Published: April 16, 2018 | Times of India
Ahmedabad: In order to secure a loyal customer base, airlines are investing a great deal on advertising, and other branding activities. But are activities like advertising and branding proving to be critical drivers of the aviation business? A study led by Dr Kallol Das, associate professor at MICA, states it isn’t.
His research “Understanding Airline Brand Equity Drivers: Lessons from a Multiple Case Study” comprised a case analysis of two budget airlines with almost the same period of operation but very different outcomes in terms of market share and customer perceptions.
One airline is the leader in the Indian market with a share of 39.6% in 2017 while another is a laggard operating at a market share of 8.5%. The objective of studying these contrasting cases was to distill the key principles of effective branding with respect to airline services.
Contrary to popular belief, the study revealed that the role of advertising and other company controlled branding efforts played the least significant role in brand equity formation in the case of airline services. On the other hand, customer’s experience with the company turned out to be the most crucial factor to brand equity formation.