Factors Affecting Customer Retention in the Airline Industry

Climis, Raghda

doi:10.7206/jmba.ce.2450-7814.182

Cited by 21 publications

(22 citation statements)

References 40 publications

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“…Hypothesis 4 also supports research from Climis (2016), where the higher the management commitment to passenger safety, the overall passengers will be satisfied with the aircraft they will use. The security and safety dimension can serve as an important predictor for measuring service quality, since once customers opt for aviation industry services, they recognize safety factors as critically important (Clemes et al, 2008).…”

Section: Resultssupporting

confidence: 63%

“…Many airlines have realized that improving sustainable quality services is a long-term investment that can generate higher profits, since creating, delivering, and maintaining better service quality than competitors will have an influence on customer satisfaction (Hussain et al, 2015). Customer satisfaction has now become the key to success for every organization as it turns out to be the standard of excellence and performance standard for every organization (Munusamy and Chelliah, 2011;Climis, 2016).…”

Section: Resultsmentioning

confidence: 99%

“…Safety is influenced by many elements such as management, operations, maintenance, environment, aircraft design, and air traffic control (Liou et al, 2007). Several studies have found the influence of airline safety on satisfaction (Atalik and Ozel, 2007;Johnson et al, 2006;Climis, 2016). Based on the description above, the next hypothesis to be addressed in this research is: H4: There is a positive influence of airline safety toward customer satisfaction Customer satisfaction toward Brand loyalty.…”

Section: Review Of Literaturementioning

confidence: 92%

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Customer satisfaction low cost carrier: stimulus and its consequences

Riorini

Widayati

2018

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Airline industries are currently faced with challenges to satisfy consumers in order to improve organizational performance. The purpose of this study is to analyze service quality, corporate image, price fairness, and airline safety as a stimulus of customer satisfaction and its impact on brand loyalty. Samples data of 350 Low Cost Carrier/LCC passengers in Indonesia were collected and purposive sampling technique was used to analyze the developed hypothesis. Further data is processed with Structural Equation Modeling technique. The results of the study found that the stimulus of customer satisfaction of LCC is service quality, corporate image, price fairness, and airline safety. Furthermore, customer satisfaction will provide consequences for airline brand loyalty. The study also found that corporate image is the strongest factor affecting customer satisfaction. For further research, it is suggested to add customer value as a stimulus of customer satisfaction.

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Section: Resultssupporting

confidence: 63%

Section: Resultsmentioning

confidence: 99%

Section: Review Of Literaturementioning

confidence: 92%

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Customer satisfaction low cost carrier: stimulus and its consequences

Riorini

Widayati

2018

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“…According to Climis (2017); McDougall and Levesque (2000) airlines should design appropriate marketing strategies that promote perceived value when purchasing services since delivering value to clients contributes directly to client satisfaction, which in turn will encourages client loyalty. In contrast, this research has found an insignificant relationship between perceived value and client loyalty.…”

Section: Discussionmentioning

confidence: 99%

The relationship between service quality, client satisfaction, perceived value and client loyalty: a case study of Fly Emirates

2020

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La lealtad del cliente es uno de los mayores desafíos para la industria de las aerolíneas. Por eso, los profesionales de marketing están buscando información sobre cómo desarrollar la lealtad del cliente. Este estudio explorará la relación entre la calidad del servicio, la satisfacción del cliente, el valor percibido y la lealtad del cliente en la industria aérea. El propósito de este estudio es desarrollar e implementar un método para que la aerolínea identifique atributos que aumentarán la lealtad del cliente. Unos 384 encuestados participan en este estudio y los cuestionarios se distribuyeron al azar entre los pasajeros que viajaban en Fly Emirates. En particular, un enfoque deductivo adaptado para recopilar información cuantitativa específica para aceptar o rechazar la hipótesis. El estudio actual aplica el modelo de ecuación estructural SEM-PLS para investigar la relación entre los constructos en el modelo propuesto. Este estudio encontró que la calidad del servicio tiene una relación positiva en la satisfacción de los pasajeros y la lealtad del cliente. Por otro lado tiene una relación negativa en el valor percibido y la lealtad del cliente. Los resultados de este estudio indicaron que la calidad del servicio y la satisfacción del pasajero son factores importantes que afectan a la lealtad del cliente. En conclusión, Fly Emirates debe ser capaz de comprender la importancia de la calidad del servicio y la satisfacción del pasajero para cumplir con la lealtad del cliente y mejorar la calidad del servicio que es más importante en la industria de las aerolíneas. Client loyalty is one of the biggest challenges for the airline industry and marketers are seeking information on how to build client loyalty. This study will explore the relationship between service quality, client satisfaction, perceived value and client loyalty in the airline industry. The purpose of this study is to develop and implement a method for airline to identify attributes that will increase client loyalty. 384 respondents participate in this study and questionnaires were distributed randomly to passengers traveling by Emirates. In particularly a deductive approach adapted to collect specific quantitative information to accept or reject the hypothesis. Current study applies Structural Equation Modeling SEM-PLS to investigate the relationship among the constructs in proposed model. This study found that service quality has appositive relationship on passengers’ satisfaction and client loyalty and negative relationship on perceived value and client loyalty. The results of this study indicated that service quality and passenger's satisfaction are important factors effect of client loyalty. In conclusion Emirates must be able to understand the importance of service quality and passenger's satisfaction to fulfill the client loyalty and improve the service quality that make most significant in airline industry.

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“…The relationship marketing (RM) literature has long recognized that relationship commitment (RC) as the core concept of nurturing long-term relational exchange in competitive services offerings (Tse,Wang, & Zhang, 2019;Climis, 2016;Shaikh, Karjaluoto, & Chinje, 2015). The highest level of relationship attachment between exchange partners is represented by relationship commitment, which entails exchange partners' interdependency on each other and that "customer loyalty is achieved" (Dwyer et al, 1987).…”

Section: Introductionmentioning

confidence: 99%

Influence of Price and Distributive Fairness on Micro Finance Customers’ Relationship Commitment: PLS-SEM Analysis

Islam

2019

IJSMS

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Bangladeshi Micro Finance Institution (MFI) sector is highly competitive in financial industry. Due to strong multifaceted competition customer drop out (exit/switching) is taking place. In fact, to achieve sustainability, MFIs need to reduce the dropout rate and to retain customer by developing relationship commitment (RC). Hence, the aim of the empirical study is to find out how the clients drop out from the MFI can be prevented through developing relationship commitment in the relational exchange context. The study focuses on the price fairness and distributive fairness as an antecedent of relationship commitment. The PLS-SEM technique is utilized for the analysis of data collected from 409 consumers of different MFI’s of Bangladesh. The study employed survey method for getting responses from MFI consumers about price fairness, distributive fairness and relationship commitment related statement. The study explores that price fairness, distributive fairness, has significant effect on relationship commitment. Hence, the findings of this model may be applied by the policy makers and the practitioners as an approach to enhance relationship commitment in the MFI’s in developing economy context.

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Factors Affecting Customer Retention in the Airline Industry

Cited by 21 publications

References 40 publications

Customer satisfaction low cost carrier: stimulus and its consequences

Customer satisfaction low cost carrier: stimulus and its consequences

The relationship between service quality, client satisfaction, perceived value and client loyalty: a case study of Fly Emirates

Influence of Price and Distributive Fairness on Micro Finance Customers’ Relationship Commitment: PLS-SEM Analysis

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