Research Report: Customer Loyalty's Impact on British Airways Sales

This research project investigates the significant impact of customer loyalty on the business performance and sales of British Airways, a leading global airline. The study begins with an introduction outlining the importance of customer satisfaction and loyalty in enhancing productivity and profitability. The research aims to analyze strategies for improving customer loyalty to boost performance and sales, employing various research methodologies including a literature review exploring the concept of customer loyalty, factors influencing it (such as price and quality), and its impact on business outcomes. The research methodology includes positivism philosophy, a deductive approach, and both qualitative and quantitative research techniques, with data collected through a survey of 30 British Airways customers. The report details the research activities, from proposal development to data analysis, and presents findings on customer satisfaction, loyalty, and brand image. It concludes with recommendations for enhancing customer loyalty to improve business performance and sales, supported by a Gantt chart outlining the project timeline and a sample questionnaire used in the survey. The findings aim to provide actionable insights for British Airways to strengthen its market position and customer relationships.

RESEARCH
PROJECT

Table of Contents

Research Title
To investigate the impact of customer loyalty on the business performance and sales of
organisation: A case of British Airways.
1 INTRODUCTION
Customer is very significant role within the corporation by which firm can improve its
productivity and profitability. It is very important for company to satisfy customer and deliver
services accordingly. Customer loyalty is highly assisted to organisation in enhancing business
performance and sales.The following research aim is to analyse the strategy to improve customer
loyalty so as company can able to improve its performance as well a sales of product and
services. For this purpose, investigator has used various research methodologies which assisted
in investigate the information about customer loyalty with respect of the British Airways. It is the
flag carrier and the largest airline in the UK.
Research Aim
To study the role of customer loyalty in improving the business performance and sales of
organisation: A case of British Airways.
Research Objective
 To explore the understanding about customer loyalty
 To analyse factor that affect customer loyalty or customer attraction of the British Airway
 To understand the influence of customer loyalty on the business performance and sale To recommend the strategy to improve customer loyalty so as corporation can able to
enhance business performance and sales.
Research Questions
 What is the meaning and concept of customer loyalty
 What are different factors which influence customer loyalty and their satisfaction level
 What are the relationship between customer loyalty and business performance
 What are different strategies to improve customer loyalty in the company.
British airways is one of the world leading global premium airline. It flies to more than
300 destination worldwide and carried 32 million passengers. In the following study, investigator
have main objective to select this topic is that scholar have great interest and curiosity to know

more about the business performance and customer loyalty about their organisation. In addition
to this, researcher have sufficient knowledge and sources to investigate the relevant information
about this topic. In addition to this, another major reason to choose this topic is that British
airline have strong position and brand image in the market in the field of airline.
LITERATURE REVIEW
Understanding about the customer loyalty
As per the view of Yuksel, Yuksel and Bilim,(2010) customer loyalty is a behaviour and
attitude of the customer by which they influence to purchase the product and services from the
same organisation. It can be said that it is a trust of the customer upon the organisation and brand
by which they believe that company is always loyal and true with them about the quality,
features and process of the product and services. On the contradicting view Yoshid and James,
(2010) stated that customer loyalty is a measure that aid in measuring the performance and value
of the organisation. If customer loyalty of the organisation is strong then its profitability and
market share can automatically high.
Factors affect customer loyalty about the product and services
According to the view of Panneerselvam, (2014) the things which affect the customer
mind at the time of purchasing the product and services is known as the customer loyalty
components. As per the view of Fiegen, (2010) prices is major component that affect the
customer loyalty. Many customer likes to purchase that product and services which is available
in the lower prices. Price is major factor which is considered by the customer at the time of
purchasing the product and services. In the contradicting view Neuman and Robson, (2012) said
that quality and feature is another major component that affect the customer loyalty about the
product and services. Most of the customer likes to purchase that commodities which provides
the high quality and effective features to customers. Product quality and features are that
measure which satisfy the needs and want of the customer. Therefore, most of the customer
attracted toward that product which effectively satisfy their need and wants.
Impact of customer loyalty on the business performance and sales
According to the view of Gay, Mills and Airasian, (2011) customer loyalty is one of the
measure and tool by which company performance and sales can automatically improved. It is a
kind of process by which customer influence to buy the product and services from same
organisation. Once the customer are influence to purchase the product and services again and

