Investigating Customer Satisfaction and Virgin Atlantic Performance

This research project investigates the impact of customer satisfaction on the performance of Virgin Atlantic. The study begins with an introduction, outlining the research aim, objectives, and questions, along with the rationale and significance of the study. A comprehensive literature review explores the relationship between customer satisfaction and airline performance, examining the benefits and effects of customer satisfaction on Virgin Atlantic. The research methodology section details the quantitative research setting, ethical considerations, participant selection, and data collection methods, including the use of questionnaires. The results section presents the findings of the data analysis, followed by a discussion of the primary and secondary data. The project concludes with a reflection on the research process, discussing challenges faced and the importance of the study. The project provides valuable insights into customer satisfaction within the airline industry and offers recommendations for improving customer experience and business performance. This study utilizes both primary and secondary data sources to explore the topic thoroughly.

Research Project
("To Investigate the impact of Customer Satisfaction
over Virgin Atlantic Performance”)

ABSTRACT
This report is based on the impact of customer satisfaction over Virgin Atlantic
Performance. This is a main aim of this dissertation and in order to achieve this aim different
number of activities have been followed by researcher. Introduction is a first activity and in order
to performed this activities various sub tasks have been applied which are research aim, research
objectives, rationale of the study and so on. These activities supported the researcher in
completion of research proposal. Review of literature is another part of dissertation as it is
performed by researcher by applying different number of secondary sources such as books,
magazines, articles, journals, publication research and many other relevant sources. Under this
section, authors have to given their view point which supported investigator in collection of in-
depth and detailed information regarding the effective of customer satisfaction over business
performance of Virgin Atlantic. Within a dissertation, research methodology refers to the third
activity which was completed by investigator by using primary and secondary methods of data
collection. Questionnaire have been used for gathering primary information whereas for
collection secondary data books, magazines etc. sources will be applied. Results introduces as a
part of data analysis which have been done by researcher by using an analytical tool. Content
analysis was used as an analytical method and it helped researcher in creation of different themes
on each questions in questionnaire. Discussion have been discussed on the basis of primary and
secondary source of data collection. With the helped of questionnaire, discussion of primary data
have been done. On the other hand, with the used of literature review, discussion of secondary
data have been completed by researcher. Conclusion is a last part of dissertation that is
completed by researcher by achieving research aim and objectives.

Table of Contents
TITLE .............................................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
Overview of the research ...........................................................................................................1
Background of the Virgin Atlantic .............................................................................................1
Problem statement of research ...................................................................................................2
Research aim...............................................................................................................................2
Research objectives ....................................................................................................................2
Research Questions ....................................................................................................................2
Rationale and significance of research .......................................................................................3
Route map of research ................................................................................................................3
LITERATURE REVIEW ...............................................................................................................5
Measure the impact of Customer satisfaction for Virgin Atlantic easy performance.................5
The benefits of customer satisfaction with Virgin Atlantic Air assess.......................................7
The effects of Virgin Atlantic Air on customer satisfaction ......................................................9
RESEARCH METHODOLOGY ..................................................................................................11
Setting:......................................................................................................................................11
Research setting........................................................................................................................11
Justification of selecting Quantitative setting ..........................................................................12
Ethical issues in research..........................................................................................................12
Participants................................................................................................................................12
How many?...............................................................................................................................13
How were they selected?...........................................................................................................13
What were their characteristics?...............................................................................................13
How were refusals/non-returns handled?..................................................................................14
Materials....................................................................................................................................14
Data Collection..........................................................................................................................14
Reason or purpose of using questionnaire................................................................................14
Data Analysis ..........................................................................................................................15
Procedures.................................................................................................................................15

Characteristics of the questioner...............................................................................................15
Validity and reliability of data .................................................................................................16
RESULTS .....................................................................................................................................19
Discussion .....................................................................................................................................30
Reflection ......................................................................................................................................37
REFERENCES .............................................................................................................................38

TITLE
"To Investigate the impact of Customer Satisfaction over Virgin Atlantic Performance”
CHAPTER 1: INTRODUCTION
Overview of the research
Customer satisfaction introduces as a metric which is followed to quantify or measure the
degree to which a customer is more happy with a service, product or experience. In addition,
customer satisfaction introduces as a main part of customer's experience that exposes behaviour
of suppliers on customer's expectation (Hussain, Al Nasser and Hussain, 2015). Along with this,
it is an effective term that frequently applied within marketing. It is a quantify of how services
and products supplied by an organisation to meet or surpass with expectation level of customer.
