Abstract

When purchasing airline tickets, consumers are confronted with numerous uncertainties. Airlines actively utilize brands to reduce consumers' opinions on this matter. The research model was presented in order to demonstrate that the brand credibility of the global airline alliance is a signal that reduces uncertainty in consumers' purchasing decisions and influences their purchase intentions. The relationship between brand credibility, decision convenience, brand equity, and purchase intention was validated using structural model analysis, and the indirect effects of brand credibility and decision convenience were validated using bootstrapping. First, brand credibility had a positive effect on brand equity by enhancing brand utility and demonstrated a positive relationship with decision convenience by reducing the effort and time spent by consumers during the purchasing process. Second, the brand credibility of the airline alliance did not have a direct impact on the purchase intentions of consumers. However, brand equity and decision convenience were found to have indirect effects. This study has academic value because it explains brand credibility in the context of brand alliance using signal theory. Even in brand alliances, brands' consistent and clear signals served to reduce consumer uncertainty. Moreover, joint promotional activities between the airline alliance and its member airlines will be a differentiating strategy for enhancing brand competitiveness in the market. Differentiated services in the market include marketing activities such as frequent flyer benefits and price discounts promoted by individual airlines, as well as the integrated frequent flyer benefits provided by airline alliances, the convenience of connecting flights, and their members' lounge use. It will be a strategy with the potential to enhance the cross-brand advantage.

Full Text
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