Service Marketing And Relationship Management of Qantas Airlines

Question: Discuss about theService Marketing and Relationship Management of Qantas Airlines. Answer: Introduction Qantas airways limited are one of the famous national airlines of Australia. This airline is the biggest airline of Australia the worlds oldest working airline. Headquarter of the Qantas airline is in Mascot suburb, Sydeny. This report is basically presents the services of the Qantas airlines as a blueprint. This report will provide the descriptions of front stages and back stages functions of Qantas airlines. Along with this, this report will present the view of moments of truth of the airline company. Company will show the determinants of satisfaction or dissatisfaction of the airline company. The company is in operation since 1920 as Queensland and Northern territory aerial services limited. Today Qantas is famous across the world a top long distance airline. The vision of the company is to operate as the best airline in the world and to be the low fare airline of the world (Qantas, 2015). There are five main objectives of the Qantas airlines: To ensure safety of the passengers by providing best safety services, Providing best customer services to the passengers, To provide best route network by selecting proper and right route and aircraft, Developing and proving Qantas as the best brand in terms of low fare, and Improving productivity by constant operational efficiency. Qantas group has divided its services in two airlines named Qantas and Jetstar. Qantas airline is a commercial airline. The company is mainly focusing on strong marketing policy such as customer service and operation policy. The company has different brands i.e. Jetstar, Qantas Frequent Flyer, Qantas Freight, Q- catering etc for operating in regional, domestic and international market with in-flight catering and travel operations (Qantas airline, 2015). Blueprint of Front Stage and Back Stage Functions Service Blueprinting is a tool that works that enables the user to have a framework for viewing service improvement. Service Blueprinting alone does not lead to success; it is a visual tool designed to give valuable contributions to the service engineering process. What follows is a short description of the framework. Service Engineering is a systematic process for developing new services. This is usually conducted in project form and follows a basic process flow (Seyring Dornberger, 2009). Service-Blueprinting is a service planning help tool. It can be used for developing new innovative services as well as for improving existing services. The method is also appropriate for ensuring the quality of service processes. It can also be used for new employee training or for showing clients a service cycle overview. The blueprint of functions of the Qantas airlines in customer service is described below in the figure: Figure 1: Blueprint of Qantas Airline (Source: Seyring, 2009) There is the blueprint of the services of Qantas airline in the figure. In the figure, the functions of front stage and back stage for the customers are shown. For the customers, there are many functions to be done. In front stage function, the team of airline greets to the customers and then in security check functions, team the checks the passengers. After security check, the airline serves and greets their customers. These all functions are completed in front stage function of the airline. In the back stage function of servicing, loading bags in the plane, mechanism, pilot servicing, and removing bags from the plane after journey are done by the airline. Along with this, support process also has been done by the airline. In the support process, online registration, registration system, metal detector, check plane function are included (Qantas Airways, 2010). Moment of Truth of Qantas Airline In todays environment, success of a company depends upon the expanding the business and the relationship of the company with its customers. It is also depends upon the sales of products and services of the company. Moment of the truth can be defined as a case where the customer and the company come in to contact with one another so that customer gets opportunity to form or change the perception about the firm. The word moment of truth was originated by Jan Carlzon. He used this term to identify those moments in which significant brand impression has been take place and where the important opportunities for the customers are take place (Madge, Davidson Beaujean, 2006). In the case of Qantas airlines, The Company has made triumphant profit and effective growth rate in the value of flying kangaroo brand. Along with the increasing brand loyalty, company has also improved profitability, financial stability, and brand value among the customers (PASH, 2016). Share prices of the company have also increased which is currently nearing $4. Qantas biggest source of the money is its loyalty program for the customers. And consumers are engaging with this program. This is the positive impact on the company because customers perceive the company good for the airlines services (Gardiner, 2015). Determinants of Satisfaction for the Qantas Airline Consumer plays a major role in the marketing activity of any business. Costumers satisfaction is one of the major objectives of airline companies. It is the most important to satisfy the customers for the future growth of the business. This is one of the major parts of marketing activities of the company. To satisfy the customers is an important part in marketing concepts. Consumer satisfaction is one of the main aims of marketing strategy because it affects the future buying behavior of the consumer, profitability and shareholders value of the company (Kotler Armstrong, 2004). The satisfaction determinants can be determined by gap model. Figure 2: Gap model (Source: Blogger, 2009) The customers of the Qantas airlines are satisfied with the services of the company such as service quality and pricing: Service Quality: Service quality is the main important element in the marketing of any product