Can relationship marketing be used as a tool of value creation? : an analysis on the local airline sector

Abstract

The purpose of this dissertation is to analyze if the relationship marketing techniques used by the airlines are still seen as value creation for the customers in a highly competitive services industry. The author goes about to try and establish the key factors in the value bundle for customers when choosing an airline and how these factors can influence customer attraction and also retention. Literature from the Airline Industry and from the marketing point of view was critically reviewed. This helped to author to design a questionnaire to collect mainly quantitative data and also some qualitative data, to answer the aims of this study that is how relevant is relationship marketing as a component of value in the airline industry. The questionnaire was distributed to the evening and part-time students at the University of Malta, the data collected from this questionnaire was compared and contrasted with the relevant literature reviewed. The results obtained shed a light that loyalty has decreased in the airline sector especially since it has become a highly competitive market in recent years. Also the ticket prices are seen as one of most important components for customers. However relationship marketing techniques are still relevant and make an impact in the airline industry, as for some customers it is still seen as something that create that extra value on their flights