Relationship Marketing Impact on Customer Loyalty at British Airways

This report investigates the impact of relationship marketing on customer loyalty, focusing on British Airways during the COVID-19 pandemic. It highlights the significance of relationship marketing in customer retention and acquisition, especially during challenging times. The report identifies the impacts of COVID-19 on British Airways, including job cuts and revenue drops, and emphasizes the importance of strategies to build customer loyalty and attract new customers. It discusses key components of relationship marketing such as communication, satisfaction, trust, bonding, and commitment. Furthermore, the report touches on the influence market model, emphasizing the role of referrals and influencers in expanding the customer base. Effective strategies like knowing the customer (KYC) and prioritizing customer service are also highlighted as essential for maintaining long-term customer relationships and brand loyalty. Desklib offers a variety of similar solved assignments and resources for students.

The impact of
relationship marketing

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY .................................................................................................................................................3
Project planning.......................................................................................................................................3
LITERATURE REVIEW ...................................................................................................................................4
The impact of COVID-19 on British Airways.............................................................................................4
Significance of relationship marketing.....................................................................................................4
Research Methodology................................................................................................................................7
Quantitative and qualitative data............................................................................................................7
Sample size, type and sampling method:................................................................................................7
CONCLUSION...............................................................................................................................................9
REFERENCES ..............................................................................................................................................10
Books and Journals:...............................................................................................................................10

INTRODUCTION
The aim of this report is to investigate the impact of relationship marketing orientation on
customer loyalty. Promoting loyal customers to the brand is repeatedly debated to be the single
most significant carter of long term financial position which can lead to customer share, higher
prices, increased sales, lower cost (Berkowitz, E. N., 2021). For that reason, marketing
researchers underline the influence of relationship marketing as a tactical major tool from which
customer loyalty can be secured which results in increased customer satisfaction and attainment
of higher competitiveness. Relationship marketing forming a long-term relationship between
customers and organization in order to increase the revenue. An organization gathers information
and uses customer data to provide complementary products, discounts and improved service
levels. A successful relationship marketing tactics retains and acquire profitable customers for
the organization even in the tough times such as covid-19. The research is considering on British
Airways which is one of the second largest airline in UK.
The rationale of the study: Relationship Marketing is significant for its ability to make a strong
connection with its customers. The strong understanding with customer will help to know how
frequent a customer use brand' products and services in order to met with his needs, a company is
require make additional changes and features in their offerings to meet those requirements in
order to further strengthening their bonds.
MAIN BODY
Project planning
The report is going to demonstrate the impact of relationship marketing in the retention
and acquisition of customers during the situation of covid-19. It is very essential for the
organizationto retain and acquire the customers in order to smooth running of business even
though covid-19 is a tough situation for everyone (Brodie, R. J. and Et.al., 2019). British
Airways the most well-known airline in the UK which was founded in 1974 in London, England.
The significance of the research is to highlight relationship marketing and enhancing managerial
focus on increasing value of customer in more cooperative and long lasting relationships. It is the
most important challenges for the organizationto keep loyal customers and customer retention. It
has been understood that effective relationship strategy for marketing supports the business to
understand the needs and requirements of customer so that the respective organizationcan serve
better than their rivalries which results in customer loyalty and cost reduction.
Research aims:
“To investigate the impact of relationship marketing in the acquisition and retention of customers
during the covid-19 pandemic. A study of British Airways”
Research objectives:
 To identify the impacts of covid-19 on British Airlines.
 To demonstrate the significance and impact of relationship marketing in the acquisition
and retention of customers.

