CUSTOMER INTEGRATION AND MARKETING SUCCESS OF AIRLINES INDUSTRY IN PORTHARCOURT METROPOLIS
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CUSTOMER INTEGRATION AND MARKETING SUCCESS OF AIRLINES INDUSTRY IN PORTHARCOURT METROPOLIS
Abstract
This study focused on the customer integration and marketing success of the airline business in Port Harcourt. Three objectives were established: to determine the relationship between customer lack of motivation and the marketing success of the airline industry in Portharcourt,
to determine the relationship between coordination overhead and the marketing success of the airline industry in Portharcourt, and to determine the relationship between loss of knowhow and the marketing success of the airline industry in Portharcourt.
The study’s entire population consists of 75 Med-View Airlines and Arik Air employees. The researcher employed questionnaires to collect data.
The descriptive survey research design was used for this investigation. The acquired data was organised into tables and analysed using simple percentages and frequencies.
Chapter one
Introduction
1.1 Background of the Study
Customer integration is a notion for creating systems that facilitate customer orientation. The key notion is that the client is the primary source of the values that an organisation generates. Thus, processes must be built to incorporate the customer’s requirements into the supplier’s operations (Abramovici, 2004).
Companies succeed when they discover the demands of certain market groups and provide the products and services that meet those needs. The marketing function investigates the markets available to a firm and the demands of the members of those markets.
The airline business as a whole emerged in the mid-1920s, twenty years after the Wright Brothers’ flight at Kitty Hawk, when early commercial airlines carried only 6,000 people per year.
The sector has traditionally served as a positive (and occasionally negative) benchmark for advancements in marketing, customer service, and, more recently, relationship marketing.
Air travel has always been in the spotlight due to its public dimension and daring nature. Consider the innumerable horror stories that have been published about all the dreadful things that can happen to an airline passenger, as well as the huge advancements in marketing and service sectors that have resulted directly from this industry.
In its early days, the industry’s primary priorities were to strike the correct balance between supply and demand and to provide an exceptional service to the select customers who had the desire and financial means to fly inside and outside of their home continent.
After World War II, the airline industry had a phenomenal boom, not only because air travel for business was a rapidly rising sector, but also because the idea of travelling for fun and leisure was becoming increasingly appealing.
A growing number of national governments established airlines, while private airlines were launched in the United States (which later amalgamated to form even larger corporations).
Regardless, the airline industry’s success was built on operations, which included owning a sufficient number of planes and managing enough routes to serve large cities, as well as the development of “invisible” advancements like the computer reservations system (CRS).
In today’s competitive and globalised aviation sector, each firm’s client is one of its most valuable assets, which it must protect and increase in order to remain profitable. Many market studies stated that loyal clients contribute significantly to a company’s market share and profitability.
Without a doubt, loyal clients are the most important aspect for an organization’s long-term financial viability. Furthermore, converting indifferent customers into devoted ones and developing long-term relationships with clients is critical for corporate success.
To get a competitive advantage in the market, airlines must create and maintain client loyalty as a fundamental goal. As a result, retaining large consumers is an important goal that airline management must grasp in order to increase customer loyalty in the airline market.
Customer integration is intrinsically appropriate for services because many services could not be offered without the customer’s contribution and active engagement in the first place (Chervonnaya, 2003).
The total economic impact of customer integration is increasing as more traditionally manufacturing and goods-oriented organisations expand their business models and value propositions to include services (Dohmen, Kryvinska & Strauss, 2012).
Customer integration approaches include one or more common customer functions. These are referred to as client jobs. However, there has yet to be a rigorous examination of the adoption of specific customer roles by industry. It is widely acknowledged that consumer integration benefits businesses (Büttgen, 2009).
Other authors have reported unfavourable impacts (Enkel, Kausch, & Gassmann, 2005). When selecting whether and how to adopt customer integration, management must analyse the potential effects of specific customer roles on the company’s processes. This entails considering both the good and negative effects of customer integration (Büttgen, 2009).
Based on this background, the researcher wishes to analyse customer integration and marketing success of the airline business in Port Harcourt.
Statement of the Problem
Customer integration has a favourable impact on customer relationships as well as the efficiency and effectiveness of corporate processes. The literature emphasises three primary aspects that are positively improved by the integration of customers.
Cost reduction (Büttgen, 2009; Xue and Harker 2002), increased customer satisfaction (Auh et al. 2007), and increased market share (Herstatt and von Hippel, 1992).
While favourable aspects are frequently mentioned in the literature, there is little investigation into potential negative impacts. However, as Enkel et al. (2005) emphasised, it is critical for a corporation, particularly in the airline industry,
to recognise and manage the risks posed by consumer integration as much as feasible. The literature has identified three major difficulties that can occur in customer integration:
Lack of consumer motivation (Kurzmann and Reinecke, 2009), overhead coordination (Büttgen, 2009), and knowledge loss (Enkel et al., 2005)
objectives of The study
The primary goal of the research is to look into the customer integration and marketing success of the airline business in Port Harcourt. The precise aims are:
To determine the relationship between customer lack of motivation and the marketing success of the airline business in Port Harcourt.
To determine the relationship between coordination overhead and the marketing success of the aviation business in Port Harcourt.
The research question aims to investigate the correlation between loss of know-how and marketing performance in the Port Harcourt airline business.
The following research questions are developed to lead the study:
What is the relationship between a lack of consumer motivation and the marketing success of the aviation business in Port Harcourt?
What is the relationship between coordination overhead and airline marketing success in Port Harcourt?
What is the relationship between loss of know-how and marketing success in the Port Harcourt aviation industry?
Research Hypotheses
The following research theories are proposed:
H1: There is no association between lack of client motivation and the marketing success of the aviation business in Port Harcourt.
H2: There is no association between coordination overhead and the marketing success of the aviation business in Port Harcourt.
H3: There is no association between loss of knowhow and the marketing success of the airline business in Port Harcourt.
Significance of the Study
The report will be extremely useful to students, educators, the Ministry of Aviation, and policymakers. The study will provide valuable insights into the airline industry’s customer integration and marketing success.
The study will educate organisations, particularly on customer relationships. The study will also serve as a reference for other researchers who would venture on the relevant topic.
Scope of the Study
The scope of the study is customer integration and marketing success in the airline business. The investigation would be limited to the airline business in Port Harcourt.
Limitations of the study
Limitations and constraints are unavoidable when conducting this type of research. However, over the course of this investigation, the following limits were encountered.
Non-availability of sufficient resources (finance): A work of this sort is extremely financially demanding; money had to be spent at various phases of the research, and resources that could have aided the appropriate conduct of the study were not readily available.
Time factor: The amount of time spent on research is insufficient to extract the most useful information. However, I am hopeful that the small amount of information presented in this study will help to solve many larger problems.
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