CUSTOMER COLLABORATION STRATEGY AND MARKETING SUCCESS OF AIRLINE INDUSTRY IN PORT HARCOURT
This Research Proposal is aimed at examining the relationship between customer collaboration strategy and marketing success of the airline industry in Port Harcourt.
CHAPTER ONE
INTRODUCTION
- Background to the Study
Competition in the service industry has intensified over the last two decades and organizations including the aviation sector have responded by fundamentally restructuring their organizations. In this context, the quest for a more efficient and effective service collaborative strategy between delivery firms and customers has become a central topic among academics as well as industry practitioners (Brown & Ulijn, 2004). It’s to be noted that, customer collaboration strategy is the result of the comparison that customers make between their expectations about service and their perception of the way the service has been performed or to be performed (Gerson, 1993). However, efficient customer collaboration strategy measurement has been considered as the most reliable feedback, providing clients’ preferences and experiences in an effective, direct, meaningful and objective way for marketing success. The principal benefit of air transport services operating in various nations of the world can be summarized by the fact that they provide a vital social and economic link between peoples, countries, and cultures. The air transport sector, not only impacts an economy in terms of its direct, indirect and induced contribution to employment but also serves as a strategic catalyst, enhancing business efficiency and productivity by providing easier access to suppliers and customers (Airports Council International, 2004). By opening up new markets for international travel, the sector is also considered to be a major driver of a nation’s development. Air transportation is an important aspect of economic development. It represents one of the yardsticks for gauging development. The aviation industry all over the world is credited for a significant influence in terms of development even in the face of airline mishaps that ravage the industry.
The airline industry of the twenty-first-century industries is changing from the firm-level to the customer level (Kumar & Petersen, 2013). Competing with traditional methods has become increasingly challenging and firms need to adjust their marketing strategies to customer-level organizations to win competitions and gain market success (Lamberti & Noci, 2009). With this evolution, companies have to reconsider their marketing strategies to succeed in the competitive environment and to maximize their profitability with the use of customer collaboration strategy (Hoyer et al., 2010). Customers are now demanding customized and personalized services experience to feel unique and stand out from the crowd, so marketing has changed its focus by creating an inclusive platform were the consumers become part of the production process (Joshi and Sharma, 2004).
According to this conception, the main business is in the interaction point of the customer and the company rather than the value chain (Vargo & Lusch, 2008) and all the contributors in the collaboration process function as value co-creators which achieve new offers through the integration of resources. Therefore, a customer collaboration strategy is assumed as an approach to increase value for customers and firms (Flint, 2006). Another role that customers can play in gaining marketing success is that of contributors to their satisfaction and the ultimate quality of the services they receive. Customers may not care that they have increased the productivity of the organization through their participation, but they probably do care a great deal about whether their needs are fulfilled. Effective customer participation can increase the likelihood that needs are met and that the benefits the customer is seeking are attained. This is particularly apparent for services such as the aviation sector amongst others where the service outcome is highly dependent on customer participation. In these cases, the customer is an integral part of the service and unless he/she performs his/her role effectively, the desired service outcome is not possible. Recognizing this, many airline industries now get involved in teaching customers to use the information they provide.
It is the aim of this paper therefore, to find the relationships between customer collaboration strategy and marketing success of the airline industry. Many studies have been conducted within and outside Nigeria examining customer collaboration strategy and marketing success in different settings and perspectives. For example, the healthcare industry (Yesilada & Direktor, 2010). The hotel industry (Dedeogu & Demirer, 2015) retail settings (Anselemsson & Johanssn, 2014), tourism industry (Debata & Patnaik, 2015; Al-Tit & Nakhleh, 2014), the banking industry (Malik, 2012), as well as the food industry (Simeone & Scrarpato, 2015). The results of these studies have confirmed the significance of relationships between these constructs. To the best of our knowledge and from the review of empirical literature it appears that there is a paucity of research on the relationship of customer collaboration strategy and marketing success of airlines in the Port Harcourt. Against this background, this study seeks to holistically assess the relationship of customer collaboration strategy on the marketing success of the airline industry in Port Harcourt and to proffer growth policy implications for the management of airlines in Port Harcourt.
- Statement of the Problem
Air transport in Nigeria has been growing about the Gross National Product (GNP) as it accounts for a large part of transport expenditure in the economy (Oyekanmi, 2013). The share of freight movement on a tonne per kilometer is small compared to other modes; airlines carry high value, perishable goods and provide emergency services that make them an important part of the total transport system. Its transport system helps to improve quality of life by broadening people’s leisure and cultural experiences with a wider choice of holiday destinations around the world and an affordable means to visit distant friends and relatives. Effective Customer Collaboration strategy has been classified as one of the fundamental keys to the growth of any business organization because no business can survive without the marketing or sales of its products or services. The pressing problem that gave rise to this study is the fact that in today’s world, customers are more sensitive and demanding than ever, especially in the area of services. They always want to get the best value for their money. If they do not get reliable and friendly service, they will likely switch providers, all in the bid to maximize their benefits. The nature of the airline industry business has to do with trust between them and their clients. In this case, marketing success in the airline industry business can be measured in terms of the standards on which airline transactions are based.
Over the years the airline industry in Nigeria has been unable to grow, expand and be strong enough to attract more Nigerians to travel by air, and this has contributed to excess capacity (or performance below capacity) that leads to huge economic losses in terms of potential turnover of air travelers not captured as passengers by the airlines (Bankole, 2015).
