Abstract
Customer Loyalty Programs are one of the handiest tools to raise brand awareness, and secure long-term and strong ties between a brand and existing consumers. Airline companies have been using frequent flyer programs (FFPs) to retain customers with the expectation of increasing passengers’ loyalty levels. The purpose of this study was to examine the significance of FFPs for customer loyalty, which is of great help for customer retention in the civil aviation industry in the sample of passengers flying from the new Istanbul Airport. Furthermore, we questioned the effectiveness of various services and products offered within FFPs for loyalty, which is decomposed into two main components, behavioral, and attitudinal commitment of loyalty. We evaluated the significance of various demographic factors on passengers’ perception of FFPs services and privileges, and customer loyalty. The study confirmed the vital role of FFPs to build up brand loyalty, where profession, duration of the membership to FFPs, and gender are essential factors.
Highlights
It is extremely critical for companies to have strong ties with their customers
The purpose of this study was to examine the significance of Frequent flyer programs (FFPs) for customer loyalty, which is of great help for customer retention in the civil aviation industry in the sample of passengers flying from the new Istanbul Airport
This study aims to focus on the importance of FFPs for customer loyalty in civil aviation industry based on a survey conducted in Istanbul
Summary
It is extremely critical for companies to have strong ties with their customers. Customer Relationship Management (CRM) is seen as the best business strategy for companies that aim to retain customers in the current dynamic, and constantly changing economic world [1]. In addition to repeat purchasing behavior, customer loyalty emerges as a concept that leads businesses to sell at lower costs, the willingness of customers to recommend products or services and to commitment to the business, indicating that businesses can gain competitive advantage against competitors [25] This is imperative for companies operating in today’s business; an environment of intense competition. In other words, establishing customer loyalty is a necessity for today’s companies that are aiming to achieve sustainable competitive advantage [26] Looking at these definitions, a conclusion that can be deducted is customer loyalty is a term that explains the rationale of customers, which is characterized by their willingness to consistently prefer a company, brand, service or product over its substitutes whenever the need for purchase arises. A customer with attitudinal loyalty can recommend it to others, even if s/he does not use the company's products and services regularly[27]
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