Customer perceived value of frequent flyer programmes: An empirical study of airline passengers in China

This chapter aims to examine Chinese airline passengers’ perceived value of the frequent flyer plan (FFP), and its impact on their loyalty. The study develops and tests a conceptual model of three dimensions of FFP value (economic, emotional and social), and passenger loyalty towards FFP (programme loyalty) and the airline (brand loyalty) with a sample of airline passengers in China. The results indicate that emotional value has a positive impact on both programme loyalty and brand loyalty; economic value has a positive impact on programme loyalty only; social value has no direct impact on either programme loyalty or brand loyalty. Further test of a revised model shows that the impacts of social value on passenger loyalty are indirect, i.e. they are fully mediated through emotional value. This chapter provides both the theoretical implications to advance consumer research and the practical implications for airline marketing.