Exploring the Impact of Airlines Service Quality on Customer Loyalty: Evidence from Taiwan

Abstract

The purpose of this paper tries to explore what are the key factors to influence customers to choose an airline. The research assesses the service quality, brand image, perceived value and customer loyalty on Taiwan-based airlines. The study analyzes the data by applying structure equation modeling (SEM) from valid 560 questionnaires surveyed in the airports. To validate the measurement model, this study checks scale reliability, overall model fit, and validity using the CFA technology. Moreover, the two major indicators including convergence validity and discriminate validity were employed to assess scale validity. Many prior studies had proved that brand image has a positive influence on perceived value, this study had validated that perceived value has also a positive influence on brand image. The brand image assists in the relation between service quality and loyalty, and perceived value strengthens their relationship. Furthermore, brand image and perceived value mediate the effect of service quality on customer loyalty to display a distal effect. The strategic implications for the effects of service quality lead to repurchase intention and loyalty inclination, which are contributed to both scholarly advancement of knowledge and the state of managerial practice.