This study sought to research the effects of marketing communication on brand knowledge and consumer based brand assets in order to build brand assets by securing the competitiveness of the Korean low-cost airliners in light of the fact that their pro...
This study sought to research the effects of marketing communication on brand knowledge and consumer based brand assets in order to build brand assets by securing the competitiveness of the Korean low-cost airliners in light of the fact that their profits are declining due to the recent intensification of competition in the low-cost airline market, and to present their importance. In order to accomplish this objective, we have conducted an online empirical survey for a period of five days from October 1, 2014 until October 5, 2014 on those Korean passengers who have flown on Korean low-cost airliner. The significance of the survey is three-fold: First, we sought to examine the differences in the effect of marketing communication by distinguishing offline communication (advertising activities, promotional activities, word of mouth)and online communication (for members and non-members). Second, in terms of the effect airliner’s marketing communication has on brand knowledge, we sought to distinguish and examine components into brand image with brand knowledge as a dependent variable and sought to understand how it affects consumer based brand assets as multiple parameters. Third, after an examination of prior studies, empirical study was conducted through SPSS ver 19.0 which is a statistics program by using such components as the perceived quality, perceived value, intended use, etc. for consumer based brand asset, which is a dependent variable. The results that have verified the research hypotheses show that 25 of a total of 52 theories were adopted. Also, as a result of verification of hypothesis 1, which was“airliner marketing communication (offline) will have a meaningful effect on brand knowledge”4 of 8 detailed hypotheses were shown to have positive effect. Hypothesis 2, which was “airliner marketing communication (online) will have a positive effect on brand knowledge” was rejected and the verification of hypothesis 3, which was “there is meaningful difference between the effect brand knowledge, (brand image, brand recognition) has on consumer-based brand asset" showed that 9 of 10 detailed hypothesis had positive (+) effect. Also, the verification of hypothesis 4, which is “airliner marketing communication (offline) will have positive effect on brand asset” showed that 10 of 20 detailed hypotheses had positive effect. Verification of hypothesis 5, which was “airliner marketing communication (online) will have positive effect on brand asset” showed that 2 of 20 detailed hypothesis had positive effect. Therefore, it was shown that brand knowledge plays partially complete mediation role or partial mediation role in the effect between marketing communication and consumer-based brand asset. Therefore, it was shown that the Korean low-cost airliners can enhance in-flight service quality satisfaction through brand recognition management and it would help to efficiently use media that has wide coverage and high reachability such as ATL (TV, radio, newspapers). Second, the strategy of raising brand recognition by providing remunerative benefits, quality benefits and convenience by conducting such activities as airline discount coupons, mileage/points usage, gifts and rewards is essential. Third, although the promotional activity of marketing communication which is not mediated by brand knowledge does not effect brand knowledge, it could be presented as a good communication method for comprising brand asset of in-flight service quality. Fourth, in case of online communication for non-members, it would be effective to expose airport/transport service and in-flight service related advertisements and event materials to online advertisements and the airliner’s online homepage (PC/Mobile), pursuant to the results of this study which showed that there was direct effect without the medium role of brand knowledge in airport/transport quality satisfaction and in-flight service quality satisfaction. Lastly, this study proposes that in terms of brand building activity which seeks to impart friendly perception to customers as to the airliner brand, using offline marketing communication is relatively more effective than online communication.