Exploring the Dynamics of Perceived Value, Brand Image, and eWOM: A Path to Loyalty in Vietnam's Low-Cost Airline Industry

Year 2025, Volume: 06 Issue: 01, 13 - 23

Loi Nguyen Anh , Ao Thu Hoai

Abstract

This study investigates the key drivers of passenger loyalty within Vietnam's low-cost airline sector, focusing on the roles of perceived value, brand image, and electronic word of mouth (eWOM). Customer loyalty, a crucial factor in the long-term success of airlines, enables cost efficiency, enhances brand equity, and builds sustainable customer relationships. Drawing on Holbrook’s Consumer Value Theory and Social Exchange Theory, the research posits that perceived value influences both loyalty and eWOM directly, while brand image moderates the eWOM-loyalty relationship. Using a structured survey, data was collected from 236 passengers, and Structural Equation Modeling (SEM) with SmartPLS 4 validated the measurement and structural models. Findings reveal that perceived value significantly enhances brand image and loyalty and drives eWOM, supporting its role as a core component of passenger behavior. Additionally, the moderating role of brand image strengthens the impact of eWOM on loyalty, indicating that a robust brand image reinforces consumer trust and engagement. The study's practical implications recommend that Vietnam's low-cost airlines prioritize perceived value, actively manage eWOM, and invest in brand-building strategies to boost loyalty. While these insights offer a comprehensive framework for strengthening competitive advantage, future research should address the study’s limitations by expanding the sample to different regions and exploring additional factors, such as service personalization and environmental sustainability. This research thus provides both theoretical contributions and actionable guidance for enhancing passenger loyalty in low-cost airlines.

Keywords

Perceived value, airline brand image, eWOM, passenger loyalty, low-cost airlines.

Ethical Statement

This study adheres to all research ethical principles, does not infringe upon the rights of any individual or organization, and has no conflicts of interest.

Supporting Institution

None

Project Number

None

Thanks

We sincerely thank colleagues and organizations for their financial and professional support, as well as individuals who provided valuable information that contributed to the completion of this research.

