航空安全認知對台灣國際航空公司形象與忠誠度的影響分析

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(1)國立臺灣師範大學管理學院管理研究所碩士論文 Graduate Institute of Management College of Management National Taiwan Normal University Master Thesis 航空安全認知對台灣國際航空公司形象與忠誠度的影響分析 Effect of the perception of aviation safety on Image and Loyalty in International Airlines of Taiwan 朱那玹 Nahyun Ju 指導教授：陳敦基博士 Advisor：Chen, Dun-Ji Ph.D. 中華民國 108 年 8 月 August, 2019.

(2) CONTENTS Abstract .......................................................................................................................................... vi 摘要 ................................................................................................................................................ vii Chapter 1. Introduction................................................................................................................. １ 1.1 Background and Motivation ............................................................................................ １ 1.2 Study Purpose ................................................................................................................... １ 1.3 Study Structure ................................................................................................................. ２ Chapter 2 Literature Review ........................................................................................................ ２ 2.1 Aviation Perceived Safety .............................................................................................. ２ 2.2 Factors in Selecting Airlines ................................................................................................. ３ 2.3 Airline Image..................................................................................................................... ４ 2.3.1 Concept of image ..................................................................................................... ４ 2.3.2 Airline image component ........................................................................................ ４ 2.4 Service Quality .................................................................................................................. ６ 2.4.1 The concept of service quality in airline industry .................................................. ６ 2.4.2 Service Quality Component .................................................................................... ７ 2.5 Airline Customers Loyalty ................................................................................................ ７ 2.5.1 The concept of customer loyalty ............................................................................. ７ 2.5.2 The relationship between brand image and customer loyalty ............................... ９ 2.5.3 The relationship between brand image and service quality ............................... １０ 2.5.4 The relationship between service quality and customer loyalty ........................ １０ 2.6 Airline Comparison....................................................................................................... １０ 2.6.1 China Airlines ..................................................................................................... １１ i.

(3) 2.6.2 EVA Airways ....................................................................................................... １１ 2.7 Comparison of China Airlines and EVA Airways Units............................................... １２ 2.7.1 Aviation accidents .............................................................................................. １２ 2.7.2 Price comparison of China Airlines and EVA Airways ...................................... １３ 2.7.3 National Airline Global Operations Overview ................................................... １４ Chapter 3 Proposed Theory and Hypotheses ........................................................................... １７ 3.1 Research Framework .................................................................................................... １７ 3.1.1 Definitions of variables .................................................................................... １９ 3.2 Hypotheses .................................................................................................................... １９ 3.3 Measurement variable .................................................................................................. ２０ 3.4 Research Methodology.................................................................................................. ２５ 3.4.1 Research method ................................................................................................. ２５ Chapter 4 Research Results ...................................................................................................... ２６ 4.1 Statistical Characteristics of Samples .......................................................................... ２６ 4.2 Reliability Verification, Correlation, and Factor Analysis Results ............................. ２９ 4.3 Final Model Estimation ................................................................................................ ２９ 4.3.1 Structural Equation Model ................................................................................. ２９ 4.3.2 Regression weights .............................................................................................. ３２ 4.3.3 Multiple regression ............................................................................................. ３４ 4.4 Research Hypotheses Test Results ............................................................................... ３６ Chapter 5 Conclusion ................................................................................................................ ３８ Reference ................................................................................................................................... ４５. ii.

(4) List of Figures Figure 1: A study on the importance-performance analysis of airline choice factors, concentrating on the Chinese international passengers, July 2009 - Ryu Hyang Ryun................................................................. ４ Figure 2: Brand Loyalty Pyramid ................................................................................................................ ９ Figure 3 : Ministry of Transportation and Communications, 12 2018 .................................................... １５ Figure 4: Tourism Statistics Database of the Taiwan Tourism Bureau 2019 ........................................... １６ Figure 5 : Research Methodology............................................................................................................. ２５ Figure 6: Final Model for Structural Equation........................................................................................ ３０ Table 21: Model Fit................................................................................................................................... ３１ Figure 7: Model without Perceived Safety and Service Impact on Customer Loyalty ............................ ３３. iii.

(5) List of Tables Table 1: Service quality aspects in airline industry (multiple sources) ................................................................... ６ Table 2: Gronroos’ Service Quality Component ....................................................................................................... ７ Table 3: Matrix of loyalty and customer satisfaction. Source: Lisafeva et al. 2012, p. 71 ..................................... ８ Table 4: Comparison of China Airlines and EVA Airways .................................................................................. １２ Table 5:Aviation accidents ...................................................................................................................................... １２ Table 6: Price Comparison of China Airlines and EVA Airways ........................................................................ １４ Table 7: Configuration of Questionnaire ............................................................................................................... ２０ Table 8: Preliminary Questions .............................................................................................................................. ２１ Table 9: Measurement of Airline Brand Image .................................................................................................... ２２ Table 10: Measurement perception of Perceived Safety....................................................................................... ２２ Table 11: Measurement Perception of Ticket Price .............................................................................................. ２３ Table 12: Measurement perception of Service Quality ........................................................................................ ２３ Table 13: Measurement of Customer Loyalty ....................................................................................................... ２３ Table 14: Main carriers........................................................................................................................................... ２７ Table 15: Type of Membership ............................................................................................................................... ２７ Table 16: Type of trip .............................................................................................................................................. ２７ Table 17: The Reason of Departure ....................................................................................................................... ２８ Table 18: The Reason to Prefer This Airline Frequencies .................................................................................... ２８ Table 19: Overseas Destination Frequencies ......................................................................................................... ２８ Table 20: Reliability Statistics ................................................................................................................................ ２９ Table 21: Model Fit ................................................................................................................................................. ３１ Table 22: Estimation for Between Parameter and Latent Variable Regression Weights................................... ３２ Table 23: Regulation after Excluding the Impact of Perceived Safety and Service on Customer Loyalty ...... ３３. iv.

(6) Table 24: Correlations ............................................................................................................................................. ３４ Table 25:Model Summary....................................................................................................................................... ３４ Table 26: QP Coefficients ........................................................................................................................................ ３５ Table 27: Perceived Safety X Perceived Price Model Summary.......................................................................... ３５ Table 28: Perceived Safety X Perceived Price Coefficients .................................................................................. ３６ Table 29: Results of Hypotheses Testing ................................................................................................................ ３７. v.

(7) Abstract Aviation is a type of public transportation service that is common in modern times due to economic growth and increasing incomes. The contents of this study are based on a passenger survey to explore whether favorable images have a positive impact on customer loyalty. The study mainly considers three factors—the perception of safety, quality of service, and price— to examine how they affect the image of the airline, and how the airline’s image affects customer loyalty. The study aims to examine whether airline imagery directly affects airline loyalty and the possible effects of price factors in these impact processes. This study establishes two models. Model 1 mainly assumes that security perception and service quality affect image and loyalty, and price is the interference factor, while perceived safety and service quality affect the airline’s image. Model 2 assumes that price plays the role of intermediary variable while perceived safety and service quality affect the airline’s image, and that image then affects passengers’ loyalty to the airline. The 267 samples for this study were collected from departing Taiwanese passengers at Taoyuan Airport Terminals 1 and 2. An interviewer explained the purpose and questions in the questionnaire survey, then the respondents entered the associated data and answers by themselves. In methods of the study, the SPSS and SEM statistics programs were used to analyze the reliability and validity of questions of each variable, including perceived safety, price, service quality, image, and loyalty. Furthermore, the study adapted the method of the structure equitation model to test the associated hypotheses of the two models. According to the empirical study results, it can be observed in Model 1 that the passengers’ perceived safety and service quality directly affects their loyalty to the airline. At this time, the airline’s image does not significantly affect passengers’ loyalty. The price does not interfere with the impacts of the previous two factors on the image of the airline. In Model 2, perceived safety and service quality can be observed as significantly affecting passenger loyalty through the image of the airline. While the previous two factors affect the airline’s image, the price is not an intermediary factor. In general, although the airline image affects passenger loyalty, it is not as significant as the perceived safety and service quality, which directly affect loyalty. Regarding the price factor, it cannot possess the interference and intermediary effects in the relevant influences of the airline image.. vi.