With all the identified issues the managers of the airline industry in Port Harcourt must be equipped with strategic customer collaboration techniques to enable them to sustain and increase the growth of sales and be competitive in their industry that is densely saturated with competitors. It is to this effect that the researcher proposes a customer collaboration strategy as a means towards solving the malady of the marketing success of the airline industry. Based on several preliminary interviews with consumers, by Otokiti and Awodun (2006) it was revealed that the marketing success of the airline industry is affected by, profitability, sales growth, and trends. Thus, this research will examine the factors that contribute to the marketing success of the airline industry among consumers in Port-Harcourt.
Aim and Objectives of the Study
This study aims to examine the relationship between customer collaboration strategy and marketing success of the airline industry in Port Harcourt. However, the specific objectives to:
- Examine the relationship between customer interactions affects the marketing success of the airline industry in Port Harcourt.
- Examine the relationship between customer engagement influence the marketing success of the airline industry in Port Harcourt.
Research Questions
Emanating from the objectives of the study, the followings research questions were raised;
- What is the relationship between customer engagement and marketing success of the airline industry in Port Harcourt?
- What is the relationship between customer interaction affect the marketing success of the airline industry in Port Harcourt?
CONCEPTUAL FRAMEWORK
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Figure 1.1 Conceptual framework of the relationship between customer collaboration strategy and marketing success of the airline industry in Port Harcourt.
Source: Nwokah & Maclayton (2006), Hendricks & Singhal (1997), Kreuzbauer and Malter (2005), Koutroulou and Tsourgiannis (2011).
- Research Hypotheses
The following null hypothesis was formulated for the study
HO1: There is no significant relationship between customer engagement and sales growth of the airline industry in Port Harcourt.
HO2: There is no significant relationship between customer engagement and profitability of the airline industry in Port Harcourt.
HO3: There is no significant relationship between customer interaction and sales growth of the airline industry in Port Harcourt.
HO4: There is no significant relationship between customer interaction and the profitability of the airline industry in Port Harcourt.
Significance of the Study
Practical Significance
The research work will be beneficial to travelers and customers of aviation industry services and provide solutions concerning ways in which they can get to their target customers and consumers with the use of effective customer collaboration strategy.
Theoretical Significance
This research work will also be beneficial to those that are in an academic environment such as, lecturers, students studying marketing as a profession, and also interested scholars. Which in time to come, this work might be of use for future study.
- Scope of the Study
The scope of the study was strictly defined by the research topic: customer collaboration strategy and marketing success of the airline industry in Port Harcourt. This study shows the content, geographical and where the study was conducted as well as the unit of analysis on which the research work is applied which is the airline industry.
Subject Scope: The study is domiciled in consumer behaviour.
Content Scope: This study focuses on the relationship between customer collaboration strategy and market success of the airline industry in Port Harcourt.
Geographical Scope: This research work is carried out in Port Harcourt.
Level/Unit of Analysis: This study is interested in the micro-level/unit of analysis. The data that was used to conclude the course of this study is to be gotten from airline firms. The convenience sampling technique is to be used to draw a total of 100 sample elements to serve as the study of population that is to be administered questionnaires to fill at their convenience.
- Limitations of the Study: The limitations of the study can be addressed under the following headings such as;
- Dimensions of Variable: The researcher has decided to limit herself to two dimensions and measures on her variables of the study, thereby making it a limitation on the study.
- The Level of Bias: Research is a scientific process, which entails that every activity must be systematically and objectively done with little or no form of bias. Conversely, the nature of human beings is such that in almost everything he or she does, there is always an iota of bias in it. It is on this premise that the findings/result of some studies are not correct or most times not accurate.
- Area of Research: This research work is strictly limited to Port Harcourt. Therefore, the result of this research work cannot be generalized to other states in the federation.
- Measurement and Data Collection: This can also be a problem for the objective of this research work. Most times to get back questionnaires given to respondents is difficult, thereby leading to a waste of resources (the research instrument). Lack of corporation by some respondents to supply answers to probing questions in the questionnaire is also a barrier in the study. A poor choice in choosing a statistical tool can serve as a better barrier.
Definition of Terms
Customer: A customer is an individual or company that purchases goods or services.
Customer collaboration strategy: It refers to ways an organization uses customer feedback to benefit its business, products, and services.
Customer interaction: It is the customers expressing their preferences so that marketers or companies can produce more relevant information.
Customer engagement: It is a business communication between a customer and an organization through various channels.
Marketing success: It is defined as when a company identifies the needs of particular market segments and offer the products and services that satisfy those needs.
Sales growth: The increase in a company’s sales over a particular period, usually given as a percentage.
Profitability: is the primary goal of all business ventures which is measured with income and expenses. Profitability is defined as the ability of a given investment to earn a return from its use.
- Organization of Study
The study was organized in five chapters;
Chapter one comprises the introduction which deals with the background of the study, profile of the organization under study, problem statement, objectives of the study, research questions, significance of the study, a summary of the method used, scope, limitation, and organization of the study.
Chapter two covers a literature review of previous and current research in the area of customer collaboration strategies and marketing success. Conceptual and theoretical frameworks are examined.
Chapter three presents the research methods. These include research design, sample size, the population of the study, sampling technique and definition of variables, model specification, identification and measurement of the research instrument, validity and reliability of research instrument.
Chapter four is for data analysis, presentation, and interpretation. Testing of hypothesis and the results are also presented in the chapter.
Chapter five covers the conclusion, recommendations, and suggestions for further study.
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