Customer Service Management for Tourism and Hospitality: BA Analysis

This report delves into customer service management within the context of British Airways (BA), a major player in the tourism and hospitality sector. The report begins by defining customer service management and its importance for BA, emphasizing the need to understand consumer behavior. Task 1 focuses on identifying and exploring the significant differences between Chinese and British consumer behavior, utilizing Hofstede's Model of cultural dimensions to highlight cultural nuances that impact purchasing decisions and service expectations. The report then examines how factors like quality and environment influence consumer behavior. Finally, the report addresses the marketing mix of British Airways to enhance service encounters, providing insights into strategies for improving customer satisfaction and overall performance within a global context. The report provides a comprehensive analysis of consumer behavior and marketing strategies.

Customer Service
Management for
Tourism and
Hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Identify and explore the significant difference between Chinese and British consumer
behaviour................................................................................................................................1
TASK 2............................................................................................................................................7
Marketing mix of British airways for enhancing service encounter......................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Customer service management refers to the set of practices, technologies and strategies
that a company uses for managing and analysing customer interaction. This information help in
improving the performance of company and modifying it as per the expectation of its target
market that provide better satisfaction (Amin and et. al., 2013). British airways is one of the
largest airlines which is headquartered in London, United Kingdom. It perform its operation in
more than 400 destination worldwide. This report describes about the significance difference
between the Chinese and British consumer behaviour using a Hofstede’s Model of cultural
dimensions. Apart from this it also describes about marketing mix of British Airways in order to
enhance service encounters.
TASK 1
Identify and explore the significant difference between Chinese and British consumer behaviour
Consumer behaviour refers to the study of how a particular individual, customer, group
and organisation purchase, use or disposes a product in order to satisfy their need. It includes
action taken by a customers within marketplace and underlying reason behind those reaction.
Consumer behaviour plays an essential role within a travel and tourism industry as it affect the
manner in which services provided by a company. Therefore in order to achieving competitive
advantage at marketplace, it is very essential for British Airways(BA) to have a deep
understanding about the factors that may limit its customer services. These factors are explained
below:
Quality:- Being a service provider it is very essential for British airways to satisfy its
customer by providing them with quality services. It must analyse the need of customers in order
to align their services as per requirement and expectation of them. Further British Airways must
provide training to its employees on regular bases. This help in improving the quality of their
services (Boella. and Goss-Turner, 2013). As it help in keeping customer satisfied which in turn
will influence their choice over another tourism companies.
Environment:- Another major factor that affect the consumer behaviour is environment
or surrounding factor that are present at the place of service delivery. British Airways must try to
maintain its environment effectively that attract and influence customers to visit for availing
services. Surroundings must be clean, well managed and peaceful so that customer can have
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better experience. Apart from this employees are also one of the factor that affect the
environment, hence BA must ensure that employees must be always remain active at the time
when customers need them.
These are the factors that may influence the behaviour of customer about the choice of a
particular company for services. But in order to have positive impact over the customer choice an
d behaviour, British Airways must analyse the customer behaviour (FitzPatrick and et. al., 2013).
This help in developing an understanding of improvement that BA is required to made in order to
provide better services. Consumer behaviour can be better examined by taking into consideration
the culture to which they belong as it influence the action taken by an individual. Culture refers
to the norm, behaviour, value, experience, religion or meanings that are shared by a group of
people or society. For analysing the consumer behaviour British Airways can use a model named
as “Hofstede’s Model of cultural dimensions”.
This model is developed by Geert Hofstede, which describes about the effects of society's
culture over the value of its members and their behaviour. By using this framework, British
airways will be able to determine the difference between Chinese and British consumer
behaviour. This analysis will further support in identifying the factors that are required to be
consider in order to improve its service quality that will satisfy the need of Asian customers.
Hofstede’s Model of cultural dimension:
This framework help in developing an understanding of cultural differences by
undertaking six dimensions of culture which are as explained below:
Cultural
dimensions
Description Consumer behaviour
British Chinese
Power Distance This dimension describes
about the fact that all the
individual lives in a society
are not equal (Hoque, 2013).
Power distance define as a
degree to which people with
lower power accept or expect
that power is unequally
British people believes
more in minimizing
the inequality among
the society. They give
preference to the fact
that people must be
treated in equal way.
British consumers
Society of China
stands high over PD as
they think inequality
among people are
acceptable within
society. Hence, people
get influenced by
formal authority and
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distributed. behaviour are more
independent oriented,
they take decision
related to purchasing
of product or services
on their own despite of
being influenced by
ant rules or
regulations.
sanctions. PD level
affect the behaviour of
consume as it includes
certain rules and
regulations that are
fixed by society and
which are followed by
the people belongs to
that society. This
influence the
purchasing behaviour
of a people related to
services provided by
British Airways lives
in China.
Individualism This dimension describes
about the extent of
independence a society
provide to its members. It can
be define as the degree to
which member integrate in its
social group or society
(Kandampully, Zhang and
Bilgihan, 2015).