(8) 摘要由於經濟及所得的成長，使得航空運輸服務成為現代一種被普遍使用的公共運輸服務。本研究內容在於利用問卷的方式探討良好形象是否對消費者忠誠度有正面影響。本研究主要考慮「安全感受」、「服務品質」及「價格」等三項因素如何影響航空公司的形象，進而檢視航空公司的形象是否影響消費者的忠誠度。本研究目的即在檢驗航空公司形象是否會直接影響航空公司忠誠度，以及價格因素在這些影響過程中所可能產生的效應。本研究建立了兩個模型，模型 1 主要假設「安全感知」與「服務品質」在影響形象與忠誠度時，「價格」分別為「安全感受」與「服務品質」影響航空公司形象之間的干擾變數；模型 2 則假設「價值格」在「安全感受」與「服務品質」影響航空公司形象之間，扮演中介變數的角色，進而使航空公司形象影響旅客忠誠度。本研究所蒐集的樣本範圍主要為桃園國際機場第一與第二航廈的台灣國籍旅客。問卷調查主要由訪员說明研究的目的及問題，再由受訪者自行填入相關資料及回答。本研究共蒐集了 267 份有效樣本。在研究方法上，本研究利用 SPSS 與 SEM 相關統計軟體，分析各因素之間的信度，並檢驗安全感受、服務品質、價格、形象，以及忠誠度等相關變數問項的信度及效度。為了檢視前述兩個模式的有效性，本研究進一步採用結構方程模型方法，以進行兩個模型相關假設之驗證。實証訮究結果顯示，由模型 1 可知，旅客的安全感受與服務品質會直接影響其對航空公司的忠誠度，此時航空公司形象並不會顯著影響旅客的忠誠度；而價格也不會干擾前兩項因素對航空公司形象的影響。由模型 2 可知，安全感受與服務品質可透過航空公司形象，顯著影響旅客的忠誠度；而前兩項因素對航空公司形象影響中，價格不會是中介因素。綜合而言，航空公司形象雖會影響旅客忠誠度，但不如安全感受與服務品質直接對忠誠度的影響性顯著；至於價格因素在航空公司形象的相關影響中，不會產生干擾與中介效果。品質直接對忠誠度的影響性顯著；至於價格因素在航空公司形象的相關影響中，不會產生干擾與中介效果。. vii.

(9) Chapter 1. Introduction 1.1 Background and Motivation The aviation industry has long regarded perceived safety as critical and has made many qualitative improvements. New technologies developed recently with great risk have minimized aircraft mechanical defects. For example, the development of highly automated aircraft and automated navigation systems has shown the potential for automation at almost every step. Accordingly, the airplane is recognized as a relatively safe means of transportation compared to other transportation services (Hyun-Joo․Kim, Sang-Hyuck 2013). The perception of aircraft safety has led to more people choosing air travel, which has become a more common travel method rather than a luxurious type of travel. Also, many travelers have no difficulty communicating in foreign languages due to improvements in education level and the various ages of customers (Hwang Hee-ha, 2014). The development of smart devices, relatively easy access to the information needed for travel, and the reputation of various airlines have made the airline industry more competitive. Today’s passengers can make more choice comparisons for their air travel. In recent years, low-cost airlines have been growing rapidly in Taiwan, and many foreign low-cost airlines have established a waypoint in Taiwan. Traditional airlines are feeling the pressure (Ching-Ying Hyuang, 2017). In this competition, airlines must make their customers feel more special and differentiate themselves from their rivals. In a competitive market, the airlines must understand customer loyalty in order to keep their customers. Customer satisfaction is a major consideration as travelers decide whether to stay loyal to their provider or defect (Reichheld, 2006). Customers select their travel providers based on how well the providers meet their service expectations (Zeithaml, Berry and Parasuraman, 1996). In addition, customers examine not just prices and products but also values that businesses and products have. Some of the values are considered tangible, but they also contribute to the brand’s image as an intangible asset (Hwang Hee-ha, 2014). Under this theory, this study will investigate loyalty by analyzing the general image and attitude of customers of the representative airlines of Taiwan. 1.2 Study Purpose Brand images and perceptions are shaped by past experiences or opinions of people who observe them. A positive image or attitude toward these brands can affect the company's profits by increasing loyalty and directly influencing the willingness to buy. Changing an existing image or attitude of a particular brand requires a significant inputs of cost, strategy, and time, so companies consider the brand image important (Faircloth, Capella and Alford, 2015). This study examines what influences people of Taiwanese nationality as a factor in choosing airlines. The study established perceived safety, price, service quality, and image as variables in selecting airlines. These variables will be used in analyzing differences between the final criteria and the generally perceived hypotheses and in exploring new discoveries. The purpose of this study is based on a survey of whether favorable images have a positive impact on loyalty. Perceived safety, quality of service, and price are examined to １.

(10) determine how they affect the image of the airline and to study how the airline’s image is affected by customer loyalty. In the course of the research, we examine whether there is a stage in which airline image affects airline loyalty and whether a favorable image maintains a strong correlation with high loyalty. We divided the study into two models. The first examines whether the price acts as an interference variable between perceived safety and quality of the three variables when they affect the image and the loyalty. The second examines whether or not price serves as a bridge between the effects of perceived safety and quality among the three variables. Our expectations are that the possibility of the first model is greater, and that we will explore the role of price. 1.3 Study Structure This study combines literature research, prior study, and empirical analysis with theoretical background to achieve research objectives. In the literature study, the theoretical basis is presented by reference to domestic and foreign prior research, books, the Internet, and publications. Chapter 1, the introduction, establishes the background, purpose, and method of the study, and describes the overall framework of the study, its composition. Chapter 2, the literature review, describes the concept of airline brand image and loyalty and the concepts of airline service quality, perceived safety, and customer satisfaction based on prior studies. Chapter 3, the proposed theory and hypotheses, establishes research models and research hypotheses based on theoretical backgrounds and presents survey designs for empirical analysis. Chapter 4, the data analysis, conducts verification of the general characteristics of the data and the hypothesis of the study through the SEM and SPSS. The study results describe the empirical analysis and results. Chapter 5, the conclusion, summarizes the contents and results of the study and produces suggestions to express the significance of the study. It also describes the limitations of the research and suggests the direction and feasibility of future research. Chapter 2 Literature Review 2.1 Aviation Perceived Safety In the field of aviation, perceived safety is defined as flying unharmed to a destination. Lim Beom-gyu (2007) defined it as perceived safety management, which can be secured by removing various hazards, and also policy and institutional measures to remove and manage hazards. Aviation perceived safety also means a state in which the risk of harm to individuals or property loss is reduced to an acceptable level or maintained below that level through continuous identification and management of risks (임범규, 2007). The ICAO’s Air Navigation Commission called aviation perceived safety a state that is free of human damage and risks to aircraft and property damage (ICAO., Working Paper ANVIP/7699, Determination of a Definition of Aviation Safety, 2011). ICAO Annex 19 (Annex19) “Perceived Safety Management” defined perceived safety as an acceptable, reduced, and controlled state to the extent that the levels of risk associated with aircraft operations and related direct support tasks are acceptable (ICAO., Safety Management Manual(SMM), Doc9859, 3rd Edi, 2013). ２.