and service. Quality of service is an important strategy for the success or growth of any business. Because it can impact on the buying and consumption behavior of the consumers (Ranaweera Prabhu, 2003). Consumers of Qantas airline perceive quality of the services very good because they are getting more than their needs, wants and expectations. Because of excess in their requirements, consumers of Qantas Airline are showing higher satisfaction towards the company. The result of customer satisfaction is that Qantas Airline is the second largest airline in the Australia. Company is providing airlines services at the same time, and delivering the best services to its customers. The company provides premium air travels services across the world. The best part of the services of this company is that it is providing different range of services to various customers. The company has different trav el services for regional areas and international markets. Along with this, company has provided safety and protection facilities to its customers. Company provides a finest service named take a trip service with the air travel software services. This is the best way of the company to provide quality in service and to get profit in the airline industry (Zeithaml, Bithner Gremler, 2009). Price: Price can be defined as what the consumers pay in exchange of products and services. Companies set the prices for the products and services near about the prices of competitors so that they can get competitive advantage from their products. Customers always choose those services which are easily available and the cheapest in the cost. It can be said that price is an important part of marketing strategies because it influences the demand of the particular product and services. Good price with service quality impacts consumers and they always try to avail those services (Lovelock, Wirtz, 2007). Qantas airlines provide best services of air travel with low prices. The company uses cost plus margin strategy for the pricing of services. Along with this, company is also using competitive pricing methods so that it could provide best services with affordable rates compared to competitors such as Virgin Blue. Company offers low travel rates for new destinations to the travelers. If there is any problem with the travelling, company has a policy to refund the payment to the customers. Refund of the payments provides flexibility to the customers. Sometimes Qantas provides discounts to its regular customers. Fares of the Qantas are decided by the market where demand is near to supply. Along with this, Qantas uses lowest possible prices strategy for Jetstar and Jetstar international (Law Leung, 2000). Employee Attitude: There is very significant role of employee attitude in the satisfaction level. Employee attitude includes ability and willingness of employees to help attention and win the customers trust in the airline industry. The attitude factor is very crucial in the low cost airline industry for the safety and comfort of the passengers. Customers in the plane always expect that company have employees with positive attitude and good nature that will ensure of the safety in the flight. It is very important that how the employees of the airline company are providing services to increase customer satisfaction (Babbar Koufteros, 2008). The quality of the services by the employees in Qantas is based on the ability of its human resources. There are many customers who have direct contacts with the employees of Qantas. The company has provided uniform to the staff for the different appearance. Thus, it is obvious that employees attitude is the most important part for influencing customers in airline services. Accuracy of services: Right and proper accuracy in services is the most important part of customer satisfaction. It is very important part to influence the customers. In low cost airline, this factor is important because customers chose those services which provide best services in fewer prices. A bit delay in flight can be the cause of dissatisfaction among the customers (Bhattacharya Singh, 2008). Inaccurate service can be disappointing the customers. Qantas provides accurate and better services with low cost that is why it is famous among the people of the country. This airline is perceived good for its better service not for its prices. The front stage facilities and back stage facilities of the airline company are very good. That is the reason that the Qantas airline is second largest airline of Australia (Roades Waguespack, 2008). Physical evidence: Physical evidence of the airline can be one of the causes for customer satisfaction. The elements in the physical evidence in the airline industry include basic factor such as safety, comfort, and aircraft. To lead in the airline industry, Qantas is providing best services to the customers. The company will lead success if the expectations of customers for physical evidence will meet with the services of Airline Company. Qantas always use new aircrafts which affect the customer satisfaction. Customers of Qantas have higher service expectations with the airline and company always try to meet with those expectations (Lawton, 2002). Service Recovery Strategy Plan of Qantas Airline Service recovery refers to the actions and precautions taken by any company in the case of failure in service in order to change customers perception and dissatisfaction. The management of the company should support the service recovery plan because bad and poor service can be the cause of customer dissatisfaction (Lewis McCann, 2004). Failure in services leads negative impact on the customers and rating company lower compared to competitors. There are number of strategies by which a company can get a successful service recovery on critical incidents. A successful recovery depends upon the actions, decision making powers and the judgment of employees. Service recover process is also very important for the airline industries. An effective service recovery plan will control the service failures, minimize customer dissatisfaction