 To determine the effective strategies to build customer loyalty as well as gain new
customers for the brand.
LITERATURE REVIEW
The impact of COVID-19 on British Airways
According to the viewpoint of I. Muis (2020), Challenges are very common and are not
new to the airlines industry. These industries overcome the past issues such as unfortunate safety
incidents. economic recession, health epidemics and other debilitating events, it well also
overcome the covid-19 situations (Caputo, F. and Et.al., 2019). The actions which are taken by
industry leaders, individual airlines as well as government take during the situation will deeply
influence the crisis that how quickly it recovers by the industry or how long it will effect and so
on. British Airways is also impact negatively due to covid-19 situation where it expects to cut
approximately 10,000 job opportunities due to the pandemic situation even though this industry
reached the agreements and deals. The situation of covid-19 rapidly restrict the change in the
airline industries and its plan the airline decide to cutoff its services to 30% then its usual. The
revenue of the airline is also dropped due to the demands for airline services. The behaviour of
the passengers or travelers are also changed during the covid-19 crisis, they are likely to restrict
travel which significantly drop in the demand. This puts the airline under pressure even though
they are at affordable prices. organizationface two types of uncertainties that are recovery of
commercial flights and the cost of health related measures. Operating cost of the company is
increased in the short run because of the health and safety requirements that is viral test, PPE,
disinfection or temperature checks. It is very essential to take all the necessary cost in order to
prevent this to spread. Whereas international travel restrictions also impact highly in the
economic activity as well as changes in behaviour of customers as they become very conscious
about their health. Furthermore, the airline industry remain exposed to expected reappearance of
the covid-19 because government may impose the new restrictions for travel line to challenge
outbreaks or potential second wave of infection. This may be threaten the British Airways.
Significance of relationship marketing
As per the viewpoint of E.N. Berkowitz (2021), relationship marketing can be understood
as a long-term strategy for the organizationin order to build a long lasting relationship with the
existing customers to encourage repeat business and build brand loyalty. It mainly focuses on
increasing the value of customer relationship rather than promoting a product or service. The
customers always look for the companies which provide them extraordinary services with added
value and benefits with product and services. For example; airline frequent flier awards many
more. It is very important for the organizationto satisfy the customers in order to beat the
competition. In addition to British Airways, it is an essential part for the airline business during
the Covid-19 situation in order to retain the existing customers, create new customers as well as
improving the customer experience.
Importance of Relationship Marketing:-
 Creates brand image: A happy and satisfied customer always promote the product and
services among their relatives, peers and known ones. In addition to British Airways, they

are likely to take necessary precautions and follows necessary instructions to gain new
customers as well as retain existing customers for the brand.
 Gain competitive advantage: When a customer is loyal to the brand and feels
comfortable to buy services rather than from other organizations. British Airways are
likely to serve better to their customers than its competitors in the industry.
Impact of Relationship Marketing:
 Mutual Benefits: One of the positive and major impact of relationship marketing is
mutual benefit. The customer gain something of value through personalized and regular
communication. In context to British Airways, they are likely to benefits mutually during
the covid-19 as they serve customer better services while taking necessary precautions
and safety measures.
 Retention: A satisfied and happy customer are expected to remain loyal with the
organization(Fuhao, Z. and Osakue, E.). It is the researched that organizations are able to
make more profits from customers who benefits and services of a loyalty perks of
program. When customer is satisfied with the service it tends to enhance the cost
efficiencies of the relationship. But on the other hand organizations or business must not
continue their relationships with customer that takes to cost to maintain.
 Relationship stages: A customer who has experience positively in order to maintain
relationships through commitment stages. Relationship between an organizationand a
company starts within exploratory stage then next to the developing stage and last to the
commitment stage (Yuan, Y., Lai, F. and Chu, Z., 2019). The commitment stage can be
understood as a communication and trust between an organizationand a customer are
predictable and strong. Mutual benefits must be aware from both the sides in order to
commit long term relationship.
 Customer Gratitude: It is one of the most important role in the development of long
term relationships of customer and their loyalty. Gratitude are likely to rise with the
amount of special treatment. When customer receive awards for their purchase they are
likely to respond positively to prospect deals. When the relationship between customers
and sales representatives are developed and they receive regular rewards initiate to sense
a commitment to the organization(Grace, A. and Et.al., 2020). When customer purchase
additional or increase the amount of their buys they shows their customer gratitude
towards the organziation.
Effective Strategies to build customer loyalty
According to the viewpoint of B. Wooliscroft (2019), British Airways always like to
maintain cordial relationship with their customers for a long term period. It is a requirement
instead of choice in this situation covid-19. As it is a tough time, the reviews of customers are
very important for the organizationin order to express their experience regarding purchasing.
 Know the Customer: KYC is always support the organization in order to track the
essential information about the customers and their needs. British Airways always

