The Impact of Loyalty Programs on Customer Loyalty: Multiple Case Studies on Business to Business (B2B) Loyalty Programs in the Air Cargo Market

• Air cargo plays a crucial role in air transport and the globalized economy; this study investigates airline cargo's current practices and marketing tools that enhance customer loyalty. There is an obvious lack of literature on the key drivers of customer loyalty and loyalty programs in the domain of air cargo. Hence, this study examines the factors that determine customer loyalty in the business-to-business (B2B) context, which vary between financial, operational, and competitive factors, particularly for potential and existing customers. Moreover, the paper provides a deeper understanding of current strategies employed by airline cargo to attract new customers and maintain existing ones. Furthermore, the paper explores the factors that prevent airline cargo from launching loyalty programs, and examines the potential benefits and challenges of loyalty programs in this market. This dissertation follows a case study strategy to answer the research questions fully and leads to important insights into customer loyalty practices and loyalty programs in the air cargo industry. It involves four airlines' cargo wings as multiple case studies in two specific markets – the Middle East and Africa. This study employs a thematic analysis as a qualitative data-analysis approach with the help of NVivo data management software, which enhances the rigor of this qualitative data analysis procedure.This study attempts to address multiple gaps in the literature on the air cargo business and contribute to the body of knowledge in several ways. First, although airlines are among the leading industries developing loyalty programs and have learned the importance of loyalty program tools for their marketing activities, there are still many fundamental challenges that prevent airline carriers from implementing loyalty programs that serve the airlines and their partners. Second, although the literature on loyalty programs has attracted many researchers in the marketing industry, loyalty program studies on air cargo are almost absent; therefore, to the best of our knowledge, this research appears to be the first of its kind focusing on customer loyalty, in particular loyalty programs in the air cargo industry. Third, while academic research in the context of air cargo focuses mostly on business-to-customer (B2C) loyalty programs, these studies have paid scant attention to business-to-business (B2B) loyalty programs. Moreover, the findings of this research confirm that loyalty programs’ positive effect is considered a supplementary contribution to the academic field of loyalty programs.This study has managerial implications for practitioners in the airline cargo industry: first, notwithstanding the disruption of the COVID-19 pandemic in almost all industries, particularly the airline business, it is evident that air cargo played a significant role in supporting airline recovery from the pandemic. On that account, the airfreight business shows beyond doubt that it should receive more attention from airline management. Second, this study focuses particularly on the factors that contribute to loyalty to particular airlines and the factors that influence customers' loyalty to certain airline cargo carriers. Simultaneously, the paper explains these factors and distinguishes between potential and existing customers. The factors identified are helpful and provide insight into the decision-making processes underlying loyalty on the service side of the business for different market segments. Thus, it sheds light on these influencers, which may provide insights for airline cargo managers to take the necessary action and develop appropriate marketing strategies for each segment.Third, this study contributes to air cargo customers, particularly freight forwarders, who are considered the main customers of the air cargo business. Loyalty programs' rewards could be a good alternative incentive scheme by compensating these freight forwarders instead of providing incentives only to the big customers. These benefits can be gained and redeemed from the airline, its alliances, and partners. Moreover, this study reveals that airline customers could get better, faster responses because of loyalty programs. These programs will be good opportunities for air cargo customers to establish better relationships with the representatives of airline cargo carriers. It will create new direct avenues for communication and access to reach airline cargo with high personal involvement, ultimately improving the industry’s service towards its customers. Finally, air cargo loyalty programs will easily reflect the performance of all air cargo customers and will obviously demonstrate and differentiate loyal customers. Consequently, loyal air cargo customers will have more bargaining power to demand more benefits and incentives, and even receive customized service from airlines.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

customer loyalty

loyalty programs

airline cargo

factors that enhance loyalty

challenges of loyalty programs

benefits of loyalty programs

Industrial Marketing

Industriell marknadsföring

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