The Effect Of Frequent Flyer Programs On Customer Loyalty: (The Case Of Ethiopian Airlines)

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Addis Ababa University


One of the pressing issues in marketing is whether loyalty programs really enhance loyalty. As loyalty programs represent decades of establishment as a distinct avenue to enhance long-term customer relationships, their efficacy and viability have been widely discussed in literature. This paper aims to present whether there is effect of the frequent flyer programs (FFPs) applied by Ethiopian Airlines (ET) that want to build loyal customers over the loyalty of their customers. The study used a quantitative research where a questionnaire was administered via email to randomly selected shebamile members from the database and physically distributed at Addis Ababa Bole, Nairobi Jomo Kenyatta and Washington Dulles International Airports by employing sample size determinants like: confidence level, confidence interval and population. Random and convenience sampling technique was used. The questionnaire consisted of factors like; customer loyalty, free/discounted ticket, priority services, lounge access and baggage allowance. 393 questionnaires have distributed but 278 recollected back from respondents and out of it 257 were considered as valid respondents for further investigation. The study is quantitative research approach and the collected data are analyzed by scale reliability for questionnaire scaling validity, descriptive statistics, Pearson correlation analysis and multiple regression analysis with a view to know that at what level both FFPs and customer loyalty are related with each other. The collected data revealed that there has been a positive effect and positive relationship among different dimensions of FFP elements and customer loyalty of Ethiopian Airlines S.C. This study indicates on selectivity of right marketing activities to suit the particular business at a particular time and then to use it at particular situation. Further research can be held with more samples by extending the area of research



Customer Loyalty, Free, Priority Services