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1. introduce the business 2. Direction of study 3. Reference to why the study is important B.


Part A 


Airline industry has gained an importance while sustaining the profit and gaining market share in today’s fierce competitive environment. New ways and techniques are adapted in order to manage optimize customer loyalty while managing the customer relationship service. Cathay Pacific is a profitable airline company that is basically registered in Hong Kong. The company employs more than 20,000 staff while the major issue is been reported. Customer Relationship Management is the key issue that is discussed while it is important to apply marketing strategy to consider the solutions that Cathay Pacific needs to focus in the near future. Cathay Pacific mainly handles several customer complaints on the base level while the multiple channels are not emphasized and used by the company. There are number of complaints that the customer may feel while engaging and reflecting on booking and travelling concern. It is important for an organization to solve these issues with the aim of serving customers and building a strong relationship with the customer. 

The study reflects the customer relationship management as the key issue that the company lacks while building a strong connection with the partners and customers. The global airline that is initiated by Cathay Pacific has established a global focus on network and connection with large base customer service. The study is important as CRM initiative development plans are necessary to be carried by the company while managing and empowering the complex view that favors high return and initiatives for Cathay Pacific. It is significant that an organization should differ themselves while comparing the standards and services from the competitors. The fast follower approach should be appreciated with the response of initiative development that needs to be addressed effectively while building customer relationship management (Yoo & Bai, 2013). A consumer-centric approach has to be focused which is clearly missing in Cathay Pacific. A study is carried out with specific method of conducting a survey of passenger who are using the airline and the impact of the study is detailed effectively. The key issue is addressed while addressing the secondary data collection issues. The primary issue is customer relationship management and the other issues such as customer segmentation and organizational design and management are highlighted in the study effectively. These problems need to be solved by Cathay Pacific. Airlines need to focus on recognizing the customer need and target the value0based services that can help in making decisions for a greater insight.   

Part B 

Literature review 

Customer relationship management 

According to Azza, (2014), customer Relationship management engages development of the long term relationship with company’s customers and users. Eventually it is important that an organization should use CRM which is the centric strategy that is used by modern industries. The traditional marketing strategies cannot be focused for a long term period thereby it is important that the four marketing mix elements should enhance the customer knowledge while using the database effectively. This helps to manage and engage an organization to focus on the customer-supplier relationship. Focusing on place, time and challenges that an organization would face, customer relationship management should be effectively addressed in an organization. The CRM model is majorly characterized with elements of customer knowledge management. To attain an organization’s goal, it is important to manage and practice CRM while creating the databases and collecting a detailed personal data of customers. Eichorn, (2018) argues that effective CRM steps involve application of customer information with knowledge management. Mutual benefits are exchanged while using this method. To provide a customer oriented view, there are marketing efforts that play a significant role for achieving customer loyalty. The modern criticism that is observed in the CRM method is about difficulty in achieving success for organization as expected. Rababah, Mohd & Ibrahim, (2010) agrees that there are several organization who misinterpret the strategies, while only 30% of the organizations are really satisfied while using CRM strategy effectively. The results are focused while developing certain ideas of change in the organization with relatively low cost and acceptance of customer relationship management. There are several organizations that will utilize effective strategies that enhance the CRM assistance  while using latest technologies and concepts for development purpose. Azza, (2014) argues that around 50% of the organizations do not use Customer Relationship Management strategy appropriately (Fayerman, 2002). Effective utilization of concepts and strategies will enhance information technology while following customer needs and targeting the customers for achieving customer loyalty.


There are certain strategies that an organization can use while implementing customer relationship management. Customers these days are specific about the choice they make and thereby an organization does offer several products with different variations and marketing needs (Yuen & Chan, 2010). Customer perspective at this end becomes specific while constantly focusing on marketing needs and preference of customers. With the help of knowledge management, the goal is to constantly improve the level of customer satisfaction and engage in customer’s need with changing marketing needs scenario. Organizations should quickly adapt and allow changing marketing needs. A knowledge management pyramid is extensively used in order to define the business process and to explain how to achieve customer knowledge management. At times there is a criticism that is not associated with the relevant technology an organization achieves. Yueh, Lee & Barnes, (2010) states that an online customer knowledge management is a good choice where the categories of information about customer is detailed with knowledge for customers and information about what customers need. The purchasing history and customers needs are very well associated while improving the products and services in an efficient manner. The knowledge about recognizing the product and services is obtained in order to have a better future development of strategies. Ascertaining the win-win situation, an organization needs to understand and collect information about customers needs and recognizing consumer behavior with the help of technological advancement. Thereby it is important that customer-supplier relationship should be a two way approach that is the communication process leads to a mutual benefit for both. This will boost the opportunities and the supplier would collect required information while providing tailor customized products and services. It is thereby important to recognize the profitable situation and connect with the potential customers in order to suggest the basic procedure and concepts of customer-supplier relationship. 

