Analysing customer based airline brand equity: Perspective from Taiwan

Thakshak Article Analysing customer based airline brand equity: Perspective from Taiwan Future Business Journal Provided in Cooperation with: Faculty of Commerce and Business Administration, Future University Suggested Citation: Thakshak (2018) : Analysing customer based airline brand equity: Perspective from Taiwan, Future Business Journal, ISSN 2314-7210, Elsevier, Amsterdam, Vol. 4, Iss. 2, pp. 233-245, https://doi.org/10.1016/j.fbj.2018.07.001 This Version is available at: https://hdl.handle.net/10419/246603 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/4.0/ HOSTED BY Contents lists available at ScienceDirect Future Business Journal journal homepage: www.elsevier.com/locate/fbj Analysing customer based airline brand equity: Perspective from Taiwan Thakshak UCN European Programmes, Innsbruck, Tyrol, Austria ABSTRACT This research develops and examines a customer-based Airline brand equity (CBABE) model and examines the mediating effects of Airline brand reputation on the relationship among CBABE and Airline brand trust. By means of structural equation modelling (SEM) analysis, the four dimensions of CBABE–Airline flight service quality, Airline brand affect, Airline brand awareness and Airline brand association–are recognized to have positive effects on Airline brand reputation. Besides, it is established that Airline brand affect, customer self-congruence, Airline brand awareness and Airline brand reputation has a positive effect on Airline brand trust. The data collected was analysed using 7 –Likert scale instrument and this research provides insight into effective strategies that can be used to increase Airline brand trust and protect Airline brand reputation for an Airline. Based on the outcomes obtained from the relationship between CBABE, Airline brand reputation and Airline brand trust, the study confirms substantial difference among the groups deliberating to the customer purpose of air travel that is associated to CBABE dimensions. The findings provide enriched understanding of intricate psychological process involved in air travel customer selection criteria for an Airline or Airline industry. 1. Introduction Basic principle of brand equity is to add and reproduce a particular qualities the brand has projected, which needs to be consistent in the viewpoint of the customers. These brand projections are in the form of public communication, various marketing techniques that establish relationship with the customers (Arvidsson, 2006). It is important to build independent relationship with the customers that has propensity of great pay-offin the form of customer satisfaction, return customer, loyalty and word of mouth advertising (Cheng, Chen, & Chang, 2008). Airline industry has given importance to service as vital offering and it is important to manage brand reputation and build brand trust. Managing long lasting customer relationship and loyalty in the Airline brand need to participate in relationship and marketing approach. Sole transactional marketing approach loses the benefit of repeat bookings and brand loyal customers. In the Airline Industry, relationship amongst purchase intentions, brand preference and brand equity was examined on customer based brand equity (Chen & Chang, 2008). Author Chen and Tseng (2010) conveyed that significance of customer based brand equity (CBBE) in the Airline industry, exploring the customer's perspective and operationalisation, specifically with four measurements: brand awareness, brand image, perceived quality, and brand loyalty. Inter-relationships and their influence amongst these four dimensions was established. However, customer based brand equity in Airline Industry, has limited models, measurements and necessitates diverse approach. The academics and practitioners are increasing their focus on brand equity in terms of business and marketing functions in different service industry. Cheng and Chang (2008) explored the relationships amongst brand equity and their implication; mainly customer purchase intentions and brand equity. Their outcomes suggested positive effects on customer purchase intentions and brand preference of CBBE. There is increasing signal and higher preference for customer purchase in Airline, which has healthier brand equity component and displays mediating effect of brand preference. It is observed that there is sparse research on dimensions that include brand reputation, brand trust and brand equity in the Airline industry. This gives an opportunity to explore the relationship https://doi.org/10.1016/j.fbj.2018.07.001 Received 18 March 2017; Received in revised form 10 May 2018; Accepted 30 July 2018 Peer review under responsibility of Faculty of Commerce and Business Administration, Future University. Future Business Journal 4 (2018) 233–245 Available online 07 August 2018 2314-7210/ © 2018 Faculty of Commerce and Business Administration, Future University. