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The Impact of British Airways' Corporate Brand Name - Essay Example

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This essay discusses that both companies and consumers from the 21st century all have a high regard for corporate brands as these brand names have become one of the most remarkable developments that the business sector has embraced in the past years…
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The Impact of British Airways Corporate Brand Name
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The Impact of British Airways' Corporate Brand Name Introduction Both companies and consumers from the 21st century all have a high regard for corporate brands as these brand names have become one of the most remarkable developments that the business sector has embraced in the past years. As human beings who purchase goods and services to satisfy our needs, these brands play a significant role in our daily lives. Currently, these corporate brands are gaining a fast rising popularity in the business sector and are taking in all the benefits from various industries. A large number of individuals are now becoming aware and conscious of what corporate brands can bring into their lives, from assets to job opportunities to complete consumer satisfaction Van Riel and Van den Ban (2001) have stated that coming up with corporate brands is a long and challenging process which entails the preservation of a company’s name and reputation along with other important factors. This process is generally accomplished through the stakeholders making use of the particular corporate brand. A company can come up with their own brand by using a sign, character, figure, image or any representation of a concept that will recognize and distinguish their products and service when compared with other companies. To simply put it, the brand will put the company forward and allow the public to recognize them. Findings have confirmed that a potential customer will pay a large amount of money for a good, satisfactory brand while staying loyal to such brand (Shih 2009). Because of these actions, it is necessary most especially for companies and organizations to fully understand the role of brands as well as the consumers’ thoughts, feelings and behaviors toward it. Brand names along with the manners on how consumers act toward it have received a small deal of attention in previous studies. Identifying and implementing brand names play a very important role in any kind of business as companies, despite any challenges from competitors, can gain advantages in just by using the appropriate branding strategy. To avoid committing marketing and branding mistakes, a company along with its customers must be able to understand how important a brand name is and how it can positively or negatively affect consumer behavior. In previous studies, researchers only highlighted the significance of a company brand; however, over the recent years, the concept of a “corporate brand” was introduced to the business sector and studying such type of brands has revealed very important aspects in branding such as the cultural, social and economic factors. In his study, Shaw (2008) stated that corporate brands will play a more significant part for the business sector in the coming years. Previous studies have also shown that researchers of past have not emphasized the challenges that a company might possibly face when building a corporate brand as well as the noteworthy characteristics that a corporate brand has. Furthermore it has been shown that compared to product brands, corporate brands hold a wider range of choices, possibilities and opportunities. One example of a company that has taken on a corporate brand is the British Airways wherein their particular brand name allows consumers to recognize and identify this particular company from the rest. Their popular corporate brand also sends a message to present and potential customers that their organization can assure them of excellent services. On the other hand though, a number of individuals do not entirely approve of the huge importance that has been given towards brand names; they believe that branding is merely a “one-way process” that will only influence the impression of other individuals on a certain brand user who is very keen in establishing brand loyalty. Actually, this statement has been based on the fact that the public largely contributes to the labeling and identification of a brand image. In relation to powerful brand names in the United Kingdom, a large deal, if not, all consumers go for an airlines company that can assure them of convenient amenities and reliable customer services such as the British Airways. Because of their advanced communications and transportation network, these sophisticated infrastructures have helped the company gain popularity among its competitors. The British Airways consist of a large fleet size as well as an extensive scope of destinations and this only goes to show that many customers have a high level of regard and respect towards the respect to keep the company’s operations running in succession. Service guarantee and reassurance are exemplified through minor yet very significant operations such as sanitation, promptness and regularity of schedules and services, and even proper baggage handling. These are in fact a few of the common British values that have helped build the uniqueness and personality of the British Airways. When international customers recognize such values, they will be guaranteed and reassured that their money has been paid for a convenient and comfortable travel experience (Barnard 2007). Objectives This study primarily has three objectives. First is to determine the elements necessary for consumers to retain their company loyalty towards the British Airways. Next objective is to find out whether marketing promotions can affect the