The Influence Of Brand Equity In Tigerair Australia

Brand equity, in general terms, simply refers to how much a product is worth and how consumers behave and associates themselves with that product (Slotegraaf, Rebecca & Pauwel, 2008; Page 93-306). Consumer attitudes and the value of the product is linked to brand equity as it will determine how big of the market share the brand will occupy and how much the brand will earn in the long run. As the aviation industry is extremely competitive, many airlines have customer loyalty schemes and frequent flyer programmes to maintain or expand their brand equity, making the switching costs substantially high between airlines (Chen & Chang, 2008; Page 40-42). Chen and Chang (2008) also found out that brand equity is also linked to brand preference, purchase intentions and have an influence on consumers when they are thinking about switching brand products. Tigerair Australia’s brand equity was low in the Australian aviation market due to low brand awareness from consumers, the breaches of safety regulations by the Australian Civil Aviation Safety Authority (CASA), and strong competition from competitors like Jetstar. Figure 2.1 Relationship framework

Due to their bad customer service, they received a high level of complaints per week and the brand image in customers’ minds were extremely negative. To be the preferred carrier for price-conscious customers, they must first improve their brand image by changing customer attitudes. They can use the altering to outcome evaluation strategy to try and persuade consumers to reassess and re-evaluate the existing impressions they have on Tigerair Australia. There are three areas of customer service that Tigerair Australia can work on – on the aircraft, in the airport, and out of the