Section B-Project Proposal Jim Man Sze 107101980

T9

Section B – Project Proposal

Jim Man Sze

107101980

T9

1
Section B-Project Proposal Jim Man Sze 107101980
T9

The professional project topic is Effect of customer satisfaction and customer

loyalty on airline industry in Hong Kong - A case study of Cathay Pacific.

Rationale for chosen topic area.

Based on the results of the A part of the self-analysis. It will help me deeply
understand my personality, learning style and team role. It is truly reflecting my
personality. As I am a good listener, I concern people feeling and listen the
customer needs and wants clearly; and empathy the customer which have an
encounter bad situation. It shows that I'm a person which is suitable for any work-
related customer service. Also, I know the important factors that affect customer
satisfaction and loyalty, in order to provide good service for the customers. I will
choose customer service for my future career, especially in the airline industry.
This is the main reason why I choosing customer service area in my professional
project.

The aims and overall objective are:

Does the customer satisfaction affect on customer loyalty?

Identify variables affect the customer satisfaction and customer loyalty.

Find out airline industry how customer satisfaction affects on customer loyalty.

2
Section B-Project Proposal Jim Man Sze 107101980
T9

Literature review

I found that there are many previous studies which are linkage investigation of
customer satisfaction and customer loyalty.

Customer satisfaction

Customer satisfaction is a complex constructs, it is not easy to measure. Therefore,

there are many factors that affect the customers’ satisfactions which include
customer expectation, price, brand, service quality etc. The customer satisfaction is
a feeling which is based on the customer's service experience and it can affect
customer decision making , if the service or product can not satisfy the customer
needs or wants, they won't purchase again and told his/her friends or family
members do not buy the company product or services. Customer satisfaction is a
measure of how products and services supplied by a company meet or surpass
customer expectation. There are three possibilities of meeting customer
expectations:

-When service experience is better than expected, customer delighted

-When service experience is as expected, customer satisfied

-When service experience is less than expected, customer dissatisfied.

Identify the relationship between the performance of the various attributes and
customer satisfaction and delight. Attributes will be maintaining satisfaction while
others will be creating customer delights. Satisfaction-maintaining attributes
should be maintained at their current levels or at level no less as good as the
competitors. Delight-creating attributes are attributes of a product or services that
are not expected and may not be in common services. Experiencing them create

3
Section B-Project Proposal Jim Man Sze 107101980
T9

delight in the customer. Companies must strive to discover or create such attributes
and offer them when economically feasible to high-value, targeted customers.

Therefore, customer satisfaction can affect the customer loyalty and increased
profitability of the company.

Customer loyalty

There are considerable variation in the terms used to describe customer loyalty,
they are: refers to a customer’s commitment or attachment to a brand, store,
manufacturer, service provider or other entity based on favorable attitudes and
behavior responses, such as repeat purchases. It is the result of an organization
creating a benefit for a customer so that they will maintain or increase their
purchases from the organization. The customer becomes and advocate for the
organization, without incentive. Loyalty is generally characterized as equality and
mutual cooperation. Also, it leads to increasing revenue. Loyalty can be attained,
but the organization has to work at it, continuously, and it will not be possible with
all customers. Customer loyalty is based in a win-win relationship because both the
firm and its customers attain benefits. Brand loyalty is a behavioral response to an
attitude toward a brand. In addition, there are five components that influence
customer loyalty in different ways:

-Customer satisfaction is the post purchase evaluation that results from a

comparison between those pre-purchase expectations and actual performance.

-Emotional bonding is the positive brand affect, which is an affinity with the brand,
or they have a company attachment, which means they like the company.

4
Section B-Project Proposal Jim Man Sze 107101980
T9

- Trust is the willingness of the customer to rely on the brand or an organization. It

indicates the customers have strong belief that the marketer is reliable and has
integrity.

-Choice reduction & habit, customer have a natural tendency to reduce choices to a
manageable set. Customer loyalty could be created from habits that are cultivated
from the accumulated experiences with a brand or and organization.

-Company history, customer’s initial or regular experience with a product may be

quite positive.

Attitudinal and behavioral loyalty combines to then affect the degree of customer
commitment and loyalty to products and organizations.

5
 Section B-Project Proposal Jim Man Sze 107101980
T9

Professional Project Schedule

Date Tasks Remarks

28-Jan Submission of Project Proposal Submit your soft-copy by email

Btw 14-18 Feb 4th meeting-review Section A, discuss Section B outline

20-Feb Submission of Section B outline Submit your soft-copy by email

Btw 21-25 Feb 5th meeting-Section B

7-Mar Submission of Section A+B (draft) Submit your soft-copy by email

Btw 14-18 Mar 6th meeting

28-Mar Submission of Section A+B (2nd draft) Submit your soft-copy by email

5-Apr Submission of final version Submit your soft-copy by email

8-Apr Submission of project Submit your final project to office.