The effect of airline service quality, perceived value, emotional attachment, and brand loyalty on passengers’ willingness to pay: The moderating role of airline origin

Abstract

Passengers’ willingness to pay (WTP) has become a critical factor for airlines, particularly during the current political and economic conditions that have led to a massive increase in airline ticket prices. Nevertheless, the current literature on passengers’ WTP has concentrated on economic models that address supply and demand determinants, while marketing and psychological determinants still need further investigation. Therefore, this study aims to investigate how airline service quality, perceived value, emotional attachment, and airline brand loyalty influence passengers’ WTP for airline services, and to what extent passengers’ perceptions of airline origin can moderate these effects. Data were gathered using questionnaires and were analyzed using confirmatory factor analysis (CFA), structural equation modelling (SEM), and multi-group analysis. The results revealed that airline service quality, perceived value, and brand loyalty significantly contribute to passengers’ WTP. It also proved that passengers’ biased perceptions towards national airlines can strengthen the positive effects of these variables on their WTP for national airlines and vice versa for their WTP for foreign airlines. Finally, the study presented several theoretical contributions to airline travel literature and practical implications for airline service marketers.