(11) South Korea’s Ministry of Land, Infrastructure and Transport defined perceived safety as maintaining risk below levels that could cause casualties or property losses through factors discovery and risk management (TransportAir, 2014). Lee Ku-hee (2015) defined aviation perceived safety as containing no human or physical damage risk, acceptable risk status, and controllable conditions for hazards that undermine perceived safety (HeeLee, 2015). This study outlined the definition of perceived safety based on the preceding researchers. We have referred to the results of prior studies on aviation perceived safety that are important in this study. The effect of aviation perceived safety on user behavior has been examined in previous studies. Lee Kang-seok (2000) analyzed how much the variables in aviation perceived safety affect the behavior of airline choice and indicated that airline accidents significantly affect aircraft passengers’ safety perceptions and change their preferences to other airlines rather than to other means of transport. This research suggested that perceived air safety variables are considered by users as airline choice variables (이강석, 2000).. 2.2 Factors in Selecting Airlines The Air Travel Consumer Report, issued by the U.S. Department of Transportation, includes on-time arrival, baggage handling, perceived safety issues or appropriate responses to delayed flights, cancellations, and cruises as factors that influence customers in choosing airlines. Customers also are focusing on various areas such as reservation and ticket issuance, rate problems, refund problems, and advertisements. The U.S. Commerce Department regularly conducts surveys of airline choices by international travelers, focusing on whether there is a direct flight in the schedule, whether airlines are perceived as safe, and what inflight and commercial customer programs are available (Gilbert and Wong, 2003). Son Dae Hyun (1993) argued that air transportation services consist of five categories: physical services, human services, in-flight services, ground services, and air transportation package services. Physical services consist of goods, environment, and service delivery systems, and human services include customer-oriented thinking of frontline crews. In-flight services consist of in-room services and in-flight meals, while ground services consist of ground transportation services such as reservations and ticketing. Finally, air transportation package services can be divided into core service and auxiliary service (Ryu Hyang Ryun, 2009).. ３.

(12) Figure 1: A study on the importance-performance analysis of airline choice factors, concentrating on the Chinese international passengers, July 2009 - Ryu Hyang Ryun Physical Services: Products, Environment Service Providing System Human Services: Customer-oriented mindset of first-line employees In-flight service: In-room service and in-flight air service. Aviation service. Ground Services: Reservation of tickets, ground transportation services such as ticketing. Core Services: Passenger Transportation Air freight package service Auxiliary service: Provide air travel information, The provision of in-flight food drinks Service of cabin crew. 2.3 Airline Image 2.3.1 Concept of image Brand image is based on consumers’ perception. The image of a company or a brand now is an essential factor in a customer’s decision making, and research on image has long been actively conducted. When we examine existing studies on images, scholars define images in various ways. Kotler (2012) defines the brand image as “a set of beliefs that [customers] have about a particular brand.” Kotler and Keller (1997) define brand image as the perception of a brand reflected by brand association stored in consumer memory. Steenkamp (2001) defines the image of a company as the sum of people’s general concepts and impressions of the company. These impressions of the company result in a negative or positive attitude toward the general public or consumers. In addition, customers consider various factors such as logo, design, quality, and atmosphere, and form an image for each brand. When customers have a positive image about a specific brand, customers are more likely to choose the brand. Even if a problem arises, it will be confronted generously (Kim, Byung-Soo, Yun-Mi, Moon, Shin-Young, 2013). 2.3.2 Airline image component The airline image results from the aggregate process of the psychological characteristics and the physical characteristics of the airline compared by the customers. Therefore, the brand image of an airline is influenced by the overall communication, including both the physical and personal services of the airline. The brand image that the customer has about the airline is not only a decision on the choice of a particular airline, it also plays an important role in repurchase decisions. The reason why such an image of an airline brand is important is ４.

(13) that once people form an image for a certain object, they tend to respond to the image formed rather than rely on objective information or knowledge about the object (Kim, Sung Hyuk and Donghee, 2002). The image of the airline can be defined as the overall shape and feelings that customers have about the airline because their perceptions are shaped differently according to the subjective value judgment of the passengers. The image refers to a mental concept for an airline or a positive or negative attitude toward a particular airline (Wang Su Myung, 2015). For example, it was reported that after a 2013 accident at an airline at an American airport, the proper perceived safety of the cabin crew did not cause much casualty or material damage compared to the size of the accident. As a result, the image of the perceived safety of the airline has changed positively. The image of a successful airline is an important means of differentiation. It can be a means of recognizing customers by taking advantage of competition from other airlines. Airline image formation is more complex than other corporate image formations, and the importance of each component depends on the needs and desires of customers. The airline image is formed by the organic action by the various variables. In conclusion, airline image is the overall impression that the physical and human service elements function together. This image is a factor that plays an essential role in a customer’s decision making and motivation for airline selection. It is a factor to be considered as a differentiating means to overcome the similarity with other airlines and to gain a competitive advantage (Wang Su Myung, 2015).. ５.

(14) 2.4 Service Quality 2.4.1 The concept of service quality in airline industry Parasuraman, Zeithaml, & Berry (1988) argue that service quality is an important requirement of customer satisfaction and is generally an important prerequisite for company survival and prosperity. Quality is a property that determines the usefulness of a product or a basic attribute that a product must have to perform its intended use. Because it is composed of various characteristics, it becomes an evaluation concept based on various aspects. The concept of quality is often accepted as ambiguous and obscure terms such as excellence, luxury, and excellence (Parasuraman, Zeithaml, and Berry, 1985). This table shows other researchers’ claims about the quality of airline service that Grassl (2000) and Tolpa (2012) summarized in the definition of service quality (Tolpa, 2012). Table 1: Service quality aspects in airline industry (multiple sources) Service quality aspects Researcher(s) Price, Perceived Safety, timelines, baggage Gourdin (1998); Elliot and Roach (1993) transportation, food quality, seat comfort, check-in process and on-board services Seat comfort, Perceived Safety, courtesy of Tsaur, Chang & Yen (2002) staff Airlines reliability (Perceived Safety) Fick & Ritchie (1991) Aircraft type Truitt & Haynes (1994) First customer contact / interaction with Carlzon (1987); Bitner, Booms & Tetreault contact employees (1990) Airline brand, Price, sleep comfort Boetsch et al. (2011) Frequency and timings, punctuality, airport Shaw (2007) location and access, seat accessibility/ticket flexibility, frequent flyer benefits, airport services, in-flight services Employee’s service, Perceived Safety & Liou & Tzeng (2007) reliability, on board service, schedule, on time performance, frequent flyer program Flight schedule, total fare, flexibility, Teichert et al. (2008) frequent flyer program, punctuality, catering, ground services Level of concern and civility, listening and Babbar & Koufteros (2008) understanding, individual attention, cheerfulness, friendliness, courtesy Willingness to correct errors, task Mersha & Adlakha (1992) proficiency, courtesy, friendliness, tolerance On-time performance, overbooking, Tiernan et al. (2008/2) mishandled baggage, customer complaints <Ekaterina Tolpa, Measuring Customer Expectations of Service Quality: case Airline Industry. 2012,p.36.>. ６.

