مقاله سال ۲۰۱۶

The emergence of low cost airlines and their low price assurance schemes is a major threat to traditional full service airlines that are driven by superior services. Low cost airlines impact civil aviation market (Forgas et al., 2010) by changing the pricing pattern followed in the industry. Whilst traditional full service airlines believe professionalism and superior service quality as a predictor of customer satisfaction and customer loyalty (Forgas et al., 2010), low cost airlines thrive based on the belief that consumers purchasing behaviour is driven by value for money rather than services. Positioning themselves as a price competent service provider, low cost airlines attract consumers successfully. However, price competence and value for money alone may not be a significant predictor of consumers’ attitude towards airline choice. If price is the only factor the consumers are concern, there should be overwhelming demand for low cost airlines and failure of full service airlines. Interestingly, the low cost and traditional full service airline consumers perceive service quality and value for money in different perspectives (Periera et al., 2011). There is an ambiguity and little evidences in literature that explore how the airline type interact with value for money and service quality and influences consumer satisfaction and behavioural intention.

Low-cost airlines initially targeted leisure travellers and then captured a significant proportion of business travellers (Mason, 2001). The global financial crisis revamped the importance of cost cutting in doing businesses and encouraged the business travellers to choose low cost airlines. In particular, business travellers from small and medium sized enterprises (SMEs) attracted by low-cost airlines compared to the travellers working for large sized enterprises and corporates. As SMEs are price sensitive, the value for money schemes introduced by low cost airlines delivered expected value and benefits.

Though low cost airlines succeeded in attracting consumers on the grounds of value for money, they found difficulties in retaining and building loyal customer base. Whilst traditional full service airlines offered value through superior services, low cost airlines solely dependent on lower price assurance schemes. It is not clear, what motivate the consumers to choose low cost airlines. It is also interesting to investigate the role of service quality and value for money in consumers’ decision of choosing the low cost and traditional full service airlines. Thus, the study investigates the influence of service quality and value for money on customer satisfaction and behavioural intention. The study also investigates the interaction effect of airline type (low cost and traditional full service airline), service quality and value for money on consumer satisfaction and behavioural intention using means-end theory and price sensitivity theory.