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

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 4.0 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.