Indirect Effect on Trust on Customer Satisfaction and Customer Loyalty Relationship in Malaysian Airline Industry

Abstract This study aims to identify the factors that make passengers loyal to an airline in Southern Africa by investigating the impact of service quality and safety perception on customer satisfaction and how satisfaction and frequent flyer programs (FFP) subsequently influence customer loyalty. The key finding was that service quality positively influenced customer satisfaction, and satisfaction was an important antecedent of customer loyalty. The analysis also suggested that safety perception and FFP positively influence customer loyalty, while their relationship with satisfaction was not significant. An analysis of switching behaviour revealed that satisfied customers may still switch to other airlines. The main contribution of this study is the development of a customer loyalty model for the aviation industry in Southern Africa. Knowledge of customer loyalty drivers will assist airline marketing managers in developing strategies for improving passenger load factors and profitability.

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Building customer relationships as retention strategy in the South African domestic passenger airline industry

Acta Commercii ◽

10.4102/ac.v10i1.110 ◽

2010 ◽

Vol 10 (1) ◽

Cited By ~ 2

Author(s):

Pierre Mostert ◽

Christine De Meyer

Keyword(s):

Customer Satisfaction ◽

South African ◽

Customer Loyalty ◽

Airline Industry ◽

Customer Retention ◽

Customer Relationships ◽

The South ◽

Negative Experience ◽

Building Relationships ◽

Domestic Airlines

Organisations are increasingly focusing on building long-term relationships with customers, thereby increasing their probability for success by offering customers higher levels of satisfaction, increasing customer loyalty, and ultimately retaining customers. Airlines in particular can benefit from retaining customers as the airline industry is characterised by fierce competition and many airlines are finding it difficult to survive against the backdrop of enormous challenges in the past decade, including the significant decline in demand for air travel together with rising costs and the worldwide economic downturn. This study investigates the effect which a strategy by airlines of building relationships with customers has on customer satisfaction, loyalty, and ultimately customer retention. The effect of service failures on customers' relationships with airlines are also considered as a negative experience could results in customers defecting to competitors. A questionnaire, comprising six sections, was specifically compiled to determine customer retention in the South African domestic passenger airline industry. Data were collected by trained fieldworkers from OR Tambo International Airport by means of a non-probability convenience sampling method from 324 passengers flying with the various domestic airlines. Findings indicate that most respondents were satisfied with the airlines' overall service; respondents who formed relationships with domestic airlines were more loyal toward the airlines; and the relationships of respondents who were satisfied with airlines' service recovery efforts were either strengthened or unchanged. The findings from this study support findings from international studies by providing a unique South African perspective on the effect of a strategy of building relationships with customers on their satisfaction, loyalty and ultimately retention. It can therefore be recommended that the organisations competing in the South African service sector, and specifically the domestic airline industry, make special efforts to build relationships with existing customers, rather than to continually try to acquire new customers. This strategy could result in a higher probability of success by increasing customer satisfaction, customer loyalty, and ultimately customer retention.

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THE EFFECT OF RELATIONSHIP MARKETING IN INDONESIAN COSMETICS MARKET

Humanities & Social Sciences Reviews ◽

10.18510/hssr.2019.7667 ◽

2019 ◽

Vol 7 (6) ◽

pp. 416-424

Author(s):

Sevenpri Candra ◽

Fanny Peolana

Keyword(s):

Customer Satisfaction ◽

Relationship Marketing ◽

Customer Loyalty ◽

Indirect Effect ◽

Corporate Image ◽

Partial Least Square ◽

Least Square ◽

Teachers And Students ◽

Corporate Images ◽

Customer Satisfaction And Loyalty

Purpose: The success of a business distributor is closely associated with its customers, so that customer satisfaction and loyalty should be maintained well. This research aims to clarify whether there’s a significant effect between relationship marketing and corporate image on customer satisfaction and its impact on customer loyalty in the Cosmetics Company. Methodology: This research is a quantitative, design with an associative descriptive study, to provide an overview of the effect between variables to be studied to test the hypothesis that has been established through a questionnaire survey. The population in this study is 54 retailer customers from Cosmetics Industry. The collected data were processed using the method of Partial Least Square (PLS) using software Warp PLS 5.0. Result: Results showed that there is a significant effect between relationship marketing on customer satisfaction, and between customer satisfactions on customer loyalty. But there is no significant effect of corporate image on customer satisfaction. Furthermore, there is a significant indirect effect between relationship marketing on customer loyalty through customer satisfaction. However, there is no significant indirect effect between corporate images on customer loyalty through customer satisfaction. Applications: This research can be used for universities, teachers, and students. Novelty/Originality: In this research, the model of the -- is presented in a comprehensive and complete manner.