(15) 2.4.2 Service Quality Component. Table 2: Gronroos’ Service Quality Component Component Content Professionalism Recognizing that service providers, employees, operating systems and & Skills resources have the knowledge and skills necessary to solve problems Attitudes & Behavior. Believing that employees are very kind and spontaneous and pay attention to customer needs and problem solving. Accessibility & Flexibility. Believing that the service provider, location of the service organization, operating hours, employees, operating systems, etc. are well operated and adjusted according to the customer's desire and demand Believing that the service is carried out the service with the highest priority in mind for the customer in any case. Reliability & Trustworthiness Recovery. Believing in the immediate and proactive effort and resolution alternatives of service providers to customer complaints.. Reputation & Credibility. Determining whether a service charge is valued and if customers believe the service operation represents performance and value by the customer and service provider.. <Reference : C. Gronroos, “Service Management and Marketing Moment of Truth in service Competition, MA: Lexington Books, 1990, p.47.>. 2.5 Airline Customers Loyalty 2.5.1 The concept of customer loyalty Oliver (1999) defines loyalty as “deeply related to the customer reorganizing and re-using their preferred product or service in the future, despite brand’s marketing efforts and situational influences having the potential to cause changing behaviors.” It is more costeffective for a company to retain existing customers than to acquire new ones. Typical customers easily change their minds to purchase other services, but loyal customers purchase from the same brand and rarely change their minds. Customer loyalty cannot be obtained quickly and is built through sourcing and design decisions. Designing for customer loyalty recognizes customer service needs and requires a customer-centric approach. Customer loyalty is built over time through multiple transactions (Kiseleva et al., 2016). Word-of-mouth communication also has an important influence on consumers’ behavior and attitudes in measuring customer loyalty. Communication based on consumers’ experience includes multiple potential consumers, either receptive or unreceptive, and the effects of the impact are significant. Customer satisfaction/dissatisfaction is a major determinant of word-of-mouth communication. For this reason, word-of-mouth communication serves as a result variable of customer satisfaction/compliance and is being studied. Satisfying a customer will naturally encourage their relatives, neighbors, friends, and ７.

(16) others to provide favorable information and buy. Because the relationship between them is linked to trust, these methods perform at their peak with less effort than mass communication advertising, which costs a great deal of money (金演中, 2008). Nevertheless, it should be noted that loyalty does not necessarily prove that the customers are satisfied. The customers may not have been satisfied with the service, but for other reasons they may continue to purchase the specified brand. For example, customer loyalty can be increased because switching barriers are high or there are no suitable alternatives (Andreassen and Bodil Lindestad, 1998). This table (Matrix of loyalty and customer satisfaction) shows that true loyalty means customers regularly purchase certain brands and are very satisfied with the brand. True loyalty customers are less interested in other competing brands or products. True loyalty can be a feature of how much you are involved in a brand. The customer not only has a high satisfaction level with a particular brand, but also has an emotional tie for that brand. It can be concluded that true loyalty includes behavioral loyalty (emotional) and rational loyalty. This type of model can be used with actual and potential customers (Lisafeva, 2012).. Perceptual loyalty. Behavioral loyalty. High satisfaction to brand. Low satisfaction to brand. Frequent purchases of certain brands. True loyalty. False loyalty. Purchase of competing brands. Latent loyalty. No loyalty. Table 3: Matrix of loyalty and customer satisfaction. Source: Lisafeva et al. 2012, p. 71 This loyalty is called a false one when a customer purchases products of some brands and has no commitment or satisfaction to a particular brand. This situation usually occurs because of economic reasons, such as the customer can receive seasonal discounts on some other brands or the customer may no longer be able to continue purchasing from the same brand. False loyalty can be described as the customer having no emotional commitment toward the brand. This type of customer is very sensitive to a competitive brand’s action. False loyalty customers buy certain brands, but they do not feel emotional commitment to new brands or competitors, and if competitors provide any special offer or better quality for a new brand, they can easily change to a competitor’s brand (LisafevaD.V.,, 2012). Customers can be satisfied with the brand, but they may be missing products of their preferred brands in the market and buy products from competitors. These are known as latent loyalty customers. This type of loyalty occurs when customers are often unable to purchase certain brands, but it has a high brand value. Latent loyalty customers are characterized by the customer’s commitment to the brand. These customers are very satisfied with the brand and ８.

(17) have an emotional commitment to it, but they still buy a competitive brand. The economic situation of a customer or brand that is missing from the market can be a reason for the customer’s behavior regarding latent loyalty. There is no loyalty if the customer is unsatisfied with the brand and is not ready to buy again (LisafevaD.V.,, 2012). Figure 2: Brand Loyalty Pyramid. Dedicated buy er Buyers who like br ands and think like friends Satisfied buyers who are serio us about conversion costs. Satisfied buyers who purchase habituall y and have no reason to change their bra nd Buyers who frequently change brands and are Pric e-sensitive Refer : D.A.Aaker(1991),Managing Brand Equit : Capitalizing on The Value of a Brand Name, The Free Press. 2.5.2 The relationship between brand image and customer loyalty A key reason why consumers prefer certain brands is brand image. Brand image provides high margin and low price elasticity. This can create loyalty, and loyal customers may have a favorable impression of the company due to its brand image and are less sensitive to the commodity price of the company (Smith and Aaker, 1992). Aaker (1992) demonstrated that brand image is a prior factor that affects consumers’ purchasing intent or customer loyalty (Smith and Aaker, 1992). Ringle (2000) argued that an airline brand image means having a negative or positive attitude toward the company as a whole regarding the customer’s concepts and impressions of the airline (Ringle et al., 2000). Kim, Jun-hee (1999) reported that brand loyalty was naturally formed when consumers who experienced brand image made frequent purchases or uses of the brand, or had frequent exposure to brand communication and accumulated trust and satisfaction. In addition, Kim Hyun-jung (2006) found that the satisfaction of airline brand image positively influenced repurchase intention. In a study on the effect of airline brand image on purchase decisions, Kim Hye-jin (2005) showed a significant difference in the importance of airline brand image attribute and customer satisfaction and proved that brand image affects purchase decision making.. ９.

(18) 2.5.3 The relationship between brand image and service quality Branded images can build trust in the relationship with consumers, and they can also provide greater buying opportunities (Roberts and Merrilees, 2007). A strong brand image is formed by several benefits, such as service quality, people-representing services, and supplier-buyer relations. It results in a consistent and uniform quality of service to customers. Choi (2012) found that brand image has a significant effect on customer satisfaction and adopted a research hypothesis that brand image has a positive relationship with customer satisfaction. Gronroos (1984) said that a positive image of the service provider makes the customer feel generous about low service performance, and that a negative image is very difficult to overcome, even if there is quality service. He added that the image affects customer satisfaction. Gronroos divided service quality into functional quality and technical quality. He studied the relationship between satisfaction and service quality, and said that service quality acts as a variable of customer satisfaction (Gronroos, 1990). 2.5.4 The relationship between service quality and customer loyalty Existing studies show that quality of service affects loyalty and customer satisfaction. Satisfaction acts as an intermediary variable between loyalty and service quality. However, there are claims that the quality of service has a direct impact on loyalty, as has been made by Bitner (1990). Drew (2002) also said that the quality of service is formed from satisfaction and dissatisfaction with consumers’ experience in purchasing and consuming services, and that these quality of service has a direct impact on customer loyalty (Bolton and Drew, 2002). Okojafor Ben Akpoyomare et al. (2016) said the relationship between service quality and customer loyalty is one of the most recurring issues in the service marketing literature. The arguments of Falk, Hammerschmidt, and Scheffers (2010) showed that the impact of the quality of service on service loyalty comes in two forms: direct and indirect effects on customer satisfaction or mitigation effects through satisfaction. Boshoff and Gray (2004) demonstrated that the quality of service precedes customer loyalty. These studies show that the more positive the satisfaction of the quality of service, the higher the customer loyalty (Bitner et al., 1990). Kim Jin-ah (2008), who studied the impact of air quality factors on users’ repurchase and word-of-mouth intention, divided the airline service quality factors into airport services, flight services, and in-flight services. Kim found that among them, flight services and inflight services have significant impact on resale and word-of-mouth intention, and most importantly, in-flight services have the greatest impact on resale and word-of-mouth intention. 2.6 Airline Comparison In this study, we compared China Airlines with EVA Airways. Since the two airlines are Taiwan’s main international carriers, we thought they were the suitable airlines to study the impact of perceived safety on customer loyalty. Large companies also basically have a fixed image for the public. China Airlines and EVA Airways also have a representative image within Taiwan. When you observe Taiwanese news and opinions on the Internet, China Airlines’ image is basically of a large airline with relatively low prices. However, there is also a perception that China Airlines has frequent air １０.

