Abstract

Based on the social exchange theory, this study proposes a conceptual model to understand the relationship between airline customer equity, brand satisfaction, emotional customer-brand relationship, and brand loyalty. The goals of this study are threefold: 1) to examine the direct effect of customer equity on brand satisfaction, emotional customer-brand relationship, and brand loyalty; 2) to identify the indirect effect of brand satisfaction and emotional customer-brand relationship on the relationship between customer equity and brand loyalty; and 3) to verify the moderating effect of switching costs in financial, procedural, and relational terms. To validate this study, a survey was conducted among users of full-service airlines using an online survey company. Twenty-eight questionnaires with missing values or insincere responses were excluded, leaving 392 out of 420 for analysis. The study found that an airline's customer equity has a direct effect on brand satisfaction and emotional customer-brand relationship, and an indirect effect on brand loyalty. Moreover, financial and relational switching costs were found to have a moderating effect. The study confirms that brand satisfaction and emotional customer-brand relationship mediate the relationship between customer equity and brand loyalty in airlines. Additionally, it was confirmed that financial and relational switching costs act as barriers to switching.

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