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Customer Satisfaction & Loyalty and Organizational Complaint Handling: Economic Aspects of Business Operation of Airline Industry

Engineering Economics ◽

10.5755/j01.ee.31.1.8290 ◽

2020 ◽

Vol 31 (1) ◽

pp. 114-125 ◽

Cited By ~ 1

Author(s):

Rizwan Raheem Ahmed ◽

Jolita Vveinhardt ◽

Usman Ali Warraich ◽

Syed Shabib Ul Hasan ◽

Akhter Baloch

Keyword(s):

Customer Satisfaction ◽

Customer Loyalty ◽

Airline Industry ◽

Descriptive Analysis ◽

Positive Influence ◽

Customer Relationship ◽

Economic Aspects ◽

Business Operation ◽

Complaint Handling ◽

International Airline

The undertaken study examines economic aspects of business operations of the airline industry vis-à-vis organizational complaint handling and customer loyalty. For this purpose, we used a structured questionnaire to collect sample data of 200 respondents from university students and households of Pakistan who are the customers of the airline industry. We employed five independent variables, namely, response time, complaint resolution perfection, executives’ attitude, brand image and responsiveness to complaints. We used the descriptive analysis and SEM-based approaches; namely, confirmatory and exploratory factor analysis for estimation purposes. The findings of the undertaken study demonstrated that the resolution of complaints, timely response, and responsiveness to complaints had a significant and positive influence on satisfaction of customers and loyalty of clients using international airline services, and this leads to the economic prospects of business operation in the airline industry. However, customer relationship, executives’ attitude and brand loyalty do not have significant influence on the customer satisfaction and customer loyalty. Thus, it is concluded that the immediate response to customer complaint handling enhances the customer satisfaction and customer loyalty that increases the economic aspects of business operation in the airline industry.

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Perceived Service Quality and Customer Loyalty: The Mediating Effect of Passenger Satisfaction in the Nigerian Airline Industry

International Journal of Management and Economics ◽

10.1515/ijme-2016-0029 ◽

2016 ◽

Vol 52 (1) ◽

pp. 94-117 ◽

Cited By ~ 6

Author(s):

A. Ganiyu Rahim

Keyword(s):

Customer Satisfaction ◽

Service Quality ◽

Customer Loyalty ◽

Airline Industry ◽

Mediating Effect ◽

Perceived Service Quality ◽

Passenger Satisfaction ◽

The Relationship ◽

Customer Satisfaction And Loyalty

AbstractThe long-term survival and competiveness of the airline business is strongly connected to the quality of service offered by airline operators and their ability to satisfy and build long-term relationships with customers. This study investigates the relationship among service quality, customer satisfaction and loyalty in the Nigerian airline industry. The cross-sectional survey research design was chosen in order to collect the primary data, using a structured questionnaire. Convenience sampling was adopted to draw a sample of 800 respondents. The data collected were analysed using correlation and multiple regression analysis. The findings of this study largely support the hypothesized relationships proposed in the conceptual framework. The results specifically reveal that perceived service quality is positively related to both passengers’ satisfaction and loyalty. The relationship between passenger satisfaction and loyalty towards the airlines was also found to be positive. The mediating effect of customer satisfaction between perceived service quality and customer loyalty is also found to be positive and partially supported. On the basis of the findings of this study, we conclude that perceived service quality does influence passenger satisfaction, and by extension, loyalty to the airlines. Thus, improvement of service quality is an adjuvant factor to sustainable differentiation and competitiveness in the airline industry. We therefore, recommend that airline operators develop and implement market-oriented service strategies to identify customers’ needs and expectations in order to serve them better. Additionally, airline operators should measure service quality regularly to assure that they are keep meeting passengers’ expectations, and consider customizing their products and services (as needed) to enhance customer satisfaction and loyalty.