(19) accidents, and many people think the airline is unsafe. EVA Airways has a relatively short history. Most people believe this airline is safe because it is a large airline and has fewer records of air accidents. However, there is a perception that it is relatively expensive in terms of price. This study determined that the two airlines were suitable for comparing and analyzing perceived safety, price, quality of service, image, and customer loyalty. With these perceptions, we will study whether these are prejudices or true. We will also study and compare how these perceptions of the two airlines relate to customer loyalty. 2.6.1 China Airlines Since its inception, China Airlines has been adhering to the business philosophy of “satisfied customers, happy employees, creating the greatest value for shareholders and society” and is committed to becoming the most trusted international airline. In 2014, China Airlines launched the “Next Generation New Generation Project,” which adheres to the core values of “Literature Creation, Technology, Environmental Protection, Manufactured, Trust” and simultaneously upgrades and optimizes software and hardware services products. The popularity of the group and mobile devices enables brand marketing and product sales to be closer to customer needs and increases the differentiation between China Airlines and its competitors. The short-term plan is to establish Taiwan’s core development base, establish a transportation center for East Asia transshipment, and create a regional route network as the core of development. Medium- and long-term plans will strengthen the competitiveness of long-haul routes and make the company’s route network more compact and complete (2014 Annual Report) (Wei-Hao Lu,2016). 2.6.2 EVA Airways Evergreen Shipping became famous internationally and developed into air transportation to obtain greater profits, establishing EVA Airways in 1989. “Challenges, Innovation, Team” is the corporate culture of EVA Airways. The company also serves customers with the business philosophy of “safe flight, safe and friendly service, effective and innovative operation,” launching many different cabins and adding innovative services. EVA Airways also aims to comply with the commitment to “Perceived safety” for passengers (EVA Aviation official website). The service plan has contributed to EVA Airways’ selection as a five-star airline by SKYTRAX RESEARCH consultants, becoming the eighth airline in the world and the first in Taiwan to receive the highest honor. In 2010, 2012, and 2016, EVA Airways was recognized by the famous American travel magazine, Travel & Leisure, as one of the “Top Ten International Airlines.” From 2014 to 2016, the Australian aviation professional website, ArlineRatings.com, has selected EVA Airways as one of the “Top 10 Best Airline Companies in the World” (EVA Aviation official website). The value that EVA Airways wants to achieve is safe and fast flight, friendly service, and effective innovation. In order to achieve this vision, EVA Airways cooperates with the subsidiaries of Evergreen Group—passenger service, aircraft maintenance business, aviation parts manufacturing business, air sales, kitchen business, ground handling, and training business—to achieve the value that EVA Airways seeks. EVA Airways’ business scope includes passenger transportation and cargo transportation (EVA Aviation official website). １１.

(20) 2.7 Comparison of China Airlines and EVA Airways Units Table 4: Comparison of China Airlines and EVA Airways China Airlines. EVA Airways. Year of establishment. 1959. 1989. Scale. 88 units : 70 passenger jet carriers / 18 freighters (as of January 31, 2019). 61 units. Navigable city. 29 countries / regions 161 destinations (As of January 31, 2019) 12,367 (As of January 31, 2019). Number of workers. 65 countries (As of April 30, 2016) 8,793 (As of April 30, 2016). 2.7.1 Aviation accidents We predicted that the perceived safety of the aircraft would affect customer loyalty. Thus, we examined the accident rates of China Airlines and EVA Airways to collect information on the perceived safety of airlines required in this study. The list of airline accidents on the Wikipedia site shows that the air accident rate of China Airline has been overwhelmingly high for the past 30 years. However, from 2013 to 2019, China Airlines has had only one accident, and it is enhancing perceived safety. EVA Airways has had only one accident in the last 30 years. Table 5:Aviation accidents 1980s. Contents. February 27, 198 0 February 19, 198 5 February 16, 198 6 May 3, 1986. China Airlines Flight 811 crash China Airlines Flight 006 China Airlines Flight 2265 crash. October 26, 1989. China Airlines Flight 334 hijacking incident (Wang Xijue hijacking in cident) China Airlines Flight 204 crash. 1990s. Contents. December 29, 19 91. China Airlines Flight 358 crash １２.

(21) November 4, 199 3 April 26, 1994. China Airlines Flight 605. February 16, 199 8 August 22, 1999. China Airlines Flight 676 crash (big garden air crash). 2000s. Contents. May 25, 2002. Air China Flight 611 flight crash (Wuhu air crash). March 28, 2005. EVA Air 2196 flight accident. August 20, 2007. China Airlines Flight 120 accident. 2010s. Contents. October 4, 2013. China Airlines Flight 052. China Airlines Flight 140 crash (China Airlines Nagoya Air crash). China Airlines Flight 642 crash. 2.7.2 Price comparison of China Airlines and EVA Airways Before comparing the prices of China Airlines and EVA Airways, the researcher predicted that EVA’s ticket prices would be much higher. After comparing the two airlines, the prices of tickets to countries that are relatively close to Taiwan Taoyuan Airport were similar. However, the prices of an airline ticket to farther destinations, including Los Angeles, Sydney, and San Francisco, were found to be relatively high for EVA. Also, the price of a plane ticket to Bangkok, Thailand, is much higher from China Airlines than from EVA. Most of the prices were not much different than expected.. １３.

