The COVID-19 pandemic and repurchase intention in building brand engagement in the airline industry

Abstract

PurposeGripped by the COVID-19 pandemic, the airline industry has faced many restrictions. Based on the determining factor of repurchase intention, this research paper addresses the roles of brand engagement (BE) and consumer trust during the pandemic.Design/methodology/approachA number of 439 out of 500 questionnaires, which were distributed among the Iranian airlines' customers, were completed and returned (an 87% response rate). SmartPLS 3 was used to carry out the confirmatory factor analysis (CFA) and exploratory factor analysis (EFA) in order to validate the research hypotheses.FindingsThe results show that during the COVID-19 pandemic, BE had a significant effect on customer purchase intention. In addition, BE boosted customer trust and thereby increased repurchase intention. Perceived risks of COVID-19 moderated these relationships. The findings also show that airline customers are highly sensitive to various perceived risks and were especially so during the COVID-19 pandemic. These perceived risks have major impacts on customers' intention to reuse the services of airline companies. High levels of perceived risk decrease customer trust, BE and repurchase intention rates, and vice versa.Practical implicationsThis paper provides authorities and decision-makers of the air transport industry with several practical recommendations based on the research findings. As the results confirmed, there is a worthwhile relationship between BE and customer trust; regarding the both direct and indirect benefits of customer trust for for-profit firms and the huge importance of trust in creating competitive advantages, different airline companies need to implement various strategies to engage customers with their brand names, and thereby institutionalize trust in their customers' minds during the pandemic. Since customer trust was also found to improve repurchase intention rates significantly, authorities of the airline industry must take actions to reduce feelings of mistrust and risk among consumers and increase customer trust during COVID-19.Originality/valueThis paper is the first to explore the effect of BE on airline customers' repurchase intentions during the COVID-19 pandemic. It has produced practical suggestions to employees and activists of the air transport industry regarding the use of BE as a tool to restore customer trust during and after the COVID-19 epidemic. This research focuses on the airline industry, which is particularly interesting given the industry's intensely competitive environment and the dramatic effect of COVID-19 on the industry.