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You will prepare and submit a term paper on Customer Loyalty in Aviation Industry. Your paper should be a minimum of 3250 words in length. Customer loyalty is defined as being both a behavioral and attitudinal tendency to prefer one brand to another (Dahlgren, 2011). This could be because of satisfaction with the product or service provided, its convenience or performance, or it may just be familiarity and comfort with a particular carrier. With increasing customer demands and competition it is vital for these airlines to know not only what they should continue to do in order to gain new customers but also what they could do retain current ones. Researchers have shown that it costs five times more to attract a new customer than to keep an existing one (Holmund & Kock, 1996:289). They need to know what they are currently doing that is causing them to lose people who would otherwise be loyal customers and what they could do to reverse that trend. Therefore, for airline companies, understanding passenger expectations, satisfaction and loyalty relationship has become very important because of stiff competition within the industry.
There are several reasons why airlines should grasp the service dimensions, which in turn, lead to customer satisfaction. The knowledge would assist them to make the right decisions regarding the management of their operations and the positioning of their brand to their customers. Secondly, customer satisfaction tends to lead to customer loyalty, something that in this day and age is difficult to secure (Bae & Han, 2012). Thirdly, unhappy customers tend to complain to other potential customers and thus discourage them from choosing to fly that airline (Bejou & Palmer, 1998).
This professional paper seeks to analyze what is most important to the consumer when making their decision on which particular airline carrier to use. It shall use the five service dimensions to analyze the top three airlines in the United States.