AN ANALYSIS ON THE IMPACTS OF AIRLINE’S LOYALTY PROGRAMS ON THE PASSENGERS’ TRUST, LOYALTY AND RELATIONSHIP COUNTINITY EFFECT

Abstract

Firms operating in the civil aviation industry have been employing Frequent Flyer Programs (FFP) in order to use sales strategies aimed at individuals identifying their current customer base and to reduce the impact of the competition. With these programs, airlines are able to build better relationships with their customers. As an element of relationship marketing, frequent flyer programs are at the center of marketing strategies of the airlines as they offer competitive advantage. This study investigates the customer loyalty programs employed by the national airlines in order to define the relationship between frequent flyer programs and customer loyalty. It is important for airlines which aim to build long-term relationships with their customers to be informed about how their loyalty programs are perceived by their customers. Nevertheless, it is of utmost importance for airlines to gather information about the willingness of the customer to pursue their relationship with the airline, the trust they place in the company and loyalty in order for them to apply a successful program. The research involved a survey submitted to the customers of airlines in line with the above mentioned purposes. Date obtained was statistically analyzed and hypotheses were developed accordingly. The results of the analysis defined the extent of the customers’ willingness to further loyalty, trust and their relationship with the company and it was found that the willingness to further the relationship, loyalty and perceived trust are directly proportional and significantly correlated.