Abstract

Enhancing customer loyalty has become a popular topic for managers, consultants, and academics. The arguments in support of loyalty are simple to understand. Loyal customers are reported to have higher customer retention rates, commit a higher share of their category spending to the firm, and are more likely to recommend others to become customers of the firm. (Reichheld, Sasser, 1990; Zeithaml, 2000, “Keiningham, et al. 2007)
Traditionally, marketing activities have focused on success in the product marketplace by examining the physical aspects of products and services such as quantity, quality, functionality, availability, accessibility, delivery, price and customer support. More recently, marketing managers have shifted their emphasis to creating value for their customers (Clutterbuck, Goldsmith, 1998; McAlexander et al., 2002, Mascarenhas, et al. 2006). So there are very limited researches for customer value affect customer loyalty? Is customer value affecting customer loyalty? This research focused determine the effects of customer value, which is perceived by domestic line passengers based on the services offered by the airline company preferred, on the level of loyalty towards airline companies.
This study was carried out based on descriptive research model. Multiple regression analysis was employed in the study so that the extent to which the level of passenger satisfaction about each of the services offered by airline companies influences the level of passenger loyalty to airline companies can be determined. Also, logistic regression analysis was conducted to determine the services playing a role in meeting passenger expectations by airline companies.

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