It is necessarily needed for an enterprise to interact and communicate with their potential and
targeted customers on a daily basis to increase satisfaction among customers. Customer
satisfaction is important for each organisation to accomplish competitive advantages easily.
Increased customer loyalty, higher amount of average purchases, increased word-of-mouth,
lower potential expenditure is required, more stable sales revenue, reduced price sensitivity etc.
are consider major benefits for any organisation who have satisfied customers in their
organisation.
Background of the Virgin Atlantic
Virgin Atlantic is a trading name of Virgin Atlantic International Limited and Virgin
Atlantic Airways Limited. It is a British Airline company that provides air transport services for
travelling passenger as well as freight also. It was founded in 1984 by Richard Branson and
headquartered in Crawley, England, UK. Virgin Atlantic is owned or closely-held by the Virgin
Group (20%), Delta Air Lines (49%) and Air France-KLM (31%) (Virgin Atlantic Airways,
2019). In order to increase satisfaction among customers, Virgin Atlantic have to provide
different benefits to the customers. They provide various facilities to the customers such as
offering the lowest fare available, delivering baggage on time, provide prompt refunds where
due, notifying customers of known delays, cancellations and diversions etc. These are main
facilities provided by Virgin Atlantic to increase satisfaction level among customers. As it will
be beneficial for company in development of its growth and success at marketplace as well as in
the customers mind.
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Problem statement of research
One of the main part of this dissertation is customer problem. Changes in customers
needs and wants is a biggest issue faced by company. As this issue negatively impact over
business performance and success of airline industry. In case of Virgin Atlantic, it is low cost
airline that work for attracting large number of customers easily. Along with this, company faced
a issue which is mainly related with the customers. Company cannot give high quality service to
their customers because of they have constraints resources. Along with this, holidaymakers
travelling with Virgin Atlantic could face dissatisfaction or disappointment this Christmas as
pilots are presently discussing whether they will go on strike. In this, Virgin flyer are thought to
be not happy with their expenses and advantages after claiming they have been slashed by the
airline (Virgin Atlantic strikes: Pilot action could cause travel chaos for holidaymakers this
Christmas, 2019). Along with this, resentment of customers is a biggest issue faced by Virgin
Atlantic's. Resentment introduces to a multilayered and complex emotion that has been
explained as a mixture of fear, anger and disappointment. Therefore unhappy pilots not able to
treat customers more happy. As it create disappointment and dissatisfaction among customers.
Research aim
The main aim of this project is to identify the causes of Virgin Atlantic's resentment of
customers and to seek suggestions and solutions to this problem. For this purpose, researchers
must identify needs that help customer satisfaction.
Research objectives
 Looking for business units or services that cause customer satisfaction?
 Identify problems for customers using business services.
 Identify factors that cause customer dissatisfaction.
 Looking for measures to meet customer needs.
 Take action to meet customer needs
 Provide effective results and suggestions on this problem.
Research Questions
 How to measure the impact of Customer satisfaction for Virgin Atlantic easy
performance?
 How to measure the benefits of customer satisfaction with Virgin Atlantic Air?
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 How to assess the effects of Virgin Atlantic Air on customer satisfaction?
Rationale and significance of research
Main reason behind selecting this topic or research is to identifying importance of
customer satisfaction within airline industry. This research is essential in personal as well as
educational level (Jiang and Zhang, 2016). Under educational level, this study support students
by providing accurate knowledge about the impact of customer satisfaction on performance of
airline industry. In personal manner, this study helps researcher by increasing their research
skills which are literature review, data analysis and data interpretation. These skills or knowledge
helps researcher to do each activities or tasks of investigation in systematic manner.
Route map of research
This introduces as an effective part of research which helps reader by providing accurate
knowledge about each chapters for completing dissertation systematically. There are different
route map for completing activities of dissertation systematically. These will be determined as
below:
Chapter 1: Introduction: This chapter helps reader by providing proper information
about the research aim, objective and questions. This chapter will also support reader by giving
them information regarding the background of company which is chosen for this project.
Chapter 2: Literature review: This is next chapter of dissertation which helps reader by
providing them in-depth and detailed information regarding the importance of customer
satisfaction within airline industry. In this chapter, each questions of dissertation will be
addressed in systematic and detailed way (Koklic, Kukar-Kinney and Vegelj, 2017).
