scholarly journals Loyalty programs for the passenger transportation industry: a study of Zimbabwean Companies

2020 ◽  
Vol 11 (1(V)) ◽  
pp. 5-22
Author(s):  
Farium Kautsiro ◽  
Prof. Olawumi D. Awolusi
Keyword(s):  
Customer Relationship Management ◽  
Airline Industry ◽  
Relationship Management ◽  
Operational Efficiency ◽  
Customer Relationship ◽  
Loyalty Programs ◽  
Transportation Industry ◽  
Loyalty Program ◽  
Passenger Transportation ◽  
Industrial Sectors

The paper examined firstly whether companies in the passenger transportation industry have utilised loyalty programs and then ascertained how much value the companies have drawn from them in enhancing market share, operational efficiency and financial benefit. Specifically, the study assessed the influence of loyalty program on customer relationship management, operational efficiency and profitability. The research was undertaken on ten companies who have implemented some form of loyalty programs through applied research’s in-depth interviews with the top executives. The qualitative methodology was utilised to simplify and manage the collection of data without affecting the environment and context. Data collected were further analysed via Chi-square statistics and the three hypotheses were tested at 5% level of significance. The results indicate that companies have begun to utilise loyalty programs in their operations, though not entirely sweating the programs to attain the best possible value from them. Most importantly, the study concluded on the positive significant relationship between loyalty program and customer relationship management, operational efficiency and profitability in the Zimbabwe loyalty program. Both filled a few highlighted gaps in the literature. Research for the road passenger transportation sub-sector offers useful theoretical and managerial implications as few studies have been conducted for the airline industry, which has successfully implemented loyalty programs through frequent flier schemes. It is recommended that companies should ascertain passenger behaviour through passenger registration, thereby enhancing the sustainability of the relationship. This study provides theoretical support for the importance of loyalty programs as passenger relationship management tools if appropriately applied and implemented. Loyalty programs offer companies across industrial sectors with useful benefits such as brand loyalty, business efficiency due to enhanced planning and profitability due to increase in patronage from passengers who are less sensitive to the marketing efforts of competing brands. This knowledge should, therefore, enable transporters to ascertain the value of adopting and using loyalty programs appropriately thereby enhancing their competitive advantage in a fast-paced world economy.

scholarly journals The study of customer relationship management in Thai airline industry: A case of Thai travelers in Thailand

2017 ◽  
Vol 7 (1) ◽  
pp. 13 ◽  
Author(s):  
Colin Law
Keyword(s):  
Customer Relationship Management ◽  
Airline Industry ◽  
Distribution Channel ◽  
Relationship Management ◽  
Sampling Technique ◽  
Customer Relationship ◽  
Final Decision ◽  
Loyalty Program ◽  
Customer Preference ◽  
Customer Services

Purpose: This paper offer marketing strategy suggestion to the airlines operating within the Thai aviation market. It identifies the recommended motivational factors that influence the airline customers’ decision to their airline choices. Airlines use different customer relationship management programs to attract returning customers.  This paper suggested the most attractive motivation factors for Thailand's air travel market.Design/methodology/approach: This research paper is an attempt to study and identify the factors, including loyalty program, distribution channel, customer services, promotions and other influence causes that affected the customer preference in the airline ticket purchasing behavior in Thailand.A questionnaire survey was conducted with the sample identified through unrestricted non probability sampling technique at four major airports in Thailand. The data collected are analyzed to identify the favorable drivers that lead to customer decision on airline choice.Findings: The result from the study has demonstrated that price, and promotion has a significant impact on customer preference and positively leads to repurchase intention for their future travel. Moreover, flight schedules are also a main factor influencing the travelers’ final decision on airline choice. However, when the promotional strategies and schedule are comparable between airlines, customers are attracted by the airline amenities and services. Loyalty program (frequent-flier program flier program) is showing a less attractive motivator while distribution channel demonstrates the least important affecting the travelers’ choice of airline.Originality/value: The paper begins with an overview of previous research in the area of airlines customer relationship management and then moves on to what is currently being implemented by the airlines. The authors then propose several customer relationship strategies and identify the most attractive one that motivates the Thai consumers.