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/BY-NC-ND/4.0/). T linking several elements and their significances; namely, brand trust and brand reputation. Various research related to Airline industry has stressed the importance of brand communities, relationships and brand citizenship behaviours. When exploring the past study related to customer based Airline brand equity (CBABE) in Taiwan, the research mainly focused on specific dimensions; brand preference, purchase intention, brand awareness, brand image, perceived quality and brand loyalty (Chen & Tseng, 2010; Chen & Chang, 2008). This research addresses to facilitate and examine the role of brand reputation among CBABE dimensions and brand trust in the Airline industry. The significance of brand trust due to the importance of Air safety, reliability and on-time-performance issues in the Airline industry are significant (Zhang, 2012; Wu, 2010). There is the reason to believe that large number of business key prevalent measure of brand customer relationships and rational to quantify is brand equity (Alam & Yasin, 2010). It can be argue that customers have higher tendency to choose trust worthy Airline brand for their air travel. With the increasing air travel among the general public, there is higher inclination for the passenger to opt for reputable and trustworthy Airline brand. Large amount of Airline resources and financial investment are focused to improve trust and reputation of the Airline brands (Zhang, 2012; Taneja, 2016a). Hence, it is essential to analyse brand equity accommodating other components and comprehend the relationship amongst brand reputation and brand trust. The main purpose of this research are three facets. This study aims to fill the significant gaps which are; (1) To identify fundamental dimensions of CBABE; (2) To empirically inspect the relationship of CBABE dimensions with brand trust in Airline industry and inspect mediating role of brand reputation influencing between CBABE dimensions and brand trust (3) To compare the assessment of the dimensions of CBABE among different purpose of air travel. From managerial viewpoint, the research results will enable to clarify the effective ways, how CBABE can attract Airline customers comprehending the purpose of air travel. These relationships and findings will aid to increase the differential applications of CBABE. It can be considered that research likewise focuses to verify the dimensions of CBABE of Taiwanese Airline industry; domestic and international air passengers. 2. Research models and hypothesis Brand equity is believed to add incremental value, utility and primary capital for large number of organizations. Resilient brands have capitalised by increasing the number customer service and product purchase, by understanding intangible factors that emboldens customer's trust (Keller, 2015; Chen & Chang, 2008). Researches have focused in the direction of identifying the dimensions of brand equity in different industries. Sustainable competitive advantage are gained by organisations, by means of projecting strong brand image, thereby increasing long-term cash flow, profitability, stock price and premiums (Kumar, Dash, & Purwar, 2013; Yoo & Donthu, 2001; Yasin, Noor, & Mohamad, 2007). This is largely true for the service industry, were services are embedded with characteristics of heterogeneity, perishability, intangibility and inseparability. Companies from advanced countries have fundamentally given equal importance for short-term performance and long term brand equity components in their corporate strategies. Brand corporate strategies and marketing campaigns are frequently aligned to enhance the brand image and install brand equity (Keller, 2015; Kim & Kim, 2005). Airline industry being in the service sector, needs adjustment to measure brand equity embodying feature pertinent to the nature of business and customer focus. This provides common groundwork for further research in Taiwanese Airline Industry; domestic and international air passengers. In the past, researchers have focused sensibly to examine brand equity dimension on international Taiwanese Airline passengers. Chen and Chang (2008) conducted research to study the international Taiwanese air passengers and the association amongst brand equity, brand preference and purchase intensions. Findings from their research established positive relationship amongst brand equity, brand preference and purchase intensions. This study also detected moderate influence of switching cost linking the relationship amongst brand equity and purchase intentions. It was observed that there is no significance of brand equity on customer purchase intentions, with low switching costs. Chen and Tsang (2010) examined international Taiwanese air passenger behaviour from customer's perspective and operationalization of airline brand equity. Empirical investigation on four dimensions were conducted; brand image, brand awareness, brand loyalty and perceived quality. Inter-relationship amongst the four dimension and their effect on brand equity was investigated. The research model enabled to find the casual relationship amongst perceptual and behavioural dimensions, henceforward their inter-relationships between brand equity components was established. It is encouraging to recognise different perspective used to evaluate brand equity that is essentially studied in three different standpoints; financial perspective, customer perspective and employee perspective (Farjam & Hongyi, 2015). This research is focused to consider CBBE in Taiwanese Airline industry by the support of relevant literatures, empirical studies, and hypothesised drivers from other service sectors. There is enormous room for further research on CBABE, which focuses on the behavioural intentions of brand equity and brand trust (Bauer, Sauer, & Schmitt, 2005a; Bauer & Sauer, 2008; Gladden & Funk, 2002). It is important to understand that there is shortage of research in the area of Taiwanese Airline industry, both in terms of hypothesised drivers and behavioural intentions of brand equity. Brand loyalty, brand awareness, brand association and perceived quality are the four