The Relationship Between Customer Equity &amp; Its Drivers, Purchase Intentions and Switching Cost. A Study on Traveling Industry in Pakistan

Sohail Akhtar

doi:10.7176/ejbm/11-4-04

Abstract

The key purpose of current research is to investigate the relationship between customer equity, purchase intentions by moderation effect of switching cost. Furthermore this research investigated the relationship between Value Equity, Brand Equity and Relationship Equity toward the customer equity and customers purchase intentions. The data were collected from air passenger at international airport Multan via self administrative questionnaire. The Reliability, KMO, Correlation and Regression analysis used to measure the data. The results indicate that, there is significant relationship between customer equity and purchase intentions, and impact of Value, Brand and Relationship Equity on customer equity and purchase intentions found positive relationship. While Switching Cost also affect the relationship between customer equity and purchase intentions. The present research focuses on services industry there is need to test the model in manufacturing industries for more appropriate results. A study on Traveling Industry in Pakistan relationship between Customer Equity & its drivers, purchase Intentions and Switching Cost has been not conducted before. In Pakistan traveling industry facing switching cost barrier and current research conducted to fills this gap. Keywords: Customer equity, Value equity, Brand equity, Relationship equity, Purchase intentions Switching cost. DOI : 10.7176/EJBM/11-4-04

Highlights

Airline market has become an important component of the traveling industry in most of the countries
5.4 Correlation Matrix Correlation matrix indicates the relationship of variable i.e customer equity, brand equity, value equity, relationship equity, purchase intention and switching cost
The current study examines that how customer equity and its drivers affected the brand purchase intentions by moderation taking into consideration role of switching cost

Summary

Introduction

Airline market has become an important component of the traveling industry in most of the countries. Airlines that adopt changes slowly certainly suffer the losses In such circumstances, having solid customer equity strategies are becoming more and more important. It is imperative for Airline marketers to know, which equity can rely on increasing customer behavioral intentions through specific customer equity drivers. The brand equity is one of the most familiar customer equity drivers; this construct capture consumers‟ psychological connection to Air passenger (Wang, 2014; Chen and Chang, 2008). With the increase of competition in airline industry by unique products and services, it has become highly necessary to analyze the effect of equity toward purchase intentions. The present study examine that how customer equity relates to purchase intentions and customers purchase behavior in a airline services setting toward the purchase intentions

Literature review

Determinant of Customer Equity

Research Hypothesis H1

Variables

Analysis and findings

Reliability analysis

KMO and Bartlett Test

Switching cost

Summary

Moderation analysis

Findings

Conclusion