Airline brand awareness and perceived quality effect on the attitudes towards frequent-flyer programs and airline brand choice - Moderating effect of frequent-flyer programs

Abstract

Understanding customer behaviour is critical to retaining loyal customers and attracting new ones when considering an airline brand. Most airlines have frequent-flyer programs (FFPs) meant to entice passengers' decisions regarding airline brand choice. However, the determinants of the attitudes toward FFPs and their effect on airline brand choice are not well documented. This study examined the influence of airline brand awareness and perceived quality on travellers' attitudes towards frequent-flyer programs and airline brand choice. Furthermore, the study investigated whether the attitudes towards FFPs indirectly (moderates) influence the causal relationship between airline brand awareness and brand perceived quality on airline brand choice. Social Exchange Theory (SET) guided the study. An explanatory research design was adopted. Primary data was sourced through the deployment of a structured online survey. Confirmatory factor analysis, composite reliability, and Cronbach alpha coefficients were assessed to determine discriminant validity and reliability of the measurement instrument. Afterwards, Pearson's correlation, simple linear, and multiple hierarchical (step-wise) regression models are estimated to test the conceptualised model using SPSS 27 software. The findings indicate that airline brand awareness and perceived quality influence travellers' attitudes towards FFPs and airline brand choice. Moreover, attitudes towards FFPs positively influence airline brand choice. Additionally, attitudes towards FFPs have a conditional (moderating) effect on the relationship between airline brand awareness and airline brand choice and between airline brand perceived quality and airline choice. The results indicate that high attitudes toward airline FFPs equate to higher airline brand choice despite low airline awareness or even when the airline's quality perception is evaluated as inferior. The findings of the study have significant theoretical and managerial implications.