CHAPTER 1: INTRODUCTION
Overview of the Research
Customer loyalty can be described as the result of positive emotional experience and physical attributes which are based on satisfaction and perceived value of an experience in regards to a product and service (Best, 2012). Consumer loyalty is also consisting as an essential element for an organisation. In this modern era competition is so high at market place and organisations are concern on gaining attention of customers through offering them goods and services as per the choice and preference of customers.
(Source: System For providing loyalty schemes to the customers, 2018)
In the recent era airline can be considered as the most developing sector and helps in providing various opportunities and benefits to the economy of country. All organisation come into existence in order to earn a huge amount of profit and attain a secure and successful position at market place. There is no doubt that strong loyalty programs motivate existing buyers to purchase product on frequent basis. Loyalty of customer exceeds beyond its behaviour and incorporates liking, preference and future intension to purchase product from the same industry. Airline industry concern on providing most satisfactory products and services to their regular customers as to sustain them for long time. The present research is based on investigation on the impact of loyalty scheme on tourist fidelity towards the British Airways. Loyal customers are beneficial for organizational growth and success. Organisations are widely focused on attracting customers through offering them various offers and high quality products and services. Services which are offered by different companies in the aviation industry are different from one another depending upon their size and scope. British airways for instance is a huge enterprise that believes in giving a perfect experience to its customers for which high quality of services is maintained. On the other hand, A study of British Airways is comparatively operating on lower scope and is providing service at economic prices. Both of these are part of aviation industry but are using distinct approaches to raise the total customer loyally.
Background of the research
Customer loyalty and satisfaction can be consisting as a most important element of each business organisation. It is effective for attaining long term objectives in effective and efficient manner. Now-a-days, it is very common in many service sector to establish great relationship with its target customers and tries to retain them for longer period (Eid, 2011). Organisations are very much focused on gaining loyalty of customers as to creating benefits and profit form firm. This dissertation talks about loyalty scheme which are offered by airline industry in order to retaining customer loyalty and satisfaction. Large airline industry such as British Airways is concern on providing variety of goods and services to their significant buyers in order to sustaining them for long time of business activities. Contradict to this less efforts are given by easy jet to ensure innovation and monotonous activities are carried out as it fall under the category of a domestic airline. In UK, British Airways is considered as the largest airline based on fleet size. The company was created in 1974 with a merger of four different companies namely, Northeast Airlines, Cambrian Airways, British European Airways and British Overseas Airways Corporation. In 2012, British Airways merged with Iberia, creating International Airlines Group which is considered as the world's third large airline group in terms of generating annual revenue and ranked second largest in Europe. Easy jet follows the strategy of satisfying the customer by providing facilities at affordable prices so that more and more customers can be attracted towards the same. On the other hand, British airways focus on improving the present comfort level of customer by adding more valuable facility which can raise the standards of passengers in terms of their life style. This research dissertation mainly talks about loyalty program of airline industry that aid in satisfying and retaining customer for longer duration. Executive Club, discount offers, free food etc. are some of most popular loyalty programs which are significantly adopted by airline firms.
(Source: Offers provided to the customers, 2018)
Special and General Terms involved in Research
Loyalty is a trait which is rarely found in individuals and therefore when company engages in business it seeks for customers who will be a regular purchaser of its goods and services. Airline industry is a kind of industry where profit margin is low and competition is high and in such as case if a company in this sector would be able to get customers who would remain loyal with company throughout then it can be a strategic asset for them. Customer would want to stick with one particular airline as the services provided by them might be different from other competitors and the company would be giving extra benefits and offers to its regular customers. Both company and customers will get various kinds of benefits, if there will be a loyalty scheme that will be in place. The British airways will be able to retain its customers and Loyal Clients will get various discounts and better services from the side of employer. History suggests that if there is a proper loyalty scheme that is in place it can ensure that company's customer base will increase going forward and it will contribute to company's growth and profitability. It is quite clear from this analysis that only those companies will be able to succeed in future which will focus on improving customer loyalty and various programmes will be initiated for the same.
Reason for selection of Topic
The main objective behind selection of this topic was to analyse the level of loyalty that consumers have towards the aviation industry after the implementation of Loyalty scheme for tourists. It is very crucial for every organization to retain its loyal customers over a longer period of time as they can contribute for growth of business. Loyalty is something which can not be gained by any company very easily and therefore it is of paramount importance that company should implement various policies and strategies that will result in maintenance of loyalty of customers. Some of the reasons behind selection of this topic includes British airways will be able to know its strength in that particular industry and how it can improve the same. A company should focus on improving loyalty of its customers and stakeholders, for this purpose the management of company should make necessary decisions (Laroche, Habibi and Richard, 2013). The topic has been selected as this will enhance the skills as well as knowledge of learner and by studying about this loyalty scheme of British airways, learner will be able to get a intrinsic analysis on hoe customer loyalty effects business and its profitability and what measures are adopted by organizations to retain its loyal customers.