thoughts and behaviors of consumers toward a company’s brand name. Finally this paper aims to study the influence of public relations when developing a powerful corporate brand. For the accomplishment of such objectives, a number of previous studies were reviewed in this paper regarding consumers and how their loyalty to a particular brand is created along with the important issues that may possibly affect such behavior, for example, one’s personal needs and wants, his financial status or his expectations toward the brand and the product that it represents. Several studies that were reviewed presented information on how the British Airways implemented their marketing promotions and branding techniques in the past years, and how the public responded to it. This paper’s objectives can only be accomplished when these studies are reviewed, and proposals as well as assumptions can be extracted from it. First of all, a consumer’s brand loyalty can be affected by several factors that influence his/her physical, mental and emotional state. According to Parsons (2002), the largest contributing factors to brand loyalty are “brand trust”, “repeat purchase behavior”, “customers’ satisfaction”, and “customers’ perceived value”. People who have been given the task of coming up with brands seek an effective approach that will develop positive expectations from the public and allow them to think that this particular brand can offer them a distinct or unique experience. This is the main reason why brands should be demonstrated in a remarkable concept when being advertised as this will represent the capability of the company of delivering satisfactory products and services. Integrated marketing, therefore, is applied when a company and its employees have acquainted themselves with their brand. Operations for advertising and promotions can become a success in convincing potential customers to pay a large amount of money for a product of cheap, inexpensive material. Furthermore, in a competitive market, companies have made use advertising and promotions to help the public in identifying which brands are gaining a good reputation and which ones are becoming less well-liked (Auh 2009). Review of Related Literature Branding and Consumer Loyalty Brand names are primarily used by many companies and service providers for an easy recognition and identification of their goods and services. Through brand names, the production of a company can become consistent to their promised service as well as the high standards that their buyers expect to meet. Consumers often depend on brand names to be able to tell which products are of good quality and which ones are not; this way, they can spend their well-earned money on satisfactory goods and services (Boulding 1999). In previous studies, it has been shown that brand names played a significant role in “selection decisions”, when consumers try to choose which products will suit them best. Results showed that the respondents considered brand name as more important than price when they had to rank these product attributes. To simply put it, brand names have become a very important tool for consumers when selecting products of their personal needs and wants. In the United Kingdom, a study was carried among a number of travelers who were waiting for their flights in the local airport. A questionnaire was handed out wherein they had to provide information in relation to their choice of flying systems. With a rating of 1 to 5, they were also asked if there was a possibility for them to fly with particular airlines. Findings from this study showed that a large percentage of the respondents preferred the airline company that offered a high quality experience at an average price. Therefore, this implies that they had a high regard for both a good quality and an affordable price. Through these results, Johnston (2003) was able to conclude that a reliable service available at a regular operating expense is an important factor for a company to be able to build a strong brand, and will then have a positive impact on how consumers will behave toward their company and brand. Interestingly, though, it was also evident that many respondents also preferred the airline company that offered a very low price for their services, despite the fact that their services were only of average standards without any extra benefits and perks like other airline companies. This is due to the fact that the respondents who had this preference had a high regard for the value of a low price; furthermore, they believed that they will only stay loyal to one company if their services continue to become easily available at a low price. Through the findings of this study, it was implied that consumer behavior is positively affected by his experiences before and after trying out the product or service. Furthermore, the price of a product or service is a large determinant of whether a consumer can stay loyal to the company or not (Johnston 2003). Marketing Promotions and its Effects on Brand Building and Consumer Behaviour At any given consumer market, managing and preserving brands through marketing strategies are highly important to keep up with the competition. To be able to successfully create and manage brands as well as to come up with an operational marketing strategy, it is essential for one company to be able to become fully aware and understand how consumers can act and behave towards the competitive consumer market such as how their purchase decisions are made or how much they can remember in one brand commercial. When it comes to understanding consumer behavior, several theories and suggestions have been associated on how a company should be able to make their decisions based on their buyers’ behavior. With this process comes the introduction of the company’s latest products favorably at the right time, along with the division of their company’s branding work and the administration of their