brand equity dimensions (Aaker, 1991). Kim and Kim (2005) examined brand equity of other service sector by means of primary dependant variables that are brand loyalty, brand awareness, brand image, perceived quality and brand loyalty. While, primary dependant variables such as brand affect and selfcongruence was incorporated by Han, Nguyen, and Lee (2015) as perceived dimensions. Flight service quality has sub-construct such as inflight, reservation, reliability, availability, employees and airport. These are regarded as perceived quality in the Airline service industry (Chen & Tseng, 2010). Current research utilises self-congruence to determine symbolic consumption of customer behaviour. It is established that prominence of symbolic consumption is important in customer behaviour (Nam, Ekinci, & Whyatt, 2011; Kwak & Kang, 2009). Well managed brands, have greater propensity to create emotional ties with customers that urges them to favour them over the competitors (Chaudhuri & Holbrook, 2001; Evanschitzky et al., 2006). Such emotional inclination towards the brand Thakshak Future Business Journal 4 (2018) 233–245 234 generates positive and steady response. As a result, this research has included brand affect as one of the dimensions for CBABE. With regard to this, CBABE do not include brand loyalty as a dimension. The research argues that brand loyalty is the consequence of brand equity and cannot be considered as part of brand equity. Behavioural dimension of brand equity was excluded and this study is considering only the perceptual dimensions as brand equity (Lassar, Mittal, & Sharma, 1995). The study looks to the following five CBABE dimensions; flight service quality, brand association, brand affect, brand awareness and self-congruence. The CBBE dimensions demonstrated relationship with other brand components such as brand reputation and brand trust (Han et al., 2015). The study also demonstrates the necessity for Airline brand to derive and examine the relationship amongst CBABE, brand reputation and brand trust. Brands from service industry greatly rely on brand trust to increase customer's inclination towards intangible attributes. In case of Airline brands, these intangible attributes are offered in the form of reservation-related services, flight availability, reliability, inflight services, employee services and airport services (Chen & Tseng, 2010; IATA, 2013). In the customer selection process of choosing a service, greater brand trust enables to reduce customer's opinion on perceived risk (Herrera & Blanco, 2011). Brand reputation claims to be an intangible and valuable asset of an organisation (Dolphin, 2004). It can be appealed that brand reputation prominently plays a role in evaluating service quality, without having to experience the product offering (Herbig & Milewicz, 1993). However, this literature establishes prominence on direct effect of CBABE on Airline brand trust. It also examines the relationship of CBABE dimensions on Airline brand reputation and on Airline brand trust. Observation from various researchers favours that good reputation is perceived as an indication of reliability and precursor of trust (Alam & Yasin, 2010; Suh & Houston, 2010; Torres-Moraga, Vásquez-Parraga, & Barra, 2010). Trust plays mediating role in developing corporate brand reputation and brand loyalty in an organisation. It is observed that brand service supports and enhances corporate reputation, therefore has strong influence on brand trust (Chang, 2013). The current research explores the acceptance on brand reputation as full mediating variable between CBABE and brand trust of Taiwanese Airline industry. The following Fig. 1, research models is under investigation to determine the relationship amongst CBABE dimensions, brand reputation and brand trust in Taiwanese Airline industry. It also suggests five dimensions of CBABE on brand trust via brand reputation of Taiwanese Airline passengers. Finally, the research suggests that successful Airline brand need to distinguish and appreciate the purpose of air travel amongst the Airline customers. Thus, the study inspects the Taiwanese Airline customer's purpose of visit in relation to Airline brand equity, which is significant from managerial standpoint. 2.1. Flight service quality and brand reputation Large number of service quality research till date have been developed using SERVQUAL (Parasuraman, Zeithaml, & Berry, 1985). Scholars have recognised that SERVQUAL model is not sufficient enough and specific areas of services are not acknowledged (Buttle, 1996). In this model, two main dimensions on service quality are evaluated, which are namely technical quality and functional quality. Service performance is generally determined by objective evaluation of technical quality. Although, functional quality of service is subjected to evaluation, in which mode the customer receives the service from the establishment (Grönroos, 1984). Researchers affirm that judgement about brand reputation is indicated by brand service quality that acknowledges strong association Fig. 1. Research construct model. Thakshak Future Business Journal 4 (2018) 233–245 235 between service quality and brand reputation (Wirtz, Heracleous, & Pangarkar, 2008). Airline customer perceived quality is principally by flight service component offered by the Airline brand, which is the flight service quality. (Shaw, 2016; Chen & Tseng, 2010). Other Airline associated services for instance, airport services maybe outsourced to gain operational efficiencies. Thus, this study hypothesises, by means of the above claims; Hypothesis 1. (H1) - Airline Flight service quality has a positive effect on Airline brand reputation. 