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Abstract

Brand equity has a profound impact on the pricing and sales of consumer products and services. Inspired by existing literature on customer-based brand equity in various domains, this study examines brand awareness (a dimension of brand equity), purchase intention and price premium of international airlines operating on a specific aviation market, Australia - the United Kingdom. Through surveying a sample of 259 participants in the metropolitan Melbourne area, the study captures a snapshot of brand recognition and brand preference of international airlines among local travelers. Statistically significant association is found between brand awareness and purchase intention, and between brand awareness and price premium for airlines that meet the assumptions of Chi-square test. Such findings could be valuable to airlines to measure their brand image as well as brand strength in the Australia market. They are also convincing evidences for airlines to justify the perennial expenditure on brand promotions.

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