Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

Managerial Implications 
Although the study is primarily theoretical, it is believed that the revealed relationships may provide a 
useful framework for managerial decision-making and problem diagnosis. This framework suggests that cruise 
management should move beyond satisfaction, the obvious requisite of loyalty, and improve customer retention by 
increasing customers’ investments and providing superior service quality and unique experiences.
This study found that investment size was an important predictor of cruise passengers’ loyalty. Thus, it is 
recommended that cruise lines should tangiblize customers’ investments. To this end, cruises may provide 
immediate rewards for patronage (many cruise lines have been doing this in their customer loyalty programs), build 
relationships with customers by organizing customer clubs and using database marketing, and design customized 
services. These tactics should help bind customers with service providers.
The quality of alternatives issue stresses the importance of being innovative and offering unique 
experiences. As indicated, customer defection may occur when passengers perceive other cruise lines’ quality 
superior or other leisure options more appealing. Since technical aspects of a cruising service are unlikely to be 
major differentiators between cruise lines (Zeithaml, Parasuraman, & Berry, 1990), cruise management may focus 
on improving performances on specific service attributes (e.g., food, entertainment, ship condition).