scholarly journals Customers’ Experiences of Compassion and Brand Attitude: Evidence From Low-Cost Carriers

2021 ◽  
Vol 12 ◽  
Author(s):  
Sung-Hoon Ko ◽  
Yongjun Choi ◽  
Jongsung Kim

The purpose of this study is to examine the effect of compassion experienced by low-cost carriers customers on their brand attitudes. Specifically, this study aims to unbox the mechanisms through how the customers’ experiences of compassion influence the formation of positive brand attitudes. Using the data from 423 low-cost carriers customers in South Korea, this study found that the more low-cost carriers’ customers experience compassion, the more positive their brand attitudes are toward the low-cost carriers. Notably, this study demonstrated that the positive relationship between compassion and brand attitudes is serially mediated by positive emotion and positive brand image. The results from this study contribute to the literature on the airline industry by examining the roles of compassion, which is relatively new to the field, and also provide practical insights for a low-cost carrier to come up with competitive strategies to achieve a competitive advantage over its competitors in the industry.

Energies ◽  
2020 ◽  
Vol 13 (3) ◽  
pp. 639
Author(s):  
Jolanta Sabaitytė ◽  
Vida Davidavičienė ◽  
Gerard Frederick Van Kleef

Low-cost carriers (LCCs) have been growing by 11.4% in revenue passenger kilometers over 2017 and changed the airline industry radically. It drove down prices in the industry. Southwest Airlines (USA) designed the LCC blueprint model, and Ryanair copied it within Europe, followed by other airlines. This research aims to fulfill the gap in contemporary research upon LCC successfulness in Europe by a description of the current situation within Europe (2018 and January 2019) and the development issues it faced, which are mapped by the Ishikawa fishbone diagram. Furthermore, to rank the airlines on strength and vulnerability, The Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methodology was used for meeting LCC characteristics and airline success. By comparison of meeting the LCC characteristics and the rank of the successfulness, the results of the TOPSIS analysis showed that the airlines meeting the most LCCs characteristics are seemingly less vulnerable to the development issues that airlines are facing, as Wizz Air and Ryanair are meeting most characteristics and are the most successful. Concluded is that airlines meeting the most LCC characteristics are the least vulnerable to current issues. However, major disruptions can still form an issue and limit growth. This research can be useful for comparing and positioning airlines in the market, based on issues and operational choices.


Aviation ◽  
2014 ◽  
Vol 18 (4) ◽  
pp. 203-216 ◽  
Author(s):  
Panarat Srisaeng ◽  
Glenn S. Baxter ◽  
Graham Wild

Due to the vast distances across the country as well as between urban centres, Australia is heavily reliant upon its air transport industry. Following deregulation of Australia's domestic air travel market on the 30th October, 1990, low cost carriers have entered the market. Australia's LCC market has had three discrete phases. The first wave occurred between 1990 and 1993 and was subsequently followed by a duopoly period in 1994–1999. The second wave occurred between 2000 and 2006 and the final wave has been in the post-2006 period. This paper examines the evolution of Australia's domestic low cost carrier airline market and finds that by 2010, low cost carriers had captured around 64 per cent of the market. Following the evolution of the “Virgin Australia” business model from a low cost carrier to a full service network carrier, commencing in 2011, the low cost carrier's market share has declined significantly and is now around 31 per cent. “Jetstar” and “Tiger Airways” are the two major carriers presently operating in this market segment.


Author(s):  
Farrah Zeba ◽  
Musarrat Shaheen ◽  
Raveesh Krishnankutty

In the hyper-competitive Indian airline industry, the low-cost carriers as well as full-service airlines are in dire need of innovative marketing strategies to engage their customers. To understand the dynamics behind the process of customer engagement, the purpose of this paper is to gain insights into the lived experience of consumers about their online air-ticket bookings experiences. In total, 60 frequent air travellers were approached to participate in the study and the self-completion diary method was incorporated to record their ticket booking experiences. The responses recorded in the diaries were analyzed on the basis of their content from which eight themes were derived. The findings bring forth the importance of hedonic experiential values along with utilitarian experiential values toward the engagement of customers during the online air-ticket booking process. The current study is one of the pioneers in conceptualization of customer engagement as a third-order construct by uncovering the sub-dimensions of the second order factors—utilitarian and hedonic experiential values.


2020 ◽  
Vol 9 (1) ◽  
pp. 138-147
Author(s):  
Amit Mittal ◽  
Sahil Gupta

Vistara—a joint venture between Tata Sons (India) and Singapore Airlines (Singapore)—is a full-service private airline in India that launched operations in January 2015. The airline has been growing at a steady pace and has already won a number of awards, but going forward it shall have a number of challenges to confront, especially on how to increase its market share in an industry dominated by low-cost carriers and prone to uncertainties emerging from external factors beyond its control (e.g., fuel prices and an uncertain political environment). To further complicate issues, Indian aviation, despite being among the fastest growing aviation markets across the world, is still making heavy losses. For Vistara, a lot is at stake considering that the airline is backed by two major reputable organizations. In the times to come, the airline will have to learn how to navigate the complex aviation environment and seeks ways to live up to its name, which means limitless expanse.


