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Loyalty Management in the Airline Industry

Loyalty Management in the Airline Industry
Über dieses Buch
  • Art: Bachelorarbeit
  • Autor: Ben Beiske
  • Abgabedatum: Mai 2002
  • Umfang: 114 Seiten
  • Dateigröße: 2,5 MB
  • Note: 1,3
  • Institution / Hochschule: Middlesex University Großbritannien
  • ISBN (eBook): 978-3-8324-5464-7
  • ISBN (Paperback) :
    978-3-8324-5464-7 P
  • ISBN (CD) :978-3-8324-5464-7 CD
  • Sprache: Englisch
  • Prämierung:
  • Arbeit zitieren: Beiske, Ben Mai 2002: Loyalty Management in the Airline Industry, Hamburg: Diplomica Verlag
  • Schlagworte: Kundenbindung, Loyalität, Fluggesellschaften, Vielfliegerprogramme, Beschwerdemanagement

Bachelorarbeit von Ben Beiske

Abstract:

This report will demonstrate the importance of Loyalty Management in the competitive environment of the airline industry and will show that a successful approach to Loyalty Management consists of three different, interlinked aspects. These three ‘pillars’ are Customer Service, Frequent Flyer Programs, and Complaint Management; their interdependence will be analysed in depth, with special attention given to the perceived importance of Frequent Flyer Programs.

Findings from a detailed literature review and a survey show that customers do indeed perceive these issues as vital with regards to their loyalty towards a particular airline. It was found that Customer Service can be regarded as the foundation for Loyalty Management; it can help an airline to gain competitive advantage by setting it apart from its competitors. Frequent Flyer Programs, if implemented and run properly, can provide the customer with added value. As such, they compliment Customer Service and can help to increase overall loyalty. Additionally, Complaint Management was found to be gaining importance among airlines. The number of complaints was shown to be rising gradually, stressing the growing significance of efficient Complaint Management and its strong after-effect on customer loyalty.

Table of Contents:

