Effect of “Single” vs. “Multiple” possession and usage of loyalty programme on re-purchase intention behavior of airline frequent passengers in India

Abstract

Purpose: This paper tries to find out the effect of single vs. multiple possession and usage of frequent flyer programme by frequent passengers on their re-purchase intention behavior in India. Design/methodology/approach: This paper tested the hypotheses, whether the variations in possession level of frequent flyer programme influences the relationship among the selected antecedent variables such as passengers’ satisfaction with the loyalty programme, passengers’ level of trust in the airline and the perceived brand image on the re-purchase intention behavior of frequent passengers. A structural equation model depicting the re-purchase behavior of frequent flyers were developed and tested. Findings: There exists an overall statistical validity of the model build-up by using structural equation modeling. Significant differences are observed in brand and trust variables in influencing re-purchase intention behavior of frequent passengers. This finding was further verified in correspondence to the variations in loyalty programme status and possession levels of loyalty programme memberships. Practical implications: Re-purchase behavior of passengers holding single and multiple loyalty programme memberships were compared and drawn implications for the airlines to guesstimate re-purchase intentions of regular passengers. Originality/value: The empirical findings of this study proves that there is a tendency to shift from single to multiple possessions of airline loyalty memberships while the frequent passengers progress on their travel needs. This study proclaimed that passengers possessing single loyalty programme are more influenced by brand image of the airline where as passengers using multiple loyalty programmes are by and large accustomed by means of the trust in the airline services than its brand image.

Keywords

• Frequent flyer programme, airline loyalty, airline brand image, passenger trust, re-purchase behavior