This is the most important part of research project which helps in clearly defining the issue of research. This is a predetermined statement which provide a clear direction to the researcher to carry out the work n proper manner. This part of research provides a clear intention of conducting the research project (Ramanathan and Ramanathan, 2011). The essential aim of this particular research is “An investigation on the impact of loyalty scheme on tourist fidelity towards the British Airways”
(Source: Responsibility of a channel manager within Airline Industry, 2018)
These are considered as the detailed objective that depicts what a researcher will researched during its study. The main objective of investigator is to get the right solution of a right problem. Basically, these are the results sough out mainly by the researcher at the end of research process. This help in providing guidance and direction to researcher so that they can achieve what they wanted to in an effective and efficient manner. Some of the main objective of research dissertation is mentioned below:
- To measure the effectiveness of loyalty scheme in market.
- To determine the reason behind loyalty of stakeholders and customers.
- To analyse the impact of loyalty development programme on tourist allegiances of British Airways
- To recommend the ways in which loyalty schemes can be made more effective for attracting more tourist towards British Airways.
This is considered as another important part of research dissertation that aid in establishing strong relationship between objectives and aims of research. Here questions are prepared on the basis of above mentioned research objective. Mentioned below are some research question:
- How to measure the effectiveness of loyalty scheme in market?
- What are the reasons behind loyalty of stakeholders and customers?
- What is the impact of loyalty development programme on tourist allegiances British Airways?
- What are the recommendations that can be made for improving the quality of loyalty program of British Airways?
Chapter Structure of research dissertation
There should be proper format in order to perform the research in effective manner. The presentation of research should be design in effective manner so that it can be easily understood by anyone. In this case researcher is going to implement definite structure which is mentioned below:
Chapter 1: Introduction
this is the first chapter of the research it provides the brief summary about the topic of research. It also defines goals and objectives of the research. This is the initiative steps which is taken by the researcher in order to attain the effective outcome.
Chapter 2: Literature review
this is the second chapter which consist of dissertation which provide brief of the research in order to proper running of training methods. It consists of data from the various types of resource like journals and various published article. It depend on the dissertation in order to accomplish aims and objectives in stipulated time period.
Chapter 3: Research Methodology
this is the third chapter of the dissertation which are mentioned after proper completion of Literate Review part of report. It basically consist of detail information’s that has been derived from the various findings of Report. It is made up of various tools and techniques that will be used to collect as well as analyse data to arrive at conclusion.
Chapter 4 : Data Analysis
The data which has been collected is analysed according to research questions and objectives. It provides a detail information regarding the findings from data. It helps researcher to present outcome in appropriate form so that reader will be able to understand the nature of study.
Chapter 5 : Conclusions and Recommendations
It is the last chapter of research work in this conclusion is drawn of the whole report which is usually in accordance with research objective and aim of study. Recommendations is given on that topic as how and what improvements can be made for the purpose of achieving effectiveness.
From the above chapter it is conclude that there is different loyalty scheme play important role in order to grab attention of customers. Further this section has provided aims and objectives which are based on the selected topic. at last of the chapter reason for selecting the topic is specified in context to make research more effective and efficient.
CHAPTER 2: LITERATURE REVIEW
After the introduction chapter another one is literature review. It is considered as most critical section in the entire dissertation. Under this section different authors views in relations to the particular study are presented. Further, all the information collected in this section from secondary sources. The present chapter helps in analysing the gap which is left by previous researcher in their study. Therefore, this chapter will cover, the effectiveness of loyalty scheme in market. Later it consist of the reasons behind loyalty of stakeholders and customers.
Measure the effectiveness of loyalty scheme in market
The loyalty program is nothing new, but this means it can be outdated. As per the investigation, the large number of customers groups are make effectiveness in the loyalty of schemes and strategies in better manner. Every year business can expand their loyalty program in the form of providing discounts, special promotions, free rewards system, etc. that can help in redeem by customers. While customer loyalty program are common place, evidence indication that are not seen as strategies which are rendering the services and facilities in better manner. Therefore, the measurement of impact on customers loyalty program which is not essential and develop new reward system such as vouchers, game platforms and loyalty cards in effective manner. The common way that are used by marketing manager of entire aviation industry is to measure the results of loyalty program which is simple for comparing with sales quality of large number of staff members against the sales of non member, after that it will determine the high level of sales number regarding loyalty program (Aaker and Joachimsthaler, 2012). There are correct attribution which are missed the equation and the loyalty program is very complex for analysing the company income and revenue in better manner. For measuring the effective loyalty scheme, they need to follow all approaches and concept which are made by company. There are various aviation companies which are also measure their customers loyalty system which help them in analysing their needs and demand and according to their demand, they are given them appropriate services and facilities. For example; British airways which is a multinational airline company provide high quality based goods and services to their passengers as compared with this there are different airline organisations such as Cello aviation, eastern airways, easy jet, etc. which are offering low cost products and facilities to their passengers for making customers loyalty in proper manner. This will maintain the goodwill and reputation of these organisation. The loyalty scheme can encourage and motivate the business repeat and also assist their customers satisfaction. There are advantages and disadvantages of various loyalty systems and this can assess their effectiveness.
