Complaint Behavior as a Factor in Cruise Line Losses

Abstract

This paper examines the complaint behavior and financial loss to a cruise line that result from brand switching by their most loyal customers. These effects are based on the fact that passengers can be classified by their type of brand loyalty. Based upon the previously published works of Jones and Sasser (1995) and validated by Cartwright and Baird (1999), the following classification is used in this paper. “Apostles” are the most brand loyal customers who also bring in additional cruise passengers. “Loyalists” are considered highly satisfied customers. They are also repeat passengers, but do not bring in as many additional cruise customers as Apostles. “Mercenaries” are driven by price. This group is only loyal so long as that cruise line maintains the cheapest price. The fourth group, “Hostages,” is loyal to the cruise line because there is no viable alternative. The final group in this classification is “Guerrillas” who are Apostles who have been scorned. An Apostle becomes a Guerrilla because of an inappropriate response by the cruise line to complaint behavior. Classifications of brand loyalty will be discussed leading to the development of the five types of cruise passengers. This paper will show that inappropriate responses to complaint behavior can result in the loss of over $1,775,000 to the cruise line.

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