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PENGARUH KEWAJARAN HARGA, CITRA PERUSAHAAN TERHADAP KEPUASAN DAN LOYALITAS PENGGUNA PENERBANGAN DOMESTIK GIA DI DENPASAR

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2011.v15.i3.2301 ◽

2017 ◽

Vol 15 (3) ◽

pp. 370

Author(s):

I Ketut Rahyuda ◽

Ni Putu Cempaka Dharmadewi Atmaja

Keyword(s):

Customer Satisfaction ◽

Market Share ◽

Customer Loyalty ◽

Airline Industry ◽

Structural Equation ◽

Sampling Technique ◽

Research Problem ◽

Corporate Image ◽

Price Fairness ◽

The Impact

Competition of airline industry in Indonesia is not only due to globalization, but more because customers are increasingly savvy, price conscious and demanding. Garuda Indonesia as the first airline in Indonesia felt the impact of competitive domestic flight services in Indonesia. Currently the market share of Garuda Indonesia for domestic flights in Indonesia get second rank after the Lion Air who earned a market share of 30 percent. Decline in market share caused by the decline in customer satisfaction on Garuda Indonesia that caused by poor corporate image and price unfairness. Of course this is a lesson for Garuda Indonesia to increase customer satisfaction and loyalty through price fairness and corporate image. This study aims to determine the effect of price fairness and corporate image on customer satisfaction and customer loyalty of Garuda Indonesia's customer in Denpasar (Studies on Garuda Indonesia domestic flight services' customers in Denpasar). The population of this study was all Garuda Indonesia domestic flight passengers, while the sample in this study was 140 respondents using purposive sampling technique for sample determination. To answer the research problem and research hypothesis testing the analytical techniques used Structural Equation Modelling (SEM) using AMOS aid 16. The results showed that 1) the price fairness does not affect customer satisfaction, 2) Corporate image affects customer satisfaction, 3) customer satisfaction affects loyalty, 4) the prices fairness has no effect on customer loyalty, 5) corporate image does not affect on customer loyalty and 6) overall, customer satisfaction is the only construct that can affect customer loyalty

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Kepuasan pelanggan sebagai mediasi pengaruh brand image terhadap loyalitas pelanggan

Management and Business Review ◽

10.21067/mbr.v2i2.3228 ◽

2018 ◽

Vol 2 (2) ◽

pp. 123-131

Author(s):

Dwi Silvi Anisah ◽

Iva Nurdiana Nurfarida

Keyword(s):

Data Analysis ◽

Customer Satisfaction ◽

Path Analysis ◽

Customer Loyalty ◽

Indirect Effect ◽

Brand Image ◽

Sampling Technique ◽

Total Sample ◽

Analysis Technique ◽

Significant Direct Effect

To maintain market share, companies must be able to guarantee customer satisfaction so that customers become loyal. Companies need a brand image strategy or brand image so that it becomes the top of mind in the minds of consumers or customers. This study aims to determine the effect of brand image on customer loyalty mediated by customer satisfaction. The study was conducted at Warung Griya Bebek and Ayam Goreng Nelongso Malang. Accidental sampling technique with a total sample of 104 respondents, using a questionnaire as a research instrument. Data analysis technique used is Path Analysis. The analysis shows that brand image has a significant direct effect on customer satisfaction. Other results show that brand image also has a significant indirect effect on customer loyalty mediated by customer satisfaction

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PENGARUH RELATIONSHIP MARKETING TERHADAP KEPUASAN NASABAH DAN LOYALITAS NASABAH BANK RAKYAT INDONESIA DI SULAWESI TENGGARA

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2007.v11.i3.2246 ◽

2017 ◽

Vol 11 (3) ◽

pp. 411

Author(s):

Sudirman Zaid

Keyword(s):