Point system is one of the common loyalty program that is determine as points system. There are various customers who are earning high points while buying with the help of member card. Such points are assembled and gathered in various sort of discount and advantages of customers. Along with this, point system is providing high loyalty program for their businesses whose customers are making small but developing frequent buying systems. It is one of the great point system which maintain loyalty system of Airline industry. This is one of the famous company which provide effective services and facilities to their passengers. This is very simple system and Airways sector can make random discount and special birthday rewards for maintaining their buyers in better manner. While comparing between various aviation industry such as Cello aviation, eastern airways, easy jet, etc. also offer these type of system and policies which assist them maintaining customers loyalty.
Tier system is the major difference between tiered program and points programme is that where tiered schemes can provide and offer reward system in the long time period. This system work for serving small rewards for connecting with the program, after that they will increasing the rewards cost by which customers will became loyal. It will tend towards work that can help in doing appropriate task which need higher commitment such as insurance, travel and hospitality sector (Chuah, Marimuthu and Ramayah, 2014). The airline sector will get advantages with this system. If large customer base are buying small products and items then they will enjoy the services and facilities which are provided to them in the airline. The tiered system will discourage them for the next level of unachievable.
VIP status is all about for getting customers to paying future privileges that can gain complex result or outcome, that can show the certain possibility in better manner. At the time when VIP rewards program is tempting from different business point of view then they will make and develop appropriate customers services and facilities in their airlines. For the whole aviation sector, they are providing VIP system to their rich passengers and other low class people does not getting all the high level services and facilities in proper manner.
Assess the effectiveness of rewards system is all about after execution of appropriate customers loyalty program, this can be imperative while analysing and help in increasing the retention system of customers or create high level of satisfaction among them. There are various ways which help in doing effectiveness in the current business operations and functions. Some terms which assist them in measuring the loyalty scheme in the large market place and also they can evaluate the rewards program success level.
Customer retention rate is clearly describe about measurement and evaluation of how will customers are stay in the market place for long time period. The overall point of loyalty scheme assist in enhancing the large number of buyers who are survive in the business area for lengthy period of time (Couto, Batista and Botelho, 2011). For measuring and evaluating the difference between customer retention among large group of members which is one of the major ways for determining the loyalty scheme in the large market area. With the successful loyalty program, there are various number which can be increasing in given time period as the huge number of loyalty scheme are help in growing the members which lead towards gaining profitability and productivity.
Customer effort score will help in measuring the business customer services and facilities which are based on actual experience where customers have with their firm. Customer effort score determine with that how much efforts are putting for resolving major issues and problems within an organisation. Along with this, loyalty program are highlighting the expedited requests like British Airways and other airline companies are supplying accurate services and facilities to their passengers in appropriate manner.
Negative Move is that which help in measuring and evaluating how various customers are attracted with their firm at the large market place (Espevik, Johnsen and Eid, 2011). Therefore, in negative point is the measurement of buyers who are leaving, updating their membership and purchase extra services or facilities in appropriate way. So negative churn is an essential metric for tracking at the time of smoothly running the loyalty program. For doing proper evaluation and measurement, it will required to capable for individual users or customers and also track the volume of buying services in given time period. This also help in maintaining and controlling the whole loyalty scheme in the market area.
Net promoter score is term as customer satisfaction measured which can derivable from simple customer response. It is one of the most general form of NPS which is the degree where customers can recommend with firm to others that are based on scale from one to ten.
Loyalty programmes is establishing in high range due in order to gain maximum benefits by satisfying clients needs or demands. Their main motive is to expand the business across the regions for competing with their rivalries. For example; British airways is facing competition when other association are flying their planes in same routes like; New York and JFK London is very busy route due to which they are encountering numerous of issues. However, around 30 flights are going through the same route in a single day such as; American, Virgin, Delta, Norwegian and Air India. Hence, by having same path companies needs to make distinct initiatives by considering necessary facts or figures so that they can easily compete with fluctuation factors such as; emergence of several substitutes, changes in political norms, currency alteration and so on. Aviation industry is trying to expand their business by coming with best programmes and sessions to satisfied their consumer needs or demands. In fact, all the competitors are focussing in managing each or every elements such as spending funds in launching distinct loyalty sessions for encouraging the minds of distinct customers
(Source:- Study found that BA burned 51% more fuel per passenger than Norwegian, which ranked first, 2015)
As per above data it has been assessed that competition is increasing day by day in aviation industry due to which companies are encountering major problems while designing loyalty programmes. Along with this environment is getting affected in various ways; fuel created major problem to the normal people as society is fully influenced. Thus, above diagrammatic representation said that British Airways is focussing in preventing the surrounding from getting exploited in order to enhance their image at marketplace. Along with this, their competitors are increasing but by taking correct initiatives British Airways get succeeded in managing their position as well as establishing goodwill at marketplace. Above digram shows the current status of various competitors in terms of transportation fuel.
