Marketing and Management: E-commerce Strategies and Customer Loyalty

This report examines the role of e-commerce in enhancing customer relations and loyalty within the airline industry, using articles and case studies of Kuwait Airways and Jazeera Airways as examples. The assignment summarizes the findings of Al-Fadly (2016), highlighting the significance of website design and online services in attracting and retaining customers. It also evaluates two supporting articles by Effendi and Alfina (2014) and Gasson (2013), which discuss similar strategies employed by other airlines. The report further analyzes the Omani market, emphasizing the importance of branding and technological advancements in maintaining a competitive edge. The conclusion underscores the key role of e-commerce in the success of airlines and provides recommendations for further improvement in customer relations, including the need for staff training and technological infrastructure upgrades.

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Marketing and Management
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1. Introduction
Customer relation and customer behaviour has a significant role to play in the
enhancement of business in any sector. With the advent of technology, online marketing needs to
be incorporated, in order to gain the confidence and loyalty of the online customers. This
assignment highlights the article by Al-Fadly (2016) that sheds light upon the increase of market
share and customer loyalty, by using the Internet technology as well as e-commerce models. The
findings of the article are summarized, along with the evaluation of two other relevant articles,
focusing on the same sector of study. The Omani market is evaluated and the influence of e-
commerce in customer retention and achieving customer loyalty has been mentioned. Conclusion
along with few recommendations has been added for further enhancement of the customer
relations. The significance of the customer relation and customer behavior has been evaluated in
this assignment.
2. Summary of the article
The article by Al-Fadly (2016), aims to offer perspectives in the execution of e-business
strategies, focusing on customer satisfaction and achievement of customer loyalty with the
incorporation of e-commerce. The article focuses on the case study of Kuwait Airways and
Jazeera Airways (Al-Fadly 2016). This article highlights that a good website and effective e-
commerce is able to enhance the customer base of the Airlines companies. The sustainability of
both these airlines is evaluating, thus highlighting the significance of the use of e-commerce in
order to retain the loyal customers.
Kuwait Airways is the national airlines of Kuwait, which is heading towards
privatization. With the increase in the competition from the local economic Airlines, the need for
the use of e-commerce has increased, in order to retain the loyal customers, along with refraining

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them to chose the other Airlines (Al-Fadly 2016). In order to ensure that Kuwait Airlines remains
in the strong competitive advantages, the Airlines have launched its own web portal. This
initiative was an important one, helping the Airlines distinguish itself from the other websites.
The website offered a wide range of services such as shipment tracking, baggage tracking, and
flight schedules, providing promotions, follow-up on the holiday offers as well as access to the
Oasis Club information (Al-Fadly 2016). These wide ranges of services ensure the company
being distinguished from the other competitor airlines. One of the major goals of that is set by
the Kuwait Airlines is to re-establish a network of attracting huge number of customers, with the
facilities that are provided by the newly launched website of the Kuwait Airlines. The Airlines
ensures the attraction of passengers from more than 46 countries, all over the world (Al-Fadly
2016). The information about the passengers, the rates of the air tickets, the market fluctuations,
and delay in the flights are obtained from the website. Moreover, Kuwait Airways have
outsourced the customer care to the call centers in order to handle interaction with the customers
successfully (Al-Fadly 2016). Moreover, the facilities such as online ticket purchasing, online
reservation system facilitates the passengers to book their tickets as per their convenience.
Effective e-commerce and online marketing have a key role to play in enhancing the
customer base, along with attracting more customers. The facilities of optimised timings of
booking the tickets and getting timely updates of any changes in the schedule of the flights, that
are provided by website ensure customer loyalty (Al-Fadly 2016). With the wide use of the
Internet technology, the e-commerce sites have provided an excellent opportunity for the
Airlines companies to remain strong in the competitive advantages. The customer relationship is
also enhanced by the incorporation of the e-commerce sites. The customer service executives are

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able to track the concerns of the customers easily, thus resulting in prompt responses to the
queries of the customers and frequent flyers (Al-Fadly 2016).
Along with Kuwait Airways, Jazeera Airways also experienced enhanced sale and
customers with the incorporation of the online portal. Jazeera Airways is the only privately
owned airlines in the Middle East. The low fare of the fight was designed to attract tourists and
customers, along with the provision of high quality in-flight services (Al-Fadly 2016). The
online system of Jazeera Airways enhanced the functionalities and customer accessibilities. The
primary aim of the Cleartrip website of Jazeera Airways is to ensure the easy booking of the
flights along with providing a single point of contact with the customers (Al-Fadly 2016). Hence,
the customer service issues that the Airlines faced earlier were completely mitigated with the
incorporation of e-commerce and the online reservation portals.
The article mainly focused on the secondary type of research methods that focuses on
analyzing the case studies of Kuwati and Jazeera Airways along with that of the online travel
market. The secondary data has been collected as a part of the research methodology that has
helped to understand the market value of the e-business models. The methods have been applied
to the major airline industry that will help in understanding the level of customer satisfaction.
The aspects of the customer relationship management are also analyzed with the help of the
research methods. This is believed to be one of the prime aspects of the e-business model that is
also one of the prime deciding factors of the level of customer satisfaction.
The main findings of the study are the factors within the airline industry that is affecting
the business and competitive environment. The findings suggest about the factors like the
features of the company’s website that is crucial in deciding upon the level of customer