focusing on the customer's requirements and provide a better services like safety
measures to covid-19 by providing sanitize kits during traveling and so on.
 Customer service: Customer satisfaction is a core value of the organization in order to
know employees, customers and management too. British Airways always prioritize their
customer in order to provide better services and support regarding their purchasing.
From the above study, we hypothesize the relationship marketing orientation as a
multidimensional concept which includes five components of behaviour such as communication,
satisfaction, trust, bonding and commitment (Gu, F. F., Wang, J. J. and Wang, D. T., 2019).
Trust can be understood as a belief of one side party that their requirements will be fulfilled in
the future by the actions of the second party. Commitment refers to the explicit and implicit
pledge of the relationship continuity between the two parties. Whereas communication helps to
build the trust between the two parties in order to resolve the disputes and improve the
expectations and perceptions of customer. Bonding can be defined as the act of parties in a
unified manner in order to decide a goal. Last, satisfaction is a value treatment of customer
which is relatable to the level of pleasure from consumption. It has been identified that British
Airways always prioritize their customers in order to maintain the long-term relationship and
build their loyalty towards the brand even during the covid-19 situation.
Model of Relationship Marketing:
There are six model of market such as customer markets, suppliers markets, influence
markets, recruitment markets, internal markets and referral markets which helps an organization
to study about the stakeholders and key market domain that may be vital to them. It is important
for an organization in order to grow and develop to maintain its relation with internal and
external environment. In context to British Airways, one of the model of relationship marketing
is mentioned underneath:-
Influence market: This market contains stakeholders and third parties. In context to British
Airways, the customers who bought the services from the company must refer to their friends,
neighbors and relatives. Theses are kind of the influencers to the company and third parties
retailers or supply partners influences to buy the product or services then they known as value
added influencers. They may be Analysts, Shopkeepers, TV Reporters, Article Writers and many
more.
Pros:
 They are the experts in their own field: Influencer marketing are having a connection
with latest influencer marketing and social media trends as well as they completely
understand the elements of introduce the marketing campaign which is successful.
 Save the time of business: This connection with influencer marketing will provide as an
extension of the marketing team and also supports to manage every step of the process.
Cons:

 Choosing the wrong influencers: Most of the marketers are failed to choose the right
influencers campaigns because it takes time and efforts. And if it done wrong then results
comes in some damages.
 The uncertainty of influences: There is a chance to get a contract sign with the
influencers who delivers successful marketing contents in the history but fails to delivers
the effective content for the company. This will result in lost money and customers won't
engage anymore.
Research Methodology
Research Onion Structure: The onion layers in the research structure will delivers the more
detailed descriptions of the steps in the process of research. In relationship marketing, it helps to
provide an effective progressions through which a research methodology can be created. The
layers are classified into six chief areas such as research approach, research philosophy, research
strategy, time horizons, research choices and techniques and procedures.
Quantitative and qualitative data
Research methodologies is very important industry provides a framework in which
investigator is responsible for analyzing and obtaining information on the basis of certain aims
and research. There are two methods of collecting data are quantitative and qualitative.
Quantitative methods: Quantitative data helps who identify the problem in which numbers can
be generated or it can be transformed to the practical statistics (Hartmann, N. and Et.al., 2020).
British Airways use quantitative research to quantify the opinions, attitudes, behaviour of their
customers.
 Survey: In order to maintain the relationship with customers British Airways collects
data from the survey by providing their customers a list of questions in order to provide
their experience with the service. Observations: British Airways are likely to observe subjects where variables cannot be
controlled.
Qualitative methods: Qualitative research is used to understanding underlying motivations,
opinion and reasons where it provides visions into the issues on supports to generate ideas.
 Secondary research: It can be understood as a collection of existing data in the forms of
images, text, audio, video as well as recording.
 Survey: In order to know their customers they distribute questionnaires which have open
ended questions or multiple questions in order get the reviews.
Sample size, type and sampling method:
Simple size can be referred to the number of observations of participation included in
research. The number is represented by n. It stimuluses two statistical properties that is power of
the study to draw conclusions and the precision of estimates.