2.2. Brand affect and brand reputation Brand organisation endures and exhibits particular attitude. These qualities attract customer towards the brand by stimulating emotional feeling and reinforcing brand touch (Kotler & Keller, 2015; Keller, 2009). Love, pity, hate and anger are different emotional energies from which customer's attitude is developed towards a brand (East, Wright, & Vanhuele, 2013). In general, consumption of product and service is governed by feelings, emotions and concerns of the customers along with the well-designed features (Zohra, 2011). Massive amount of organisational resource are channelled to enhance brand affect and importance is given to these factors in marketing campaigns (Keller, 2009). Chaudhuri and Holbrook (2001) claim that positive brand affect is an effort to provoke favourable emotional response by marketing activities in the thought process of the ordinary customer. Research from behavioural theorists suggest that decision making process is greatly influenced by affective reactions (Garbarino & Edell, 1997). Organisation brand marketing activities are focused on stimulating positive emotions of the customers and develop favourable emotional feeling towards the brand. Customer emotional satisfaction has positive effect on brand preference that thereby improves brand reputation (Lassar et al., 1995). Based on the above assertions, the present study hypothesizes that: Hypothesis 2. (H2), Airline brand affect has a positive effect on Airline brand reputation. 2.3. Self-congruence and brand reputation Self-conceptualisation is a process in which, individuals usually hold their own attributes and features that are generated by selfconcerns, beliefs and thoughts (Kotler & Keller, 2015). Researchers have found that preference of a brand are influenced by the process of matching brand image with customers own self-congruence and self-concept (Sirgy & Su, 2000). Consistent brand image has greater encouragement on customer buying intention and positive attitude of the customers (Bauer & Sauer, 2008). Scholars have claimed and explained customer behaviour with the use of self-concept, which has great impact on product choice and buying intentions (Quester, Karunratna, & Goh, 2000). Customer's image of themselves are determined from their behavioural pattern. Matching the brand image and influencing certain behavioural pattern of the customers will consecutively create positive brand attitude and influence brand preference due to self-congruence (Ekinci & Riley, 2003; Jamal & Goode, 2001). In the large competitive brand marketing surroundings, customer's brand evaluation is greatly stimulated by degree of congruence between brand and selfconcept (Graeff, 1996). It can be appealed that overall evaluation of the brand is by means of brand reputation, the present research suggests that: Hypothesis 3. (H3) Self-congruence has a positive effect on Airline brand reputation. 2.4. Brand awareness and brand reputation Brand awareness is the ability of the customer to recall the brand and recognise the brand amongst other competitive brands. It can be further explained as customer's capacity and strength to recollect the brand (Keller, 1993). Advantage of having brand name in a business will reduce risk of losing revenue and customer buying a competitors service (Bharadwaj, Varadarajan, & Fahy, 1993). Organisation generally invest substantial quantity of resources in marketing efforts, which are associated and directed to develop brand awareness. Brand attitude and brand image are repeatedly sculpted, when customer awareness on the brand is created (Macdonald & Sharp, 2003). Researchers believe that brand awareness has greater prominence especially in the service environment (Krishnan & Hartline, 2001; Kayaman & Arasli, 2007). Specifically at the initial stage of customer involvement, it is admitted that the need to generate brand credibility and enhance loyalty intensions amongst the customers are derived from brand awareness. Brand value creation and sustainable competitive advantage in an establishment is generated by investing and committing to brand awareness (Macdonald & Sharp, 2003). Brand reputation essentially are enhanced by unique features of the brand, which lures trust of the customers (Mathew, Ali, & Thomas, 2014; Schwaiger, 2004). Davies and Miles (1998) emphasise that brand awareness is one of the key components, which build brand reputations in an organisation and needs to be carefully nurtured. Therefore, the study hypothesis that: Hypothesis 4. (H4) Airline brand awareness has a positive effect on Airline brand reputation. 2.5. Brand association and brand reputation Brand association is considered as other information nodes and it is associated with brand node. Researchers have observed that customer's memory contains meaning information of the brand in the judgment process of the customers (Keller, 1993). Past Thakshak Future Business Journal 4 (2018) 233–245 236 experience of customer with the brand organisation, word-of-mouth marketing, price, brand logo and brand advertising are different components of the information nodes (John, Loken, Kim, & Monga, 2006). Aaker (1991) suggest that creation of positive association of brand with the customer is essentially due to the familiarity of brand name. In the preliminary stages, brand image is principal factor that is created and shaped from continual brand association with the customers (Ross, James, & Vargas, 2006; Keller, 2009). Good brand reputation is the by-product of positive brand image in the viewpoint of the customers. Brand product positioning and brand product reinforcement is possible by continuously establishing strong brand image by the use of brand logos, brand advertising and brand symbols (Pitta & Katsanis, 1995). It is reasoned that brand image is reinforced by building strong memory in connection with the brand (Romaniuk & Nenycz-Thiel, 2013). Roberts and Dowling (2002) convey that positive brand reputation is created when brand customers are often loyal to brand owing to positive brand association. Thus, the present research hypothesises that: Hypothesis 5. (H5) Airline brand association has a positive effect on Airline brand reputation. 