Impact of word of mouth on customer equity and retention
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Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
UMT, Lahore
Abstract
Aim
“The aim of the study is to find the impact of word of mouth on customer retention
and equity on the passengers of Pakistani airlines”.
In these days where the world is progressing day by day and with the help of
technological advancement and marketing strategies different business are
progressing day by day. If you look at the airline industry which has become the
largest source of transportation worldwide there is a greater opportunity of
generating revenue and enhancing the economic growth of the country. Such
researches are needed on Pakistani airlines so that they can acquire the strategies
which can be used in order to enhance their business and attract their customers. In
the previous studies it is shown that it is more expensive acquire a new customer
compared to finding another one. So, researches like this help Pakistani airlines to
build new strategies.
Method
Online survey has been done for the collection of data in which 30 questions
regarding five variables were asked from the customers of Pakistani airlines
including PIA Serene Air and Air blue. 225 respondents from the three airlines
participated in the survey. Then the data is examined and analyzed using SPSS
statistical software.
Findings
The data was taken from the respondents and then analyzed. The data shows the
impact of word of mouth on customer satisfaction, Customer Equity of the
customers, safety perception and Customer Retention. The findings shows that all of
these variables have significant relation with the word of mouth and they corelate
positively with each other.
Conclusions
After finding the study came with the conclusion that the impact of word of mouth is
very significant and cannot be ignored so if the airlines want to succeed in their
business and if they want to increases the customer equity and retain the customer
then it is very important that they spread positive word of mouth about them.
Key words: Customer retention, Customer equity, Word of mouth, Pakistani airlines
and Customer Satisfaction