DOES BRAND ATTITUDE MEDIATE THE EFFECTS OF PERCEIVED SERVICE QUALITY ON CUSTOMER LOYALTY? AN EMPIRICAL STUDY OF LOW-COST CARRIERS IN THAILAND

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Nuchjarin Intalar
Somcane Yodpram

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As the growth of the low-cost airline market has been rapidly increased, low-cost carriers (LCCs) have to compete with each other to gain a higher share in the market. LCCs need to build customer loyalty by offering excellent service quality and creating a good attitude toward its brand. This study explores the factors affecting customer loyalty in LCCS in Thailand by focusing on brand attitude and perceived service quality. It also explores whether the effect of perceived service quality is mediated by brand attitude on customer loyalty. Valid data was collected from 246 passengers who used service from low-cost carriers. This study employed a structural equation modelling to test hypotheses. The findings show the statistically significant direct relationships among perceived service quality, brand attitude, and customer loyalty. Moreover, the findings show that the effects of perceived service quality are partially mediated on customer loyalty through brand attitude. The implications of the findings noted that LCCs can identify a pin-point in the customer journey and collect related data to create data-generated profiles to gain insight about passengers’ behaviour and preferences to design customized experiences for each customer.

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