Determinants of Brand Equity: The Roles of Brand Awareness, Association, Loyalty, and Image in the Airline Industry

Kok Ban Teoh; Kia Hui Gan; Foong Jia Yee; Gan Lee Fan; Lin Shihui; Fathimah Az-Zahra Binti Harudin; Fu Wei; A. J. Ali; Daisy Mui Hung Kee

doi:10.32535/ijthap.v8i3.4222

Determinants of Brand Equity: The Roles of Brand Awareness, Association, Loyalty, and Image in the Airline Industry

Kok Ban Teoh, Kia Hui Gan, Foong Jia Yee, Gan Lee Fan, Lin Shihui, Fathimah Az-Zahra Binti Harudin, Fu Wei, A. J. Ali, Daisy Mui Hung Kee

Abstract

AirAsia, a Malaysian low-cost airline, has recently faced operational challenges such as customer complaints, IT disruptions, and flight delays that have weakened customer trust and loyalty, leading to a decline in its overall brand equity. This study aims to examine the key factors influencing AirAsia’s brand equity, focusing on four independent variables: brand awareness, brand association, brand loyalty, and brand image. A total of 151 respondents participated in an online survey distributed via Google Forms, and the collected data were analyzed using descriptive and regression analysis through SPSS. The findings reveal that brand awareness (? = 0.260, p < 0.01) and brand image (? = 0.394, p < 0.001) significantly and positively influence brand equity, while brand association (? = 0.146) and brand loyalty (? = 0.104) have positive but insignificant effects. The model explains 69.6% of the variance in brand equity (R² = 0.696). These results suggest that AirAsia should strengthen brand awareness through digital marketing and improve brand image by enhancing customer experience, reliability, and communication to foster stronger brand equity.

Keywords

Brand Association; Brand Awareness; Brand Equity; Brand Image; Brand Loyalty

Full Text:

PDF

References

Aaker, D. A. (1991). Managing Brand Equity: Capitalizing on the Value of Brand Name. The Free Press.

Aaker, D. A. (1996). Measuring brand equity across products and markets. California Management Review, 38(3), 102–120.

AirAsia. (2023, February 8). “We have listened.” Capital A fires chatbot AVA and introduces new AI-powered “Ask Bo” as part of commitment to a more transparent, enhanced customer experience. AirAsia Newsroom. https://newsroom.airasia.com/news/capital-a-welcomes-ask-bo#gsc.tab=0

AirAsia. (2024a, June 25). AirAsia is Skytrax’s world’s best low-cost airline for 15th consecutive year. AirAsia Newsroom. https://newsroom.airasia.com/news/airasia-is-skytraxs-worlds-best-low-cost-airline-for-15th-consecutive-year#gsc.tab=0

AirAsia. (2024b, July 22). AirAsia connects over half a million guests to their destinations during global tech disruption. AirAsia Newsroom. https://newsroom.airasia.com/news/airasia-connects-over-half-a-million-guests-to-their-destinations-during-global-tech-disruption#gsc.tab=0

Azad, N., & Sadeghifar, M. (2019). The effect of service quality on customer loyalty, given the mediating role of customer engagement and perceived value (case study: Taban Airline, Mashhad, Iran). International Journal of Business Innovation and Research, 20(1), 129–144. https://doi.org/10.1504/IJBIR.2019.101693

Azzahra, S., Sanjaya, I., Lukman, J., & Ermanda, J. (2024). Factors influencing overall brand equity and identification in local cultural heritage products: A case study on Indonesian millennial and Gen Z generations. Journal of Economic, Business and Accounting (COSTING), 7(4), 7269–7282. https://doi.org/10.31539/costing.v7i4.9310

Bigné-Alcañiz, E., Currás-Pérez, R., & Sánchez-García, I. (2009). Brand credibility in cause-related marketing: The moderating role of consumer values. Journal of Product & Brand Management, 18(6), 437–447. https://doi.org/10.1108/10610420910989736

Buil, I., De Chernatony, L., & Martínez, E. (2013). Examining the role of advertising and sales promotions in brand equity creation. Journal of Business Research, 66(1), 115–122. https://doi.org/10.1016/j.jbusres.2011.07.030

CheckMarket. (2019). Optimal sample size. CheckMarket. https://www.checkmarket.com/kb/calculate-optimal-sample-size-survey/

Chen, A. C.-H. (2001). Using free association to examine the relationship between the characteristics of brand associations and brand equity. Journal of Product & Brand Management, 10(7), 439-451. https://doi.org/10.1108/10610420110410559