Chapter 3: Research methodology: This is a third chapter of dissertation which will be
essential for reader by providing accurate data about the research methods. In this section,
different methods will be included which are primary and secondary sources of data collection,
qualitative and quantitative research, research philosophy etc. These are consider as a part of
research onion framework which support researcher to collect accurate information regarding the
project.
Chapter 4: Results: This is another part of research which supports researcher to collect
appropriate and proper information regarding the significance of customer satisfaction in airline
industry. In this part, questionnaire will be prepared which support reader to analyse opinion of
respondents about the current investigation.
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Chapter 5: Discussion and conclusion: It is a last section of research project in which
discussion will be made by using questionnaire. It will helps reader to complete dissertation
activities in systematic and effective manner. In conclusion, each questions of research will be
addressed to accomplish research objectives within given time duration. Along with this,
recommendation will be developed to overcoming issues of research (Wongleedee, 2017).
Chapter 6: Reflection: It is another activity which helps reader by providing accurate
information about the journey of researcher. In this, an individual express their opinion while
they conduct research. They also provide importance of this research in their personal manner.
Along with this, they also discussed issues that they will be faced while doing and collecting of
research information.
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LITERATURE REVIEW
Literature review refers to an effective and systematic process which is used for gathering
information about the topic in detailed manner. A review of literature discusses published data in
a specific field of study. Sometimes, information or data in a specific field of study gathered
within a certain period of time. Literature review is an important section of dissertation as it help
researcher in gathering of valid and reliable data about the current study. This part of the
dissertation is more important and essential for researcher because with the help of this, they can
easily addressed each objectives and questions of research in accurate manner. Along with this,
in this part of the dissertation various number of authors have to provide their opinion about the
selected topic or objectives or questions. In addition to this, for collecting information about the
topic, different sources will be opt by researcher. It includes publication research, scholarly
paper, published articles, magazines, books and journals (Drosos and et. al., 2017). These are
more useful sources for gathering information about the topic within literature review. As these
sources assist investigator by providing in-depth and detailed information. There are different
purpose and aim of literature review which support researcher in identification of appropriate
data regarding the current investigation. One of the main purpose of literature review is to gain
an in-depth understanding or knowledge of the present study and debates relevant to a specific
area of study. Conducting a literature review support investigator to build their knowledge in this
field of study.
Measure the impact of Customer satisfaction for Virgin Atlantic easy performance
Customer satisfaction
According to the Fripp, (2019), Customer satisfaction introduces as a perception of
consumers of how well an enterprise has delivered on their communicated value proposition. In
addition to this, customer satisfaction refers as the measure ho how the responses and needs are
collaborated as well as delivered to excel customer expectation. It is an effective part of
customer's experience that mainly expose a behaviour of suppliers on expectation level of
customers. It is an abstract concept and consist of different factors such as product and service
quality, price of the product or service, and atmosphere of the place where the goods and services
are utilised. Along with this, it is a term that used to explain a scenario when an exchange meets
the expectations and requirements of its consumers. Customer satisfaction captures the supply of
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services or products that satisfy expectation level of customers in terms of product and service
quality. As a business term, customer satisfaction can also be applied to measure how the
provision of services or products surpasses customer expectations.
Customer satisfaction in Airline industry
According to the Sefanov, (2018), in Airline Industry, customer satisfaction is more
important and essential part of business success and performance. Customer service and
commitment of company to their passengers has been the diving force behind their brand. In
order to satisfy customer needs and wants different ways would be used by an organisation. It
includes, offering the lowest fare available, delivering baggage on time, notifying customers of
known delays, diversions and cancellations, provide prompt refunds where due, assisting and
enabling customers with special needs, handling flight oversale and so on. All these are main
measures of customers satisfaction which will be beneficial for airline industry by improving its
performance and growth at marketplace as well as in customer's mind.
There are different ways of measuring customer satisfaction such as survey customers,
understand expectations, pinpoint specifics, loyalty measurement, find out where company are
failing, a series of attributes satisfaction measurement etc. These are consider more effective and
essential ways which will be beneficial for an organisation in improvement of its performance.
Therefore, satisfied customer is more essential part for the growth and success of airline industry
(Nedunchezhian and Thirunavukkarasu, 2018). Along with this, there are various importance and
significance of satisfied customers for Virgin Atlantic. Leading indicator of consumer repurchase
intention and loyalty, point of differentiation, reduce customer churn, increase customer lifetime
value, reduce negative word of mouth, cheaper to retain customer than acquire new ones etc. are
consider main benefits of satisfied customers within an organisation.
