British Airways: Decision Making with AI and Big Data

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This report, prepared by a student and available on Desklib, analyzes how British Airways can improve decision-making and customer satisfaction using Artificial Intelligence (AI) and Big Data. The report begins with an executive summary and introduction, defining the research question: "How can British Airways improve their customer satisfaction?" It then explores relevant theories and frameworks, including Customer Journey, Buying Process, Value Flow Analysis, and the PSS model, and discusses their applicability to British Airways. The methodology involves secondary research and theoretical analysis. The analysis section examines how British Airways can utilize AI and Big Data to improve decision-making across various customer touchpoints, including the customer journey, and the consumer buying process. The report concludes with recommendations for British Airways based on the findings, aiming to enhance customer satisfaction and optimize business operations through data-driven insights and technological advancements. It emphasizes the importance of AI and Big Data in the fast-changing airline industry and highlights the potential for improving customer service and overall business performance.
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Running head: MANAGER DECISION MAKING AND INSIGHTS
MANAGER DECISION MAKING AND INSIGHTS
Student’s Name
University Name
Author note
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1MANAGER DECISION MAKING AND INSIGHTS
Executive summary
The purpose of this report is to recommend the ways in which British Airways can use Artificial
Intelligence and Big Data. The objective of the report is to analyze and discuss theories and
frameworks which help the business organization to improve decision making and improve
customer satisfaction in the organizations. The report discusses theories such as Customer based
Journey, Buying process of the customers, Value flow analysis and neely’s PSS model. Further,
the report determines the applicability of the theories on the chosen business organizations.
Lastly, it sums the main points and concludes the report. It provides recommendations and
suggests ways to improve decision making in the organizations.
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2MANAGER DECISION MAKING AND INSIGHTS
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Theory and description..............................................................................................................4
3.0 Methodology..............................................................................................................................8
4.0 Analysis and discussion.............................................................................................................8
5.0 Conclusion...............................................................................................................................13
6.0 Recommendations....................................................................................................................14
References......................................................................................................................................15
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3MANAGER DECISION MAKING AND INSIGHTS
1.0 Introduction
The decision making in the business organizations can be further enhanced with the help
of artificial intelligence and big data. Through effective decision making process, the business
organizations can increase the level of customer satisfaction. In the fast changing business
environment, decision making needs faster pace (Lemon and Verhoef 2016). Therefore,
implementation of AI and Big data has become a vital element for the business organizations.
The advancement and development of technology in the business organizations has changed the
way in which businesses interact with the customers and take decisions in the organizations. Big
data and Artificial intelligence are being used for augmenting the opportunities prevailing in the
industry. Big data and Artificial intelligence are being used in all the industries with the
development and advancement of technology (Edelman and Singer 2015). It is being used by the
industries especially the airlines industry to improve their customer service and increase the level
of customer satisfaction in the airlines industry. The purpose of this report is to identify the ways
in which British Airways can improve their decision making in the organizations with the use of
Artificial intelligence and big data. It determines the ways in which the organizations can
improve their services and increase the level of customer satisfaction in the organizations. It
analysis and describes the theories and its applicability in British Airways. This report helps to
determine the theories and discusses its application on the chosen organizations. This report will
focus on the improvement of decision making in British Airways. Lastly, it sums up the main
points and concludes the report. Based on the conclusions, it provides recommendations to
improve the decision making in the organizations.
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4MANAGER DECISION MAKING AND INSIGHTS
2.0 Theory and description
Customer based Journey
Source: (Van Bommel, Edelman and Ungerman 2014)
According to Chang and Kannan, 7 Customer Inc (2015), customer journey is considered
as the collection of experiences which the consumers have during various touch points with a
particular product or brand. The overall customer experience is considered during the process of
evaluating the customer journey. It is believed to be a collection of experiences that the
consumers have during their interactions or communications with the brand or particular product
(Norton and Pine 2013). The customer journey framework involves the complete interaction
roadmap starting from a single brand to finalizing the purchase while getting issues (if any)
resolved. Customer prefers gathering knowledge about the particular brand or product before
making a purchase. The customer Journey map is used by the business organizations to track the
areas of improvement and make efforts to make the overall customer journey memorable (Wolny
and Charoensuksai 2014).
