Journal of Accounting, Finance & Management Strategy





Volume 12, Number 2, December 2017

Low-fare Airlines Service Quality, Customer Satisfaction and Customer Loyalty


Accompanying with the huge potential growth, the aviation market of Vietnam is becoming more severe because of the harsh competition between domestic airlines as well as the rivalry of foreign rivals. It is necessary for low-fare carriers to enhance their competitive ability. However, the specific researches about this subject are still limited. This study conducted an empirical investigation to identify which factors have effect on service quality, customer satisfaction and customer loyalty within Vietnam low-fare airlines. The conceptual framework is provided in which customer expectation, perceived value, reliability and subjective norms are tested if they have positively impacts on customer satisfaction. Similarity, four variables including assurance, responsiveness, tangible and empathy are considered as predictors of service quality. Subsequently, the interrelationship between service quality, customer satisfaction and customer loyalty is examined. The results showed that customer satisfaction leads to customer loyalty, the offering service quality also help upgrading customer loyalty. Besides, four suggested variables (except customer expectation) and service quality have positively impact on customer satisfaction. Service quality is able to be improved through responsiveness and empathy - two variables have positively influence on it.

Keywords: Customer Loyalty, Customer Satisfaction, Service Quality, Vietnam Low-Fare Airlines

JEL Classification: D11, E21, N35, O53