The Moderating Role of Price Sensitivity and Social Norm in Understanding Customer Loyalty Among Passengers of Low-Cost Carrier in Malaysia

Zulkiffly Abd.Aziz, Norlida Abdul Hamid, Rosmimah Mohd Roslin
Arshad Ayub Graduate Business School, Universiti Teknologi MARA


Abstract

Adapting the concept of customer loyalty model as a two-dimensional construct incorporating both attitudinal (relative attitude) and behavioural (repeat patronage) perspectives, this study investigates whether cognitive loyalty, affective loyalty, and conative loyalty have significant relationships on customer loyalty. At the same time, the study will also examine whether the positive relationships between cognitive loyalty, affective loyalty, conative loyalty and customer loyalty will be stronger when social norm and price sensitivity are lower. This is consistent with the view by quite a few prominent researchers that customer loyalty may also be influenced by social norms and price sensitivity and these variables are viewed as moderators of loyalty. Data were obtained from 420 respondents at Kuala Lumpur International Airport2 (klia2). A convenience sampling was carried out through a survey using the intercept method. The data were analyzed by SPSS statistical program on descriptive analysis before developing a hierarchical component model through the repeated indicators approach, to assess the measurement and structure of the framework by SmartPLS version 3.0. The program is also used to test all the relationships between variables in the model. The result of this study indicates that cognitive loyalty, affective loyalty and conative loyalty have significant relationships on customer loyalty. It is also established that the positive relationships between cognitive loyalty, affective loyalty, conative loyalty and customer loyalty are indeed stronger when social norm and price sensitivity are lower among low-cost carrier passengers at klia2. Since the data were obtained solely from passengers at klia2, the results cannot be generalised as passengers in other states in Malaysia may have different perceptions on customer loyalty towards the low-cost carrier. This study provides further empirical support of the value of truly loyal customers which is defined in terms of both behavioural (repeat patronage) and attitudinal (relative attitude) perspectives in the low-cost carrier industry in Malaysia.

Keywords: Customer loyalty, Cognitive loyalty, Affective loyalty, Conative loyalty, Price sensitivity, Social norm