(22) Table 6: Price Comparison of China Airlines and EVA Airways EVA Airways China Airlines As of May 1, 2019 (Round trip: As of May 1, 2019 ~ May 15, 2019) Round trip. As of July 1, 2019 (Round trip: As of July 1, 2019 ~ July 15, 2019) Round trip. Avera ge Cost. 7,847. 10,832. 11,061. 14,861. 6,158. 7,553. 39,582. 44,645. 24,022. 41,540. 12,188. 12,207. 10,523. 9,472. 34,382. 42,365. 39,144. 43,498. 9,339. SEOUL(INCHE ON) - ICN 5 12,961 TOKYO (NARITA) - NRT 6,855. HONG KONG HKG 5 42,113 LOS ANGELES - LAX .5 32,781 SAN FRANCISCO SFO 12,197 SINGAPORE SIN .5 9,997. BANGKOK BKK 5 38,373 SYDNEY - SYD .5 41,321 WARSAW WAW. Destination City (Departure City: TAIPEI TAOYUAN TPE ). As of May 1, 2019 (Round trip: As of May 1, 2019 ~ May 15, 2019) Round trip. As of July Avera 1, 2019 ge (Round Cost trip: As of July 1, 2019 ~ July 15, 2019) Round trip. 10,377. 11,287. 11,667. 13,169. 6,764. 6,764. 27,243. 38,770. 24,691. 40,091. 11,366. 12,246. 11,806. 9,247. 13,647. 11,447. 43,378. 31,398. 36,801. 48,625. 37,38 8 42,71 3. 10,83 2 12,41 8 6,764 33,00 6.5 32,39 1. The researcher compares the homepage and creates the table. (Unit: TWD) (Seat: EVA- Economy Basic / China – ECO Saver) (2019.4.13). 2.7.3 National Airline Global Operations Overview According to a monthly survey by Taiwan Civil Aviation in December 2018, seven national airlines carried a total of 3,314,251 passengers in the global passenger transport segment, of which 2.72 million were international and cross-strait passengers, accounting for 87.6%, and 940,940 were domestic passengers, accounting for 12.4%. The global freight portion carries 193,241 metric tons, of which 194,356 metric tons of international and crossstrait routes account for 98.5%, and 2,885 metric tons of domestic routes account for only 1.5%.. １４.

(23) Figure 3 : Ministry of Transportation and Communications, 12 2018. National Airline International and Cross-Strait Airline Passengers 15%. 46%. 39%. China Airline. EVA Airline. Others. Similarly, in December 2018, of the number of passengers flying international and crossstrait routes by the six national airlines, China Airlines carried 1,237,800 (46.3%) and EVA Air carried 1,368,387 (38.8%), with four airlines, including Yu Lirong, Huaxin, Far East, and Taiwan Tiger Airways, totaling 410,124 (14.9%) (Ministry of Transportation and Communications, 12 2018). From 2009 to 2018, we observed a growing number of Taiwanese passengers leaving the country to destinations including Japan, South Korea, Malaysia, China, and Hong Kong.. １５.

(24) Figure 4: Tourism Statistics Database of the Taiwan Tourism Bureau 2019. １６.

(25) Chapter 3 Proposed Theory and Hypotheses 3.1 Research Framework This study discusses theories, models, and variables related between airline image and loyalty through literature review. The study model refers to the research results of the preceding study and the theoretical background of the literature review, and identifies how perceived safety, service quality, and prices, which constitute the customer’s airline choice, have an impact on the customer’s loyalty. It also examines the presence of airline images between the airline’s image and its loyalty. The main purpose of the study is to examine whether positive images have a positive impact on loyalty. Based on the results reviewed in the theoretical considerations, the research model was constructed as follows: For Model 1, the three variables were perceived safety, perceived price, and service quality, and the hypothesis was whether perceived safety and service quality affect image and loyalty. It also constructed a hypothesis on whether perceived price is applied as an interference factor in the process of perceived safety to image and of service quality to image. Finally, there was a hypothesis about whether images affect customer loyalty.. Model 1. Customer Loyalty. H5 H1. H2. Image H3. H4 H6. Perceived Safety. H7. Price (perception). １７. Service Quality.

(26) For Model 2, there was a slight difference from Model 1. A new hypothesis was constructed to play a role in price between perceived safety and service quality. Whereas in Model 1, the role of perceived price was an interference variable, in Model 2, the role of perceived price was set as an intermediate variable. This was to study whether the perceived safety and service quality affect the image through the perceived price. It also constructed a hypothesis about whether the image affects customer loyalty.. Model 2 Customer Loyalty. H5. Image H3. Perceived Safety. H4. H8. Price (perception). １８. H9. Service Quality.

(27) 3.1.1 Definitions of variables (1) Image Airline image was defined as familiar images, practical images, positive reputation in society, and airline trust. (2) Loyalty Customer loyalty was defined as recommending airlines to other customers, doctors choosing to reuse airlines in the future, and habitually using airlines. (3) Quality of service Quality of service was defined as convenience of use of airlines, comfort of the in-flight environment, and comfort in the feeling of use. (4) Ticket prices Ticket prices were defined as the rationality of current prices, the ideas of membership and discount provision, and the opinions on price improvement for service improvement. (5) Perceived safety In defining perceived safety, we considered the perceived safety awareness of airlines, the perceived safety feeling of aircraft boarding, and the awareness of how airlines feel about perceived safety from the customer’s perspective. In particular, it predicts that perceived safety is deeply connected to customer loyalty. 3.2 Hypotheses In this study, we divided Taiwan’s general public airline selection factors into perceived safety, service quality, and ticket prices. The purpose of this study is to investigate the influence of image quality on the perception of perceived safety, service quality, and ticket prices for airlines, and how the perception of the three factors affects the loyalty of airline customers. Airlines must achieve their target performance by securing customer loyalty. Therefore, this study attempts to determine whether the positive image of an airline represents customers’ high loyalty. It also examines whether airline selection affects loyalty directly without affecting the airline’s image and studies the existence of an airline image. We also examine whether the price that we set as the intermediate variable in these two models works as an interference variable or merely as a bridge. The following hypotheses are based on these research objectives:       . H1: Perceived safety will directly affect customer loyalty. H2: Service quality will directly affect customer loyalty. H3: Perceived safety will affect image, and that image will affect customer loyalty. H4: Service quality will affect image, and that image will affect customer loyalty. H5: The positive image of airlines will have a positive impact on customer loyalty. H6: Price will act as an interference variable in H3. H7: Price will act as an interference variable in H4. １９.

(28)  . H8: Price will exist as a bridge between perceived safety and image. H9: Price will exist as a bridge between service quality and image.. 3.3 Measurement variable A survey method using standardized questionnaires was used as a research method to verify the hypotheses presented in this study. The questionnaire was modified and supplemented to the subject and purpose of this study based on questions used in previous studies, such as Aaker (1991), Keller (1993), Oliver (1999), Cunningham (1994), Brown (1998), and others. Four questions related to brand image, four to perceived safety, three to perception of ticket price, four to service quality, and four to customer loyalty, totaling 19 questions comprised of the five-point Likert Scale. Six more questions were added to identify the demographic characteristics. The table below summarizes the structure of the questionnaire used in this study. Table 7: Configuration of Questionnaire Category. Measurement items and questions. total number of questions. Reference. Preliminary Questions. Main airline, reason for preference, Membership status, Travel type Expectation, Flight time Familiar image Practical image Trustworthy image Good for society image. 6. Choi,kyung Likert scale, ok (2017) Nominal scale Shin,Ha yeon (2016) Aaker (1991) Likert scale Keller (1993). Airline Brand Image Perceived Safety. Ticket Price. Service Quality. 4. Perceived Safety record 4 Insecurity Care about Perceived Safety Check Perceived Safety of the passengers Reasonable 3. Choi,kyung ok (2017). In-flight environment Convenience Comfortable feeling Understands the needs of the passengers. Shin,Ha yeon (2016). 4. ２０. Lee,Soyoung (2017). Scale.

(29) Loyalty. First consideration, habitual consideration, favorable word-of-mouth, recommendation. 4. Oliver (1999) Cunningham (1994) Brown (1998). Table 8: Preliminary Questions Category Preliminary Questions. Measurement variable Preliminary Questions. Questionnaire 1. What is your main airline? ( EVA / China / Others) 2. Why do you prefer this airline? (Low Price / Perceived Safety / service / others) - multipl e choice 3. Are you on a free trip or a group trip? ( free trip / group trip) 4. If you are a member of an airline’s membership, what i s your membership level? (High / Medium / Low) 高/中/低 EVA Airways -> Low: Green Card Medium: Silver Card, Gold Card High: Diamond Card China Airlines -> Low: Dynasty Medium: Gold, Emerald High: Paragon 5. Where are you usually going in your foreign travels? (Asia/America/Europe/New Zealand/Others) 6. What is the main purpose of your foreign travel? (Tourism/Business/Visiting friends or relatives/Other). ２１.

