Analyzing the Case of VietJet Air to Assess the Vietnamese Customers’ Airline Brand Equity: An Empirical Research Study

Nhu-Ty Nguyen

doi:10.28924/2291-8639-18-2020-594

Abstract

From the recent marketing incidents of a typical airline company, this research study would like to analyze the sources and consequences of Airline's Consumer Brand Equity by using Vietjet Air Vietnam as an example. To this end, we developed an empirical study based on the Chen & Tseng [5] Brand Equity airline model in Taiwan, using structural equation modeling (SEM) to investigate the interrelationship between the dimensions of the components of brand equity in the airline industry and how they directly affect brand equity. With 307 valid respondents, the questionnaire was designed to include 3 age groups: 18-25, 26-35, 36-50 and older than 50 years. The participants from some universities and some firms in Ho Chi Minh City involved in conducting the survey. The findings suggest that Brand Equity factors in their interrelationships have a positive effect. In addition, Brand Image is a direct factor that has the most influence on airline brand equity, following perceived dimensions of quality and brand loyalty. This research also has relevant implications for Vietjet marketing managers, who should reinforce their brand equity in the future to attract more customers.

Highlights

VietJet Aviation Joint Stock Company (VietJet Air or Vietjet) known as an airline with cheap faresin Vietnam, it was established as the first privately owned airline
The findings suggest that Brand Equity factors in their interrelationships have a positive effect
Brand Image is a direct factor that has the most influence on airline brand equity, following perceived dimensions of quality and brand loyalty

Summary

INTRODUCTION

VietJet Aviation Joint Stock Company (VietJet Air or Vietjet) known as an airline with cheap faresin Vietnam, it was established as the first privately owned airline. With images contrary to the acceptance of Vietnamese people from the use of bikini models in anoffensive way, VietJet's brand equity have been negatively affected, especially is brand image Consumers think they will be loyal to the airline based on strong brand image ([39]; [25]; [27]; [41]). This research is to investigate an VietJet Air’s customer-based brand equity including four dimensions: brand awareness, brand loyalty, brand image, and perceived quality. According to Chen & Tseng [5] model in customer-based airline brand equity, this section provides a description of this model made up of four dimensions: brand awareness, brand image, perceived quality, and brand loyalty. Brand equity will be affected directly and positively by brand loyalty ([18]).The following hypothesis that based on those is proposed in this study: H8: Brand loyalty has a positive effect on brand equity

RESEARCH METHODOLOGY

Reliability Test

Confirmatory factor analysis