again then profitability and sales of the firm will automatically improve. On the other hand if
customer loyalty are poor of the business unit then market share, profitability will automatically
decrease. In the opinion of Beard (2014) customer loyalty assists in developing the strong brand
image of the organisation in the market. Once the organisation's customer loyalty improved then
company can easily launch the new product and services because firm ensures that customer will
defiantly like the new product and services. According to the view of Eid, (2011) customer
loyalty can affect the customer service. If customer gets the prompt and quick services then
customer will automatically satisfy and attracted to purchase the product and services from the
same organisation.
RESEARCH METHODOLOGY
Research Methodology is one of the aspect that assist to the researcher in investigating
the issue of the research study. With assistance of the research methodology, scholar can easily
address the actual issue and problem. In addition to this researcher can also address the reliable
and valuable conclusion of the study. There are various kinds of methods that need to consider in
the research methodology that is research philosophies, research approach, research techniques,
research design, data collection, sampling etc. In the following research study, the major aim is
to analyse the impact of the customer loyalty on the performance and sales of the British
airways. For this objective, scholar will use the various methods and techniques of the research
methodology- Research Philosophie- This is significant aspect in the research methodology by which
investigator can conduct an impressive study. This helps in addressing the right and
optimum solution for entire investigation. It is divided into two kinds that is
interpritivism and positivism (Smith, 2015). Interpritivism research philosophy address
the concept, model and framework. On the other hand in the positivism research
philosophy, scholar have main aim to consider on the main motive of the research study.
In the following investigation, positivism research philosophy will applied because the
through which right solution can obtain. Research approach- Research approach assist in addressing the right solution about the
research questions. While scholar uses some hypothesis then it is known as inductive
approach. On the other hand in the deductive approach, hypothesis are framed by the
researcher. In the present research study, deductive research approach will apply in order

to analyse the impact of the customer loyalty on the business performance and sales of
the British airways. Research techniques- Research Technique is one of the major part of the research
methodology which assist in addressing the main objective of research study (Taylor,
Bogdan and DeVault, 2015). There are major two kinds of research techniques that is
qualitative and quantitative. In this following research study, both qualitative and
quantitative research technique will apply to address the valid and reliable conclusion of
the investigation. Data collection- Data collection is a crucial aspect methodology through scholar will
collect the information about the topic of study. There are major two kinds of data
collection technique that is primary and secondary (Mackey and Gass, 2015). In the
primary data collection, interview, survey, questionnaire, observation can use by scholar.
In the secondary data collection, scholar can use secondary information by secondary
sources. In the following research study survey method will use for the data collection.
Scholar will conduct the survey of 30 customers of the British Airway.
 Sampling-This is another significant aspect by which researcher can select some sample
and some people or group of people can take sample size. In this following research,
random sampling is used and 30 customers of the British airway will select a sample size.
ACTIVITY/WEEK 1 2 3 4 5 6 7 8
Develop the
research proposal
Design the research
aim and objectives
Review of the
research
methodologies
Design the literature
review

Collect the primary
and secondary data
of the customer
loyalty of the British
airways
Analysis and
interpretation of the
collected data
Conclusion and
recommendation
Final report
submission
TASK 2
DATA ANALYSIS AND FINDINGS
In order to accomplish the entire research study, investigator have to required major three
resources that is time, money and human resource. Investigator has very limited time period that
is why Gantt chart techniques ha sued by scholar so as each activity can organise according to
limited time period. In this technique, the entire time is divided into 8 weeks so as scholar can
address each questionnaire an effective manner. In addition to this, finance is another major
component which required in various activities of investigation like printing questionnaire,
travelling, transportation, use of internet etc.
Demographical information
Name
Age
Gender-
1 How frequently you are using the airline services of British airways?
 Two time in month
 within the three month
 within six month