What are the reasons behind loyalty of stakeholders and customers
Loyalty is more powerful word, and business has been capable for motivating and inspiring their company position in better manner. At the time, when business stakeholders are satisfied with this, so they are being loyal, competition become correct or relevant. An organisation seeks towards loyalty from customers or stakeholders, their high level of performance by leaders that directly impact on proactively developing their new and improved goods and services for their buyers and its stakeholders. They are providing best quality based data and information to their customers and on the other hand, they are partner with their buyers which help them and creating business opportunities. Loyalty among customers and an enterprise is possible when the role of leaders are present in large number of groups. The leader are improving and maintaining their company effectiveness in better manner (Hussain, Rahman and Hassan, 2012). While regenerating the income, it is necessary for customers is to sustain with the customers loyalty regarding customer base. The performance of effective leaders should be highlighted, this will desired towards customers loyalty, impact on business operations and functions to make creative and innovative things, also developing appropriate decisions with the help of customers and many other. All such activities and actions are concentrate on anticipation of customers regarding their cost, quality and services. For instance; British airways are providing effective facilities and services to their stakeholders and customers and also analysing the reason behind their loyalty in huge manner. This will create and make appropriate reason for developing and maintaining loyalty among customers and stakeholders regarding aviation sector services. On the other hand airline organisation such as Cello aviation, eastern airways, easy jet, etc. that are also adopting various methods and techniques for maintaining customers loyalty.
The concept of customer and stakeholders loyalty is the main goal which manage and maintain the role of company leaders which is applicable for other stakeholders, employees, community, society and owners. All such stakeholders have their related demand, needs and all the leaders have their own goals and objectives which help in performing better task or work which are able for motivating or inspiring the loyalty system (Janotta, 2013). There are various reason which help in maintaining the customers loyalty that are described.
Strengthen the positive customer experience: As per the research, there are various services and facilities which are offer by Airline industry company which help in maintaining and increasing the customers loyalty towards their items and products which are provided by them to their customers or passengers. At this stage, the customers need to understand about the company different services and policies which they are serve at the time of using their facilities within the air-plane. A loyalty program given the perfect scheme in proper manner.
For managing and maintaining effective relationship wit enhancing the opportunities and lower the risk level of each relationship and organisation can increasing their quality of their intangible assets and after this this will increasing the whole valuation of the business concern. This will also assist in maintaining the relationship with customers, employees, suppliers. Competitors, owners and government in proper manner. For each and every group of the integrity principle, authenticity and engagement should be implemented. There are some strategies and policies which as been implementing by British Airways which increasing the customers and stakeholders loyalty.
Personalisation in the airline industry, there are various sectors which are satisfying their passengers needs and demands with more personalised experience. For getting this, industry are adopting latest technology and method for managing customers wants and demand (Minazzi, 2015). They are prefer the customers choice and according to their request they are fulfilling all their needs and demands. British airways can given their passengers with more customised travelling experience which remember them for long time period.
Rewards programs in Airlines industry giving rewards programme which has been impulsive the power behind customers loyalty. Therefore, the loyalty system are also known as frequent flier programs which have track the number and offer incentives such as tickets and updating travel frequency. This system is given in fair manner to each and every passengers. Revenue based program are structure to rewarding the airlines appropriate customers that are based on spending money. The Airways rewards are satisfying the customers loyalty and it will also increasing and maintaining the whole revenue based program. As compared with this, all the other aviation sector are also providing high amount of reward system to their employees which increasing their morale and boost them towards doing effective work.
Customers feedback through surveys is one of the most essential factor which ensure the customers loyalty. With the assistance of this, different airline are looking forward for communicating with their customers and desired to analyse the major opportunities for improving their services or facilities. The delay in flights will continue towards the large number of passengers points and airline company are mainly concentrate on making and developing improvement in their services in effective manner (Newsome, Moore and Dowling, 2012). It is proactive approach for improving their customers services for analysing surveys and examination of customer response for delay in flights of British Airways. The staff members of airways need to effective communication with their customers which help them in enhancing their relation and maintain this in strong way. For knowing the customers concern, airline are capable for developing effective and motivated loyalty based on rapid customers services in better manner. If an organisation provide them low cost tickets and other facilities then it will create high level of loyalty among customer or stakeholders towards their services. British Airways are differentiated with their rivals from the competitors, developing customers loyalty and encouraging income or revenue that are required to incorporate certain methods and techniques.
