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VGU RESEARCH REPOSITORY


Please use this identifier to cite or link to this item: https://epub.vgu.edu.vn/handle/dlibvgu/872
Title: Factors effecting customer loyalty in airline industry in Vietnam: a comparison between full service carrier and low-cost carrier
Authors: Nguyen Thi Thuy 
Keywords: Customer loyalty;Airline industry;Full service carrier;Low-cost carrier
Issue Date: 2016
Publisher: Vietnamese-German University
Abstract: 
In today competitive business environment, the Airline companies acknowledge that they must keep long-term relationships with valuable customers in order to win the market. Therefore, this study is conducted to investigate the loyalty of passengers in Full Service Carrier (FSC) and Low-Cost Carrier (LCC). Perceived service quality and perceived value were applied as loyalty drivers. Quantitative method was used in this study. Data was obtained from 500 travelers in both Vietnam Airlines (VN) and VietJet Air (VJ) through interviews and survey questionnaires at some travel agencies and two largest international Airports Noi Bai and Tan Son Nhat. Findings revealed that both service quality (SQ) and perceived value (PV) significantly impacted on the passenger’s choice toward Airline in Vietnam. Additionally, the behavioral intentions of passengers in VN and VJ were accurately different. Among five dimensions of service quality tangibility, assurance, responsiveness
and reliability strongly predicted customer loyalty in VN context, while empathy, assurance and reliability had significant influence on customer loyalty in VJ context. In term of perceived value, quality and emotional value were the two most important predictors of customer loyalty in VN context, while price was the significant factor in VJ context. In general, service quality and perceived value had stronger influence on customer loyalty in VN compared to VJ. The results of the study contributed to VN and VJ in order to have a better understanding of their customer’s perception about their current service. Both Airlines additionally can use the findings for service quality improvement to get back the loyalty of their customers.
URI(1): http://epub.vgu.edu.vn/handle/dlibvgu/872
Rights: Attribution-NonCommercial 4.0 International
Appears in Collections:MBA

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