Impact of Relationship Marketing in Airline Industry

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