ipl-logo

Summary: Customer Loyalty: British Airways

868 Words4 Pages

Assignment 1: Marketing concept analysis/ Mor Kaverman
Customer loyalty – British Airways
"Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves" (Steve Jobs). Positioning & branding, segmentation & targeting, consumer behavior, relationship marketing & customer loyalty are all marketing concepts. One of the most studied area by researches is the concept of customer loyalty (Kumar & Shah, 2004). This essay will discuss the customer loyalty concept as reflected in the marketing strategy of Great Britain largest airline company- British airways. The essay relays on the information from two articles. First, the Financial Times magazine: "British Airways backlash misses real point …show more content…

Like other companies BA has a marketing strategy built for carrying the customer through the customer loyalty ladder, first they invest a lot of funds in customer's satisfaction trying to take the customer into the supporter stage. Second, BA has a loyalty programs aims to move the customer higher up the ladder and make him an advocate. The company way of doing it called the 'Executive Club'. They divide their preferred customers into levels, each level receive benefits according to the level of membership, as access to special lounges and going through "fast" queues. It starts with the Silver and Gold Executive Club, members may use Business lounges BA also invites its top corporate accounts to join a "Premier" incentive programs that gives them even more benefits. British Airways operates airside lounges for passengers travelling in premium cabins, and these are available to certain tiers of Executive Club members. 'First class' passengers are entitled to use First Class Lounges as well as Business class passengers, members of the Club World or Club Europe in BA …show more content…

The effect of loyalty programs on loyalty is a topic of debate. Most loyalty programs do not turn all disloyal customers into loyal or make customers exclusively loyal (Leenheer, Van Heerde, Bijmolt, & Smidts, 2007). In BA case, not only regular customer chose to fly with other companies but the passenger numbers fell dramatically, primarily because of a drop in demand for first and business class travel, suggesting that the company had lost its supporters and advocated customers. As mention in the article, in order to overcome this obstacle, BA changed its frequent flyer scheme policy so many more customers will move up the loyalty ladder, choosing it's product over the

Show More
Related

  • Westjet Ad Analysis Examples

    726 Words  | 3 Pages

    The consumer feels valued and thinks of the airlines as reliable. (Hongxia, 2014) “An efficient schedule saves you time and money.” Money and time is everything in our communist society, it’s precious to each and every one of us as consumers so when it’s advertised that we’ll be saving both, a sense of trust is built with the service. Consumers only look for business with companies they are able to trust, believing these companies will treat them fairly and honestly.

    Read More

  • Ulta Beauty Essay

    914 Words  | 4 Pages

    The loyalty programs play a vital role and it is an extremely valuable asset for both Sephora and Ulta. According to Ulta’s 2016 annual report, sales from Ultamate Rewards members represent more than 90% of its revenue. As for Sephora, according to Bridget Dolan, VP of Sephora’s Interactive Media, 80% of its transactions were made through the Beauty Insider program (Coresight Research). The comparison of the main features if the two programs are outlined in Figure 1. The similarities for both programs are free enrolment, customers can earn one point per dollar spent (basic plan) and receive a free birthday gift each

    Read More

  • Union Hills Country Club Case Study

    454 Words  | 2 Pages

    Officially known as Union Hills Golf & Country Club, Union Hills Country Club is the club to join for quality golfing and several other social activities. Located just 5 minute drive from Union Hills Drive and 101 Freeway, the club provides you with a well designed 18-hole golf course with world-class facilities and opportunity to play tennis and to indulge in swimming. This is in addition to various social activities, making it the best place to head to with your family. Phoenix’s Northwest region where the club is located is largely a desert area that used to be covered with orange groves and cotton fields. This is the theme you find on the club’s golf course although it features well manicured undulating greens of Bermuda grass.

    Read More

  • Our Nation's Capital Was The Residence Act

    1223 Words  | 5 Pages

    These are the yellow room, blue room, and the Diplomatic room. Part of the reason some of the rooms are oval is that it recreates the space for a formal reception called the “Levee”. It was borrowed from the English court. It was also a Bourque concept that was adapted by Neoclassicism. In other words, it was part of a ceremonial manner that Washington had used.

    Read More

  • Southwest Airlines Case Study Essay

    1023 Words  | 5 Pages

    Case Analysis #1 – “Southwest Airlines: Is It Still the King of Cheap Flights” 1. Answer the questions at the end of the case. 1. Airline customers can be segmented in a variety of ways. Two of these include by purpose of travel and their destinations.

