This research finds that AI-based service quality enhances brand performance in low-cost carriers, suggesting brand reputation moderates personalization impacts.
This research aims to explore how the use of Artificial Intelligence (AI) can enhance the brand performance of competitive Low-Cost Carriers (LCCs). Moreover, this study investigates the impact of the AI-based service quality and the AI-based personalization of the chatbot technologies on the brand performance results across LCC brands. Furthermore, the moderation of brand reputation has also been tested. The research participants were foreign university students of Universiti Utara Malaysia who travelled from LCCs. Sample size was calculated using G-Power. Furthermore, Smart PLS-SEM was utilized to analyze the hypothesized constructs. There is a significant relationship between AI-Based Service quality, AI-Based Personalization and Brand performance. Moreover, brand reputation serves as a significant moderator in the personalization-performance relationship, while an insignificant moderation effect was found for AI-based service quality and brand performance. The study contributes from the perspective of passenger perception about AI-based service quality and personalization affecting the brand's performance with the moderation of Brand reputation of LCC brands. On the basis of the results, potential strategies can be introduced by LCCs to increase profitability by improving brand performance through AI-based service Quality and AI-based personalization.
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Tariq et al. (2025) studied this question.
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