The Influence of Service Quality, Perceived Price Fairness and Corporate Image on the loyalty of Airline Travelers in Ethiopia
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Date
2016-06
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Addis Ababa University
Abstract
It is essential for airline companies to understand factors that influence customer loyalty in order to be successful in this competitive marketing environment. The research was conducted to investigate the influence of service quality, perceived price fairness and corporate image on customer loyalty in Ethiopian airlines industry. A questionnaire was designed consisting of thirty-one (31) items to obtain the required information from the study sample. Primary data was obtained through structured questionnaire from customers of four airline companies namely Ethiopian, Emirates, Kenya Airways and Turkish Airways. Probabilistic stratified sampling technique was used to sample customers. 385 questionnaires were distributed to the airline customers and 333 of the questionnaires were returned and, properly filled. Usable questionnaires were analyzed using descriptive and inferential statistical tools to analyze and examine the hypothesis. The applications used to analyze the collected data are the Statistical Package for Social Sciences version 20. Pearson Correlation and simple and multiple regression analysis were used to establish the relationship between the independent and dependent constructs of the research. The main findings of the study were; a significant effect of service quality, airline image and perceived price fairness was observed with regard to customers’ loyalty at the level of (α ≤ 0.05). The result also indicated that service quality was the most important factor influencing customer loyalty of airline travelers followed by airline image and perceived price fairness. A conclusion was drawn to the effect that since factors influencing customer loyalty have been established, airline companies should note these and emphasize it in their marketing strategy. Airlines companies should sustain its favorable service quality and image among its current customers and to be able to attract new customers and should also give due attention to its pricing strategy so as to improve the level of loyalty
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Keywords
Airline, corporate image, Customer loyalty