Premium economy air cabins is all about purchasing their ticket and embark for higher the customers loyalty in the airline in the future that are totally depend on their experience. They are providing comfortable seats which is not higher reserved for first class passengers. It is becoming the appropriate rules and regulations related to economy cabin and airlines are striving for providing customers along with sense of customised. It is fastest growing cabin sector and they are offering premium economy and this can estimated in better manner. British airways are doing important amount of investigation which give preferences and choice of the customers. The airline are expanding their economy premium that includes wool seating, sound system, LED based television, lighting and as compare with this all other airlines companies are also providing their customers effective needs and wants in better manner. These are different methods which help in increasing customers loyalty in effective manner. This will help in managing and maintaining the whole function of the business operations and their functions (Patankar, 2012).
Impact of loyalty development programmes on tourist allegiances
Managers of overall industry is trying to focussing in enhancement programmes for improving the company performance in much better way by satisfying customers needs or demands in defined time frame. Their main objective is to grab the opportunities which is emerging at market by adopting various useful strategies such as; conducting awareness sessions, promoting schemes and so on. Consumers are seen as most indispensable element for organization success because products or services are finally consumed by them only. On contrary to this employees are consider as mandatory asset for company because business activities are managed and regulated by them. Therefore, it has been analysed that employees and consumers both of them are playing every eminent role in success. Beside this, entire aviation industry are engaging in several programmes for creating positive relations with their users in order to gain their trust or loyalty. In fact, attainment of client loyalty is highly useful for tourist commitments and preferences as it affects the sales performance of an organization.
Tourism industry is growing in a rapid sense due to increase in consumer demands as every individual wanted to try something new or different as well as wish to experience innovative things. Thus, British airways is trying to gain loyalty of consumers by serving them in a best manner. Loyal clients are seen as primary elements for every association because cost of selling new customers is more than offering it to existing one. Basically, loyalty programmes are those activity in which attractive rewards is provide by an organization to its users in order to enforce them towards purchasing specific product (Smith, 2012). Travelling industry is becoming more competitive due to emergence of new entering rivalries with close substitutes. For example; British airways is feeling conscious due to introduction of several other aviation organization with totally unique or different ideas. In order to compete with threats and competition company is involving in establishing various other events for gaining consumer trust. On contrary to this, it has been assessed that number of aviation companies are identyified which are facing major problem while implementing loyalty programmes such as; easy jet is not having that much of positive image as compare with their competitors. Hence, because of increment in competition British airways is getting enforced towards introducing creative ideas or thoughts of capturing minds of customers as well as trying to retaining. For example; insurance of hospitality industry, additional benefits and so on.
According to Prasad Dhamdhere, 2016 it has been stated that loyalty marketing programmes plays a very eminent role in maximizing the income level of business entity. For instance; in US consumers hold around 3.3 billion memberships due to which around 26% revenue get increased in coming time frame. Aviation industry is improving their performance by adopting several additional strategies as well as advanced technology to seek the attention of customers. Moreover, some of the major loyalty events are; offering special discounts on buying products, packages, seasonal offers and so on. Loyalty programmes have a major impact on entire airline industry.
Impact of loyalty on income is all about entire corporate world are establishing for gaining maximum profits by accomplishing business activities in much better way. In fact, strong loyalty sessions are useful in maximizing the spending potentiality of consumers as well as they get attracted towards particular products.
(Source:- European airline, 2015)
According to this graphical representation it has been analysed that sales of industry can automatically increased due to loyal; consumers because they are regular and trustable one. In fact, data is showing the profit level of aviation sector which get maximized due to more or more loyalty of clients. For instance; British airways is investing maximum funds in gaining consumer attention by accomplishing various useful activities. Therefore, above data is showing the major relationship between sales and loyalty of clients. It means foreign clients are automatically get influenced by services offered by company due to its effectiveness and uniqueness. Apart from this, overall aviation industry is focussing on consumer choice or preferences and trying to maximize retention through several other events which may attract the minds of clients.
Impact of loyalty on acquisition is essential to gain the attention of users by adopting various other programmes such as; advertisement, PR campaigns, marketing, social media and so on. Loyalty sessions are consuming minimum amount as compared with advanced technology of acquiring consumers because social media as well as other mode of tools are adopting maximum amount of funds. Whereas, events are not consisting high range of funds due to presence of users (Taylor, 2011). Additionally, campaigns are also using by industry for improving their performance across international marketplace because with the use of these type of tools company can easily gain the information about specific users. Acquisition is all about seeking minds of final customers by adopting some of the useful tools or machinery in order to create a trustworthy connection between users and company. As a result, industry get succeeded in continuing their business for long term and attain future vision in a defined time frame. In today's world consumers are demanding more or more from their selected brands. For example; loyal clients of British airways are demanding more economy in minimum price, some major special discounts and so on. Hence, it has been assessed that loyalty programmes are seen as major door through users can enter.
Impact of loyalty on finding suitable users is element consumers whomsoever are buying discounted products and services then it act as heavy burden on organizational financial health. Basically, profit or amount which is earned by these type of customers are very less as compared with amount that incurred while serving them. For instance; According to Gary Hawkins who is CEO of US based Green Hills supermarket identified that out of 10 only 3 consumers are helps in generating enough profit for covering the expense which is incurred during entire process.