 one time in a year
2 Which component of the British Airways affect you satisfaction level?
 Quality of airline services
 Price of the airline services
 Effective goodwill
 Prompt and easy services
3 Do you agree that customer loyalty assist in improving the performance and sales of the
organisation.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly disagree
4 Do you agree that customer loyalty assists in developing strong brand image in the market?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly disagree
5 Do you agree that British airways effectively satisfied the needs and wants of the customers?
 Yes
 No
6 Are you satisfied with existing approach of the British airways for improving customer
attraction and customer loyalty?
 Highly satisfied
 Satisfied
 Neutral
 Dissatisfied
 Highly dissatisfied
7 Would you like to buy back British Airways airline services in the future as per your previous
usage experience?

 Definitely will
 Probably will
 Might or Might not
8 Recommend the strategy by which customer loyalty can improved in order to enhance the
business performance and sales?
The main aim of this research study is to analyse the impact of customer loyalty on the
business performance and sales of organisation. In this following research study, investigator has
conducted the survey for the 30 customer who use the British airways service at regular intervals.
For this objective, investigator prepared the question air along with questions of customer loyalty
and conduct face to face survey. With assistance of these criteria, investigator can able to know
the actual answer and reaction of the customer about the company's service.
Theme 1:Customer frequently you are using the airline services of British airways
How frequently you are using the airline services of British
airways? Frequency
Twice in a month 10
Once in a three month 15
Once in a six month 3
Once in a year 2
Theme 2: Component of the British Airways affect you satisfaction level
Which component of the British Airways affect you satisfaction
level? Frequency
Quality of airline services 15
Price of the airline services 6
Effective goodwill 3

Prompt and easy services 6
Theme 3: Customer loyalty assist in improving the performance and sales of the organisation
Do you agree that customer loyalty assist in improving the performance
and sales of the organisation. Frequency
Strongly Agree 12
Agree 10
Neutral 2
Disagree 3
Strongly disagree 3
Theme 4: Customer loyalty assists in developing strong brand image in the market
Do you agree that customer loyalty assists in developing strong brand
image in the market? Frequency
Strongly Agree 15
Agree 10
Neutral 1
Disagree 3
Strongly disagree 1
Theme 5: British airways effectively satisfied the needs and wants of the customers
Do you agree that British airways effectively satisfied the needs and
wants of the customers? Frequency
Yes 25

No 5
Theme 6:Customer satisfied with existing approach of the British airways for improving
customer attraction and customer loyalty
Are you satisfied with existing approach of the British airways for
improving customer attraction and customer loyalty? Frequency
Highly satisfied 15
Satisfied 10
Neutral 1
Dissatisfied 3
Highly dissatisfied 1
Theme 7:Customers like to buy back British Airways airline services in the future as per your
previous usage experience
Would you like to buy back British Airways airline services in the
future as per your previous usage experience? Frequency
Definitely will 15
Probably will 10
Might or Might not 5

Research evaluation is significant aspect in the study through which collected
information can effectively analyse and assess. This is major two kind that is formative and
summative. In the present study, formative will apply to conclude the collected information
Theme 1:Customer frequently you are using the airline services of British airways
Twice in a monthOnce in a three monthOnce in a six month Once in a year
0
2
4
6
8
10
12
14
16
Frequency
Interpretation and analysis:
Based on the above graph it can be interpreted that out of 30 customers, 10 customers use British
airways twice in a month, 15 customers use the airways once in 3 months, 3 customers use
British Airways once in 6 months and only 2 customers are there who use British airways only

once in a year. The data suggests majority of customers make use of British Airways two times
in a month.
Theme 2: Component of the British Airways affect you satisfaction level
Which component of the British Airways affect you satisfaction
level? Frequency
Quality of airline services 15
Price of the airline services 6
Effective goodwill 3
Prompt and easy services 6
Quality of airline services
Price of the airline services
Effective goodwill
Prompt and easy services
0 2 4 6 8 10 12 14 16
Frequency
Interpretation and analysis:

The data and the graph suggests that 15 customers of British Airways are satisfied with quality of
service that the airlines provide, 6 customers are satisfied with the prices being offered by the
airlines, 3 people states that they their satisfaction level is affected by the effective goodwill of
the airlines and6 people states that their satisfaction level is affected by the prompt and easy
service being given by British Airways.
Theme 3: Customer loyalty assist in improving the performance and sales of the organisation

Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
Interpretation and analysis:
The data and the pie chart above interprets that 12 people agree with the statement that customer
loyalty plays an important role in improving performance and sales of an organization, 10 people
do agree with the statement, 2 people are neutral about the fact. However, 3 people are disagree
with the statement that customer loyalty plays an important role in improving the performance of
an organization and 3 people strongly disagree with the statement
Theme 4: Customer loyalty assists in developing strong brand image in the market

Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
Interpretation and analysis:
Based on the above pie chart and data it suggests that 15 customers strongly agree with the fact
that customer loyalty assist in developing strong brand image in the market, 10 customers agree
with statement, 1 customer does not have any strong opinion about the fact. However, 3
customer disagree with the fact that customer loyalty assist in developing strong brand image
and 1 customer is highly disagreed with the fact.
Theme 5: British airways effectively satisfied the needs and wants of the customers
Do you agree that British airways effectively satisfied the needs and
wants of the customers? Frequency
Yes 25
No 5

Yes
No
Interpretation and analysis: This section has stated that British airways effectively satisfied the
needs and wants of the customer by deliver high quality of airlines services. From the Survey of
30 customer of British airways , 25 customers are effectively satisfied by the existing services of
the cited venture. On the other hand 5 are dissatisfied from the same.
Theme 6:Customer satisfied with existing approach of the British airways for improving
customer attraction and customer loyalty
Are you satisfied with existing approach of the British airways for
improving customer attraction and customer loyalty? Frequency
Highly satisfied 15
Satisfied 10
Neutral 1
Dissatisfied 3

Highly dissatisfied 1
Highly satisfied Satisfied Neutral DissatisfiedHighly dissatisfied
0
2
4
6
8
10
12
14
16
Frequency
Interpretation and analysis:
Based on the above graph and data, it can be interpreted that 15 customers are highly satisfied
with the existing approach being adopted by the airlines for improving customer attraction and
loyalty, 10 people are satisfied with the statement. 1 customer is neutral about the statement if
the airlines have adopted the right approach or not, 3 people are dissatisfied with the statement
that airlines is adopting the right approach for improving the customer attraction and loyalty and
1 customer is highly dissatisfied with this statement of British Airways approach
Theme 7:Customers like to buy back British Airways airline services again ion the future

Definitely will
Probably will
Might or Might not
Interpretation and analysis:
The above pie chart and data suggests that 15 people will buy back the services of British
Airways based on their previous experiences, 10 people may probably buy the experience of
British Airways based on their previous experiences, 5 people says that they might or might not
want to experience the services of British Airways based on their previous experiences.
CONCLUSION AND RECOMMENDATION
From this research study it has been analysed that British airways delivers effective and
quality services of airlines to it customer so as its customer loyalty is high. From the survey of 30

customers it has been analysed that cited firm using effective measure to improve the customer
loyalty. It has been also concluded from this investigation that cited venture should improve its
productivity and quality of air services so as it can effectively meet actual expectation of
customers. From the collected data it has been seen that in the survey of 15 customers who
regularly purchase the services of cited venture, 10 customers have effectively satisfied with
current approach and services .It has been also concluded that there is very close relationship
with customer loyalty and performance of business. It has been also analysed that customer
loyalty assists in improving performance and market share of the organisation. Following are
some recommendation for British airways-
 Company should use online channels for identifying the actual needs and wants of the
customer so as it can effectively satisfy their needs. Company should use effective promotional campaign for attract the customer toward the
airlines services.
Further Area
From this entire research it has been analysed that this study can used in the other organisation
because there is direct relationship between the customer loyalty and service quality of the
business enterprise. If company deliver effective services then customer loyalty can
automatically improve. This study can apply in other organisation to measure this aspect that
relation between customer loyalty and business performance. This investigation can apply on the
other industries like travel and tourism, retail, hospitality etc.

REFERENCES
Journal and Books