The impact of customer experience on customer loyalty: Evidence from low-cost airlines in Ho Chi Minh City

Abstract

The objective of this study is to determine the factors of customer experience that influence customer loyalty. Besides, the mediating role of customer satisfaction will also be considered. Data was collected from a survey of 696 passengers who live in Ho Chi Minh City and used flight service with low-cost airlines in Vietnam. The research results from the Partial Least Squares Structural Equation Modeling (PLS-SEM) showed that six factors of customer experience have positively impacted customer loyalty in descending order as follows: Flight attendant quality, Check-in/luggage service, Online Booking Service, Convenient Flight Schedule, Lounge, and Service Reliability. In addition, these relationships have been mediated totally by customer satisfaction. The study also suggested some implications for building a better service experience at low-cost airlines in Ho Chi Minh City to increase customer loyalty.