Customer retention at Hyundai Motor India Ltd

2013 ◽  
Vol 3 (3) ◽  
pp. 1-12
Author(s):  
Rik Paul ◽  
Debapratim Purkayastha
Keyword(s):  
Market Share ◽  
Customer Relationship Management ◽  
Automobile Industry ◽  
Relationship Management ◽  
Customer Retention ◽  
Customer Relationship ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Content Type ◽  
The Cost

Title – Customer retention at Hyundai Motor India Ltd. Subject area – Marketing management, services marketing, customer relationship management and strategic marketing management. Study level/applicability – This case can be taught effectively to MBA/MS students. Case overview – Hyundai Motor India Ltd (HMIL) commenced operations in India in 1996 and launched its first car in India – the Hyundai Santro – in 1998. Since then, there has been no looking back for the company. Its domestic and export sales figures have risen manifold each year and the car maker has gone on to become the second largest manufacturer in the Indian car market with a market share of 18.10 percent as of 2010-2011. By 2009-2010, most of the major international car makers were setting up production facilities in India. The market was set to become highly competitive and it became imperative for manufacturers like Maruti Suzuki India Ltd (MSIL) and HMIL to retain their customers in order to maintain their market share. Nalin Kapoor, General Manager (Sales & Marketing) was contemplating the marketing strategies he could use to counter the stiff competition. Customer retention was one of the major problems in the automobile industry as the purchase time span varied between three and five years and the cost of brand switching was nil. HMIL had been pursuing customer relationship management activities but its customer retention ratio was declining. Kapoor and his team decided to study the loyalty programs of some companies in the automobile industry to ascertain whether launching a loyalty card could solve their problem of retention. The marketing strategy department with the help of a management intern extensively studied the existing loyalty program of Hero Honda, MSIL, and Ford to identify how those programs were designed and promoted to the customer. The reports also indicated the shortcomings of each program and the features which were highly accepted by the customer. The loyalty program also had cost implications as there was a need for a strong technical support team to run it successfully. With the reports in hand, Kapoor was in a dilemma on whether launching a loyalty card would be feasible or not. If yes, then how should it be structured to motivate the customers to stay loyal to the company? Also, how could the cost in terms of promotion, training, and technical support be justified? If not a loyalty program, then what marketing strategies should the company pursue to retain customers effectively? The problem demanded immediate attention and action and Kapoor was well aware of the implications that a delay in decision making would have for the market share of the company in the growing and dynamic automobile industry in India. Expected learning outcomes – These include: the concept of customer relationship management; relationship marketing; customer retention; customer loyalty; customer profitability segments; relationship bonds; and designing loyalty programs. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or email: [email protected] to request teaching notes.

Social Media, Customer Relationship Management, and Consumers' Organic Food Purchase Behavior

2018 ◽  
pp. 756-773
Author(s):  
Evelyn Chronis ◽  
Qiang Lu ◽  
Rohan Miller
Keyword(s):  
Social Media ◽  
Conceptual Framework ◽  
Customer Relationship Management ◽  
Organic Food ◽  
Relationship Management ◽  
Customer Relationship ◽  
Purchase Behavior ◽  
Consumer Engagement ◽  
Loyalty Program ◽  
The Impact

Extant research has been focusing on the effectiveness of social media in driving consumer engagement and interaction. However, little research has examined how social media influences firms' Customer Relationship Management. This chapter fills this gap by proposing a conceptual framework to capture the impact of social media on traditional Customer Relationship Management in the context of consumers' organic food purchasing. Specifically, this study investigates how social media influences the purchase behavior of loyalty program members and non-loyalty program members. This study also examines the effectiveness of different types of social media content on consumer purchase behavior of organic food.

Conceptualizing the Use of Artificial Intelligence in Customer Relationship Management and Quality of Services

2022 ◽  
pp. 177-201
Author(s):  
Parag Shukla ◽  
Sofia Devi Shamurailatpam
Keyword(s):  
Artificial Intelligence ◽  
Customer Relationship Management ◽  
Relationship Management ◽  
Operational Efficiency ◽  
Customer Relationship ◽  
Quality Of Services ◽  
Comprehensive Model ◽  
Indian Banks

In this chapter, the authors have conceptualized a hypothetical comprehensive model of AI, CRM, and quality of services by banks given the underlying pull and push factors that determine the extent of AI adoption by the banks. This chapter shall also serve as a primer to demonstrate the effects of use of artificial intelligence in the Indian banks and is also aimed to encapsulate the restraining and facilitating forces that drive adoption of AI. This chapter examines the blooming development of artificial intelligence and its significance in the operational efficiency in terms of management of issues related to customers while accessing different products and services offered by banks. In other words, the use of artificial intelligence technologies can dramatically improve banks' ability to achieve four key outcomes: higher profits, at-scale personalization, rapid innovation cycles, strategic customer relationship management (CRM), and distinctive omni-channel experiences. The role of artificial intelligence (AI) is significant in the banking industry for operational efficiency.

scholarly journals An exploration on customer relationship management and its perspectives: aviation sector

2012 ◽  
Vol 1 (3) ◽  
pp. 203-207
Author(s):  
Malini D H
Keyword(s):  
Customer Relationship Management ◽  
Airline Industry ◽  
Relationship Management ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Aviation Industry ◽  
Marketing Concept ◽  
The World ◽  
Acquisition Costs

