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HC2112 Services Marketing And Relationship Marketing

tag 0 Download 0 Pages / 0 Words tag 21-06-2022
  • Course Code: HC2112
  • University: Holmes Institute
    icon is not sponsored or endorsed by this college or university

  • Country: Australia


Virgin Blue Airlines that became Virgin Australia Airlines Pty Ltd is second-largest Australia's airline. after Qantas and the largest airline fleet to use the 'Virgin' brand. Co-founded by British businessperson Richard Branson with Brett Godfrey of Virgin Group the organization is based in Bowen Hill, Brisbane. Started with only two Airline on a single route, the company found it’s pace with the fall of Ansett Australia in September 2001. Currently the Airline is directly serving 29 cities in Australia from hubs in Melbourne, Sydney and Brisbane.

Front stage employees of a service organization are those employees who experience frequent service encounter with the customers. Front stage employees follow a strict code of conduct as they are in direct contact with the customers. These employees are of paramount importance for a service organization because they take timely action in case of service failure. The service encounters of the front stage employees create the perceived customer value of the service on the mind of customers and hence play a vital role on customer relationship management and customer retention strategy of a service organization (Srisaeng, Baxter and Wild 2014).

The Virgin Australian airlines have front stage employees, which include the ground staffs at the airport and the entire cabin crew of the flights who make the travel experience joyous for the customers.

Ground staffs of Virgin Australian airlines are the first point of contact for the customers. They help customers to check-in at airport using self-check-in kiosks, help customers to gather the boarding pass and check-in their luggage and answer all quarries of customers till they board the flight. Feedback from customers is taken for service improvement.

The cabin crew of Virgin airlines makes the in-flight experience worth remembering for customers as soon as they board the flight. The cabin crews greet the customers and guide them to their seats. In Virgin Australian Airlines, flight attendants are well trained to provide safety directions to on-board passengers like fastening of seat belts, emergency landing etc. The flight attendants serve foods to the customers (Srisaeng 2015). A special food menu is offered to business class customers and they get the privilege to enjoy the premium hospitability of the cabin crews. All members of crew are dedicated to customer satisfaction with the help of tangible components of the service in the flight like Wi-Fi services, comfortable seats with extra leg space and in-flight entertainment systems and they do full justice to the service encounter with the customers from the time they board the flight until the flight is landed (Rothaermel 2015).

The back-stage employees of a service organization are those employees who are not in direct contact with the customers. For Virgin Australian airlines, these employees are those who work at the back office to operate the airlines. The back-stage employees include the marketing team, the finance team and the operations team of the airline. The Customer service plan is well drafted in Virgin Airlines by the back-stage team (Hussain, Al Nasser and Hussain 2015). It is ensured that customers reach their destinations safely and timely, lowest fares are provided to them, delay for departure is informed and in case of cancellation, trained members of the airline arrange alternative bookings. The marketing team of the airlines constantly organizes promotional events of the airlines. Back-stage team designs a special customer loyalty program. Customers can earn loyalty membership for frequently travelling with the airline and these Velocity Members can redeem the points earned for their loyalty with facilities like shopping and dining (Homsombat, Lei and Fu 2014).

Service industry need empowerment to give productive and efficient service to the clients for that it is necessary for organization to invest on clients, meaning it is necessary for the organization to provide necessary amenities to the clients that they can benefit on. Use of IT, use of IT means significant, exclusive and effective mode of business and service to the clients. Recruitment and Training, it is important to have the correct mindset and skills to help the customers for that recruiting the right people and training them to posses the right skill help the organization to deliver the right service. Pay for performance it is important for the organization to recognize and value the people in the organization, as they are the first point of contact and further will help the business grow. Rewarding employees not only help the organization to build repo with the employees but also help build moral and character within the employee (Choi and Ritchie 2014).

Significance of the service provided by the airline leaves a tremendous mark on the client and thus helps the organization to retain business (Chant 2015). The interaction with the customer by service provider in the airline industry where employees represent the company to the clients is termed as service encounter. It plays a major role as customers come in direct contact with the employee of the airline organization. The customers pay a lot of time and resource for the service provided by the airline company and staff presentation of Airline Company is tangible factor in the industry thus is the major factor as they influence the satisfaction level of the customer (Branson 2014). 

Managerial implication plays a vital role in the pivotal in any business. Airline being huge industry need managers in every steps. Managerial implications is the practical use of the and /or information made for making practical decisions say for e.g., how much to invest, whether to go ahead with a venture, which distribution system to use, or how to allocate the firm's budget in terms of  development and research, promotion and advertising, and market research.  It is important for the manager to monitor and recognize the employee to get the best result in the service industry (Bamber et al. 2013). There is basically three-core service encounter for manager in Aviation industry namely pre-core service encounter, core service encounter and post-core service encounter as distinct periods within a service experience. The manager needs to regulate the correct business module to help the employee serve the client in the best mean possible. Manager not only helps the employees but also help the clients to get their desired expectation any inconvenience faced by the clients is escalated to the manager that is than resolved with uttermost priority (Baer 2015). Managers hold the important aspects of the entire industry from finance to marketing from HR to Front office and it is important that someone with proper knowledge of the process be put on as manager as it will establish the right bond with the customer. Manager will also help the employees by training and guiding them. If the client has some issue with the service, the client can give the manager feedback to upgrade the service or help rectify the issue. Manager in this industry have a major part to play and it is important to have the right skill for the job.


Baer, H., 2015. Al Gore and the Climate Reality Project Down Under: The Up Market of the Climate Movement. Practicing Anthropology, 37(1), pp.10-14.

Bamber, G.J., Gittell, J.H., Kochan, T.A. and Von Nordenflycht, A., 2013. Up in the air: How airlines can improve performance by engaging their employees. Cornell University Press.

Branson, R., 2014. The Virgin Way: Everything i Know about Leadership. Penguin.

Chant, D., 2015. Planning small and mediumsized airports for flexibility and future growth. Journal of Airport Management, 9(3), pp.223-231.

Choi, A.S. and Ritchie, B.W., 2014. Willingness to pay for flying carbon neutral in Australia: an exploratory study of offsetter profiles. Journal of Sustainable Tourism, 22(8), pp.1236-1256.

Homsombat, W., Lei, Z. and Fu, X., 2014. Competitive effects of the airlines-within-airlines strategy–Pricing and route entry patterns. Transportation Research Part E: Logistics and Transportation Review, 63, pp.1-16.

Hussain, R., Al Nasser, A. and Hussain, Y.K., 2015. Service quality and customer satisfaction of a UAE-based airline: An empirical investigation. Journal of Air Transport Management, 42, pp.167-175.

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

Srisaeng, P., 2015. Utilizing advanced modelling approaches for forecasting air travel demand: a case study of Australia’s domestic low cost carriers.

Srisaeng, P., Baxter, G.S. and Wild, G., 2014. The evolution of low cost carriers in Australia. Aviation, 18(4), pp.203-216.

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