By analysing all the above information one thing is determined that aviation industry is fully influenced by loyalty programmes because it affects the company performance, sales, acquisition hence forth. Additionally, aviation industry is also engaged in various other loyalty development programmes for improving the current method of capturing consumers in order to gain more return on initial investment.
Recommendation for enhancing the quality of loyalty program
Aviation industry are involving in conducting or planning various programmes or sessions for encouraging customers towards specific brand in order to maximize the income level of overall industry. Thus, entire aviation industry is concentrating in designing few major activities or strategies to analyse the need or demand of users for making plans as per current situations. In today's advanced world every consumers are becoming more qualitative instead of low price because of image at societal place. In order to maintain goodwill an association is engaging in offering best quality to their customers which resulted in maximization of users demands. Beside this, numerous of loyalty programmes or sessions are introducing in these days for motivating society towards particular brand in order to improve the technique of serving clients. It helps an association in various manner such as; increase the amount of revenue, create a healthy relation with final users, establish the image at marketplace and so on. As a result, airline industry can automatically attain their long term and short term vision by gaining trust of domestic as well as foreign clients (Wallen and Fraenkel, 2013). Apart from this number of things needs to improved at global level in order to control the possibilities of mistakes and losses. Some of the necessary initiatives which must be take by entire aviation industry to gain maximum benefits in a minimum time frame.
Consideration of consumer choice is a initial thing which needs to consider is that while designing loyalty sessions it is essential for company to have a personal conversation or interaction with distinct consumers. As everyone knows that choice or preferences are differ from users to users due to number of reason such as; background, religion, beliefs, environment and so on. Therefore, company needs to understand the preferences of local, regional and foreign clients in order to control the probabilities of losses and errors. However, overall sector is a most successful industry at global market due to which they need to consider essential elements for defending their image from getting misused. Thus, managers of industry always identifies the requirement of desired consumers for enhancing productivity which resulted in improvement in quality of loyalty programmes.
Need to keep it on time means in this running world every individual wanted immediate gratification without wasting time because all are in hurry and wanted to attain their goals in a less time. It means company is liable for conducting things on a timely basis for preventing consumers in better way. Duration is most indispensable factor which must be consider for improving the performance of an association which resulted in acquiring loyalty of clients.
(Source:- Running Out of Time, 2018)
Easy to access means few uneducated people don't know how to understand various things as well as not aware about the method of accessing advanced technologies. Therefore, in order to resolve these kind of problems company needs to make easy plan or policies so that every member can easily access without facing much more issues.
Make it valuable says that loyalty programmes is consuming lots of money and time as well as required experience for attaining target set at initial stage. Mostly, consumers always prefer valuable things which is useful for their use. Thus, company needs to make things valuable instead of invaluable.
Apart from all these above factors it has been understood that as per the viewpoint of Wallen and Fraenkel (2013) it is stated that number of things needs to changed for improving quality of loyalty programmes because gaining satisfaction of users is highly complex process. Meanwhile every individual is having their own choice or preferences due to which British airways is focussing on maintaining quality of events. However, quality is maintained through usage of modern technologies as well as required to introduce advanced things at marketplace in order to fulfil the demand of clients. Apart from all the above data some of the major changes that must be done by company for improving quality of loyalty programmes.
Plan needs to make appropriate strategy for reducing possibilities of mistakes and errors in a minimum time frame. Along with this, it aids in controlling losses by understanding the needs of customers which are differ in various terms.
According to Newsome, Moore and Dowling, 2012 it is stated that appoint skilled or talented employees helps mangers while accomplishing business activities by implementing all the activities in much appropriate manner. Employees are playing a very crucial role at workplace by performing business activities by considering things as well as fulfils the needs of various users.
Implement advanced technology is a major component or modern tools are playing major role while designing loyalty programmes because it aids in completing set objectives in a minimum time period. Along with this, aids in protecting confidential information from exploitative activities. Moreover, overall industry is surrounded with various several tools and consumers are getting addicted towards modern technologies due to which company needs to focus on advanced tools for attaining set objectives.
Hence, it has been determined that above factors play a very eminent role in improving the performance of entire industry by conducting various loyalty programmes at marketplace. As a result, industry can easily enforce the desired users towards buying of specific items in order to maximize profit level of entire industry. Thus, industry is considering necessary elements for maintaining the service quality in order to cope up with current emerging problems which affects the success of an association in various manner.
From the literature review chapter, it is concluded that there are Loyalty is more powerful word, and business has been capable for motivating and inspiring their company position in better manner. Further, this chapter has provide detail information related to the impact of loyalty scheme which help in filling the gaps left by previous researcher.
