The Influence Of Customer Loyality Program On Customer Purchase Behavior: The Case Of Ethiopian Airlines
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Date
2017-08-05
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Addis Ababa University
Abstract
The goal of this study is to obtain a deep understanding of the impact of customer loyalty programs on customer purchasing behavior. This study was applied to the Ethiopian airlines. The study investigated the impact of independent variable; free ticket, priority service, free cabin upgrading, exclusive lounge access and additional baggage allowance, on the dependent variable: customer purchasing behavior. To achieve the objective of the study, a survey was conducted to collect data from the sample population. In total (395) questionnaires were distributed for passengers conveniently found in the airport and who are gold and silver Sheba mile program who could be conveniently reached by the researchers in Addis Ababa Bole International Airport. The participants had different social, educational, and occupational backgrounds. The researcher interviewed 10 purposely selected passengers and also analyzed literatures related to the issues in order to support the result obtained through questioners. The collected data was analyzed using frequency, mean standard deviation and Pearson’s correlation. The findings clearly show: there is significant evidence of the effect of all loyalty programs on the customer purchasing behavior. The major influential factors are free ticket and priority service. Based on the findings, the researcher concluded that even if there the loyalty program has significant and positive influence on the purchasing behavior of the customers, the customers of the Ethiopian airlines are facing problems on the application of their privileges due to inconsistency, un-coordination and rigid rewarding system of the airline. For the identified problems the researcher recommended that the airline should conduct continues assessment on the effectiveness of the FFP and the expectations of its passengers.
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Customer relationship management, customer loyalty, loyalty program