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satisfaction. Development in the information economy is a crucial factor that has helped on to
decide the factors of the business strategy. This is also one of the major concerns about the
overall process of business development. One of the major concerns is also due to the lack of
awareness among the business owners about the appropriate business model that can be applied
to the web designs.
There is also one of the major concerns about the risk that exists due to competition
between the suppliers. From the findings, it is clear that this can have major impact on the
quality of service that is provided to the customers. There is also a growing concern about the
uncertainty about the use of the technology that is related to the software used in the KAC
website. The workers within the organization also lack the ability to work with the technology
that is needed to operate the e-commerce forms of business. All these reasons that are the major
findings of the research prevent the KAC to improve upon their level of customer service.
From the findings that have highlighted the technical issues related to that lack of skills among
the workers. Hence, it is recommended that the workers should be given proper training in the
skills related to software learning ability. From the findings of the study, it is clear that well
developed website can be one of the major advantages of all the process related to the business.
Hence, it is highly recommended by the airline industry to focus on the technological
infrastructure and thereby able to develop upon the e-commerce business sections.
3. Evaluation of the article using other articles
The article by Effendi and Alfina (2014) is in support with the article by Al-Fadly (2016).
This study highlights the case study of Air Asia and Lion Air websites. The Air Asia is dedicated

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to providing the customers with low-cost travel to the customers and frequent flyers (Laudon and
Traver 2013). This airline operates mainly in Asia, providing the customers with good in-house
facilities (Effendi and Alfina 2014). The website of Air Asia and Lion Air websites have resulted
in the increase in the sale of the air tickets, along with helping the customers to get in touch with
the Airlines officials (Ater and Orlov 2015). The e-commerce sites promote the airlines brands
and help to attract more customers (Effendi and Alfina 2014). The business of the airline's
companies increases, thus ensuring the success of the brands. Air Asia is one of the cheapest
flying options that is provided to the customers especially for the business Travellers and the
frequent flyers. Even though the price of the tickets are low Expectations of the customers are
same as that of the high priced Airlines (Effendi and Alfina 2014). Hence it is important that Air
Asia along with helping the Travellers to travel at a low price attract customers and ensure
various services that are expected from an Airline (Effendi and Alfina 2014). In order to ensure
the same, a user friendly web portal is important. The Travellers are able to check out the prices
of the tickets, along with opting for meal and other services online. This is helpful in promoting
Air Asia and helping it to compete with the popular Airlines such as Thai Airways Singapore
Airlines and other private airlines.
The article by Gasson (2013) highlights the various challenges that are faced by the
Airlines industry. The major challenges include the lack of customer loyalty, customer
dissatisfaction, and deflection of the customers to the competitor Airlines (Hanke 2016). These
issues are mitigated by the incorporation of effective websites and e-commerce sites (Gasson
2013). The customer interactions are clarified, along with the effective management of the online
customers. The customers are able to purchase the tickets, track their luggage, check their PNR
status and remain informed of the changes in schedule or discounts and promotions (Gasson

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2013). With the enhancement in the lifestyle of the people and lack of time, the need for online
purchase of the tickets and e-commerce services has become essential (Gasson 2013). These
services are time saving, along with ensuring remote tracking from geographically remote
locations. The passengers are able to block the choice of the seats through web check-in and also
chose the choice of food that they refer in-flight (Gasson 2013). Thus, the entire processes of
customer services are enhanced, thus ensuring customer satisfaction.
Hence, the chosen articles conclude that e-commerce has a key role to play in ensuring
the success of the Airlines industry (Heizer 2016). Moreover, successful mitigation of the issues
of customer services is also seen in the use of the e-commerce sites.
4. Evaluation of the Omani market
The Omani market is a fast-growing marketplace with a large consumer base and high
competition. The large consumer base refers to a variety of demands among the customers in
order to fulfill the demands of each customer. Moreover, with high competition among the
various Airlines operating in Oman, each of them tries to remain at the top of the competitive
ladder (Akamavi et al. 2015). This leads to high competition among the various airlines ensuring
the growth of each of them. The consumer behavior has to be influenced such that the customers
could be retained successfully (Belobaba et al. 2015). Branding has a major role to play in
business. The consumers are often brand conscious and tend to retain particular airlines (Chen et
al. 2016). Thus, it is important that the Airlines companies are well equipped with various
facilities to be provided to the customers. The in-flight luxury, along with catering to the needs
of the customers has a major role to play in ensuring customer satisfaction and customer
retention (Belobaba et al. 2015). The Omani market is highly competitive (Hapsari et al. 2017).
Hence, it is important that the Airlines companies work diligently and incorporate the use of high

