size of population

for easier study (Levy & Lemeshow, 2013). It is necessary to divide them into smaller number so
that they can be study on easier and effectively. In simple term it can be said that it not possible
to take large number of people and make research so in that case selected people will be taken in
that procedure. It make more effective research to researcher and more manageable. ( Reynolds,
and et.al., 2014). It is nearness to adopt the right methodology of sampling to attain accurate
results. Sampling is based on whole research. There are mainly two types of sample selection
one is probabilistic or other one is non probabilistic. As per the probabilistic method, there is
random sampling method which provide each respondent have equal chance of getting selected
for the current study purpose. Along with that sample would be taken as randomly. On the other
hand under non probabilistic method, there is convenience sampling where provide less chance
for selecting respondent and selected on non random basis. In research report researcher take 10
managers as respondents to get on research. Along with that researcher applied probabilistic
methods where they filling questionnaires to get information. It is very effective way to generate
information. ( Mackey & Gass, 2015).
3.8 Analysis of data
The research report is based on relevant data so researcher ensure data should be more
accurate and reliable. They properly analysing the whole data which are used in current research
report. The data analysis is performed on the data which are collected for the study purpose on
primary basis. This can be done from the qualitative methodology. Where this method is laid on
collected responses of respondents are analysed and on the other hand quantitative method is
based on research which can be reached out from the study. In present research , both methods
will be adopted to fulfil their all objectives and aims. Proper analysis of collection of data is
more effective to the whole research project. In research report analysis will be help in
understanding the current status of research report. In addition to this represent the analysis the
both methods including qualitative and quantitative is more helpful to provide effective research
analysis. This would be help to understanding the current position in a better way. On the other
hand through qualitative method scientific methods for better understanding of analysis include
graphs, charts etc. has been used( Neuman, 2016).

3.9 Validity and reliability
The validity and reliability are the two measuring factors in the field of research process
that helps in confirming the credibility of the study. The validity of the data and its analysis
along with entire research process is confirmed on the basis of validity scale. The validity of
research can be understood in the form of study methods that have been adopted in the right and
appropriate way with the help of credible measures on which the trust can be done. Thus, the
validity in the research is related with elements and resources used for the data analysis and other
measures. Apart from this another factor which is considered in the research area is reliability.
The reliability of the research can be checked with the help of various measures which can prove
that results obtained by applying various instruments or methods generate similar results each
time. If the results gained each time is same, then the reliability of that research is high. While, if
the results that are gained different each time on application of tools and instruments can result in
less reliability of the research. To measure the reliability, various types of tests can be applied
like test rates method, inter rater etc. the present research has been conducted with the
consideration of both factors. As per these factors, it has been taken into consideration that all the
information collected for the study purpose have been retrieved from a reliable source. Apart
from this the study have been done with valid measures so that the results obtained can be relied
upon. The present research has collected all the relevant data from reliable source of books,
journals and articles whose references have also been presented. Apart from this, the primary
data have been collected directly from the managers by contacting them on personal basis and by
sending them mails for filling the questionnaires. Thus, the present research is both reliable and
valid.

3.10 Ethical considerations
The ethical considerations in the field of research have a lot of importance according to
which it is necessary that all the procedure undertaken for studying have been taken on an ethical
basis. The research process must highlight the ethical consideration so that it can be proved that
the study is completely undertaken in a right manner. The ethical consideration in the research
process means to collect the responses of participants in the ethical manner that means no
coercion or use of pressure has been done to gain tehir reponses. Further, all sources and studies
that have been mentioned in the study have been collected from the credible source. In addition
to this, it is necessary for the researcher to maintain all the personal information collected from
the respondents confidential. So, in case of need to disclose any information, it is necessary to
have a prior permission from them. The researcher must ensure that no data have been presented
in an exaggerated manner that can give any misleading information to the readers. All the
mentioned ethical considerations have been taken into account in context of present research as
well.
3.11 Limitations
The limitations imply various factors that have acted as a limiting factor while
conducting the study. It is completely normal to have some limitations in conducting the
research, however, it must be tried to the level best that these limitations remain to minimum
extent. The limitations can be faced in any stage like in framing of aims and objectives,
collection of data, implementation of the methodology for research, time, budget etc. These
limitations are necessary to be highlighted in the report so that the honest presentation of the
research can be done. In present research, the major limitation was faced in time and collection
of data. The time factor was less to complete this research due to which the research have been
performed on limited sample size. Thus, the results obtained have also shown the responses
based on limited people's views. Apart from this, data was collected from managers of the British
airways who are not easy to reach and have less time to spend on giving responses. However, it
has been tried to give well formed research and interpretations from all aspects.

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