British are highly
private and
individualist persons,
they think more about
themselves and work
for their own benefits.
Behaviour of British
consumers are more
influenced by their
own choice as they
give preference to
their need despite of
having views from
others.
In China people are
highly collectivist
culture where people
perform an action as
per the interest of
others. Consumer
behaviour of Chinese
in relation with
services provided by
British Airways are
more influenced by the
views of reference
group, family, friends
etc.
Masculinity It refers to the degree to British is a Masculine China is also
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which the people of society
seeking for heroism, material
reward, assertiveness and
achievement in order to get
success or cooperation, social
care and quality of life. A
high score indicates that
society involve more
competition, achievement or
success (Li, Ye and Law,
2013). Low score dimension
means dominant value in
society which cares for other
and maintain a quality of life.
society as their culture
is more modesty and
understatement.
Consumer behaviour is
being affected by this
cultural factor as
people belongs to this
category are more
concern about the
services that they
purchase and conduct
a deep analyses before
taking any action.
masculine society
where success is more
important then family
or leisure. This largely
affect the consumer
behaviour and their
decision about
purchasing of a
particular product or
services as they give
more preference to
wealth. Therefore,
consumers of China
compare the benefits
of a product or
services before taking
purchasing decision.
Uncertainty
avoidance
It can be defined as extent to
which members of culture
feel threatened from unknown
situation and something away
from the status quo. People
with scores uncertainty
avoidance try to make their
life predictable and
controllable
British society stand
low over uncertainty
avoidance as they are
much comfortable to
ambiguous situation
and in working term
they are not detail
oriented. British
consumer are
adoptable in nature as
they are more brand
loyal and always ready
to purchase product or
service that are offered
People in China are
always ready to handle
difficult situation and
also ready to take risk.
These people are
adoptable to changes.
Chinese consumers put
more emphases over
positive factors of
purchasing a particular
product or services
despite of thinking
about any negative
consequences. These
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by their favourite
brand despite of any
risk involve.
people are always
ready to try new and
are not search too
much.
Long term
orientation
This dimensions describes
that every society must
maintain some link with its
past in order to deal with the
present and future challenges.
It refers to the society's
preference regarding either
short term or long term
fulfilment of social
obligations (Madera, 2013).
British people are
belongs to society
where peoples are
short term oriented.
They perform action
for present by
referring past despite
of concerning about
future consequences.
This affect consumer
behaviour to a large
context as people
belongs to this culture
dimensions are easy at
purchasing product or
services if they like it.
China has pragmatic
culture where people
believes that truth is
depend on situation,
time and context. They
are willing to accept
traditions easily to
changed condition.
Pragmatic culture
affect the consumer
behaviour of people as
these individual are
more concern about
future. Hence they
spend as per their need
or wishes that they
want to fulfil in near
future as they always
focuses on saving
income for future use.
Indulgence This cultural dimension
describes about the extent to
which people within the
society try to control their
impulses or desire (Marković
and Raspor Janković, 2013).
British people stands
high over indulgence
as they give
importance to leisure
time and put emphases
on enjoying their life.
Society in China have
restrained society
where people doesn't
put more emphases
over leisure time and
focuses on fulfilling
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British consumer give
more importance to
leisure , friend and
have a control over
their own life hence
take decision by their
own. They have the
feeling of satisfaction
and are not much
concern about details
of product or services.
their desire. Chinese
people are more
concern about the
social norms that make
them powerless in
taking their decision
which influence their
purchasing behaviour.
They always consider
social norms and rules
before taking up any
decision related to
selection of product or
services and always
remain unhappy or dis
satisfied in their life.
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(Source: COUNTRY COMPARISON, 2018)
Above given image describes about the difference between the behaviour of Chinese and
British consumer as per their cultural differences. This information help British Airways in
determining the factors that are required to improve in order to gain value among Asian
customers (Mohammed and Rashid, 2012). As consumers of China stand high at Masculinity,
Collectivism and Power distance, therefore it is very essential for BA to have a deep research
over the cultural or social norms that are followed by the people of China. As it influence the
consumer behaviour to a large extent and this information will help in adjusting services as per
the demand or behaviour share by the customer of China. This help British airways in
maximizing the market share and competitive advantage in marketplace.
Glocalization:- This term is generally used for the product or services that are developed
and distributed globally after being accepted by all the local market for which it is tailored to
accommodate users of that market. In context of British Airways, they are required to make
adaptation in order to provide services to people of China (Mok, Sparks and Kadampully, 2013).
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Illustration 1: COUNTRY COMPARISON

As they share different cultural norms or values so in order to attract them toward the services
provided by them, British Airways is required to do adaptation in term of law, consumer
preference, custom, culture etc.
Ethnocentric versus poly-centric staffing and staff training:-
Ethnocentric staffing refers to the process of hiring people which are belongs to same
nationality as the parent company and on the other hand poly-centric staffing refers to the hiring
of management employees from host country. In order to capture market share in China, British
Airways must use Poly-centric approach for staffing its employees (Ryu, Lee and Gon Kim,
2012). As by hiring people from China, company will be able to understand the cultural norms
effectively that support in achieving higher customer satisfaction.