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technology in order to remain in competitive advantages in the highly competitive market. The
Omani market provides a good opportunity for the development of business and ensures the
success of business of various sectors. The Omani market provides strong competition among the
various airline companies, thus ensuring business growth. Hence, it is important that the various
Airlines companies operating in Oman upgrade the technology they use and equip themselves
with highly efficient online reservation portals and websites, thus promoting e-commerce.
5. Conclusion and recommendations
Thus, it could be concluded that the incorporation of e-commerce in the airline's industry
is essential and important. The above articles highlight the importance of the use of e-commerce
in the Airlines industry. With the advent of the Internet, it has become essential to incorporate e-
commerce in the Airlines industry. The websites of the Airlines are important to ensure customer
satisfaction and retain the customers. The e-commerce sites ensure that the customers are able to
book their tickets, track the luggage, and check any changes in the schedule of the flight, with a
click. Moreover, the customers stay updated with the use of the e-commerce in the airline's
industry. The use of e-commerce in the airline's industry has enhanced the sale of the tickets
along with attracting customers. With the launch of the web portal by Kuwait Airways, the
airlines have experienced significant increase in the number of customers resulting from the ease
of use online web portal. Facilities provided by the website include web checking, luggage
tracking using from a variety of meal and other in-flight services.
However, some recommendations need to be made in order to ensure that the entire
airline industry is facilitated by the use of e-commerce. The frequent flyers and customers
should be made aware of the advantages that the web portals of the airline's company provide.
This will encourage them to use the services more often does promote website. This is also a

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time saving process for the customers and the frequent flyers saving the effort of calling the
customer care service of the airline industry. In order to promote the use of e-commerce, the
airline companies could provide discount on the flight tickets and some complementary services
for the passengers to book the tickets online and away the online services. This will be a
promotion as well as an encouragement for the customers to use the e-commerce sites of the
airline's companies. Moreover, discount could be offered to the frequent flyer does ensure that
the fly with the luxury Airlines such as Kuwait Airways rather than choosing a cheaper option.
Hence it could be concluded that it is important to ensure successful e-commerce in order to
remain in competitive advantage in the highly competitive market of airlines industry.
Moreover, with the growth and change in the lifestyle of the people, more Travellers avail the
airline services every day. With the switch over to the e-commerce, the prices of the flight
tickets are likely to decrease along with ensuring the same luxury service that the airlines is used
to provide to the customers. Thus, customer service is enhanced customer loyalty is achieved
and customer retention is done successfully.

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References
Akamavi, R.K., Mohamed, E., Pellmann, K. and Xu, Y., 2015. Key determinants of passenger
loyalty in the low-cost airline business. Tourism management, 46, pp.528-545.
Al-Fadly, A., 2016. Development and Implementation of E-Business Strategies Managed and
Applied by Kuwait Airways. International Journal of Economics and Finance, 8(9), p.41.
Ater, I. and Orlov, E., 2015. The effect of the Internet on performance and quality: Evidence
from the airline industry. Review of Economics and Statistics, 97(1), pp.180-194.
Belobaba, P., Odoni, A. and Barnhart, C. eds., 2015. The global airline industry. John Wiley &
Sons.
Chen, F.Y., Tu, S.L. and Wang, H.E., 2016. Green Market Segmentation: A Case of Airline
Customers in Taiwan. Journal of Sustainable Development, 9(1), p.99.
Effendi, F.S. and Alfina, I., 2014. Quality evaluation of airline's e-commerce website, a case
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Gasson, S., 2013. The impact of e-commerce technology on the air travel industry. Annals Of
Cases On Information Technology Applications And Management In Organizations, 5, pp.234-
249.
Hanke, M., 2016. Airline e-Commerce: Log on. Take off. Routledge.
Hapsari, R., Clemes, M.D., and Dean, D., 2017. The impact of service quality, customer
engagement and selected marketing constructs on airline passenger loyalty. International
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Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Laudon, K.C. and Traver, C.G., 2013. E-commerce. Pearson.

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