Factors Affecting Customer Retention in the Airline Industry

Abstract

Purpose: This study empirically investigated the factors that affect customer retention in the airline industry in North Cyprus. These factors were service quality attributes, perceived safety, customer satisfaction, loyalty reward program, relationship commitment and customer loyalty. The study also investigated four different groups for purposes of travel (business, education, vacation and family visit) in the empirical model.

Methodology: A descriptive approach was chosen to conduct this research. A quanhip between customer retention and the related study factors; however, not all of these relations are significant. The results also showed that the different purposes of travel had different influences on the variables regarding the positive and significant relations between them. Some independent variables had a negative effect on the dependent variables.

Conclusions: This research was limited to one group and place: the students of Eastern Mediterranean University in North Cyprus.

Originality: This study connected the retention, loyalty, satisfaction and service quality factors as attributes. In addition, this research was the frst to include other independent factors affecting satisfaction and loyalty in a comparison between four different groups regarding the purpose of travel in the airline industry.