TASK 2
Marketing mix of British airways for enhancing service encounter
Marketing mix is a strategic tool that includes set of tactics or actions which can be used
by a company to formulate policies for promoting its brand or product in marketplace. Before
providing services to its consumer base of China, it is very essential for British airways to
analyse the market and develop strategies for achieving stability in marketplace. So marketing
mix help in formulating strategies that best suited as per the requirement of China customers and
help in creating value (British Airways 7Ps of Marketing, 2018). Following are the factors
involve in marketing mix model:
 Product:- British airways is a flagship airline carrier company which is based in UK and
offer high quality of services to its customers. It offer transportation and in-flight related
services to its customers. It includes entertainment screens, cabins, extra space, main
meal courses etc. Further it divide its services into various categories from normal to
luxury which includes economy, business, first class and premium economy. In order to
cater the need the China customer, British Airways must try bring changes to its current
services as the culture or norm followed by the Chinese people are totally different from
British people. Therefore, company is required to do adaptation in their services offered
by altering them as per the culture, custom and values shared by people of that region.
 Price:- British Airways work over an aim that everybody will be able to afford the prices
offered by company on its services. This is the base for company to decide its pricing
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policies as they focuses on providing the reasonable value to its customer. Price of
services are varied according to the destination and level of services that are chosen by
passengers (Tajeddini and Trueman, 2012). Hence, British Airways follows the
differential pricing strategy. But in order to perform their operations in China it is very
essential for company to use competitive pricing strategy. As people of China belongs to
a culture where they are long term oriented and give more preference to wealth therefore
they compare then make purchasing decision. So by offering services at low price as
compare to competitor, British Airways will be able to attract customers toward their
offers.
 Place:- British Airways severs in around 400 destination with a fleet of more then 273
aircraft worldwide and has its great presence in London, Gatwick and Heathrow cities
airports. Now company want to expand its business in various areas of Asia by providing
services to people belongs to China (Teixeira and et. al., 2012). It uses online channel to
provide its services using their own website to sell out tickets. Every detail related to
arrival departure timing to the flight features and other services can be assess by the
customers through their website.
 Promotion:- British Airways belong to travel and tourism sector which is one of the
higher competitive sector. Therefore, in order to achieve sustainability in marketplace it
is very essential for a company to regularly promote its brand in order to keep them
recognised among its customers. British airways generally uses TV advertisement,
newspaper and billboards for promoting its brand. Now, company want to expand its
operations by providing services to customers belongs to China. So in order to enter in
new market company is required to perform certain promotional actions for its branding
and developing a positive image among the eye of customers. British Airways can use
social media sites, advertisement in magazine or TV in order to promote its brand. Apart
from this they can also organise culture event for people of China in order to promote a
positive image among them.
 People:- This factor involve strategies related to the management of employees by
providing proper training to them in order to deliver satisfactory services to its customer.
British airways put more emphases toward recruiting an effective team with excellence at
inter-personnel skills. They also provide training to its staff on regular bases in order to
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enhance their services and aligning them as per the requirement of customers. In order to
perform its operations effectively in China it is very essential for British airways to
recruit employees using poly-centric approach (Testa and Sipe, 2012). In which staff
members are appointed from the host country i.e. from China which support company in
developing an understanding about the culture and behaviours that are share by the
people belongs to host country. Apart from this it also support in formulating better
strategy as per the nature and preference of customers belongs to China that support in
exerting better services to them.
 Process:- The process followed by British Airways is starts from booking of ticket and
move through various steps such as arriving at airport, getting at boarding pass, luggage
checking, entering in flight, availing and experiencing the services offered in-flight and
getting the luggage back (Zaibaf, Taherikia and Fakharian, 2013).. British Airways must
try to ensure that services provided by company must be according to the social norm of
people lives in China and it must not harm their values which further support in
developing a positive image among new customers.
 Physical evidence:- It refers to the intangible aspects of business that help in providing a
better experience to customers which in turn will also influence the perception of
passenger toward the brand. It includes features like the way lounges are designed,
interior of flight, behaviour of attendant on flight, sophistication in the symbol of British
airways etc. Company must try to maintain these features effectively in order to make
their passenger of China satisfied with the services offered by British Airways.
Benefits and opportunities that derived from exceeding customer expectations:
Creates customer loyalty: Exceeding the expectations of customers on continuous basis
will provide a benefit to British Airways in gaining high consumer loyalty. If firm provides
services exceeded from the set level of expectations, people do not want take stress of looking
for other firm. It provides an opportunity to company of attracting and retaining large number of
customers.
Gaining high profits: Today, customers want to get high quality services for which they
are willing to pay any amount of money. If British Airways provide more better services than the
set expectations of customers, then it assists in generating high sales and profit ratios.
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