An Evaluation for Long-Haul Low-Cost Carriers Using User-Generated Content

2020 ◽  
pp. 231-251
Author(s):  
Mahmut Bakır ◽  
Sahap Akan ◽  
Ozlem Atalik
Keyword(s):  
Regression Analysis ◽  
Service Quality ◽  
Business Model ◽  
Airline Industry ◽  
Low Cost ◽  
Perceived Value ◽  
User Generated Content ◽  
Low Cost Carriers ◽  
New Business ◽  
The Relationship

Since the liberalization of the airline industry, the low-cost business model has been developed worldwide and a new business model of long-haul low-cost carriers (LHLCCs) has evolved. This chapter aims to investigate the LHLCC business model from a customer-oriented perspective in terms of service quality and perceived value. For this purpose, the authors investigated the effect of service quality on perceived value for money for LHLCCs. In this chapter, user-generated content was adopted to collect data, and 824 user-generated airline reviews were collected from TripAdvisor.com, the largest tourism-related repository. In order to investigate the relationship, a predictive correlational design was structured and a logistic regression analysis was applied. To contribute to the regression analysis, a receiver operating characteristic (ROC) analysis was performed to measure the classification success. As a result, the logit model describes well the relationship between variables for LHLCCs.

scholarly journals PENGARUH KUALITAS PELAYANAN DAN KEWAJARAN TARIF TERHADAP NILAI KONSUMEN SERTA RETENSI PELANGGAN UNTUK PENERBANGAN DOMESTIK NIAGA FULL SERVICES DI INDONESIA

KINERJA ◽  
2017 ◽  
Vol 18 (1) ◽  
pp. 1
Author(s):  
Yasintha Soelasih
Keyword(s):  
Service Quality ◽  
Airline Industry ◽  
Low Cost ◽  
Perceived Value ◽  
Customer Retention ◽  
Low Cost Carriers ◽  
Very High

Competition in the airline industry is very high. This can be seen that there are so many enterprises in this industry. There is a change in the legacy carriers to low cost carriers. Companies that still maintain the legacy carriers will have an impact on higher rates charged to passengers compared to the low cost carriers. Therefore the companies that use the legacy carriers should be able to provide better services than the companies that use low cost carriers. The companies should pay attention to service quality and fairness of tariffs, so that consumers perceived value to these companies are much more higher than to the company that using low cost carriers. As a result, customer retention occurs.

The mediating role of passenger satisfaction on the relationship between service quality and behavioral intentions of low-cost carriers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hsiu-Fen Lin
Keyword(s):  
Service Quality ◽  
Behavioral Intentions ◽  
Low Cost ◽  
Group Analysis ◽  
Equation Modeling ◽  
Research Model ◽  
Content Type ◽  
Passenger Satisfaction ◽  
Low Cost Carriers ◽  
The Relationship

PurposeBy extending the existing service quality dimensions and reflecting the low-cost carriers (LCCs) context, the purpose ot this study aims to develop the research model to examine whether passenger satisfaction mediates the relationship between service quality and behavioral intentions of LCCs across low- and high-experience passengers.Design/methodology/approachData collected from 320 passengers (180 for low-experience passengers and 140 for high-experience passengers) to test the research model. The partial least square structural equation modeling approach was used to perform the path modeling and multi-group analysis.FindingsThe results confirm that passenger satisfaction mediates the relationship between four service quality constructs (tangible features, service reliability, quality of personnel and online ticketing service) and behavioral intentions (repurchase and recommendation intentions) for both low- and high-experience passengers. However, convenient flight schedule has a significant influence on passenger satisfaction only for low-experience passengers.Practical implicationsThe results of multi-group analysis indicated that passenger satisfaction exerts stronger effect on recommendation intentions for low-experience passengers. LCCs managers' priority should be placed on providing satisfying service experiences to less experienced passengers. Improved passenger satisfaction through superior service quality motivates low-experience passengers to recommend LCCs, thus increasing the positive word-of-mouth promotion.Originality/valueTheoretically, this study is first considering both low- and high-experience LCCs passenger perceptions to examine how passenger satisfaction mediates the relationship between service quality and post-purchase intentions. From the managerial perspective, the findings can provide useful management insights into developing multi-faceted strategies that allow LCCs firms to restore passenger confidence and retain their repurchase intentions.