Chung, J. Y., Lee, J., & Heath, R. L. (2013). Public relations aspects of brand attitudes and customer activity. Public Relations Review, 39(5), 432–439. https://doi.org/10.1016/j.pubrev.2013.05.001

Colin, F. (2018, October 5). What is a brand association? Brand Marketing Blog. https://brandmarketingblog.com/articles/branding-definitions/brand-association/

del Río, A., Vázquez, R., & Iglesias, V. (2001). The effects of brand associations on consumer response. Journal of Consumer Marketing, 18(5), 410–425. https://doi.org/10.1108/07363760110398808

Dilip, D., Sinha, R., Wen, C. P., Kee, D. M. H., Ching, C. S., Er, L. K., ... & Yan, Y. W. (2021). The influence of brand equity on consumer purchase decisions at Starbucks. International Journal of Accounting & Finance in Asia Pacific, 4(1), 37–50. https://doi.org/10.32535/ijafap.v4i1.1031

Fam, C. (2024, March 12). Nacsa: Alleged AirAsia data breach being investigated. The Star. https://www.thestar.com.my/tech/tech-news/2024/03/12/nacsa-alleged-airasia-data-breach-being-investigated

Fickry, A., Kee, D. M. H., Sallehuddin, M., Nabila, N., & Nuraishah, S. (2020). Leadership and organizational success: A study of AirAsia. Advances in Global Economics and Business Journal, 1(1), 12–25. https://doi.org/10.51748/agebj.v1i1.4

Gaby, A. (2023, November 14). What is brand association? + How to build it. Brandfolder. https://brandfolder.com/resources/brand-association/

Imaningsih, E. S., & Vega, Y. (2020). Toward brand equity: The effect of brand awareness, perceived quality, brand association, and brand loyalty in boutique bakery company. Journal of Marketing and Consumer Research, 10(3), 12–23. https://doi.org/10.7176/JMCR/67-06

Jayswal, M., & Vora, P. (2019). Impact of brand association on brand equity with specific focus on advergames in India. Journal of Creative Communications, 14(3), 271–284. https://doi.org/10.1177/0973258619866366

Keller, K. L. (2016). Reflections on customer-based brand equity: Perspectives, progress, and priorities. AMS Review, 6(1–2), 1–16. https://doi.org/10.1007/s13162-016-0078-z

Keller, K. L., & Brexendorf, T. O. (2019). Measuring brand equity. In Handbuch Markenführung (pp. 1409–1439). Springer. https://doi.org/10.1108/IJCHM-03-2020-0186

Khandai, S., Mathew, J., Yadav, R., Kataria, S., & Kohli, H. (2023). Ensuring brand loyalty for firms practising sustainable marketing: A roadmap. Society and Business Review, 18(2), 219–243. https://doi.org/10.1108/SBR-10-2021-0189

Kotler, P., & Keller, K. L. (2016). A Framework for Marketing Management (6th ed.). Pearson Education Limited.

Lee, Y. Y., Kee, D. M. H., Ang, V. W. N., Vehlan, L. S. S. V., Lee, L. X., Lee, S. M., & Ardel, M. R. (2024). Golden arches going green: The impact of McDonald’s sustainability achievements on public image. Advances in Global Economics and Business Journal, 5(1), 27–43. https://doi.org/10.51748/agebj.v5i1.89

Ling, G. Y., Yuang, G., Zhicheng, G., Xuan, G. T. X., Maharani, C. D., Genira, C. F., Tyagi, N., & Saidhanyakumar, M. (2023). Analysis of factors affecting brand loyalty: A study of Coca-Cola. Asia Pacific Journal of Management and Education, 6(3), 16–29. https://doi.org/10.32535/apjme.v6i3.2635

López-Rodríguez, C. E., & Forero, J. A. M. (2024). Dimensions for measuring brand equity in the airlines industry. Journal of Tourism and Services, 15(28), 22–38. https://doi.org/10.29036/jots.v15i28.552

Momen, M. A., Sultana, S., & Haque, A. A. (2020). Web-based marketing communication to develop brand image and brand equity of higher educational institutions: A structural equation modelling approach. Global Knowledge, Memory and Communication, 69(3), 151–169. https://doi.org/10.1108/GKMC-10-2018-0088

Nate, H. (2021, July 12). Brand association: Definition, advantages, and examples. Acquia. https://www.acquia.com/blog/brand-association

Niyomsart, S., & Khamwon, A. (2015, October 19–22). Brand love, brand loyalty, and word of mouth: A case of AirAsia. Paper presented at the International Journal of Arts & Sciences (IJAS) International Conference for Business and Economics, Rome, Italy. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2800887

Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric Theory (3rd ed.). McGraw-Hill.