References

• Aaker, D. A. 2009. Managing brand equity: Capitalizing on the value of a brand name. Simon and Schuster.
• Ahmad, A., AlMallah, M. M., & AbedRabbo, M. 2022. Does eWOM influence entrepreneurial firms’ rate of diffusion of innovation? Journal of Research in Marketing and Entrepreneurship, 24(1), pp 92-111.
• Aristana, I. K. G. A., Yudhistira, P. G. A., & Sasmita, M. T. 2022. The Influence of Brand Image and Brand Trust on Consumer Loyalty (Case Study on Consumers of PT Citilink Indonesia Branch Office Denpasar). TRJ Tourism Research Journal, 6(1), pp 60-73.
• Arslan, I. K. 2020. The importance of creating customer loyalty in achieving sustainable competitive advantage. Eurasian Journal of Business and Management, 8(1), pp 11-20.
• Blau, P. 2017. Exchange and power in social life. Routledge.
• Boubker, O., & Naoui, K. 2022. Factors affecting airline brand love, passengers’ loyalty, and positive word-of-mouth. A case study of Royal Air Maroc. Case Studies on Transport Policy, 10(2), pp 1388-1400.
• Bui, S.-C., & Chang, Y.-C. 2022. Generating positive online word of mouth via brand image and trust: The moderation role of perceived privacy. Journal of Business Administration, 47(3), pp 29-41.
• Chen, C. F., & Tseng, W. S. 2010. Exploring customer‐based airline brand equity: evidence from Taiwan. Transportation journal, 49(1), pp 24-34.
• Choi, P. H. 2023. The Effects of Airline Core Service Quality on Perceived Value, Brand Image and Behavioral Intention. Journal of Tourism and Leisure Research, 35(2), pp 123-143. https://doi.org/10.31336/jtlr.2023.3.35.2.123
• Fragnière, E., Lombardi, A., & Moresino, F. 2012. Designing and pricing services based on customer-perceived value: an airline company feasibility study. Service Science, 4(4), pp 320-330.
• Fu, Y.-K. 2023. Airline brand image, passenger perceived value and loyalty towards full-service and low-cost carriers. Tourism Review, 78(6), pp 1433-1451.
• Gurler, H. E. 2024. How does service quality predict loyalty? The serial mediation effects of perceived value and consumer brand identification. International Journal of Quality & Reliability Management, Vol. ahead-of-print(No. ahead-of-print). https://doi.org/10.1108/IJQRM-12-2023-0385
• Hair, J., Black, W., Babin, B., & Anderson, R. 2014. Multivariate Data Analysis: Pearson New International Edition; Essex Pearson Educ (Vol. 1).
• Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. 2017. A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.).
• Henseler, J., Hubona, G., & Ray, P. A. 2016. Using PLS path modeling in new technology research: updated guidelines. Industrial management & data systems, 116(1), pp 2-20.
• Holbrook, M. B. 1999. Consumer value. A framework for analysis and research, 5-14.
• Jaman, D., & Sopiah, A. 2019. The Effect of Service Quality and Electronic Word of Mouth (E-WOM) Towards the Loyalty Through Brand Image (The Study on the Customers of Sriwijaya Air in Indonesia). European Journal of Business and Management, 11, p 12.
• Jang, S.-Y., & Lim, K.-U. 2022. The influence of airline SNS marketing activities on airline image, perceived value, and behavior intentions. International Journal of Tourism and Hospitality Research, 36(7). https://doi.org/10.21298/ijthr.2022.7.36.7.125
• Jong-un, K., Junwoo, K., & Hong-cheol, S. 2023. Impact of low-cost airline SNS marketing activity characteristics on perceived value, customer satisfaction, and behavioral intention. Hotel Management Research, 32(2), pp 143-160.
• JSC, V. A. 2022. IR Presentation: Key highlights 2022. https://ir.vietjetair.com/File_Upload/thong-tin-tai-chinh/ket-qua-hoat-dong-quy/2022/VJC%20Key%20Highlights%202022%20IR%20Presentation.pdf
• Khan, M. F., Amin, F., Jan, A., & Hakak, I. A. 2024. Social media marketing activities in the Indian airlines: Brand equity and electronic word of mouth. Tourism and Hospitality Research, 14673584241237436.
• Kim, B. H., & Kim, C. S. 2023. A Study on Influencing Factors on Airline Brand Loyalty Through Mediating Factors of Perceived Service Value in the COVID-19 Pandemic. Journal of Korea Service Management Society, 24(2), pp 241-269. https://doi.org/10.15706/jksms.2023.24.2.010
• Kim, H. L., & Hyun, S. S. 2019. The relationships among perceived value, intention to use hashtags, eWOM, and brand loyalty of air travelers. Sustainability, 11(22), p 6523.
• Kudeshia, C., & Kumar, A. 2017. Social eWOM: does it affect the brand attitude and purchase intention of brands? Management Research Review, 40(3), pp 310-330.
• Lu, J.-L. 2014. Investigating passengers’perceived value of full service airlines and low-cost carriers. Journal of Air Transport Studies, 5(2), pp 23-34.
• Mathilda, N., Ahary, A. P., & Rahayu, F. 2022. Consequences of eWOM & Social-Media and Brand Image. The Management Journal of Binaniaga, 7(2), pp 183-196.
• Mayr, T., & Zins, A. H. 2012. Extensions on the conceptualization of customer perceived value: insights from the airline industry. International Journal of Culture, Tourism and Hospitality Research, 6(4), pp 356-376.
• Mohamed, M. A. A. 2023. Implementing Innovative CSR Practices to Improve the Company’s Perceived Value and Market Share in the context of Aviation Industry in the UAE International Conference on Pioneer and Innovative Studies,
• Nugroho, A. 2023. Airport Service Quality and Word of Mouth. Jurnal Manajemen Transportasi & Logistik (JMTRANSLOG), 9(2),pp 121-128.
• Odabaşoğlu, Ş., Kılıç, A., & Teke, A. 2022. Marka Değerinin Ağızdan Ağıza İletişim Üzerindeki Etkisi. International Journal of Management and Administration, 6(12), pp 218-237.
• Oktafia, S. D., & Sutarwati, S. 2023. The Influence of Electronic Word of Mouth and Brand Image on the Interest in Buying Citilink Passenger Tickets at Juanda International Airport. Formosa Journal of Sustainable Research, 2(1), pp 61-76.
• Oliver, R. L. 1980. A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of marketing research, 17(4), pp 460-469.
• Saa’ed, S. A., & Saa'ed, S. A. 2024. Importance of social media marketing and electronic word of mouth on brand and customer loyalty. . Journal of Global Economics and Business, 5(18), pp 46-71. https://doi.org/10.58934/jgeb.v5i18.273
• Samosir, J., Purba, O., Ricardianto, P., Dinda, M., Rafi, S., Sinta, A., Wardhana, A., Anggara, D., Trisanto, F., & Endri, E. 2023. The role of social media marketing and brand equity on e-WOM: Evidence from Indonesia. International Journal of Data and Network Science, 7(2), pp 609-626.
• Song, B. L., Liew, C. Y., Sia, J. Y., & Gopal, K. 2021. Electronic word-of-mouth in travel social networking sites and young consumers’ purchase intentions: an extended information adoption model. Young Consumers, 22(4), pp 521-538.
• Suweri, M. A., & Hidayat, A. 2024. Perceived Experience, Value, and Customer Loyalty: The Mediating Role of Satisfaction in Citilink's YIA-PKU Route. Asian Journal of Economics, Business and Accounting, 24(7), pp 475-492.
• Tajfel, H., & Turner, J. 1979. An integrative theory of intergroup conflict. The social psychology of intergroup relations/Brooks/Cole, pp 33-47.
• Wijaya, N. H. S., & Anjasari, B. A. 2022. Brand experience and WOM: the mediating effects of brand love, brand image, and brand loyalty. Asia Pacific Journal of Management and Education (APJME), 5(3), pp 48-57.
• Yodpram, S. and Intalar, N., 2020, July. Conceptualizing ewom, brand image, and brand attitude on consumer’s willingness to pay in the low-cost airline industry in thailand. In Proceedings (Vol. 39, No. 1, p. 27). MDPI.
• Zhang, X., Tong, S., Eres, H., Kossmann, M., & Wang, K. 2014. A value-focused approach for establishing requirements’ specification of commercial aircraft. Proceedings of the Institution of Mechanical Engineers, Part G: Journal of Aerospace Engineering, 228(11), pp 2033-2044.