(30) Table 9: Measurement of Airline Brand Image Category Measurement variable. Questionnaire. Airline Brand Image. 1. You have a good image for this airline.. Airline Brand Image. 2. This airline has a practical image. (Practical: The practical aspects of something involve real situations and events rather than just ideas and theories.). 3. This airline is reliable and trustworthy.. 4. This airline is a good company for society.. Table 10: Measurement perception of Perceived Safety Category. Measurement Questionnaire variable. Perceived Perceived Safety Safety. 1. Does this airline have a perceived Safety record in your impression? 2. Do you feel secure about your perceived Safety when using this airline? 3. Do you think that this airline cares about perceived Safety?. 4. Do you think the cabin crew at this airline thoroughly checks the perceived Safety of the passengers (checking the seat belt status and positioning the seat back) to prepare for an emergency exit before takeoff and landing?. ２２.

(31) Table 11: Measurement Perception of Ticket Price Category. Measurement Questionnaire variable. Perception Perception of of Ticket Ticket Price Price. 1. Do you think the current Price of this airline’s ticket is reasonable? 2. Do you think that this airline’s Price change is reasonable if caused by external factors such as oil Prices and foreign exchange rates? 3. Do you think that this airline’s Price change is reasonable if it is caused by management factors such as labor costs and expenses within the airline?. Table 12: Measurement perception of Service Quality Category Measurement Questionnaire variable Service Quality. Service Quality. 1. This airline’s in-flight environment is pleasant.. 2. This airline gives a feeling of convenience.. 3. The airline gives a comfortable feeling.. 4. The cabin crew of this airline understands the needs of the passengers and tries to actively address them.. Table 13: Measurement of Customer Loyalty Category Measurement Questionnaire variable Loyalty. Loyalty. 1. I consider this airline first when using airlines. 2. I will continue to use this airline when using airlines.. ２３.

(32) 3. I habitually consider this airline when choosing an airline. 4. I will recommend this airline to friends or colleagues.. The survey was conducted from May 30 to June 2, 2019. We examined both weekdays and weekends, taking into account the differences in the floating population of the weekday and the weekend. A total of 300 copies were prepared and distributed at Taoyuan International Airport Terminals 1 and 2. The targets of the survey were Taiwanese nationals who were leaving the country. < Survey design> Survey period Size of sample Target Subject Location. May 30, 2019 - June 2, 2019 300 Travelers leaving from Taiwan random Taoyuan international airport. ２４.

(33) 3.4 Research Methodology Introduction. Research Background and Purpose. Theoretical background. Research model and Empirical Study. Research model and. An empirical study. hypothesis Analysis result and hypothesis verification. Conclusion. Figure 5 : Research Methodology 3.4.1 Research method The data collection for this study was for people of Taiwanese nationality leaving the sampling area at Taoyuan Airport Terminals 1 and 2. The researchers used the method of selection to explain the purpose of the study. We distributed questionnaires using selfadministered survey methods that respondents entered themselves. We distributed 300 copies of the survey from May 31, 2019, to June 2, 2019. A total of 300 copies of the questionnaire were distributed, and 267 copies were analyzed, excluding 33 copies with insincere or missing responses. For the analysis of the study, the SPS and SEM statistics programs were used to analyze the reliability of each factor and to verify the validity and reliability of the questions related to perceived safety, price, service quality, image and loyalty, and to analyze the reliability of these five variables by using the method of structure and correlation analysis for hypothesis testing. Structural equation modeling (SEM) is an advanced statistical analysis that enables testing of various types of mediation modeling. The structural equation model is expressed as ２５.

(34) a combination of a measurement model and a structural model. A measurement model represents the nature of a positive factor analysis and is a model for assessing whether each potential variable is expressed significantly by observations. A structural model is a model for explaining causality established between potential variables. Thus, the structural equation model has the common characteristics of identification factor analysis and path analysis. Extensive literature research is required as an analysis method to clearly explain causality established on the basis of prior knowledge or research performance, not as a method for making causal relationship between variables (SuHyunAn, 2016). We will analyze the impact of perceived safety and image on customer loyalty through SEM. The survey includes specific survey details. First, there are questions about primary airline, reason of use, membership status, reason of travel, and travel mainly. Second, there are questions about image of the airline and related questions, such as recognition of airline images, practicality, reliability, and social contribution. Third, there are questions about airline perceived safety, such as the awareness of perceived safety records to airlines, the feeling of perceived safety, the awareness of the airline’s attitude toward perceived safety, and the perceived safety education of its employees toward customers. Fourth, there are questions regarding the price of airline tickets related to rationality, such as the current price and the change in price. Fifth, there are questions about the airline service, such as in-flight environment, convenience, good mood, and attitude toward customer needs. Sixth, there are questions about customer loyalty, such as frequency of purchase, opinions on repurchase, habitability, and recommendation to others. In this study, we applied the five-point Likert scale to the model using the data of Taiwanese nationals departing from Taiwan Taoyuan Airport for the reliability of the study.. Chapter 4 Research Results 4.1 Statistical Characteristics of Samples The survey was conducted from May 30 to June 5, 2019, and the data collection for this study was conducted for Taiwanese nationals departing from Taoyuan Airport Terminals 1 and 2. A total of 300 copies of the questionnaire were distributed, and 267 copies of the questionnaire, excluding 33 copies with missing or insincere responses, were answered as follows. The statistics for main airline use showed that EVA Airways was the highest at 41.9%, China Airlines was the second-highest at 36.7%, other Asian-related airlines were thirdhighest at 12%, and low-cost carriers were fourth-highest at 9%.. ２６.

(35) Table 14: Main carriers Main carriers. Valid. Frequency 98 112. 1-China Airlines 2-Eva airways. Percent Valid Percent 36.7 36.7 41.9 41.9. Cumulative Percent 36.7 78.7. 3-Asia. 33. 12.4. 12.4. 88.0. 3-Low-cost Carrier. 24. 9.0. 9.0. 97.0. 267. 100.0. 100.0. Total. As for the membership, 77.5% of the passengers were found to have no membership. In this study, EVA Airways, which is used by the most passengers, accounted for 10.9% of memberships, whereas China Airlines accounted for 9%. Table 15: Type of Membership Type of Membership. Valid. 1-No membership 2-China Airline's Membership 2-Eva airways' Membership 3-Other airlines' Membership Total. Frequency 207 24. Percent Valid Percent 77.5 77.5 9.0 9.0. Cumulative Percent 77.5 86.5. 29. 10.9. 10.9. 97.4. 7. 2.6. 2.6. 100.0. 267. 100.0. 100.0. Type of trip showed a statistically high rate of individual trips with 65.5%. Table 16: Type of trip Type of trip. Valid. Missing Total. Frequency 175 91. Percent 65.5 34.1. Valid Percent 65.8 34.2. Total. 266. 99.6. 100.0. System. 1 267. .4 100.0. Individual Group. ２７. Cumulative Percent 65.8 100.0.

