Abstract:
This research investigates airline brand equity in a sequential, mixed method
study. The initial, exploratory study undertaken with the focus groups identified
relevant issues that influence airline brand equity. The secondary associations
of airline brands are often related to the airlines’ country of origin and culture or
the intangible cues that are used in airline advertisements. These intangible
cues and secondary associations play an important role in triggering airline
brand awareness and the unique brand value proposition of each airline. The
questionnaire-based study shows that the structure of airline brand equity is
comprised of three factors. The first factor highlights the importance of airlines
being able to provide suitable and innovative products and consistently good
service. The second factor is a reflection of the first factor, i.e. airlines that can
deliver both suitable tangible products and good services will be able to
establish a large base of loyal customers. The third factor highlights the
importance of establishing brand awareness. Based on the structure of airline
brand equity that was found, there are four clusters of airline passengers with
similar airline brand perceptions, namely: ‘Loyal customers’; ‘Asking for
consistency customers’; ‘Hard to please customers’; and ‘Difficult to talk to
customers’. The determinant attribute analysis shows that the determinant for
the choice of airline brand is different. Each airline is different in its branding,
products and service strategies. This suggests that the ways in which each
airline brand can meet the needs of each group of airline passengers will also
be different.
This research demonstrates that the structure of airline brand equity for fullservice
and low-cost carrier brands is different. For full-service carrier brands, it
is the delivery of suitable tangible products and services that encourages
loyalty. In contrast, when price is the most influential determinant attribute, it is
the low-cost carrier brands’ resources and ability to offer consistently low fares
that helps them to establish a large base of repeat customers.
