The Influence of Customer Loyalty Programs on Customers Satisfaction: the Case of Ethiopian Airlines
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Date
2024-12-20
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A.A.U
Abstract
This study explored the influence of customer loyalty programs on satisfaction, with a
focus on Ethiopian Airlines' ShebaMiles program. It aimed to evaluate how factors like the
number of airline and non-airline partners, ease of mile redemption, variety of redemption
options, ease of earning miles, and the achievability of elite status influence ShebaMiles
members' satisfaction. A mixed-methods approach was used, combining both quantitative
and qualitative data collection and analysis to provide a comprehensive evaluation.
Descriptive and explanatory research designs were employed, utilizing quantitative
analysis techniques such as descriptive, correlation, and regression analysis to assess
member satisfaction, identify dissatisfaction factors, examine relationships between
variables, and determine how these elements impacted satisfaction within the program.
Qualitative methods included interviews with department heads and ShebaMiles program
employees. Primary and secondary data were gathered via questionnaires, interviews, and
relevant documents respectively. The study used non-probability sampling, with a sample
size of 384. Using convenience sampling 384 questionnaires were distributed of which 370
were returned and filled, and four informants from the Customer Loyalty department viapurposive sampling were selected and interviewed. The correlation analysis revealed a
significant and positive relationship between member satisfaction and the number of airline
partners, the number of non-airline partners, variety of redemption options, ease of earning
miles, and the achievability of elite status. The regression analysis further showed that the
number of airline partners, variety of redemption options, ease of earning miles, and
achievability of elite status influenced satisfaction, while the number of non-airline
partners had no significant influence on ShebaMiles members’ satisfaction. The study
provides practical insights into the design and management of Ethiopian Airlines' loyalty
program, offering recommendations for future research and ways to enhance customer
satisfaction and retention through improvements to the ShebaMiles program.