brand. Significantly, branding is a very important element in telling whether a product can be successful or not in this competitive consumer market. Furthermore, it will mold the public’s way of thinking regarding the actual company that is delivering the brand. The first step for a company to take on marketing promotions is to share and give out a whole deal of information about their particular brand. This promotion can take place through the ads in television, websites, printed news or other forms of media. These are called line promotions as the company, or the advertiser in this case, pays a certain amount of money to an ad agency so their brand can be promoted and advertised. Other forms of promotion such as product endorsements and contributions to the funding of certain events are indirectly done in an understated way so the public will not be able to tell that these strategies are actually being used to promote a certain brand. Nonetheless, all of these marketing promotions are used to improve the way on how the public will value a product or service (Kalyaman & Shively 1998). Over the years, the British Airways have designed a communications system that will allow the consistent and effective delivery of their brand along with its promised services. In coming up with a successful international marketing approach in relation to the industry of international air transport, a very important thing to accomplish is the knowledge and awareness on how the local and foreign environment works along with the current state of their politics, economy and culture. When this process has been accomplished, the company can be fully and freely allowed to make their decisions on how to deliver their products successfully (Fournier 1998). In a case study that was carried out by Superbrands in 2003, the British Airways made a huge effort in using their marketing strategies to promote their brand through their latest advertising campaigns. In this promotion, two important elements were highlighted- a low price for an improved quality of airline services. Through this, the British Airways exemplifies a company that believed in making their good quality services available for a low price will encourage their current consumers to stay loyal to their brand. On the other hand, though, the issue of marketing promotions has been questionable among a number of skeptics as these individuals know and believe that these campaigns will soon have a negative effect on both the company and the consumer. It has also been found out that more consumers repeatedly purchased a product without being affected or influenced by an advertising campaign. Therefore (Harden 2009) also asserts that using these marketing promotions will be proven ineffective. It has also been argued that marketing promotions will negatively influence the way that consumers will behave towards a particular brand when customers make a purchase only because of an “advantageous” price. A marketing promotion will only become truly successful when it reaches out to the public and establishes strong and deep relations. Lindstrom (2005) says that “sensory branding” has become a powerful method in moving towards the creation of consumer loyalty towards a particular. This is due to the fact that sensory branding focuses more on how consumers emotionally respond to a brand instead of the conventional transactions-based approach. Lindstrom (2005) also believes that a full understanding and comprehension of any object or matter in this world can only be achieved through the use of our senses. When applying the sensory approach, a company is given the chance to better explore their goods and services and to seek new and better opportunities. When these are all accomplished, an improvement in the consumer’s brand loyalty is guaranteed as sensory branding can establish a strong relationship and further enhance an existing one. Publicity and Brand Building Karolefski (2007) asserts that establishing and preserving public relations is a huge step in creating a strong brand. Currently, the public and consumers are bombarded, and often confused, with countless advertising campaigns which might have possibly built a barrier of doubt and distrust between them and the companies. Wreden (2005) states that the very common strategy to frequently advertise brands might perhaps not be the most effective way in getting the public to buy a particular brand. Nowadays, the “customer economy” is eventually replacing the traditional mass economy. This customer economy pay more attention to a relation and interaction that is strongly based on customers; through this approach, the public is reassured and guaranteed that they can trust a particular company that will, in turn, provide them with their services that have been publicized. Through previous studies, it has also been found out that a “word-to-mouth” basis can certainly support the building and preservation of a particular brand as this simple strategy is able to get a strong emotional response from the public. According to Johnston (2003), the British Airways made an attempt in the year 2000 to make a large deal of improvements in the overall design and system of their airlines as well as in their marketing promotions. However, these efforts turned out to be a “public relations disaster”. On the other hand, though, many studies imply that British Airways can still pave the way for the road to recovery especially if they come generate an effective marketing strategy as well as strengthen their relations with their consumers and the public in general. To fully understand and communicate with one’s customers is to create a sense of trust and reliability, thus leading to a higher sales growth as well as a stronger and more powerful brand. Factors Influencing Consumers' Buying Behaviour Many customers do not just make a purchase decision in an instant as several factors can affect them psychologically, socially