scholarly journals The relationship between service quality, client satisfaction, perceived value and client loyalty: a case study of Fly Emirates

2020 ◽  
pp. 219-238
Author(s):  
Ashraf Jahmani ◽  
Islam Bourini ◽  
Omar A. Jawabreh
Keyword(s):  
Service Quality ◽  
Airline Industry ◽  
Structural Equation ◽  
Client Satisfaction ◽  
Negative Relationship ◽  
Perceived Value ◽  
Quantitative Information ◽  
Equation Modeling ◽  
Proposed Model ◽  
The Relationship

La lealtad del cliente es uno de los mayores desafíos para la industria de las aerolíneas. Por eso, los profesionales de marketing están buscando información sobre cómo desarrollar la lealtad del cliente. Este estudio explorará la relación entre la calidad del servicio, la satisfacción del cliente, el valor percibido y la lealtad del cliente en la industria aérea. El propósito de este estudio es desarrollar e implementar un método para que la aerolínea identifique atributos que aumentarán la lealtad del cliente. Unos 384 encuestados participan en este estudio y los cuestionarios se distribuyeron al azar entre los pasajeros que viajaban en Fly Emirates. En particular, un enfoque deductivo adaptado para recopilar información cuantitativa específica para aceptar o rechazar la hipótesis. El estudio actual aplica el modelo de ecuación estructural SEM-PLS para investigar la relación entre los constructos en el modelo propuesto. Este estudio encontró que la calidad del servicio tiene una relación positiva en la satisfacción de los pasajeros y la lealtad del cliente. Por otro lado tiene una relación negativa en el valor percibido y la lealtad del cliente. Los resultados de este estudio indicaron que la calidad del servicio y la satisfacción del pasajero son factores importantes que afectan a la lealtad del cliente. En conclusión, Fly Emirates debe ser capaz de comprender la importancia de la calidad del servicio y la satisfacción del pasajero para cumplir con la lealtad del cliente y mejorar la calidad del servicio que es más importante en la industria de las aerolíneas. Client loyalty is one of the biggest challenges for the airline industry and marketers are seeking information on how to build client loyalty. This study will explore the relationship between service quality, client satisfaction, perceived value and client loyalty in the airline industry. The purpose of this study is to develop and implement a method for airline to identify attributes that will increase client loyalty. 384 respondents participate in this study and questionnaires were distributed randomly to passengers traveling by Emirates. In particularly a deductive approach adapted to collect specific quantitative information to accept or reject the hypothesis. Current study applies Structural Equation Modeling SEM-PLS to investigate the relationship among the constructs in proposed model. This study found that service quality has appositive relationship on passengers’ satisfaction and client loyalty and negative relationship on perceived value and client loyalty. The results of this study indicated that service quality and passenger's satisfaction are important factors effect of client loyalty. In conclusion Emirates must be able to understand the importance of service quality and passenger's satisfaction to fulfill the client loyalty and improve the service quality that make most significant in airline industry.