2.6. Brand reputation and brand trust Schwaiger (2004) claims in his research that reputation has greater correlation with attitude construct. Positive experience is a guiding tool, which the customer uses to distinguish and learn about the brand. Customer attitude is effected by the feelings and beliefs derived from the customer experiences. These experiences form the foundation of brand knowledge and brand information (Kapferer, 2012). Thus, customer's attitude on the respectability and reliability on the brand is referred as brand reputation (Afzal et al., 2010). Brand reputation brings about greater buying decision amongst the customers and lowers the level of risk, motivating the customer buying decisions (Smaiziene, 2008). It is perceived by the customer that risk and uncertainty are both reduced by brand trust (Chaudhuri & Holbrook, 2001). Other studies have expressed the importance of trust on customer buying behaviour (Bredahl, 2001). Brand customer's distinction on trust is justifiable, when basic and vital service features, service quality and service uncertainties are eliminated. Organisational brand trust plays crucial factor in maintaining positive relationship between brand and the customers (Elliott & Yannopoulou, 2007). There is an increasing evidence about brand reputation generates brand trust, henceforth reducing apprehensions in the services (Smaiziene, 2008). Particularly in the service industry, brand reputation is substantial, due to the intricate service uncertainties (Cretu & Brodie, 2007). Trust on service quality is increased and conveyed by brand reputation (Herbig & Milewicz, 1993). Researchers have established brand trust is positively influenced by brand reputation (Torres-Moraga et al., 2010; Suh & Houston, 2010). Therefore, the present research hypothesises that: Hypothesis 6. (H6) Airline brand reputation has a positive effect on Airline brand trust. 2.7. Flight service quality and brand trust Perceived quality is consequential of the features from basic functions, characteristics, perfection, performance, economic life of the brand product and actual brand service quality (Aaker, 1991; Aaker, 1996). Customer's judgement of the brand service, overall service excellence and service quality is considered as perceived quality. While, this is not the only defining element of the brand service and of actual service excellence (Bamert & Wherli, 2005). The emotional stage of the customer buying activities comprises of brand image and perceived quality. This indicates customer's assessment of purchase experience and their association involved with the brand. Both intangible and tangible attributes of the brand are influencing features on perceived quality. A positive service experience of quality encountered by the customer, leads to positive image pictured in the customer's memory. Positive cognitive results are gained from customer's attitude towards the brand and the positive influence of customer's actual observations. Consideration on willingness to purchase and positive cognitive outcomes, will enhance customer loyalty, recommendation and future repurchases (Chen & Tseng, 2010; Taneja, 2016b; Keller, 2015). Increasing service quality in the Airline brand, is focused on flight safety, inflight services, service aptitude of Airline cabin crew and staff, who elevate the brand trust (Chen & Tseng, 2010; Taneja, 2010; Shaw, 2016). Marketing benefits and outcomes are gained from brand loyalty, thereby leading to brand trust. This is due to the positive effect of brand marketing and by this means generating brand trustworthiness (Delgado-Ballester & Munuera-Alemán, 2005). Centred on the above argument, this research hypothesis that: Hypothesis 7. (H7) - Airline 'Flight service quality' has a positive effect on Airline ‘brand trust’. 2.8. Brand affect and brand trust Positive brand affect directly stimulates purchase intention of the customer and elevates customer satisfaction (Oliver, Rust, & Varki, 1997). Researchers have observed that positive word-of-mouth brand marketing has greater influence on customer satisfaction than the cognitive elements such as price and quality (Yu & Dean, 2001). It is perceived that behavioural intentions such as customer loyalty and brand recommendation is stimulated by positive emotional satisfaction. Despite the fact, positive brand reputation is boosted by securing customer preferences and by pleasing the customer (Ladhari, 2009). Chaudhuri & Holbrook (2001) affirm that hedonic product display and symbolic representation of the brand has nontangible benefits. It encourages higher potential for generating positive brand affect, when the emotional elements are positive and superior on the brand product. Brand affect and brand trust remained directly influenced by customer's decisive faithfulness and purchase faithfulness of the brand product. Brand greater performance aspect indirectly associates brand affects with brand trust (Steven, Dong, & Dresner, 2012; Chow, 2015; Selnes, 1993). Thakshak Future Business Journal 4 (2018) 233–245 237 Depended on the above claims, this study hypothesis that: Hypothesis 8. (H8), Airline brand affect has a positive effect on Airline brand trust. 