Frequent flyer programmes: Is it a relationship, or do the schemes create spurious loyalty?

Abstract

This paper is an extract from a comprehensive study of airline frequent flyer programmes in Australia. It was found that the schemes create spurious loyalty and that repeat purchase is not a proxy for customer satisfaction or commitment. Loyalty is a more complex issue and factors such as the conditions and circumstances in the relationship were found to be important. It was concluded that the schemes are not meeting their objectives. Randall