Stages of Customer Journey stages
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5MANAGER DECISION MAKING AND INSIGHTS
Awareness: At this stage, the business organization takes steps to spread awareness about the
product and service offerings to the target audience (Norton and Pine 2013). For example: The
mobile phone companies spread knowledge about the product availability to the customers.
Consideration: After spreading awareness about the product availability in the market, the
business organizations will promote their products to the target market. The marketers
communicate the benefits of the products or services to the customers and convince the
consumers to purchase the products and services (Norton and Pine 2013).
Conversation: The marketers have certain call to actions to enable the visitors to make a
purchase (Wolny and Charoensuksai 2014). At this stage the business organization take steps to
turn the leads to potential customers of the organizations.
Retention: At this stage, the business organization takes measures and actions to retain the
customers in the organizations. The company takes steps to retain the loyal customers and make
efforts to acquire new customers.
Advocacy: The organizations make efforts to encourage the customers to spread a word of mouth
and share their views and experience of the brand or the product.
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6MANAGER DECISION MAKING AND INSIGHTS
Buying process of the consumers
Description: Consumer buying process
Source: (Chang and Kannan, 7 Customer Inc 2015)
It is considered as a traditional model of decision making process of the consumers.
According to this model of decision making, there are five stages in the buying process of the
consumers. The five stages include Need recognition, information search, and evaluation of
alternatives, final purchase, and post purchase behavior (Kumar and Raju, 2013). The business
organization must consider the steps in which consumers make a purchase decision and close the
sales. According to Rani (2014), the marketer needs to understand the factors which influence
the consumers to make a purchasing decision. The marketer must analyze the purchasing
behavior and determine the most appropriate time which the product requires promotion. It is
also essential to determine the target demographics or the target customers develop their needs or
the factors which trigger their needs to purchase the product (Jha 2013). Considering these
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7MANAGER DECISION MAKING AND INSIGHTS
factors the marketer can create a circumstance to further influence the customer towards making
a purchase. According to Rani (2014), on the third stage of consumer buying process, they search
for information regarding the product and its availability. They search from the alternatives and
determine the best product that is available. At this stage, the marketer needs to promote their
products to the consumers and make them confident about the product. The consumers consider
their past experiences in making a purchase decision (Kumar and Raju, 2013). Finally the
consumers make a purchase and in the last stage they determine their level of satisfaction derived
from purchasing the product. In the post purchase stage, the consumers evaluate and review the
product.
PSS model
The term PSS stands for product service system, whereby a description is provided of the
blend of services and products that are offered by a particular company or a business enterprise.
As such, this is a term which can be used to describe the integrated services that are offered by
business organizations for its customers (Camilleri 2018). The PSS model is something that is
made use of by business organizations and it provides its target audience with a perfect blend of
services and products which they can use to have a most satisfactory travel experience with this
airline company (Chun and Park 2019).
Value flow analysis
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8MANAGER DECISION MAKING AND INSIGHTS
Source: (Laner, Rechberger and Astrup 2014)
The value chain analytical framework of a business is comprised of four important
components namely inbound logistics, outbound logistics, marketing and sales and service
operation.
3.0 Methodology
In order to meet the purpose and the objectives of the report, secondary research, and
theories has been taken into consideration for data collection and analysis. Various theories and
frameworks have been used to analyze the decision making process of various business
organizations. Previous research and theories has been taken into consideration for collecting
reliable data and information. Various theories, literature, and articles are reviewed to collect
information about decision making and improving customer satisfaction. This research method is
highly convenient as it required less time and expenses. The information is collection from
quantitative analysis along with descriptive statistics to acquire relevant information.
4.0 Analysis and discussion
Customer based Journey
As mentioned by Lemon and Verhoef (2016), the British Airways need to take decisions
to spread awareness about the product and service availability in the market considers the
customer based journey. The company needs to take steps and guidance to improve the
satisfaction level of the customers. The company requires undertaking marketing decisions to
promote the availability or the additional features or benefits of the service offerings to the target
audience so as to positively influence them to make a purchase (Edelman and Singer 2015). The
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9MANAGER DECISION MAKING AND INSIGHTS
marketing department of the business organizations must undertake steps and decisions to
convert the leads into potential customers. According to Norton and Pine (2013), the British
Airways must also take decisions and appropriate actions to retain the loyal customers and
encourage them to bring forth their views and opinions regarding their experience.
