Service Marketing and Relationship Marketing Report: Jetstar Airways

This report provides a detailed analysis of service marketing principles applied to Jetstar Airways, a low-cost carrier. The report begins with an executive summary and introduction to service marketing, followed by an overview of Jetstar's operations. It includes a flowchart illustrating the front-stage and back-stage activities, such as customer interactions, baggage handling, and flight operations. The report emphasizes the significance of service encounters, exploring the importance of service delivery, service quality, culture, customer experience, and employee engagement. It also discusses managerial implications, such as employee training and feedback systems, to improve service delivery and customer satisfaction. The analysis concludes with a discussion of how service marketing can improve customer relationships and overall business success, with the ultimate goal of achieving customer satisfaction and loyalty.

Service marketing and relationship marketing
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Executive summary
The aim of the report is to discuss concept of service marketing for real-life Company who is
offering services in the market. Jetstar Company is an airline company who is offering the
services in the market as the low cost carrier as this will help them to encounter the requirements
of customers. The analysis of back stage and front stage operations has been done. The finding
shows the service encounter is very important for the company. It include the ways through
which company deliver the services. The findings shows that service encounter is every
significant for smooth operations of the business. In the end, the managerial implications are
suggested to the company, which will contribute in improving the operations.

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Contents
Introduction......................................................................................................................................3
Overview of company..................................................................................................................3
Flow Chart of front stage and back stage........................................................................................4
Front stage...................................................................................................................................5
Back stage....................................................................................................................................5
Significance of the service encounter..............................................................................................6
Importance of Service delivery in service encounter..................................................................6
Importance of service encounter..................................................................................................7
Managerial implications..................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
Service marketing is refers to as business-to-customer services and business-to-business services
with the marketing of these services. The purpose of report is to apply the marketing and
concepts related to real-life business. Jetstar airline is a real-life company that is selected for this
report. The company offers delight services to customers by offering low-cost. The report
includes the flowchart of the back-stage and front stage operations of the business. As per the
flowchart, the significance of the service encounter as well as the managerial implications related
to Jetstar Company is presented in the report.
Overview of company
Jetstar Airways is recognized Australian low-cost airline with head office in Melbourne
Australia. This airline is a whole subsidiary of company that is formed to provide the tough
competition in market (Jetstar, 2018). The business has approx. 8.5% of all the travellers who
made the visit from Australia. The core service provided by the company is to allow the
customers to visit from one place to another (Jetstar, 2018).

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Flow Chart of front stage and back stage
The below given is the service blueprint which is an operational preparation that offers the
direction for service that will be offered. The below given chart provide the exact working and
activities of the business. The front stage and the back stage work is reflected which is linked
with the other activities which are presented.
Customer Make
Reservation
Arrival at
airport
Security
check
Board
plane
Exit
Plane
Pick up Luggage
and leave the
Airport
Contact
process
Front
Stage
Back
Stage
Hail and
Take bags
Check
Passengers
Greet
Customer and
provide
services
Send-off
Customers
Load
luggage
bags on the
plane
Remove
luggage
bags
Support
Process
Online
Registration
Registration
system Conveyer
Belt
Metal
Detector Conveyer Belt
Pilot board
the plane

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Front stage
In the Jetstar Company, the front stage includes the hail and takes the bags, checking the
passengers, greet the customers and send-off customers.
 On the airport when the customers reach then they hail and takes the bags after
confirming the baggage checking and their allowed weights.
 Checking the passenger is required for the safety of the plane as well as the other
members. Every customer who takes the plan for the destination needs to go from the
security check by the front staff presents at the airport.
 Greeting the customers is one of major activities that are performed by the front staff
employees in the plane at the time of boarding. This greeting is done by the Airhostess
who presents the gesture to their customers. Along with this, the airhostess also provides
the services to the customers that include the food and water services (Jetstar, 2018). The
staffs also provide the additional benefits, which are included in the trip and make sure
that they know about the customers and offer them effective services.
 Once the customer reaches at their destination then staff send-off the customers with full
safety and security from the plane.
Back stage
In the Jetstar Company, the back stage operations include loading of luggage bags on the plane,
Pilot board the plane and removing luggage bags.
 The loading luggage back is one of the back stage work that is done by the staff of the
Jetstar. This loading is done with the help of luggage carrier with the full safety and
confirmation that there they have taken every customers luggage.

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 Removing the bags is another activity that is conducted at the final destination of the
customers by the back stage staff so that they can provide the luggage back to their
customers.
Significance of the service encounter
Importance of Service delivery in service encounter
Service encounters are transactional connections in which company offers the services to another
person. For every company there are four successful systems through which they can deliver the
services, which include the service quality, culture of service, customer experience and employee
engagement (Lovelock and Patterson, 2015). The explanation of these elements for Jetstar
Company is given below -
 Service quality: - The service quality consists of processes, strategies, and performance
management systems of Jetstar Company to complete their mission. The mission of
business is to offer low fares that allow maximum number of people to fly different
places so often. The service quality that is provided by company is effective as they are
able to meet the expectation of their customers (Wirtz and Lovelock, 2016). For instance,
customers of Jetstar want good service in low price that they are getting. The company
ensure that they are able to meet both the tangible and intangible attributes that include
in-flight meals, frequent basis flyer programs, proper legroom, and seat space which
generally remained the issue in the airline. The company provide the high service quality
to their customer that is one of the ways for service encounter.
 Service culture: - It is built on elements that are related to the principles, mission, and
other. Jetstar Company has the mission to provide services to many customers at low

