Abstract
Loyalty development is an essential condition for an increase in profit of airline, railway and road transport companies. It is undoubtedly relevant to the success of an organisation. However, there is a lack of unified and universally accepted indicators for customer loyalty. Consequently, a model for measuring customer loyalty can be barely applied to companies that provide transport services for passengers. This gap has presupposed the need to create a customer loyalty model that corresponds to modern needs of passenger transport organisations. The model needs to be flexible to be used by various transport organisations that provide services to passengers. Principal solutions for the design of a model for loyalty measurement emerged from the clarified role of passenger loyalty and evaluation problems. The worked out solutions include a selection of a proper concept (1), loyalty specification (2), and differentiation of loyalty measurement depending on accessible data (3). To measure loyalty, an informative and practical concept of loyalty has been chosen. Subsequently, a complex of indicators that correspond with features of passenger transport services was compiled and the measurement of customer loyalty was differentiated according to the situations of data accessibility. A quantitative model of passenger loyalty measurement is based on a behavioural concept and miscellaneous content. Therefore, it creates presumptions about measuring the state of passenger loyalty and choosing proper solutions for the development of passenger loyalty in transport organisations.
Highlights
Delivery of a high-quality service to passengers is the core competitive advantage that determines the profitability and sustainable development of a passenger transport organisation (Al-Refaie et al 2013, 2014)
Loyalty will be measured in regard to a particular type of the passenger transport service provided by a particular service organisation in accordance with the behaviour of passengers during a particular period t, which means that the array of data necessary for measuring loyalty must include figures on the value and frequency of purchase of every passenger
Aiming to reduce customer retention costs, increase sales and profits, a passenger transport organisation should pay a greater attention to passenger loyalty
Summary
1, 2Dept of Social Economics and Management, Vilnius Gediminas Technical University, Lithuania 3, 4Dept of Business Technologies, Vilnius Gediminas Technical University, Lithuania. Submitted 9 April 2015; resubmitted 27 May 2015; accepted 1 June 2015; first published online 9 October 2015
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