Empirical Study Of The Impact Of Frequent Flyer Program On Customer Loyalty

Customer loyalty study has always been a hot topic of modern marketing management. What’s more, now the focus of marketing is changing from4P marketing theory to4C and4R.So relationship marketing has become the focus of marketing and the research of customers is of vital importance. Frequent Flyer Program is produced as a means to enhance customer loyalty. Thus, Frequent Flyer Program is a kind of Customer Loyalty Programs. Now more and more airlines have set up frequent flyer program. But that need for further research is that how it works and what’s its impact on customer loyalty.In this paper, customer loyalty programs’ research and customer loyalty theories were reviewed. Based on the survey results, this paper studies the mutual relationships of frequent flyer program perceived value, service quality, customer satisfaction, relationship of trust and customer loyalty. Then, the frequent flyer program’s impact on customer loyalty model is constructed. Finally, an empirical study was conduct to verify the correctness of the model.The article’s empirical research was achieved through structural equation modeling approach. First, the hypothesis what has been put forward were verified. Then, according to the modified method of structural equation model, I modified the original model. Finally, the optimal model was drawn. The conclusion is that the perceived value of frequent flyer programs can affect customer loyalty through direct and indirect means. Indirectly ways include through relationship of trust or through service quality and customer satisfaction. The research results provide empirical guidance for the aviation enterprise to develop frequent flyer program. Based on the above analysis, in the end, the major problems existing in the frequent flyer programs and the key elements affecting success of frequent flyer program are put out from the perspective of airlines. Moreover, based on empirical findings and the current status, the paper proposes some targeted recommendations for the airlines’operators. All of these works provide a practical guide for the improvement of Frequent Flyer Program.