Subject Europe's airline industry. Significance Despite good performance over the past year, the underlying condition of the European airline industry has not changed. Major carriers are still facing competitive challenges from long-haul airlines based in the Gulf, especially Emirates, Qatar Airways and Etihad Airways, and from the European low-cost carrier (LCC) sector. Impacts The fallout from recent terrorist attacks could hit the industry's fragile recovery. Labour unrest in France will affect Air France, as its pilots voted on May 30 to go on strike over pay conditions. A UK exit from the EU would force its airlines, some of the most efficient in Europe, to reconsider the focus of their operations. New opportunities may arise from the Commission's efforts to negotiate aviation agreements with such countries as Brazil as well as ASEAN.


Significance Despite low fuel costs and the global airline industry running profitable operations, Kenya Airways has recorded multiple years of losses, leading the company to consider a recovery strategy that includes selling aircraft and shedding jobs. Impacts East African air carriers could benefit from industry rationalisation, but domestic political concerns could obstruct regional reforms. Low-cost carriers have emerged in Africa but struggle to make headway against publicly owned airlines. Once Kenya Airways exits fuel-hedging commitments, lower prices should improve profit margins. Without airline liberalisation and local carrier rationalisation, foreign airlines will benefit most from growing African air travel. Government protectionism, high taxes and regulation will restrict competition, especially from low-cost carriers.


Author(s):  
Rose Luke ◽  
Jackie Walters

Deregulation or liberalisation of air transport has had major global impacts on the domestic air transport markets, with effects ranging from stimulation to changes in the structure and functioning of these markets. In South Africa, deregulation has had wide-reaching effects on the domestic market. The purpose of this article was to investigate the current domestic air transport market. A literature review was performed to examine the effects of deregulation in other domestic air transport markets around the world. This was followed by a review of the South African domestic air transport market prior to deregulation in order to determine the changes that were made following deregulation. The ten-year period immediately following deregulation was also examined; this period was characterised by relatively large numbers of market entries and exits. A database was obtained from the Airports Company South Africa; air traffic movements, passenger numbers and load factors were evaluated. The study showed that the market is still characterised by regular market entries and exits. Also that the entry of the low-cost carriers has stimulated the market, resulting in increased air traffic movements, higher passenger numbers, higher load factors in general and the opening of a secondary airport in Gauteng, Lanseria International. Deregulation and, more specifically, the entry of the low-cost carriers has resulted in structural changes in the market and more choice for passengers.


2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Dewa ayu Alit Lakhsmidevy

Kebutuhan masyarakat Indonesia atas layanan transportasi terus meningkat sesuai dengan meningkatnya pembangunan nasional. Jenis layanan transportasi udara juga terus berkembang, salah satu adalah dengan beroperasinya model penerbangan unik yaitu melalui strategi penurunan operating cost di semua lini yang mengakibatkan harga tiket dapat ditekan. Model penerbangan ini disebut low cost carrier (LCC). Kepuasan konsumen terhadap pelayanan yang diberikan oleh maskapai penerbangan di Indonesia sangat berpengaruh terhadap seberapa besar tingkat kualitas pelayanan dari sebuah maskapai penerbangan. Berbagai pelayanan yang mempengaruhi, kepuasan konsumen adalah keramahan seluruh awak kabin, fasilitas fisik yang ada, tarif penerbangan, ketepatan waktu keberangkatan kemudahan akses dan juga keselamatan penerbangan. Berdasarkan jajak pendapat dari 2.674 orang responden mengenai apa yang diinginkan dari sebuah maskapai penerbangan didapatkan hasil sebanyak 9,6% menginginkan pelayanan ramah dari awak kabin, 16,9% penerbangan yang tepat waktu, armada yang baru 18,3%, 55,2% tarif yang murah (Indopos. 2015). Maskapai penerbangan di Indonesia sering mengalami keterlambatan waktu pada saat akan terbang atau dengan kata lain sering mengalami delay. Salah satu maskapai penerbangan di Indonesia yang sering mengalami keterlambatan dalam pemberangkatan pesawat adalah penerbangan low cost carriers. Secara garis besar tujuan penelitian ini adalah : menguji pengaruh service quality, customer satisfaction, brand trust terhadap costumer commitment serta dampaknya kepada customer loyalty pada penerbangan domestik maskapai low cost carrier di Bandara Internasional Ngurah Rai, Bali. Dengan unit observasi sebanyak 250 responden yang terdiri dari beberapa kriteria responden. Metode penelitian adalah explanatory survey. Hasil pengujian menunjukkan total indirect effect paling tinggi adalah pengaruh service quality terhadap customer loyalty dengan nilai t value sebesar 4,074, selanjutnya service quality terhadap customer commitment dengan nilai t value sebesar 3,243 di ikuti dengan sisa variabel lainnya. Hasil ini menunjukkan bahwa service quality merupakan variabel yang mendominasi pada hasil penelitian yang dilakukan. Semakin baik service quality yang diberikan maskapai kepada penumpang maka akan meninggkatkan komitmen penumpang dan selanjutnya akan menggiring penumapng untuk semakin loyal kepada maskapai.


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