The Impact Of Price Perception On Customer Loyalty In The Airline Context

Abstract

Project Period : 2 years Nowadays, consumers are becoming more value conscious and focusing on price and value as the primary reason in obtaining product and service. Thus, the impact of price perception on airline loyalty was aimed to examine in this study. Moreover, numerous empirical studies have extensively investigated perceived value and commitment as a unidimensional measure in the product and service setting. However, research scholars argued that this unidimensional conceptualization lacks validity and fails to provide marketing practitioners specific direction for improving perceived value and commitment. Thus, the impacts of the multi-dimensional conceptualization of perceived value (quality, emotional response, monetary price, behavioral price and reputation) and commitment (informational complexity, position involvement and volitional choice) along with brand trust and brand affect on airline loyalty were also investigated. The association between loyalty constructs and loyalty consequences was also examined. In addition, the moderating effect of uncertainty avoidance and price perception on the aforementioned was also taken into account. The self-administered questionnaire was employed as the research means in collecting data from both Thai and international samples.The empirical results partially supported the significant impact of perceived value, commitment, brand trust and brand affect on airline loyalty as hypothesized. Consistent with previous studies, the impacts of loyalty constructs on loyalty consequences were significantly supported. The moderating effects of uncertainty avoidance and price perception on the aforementioned relationships were significantly apparent. Implications of the results including the development and improvement of perceived value, commitment, brand trust, brand affect, uncertainty avoidance and price perception are discussed. Future researches should focus on examining the impact of other pricing factors on airline loyalty.

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