2.9. Self-congruence and brand trust Self-concept of customer is expressed via symbolic consumption of service and product. Positive self-perception and self-congruence by means of brand experience and customer satisfaction has positive influences of customer's behavioural intentions (Hosany & Martin, 2012). For example, tourist customer revisiting tourism destination increases, when self-image and symbolic meanings matches with the image of tourism destination. As well as tourism, hospitality and other service industry's main factors effecting customer revisit is predominantly due to self-congruence (Ekinci, Sirakaya-Turk, & Preciado, 2013; Aaker, 2011). Scholar Ekinci and Riley (2003) reasons that customer behaviour influence on ideal self-congruence and actual self-congruence in the context of service evaluation. The study suggests variable influence amongst ideal self-congruence and actual self-congruence. It is submitted that selfcongruency theory is relevant to tourism industry, which is derived from post-consumption evaluation. Ideal self-congruence is more significant than actual self-congruence that is related to customer satisfaction (Hosany & Martin, 2012). Other literature have revealed that leading driver of brand equity and brand trust is supported by the component of brand loyalty. On the other hand, customer satisfaction and brand recommendation are paramount characteristic of high level of brand loyalty (Delgado-Ballester & Munuera-Alemán, 2005). Therefore, this research hypothesis that: Hypothesis 9. (H9) Self-congruence has a positive effect on Airline 'brand trust'. 2.10. Brand awareness and brand trust Brand awareness is key prerequisite and determinant factor, whether or not the organisation is in the selection thought process of the customer. Curiosity of brand services resulting from the effect of awareness is first step towards future purchase and repeat purchase of brand offerings (Nakaprasit & Mason, 2012). Scholar Aaker (1991) argues that brand awareness as an ability of the potential customer to identify and recollect specific brand, which belongs to an affiliation of certain product grouping. Based on CBBE viewpoint, marketing communication campaigns improve brand equity by creating further awareness on the brand. These marketing activities provide brand linkage by associating the brand image in the memory of the customer, nurture positive feelings and aid their judgement to develop strong customer brand connection (Keller, 2009). It can be agreed that different dimensions of the brand information are expected to have interactive affects. For instance, strong brand awareness, familiarity and knowledge of the brand are essential for certain type of emotional feelings, attitudes and thoughts (Keller, 2015). Brand awareness from marketing promotions, development of customer relationship and assertion on reliability has positive measure on brand trust (Delgado-Ballester, 2004). The current research posits that brand awareness has an influence on brand trust. Thus, the research hypothesis that, Hypothesis 10. (H10) Airline 'brand awareness' has a positive effect on Airline 'brand trust'. 2.11. Brand association and brand trust Keller (1993) classifies brand association into three main categories, namely attitudes, attributes and benefits. Consumption behaviour of the customer has strong effect to define the attitudes of the brand, which is characterised by uniqueness, favourability and strength. Uniqueness of the brand is the ability of the customer to recollect particular brand product features. Despite these facts, it is evident that brand product satisfaction will increase favourability of the brand, fulfilling customer needs and wants. Strength of the brand is determined by the extent to which the brand image is maintained in the mind of the customer (Gordon et al., 2010). Positive brand image develops and creates positive brand trust and brand equity from advertising, product positioning, brand logo and brand symbols (Pitta & Katsanis, 1995; Kapferer, 2012). Customers with higher level of loyalty essentially associate with a company with a positive brand trust (Delgado-Ballester & Munuera-Alemán, 2005). It is appealed that brand trust is chiefly driven by brand association predominantly in the service industry. This is due to the brand image of the service provider, who is capable to convey the brand promise and assurance to the customers (Phan & Ghantous, 2013). Therefore, the research hypothesises that: Hypothesis 11. (H11) Airline 'brand association' has a positive effect on Airline 'brand trust'. 