and strengthen the bonding and relationship with customers (La Kandampully, 2004). Qantas airline is very famous airline among the customers. Customers perceive this airline as cost effective and affordable for travelling. Customers have lots of expectations from the airline regarding service quality, prices, employees support etc and company always tries to fulfill the expectations of the customers. But there can be failure in the services of the company. The failure in the services can be the cause of customer dissatisfaction so there is a need of service recovery plan in the company. An appropriate service recovery plan will help the company to minimize customer dissatisfaction and improve the quality of services (Greatbrook, 2016). The service recovery plan can include some functions such as: First of all, company needs to identify that where is the problem in service. The major problem in the service can lead of customer dissatisfaction. It involves identifying the problem and solving it quickly. There can be various problems such as problem in quality, price, behavior of employees, aircraft services, booking services, website error etc. Company needs to identify those problems so that it could provide better service quality to the customers (Coye, 2004). After identification of problem, the main focus of company should be on the recovery of the problem. Company should find out the actual and real problem or cause of the problem. By identifying the cause of problem, company will be able to deal with the factors which are creating problem. Website error can be the problem due to server failure and behavior of the employees cannot be good because of lack of motivation. Other reasons can be that lack of attention on the pricing and quality. It can create dissatisfaction among customers. By identifying reason of the problem, company can apply effective plan to reduce the problems (Cranage, 2004). Along with the identification of problem and cause behind the problem, company can offer the customers alternative options until the problem is not resolved. Alternative option can be so effective that customers will accept those options happily. By providing the options, the aim of the company should be the satisfaction of the customers. Company can adopt a strategy such as communicating with customers to address the problem. Communicating with customers will help the company to increase customer satisfaction. Communicating to customers includes providing feedback and explaining the reason behind the failure of service. Telling the reason of service failure will ensure the customers about the companys loyalty towards the customers. It will also ensure the customers about the actions taken by the company for the service recovery personally and professionally (Magnini Ford, 2004). Qantas should also provide regret for the failure of the service. An apology can increase the image of the company in front of the customers. Along with this, company can present the compensation such as tangible payment, discount, and vouchers in front of customers for increasing customer satisfaction (Baron Harris, 2003). Employees should be trained to overcome from the service failure because service recovery depends upon the actions, decision making powers and the judgment of employees. So it is important that company must have trained employees for the service recovery functions. Training of employees should include assuring customers who are facing problems in facilities and services, managing and giving revert the responses of customers while facing problems in services, empower and motivate the employees at the time of crisis, and focusing on employees satisfaction also along with the customer satisfaction. These training parts will help the company to recover the problems in services (Christopher, Payne Ballantyne, 2002). Qantas airlines can adopt the above plans of strategies for recovery from service problems and failures including effective training and communication with the customers, feedbacks and explanations regarding service failure. Along with this, an apology is the good option that company can adopt. Conclusion The report has been provided the descriptions of front stages and back stages functions of Qantas airlines in a blueprint. Along with this, this report has been presented the view of moments of truth of the airline company. From the above discussion, it has been analyzed that Qantas airways limited are one of the famous national airlines of Australia. The objective of the company is to operate as the best airline in the world and to be the low fare airline of the world. From the given blueprint, it has been analyzed that the company has managed the front and back stage functions very effectively. It has got high level of customer satisfaction. Further, in the part of moment of truth, it can be seen that company has increased its profit and growth in recent years. Along with this, there is the increment in the shares of the company compared to previous years. The customers of the Qantas airlines are satisfied with the services of the company. The elements of customers satisfaction are pricing, quality of services, employees behavior and accuracy of service. This airline is perceived well for its better service. The quality of the services by the employees in Qantas is based on the ability of its human resources. Regarding recovery from the failure of the service, a service recovery plan has been given in the report. The given points such as identify that where is the problem, identification of cause of the problem, communication to the customers, suggesting the alternative options and effective training of employees can be helpful for the company to increase the customers satisfaction. References Babbar, S., Koufteros, X., (2008), the human element in airline service quality: Contact personnel and customers, International Journal of operation production management, 28(9), 804-830. Baron, S. Harris. K., (2003), Services Marketing: Text and Cases (2nd), Houndmills: Palgrave. 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