Consumer buying process in decision making
According to Kumar and Raju, (2013), in order to improve the decision making process
in the British Airways, it needs to consider the buying process of the consumers. The consumers
buying process can help the business organization to make decisions geared towards improving
their satisfaction level. The consumers recognize their need to purchase the product and service.
During the next stage, the consumers search for information regarding the product availability.
At this stage, British Airways need to take decisions to increase their visibility in the market
(Prasad and Jha 2014). It must take decisions to promote and advertise their service offerings.
Detailed information is needed to be provided to influence the consumers towards purchasing
their products. According to Jha (2013), the second and third stages of consumer buying process
are vital for decision making in the organization. The company needs to ensure that the
consumers have detailed information regarding the service availability by British Airways. The
consumer behavior in the market can be predicted with the help of Artificial intelligence and Big
data (Rani 2014). British Airways require effective marketing strategies to reach out the
consumers and find appropriate ways to serve the consumers. By merging Big data and Artificial
intelligence, consumer behavior can be forecasted. According to Kumar and Raju, (2013),
decision making can be further enhanced with the implementation of big data and Artificial
intelligence. It simplifies the process of decision making in the organizations. Social media can
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also be used to monitor the needs and requirements of the customers. The purchasing process and
the post purchase stage are also critical for British Airways (Jha 2013). The consumers must be
satisfied with the service availed by the consumers. In the post Purchase stage, the company
must monitor their satisfaction level to further improve their service offerings.
PSS Analysis of British Airways
The product service integration system is something that an airline like British Airways
is putting into effect by introducing the pay for food option for customers who are seen to avail
the short haul and economy flights that are offered by the airlines. Customers who wish to
procure a meal or two when on board the aircraft will be in a position to pay for their meals and
pay a reduced air ticket that is not inclusive of the price of meals. At the same time business class
travelers on British Airways will be able to avail first class facilities via a package that is known
as Club Europe which puts them in a position to avail complimentary snacks when on board the
aircraft (Efthymiou et al. 2019). The meal items on offer include vegetarian and non-vegetarian
options with spicy chicken now being on the menu. In addition to healthy food and snack, tea
biscuits and coffee are also offered as part of the Club Europe privilege and do not have to be
paid for. The economy class passengers who avail the pay for food option will however be in a
position to utilize or avail the same snacks or food but must pay a price for it instead (Halpern
2016).
In addition to providing all of the products that have been mentioned above, the British
Airways Airline is one that continues to render first class aircraft services with each and every
one of the vehicles or carriers used by the airline company being of a top standard. The vehicles
or aircrafts are maintained on a regular basis and are checked for defects and wear and tear
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making it absolutely safe for customers to fly with British Airways whether it is for a short haul
travel or a long trip to an overseas destination. Both in flight and aircraft services on offer are of
the highest standard, giving customers full value for the money that they spend on such services.
British Airways is an airline company that is not one to compromise on the quality of its
products and services and this is something that is quite evident from the food that it serves and
the fact that it runs in operations in such a timely manner. The aircrafts which are used by the
company are of a very high standard and the flights are known to run on time as well, giving
customers little reason to complain about the products and services on offer and constituting a
perfect example of a business that makes use of a PSS system for business (Hanlon 2017).
Value Chain Analysis of British Airways
The inbound logistics associated with an airline company like British Airways is
something that is quite complex. This is because British Airways is an airline company that is
seen to offer a wide range of products starting from expansive fleets of aircraft to high quality
catering services on board, to goody bags for kids with which they can abuse themselves on
flight. As such, British Airways leaves no stone unturned to keep its customers happy and
content and does everything in its power to ensure that services and products are made available
to customers in a timely manner (Karaagolu and Cicek 2019).
The outbound logistics of British Airways is as complex as the inbound logistics process
with the airline company offering services is as many as 80 different countries of the world.
British Airways aircrafts fly to ports in 80 countries across the Global North and the Global
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