2.12. CBABE between different customer groups based on the purpose of travel In the service industry, customer satisfaction is termed as the subjective assessment of essential service attributes, service atmosphere and service employee behaviour (Meyer & Schwager, 2007; Berry, Carbone, & Haeckel, 2002; Namkung & Jang, 2008). Customer air travel has varied reasons and purposes, they gauge it with varied criteria of individual requirements and purpose of air travel (Noone & Mattila, 2010; Belobaba, Odoni, & Barnhart, 2015). For illustration, an Airline customer might need air travel to ‘visit friends and family’,‘attend business meeting and conference’,‘leisure and tourism’and to ‘attend university education and educational conference purpose’. These customer intentions need to be contrived to varied prerequisite of the Airline customer and influence the overall satisfaction on the Airline brand. In the viewpoint of the customer, different purpose of customer service needs Thakshak Future Business Journal 4 (2018) 233–245 238 influence the evaluation of the brand service attributes (Ponnam & Balaji, 2014). The customer satisfaction in a service sector is derived from the value customer wants to classify from the purpose of their service needs (Holbrook, 1999). In the same way, these evaluation of service value can correspondingly have realistic effect on Airline brand equity. Airline brand fundamental service attributes are flight reliability, airport services, reservation related services, flight services, cabin atmosphere and flight availability (Chen & Tseng, 2010; IATA, 2013; IATA, 2011). It is important for the Airline brand management team to further investigate CBABE by identify the underlying factors affecting the Airline brand characteristics. It should be relevant to the purpose of air travel and fulfil those fundamental needs of the Airline customers. The Airline brand managers can develop customised, Airline brand offering and brand products that are largely fitting different needs of the air travel purpose. Therefore, this research hypothesises that: Hypothesis 12. (H12) There is a difference in CBABE between different customer groups based on the purpose of Air travel. 3. Methodology 3.1. The sample data and data collection Research methodology for this study is divided into two main stages. Stage one aims to advance the model and develop in interview questionnaire by means of secondary data gathering method, qualitative interview with Taiwanese Airline customers and also a pilot study. In addition, stage two accommodates quantitative data gathering in the form of survey to test, verify and validate the scales of the model for Airline brands in Taiwanese market (Sekran & Bougie, 2013). Interview questions in this study for Taiwanese respondent was in the form of structured questions and the participants were allowed to express their options. Thirty two Taiwanese effectively participated in the structured interview, which used online platform to display and collect data. The interview outlined five questions, it was associated to Airline brand, brand reputation and brand trust. Insight obtained from the interview of Taiwanese participants were analysed, which assisted in outlining the survey questions. Furthermore, one pilot study was conducted in which 36 Taiwanese respondents participated. Few of the questions were revised to improve the understanding and gain clarity of the survey questions. The survey used online platform with structured questions and was distributed across Taiwan for reliable response. The respondents were asked if they had prior travel experience flying in an Airline within 3 years before filling the questionnaire; Eva Air, Uni Air, China Airlines, Tigerair Taiwan, Singapore Airlines, Jetstar Airlines, Japan Airlines and others. Convenience sampling method was applied to collect survey data of 514 questionnaire response. Besides, 8 samples were excluded at pre-analysis data screening due to presence of outliers, normality errors and linearity errors. Demographic data of the survey respondent proposes that 56.4% were male and 44.4% female participants, was reflected amongst 506 questionnaire responses. Similarly, survey participant age group were, 24.3% of the respondents were between the age 16 years to 25 years, 47.5% between 26 years to 35 years, 12.5% between 36 years to 45 years, 5.6% between 46 years to 55 years and 10.1% between 55 years to 65 years. 3.2. Measurements Well-arranged questionnaires were drafted in a particular order and structure to engage with the participants encouraging to complete all the survey questions. Most popular data collection method is the structured survey with the aid of questionnaire (Malhotra & Dash, 2008). The survey questionnaire had pre-determined set of responses with 7 –Likert scale, which was applied with alternative questionnaire patterns. Flight service quality measures consisted of one employ service, one airport service, one flight availability and one on reliability items opted from Chen and Tseng (2010) and Han et al. (2015). Brand affect measures consisted of three items that was established by Chaudhuri and Holbrook (2001). Two items was developed by Han et al. (2015) were employed to measure self-congruence. Brand awareness measures comprised of two items that was recognised by Yoo, Donthu, & Lee, (2000) and Han et al. (2015). To measure brand association, this study implemented two items from Gladden, Irwin & Sutton (2001). Three items were proposed by Veloutsou and Moutinho (2009) to quantify brand reputation. Lastly, three items from Delgado-Ballester (2004) was utilised to measure brand trust. 4. Findings The qualitative research delivers insight and understanding of the research question. On the other hand, quantitative research strives to quantify the collected data and enable to apply relevant form of statistical analysis. A validation criteria is necessary when addressing new research problem, qualitative research must be followed by widespread quantitative research. Authors in business research have emphasised that both qualitative research and quantitative research are complementary in nature rather than considering it competitive (Malhotra & Dash, 2008). Scholars believe that integration of qualitative research and quantitative research methods together will encourage higher research quality (Churchill & Suprenant, 1979). 