and culturally. McCollough (2002) states that a large percentage of purchase decisions are influenced by the 3 F’s known as fun, feeling and fantasy. Several findings have shown that individuals often go for brands that can be of great use to them as well as a source of pleasure and delight as well. It has also been found out that public goods and services including the airlines companies have a higher tendency to become more influenced by social elements. McCullough (2002) therefore points out that effective branding is necessary for public goods. Social and cultural elements are significant factors that influence a person’s needs, wants, thoughts and beliefs; through these elements, the purchase decisions of this individual can also be affected. In a group of individuals that have gone through similar experiences in life and have thus shared the same beliefs and perceptions, they may be loyal to a particular brand which other groups may find undesirable or unacceptable (Kahren, 2008). Also, people who have the same level of financial status and educational attainment often share the same behavior towards purchases. An individual’s current lifestyle as well as personal experiences in relation to age, family, school and career can be considered as determinants of his or her behavior towards consumption and purchases. Alternatively, Maslow has proposed a theory suggesting that a “hierarchy of needs” is present among all individuals that can greatly influence how a consumer can act and behave towards a particular brand. In 1943, Abraham Maslow’s hierarchy of needs was known as a theory in psychology; later, however, he extended this idea to include his personal observations of the curiosity that humans naturally have. For this theory, Maslow studied and focused on what he would call as excellent and commendable people including Albert Einstein, Frederick Douglass and Eleanor Roosevelt; he believed that there was no point in looking at neurotic or mentally ill people as “writing a study of crippled, immature and unhealthy specimens can yield only a cripple psychology and philosophy” (Maslow 1954). This theory of hierarchical needs have been used by marketers as one of the primary theories in for understanding the motives of consumers for their actions. If companies design products that meet consumers’ needs, it is likely that consumers will choose more often those products than those of other competitors, thus increasing sales. Such rationale makes this model important to the business industry. To simply put it, a company should achieve a complete satisfaction of its consumer’s needs in order for their consumers to stay loyal to their brand (Maslow, 1994). Maslow’s theory can be illustrated through a pyramid that highlights all hierarchical needs, with the topmost point as the most essential need to be satisfied. This theory can prove itself useful to the British Airways as this concept of Maslow suggests that a company can be achieve customer satisfaction when they fully know and understand their customers’ most important needs. Empirical Studies To be able to acquire customers and improve sales growth in the tourism industry, a company often prefers using marketing promotions to show that their quality services are available for a good price. These days, it has become a challenge for many service providers to acquire more customers through “transactional marketing”. It is highly recommended that a tourist firm should make use of an effective marketing strategy that focuses on public relations to be able to retain more customers. Moisescu (2007) believes that an essential key in keeping customers loyal to and satisfied with a company is through a strong relationship that is preserved and maintained through time. This study therefore focuses on how tourists can become and stay loyal to one company considering their perception on the company’s services and prices (Loveman 1998). The collection of data was focused on finding information on several package tours that were controlled by Spanish tour operators in the Caribbean, South America and Central America. Out of all the tours, 47.9% were purchased though the use of direct price discounts while a larger 63.4% were obtained by means of promotions. Surveys were conducted in several public places where there was a higher of chance of coming across people who have done travel tours in the past. Through the results collected, the loyalty of tourists is greatly affected by the tour operator. Furthermore, quality was seen to have the greatest effect on loyalty with the price coming in at second. Results have also shown that price promotions cannot directly affect and influence the tourist’s loyalty towards the tour operator. It has therefore been concluded that high quality products are an essential key to acquire and retain customers. A trip that has been effectively designed by tour operators to offer satisfactory experiences at a regular price will increase customer satisfaction. This also implies that there is a possibility for the satisfied consumers to travel once again with the operator as well make recommendations to their loved ones (Bolton 1998). When customers are retained by a tour operator, this will mean that their company will receive more advantages and benefits. On the other hand, price and marketing promotions have not been proven to completely affect on consumers who want to find satisfactory bargains. This goes to show that tour operators must be able to come up with price promotions that can reach out to their consumers’ needs and preferences. Model of Buying Behavior Companies and organizations have always been encouraged to use a careful evaluation of buying behavior as a basis for their marketing strategies (Woodside 2003). Using a model for buying behavior can prove itself useful to the marketer in studying the available information about their market as well as in pointing out targets for their