    Read More

  • Sam's Club Essay

    896 Words  | 4 Pages

    Sam’s Club On April 7, 1983 Sam Walton in Midwest California founded Sam’s Club. It was previously known as Sam’s West Inc. Sam’s club became one of the top leading bulk sellers in the United States.

    Read More

  • Ryanair Financial Ratio Analysis

    2985 Words  | 12 Pages

    British Airways Plc (‘BA’) is the national carrier of the United Kingdom,

    Read More

  • Competitive Advantage Of Costco's Business Model

    1090 Words  | 5 Pages

    Costco’s business model is centered around offering a smaller range of products at incredibly low prices which attracts the consumer. In order to supplement this lowered profit margin, they require their shoppers, both businesses and individuals, to purchase annual memberships. The membership fee accounts for a majority of the company’s profit. Furthermore, Costco operates its under a wholesale warehouse style which eliminates the need for excess handling and workers in the store. The stores are stocked to carry certain big ticket, ‘limited time offer’ goods so that customers feel the need to take advantage of the deal because it may not be there when they next return.

    Read More

  • Advantages Of Oligopolistic Market

    721 Words  | 3 Pages

    Sometimes Air Asia also issues free tickets, offers free seats or super low price ticket during the non-peak season and

    Read More

  • The External Environment In The Airline Industry

    1563 Words  | 7 Pages

    bargaining power of buyers in the industry is high due strong as low switching costs and plethora of options in the market. Now, e-ticketing has improved the chance and flexibility to search for different airlines companies leading to down word cost pulls and upward services push. Furthermore, it eases of switching between different airlines companies. Therefore, for airlines they need to keep customers in the fold by providing air miles system to gain customers' attention and retain them.

    Read More

  • Consumer Behavior: Attitudinal Loyalty And Satisfaction

    811 Words  | 4 Pages

    (Jacoby, 1971; Jarvis & Wilcox, 1976). Dick and Basu (1994) propose that customer will be loyalty to the brand is the result of psychological processes and has behavioral manifestations. Therefore it should incorporate both attitudinal and behavioral. Satisfaction is recognized as an important element for loyalty in both the consumers and business marketing. Satisfaction with previous purchase experiences plays an important role in determining the future purchase behaviors particularly call as an effort-minimization strategy (Jones and Suh, 2000: Pritchard et al, 1999).

    Read More

  • British Airways: Importance Of Organizational Structure And Culture

    930 Words  | 4 Pages

    a) Importance of Organizational Structure and Culture Organisational Structure The structural plan that decides hierarchical arrangement in an organization is the Meaning of organizational structure. It describes the methods of work distribution, orientation and other activities such as management to gain the are carried out in order to achieve goal of organization. Organizational structure mainly divided into three. 1.

    Read More

  • Marketing Segmentation Of Mercedes Benz

    916 Words  | 4 Pages

    The market for Mercedes Benz will also be divided in terms of their loyalty status. Users of Mercedes Benz products will have a high loyalty status as it carries a brand image of an organization that offers it users the best products and services. Mercedes offers a Loyalty Program, for instance, “If you are a current U.S. Member of the MBCA and have been a Member for at least 12 consecutive months prior to purchasing or leasing a NEW Mercedes-Benz vehicle, you are considered a "Member in Good Standing" and automatically qualify for a $500 price discount.” (mbca,

    Read More

  • Swot Analysis Of British Airways Plc

    1454 Words  | 6 Pages

    h Airways PLC. I. Introducing British Airways Plc ("British Airways", "BA") is the largest international airline in the UK and one of the hot premium lines. The company's main place of business is London, with a lively presence at Heathrow, Gatwick and London City airports. British Airways serves over 1,000 calls to over 150 countries.

    Read More

  • Relationship Between Hospitality And Tourism Industry

    1572 Words  | 7 Pages

    First of all customer means A person who buys goods or services from a shop or business, loyalty means the state or quality of being loyal, faithfulness to commitments or obligations. So Customer loyalty is the key objective of customer relationship management and describes the loyalty, which is established between a customer and companies, persons, products or brands. “Customer loyalty is an essential aspect in any organization whether it is offering a good or providing a service. “Many organizations are looking for various ways to increase their customer loyalty as it has a positive effect on the profitability of the organization.” (Gremler 1996: 171, Abdullah et al. 2000: 826).The individual market segments should be targeted in terms of developing customer loyalty.

    Read More

More about Summary: Customer Loyalty: British Airways

Open Document