However, the process of CRM includes interaction management, high and quality interaction between suppliers and customers and exchange of communication channels for mutual benefits. Rahimi & Kozak, (2017) opines that there an output of qualitative market research that complete the customer knowledge and develops a targeted approach of considering to achieve the goal of the company with long term relationship. Customer-supplier relationship is build by airline industries which is an economic exchange process that does not benefit the society. There are arguments about the relationship life cycle which seems that social components of needs, reliance, commitment, respect and trust are not always stagnant, there is a change that is observed with customer choice every now and then thereby at times it is difficult to predict the needs and maintain customer-supplier relationships (Greenberg, 2001). 

Customer segmentation       

According to Ascarza, (2017) the airline industry is a competitive industry which is argued and discussed while continuous change in the demand of customers and getting ahead in the industry with several challenges and issues. More information about customer is collected with relevant data that shows the growing trend of astronomical rate. Customer segmentation generally is based with customer behavior which is an underlying segmentation that is generally focusing on purpose of trip and not on customer age or other factors. The reason of travel is mentioned when the data is collected and this enhances the level of affluence while gaining information about the leisure trips, travel trip and other business examples. Airline industry thus need to focus on the reason of travel for passengers. It is thereby suggested that different travelers will look for different services that need to be concentrated with closer look towards the demand of customers. 



However, it is important that business travelers generally book the tickers to the departure date with ticket flexibility services. The airlines can majorly take advantage with significant features that it can provide to travelers (Balaji, 2015). It is important to segment the market while analyzing the need of the travelers. The benefits and the customer price sensitivity should be taken care by the airline company in order to restrict the fares and refund with convenience. Rahimi & Kozak, (2017) argues that restricted fares are specifically designed in order to book the ticket in advance but these are non-refundable. These are the lowest fares that are designed in order to meet the price sensitivity issues (Nyadzayo & Khajehzadeh, 2016). Customer segment consist of the additional features with the level of amenities and the price sensitivity concept (Clarke, 2010). With the help of different segments, an organization can decide price and work on merchandising opportunities to be provided to travelers with travel purpose or business purpose. The two customer segments are business travelers and leisure travelers (Chen & Hu, 2013). 

Organizational design 

Suleiman, (2012) argues that Organizational design is a dysfunctional aspect that includes work flow, systems, procedures and structures. An organization needs to realign the major feature that the business needs to achieve in order to fit the purpose and goal of the business. The new plans and changes are made accordingly with the change in the organizational design. The process is effective while analyzing the business and improving the technical side of the business. The design process leads to an effective change in the organizational flow with significant improvement that takes place with profitable measures and internal operations of the business. This is a holistic approach and satisfies the organization’s life. Ganiyu, Uche & Adeoti, (2012) argues that the airline industry should enhance its activities while focusing on change of the organizations design. The organization change differs with positive impact such as excellent customer service, reduced operating costs, increased profitability, and culture of commitment among employees, clear strategy of managing business and improved efficiency of cycle time (Barlow & Moller, 2008). 

Gursoy & Swanger, (2007) argues that a transformation model is used by the company in order to enhance and understand the functions of the business with comprehensive assessment. Vahdati, Abdolmanafi & Sarlak, (2014) argues that a change in organizational design leads to improvements in the business with several aspects of organizing and aligning the business goal and improvement in achieving the goals. Employees have a better idea when the organizational design is reframed with transformational model. Thereby strategic planning process enhances the development process and considers redesigning the structure with effective parameters and communication strategies. Chi & Gursoy, (2009) argues that the change in the design process includes the desired outcomes, case of change, and allocation of resources, participation, parameters of change and communication strategies. Airlines need to instill the basic mentality of the employees to empower them and to achieve a complete view of clear articulation and customer service in the CRM strategy (Wright & Riebe, 2010). Organizational design should be improved with effective change in the training and development of employees, designing new task, building the team with relationship and rewarding employees as per the established nature of managing the system (Krystallis & Chrysochou, 2014). Performance system is enhanced and managed when an organization redesigns the structure that require effective response from managers and team members. 