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prices (Wilson, Zeithaml, Bitner and Gremler, 2016). Along with this, the company value
its customers and believes in providing the service by following their culture effectively.
The company has strong and unique culture, which include being safe, responsible,
energetically efficient, caring, and consistent and many others. Jetstar offers the services
by considering these values as this helps them to meet the expectations of customers.
Thus, this becomes important factor of the service encounter. The culture of the business
is one of factor that drives the service delivery of company.
 Customer experience: - The customer experience involves the expectation of the
customers for the service delivery and what they get in terms of the service shows the gap
among the customer experience that is required to consider by the company (Service
Futures, 2019). This is possible with the help of service encounter in effective manner.
 Employee engagement: - The attitude of the employees towards their company and
customers is one of the way through which they can ensure their contribution in offering
delight customer satisfaction. Jetstar company employees are valuable for them and they
have the personal connect with the customers. This contact of employees with the
customer helps them to deliver the service effectively (Kauppinen-Räisänen and
Grönroos, 2015). This shows the importance of employee engagement in service
encounter.
Importance of service encounter
Accomplishing requirements of customers: - Every encounter works as an opportunity for the
Jetstar Company to encounter requirements of the clients. The change is expected in needs of
customers with the introduction of new technology for which the company need to service
encounter. Most of the customers want the high quality services updated with technology as well

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as low prices in services. This leads to the issue for Jetstar Company because it is difficult for the
company to provide easy and every high technology service in the low prices. Thus, the
company focus on the delivery of service by employees because the behaviour of employees
with customers can help in satisfying the needs because employees are first interaction of
customers with company (Chitty, D'Alessandro and Gray, 2019). The service encounter is
important as it contributes in delivering the best services that can effectively meet the needs of
customers.
Value to customers: - The service encounter includes that company offer value for the services
to their customers. Jetstar Company makes the customer to value the services that are provided to
them at low cost. This shows that service encounter is essential for offering the value to
customers.
Long-term relationship: - The successful service encounter allows the company to sell services
to customers that benefit the long-term relationship. If the customers of Jetstar Company get the
service in effective manner then they form the strong bond with brand. This service includes
employees support to customers, different online and offline facility, timely landing and take-off,
security and safety and many others (Kumar, Rajan, Gupta and Dalla Pozza, 2019). This long-
term relationship is essential for company as they can generate customer loyalty and high
revenue for them. They can also easily contest with their opponents present in market. This
makes service encounter importance for the company (Paparoidamis, Tran and Leonidou, 2019).
It can be said that there are some reasons due to which service encounter is importance for the
Jetstar Company. The service encounters is important for the company as it lead to the
immediate impact on the satisfaction level of the customer and contribute in determining the

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long-term factors like probability of communication absolutely about the service, customer
loyalty, and intention to return (Armstrong, Kotler, Harker and Brennan, 2018). This helps them
in running the operations smoothly which include the back stage and front stage activities.
Managerial implications
The service marketing study shows that for effective service encounter there is need to deliver
the better training to employees for their customers. This will help them to generate the high
customer experience. The soft skills training to the employees will help them to enhance
experience and satisfaction of customers. In addition, the company needs to hire the talented
employees that are equipped with skills and knowledge that can contribute in achieving the
objective.
The managers of the Jetstar need to bring the system of the feedback through which they can
offer the feedback for the improvement that they can bring in their front and back stage work as
it will help them to complete it effectively. Along with this, it will lead to rise in satisfaction of
the customers. The feedback system not only involves the feedback for the employees from the
management but the customers can also share their experience with the employees. The areas of
improvement will be adopted and this will bring the improvement in service encounter.

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Conclusion
In the end, this can be said that every company who transactions in the service industry need to
ensure that they able to accomplish the expectations of the clients present in market. The report
shows the operations that are conducted by the company that involves the front stage and back
stage of Jetstar. The analysis shows the significance of service encounter and service delivery of
Jetstar Company. In end, the company needs take the action that includes providing the training
to the employees and there is need of the feedback system for enhancing the service delivery.

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References
Armstrong, G.M., Kotler, P., Harker, M.J. and Brennan, R. (2018) Marketing: an introduction.
Pearson UK.
Chitty, W., D'Alessandro, S. and Gray, D., 2019. Services marketing. Oxford University Press
Australia and New Zealand.
Jetstar (2018) About us [Online]. Available from: http://www.jetstar.com/au/en/about-us
[Accessed on 9th August 2018]
Jetstar (2018) Flights [Online]. Available from: http://www.jetstar.com/au/en/flights [Accessed
on 9th August 2018]
Jetstar (2018) Food and drinks [Online]. Available from:
https://www.jetstar.com/au/en/flights/food-and-drinks [Accessed on 9th August 2018]
Kauppinen-Räisänen, H. and Grönroos, C. (2015) Are service marketing models really used in
modern practice?. Journal of Service Management, 26(3), pp.346-371.
Kumar, V., Rajan, B., Gupta, S. and Dalla Pozza, I. (2019) Customer engagement in
service. Journal of the Academy of Marketing Science, 47(1), pp.138-160.
Lovelock, C. and Patterson, P. (2015) Services marketing. Australia: Pearson.
Paparoidamis, N.G., Tran, H.T.T. and Leonidou, C.N. (2019) Building Customer Loyalty in
Intercultural Service Encounters: The Role of Service Employees’ Cultural Intelligence. Journal
of International Marketing, 27(2), pp.56-75.

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Service Futures (2019) Four Key Elements of a Service Delivery System [Online]. Available
from: https://www.servicefutures.com/four-key-elements-service-delivery-system [Accessed on
9th August 2018]
Wilson, A., Zeithaml, V., Bitner, M.J. and Gremler, D. (2016) Services marketing: Integrating
customer focus across the firm.
Wirtz, J. and Lovelock, C. (2016) Services marketing. World Scientific Publishing Company.