Abstract:
Today, in the competitive market, the customer retention has become a challenge for every
organization. Therefore, the organizations need to build the strategies in order to achieve their
organizational goals and to attain the desired profitable outcome. Due to the significance of
the customer retention practice and the role of xyz airlines towards the nation‘s
economy, this study intends to explore possible factors that influence service-oriented
xyz airlines‘ customer retention practices and their subsequent impact on the performance of
the business.
A quantitative method and a survey questionnaire were used to investigate the problem.
Hundred respondents were sampled by using a random sampling technique. Exploratory data
analysis and correlation analysis were used. The analysis of the study clearly exposed that all
the six constructs used in the study namely; customer satisfaction, switching cost, price
perception, customer loyalty, perceived service quality and customer service are significantly
and positively associated with business performance. Despite limitations like generalizability,
the findings of this study provide evidence that the management of XYZ airline are required
to work closely with these strategies, especially Airline Service Quality and Airline
Switching Barriers. Also, it is essential to fine-tune them to reflect the exigencies of the time.
The customer centered companies should always be familiar with the needs and demands of
their customers. The companies should always evaluate their performance and understand
where they actually stand according to the customer‘s demands and perceptions. Now, the
Airline Industry enthusiastically focuses on marketing strategies in order to increase the level
of customer retention, hence the profit level of the company will increases. Therefore, as a
strategy, XYZ airlines can offer different discount packages and promotions by making
agreements with selected business firms, so as to retain the customers.