CHAPTER 3: RESEARCH METHODLOGY
What its all about
Research methods are known as the theory through which a scholar can lead to make sense of the object of inquiry . In the research methodology, research strategy is known as the general plan of the way the scholar has gone about answering all the research questions. This chapter will cover different types of research methods which are used for conducting present research.
To conduct a research in an appropriate manner, it is important for the investigator to select right technique or strategy which allows to accomplish objectives of the research. It can be chosen as per the accordance to the requirements of the research (Abidin, Rusli and Khan, 2016). However, research strategies are based on inductive and deductive approach. There are different types of research strategies that are as follows
Case study leads to involve empirical investigation of the study contemporary phenomenon which lead to adoption various sources of evidence. This strategy is opposite of experimental because it does not bound to a context. For the present research this method is not considered by the scholar because it leads to focused on less and one case information which do not help in gaining valid outcome (Kalra, Phadnis and Joshi, 2017).
Survey method is linked with the deductive approach. Survey method is used by most of the researchers who conduct studies on business and management. It enables to collect a large amount of information from sizeable target population. At last, it can be analysed through the use of descriptive and inferential analysis tools. For the present research survey method is considered by the scholar in order to gain primary information for the selected topic. Among all the methods of data collection for research purposes, the survey is considered by most of the scholar because of its various advantages (Landau, Mitnik and Lev-Ari, 2016). Some of its main advantages such as it possesses high level of general capability for representing a large number of population. Along with this, it is low cost method which help researcher in conducting primary research at low cost. One of the its another main benefit is that it can be administered in different modes which lead to include online survey, email survey etc. it shows that the flexibility in collecting new information.
A survey instrument is known as the took for consistently implementing a scientific protocol to gather information from participants (Creswell and Poth, 2017). A survey instruments lead to include questionnaire which help in addressing objectives of the selected study.
Questionnaire method is considered for carrying out survey. The two most common types of survey questions are close ended and open ended. For the present dissertation, close ended questions are asked from customers (Edson, Henning and Sankaran, 2016). In this, respondent are provided with a list of predetermined responses from which they can easily choose their answers. It is an effective technique in order to know the views and opinions of respondents related to the provided questions. Survey helps in measuring the opinions, beliefs and knowledge in response to specific question. Along with this, it helps in providing quickly and easily lots of information from people. Due to this reason survey method is considered in order to collected primary information’s. Reason for avoiding other primary sources such as interview because interview method is time consuming and it is not easy to analysis. Further information may be less reliable which can put adverse impact on reliability (Hwang, and Anzai, 2016).
Action research is based on the four themes in which 1st theme is known as the focus on purpose of research for instance to study the implications of change in the firm. Apart from this, the role of scholar within the research study is to gather and analyse information. It is important for scholar to be work in the change management process or they are facing the implications of change in the case organisations (Mammen, Norton and Butz, 2016). Thirdly, the process of diagnosing, planning and making selection of appropriate action is known as the central theme of this strategy. At last, theme shows that action research must have implications beyond the immediate investigation. Reason for not selecting action research is that it is suitable for the education research.
It can be stated that ethnography is rooted definitely in inductive approach. The determination of this approach is to describe and elucidate research subjects in a way that it can provide an explanation and clarification to the subjects. However, it is known as the time-consuming strategy due to which most of the studies in business sued to avoid this strategy. One of the disadvantage of this method is that it is difficult to replicate and all the primarily information are heavily reliant on the ethnographer (Muriana and Vizzini, 2017).
It is a type of research which is applied for natural sciences with an aim to study casual links. Further, it can be said that it helps in examining whether the change in independent variable encouraged change to dependent variable or not (Raynor, Ayubcha and Alavi, 2017). However, in classic experiments two or more group can be shaped with each of them can be signified as experimental group.
Historical method is comprising of the techniques and guidelines through which historian use primary sources and other evidence. It refers to the use of primary historical data for answering the questions (Attar, Haghighat. and Ghassemi, 2016). Reason for avoiding this method is that it cannot control over threats to internal validity. Further chances of bias are high while interpreting historical sources.
It is one of the best examples of mixed approaches which emphasises on building a theory. It is adopted for predicting and explaining the behaviour. At the time when researcher adopts this strategy then it initiates with development of theoretical framework. Hence, new theories are constructed based on the theoretical framework. Adoption of grounded theory is known as time consuming process and it is not much easier to conduct. Along with this there is great room for induced by bias for the scholar is included. Due to this research researcher has avoided selection of this theory in the present investigation (Médici and Allen, 2016).
Quantitative vs qualitative research
Qualitative research is known as the type of research methodology which leads to focus on the theories and the models that assist in understanding the objectives in an effective manner. Hence, it is considered as an effective strategy which helps in determining the subjective idea of the research. Apart from this, in qualitative, there are different types of researches which are carried out by the scholar which help in gaining in-depth understanding for the subject matter.
