Impact of perceived service on brand image and repurchase intentions of Thai passengers towards low cost carriers

Abstract

Since the application of the Open Sky Policy in 2002, Low Cost Carriers (LCCs) have been gaining a progressive market share in Thailand. However the numbers of academic researchers in this field are limited, the researcher hence focused on Thai passengers traveling on LCCs to explore new knowledge. Based on a comprehensive literature review, the conceptual model investigated whether the perceived service quality affects airline brand image and repurchase intention of Thai passengers was developed and tested in LCCs sector. Data from four hundred travelers was obtained and statistically analyzed; a regression analysis aided in examining the impacts of tested variables. The results revealed that the perceived service quality of Thai passengers had a significant impact on the LCCs’ brand image, with the empathy aspect being the most critical factor. Besides, the carriers’ brand image proved to have an influence on passengers’ repurchase intention. The brand evaluation dimension provided the strongest support, whereas brand experience, brand expectation and brand strength were also statistically significant in explaining Thai passengers’ repeat patronage.