An Analysis of the Influence of Customer Participation in Airline Loyalty Programs: A Multi-Group Examination

Abstract

Loyalty programs have long been seen as a critical factor in the success of many businesses. While there has been extensive research into the benefits, satisfaction, perceived functional value, and loyalty associated with LPs, few studies have sought to compare these results across different consumer groups. This study aims to examine how user involvement levels relate to airline loyalty programs. The survey collected 429 responses from individual members of airline loyalty programs, using multi-group analysis with Partial Least Squares Structural Equation Modeling. The findings indicate that satisfaction and perceived value mediate the relationship, while consumer involvement moderates it. A distinction was found between the two consumer groups regarding hedonic benefits, satisfaction, and loyalty. This research makes a valuable contribution to the airline industry by emphasizing the importance of loyalty program benefits and highlighting consumers' role in these programs. Furthermore, it offers practical insights for future research endeavors