Key Aspects of Marketing Services - Coursework Example

Marketing services Table of Contents Introduction 3 Background of the study 3 Rationale of the essay 3 Company profile of Air China 4 Discussion 4 Evaluate the quality of services with the help of appropriate pieces of academic literature 4 Measurement of service qualities of Air China and evaluation of customer perspectives through SERVQUAL model 8 Conclusion 14 References 15 Introduction Background of the study In today’s age, the airline industry is the largest and fastest growing industry. Due to which, it acted as a boon for the development of the tourism industry. However, due to rise in prices of the fuels of the airlines in the year 2008, the rate of customers declined that hindered the net income of the airlines as well. Due to which, the brand image and reliability of the air lines organization reduced that declined their position and competitive advantage in global perspectives as compared to many other rival players. Similar scenario is observed within the aviation industry of China. Due to extreme hike in fuel prices, Air China, one of the reputed flagship airline providers experienced the similar bitter incident of downfall. However, in order to amplify its position and competitive advantage, the organization of Air China implemented an agreement named open skies within US and China. This agreement proved effective for the organization of Air China thereby amplifying its efficiency and portfolio. Other than this, Air China also offered high concentration over their quality of services in order to amplify the range of customers and brand value in the market among others. By doing so, the prosperity and position of the organization of Air China enhanced to a significant extent that improved its competitive advantage and sustainability. Thus, it might be revealed that only best and improved customer service qualities might fascinate a wide range of customers and help to retain them for longer period of time (AirChina, 2014). Rationale of the essay The rationale of this essay is to explore and evaluate the ways by which, the organization of Air China measures customer service qualities. Along with this, this essay also measures the perception of the customers regarding the quality of services and their expectations about it with the help of five dimensional models named, SERVQUAL. Company profile of Air China Air China is established in the year 1988 with headquartered in the district of Shunyi of Beijing. However, in a very limited time span, Air China expanded its operations in more than 185 destinations with fleet size of 318. Other than this, by 2012, the organization of Air China carried almost 72 million passengers to varied destinations that amplified its market share and demand in the market among others (AirChina, 2014). Discussion Evaluate the quality of services with the help of appropriate pieces of academic literature The competitiveness and ranking is the only desire of most of the organizations, operating in service industry. This is because; is the level of competitiveness of an organization enhances then only, the position and profitability might get increased in long run. However, in order to accomplish that desire, the most essential requirement is effective quality of customer services. This is because; it is the service that helps to satisfy the requirements and demands of the customers to a significant extent. However, due to the fulfilment of the inner desires and requirements, the level of loyalty and trust of the customers over the organization or brand enhances thereby amplifying its reliability and uniqueness in the market among others. Therefore, keeping this fact in mind, the organization of Air China also tried to offer best customer services to its customers so as to satisfy their demand and desires. So that the level of loyalty and trust of the customers might remain over the organization of Air China, that may prove effective in amplifying its efficiency and brand image. But as customer service is entirely intangible in nature so it might be defined with the help of four characteristic features such as intangibility, heterogeneity, inseparability and perishable (Saunders, 2005, pp. 223-234). Intangibility: one of the aspects of customer service is intangibility. This means, it is a type of service, that may not be analysed, tasted, touched or evaluated prior purchasing it. Similarly, in order to improve the level of satisfaction of the customers, the organization of Air China desired to offer varied types of extra facilities such as pillows, earphones, cold snacks, extra leg room etc. However, all these premium customer services are offered by Air China in order to amplify its dependency within the minds of the customers that may help it to increase its market share and reputation in the market. Thus, all the above mentioned services might be measured only after availing it (Shanker, 2002, pp. 256-267). Heterogeneity: just the features of products operating in similar segment varied from one another, the qualities of service also vary, in order to create a distinctive image. Different service providers offer diverse quality of services to its target customers in order to satisfy them and amplify its popularity and market value (Hoffman & Bateson, 2010, pp. 332-334). For example: Air China offers free WiFi facilities to its customers flying from one destination to another in order to create a distinctive position and ranking in the market. Inseparability: in order to offer the services in accurate way, both the customers as well as the providers need to be present in the same place. Otherwise, neither the customers nor the provider might become successful in attaining effective quality of services. For example: if the customers do not avail the Air buses of Air China, then they may avail the opportunity of connecting WiFi in air. Perishable in nature: the service may not be stored for future purposes as they are perishable in nature. For example: if a customer desires to avail the services of cold snacks and extra added leg room facilities, then he or she needs to avail Air China. Keeping all these above mentioned factors in mind, an organization designs its services so as to attain maximum satisfaction from customers (Williams & Saunders, 2006, pp. 581-595). Other than this, as per Apte (2004), the quality of service is evaluated with the help of five different