Marketing implications of loyalty programs on customer relationship management within the airline industry

Karamata, Ema; Chroneos-Krasavac, Biljana; Soldić-Aleksić, Jasna

doi:10.5937/markt1701030k

Cited by 2 publications

(8 citation statements)

References 3 publications

(3 reference statements)

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“…The most studied area in the field of marketing is the customer satisfaction due to its important and direct linkage with economic aspects of business operation, the companies' objectives and profitability; moreover, the customer satisfaction is the benchmark of quality standard and excellence for any organization (Karamata et al, 2017;Oyewole et al, 2007). According to Heymann (2019), Law (2017), andFecikova (2004), the slogan "the customer is always right" is a true depiction of customers' importance and priority.…”

Section: Customer Satisfactionmentioning

confidence: 99%

“…According to Parasuraman et al (1985), if customers received the expected quality of services, they would be satisfied, if they received more than they expected, they would be delighted and would perceive the service quality as excellent. Like in other service sectors, the significance of customer satisfaction is extracted from the usually accepted philosophy that the satisfied customer is a source of successful future economic aspects and profitable business (Karamata et al, 2017;Shin & Elliott, 2001). According to previous literature regarding customer satisfaction in the airline industry, such as Lee (2017), Cronin and Taylor (1992), and Fornell et al (1996, repeat purchase intentions are strongly connected with the customer satisfaction.…”

Section: Service Quality In the Airline Industry And Customer Satisfactionmentioning

confidence: 99%

“…Research has shown that customers can accept failures but will not forgive the organization when they cannot fix the problem within the stipulated time period (Mattila, 2006). According to Karamata et al (2017), and Davidow (2003), speedy reply to the customer complaint cuts back the amount of negative word of mouth in perspective of the airline industry. Thus, service quality improvement depends on the ability of the airline to regularly meet passenger needs and desires and address their complaints promptly (Dudek et al, 2019;Prentice et al, 2017).…”

Section: The Response Time Of Customer Handling and Customer Satisfactionmentioning

confidence: 99%

“…The new airlines have stepped in and competition has increased, but at the same time, service quality and customer satisfaction became an integral part of the airline industry (Dudek et al, 2019;Dennett et al, 2000;Vilkaite-Vaitone & Papsiene, 2016). According to Karamata et al (2017), Ostrowski et al (1993), and Lee and Cunningham (1996), due to intense competition, airline companies started to offer different promotional campaigns such as frequent flyer programs and computerized reservation services in order to retain customers, long-term customer loyalty and economic growth.…”

Section: Introductionmentioning

confidence: 99%

“…A specific consideration is given to analyse customer complaints, due to the specific activities related to customer experiences during the traveling. Airline companies seek to resolve economic aspects of business problems that are encountered as a result of the world economic crisis causing the bankruptcy of small companies or due to accidents (Karamata et al, 2017;Oyewole et al, 2007). The results of the previous literature exhibited that organizations that experienced higher customer loyalty were more likely to respond positively to customer complaints (Law, 2017;Estelami, 2000;Fullerton, 2003).…”

Section: Introductionmentioning

confidence: 99%

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Customer Satisfaction & Loyalty and Organizational Complaint Handling: Economic Aspects of Business Operation of Airline Industry

Ahmed

Vveinhardt

Warraich

et al. 2020

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The undertaken study examines economic aspects of business operations of the airline industry vis-à-vis organizational complaint handling and customer loyalty. For this purpose, we used a structured questionnaire to collect sample data of 200 respondents from university students and households of Pakistan who are the customers of the airline industry. We employed five independent variables, namely, response time, complaint resolution perfection, executives’ attitude, brand image and responsiveness to complaints. We used the descriptive analysis and SEM-based approaches; namely, confirmatory and exploratory factor analysis for estimation purposes. The findings of the undertaken study demonstrated that the resolution of complaints, timely response, and responsiveness to complaints had a significant and positive influence on satisfaction of customers and loyalty of clients using international airline services, and this leads to the economic prospects of business operation in the airline industry. However, customer relationship, executives’ attitude and brand loyalty do not have significant influence on the customer satisfaction and customer loyalty. Thus, it is concluded that the immediate response to customer complaint handling enhances the customer satisfaction and customer loyalty that increases the economic aspects of business operation in the airline industry.

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