The CRM approach has received increased attention as a marketing concept during the last decades (Sin et al.2005; Osarenkhoe and Bennani 2007; Wilson et al. 2002). By combining the abilities to respond directly to customer requests and to provide the customer with a highly interactive, customized experience. Organizations today have greater scope for establish, cultivate, and maintain long-term customer relationships than ever before. The ultimate goal is to transform these relationships into greater profitability by increasing repeat purchase rates and reducing customer acquisition costs. Indeed, this revolution in customer relationship management or CRM as it is called has been referred to as the new ―mantra‖ of marketing (Russell S. Winer 2001). The Indian aviation industry is identified as one of the fastest growing industry in the world with private airlines accounting for more than 75 per cent of the sector. It is noticed that the 9th largest position in the aviation market in the world is India. In the present study the effort has been made to examine and analyze the effects of CRM and its contribution towards airline industry and also to develop and clarify a conceptual framework integrating CRM constructs, and its implications on aviation industry.

Customer loyalty and customer loyalty programs

2003 ◽  
Vol 20 (4) ◽  
pp. 294-316 ◽  
Author(s):  
Mark D. Uncles ◽  
Grahame R. Dowling ◽  
Kathy Hammond
Keyword(s):  
Empirical Research ◽  
Customer Relationship Management ◽  
Customer Loyalty ◽  
Large Scale ◽  
Relationship Management ◽  
Customer Relationship ◽  
Loyalty Programs ◽  
Brand Commitment ◽  
Demand Side ◽  
Customer Loyalty Programs

Customer loyalty presents a paradox. Many see it as primarily an attitude‐based phenomenon that can be influenced significantly by customer relationship management initiatives such as the increasingly popular loyalty and affinity programs. However, empirical research shows that loyalty in competitive repeat‐purchase markets is shaped more by the passive acceptance of brands than by strongly‐held attitudes about them. From this perspective, the demand‐enhancing potential of loyalty programs is more limited than might be hoped. Reviews three different perspectives on loyalty, and relates these to a framework for understanding customer loyalty that encompasses customer brand commitment, customer brand acceptance and customer brand buying. Uses this framework to analyze the demand‐side potential of loyalty programs. Discusses where these programs might work and where they are unlikely to succeed on any large scale. Provides a checklist for marketers.

scholarly journals Development of Loyalty Programs through the Retail Industry in Albania

2018 ◽  
Vol 9 (5) ◽  
pp. 195-202
Author(s):  
Sokol Luzi
Keyword(s):  
Customer Relationship Management ◽  
Relationship Management ◽  
Customer Relationship ◽  
Loyalty Programs ◽  
Retail Industry ◽  
Retail Sector ◽  
Organizational Changes ◽  
Cultural Changes ◽  
Industry Research ◽  
Study Development

Abstract This article aims to study development of Customer Relationship Management as a new way of applying marketing concepts in the Albanian retail industry. Research in other industries has shown that the planning and execution of CRM strategies can bring higher profitability. In the case of Albania, businesses still neglect the benefits that they can receive using different CRM strategies. Currently the two main barriers regarding the implementation of CRM includes financial and technological challenges. In reality, financial and technological issues appear to be less problematic in comparison with organizational changes, cultural changes and human barriers. The results of the survey showed that CRM is still in the initial stages of application in the retail sector in Albania.

I Earn It, But They Just Get It: Loyalty Program Customer Reactions to Unearned Preferential Treatment in the Social Servicescape

2019 ◽  
Vol 61 (1) ◽  
pp. 84-97 ◽  
Author(s):  
Youngsun Sean Kim ◽  
Melissa A. Baker
Keyword(s):  
Customer Relationship Management ◽  
Social Presence ◽  
Management Strategies ◽  
Relationship Management ◽  
Customer Relationship ◽  
Preferential Treatment ◽  
Loyalty Program ◽  
Perceived Trust ◽  
The Social ◽  
Customer Delight

Hospitality and tourism firms use two different strategies in customer relationship management: rewarding loyalty program customers with earned rewards (earned preferential treatment) and delighting the nonprogram customers with surprise rewards (unearned preferential treatment). However, research overlooks the key impact of how these two customer relationship management strategies may negatively affect the observing loyalty program customers. To address these gaps, Study 1 finds that providing a nonprogram customer with a high-value unearned treatment significantly decreases perceptions of distributive justice, status, and loyalty among the observing loyalty program customers. No significant interaction effects of a firm’s explanation were found, suggesting that the practice of unearned preferential treatment cannot be justified simply by presenting a reason for the practice. Study 2 finds that compensating the affected program customers with tangible compensation is the only significant factor that enhances the observing loyalty program customers’ perceived trust, suggesting rebuilding customers’ trust as the key element in recovery. This research is grounded in social comparison and justice theory and builds upon the loyalty, social servicescape, and customer delight literature to explicitly examine the reward comparison stemming from the social presence of other customers.

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