Airline brand equity: do advertising and sales promotion matter? An empirical evidence from UAE traveler’s perspective

Abstract

Purpose This study aims to examine the roles of advertising (ADV) and sales promotion (SP) in creating airline brand equity (BE) in the UAE, and to test the mediational effect of customer perceived value on the proposed relationships. Additionally, the study examines the outcomes of airline BE (i.e. trust, satisfaction and loyalty). Design/methodology/approach A structured and self-administered survey was used targeting 234 passengers, from which 197 were valid for the analysis. Exploratory and confirmatory factor analyses were used to assess the research constructs unidimensionality, validity and composite reliability. Findings The empirical findings support the direct relationship between ADV and BE. Perceived value fully mediates the effect of SP on BE. In addition, BE positively affects trust, satisfaction and loyalty. Research limitations/implications Future research could investigate BE and perceived value as multidimensional constructs. Additionally, future research should expand the effect of other variables such as airline type, airline class and other marketing mix elements. Practical implications The findings from this research highlight the importance of both ADV and sale promotion in enhancing airline BE, and the pivotal role of perceived value. Originality/value The originality of this research is highlighted in conceptualizing a parsimonious model of the preceding constructs (i.e. ADV, SP, customer perceived quality) and subsequent constructs of BE (i.e. customer trust, customer satisfaction, customer loyalty), which has never been investigated collectively in one model in the literature particularly in the airline’ context of emerging economies such as UAE.