First-class airline travellers' perception of luxury goods and its effect on loyalty formation

Abstract

This study examines how first-class airline travellers' perception of luxury goods influences the formation of their loyalty to first-class flights. Based on the proposed hypotheses, a conceptual model was developed and tested using empirical data collected from a sample of 202 first-class airline travellers in the USA. The results indicate that the five types of perceptions of luxury goods (e.g. quality, hedonism, conspicuousness, exclusivity, and the extended self) were generally associated with consumer attitudes towards first-class flights and thus led to well-being perceptions and perceived price fairness. In addition, well-being perceptions enhanced perceived price fairness, customer identification, and loyalty. Finally, alternative attractiveness moderated the relationship between consumer attitudes towards first-class flights and perceived price fairness. The results have important theoretical and managerial implications.