Identifying Characteristics of Airline Frequent-Fliers in Australia: Implications for Market Segmentation, Target Marketing, and Product Differentiation
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1998-01-01
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Abstract:Airlines can cultivate new business, enjoy repeat patronage through progressively attractive awards given directly to frequent fliers, deter emerging airlines from entering established markets, and compile the demographic profiles and travel characteristics of their members through sign-up procedures and computerized flight logins. This paper examines the frequent-flier membership profiles of airline travelers in Australia, their demographic characteristics, behavioral discriminants, and attitudinal differences using standard statistical techniques and stepwise canonical multiple discriminant analysis, and then advances the implications for market segmentation, targeting, and product differentiation. It concludes by noting that the same methodology can be used for many service-oriented industries characterized by strong customer loyalty engendered by repeat patronage reward programs. Endnotes. 14p.
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