1. INTRODUCTION 6
1.1 AIM AND OBJECTIVES OF THE REPORT 7
1.2 TERMINOLOGY 9
1.3 BACKGROUND INFORMATION: LOYALTY MANAGEMENT 9
1.3.1 DEFINITIONS 9
1.3.2 TRADITIONAL MARKETING AND LOYALTY MANAGEMENT 10
1.3.3 IMPORTANCE OF LOYALTY MANAGEMENT 12
1.4 CHARACTERISTICS OF THE AIRLINE MARKET 13
1.4.1 AIRLINE INDUSTRY ANALYSIS - STEEPLE 13
1.4.1.1 Social 13
1.4.1.2 Technological 14
1.4.1.3 Economical 14
1.4.1.4 Environmental 14
1.4.1.5 Political 15
1.4.1.6 Legal 15
1.4.1.7 Ethical 15
1.4.2 CONSOLIDATION IN PRACTICE: BRITISH AIRWAYS 16
1.4.2.1 British Airways and KLM 16
1.4.2.2 British Airways and American Airlines 18
1.4.3 THE CURRENT AIRLINE SITUATION 19
2. LITERATURE REVIEW 22
2.1 CUSTOMER SERVICE 22
2.1.1 BACKGROUND INFORMATION 23
2.1.1.1 Singapore Airlines 23
2.1.2 REVELATION OF DISSATISFACTION 24
2.1.3 EMPLOYEES 25
2.1.4 COMMUNICATION 25
2.1.5 THE CUSTOMER 26
2.1.5.1 Customer Requirements 26
2.1.6 SERVICE QUALITY 27
2.1.6.1 Quality and Retaining Customers 28
2.1.7 ORIENTATION OF COMPANY 29
2.1.8 CONCLUSION CUSTOMER SERVICE 29
2.2 FREQUENT FLYER PROGRAMS 31
2.2.1 BACKGROUND INFORMATION 31
2.2.1.1 Statistics Frequent Flyer Programs 32
2.2.2 CRITICAL SUCCESS FACTORS FFPS 34
2.2.2.1 General Considerations 34
2.2.2.2 Whom to Target: Share of Customer 35
2.2.2.3 Program Structure 37
2.2.3 HARMONISATION BETWEEN FREQUENT FLYER PROGRAMS 39
2.2.4 CONCLUSION FREQUENT FLYER PROGRAMS 39
2.3 COMPLAINT MANAGEMENT 41
2.3.1 BACKGROUND INFORMATION 41
2.3.2 COMPUTER-AIDED COMPLAINT MANAGEMENT 42
2.3.3 HELP FROM THE INTERNET 43
2.3.4 STATISTICS COMPLAINT HANDLING 43
2.3.5 COMPENSATION 45
2.3.6 CONCLUSION COMPLAINT MANAGEMENT 46
2.4 CHAPTER CONCLUSION 46
3. METHODOLOGY 47
3.1 SECONDARY RESEARCH 47
3.1.1 LIBRARIES 47
3.1.1.1 Local Libraries 47
3.1.1.2 Interlibrary Loan 47
3.1.1.3 UK Libraries Plus 48
3.1.1.4 British Library 48
3.1.1.5 Online Catalogues 48
3.1.2 ELECTRONIC DATABASES 49
3.1.3 NEWSPAPERS AND PERIODICALS 50
3.1.4 INTERNET 50
3.1.5 SEARCH TERMS LITERATURE REVIEW 51
3.2 METHODOLOGY - PRIMARY RESEARCH 52
3.2.1 DIARIES AND OBSERVATIONS 52
3.2.2 EXPERT INTERVIEWS 53
3.3 QUESTIONNAIRE 53
3.3.1 PURPOSE OF QUESTIONNAIRE 53
3.3.2 QUESTIONNAIRE DESIGN 54
3.4 CHAPTER CONCLUSION 57
4. FINDINGS AND INTERPRETATION 58
4.1 DISTRIBUTION AND RESPONSE RATE 58
4.2 DEMOGRAPHICS OF RESPONDENTS 59
4.3 QUESTION ONE - NUMBER OF FLIGHTS IN LAST TWELVE MONTHS 60
4.4 QUESTION TWO - FACTORS INFLUENCING PURCHASE DECISIONS 61
4.5 QUESTION THREE - LOYALTY TO FAVOURITE AIRLINE 62
4.6 QUESTION FOUR - MAIN REASON FOR LOYALTY TO FAVOURITEAIRLINE 63
4.7 QUESTION FIVE - FREQUENT FLYER PROGRAM PARTICIPATION 64
4.8 QUESTION SIX - MAIN REASON FOR PARTICIPATION IN FFP 66
4.9 QUESTION SEVEN - COMMUNICATION WITH FFP 67
4.10 QUESTION EIGHT - MEASURE OF USEFULNESS OF FFP 68
4.11 QUESTION NINE - INFLUENCE OF FFP ON AIRLINE CHOICE 69
4.12 QUESTION TEN - PERCEPTION OF CUSTOMER SERVICE 70
4.13 QUESTION ELEVEN - PERCEPTION OF OVERALL QUALITY 71
4.14 QUESTION TWELVE - IMPORTANCE OF FLIGHT TIMES ANDROUTINGS 72
4.15 QUESTION THIRTEEN - ATTITUDE TOWARDS LODGINGCOMPLAINTS 73
4.16 QUESTION FOURTEEN - SATISFACTION WITH RESOLVEDCOMPLAINTS 74
4.17 QUESTION FIFTEEN - COMPLAINT RESOLUTION AND INFLUENCEON LOYALTY 75
4.18 QUESTION SIXTEEN - COMPLAINT RESOLUTION AND FUTUREBEHAVIOUR 76
4.19 CHAPTER CONCLUSION 77
5. CONCLUSION 79
5.1 CONCLUSION OF CHAPTER FINDINGS 79
5.2 CONCLUSION AIM AND OBJECTIVES 81
5.3 OVERALL CONCLUSION 83
GLOSSARY OF TERMS 85
LIST OF REFERENCES 87
APPENDICES 92
APPENDIX I: COMPARISON OF AIRLINE KEY FIGURES 2001 92
APPENDIX II: FREQUENT FLYER DEVELOPMENT TIMELINE 93
APPENDIX III: FREQUENT FLYER PROGRAMS IN NUMBERS 103
APPENDIX IV: COPY OF QUESTIONNAIRE 106

Arbeit zitieren:
Beiske, Ben Mai 2002: Loyalty Management in the Airline Industry, Hamburg: Diplomica Verlag

Schlagworte:
Kundenbindung, Loyalität, Fluggesellschaften, Vielfliegerprogramme, Beschwerdemanagement

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