Part C 


The two research methods are adapted in order to provide data that gives information about Cathay Pacific. The qualitative and quantitative research methods are focused in the study. The survey method and the secondary data collection method are imperative and are used to focus on the findings and discuss the issues in data collection. An airline passenger satisfaction survey is provided to passengers with a questionnaire that describes the important of customer relationship management. The questionnaires are provided to 50 respondents who are selected randomly. There are close ended questions that basically satisfies an organization with several questions. The survey takes 10 minutes to be completed and the passenger satisfaction rate is then measured effectively. There were several issues while conducting the survey such as focusing on the age group of passengers who travel. It was moreover a major tendency to provide the questionnaire to the age group of 30 to 40 years old. This was a prediction but was not necessary to be included. The passenger’s choice and passenger satisfaction rate was measured with several questions that include the gender, age group, making decisions to travel while using specific airline, better conditions of the flight, in flight services, ground services, personal preference, aircraft preference, etc (Bagram & Khan, 2012). These are few questions that were provided to the passengers while there were options that were provided in the questionnaire. It was then important to focus on the basic needs of passengers which had to be written with a comment that represents the customer satisfaction rate. An important criteria about how often does the passenger fly, price of the tickets and other facilities provided by the airline were described. The feedback of the passenger was expected in the survey that represents the customers need and its importance with selected and planning trip of passengers. Passenger satisfaction rate is measured with the help of the questionnaire. The survey helped to gain information about what customers prefer and the treatment and services they are provided in the premium pricing system. The questionnaire was provided to random passengers while selecting random sampling method. The findings and the results are discussed. As reflected in the research, secondary data collection method is helpful to gain an insight of how to focus on customer relationship management (Leroi-Werelds, 2014). 

The secondary data was collected with the help of several publications, journals, books and articles from the newspaper. This generally focused the importance of the views of authors and the researchers for customer relationship management, organizational design and customer segment with its importance in airline industry (Awara & Anyadighibe, 2014). From the secondary data collection method, there were several issues such as the data cannot be assured with reliability, the data cannot be used as valid information lacks in the research. There were assumptions and limitations for the research that recognized the importance of primary data collection method. The secondary data collection method enhanced the research while providing detail about customer relationship management and its importance in the airline industry. Airlines need to focus on services that mentally engage employees to work for better results and value based approaches are focused that guide the investment decisions with a greater impact on needs of high-value customers. There are CRM initiative development programs that differentiate the competitive airlines and the acceptance of investing for high return of services that is expected with the desires and needs of customers (Soliman, 2011). The organizational design is focused on instilling the design that best suits and organization and customers while providing effective customer service. A consumer centric approach is appreciated with relationship management and airlines should be positioned in a way to acquire the basic values that develop high value for customers. Through effective customer analytics, the implementation of customer relationship management would enhance and support with effective technologies. CRM program is initiated with operational efficiency while a long term planning is essential for growth and development purpose. The significance of CRM is understood with the bottom lines while providing effective customer segmentation and focusing on simplistic segmentation models. These are largely driven while concentrating similar services that drive competitive differentiation. It is important for Cathay Pacific to gain information about customer needs, current complaints, airline customer satisfaction surveys, customer focus group research, competitive analytics, employee anecdotes and customer behavior. Customer self service programs and initiatives have identified with quick wins that would allow the company to reduce the relative measure on low implementation cost. Self-service improve the travel experience that enable travel experience while improve reduced waiting time (Barney & Delwyn, 2007). It is important that an organization should focus on level of commitment towards customers while there are different perspectives and product satisfaction criteria that an organization should understand and work accordingly to satisfy customers effectively (Kumar, Dalla & Ganesh, 2013). 

Part D 


The methodology presents the customer relationship management issue with an intrinsic concept to be followed by Cathay Pacific. The three issues such as customer segment, customer relationship management and organizational design are presented. From the questionnaire survey, 40% passengers were not satisfied with the customer service and the self-service. It is important to interact with customers while analyzing customer needs and focusing on customer satisfaction rate. Cathay Pacific should build long term relationships that enhance competitive advantage for the company and builds a strong relationship between supplier-customer. Examining relationships with dealers and channels will engage in customer relationship management. Customer relationship management is a process that engage and managed information effectively about customers and providing effective services to enhance customer loyalty (Rababah, Mohd & Ibrahim, 2010). However, it is important that loyal customers are provided amenities with several benefits. There are partnering relationship management that deepens the arrangement between channel members and key suppliers. Furthermore, high value customers majorly demand treatments for their status. Airline industry have used frequent programs that provide incentives and upgrade the services effectively. 

The research study enhances the comparison of perceptions and expectations of customers of Cathay Pacific. Customer expect benefits and amenities as premium price method suggest that loyal customers expect service that is responsive and schedule benefits. The survey provides information that customers are not satisfied while the base rate exceeds the expectation of employees. Thereby passenger satisfaction survey was measured in order to gain response of Cathay Pacific. To evaluate and focus on travel experience, airline industry should significantly know the areas of improvements. The purpose of the survey was satisfied effectively while gaining customer benefits, organizational design and travel experience of customers with Cathay Pacific. A significant increase in the areas of improvement such as customer relationship management, organizational design and customer segmentation is important and is investigated with the feedback that is received by passengers. Organizational design will enhance the structure of an organization thereby it should be well-presented. A loyal customer is satisfied with services, while it stays longer accepting services and providing a word-of-mouth to other people. The benefits that the customers receive include premium price, amenities, reduced cost fare, etc. The level of customer satisfaction is low when discussed with the survey method that was conducted while investigating the passenger satisfaction rate.


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