Paethrangsi, N., Sangsomboon, P., Jandaboue, W., Vijitsanguan, P., Brahmaputra, P., & Teekasap, S. (2024). Effects of social media use for communication on the airline customers’ purchase intentions. Journal of MCU Social Science Review, 13(1), 334–341.

Parkin, D. A. (2010). Managing Brand Equity: Capitalizing on the Value of Brand Name. McGraw-Hill.

Puspaningrum, A. (2022). The role of brand preferences as mediating the influence of brand equity on purchase intention. Journal of Economics, Finance and Management Studies, 5(3), 738–748. https://doi.org/10.47191/jefms/v5-i3-25

Romaniuk, J., & Nenycz-Thiel, M. (2013). Behavioral brand loyalty and consumer brand associations. Journal of Business Research, 66(1), 67–72. https://doi.org/10.1016/j.jbusres.2011.07.024

Rubio, N., Oubiña, J., & Villaseñor, N. (2014). Brand awareness–brand quality inference and consumer’s risk perception in store brands of food products. Food Quality and Preference, 32, 289–298. https://doi.org/10.1016/j.foodqual.2013.09.006

Sarker, M., Mohd-Any, A. A., & Kamarulzaman, Y. (2021). Validating a consumer-based service brand equity (CBSBE) model in the airline industry. Journal of Retailing and Consumer Services, 59, 102354. https://doi.org/10.1016/j.jretconser.2020.102354

Sasmita, J., & Suki, N. M. (2015). Young consumers’ insights on brand equity: Effects of brand association, brand loyalty, brand awareness, and brand image. International Journal of Retail & Distribution Management, 43(3), 276–292. https://doi.org/10.1108/IJRDM-02-2014-0024

Sheikh, A., & Asemani, N. (2024). The influence of brand awareness on brand equity: An investigation among dentists and their prescription behavior. International Journal of Pharmaceutical and Healthcare Marketing. https://doi.org/10.1108/IJPHM-03-2022-0026

Siqueira, J. R., Bendixen, M., Reinoso-Carvalho, F., & Campo, R. (2023). Key drivers of brand trust in a Latin American airline: The impact of Colombia’s Avianca customer experience. Journal of Marketing Analytics, 11(2), 186. https://doi.org/10.1057/s41270-023-00208-8

Suwiryo, F. S., & Aryandha, P. N. (2024). The influence of brand awareness, perceived quality, brand associations, and brand loyalty on the brand equity of Oppo smartphones. Business Management Analysis Journal, 7(1), 1–10. https://doi.org/10.24176/bmaj.v7i1.12285

Teoh, K. B., Gan, K. H., Darishini, L., Umamageswari, U., Neoh, K. Y., Jivega, N., ... & Ma, Y. Q. (2023). A study on customer satisfaction of AirAsia Berhad. International Journal of Tourism and Hospitality in Asia Pasific, 6(3), 133-147. https://doi.org/10.32535/ijthap.v6i3.2170

Thakshak. (2018). Analysing customer-based airline brand equity: Perspective from Taiwan. Future Business Journal, 4(2), 233–245. https://doi.org/10.1016/j.fbj.2018.07.001

Thellefsen, T., & Sørensen, B. (2015). What brand associations are. Sign Systems Studies, 43(2/3), 191-206. https://doi.org/10.12697/SSS.2015.43.2-3.03

Tushanthan, A., Sekhar, L., Jian, O. Z., Liem, G. S., Ying, T. Z., Sheng, T. K., ... & Thalib, S. H. (2024). Analysis of strategy in retaining its customers: A case study of Starbucks in Malaysia. Advances in Global Economics and Business Journal, 5(1), 15–26. https://doi.org/10.51748/agebj.v5i1.90

Wei, S. (2024). The importance of brand image. Media and Communication Research, 5(1), 93–98. https://doi.org/10.23977/mediacr.2024.050115

Wilson, A., Zeithaml, V., Bitner, M. J., & Gremler, D. (2020). EBK: Services Marketing: Integrating Customer Service Across the Firm (4th ed.). McGraw-Hill.

DOI: https://doi.org/10.32535/ijthap.v8i3.4222