4.1. Validity and reliability of the measures Prior testing the model, exploratory factor analysis was executed. The KMO value of 0.901 exceeds the recommended value of 0.6 (Pallant, 2016; Hair, Black, Babin & Anderson, 2009). Bratlett's Test of Sphericity illustrates statistical significance with (p=0.000). These values backs the notion of factorability of the correlation matrix. The results attained from factor analysis propose five factor Thakshak Future Business Journal 4 (2018) 233–245 239 solutions; flight service quality, brand awareness, brand affect, self-congruence and brand association. This analysis further assessed the mean, the reliability of CBABE and brand reputation on brand trust with the aid of SPSS. Nonetheless, general rule concerning the design of demanding research project necessitates to establish internal validity of the measurement items. Even though consistency is observed as essential element, there are inadequate conditions to establish construct validity. Cronbach's alpha value enabled to assess reliability of the scales, for all one-dimensional scales. Results from the data analysis, has revealed that Cronbach's alpha value for reliability was observed to be 0.926, which is above the acceptable level of 0.70 (Hair et al., 2009). To test convergent validity, the research estimated factor loadings significance, composite reliability (CR) and average variance extracted (AVE) utilising AMOS platform. It was observed that the factor lodgings were higher than 0.50 and inferred statistically significance. In the same way, AVE is greater than 0.5 and CR is greater 0.7, which meets the condition of convergent validity as displayed on Table 1. AVEs are greater than the squared correlations amongst the constructs except flight service quality and brand trust. On the other hand, between flight service quality and brand trust do not include 1.0 and the confidence interval (φ±2 × standard error) about the correlation estimates. Hence, this conditions supports discriminant validity (Anderson & Golden, 1984). Measurement data for Model fit and Confirmatory factor analysis indicate positive results on good model fit. These Model fit measures are gathered from Parsimonious fit, Incremental Fit and Absolute Fit. It is important to note that Parsimonious fit is highly sensitive and depends on the sample size of the data. Parsimonious fit measures such as Chi-square value = 412.52, p-value = 0.000 and Degrees of freedom = 104 suggests inadequate fit. Nevertheless, due to the large sample size, these tests value are less meaningful evidence on the measurement of models. Yet, another Parsimonious fit measure CMIN/Df = 3.967 is in the acceptable range. Incremental fit measures such as Comparative fit index = 0.970, Tucker-Lewis index = 0.960, Normed fit Index = 0.960 and Incremental fit index = 0.970 are in the recommended values ranges. Similarly, Absolute fit measures, which are Goodness of fit index = 0.914 and Standardised root mean square = 0.028 are in the approved values ranges on superior model fit. On the other hand, Root mean square error = 0.077 is in the acceptable value for Model fit measurement in CFA. Information related to measurement models are presented in Table 2. Table 1 Construct correlations and average variance extracted (AVE). SI No Construct 1 2 3 4 5 6 7 CR AVE 1 Flight service Quality 1 – ––– ––0.93 0.78 2 Brand affect 0.15(0.05) 1 ––– ––0.96 0.89 3 Self-congruence 0.48(0.06) 0.63(0.06) 1 –– ––0.91 0.84 4 Brand awareness 0.50(0.05) 0.58(0.05) 0.69 1 –––0.89 0.81 5 Brand association 0.48(0.06) -0.15(0.05) 0.17(0.05) 0.11 1 ––0.90 0.82 6 Brand reputation 0.92(0.07) 0.17(0.05) 0.42(0.06) 0.49(0.05) 0.44(0.06) 1 –0.97 0.90 7 Brand trust 0.17(0.50) 0.87(0.06) 0.62(0.06) 0.64(0.05) -0.14(0.05) 0.26(0.05) 1 0.94 0.84 Standard errors are in parentheses. Table 2 Reliability and validity of constructs. Construct Items Mean SD Standard Loadings Cronbach's alpha Flight service Quality The staffof this airline brand are courteous 6.00 1.20 0.86 0.933 This airline brand has lower lost bags 6.01 1.18 0.90 – This airline brand has convenient flight schedule 6.01 1.17 0.87 – This airline brand has higher punctuality standards 5.94 1.22 0.90 – Brand affect I feel good when I travel in this airline brand 5.41 1.00 0.94 0.961 This airline brand makes me contented 5.38 0.99 0.96 – This airline brand gives me pleasure 5.40 1.01 0.94 – Self-congruence The image of this airline brand is consistent in the way I like to see myself 4.78 1.10 0.98 0.902 The image of this airline brand is consistent the way others perceive about me 4.59 1.24 0.85 – Brand awareness I am familiar with this airline brand 5.62 1.03 0.93 0.893 I can recognise this brand among other airline brands 5.67 1.03 0.87 – Brand association I like the design of the aircraft cabin of the airline brand 5.45 1.13 0.91 0.898 This airline brand has attractive cabin crew uniform 5.44 1.18 0.90 – Brand reputation This airline brand is trustworthy 6.06 1.11 0.95 0.965 This airline brand is reputable 6.08 1.12 0.97 – This airline brand is genuine 5.96 1.16 0.93 – Brand trust I can rely on this airline brand to solve my service dissatisfaction 5.39 0.95 0.86 0.936 This airline brand guarantees satisfaction 5.41 0.99 0.93 – I have confidence in this airline brand 5.42 1.01 0.95 – Thakshak Future Business Journal 4 (2018) 233–245 240