(36) The reason of departure originally included four items, but since the statistical rate of tourism was overwhelmingly high, the remaining items were defined as non-tourism. Tourism accounted for the reason of departure for 88.4% of the passengers. Table 17: The Reason of Departure The Reason of Departure. Valid. 1-Tourism 2-Non Tourism Total. Frequency 236 31 267. Percent 88.4 11.6 100.0. Valid Percent 88.4 11.6 100.0. Cumulative Percent 88.4 100.0. Multiple choice was the highest in the reason to prefer this airline at 39.7%. Quality of service followed with 32.5% and perceived Safety with 27.8%. On overseas destination frequency, Asia was dominant at 78%, with all other destinations below 10%. Table 18: The Reason to Prefer This Airline Frequencies The Reason to Prefer This Airline Frequencies Responses N Percent Percent of Cases The reason of prefer this 1-Low Price 143 39.7% 58.6% a airline 2-service 117 32.5% 48.0% 3-Perceived Safety Total a. Dichotomy group tabulated at value 1.. 100. 27.8%. 41.0%. 360. 100.0%. 147.5%. Table 19: Overseas Destination Frequencies An Overseas destination Frequencies Responses N Percent Percent of Cases a An Overseas destination 1-Asia 245 78.0% 92.1% 2-America 29 9.2% 10.9% 3-Europe 23 7.3% 8.6% 4-Others 17 5.4% 6.4% Total 314 100.0% 118.0% a. Dichotomy group tabulated at value 1. ２８.

(37) 4.2 Reliability Verification, Correlation, and Factor Analysis Results In this study, the factors influencing the corporate image and customer loyalty were derived from the existing literature, and the survey was conducted on five variables. Factor analysis was used to identify the five factors. We also analyzed the correlation of the five measured variables. The hypothesis that the positive image of the city airline will have a positive effect on customer loyalty to the airline is constructed and confirmed through the structural equation model. In this study, reliability was measured using Cronbach’s α value to test the internal consistency between the four variables affecting airline customer loyalty: perceived Safety, service quality, Price, image, and loyalty. When Cronbach’s α value is close to 1, the internal consistency is high. If it is 0.6 or more, the reliability can be considered secured. As a result of the reliability analysis of the questionnaire items of this study, Cronbach’s α coefficient is more than 0.6, which shows that the reliability of the measured variables is high. Table 20: Reliability Statistics Reliability Statistics Cronbach's Alpha Image. .841. Perceived Safety. .848. Perceived Price. .895. Service Quality. .839. Customer Loyalty. .856. 4.3 Final Model Estimation 4.3.1 Structural Equation Model In this SEM model, each variable is summarized by a simple name. The explanation is as follows. Perceived Safety1 : Does this airline have a good Perceived Safety record in your impression? Perceived Safety2: Do you feel secure about your Perceived Safety when using this airline? Perceived Safety3:Do you think that this airline cares about Perceived Safety? Perceived Safety4:Do you think the cabin crew at this airline thoroughly check the Perceived Safety of the passengers (checking the seat belt status and positioning the seat back) to prepare for an emergency exit before takeoff and landing? The part of Perceived Price is shortened to Price. Price1: Do you think the current Price of this airline's ticket is reasonable? Price2:Do you think that this airline’s Price change is reasonable if caused by external factors such as oil Prices and foreign exchange rates? Price3:Do you think that this airline's Price change is reasonable if it is caused by management factors such as labor costs and expenses within the airline? The part of Service quality is shortened to Service. Service1: This airline's in-flight environment is pleasantService2: This airline gives a feeling of convenience. Service3: The ２９.

(38) service of this airline gives you a comfortable feeling. Service4: The cabin crew of this airline understands the needs of the passengers and tries to actively address them. The part about Image is as follows. Image1: You have a good image for this airline Image2: This airline has a practical image Image3: This airline is a reliable and trustworthy. The part about Customer loyalty is as follows. Loyalty1: I mostly buy this airline tickets when I travel overseas. Loyalty2: I will continue to use this airline when using airlines. Loyalty3: I habitually consider this airline when choosing an airline. Loyalty4: I will recommend this airline to friends or colleagues. Figure 6: Final Model for Structural Equation. The adequacy of the structured model formed in this study is evaluated by the fitted index, which is an index that evaluates the model’s suitability compared to the independent model, indicating how well the theoretical model built in the study describes the data compared to the independent model. Fitted indices include the NFI (nominal fit index), CFI (comparative fit index), GFI (Goodness of Fit Index), AGFI (Adjusted Goodness of Fit Index), and RMSEA ３０.

(39) (receive error index). When selecting fitted indices, it is desirable to select indices that are not sensitive to sample size and consider the brevity of the model. Given these criteria, the conformity of the model can be evaluated around GFI, AGFI, RMSEA, and others (Yeum S. K.Lee, 2015). The results of the model convergence analysis were CMIN/DF (1.907), CFI (0.966), GFI (0.911), AGFI (0.878), NFI (0.932), and RMSEA (0.028), all of which are suitable for the Re commended Values. Table 21: Model Fit Model Fit index CMIN/DF CFI GFI AGFI NFI RMSEA. Model Fit Summery 1.907 0.966 0.911 0.878 0.932 0.028. ３１. Recommended Values ≤3 ≥ .90 ≥ .90 ≥ .80 ≥ .90 ≤ .05.

(40) 4.3.2 Regression weights In the final model, the measurement variable for the effect of perceived Safety on loyalty was relatively high at 0.020 (p <.05) when the perceived Price was an intermediate variable, as in the previous study Model 2. The measurement variables for the effect of service quality on loyalty were the highest with p <.001. However, it was found that the effect of the image, which is the core of the paper, on the loyalty was not influenced by 0.163.. Table 22: Estimation for Between Parameter and Latent Variable Regression Weights Estimate S.E. C.R.. P. Customer Loyalty. <---. Service Quality. .495. .079. 6.274. ***. Customer Loyalty. <---. Perceived Safety. .172. .074. 2.335. .020. Customer Loyalty. <---. Image. .150. .108. 1.395. .163. To determine the reason for this outcome, we measured how the five variables were related when all were correlated. All the measurement results showed a high correlation coefficient. However, in Model 2, the correlation coefficient between Image and Customer Loyalty was not suitable. The reason is that Service Quality is the most important because it is higher and also because Perceived Safety is high. In general, there is a strong relationship between Image and Customer Loyalty. However, this study’s method of structure produced the opposite result. Thus, we developed one more model. What is the relationship between Image and Customer Loyalty when the most affected variables, Perceived Safety and Service Quality, do not affect Customer Loyalty? At this time, the airline image will not significantly affect the passenger’s loyalty. Besides, the price will not interfere with the impacts of the previous two factors on the image of the airline. In Model 2, perceived safety and service quality can significantly affect passenger loyalty through the image of the airline. While the previous two factors affect the image of the airline, the price will not be an intermediary factor. In general, although the airline image will affect passenger loyalty, it is not as significant as the direct effect of perceived safety and service quality on loyalty. The price factor cannot possess the interference and intermediary effects in the relevant influences of the airline image.. ３２.

(41) Figure 7: Model without Perceived Safety and Service Impact on Customer Loyalty. Table 23: Regulation after Excluding the Impact of Perceived Safety and Service on Customer Loyalty. Customer Loyalty. <---. Image. Estimate. S.E.. C.R.. P. .714. .081. 8.822. ***. Label. As another validation, if the measurement variables for image loyalty are intensive, then the standardized factor load should be at least 0.5. In this study, results of the factor analysis of the measurement model showed that the measurement variables of Image 4 were less than 0.5, and these measurement variables were excluded. ３３.