Factors contributing towards Airline Customer Loyalty in Kenya: A Case Study of Kenya Airways (KQ)

A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration (MBA)The general objective of the study was to examine the factors contributing towards airline customer loyalty at Kenya Airways. The specific objectives that the study were; to examine how customer satisfaction influence customer loyalty towards Kenya Airways; To determine the extent to which perceived value and quality contribute to customer loyalty towards Kenya Airways; To assess how corporate image influences customer loyalty towards Kenya Airways. The study adopted a descriptive research design. The study sampled 340 individuals who were customers of Kenya Airways. The study assumed a simple random sampling approach and used structured questionnaires to collect relevant data from the research participants. The study used both descriptive and inferential statistics to analyze the data obtained from the survey. Chi-Square tests, correlations and cross-tabulations were calculated to make deeper sense of the data obtained. The researcher used Statistical Package for Social Scientists (SPSS) to analyze the data. The study found that several customers’ satisfaction had a great influence on customers’ loyalty to KQ. The study found that a variety of elements of customer satisfaction, including the variety and quality of food offered, the presence of professional and courteous staffs at KQ, the departure and arrival times, assistance for disabled and special needs persons while aboard, the attitude of the staff were critical factors influencing customer loyalty. The study also determined that the manner that KQ takes care of its customers when flights are delayed or canceled were also fundamental in determining customer loyalty to the airline. The study also found that perceived value and service quality were equally crucial in affecting customer loyalty to KQ. Among the attributes of perceived value and service quality that were found to influence customer loyalty included, the tailoring of KQ services to meet customer’s specific or unique needs, the manner in which KQ employees instilled confidence on customers throughout their flight experience, the politeness of the cabin crew and the competence of the service crew to react to emergencies. The study found further that the manner in which KQ informed its customers on key services while in flight, the manner the airline handled customers luggage and assured the safety of luggage and the airlines ticket prices were significant factors that influenced the loyalty of customers to the airline. The study determined that KQ’s corporate image was also significant in affecting customer loyalty to the airline. The study found that certain image attributes including the exterior and interior design of the plane, the design of KQ’s toilets and seats were attributes of the airline’s corporate image that influenced the loyalty of its customers. Other image factors that the study found to have a significant bearing on customer loyalty to the airline included; uniform color of the cabin crew, the neatness or cleanliness of the crew, the appearance of utensils, the kind of aircrafts that the airliner used and the company’s reputation within the Kenyan society. The study concludes by postulating that customer satisfaction has a huge impact on customer loyalty. Satisfied customers make the most loyal customers. It argues that the role that perceived value and quality plays in customer loyalty to KQ is highly significant. It reiterates that the image that KQ has created for itself in the minds of its customers is influential in determining the loyalty of its customers. The study recommends the following; that the management of KQ should introduce several, unique packages that appeal to individuals from different age groups to enhance customer satisfaction. It suggests that the airline must appreciate the nature of the environment in which it operates as one which is highly competitive. The study further proposes that the airline must take radical and strategic steps to ensure that it maintains its reputation as the pride of Africa. The study also advises that future researchers should conduct more research on the factors that influence customer loyalty in the airline industry