Types of Sample size:
 Probability sampling: Probability sampling is a technique of sampling where
investigator sets a selection of few criteria of a population. All members in order to be
part of the sample have an equal opportunity.
 Non probability sampling: It is a method where investigator select members for
research at random.
The selected method is probability methods because in order to produce the results that
represents the whole members it is the most valid choice for research.
Chosen Data collection Method: The selected method for data collection is qualitative data
collection because it helps an investigator to understand the environment, in order to understand
the content of the study identify the peoples as well as make an interaction with study the
participants.
Research ethics: Ethics and research are very significant for a several reasons. They promote the
objectives of research such as expansion of knowledge (Muis, I., 2020). The help significant
social and moral values such as principle of doing no harm to others. These are also assist the
values needed for a collaborative work such as mutual respect and fairness.
Resource and planning:
Resources are very essential and limited and it must be faithful in order to maintain the cost and
quality of the project (Widjaja, B. T., 2020). British Airways requires to ensure the optimum
utilization of resources. The project will work out through mobile, literature, resources, journals
or laptop.
ACTIVITES WEEK
1
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9
Submission
of research
proposal
Complete
background
information
for research
project
Collect
secondary
sources of
information

for research
project
Comprehensive research
methodology and gather
primary and secondary
sources of data
Complete
collecting
data for study
and present
the result
Defining
Budget
Data
Interpretation
and analysis
Assessing
results and
findings
Comprehensi
ve the report
and succumb
the final
report
Budget: A budget is required to expand the business at international level. It is considered and
understand the target country's regulatory, legal or cultural environment. It has been investigated
that British Airways would like to spend sufficient amount in their initial investment.
CONCLUSION
It has been concluded that relationship marketing is concerned about retention and
attaining their long-term customers in order to fulfill their objectives. It always seeks to build
customer loyalty to towards brand. It has been analyzed that personalized and interactive
communication helps to build relationship with customers.

REFERENCES
Books and Journals:
Berkowitz, E. N., 2021. Essentials of health care marketing. Jones & Bartlett Learning.
Brodie, R. J. and Et.al., 2019. Actor engagement in networks: Defining the conceptual
domain. Journal of Service Research, 22(2), pp.173-188.
Caputo, F. and Et.al., 2019. A knowledge-based view of people and technology: directions for a
value co-creation-based learning organziation. Journal of Knowledge Management.
Fuhao, Z. and Osakue, E., Impact of social media marketing on customers' buying intentions: an
empirical evidence from Chinese apparel industry.
Grace, A. and Et.al., 2020. Franchisee advisory councils and justice: franchisees finding their
voice. Journal of Strategic Marketing, pp.1-20.
Gu, F. F., Wang, J. J. and Wang, D. T., 2019. The role of sales representatives in cross-cultural
business-to-business relationships. Industrial Marketing Management, 78, pp.227-238.
Hartmann, N. and Et.al., 2020. Salesperson influence tactics and the buying agent purchase
decision: Mediating role of buying agent trust of the salesperson and moderating role of buying
agent regulatory orientation focus. Industrial Marketing Management, 87, pp.31-46.
Muis, I., 2020. Marketing Strategy and Capability as the Mediators in Relationship of Market
Orientation and Export Performance: A Case Study of Rattan Processing SMEs. Binus Business
Review, 11(1), pp.31-42.
Widjaja, B. T., 2020. How brand equity changes service marketing: the case of Indonesian
service industry.
Wooliscroft, B., 2019. Systems and macro-social marketing: researching wicked problems.
In Macro-Social Marketing Insights (pp. 12-26). Routledge.
Yuan, Y., Lai, F. and Chu, Z., 2019. Continuous usage intention of Internet banking: a
commitment-trust model. Information Systems and e-Business Management, 17(1), pp.1-25.