Factors Affecting Customer Loyalty, A Case of Ethiopian Airlines
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Date
2016-06
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Addis Ababa University
Abstract
This study aimed at examining factors affecting customer loyalty within Ethiopian airlines. The research used proportional stratified random sampling. In order to select respondents from each stratum, a modified version of systematic sampling was used. Data were collected from 388 passengers of Ethiopian airlines using self-administered questionnaire. Both descriptive and inferential statistics have been used for data analysis. Finding of the study indicated that there is a positive relationship between image, trust and switching cost with customer loyalty. Image was found to be the most critical factor in affecting customer loyalty. It was also founded that satisfaction and organizational commitment have insignificantly effecting customer loyalty. Based on the findings, it is recommended that the management of Ethiopian airlines should focus on building positive image, give more attention to find ways of building a feeling of intimacy between the consumer and the image of the airline. Theairline should attempt to get customers trust through keeping promises, on time departure and arrival, (no delay, cancellation of flights). Regular customer need assessment platform should be created that can inform the company about unmet needs of customers so that it will be able to make adjustments to suit customer’s needs. By doing so the level of the organization’s commitment will be upgraded. As the airline industry is moving to a very intense competition and those airlines with high quality service delivering at a lower price are aggressively competing, there is an urgent need to find other means of competition. Therefore, the company should conduct different survey to generate new marketing strategy
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customer loyalty, Customer Satisfaction, Trust