criteria’s such as tangibility, reliability, responsiveness, assurance, empathy (Apte, 2004, pp. 123-134). Tangibility: tangibility refers to comfort and cleanliness of the seats and toilets. In order to enhance the level of satisfaction of the customers, the service providing organization need to offer high concentration over safety and cleanliness of the seats and food items. Only then, the customer might get impressed and satisfied with the services that may improve their loyalty and confidence over the service provider. Due to these underlining reasons, the organization of Air China tried to offer fresh food items to its customers so as to retain their trust and assurance (AirChina, 2014). Reliability: the crews of the service provider need to be extremely talented and skilled in their professional tactics so as to create a distinctive image within the minds of the customers (Palmer, 2005, pp. 423-434). By doing so, it might prove effective in reducing the switchover costs of the customers that may increase their portfolio and image. For example: in order to increase the professional skills, the organization of Air China offered varied types of training programs to its crew members. Responsiveness: in order to maintain effective communication and greetings with the customers, the crew members are offered varied types of training programs by the organization of Air China. This is extremely essential for the service providers as such type of courtesy might prove effective for the organization in retaining the customers for long run among others. Assurance: it is the trust that the customers makes over the organization such as arrival and departure timings of the airlines. Along with this, effective communication skill of the crews is also extremely important in order to help the customers at any sort of discrepancies. Empathy: extensive ticket booking systems as well as tackling the complaints of the customers effectively. It is also essential for the service providing organizations to maintain an efficient ticket booking system such as online sites, make my trip.com, etc. Therefore, if, all these characteristics are present with in a service then, it would surely satisfy the inner desires and confidence of the customers. However, all these characteristics help a service providing organization to distinguish its services from others. Moreover, due to the creation of distinctive services such as WiFi services or extra added leg room facilities, cold snacks facilities by Air China helped it to attract a wide range of new customers, retain the older customers, improvement of corporate image, position, reliability and belief of the customers. However, due to improved and better distinct customer services, the rate of satisfaction of the customers enhanced that increased the profitability and brand value of the organization of Air China in the market among others. Thus, it might be stated that, it is the qualities of services of the service providing organization is entirely linked with the expectation of the customers. In this age of extensive competition and hike in the prices of the fares of airlines, it is the quality of services that attracts the customers. However, in order to amplify the quality of services, the organization of Air China tried to offer best customer services to the off-flight customers. By doing so, the organization of Air China tried to enhance the satisfaction and confidence of the customers thereby amplifying their retention ratio as compared to others. Apart from this, by handling the complaints of the customers in an efficient way, the organization of Air China tried to amplify the reliability and trust of the customers over the brand that may increase its foothold. Thus, due to the presentation of effective customer services, the organization of Air China became successful in creating a strong dominance in the market that attracted the customers towards it. Due to improvement in the number of customers, the market share as well as return on investment of the organization increased significantly among others. Hence, it might be clearly depicted that it is the service quality that enhances that expectation of the customers. This means, varied types of customised customer services are designed in order to satisfy the inner desires as stated by hygiene -motivators theory of Frederick Hertzberg. As per hygiene -motivators theory of Frederick Hertzberg, best quality of services need to be presented to the customers in order to satisfy their inner desires and motives. For example: best seating facilities, fresh foods, safety, security, effective communication etc for the customers so as to motivate them towards the service providing organizations. This means, if a service providing organization like Air China might become successful only if it offers best quality of customer services. Then only, the customers of varying age-groups and income groups might get interested towards the organization that may amplify its reputation and demand in the market among many other rival players. Hence, it might be stated that the services need to be offered at accurate time and in accurate way so that it might prove efficient for the customers. Only then, the customers might get satisfied with the service qualities and get attracted to it, in-spite of numerous substitute brands. Such type of customer loyalty might prove effective for a service providing organization to amplify its inner strengths and opportunities thereby reducing its threats of new entrants (Palmer, 2005, pp. 676-687). However, due to extreme popularity, the service providing organization might easily penetrate various developing as well as developed markets thereby amplifying its customer base and distinctiveness in the market. Measurement of service qualities of Air China and evaluation of customer perspectives through SERVQUAL model In order to amplify the competitiveness and sustainability in the market, the organization of Air China offered high attention over service qualities. This is because; it is the quality of service that acts as a medium in this age to attract or fascinate the customers towards a specific brand. Therefore, due to these reasons, the organization of Air China presented varied types of inventive customer services such as cold snacks, WiFi facilities, extra leg room facilities, enlarged seats etc for the customers. By doing so, the customers became satisfied