Customers expectation in Virgin Atlantic
As per the view presented by Hussain, (2019), Virgin Atlantic have to provide their
services to the upper class, premium class and economy class people. Along with this, Virgin
Atlantic has its fair share of devoted clients that won't to flay any other airline when possible.
Virgin Atlantic deployed LP Chat in order to address 2 main objectives which are: to enable
travellers to have their questions answered in actual-time online, enhance online ticket sales
conversion rates as well as catch website travellers who were dropping off before ending the
booking procedures. Not only did Virgin Atlantic assist booking conversions as well as enhance
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customer satisfaction level, they decreased costs. By turning client query away from electronic
mail and leading them to chat, Virgin Atlantic importantly reduced resolution times and
decreased the cost per interaction when compared to phone and email channels. Customer
expectation from Virgin Atlantic is to get effective and healthy services. There are some
amenities needs by upper, premium and middle class customers which are determined as below:
Economy Light & Economy Classic
 Entertainment on personal screen such as movies, games, and music.
 Kids entertainment pack Snacks and drinks including beer, wine, hot drinks, and spirits
Premium classic
 USB socket
 Premium amenity kit on night flights Welcome drink considering Champagne and a newspaper
Upper Class
 Large leather seats that convert to lie-flat beds
 Light bites as well as snacks also available to order or pick-up from the bar
 Duvet and pillow
The benefits of customer satisfaction with Virgin Atlantic Air assess
As per the view point of Agnihotri and et. al., (2016), Out any business successfully it is
crucial that whatever product or service is being created has the capacity of fulfilling the
expectations of the market in which business is serving. Author put emphasis on the fact that
once the user is satisfied with the deliverables it would raise the customer loyalty and hence they
will be permanent user of the brand. There is huge competition in the market and to establish ten
competitive advantage this is needed that the customers are happy with being delivered to them it
becomes easy for the Virgin Atlantic to establish their own price. It is because a satisfied client
will not negotiate much with the organisation and continue using its services even if the cost is
raised to a little extent. Also a happy customer further does the mouth publicity of the brand and
this way the chosen organisation will be benefited by addition of new clients. People who feel
pleasure in using the offered services also facilitates the brand with genuine feedbacks. As they
are the ultimate user of whatever being provided to them they tell it more accurately that what
changes are required. It will help Virgin Atlantic in making the favourable changes
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According to the Popovič and et. al., (2018), supported the concept of satisfied customer
and had a view that it is favourable for the development of company in long run. He says that it
leads to repetitive buying by the user which has positive effect on the future sales of enterprise.
Another way how the airline will have the benefit from the satisfied user is that it will give a
positive impact on employees which are working with company. They will have to deal with
less complaints and can work in a happy environment. it further motivates to maintain their
quality as this will reflect on their own future professional prospects. When the clients are not
happy with the services it affects the overall revenue and hence then pressure is created on
marketing and other departments.
In order to meet customer needs different ways and advantages must be provided by
Virgin Atlantic to its customers (Customer service plan, 2019). Ensuring responsiveness to
customer complaints, Minimising inconvenience resulting from flight cancellations/
misconnections, Notifying customers in a timely manner of changes to travel itineraries,
Disclosing cancellation policies and other information, Meeting customers essential needs
during lengthy tarmac delays, assisting and enabling customers with special needs, Allowing
reservations to be held or cancelled without penalty for 24 hours, Delivering baggage on time
and many more. These are consider biggest actions that must be taken by Virgin Atlantic with
purpose to satisfy customers needs and wants.
According to the Abuzid and Abbas, (2017), Airline industry is extremely competitive
and clients are most essential factor of the travelling process. Customer satisfaction is important
and significant strategies for the growth of airline industry. Complains from the customers side
serve as a critical part of service quality which lead to increase satisfaction among customers.
Customer complaints provides an effective opportunity to Virgin Atlantic improve their
mistakes, manipulate customer's future and retain dissatisfied customers for long time. Therefore,
better customer satisfaction is beneficial for the growth and development of Virgin Atlantic
within airline industry. There are different advantages gained by company through customer
satisfaction such as reduces customer churn, increase customer lifetime value, reduce negative
word of mouth, improve brand loyalty, enhance market image etc. These are main advantages of
satisfied customers and support an organisation in accomplishment of competitive advantages
easily.
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