marketing strategies, the information needed by their present and potential consumers and the factors that will influence their purchase decisions. Companies should closely study and analyze what consumers look for in a product or service and how, when and where to achieve this. Often, in making purchase decisions, buyers undergo the Consumer Buying Decision Process and the first stage in this process is the problem recognition wherein the buyer realizes and becomes aware of his need. For example, in the case of the British Airways, they can make their consumers realize that they are in need of their global airlines services by stimulating them through product information such as commercials or advertising campaigns indicating that the public needs a new way of fun, relaxation and entertainment and can only be achieved by through an airlines experience. Second stage is the information search where buyers will seek information on airlines companies and their services, whether with the use of their memory or information from other sources such as friends, family members and public sources. When the buyer successfully obtains information regarding an airlines experience, he or she will be left with a number of alternatives which he or she will soon evaluate and will eventually lead to the purchase decision. When the buyer finally decides on purchasing the services of British Airways, he or she will eventually undergo the post evaluation stage where the whole experience will be assessed if it was satisfactory or not. Conclusion Consumers often make use of brand names to be able to identify which goods and services can offer them a good quality experience. At present, a large number of consumers believe that quality and price are two of the most significant factors in making them loyal and trustful towards one brand. Marketing strategies and promotions can directly make an impact on an individual’s brand preference as advertising campaigns primarily send out messages to the public and can affect anyone’s view and perception of the company behind the brand. In the past years, the British Airways placed their efforts on both marketing promotions and advertising campaigns to be able to show the public that they do value these two most important elements- a high-quality service for an affordable price. This is due to the British Airways’ belief that they can only retain their customers through lower costs and enhanced services. However, aside from a successful marketing strategy, it is also very important to establish a strong and deep connection with one’s customer as this relationship reassures the customer that the values of trust and commitment are realized within the company and its consumers. A full understanding and comprehension of one’s consumers as well as a strong interaction are significant factors that will contribute to building a strong corporate brand. Therefore the British Airways believes that through their efforts in improving their services and public relations, as a company, they can restore the power and might that they once had as one of the strongest corporate brands in the United Kingdom. References Barnard, B 2007, The Journal of Commerce Online Berry , LL 1983, Relationship Marketing (L. Berry & L. Shostack, Eds.) (Emerging Perspectives on Services Marketing, pp. 25-8). Bolton, R 1998, 'A dynamic model of the duration of the customer’s relationship with a continuous service provider: The role of satisfaction' Marketing Science, vol. 17, no.1, pp. 45-65.  Boulding, W 1999, 'The quality double whammy', Marketing Science, vol. 18, no.4, pp. 463-84.   Fournier, SM 1998 ‘Consumers and their brands: Developing relationship theory in consumer research’, Journal of Consumer Research, vol. 24, no. 4, pp. 343-373.   Horton, R 1984, Buyer behaviour. A decision-making approach. OH: Charles E. Merrill Publishing Company.   Jacoby, J, Szybillo, G and Busato-Schach, J 1977, 'Information acquisition behaviour in brand choice situations'. Journal of Consumer Research, 3 March, pp. 209-216.  Johnston, M 2003, 'Frequent flier alert', Money, vol. 5 December. Kalyanam, K and Shively TS 1998, 'Estimating irregular pricing effects: a. stochastic spline regression approach', Journal of Marketing Research, vol. 35, no. 1, pp. 16–29. Karolefski, J 1998, The rising tide of technomarketing. American Book Company. Lindstrom, M 2005, Brand sense: Sensory secrets behind the stuff we buy. Kogan Page Ltd. Loveman, G 1998, 'Employee satisfaction, customer loyalty, and financial performance', Journal of Service Research, Vol. 1 No.1, pp. 18-31 Martins, M 1994, "Perceived price fairness: a new look at an old construct", Advances in Consumer Research, Vol. 21 pp.75-8 Maslow, A 1994, The Farther Reaches of Human Nature, The Viking Press Maslow, A 1954. Motivation and Personality. Harper, New York, p. 236. McCollough, MA 2000, 'The effect of perceived justice and attributions regarding service failure and recovery on post-recovery customer satisfaction and service quality attitudes', Journal of Hospitality & Tourism Research, vol. 24, no. 4.   Parsons, A 2002, ‘Brand choice in gift-giving: recipient influence’, Journal of Product & Brand Management, vol. 11, no. 4, pp. 237-249.   Schnaars, S 1997, Marketing Strategy, The Free Press  Van Riel, C and Van den Ban, A 2001, 'The added value of corporate logos. An empirical study' European Journal of Marketing, vol. 35, pp. 428–440.   Walle, AH 1996, `Tourism and the Internet: Opportunities for direct marketing', Journal of Travel Research, vol. 35, no. 1, pp. 72-77.   Woodside, AG 2003, ‘middle-range theory construction of the dynamics of organizational marketing-buying behavior’, Journal of Business & Industrial Marketing, vol. 18, no. 4/5, pp. 309-335. Wreden, N 2005, ProfitBrand: How to increase the profitability, accountability and sustainability of brands. London: Kogan Page. Read More
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