Structural Equation Modeling ◽

Customer Satisfaction ◽

Relationship Marketing ◽

Customer Loyalty ◽

Indirect Effect ◽

Structural Equation ◽

Equation Modeling ◽

Path Coefficient ◽

The Relationship

This research is intended to test the effect of relationship marketing upon customer satisfaction and customer loyalty of the Bank Raykat Indonesia in Southeast Sulawesi. This research applies the explanatory type, namely a research conducted by giving an explanation on the symptoms produced by object of research.The samples of this research involve 200 saving deposits customer of Bank Rakyat Indonesia distributed based on purposive allocation of each Bank Rakyat Indonesia in Southeast Sulawesi. Then, they are analyzed by using SEM (structural equation modeling) by applying the program AMOS (analysis of moment structure) 4.01.The result of this research indicate that the relationship marketing have the positive and significant effect to the customer satisfaction and customer loyalty with the path coefficient each 0.556 and 0.501. And than, customer satisfaction have the positive and significant effect to the customer loyalty with the path coefficient 0.479. Beside that, the relationship marketing have the indirect effect to the customer loyalty, mediated customer satisfaction with the path coefficient 0.266.

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The impact of service quality, customer engagement and selected marketing constructs on airline passenger loyalty

International Journal of Quality and Service Sciences ◽

10.1108/ijqss-07-2016-0048 ◽

2017 ◽

Vol 9 (1) ◽

pp. 21-40 ◽

Cited By ~ 68

Author(s):

Raditha Hapsari ◽

Michael D. Clemes ◽

David Dean

Keyword(s):

Customer Satisfaction ◽

Service Quality ◽

Customer Loyalty ◽

Airline Industry ◽

Perceived Value ◽

Customer Engagement ◽

Data Set ◽

Content Type ◽

Airline Passenger ◽

The Impact

Purpose This study aims to empirically analyse the determinants of airline passenger loyalty in the high-frills Indonesian airline industry. The interrelationships among passenger loyalty, customer engagement, customer satisfaction, brand image, perceived value and service quality are identified and discussed. Design/methodology/approach The perceptions of 250 Indonesian airline passengers were used to examine the interrelationships among the constructs. The data set was analysed using confirmatory factor analysis and structural equation modelling. Findings The empirical results demonstrate that customer engagement has the most influential effect on passenger loyalty, followed by customer satisfaction. Customer satisfaction has the largest total effect on customer engagement. Service quality, perceived value and customer satisfaction also indirectly affect customer loyalty through mediation. Originality/value The integration of the customer engagement construct with the other important marketing constructs comprehensively explains the role of customer engagement on customer loyalty. The effects of the important marketing constructs on customer loyalty are not only explained in the direct relationships but also in indirect relationships through mediation.

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The Effect of Product Quality, Price Perception and Promotion on Customer Satisfaction and its Impact on Customer Loyalty of PT Makmur Jaya Agro Pesticides

Open Access Indonesia Journal of Social Sciences ◽

10.37275/oaijss.v4i1.42 ◽

2021 ◽

Vol 4 (1) ◽

pp. 157-172

Author(s):

Suharyono Suharyono ◽

Mifta Elfahmi

Keyword(s):

Customer Satisfaction ◽

Product Quality ◽

Structural Equation Model ◽

Customer Loyalty ◽

Indirect Effect ◽

Consumer Satisfaction ◽

Structural Equation ◽

Equation Model ◽

Research Model ◽

Price Perception

A B S T R A C TThis study aims to determine the direct effect of Product Quality, Price Perceptionand Promotion on Consumer Satisfaction of PT Makmur Jaya Agro's pesticides,as well as to determine the indirect effect of these variables on Customer Loyaltythrough Customer Satisfaction. As many as 160 respondents of PT Makmur JayaAgro's pesticide consumers who came from the Subang Regency area were theobjects of this study. The research model used the Structural Equation Model(SEM) with the help of analysis tools SPSS Version 26 and Lisrel Version 8.30.The results showed that Product Quality, Price Perception and Promotion had apositive and significant effect on Customer Satisfaction. Customer Satisfaction isan intervening variable dependent on customer loyalty where Product Quality,Price Perception and Promotion have a positive and significant effect on CustomerLoyalty through Customer Satisfaction. This research can be useful forcompanies to identify, plan and manage steps and policies to increase CustomerSatisfaction and Customer Loyalty..

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