On the other side, quantitative research strategy is known as the type of method that makes proper evaluation with the use of mathematical and statistical approach (Peter, Werner and Alavi, 2017). Complete information which is carried out by scholar can be properly evaluated with the support of all this technique. It can also be considered as an effective tool to conduct an analysis for collected information. Along with this, it also supports in collecting information through analysis and measures which are carried out with the use of statistical techniques and tools.
For the present research qualitative research strategy has been adopted by the scholar. It is because it helps in developing depth understanding related to the selected topic. Further, it will help in determining models and theories which are appropriate for the research. Due to its effectiveness and efficiency research has chosen qualitative research strategy.
Sampling can be defined as the method or the technique which consists of selection of the portion from the entire population. It is classified into two types, that is, probability and non-probability. Non-probability sampling method includes all members of the population who have a chance of participating in the study (Wright, Wahoush. and Jack, 2016). It is considered as cost and time effectiveness sampling method as compared to the probability sampling method. However, some of its disadvantage such as unknown proportion of the entire population is not included in the sample group i.e. lack of representation of the entire population.
On the other side in probability sampling method each population member has known as zero percent of chance of being selected in the study. One of the main advantage of selecting this method is that it helps in avoiding the chances of systematic error and sampling bias. Along with this it also increases accuracy of sampling error estimations (Mebius, Kennedy and Howick, 2016)
There are different methods included in probability sampling such as simple random, stratified, cluster, etc. For the present research, random sampling method is considered by the scholar in order to carry out survey (WinitWatjana, 2016). It is considered as purest and most straightforward probability strategy. Reason for choosing this method is that it helps in reducing the chances of biasness.
Target population is customers because they are more aware about the loyalty scheme provided to them while making purchase of products and services. There are wide range of offers provided by aviation companies to influence customers. Hence, customers can provide their view that how much they are influence from company’s loyalty scheme (Bathelt and Glückler, 2017).
Here 50 customers were selected of Bursitis airway company for survey. Reason for selecting customers is that they take benefits of loyalty scheme so they can easily provide specific answers.
50 customers were selected because it’s a sample size which is neither low nor too high. Along with this, it was convenient for researcher to conduct survey in an effective manner as per considering time and cost. .
Positive and phenomenology
Phenomenology philosophy in research focuses on experience, events and occurrence with disregard or less regard for the external and physical reality. It is also known as non-positivism. Further, in this idea are generated from rich amount of data by means of induction. There are some advantages of this approach such as it leads to include better understanding of meaning which are attached by individuals and its influence to the growth of new theories. On the other side positivism philosophy is follow the view that only factual knowledge can be gained through observations (Cooper, Desjardins and Croll, 2016). At the time of carrying out positivism studies the role of the scholar is to limited the data gathering and clarification in an objective way.. Its benefit is that it leads to cove wide coverage of the range of situations.
This is thought to be the conviction of analyst with respect to the ways that can help in examining, assessing and gathering the data. Further, it additionally empowers to make legitimate investigation of the sources that empowers to build up the idea of study. At the point when the examination makes utilization of suitable research theory, at that point it sets up legitimate conclusion for the exploration subject (Flick, 2015).
Positivism philosophy around conveying the investigation in which the targets are evaluated. Further, all the false realities that included are wiped out with the assistance of this examination. It is done in basic way that empowers to consolidate the sensible angle and concentrating on exploratory perception. Justifying research strategy
Research strategy is important techniques which help in conducting a research in appropriate manner. With the use of research strategy, the scholar can easily conduct research to reach its aims and objectives. It helps researcher in understanding way through which information can be gathered and analysed in an effective manner.
Reliability and validity
Reliability is known as the degree to which research method produces stable and consistent results. Research reliability is known as measures of reliability which have been obtained through conducting the same test more than once after a period of time from sample participants. There are different types of reliability test which can be applied in respect to determining the reliability of research (Toye, Williamson and Lamb, 2016). On the other side validity in survey is related to the extent at which survey measure right elements which are required to be measured. For the present research formality validity can be applied which help in measuring the effectiveness in terms of providing information which can be used for refining precise features of the phenomenon.
Data collection is one of the important parts in the research methodology chapter in which large amount of information is collected from different sources to make research more effective and efficient. It is important for the scholar to collect information and data from different sources in order to gain valid outcomes (Tight, 2016). There are two essential sources from where information can be easily collected i.e. primary and secondary. In primary, such type of information is gathered which is new and does not published in books or journals yet. On the other side, secondary is such type of information which is already published in books and journals by different authors. It is also considered as the second-hand information which supports research findings. The present research is based on……. , therefore, both primary as well as secondary information has been gathered from different sources. In primary survey method and in secondary, books and articles are considered by investigator.
The quality of the participants in the focus group or interview project lead to makes all the difference. Sampling is considered as important for both qualitative and quantitative research. For a qualitative researcher it is important to make sure that they can access their participants and they must have experience related to phenomenon under study. There are more strategies which have been proven fruitful such as contacting experts, going to exhibition in the target field and talking to expert person etc. (Kerr, Eckert an)
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