and might get attracted towards the brand of Air China that may amplify its profitability and productivity in the market (AirChina, 2014). Other than this, presentation of efficient booking facilities to the customers also enhanced the loyalty and reliability of the customers that amplified its brand image and market share. As a result of which, the range of customers increased significantly in the flights of Air China as presented below: (Source: CAPA – Centre for Aviation & Innovata, 2012) However, due to the presence of excellent greeting as well as communication skills within the crew members of Air China proved extremely effective for the organization that amplified the range of customer bases as presented in the below graph: (Source: CAPA – Centre for Aviation and airline reports, 2013) However, as the rate of satisfaction rate of the customers increased their loyalty and trust also enhanced. Due to which, the flagship carrier became successful in expanding its number of domestic as well as international flights as presented below: (Source: CAPA – Centre for Aviation and airline reports, 2013) Air China passenger services financial and traffic summary: 2012 (Source: CAPA – Centre for Aviation and airline reports, 2013) Thus, from the above mentioned figures and graphs, it might be clearly analysed that the market share and brand value of the organization of Air China enhanced to a significant extent. However, this is mainly due to its efficient customer services that proved effective for the organization of Air China to amplify its demand and popularity in the market among many other rival players such as China Southern Airlines, China Eastern Airlines. Hence, it might be stated that, in-spite of high fare, the organization of Air China is preferred by maximum extent of the customers of varying income groups and cultures (AirChina, 2014). Although, the organization of Air China offers efficient customer services but its effectiveness might be evaluated by the perceptions of the customers through SERVQUAL model. As per the SERVQUAL model, the perceptions of the customers are highly influenced by five gaps: Gap1: difference among the expectation of the customers and management perceptions about the expectations. However, in order to analyse the expectations of the customers, the management need to evaluate their feedbacks. Other than this, in order to analyse the requirements and demands of the customers, the crews always tried to maintain effective communication with them (Havaldar, 2010, p. 26). By doing so, the organization of Air China became successful in fulfilling varied types of desires such as WiFi services, online air booking facilities (Parasurman & et.al. 1988, pp. 552-567). Gap2: difference in the perception of the management regarding customer expectations and to fulfil it into service quality specifications. The management of Air China, analysed the desire of the customers to attain easy procedure of booking facilities, the organization of Air China implemented its online sites. Due to which the satisfaction of the customers enhanced that amplified its brand image and sustainability to a significant extent among others. Gap3: actual difference among the services presented by the crews and the specifications presented by the management. If the customers are offered best customer services in terms of handling the complaints effectively through effective communications, then only the satisfaction rate of the customers might be enhanced (Kotler, 2002, p. 82). Gap4: difference between service delivery and the promises made by external communications in front of the customers. Due to this gap, the satisfaction and confidence rate of the customers reduces that declines the brand value and market share of the organization to a significant extent among many other rival players. However, in order to retain the promise of increasing its air flights, the organization of Air China introduced numerous domestic and international air flights (Damanpour, 1991, p. 91). Due to which, the number of customers increased that amplified its profit margin and net income. Moreover, due to the retention of the promises, the level of reliability and prosperity of the customers increased that increased its portfolio and market share. Gap5: difference between customer expectations and perceptions. However, due to the differences among the expectations and perceptions of the customers, the confidence and trust might not be retained. Therefore, in order to maintain the image and trust of the customers, the organization of Air China tried to offer best customer services such as better handling of the complaints of the customers. By doing so, the organization of Air China amplified its brand image and market value in the market among many other rival contenders. Thus, it might be analysed that the quality of services, might be measured with the help of SERVQUAL. By doing so, the expectations of customers might be analysed and may be fulfilled effectively thereby enhancing the brand value and portfolio of the organization of Air China. Conclusion Conclusively, it might be stated that sustainability and competitiveness might be attained only if best quality of services might be offered. Only then, the level of satisfaction of the customers might get enhanced that may improve the profit margin and efficiency of the organization in the market. So, the organization of Air China, offered high attention over its service qualities such as implementation of WiFi services, cold snacks, extra leg room facilities etc. By implementing these services, the organization of Air China, became successful in amplifying its customer bases and brand image in the market. In addition, the perception of the customers regarding the service quality of Air China might also be analysed with the help of SERVQUAL model. However, after analysing and evaluating the perceptions and expectations of the customers, the organization of Air China acted in that way and satisfied their level of satisfactions and confidences. Hence, it might be stated that best quality of services is the most essential requirement for the service providing organization of this age, in order o increase its prosperity and market share as compared to many other rival players. References AirChina, 2014. About us. [Online]Available at: www.airchina.com/ [Accessed on 7th May, 2014]. 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