An Empirical Investigation of the Relationship between Profitability Persistence and Firms' Choice of Business Model: Evidence from the U.S. Airline Industry

2011 ◽  
Vol 23 (1) ◽  
pp. 37-70 ◽  
Author(s):  
Denton L. Collins ◽  
Francisco J. Román ◽  
Hung C. (“Leon”) Chan
Keyword(s):  
Business Model ◽  
Airline Industry ◽  
Low Cost ◽  
Profit Margin ◽  
Pricing Policy ◽  
Low Cost Carriers ◽  
Asset Turnover ◽  
The Individual ◽  
The U.S ◽  
Relative Persistence

ABSTRACT This paper examines the influence of a firm's business model on the relative persistence of profitability in the U.S. airline industry. The strategic management literature describes a firm's business model as reflecting how that firm chooses to compete in the marketplace. Given this linkage between business model, competition, and the marketplace, we conjecture that the persistence of profit margin and asset turnover ratios will be influenced by firms' choices of business model. Further, we hypothesize that this choice of business model influences the relative persistence of the individual revenue and expense components of current profit margin and asset turnover ratios for future profitability ratios. We test these conjectures by (1) partitioning our sample firms according to business model (network carriers versus low-cost carriers), and (2) decomposing sample firms' profit margin and asset turnover ratios into components relating to pricing policy, input cost control, and productivity. We find that the profit margin and asset turnover ratios of network carriers tend to be more persistent than those of low-cost carriers, and that this differential persistence is reflected in the associations between current revenue and expense components, and future profit margin and asset turnover ratios.

scholarly journals Hybrid” airlines – Generating value between low-cost and traditional

2017 ◽  
Vol 11 (1) ◽  
pp. 577-587 ◽  
Author(s):  
Cristina Stoenescu ◽  
Camelia Monica Gheorghe
Keyword(s):  
Business Model ◽  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Theoretical Perspective ◽  
Loyalty Programs ◽  
Market Segments ◽  
New Business ◽  
Basic Services ◽  
Cost Efficient

Abstract Over the last years, the rise of low-cost airlines has determined significant changes in the airline industry and has shaped the evolution of the existing business models. Low-cost airlines started by offering basic services at very low prices; traditional airlines responded by equally cutting costs and reinventing the services offered, with an orientation towards braking down the fare and implementing add-ons, in order to become cost-efficient. As traditional airlines developed strategies to become competitive in this new environment, low-cost airlines started focusing on new ways of enhancing passenger experience and attracting new market segments. As a result, the fragmentation of the market segments addressed by low cost carriers and traditional airlines became less obvious and the characteristics of both business models started to blend at all levels (airline operation, distribution channels, loyalty programs, fleet selection). Thus, this new competition became the foundation of the development of a new „hybrid” carrier, between the low-cost and the traditional models. This article investigates the characteristics of the newly created business model, both from a theoretical perspective and by analysing several case studies. A particular attention will be granted to the evolution of the Romanian carrier Blue Air towards the “hybrid” model. The article focuses on determining the position of the “hybrid” airline in a market with carriers situated along both sides of this business model: lower cost vs. “better” experience and raises the question on how value can be generated in this context. Another aspect tackled is the understanding of the new segmentation of the market, as a consequence of the development of the new business model. In order to achieve this purpose, a survey has been conducted, aiming to mark out the travel preferences of the passengers travelling through the Henri Coandă International Airport.

Reading between the lines: untwining online user-generated content using sentiment analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gowhar Rasool ◽  
Anjali Pathania
Keyword(s):  
Service Quality ◽  
Sentiment Analysis ◽  
Airline Industry ◽  
Large Scale ◽  
Low Cost ◽  
Marketing Research ◽  
Analytical Framework ◽  
User Generated Content ◽  
Knowledge Domain ◽  
Content Type

PurposeOne of the major challenges within the airline industry is to keep pace with the changing customer perception toward their service quality. This paper aims to demonstrate how sentiment analysis of user-generated big data can be used to research airline service quality as a more comprehensive alternative to other survey-based models by investigating real-time passenger insights.Design/methodology/approachThe present research uses the case of Indigo airlines by studying passenger's trip advisor reviews regarding the low-cost commercial airline service. The authors analyzed 1,777 passenger reviews, which were classified, to uncover sentiments for five dimensions of airline service quality (AIRQUAL).FindingsThe findings of the study demonstrate the need for harnessing the brand-related user-generated content shared on online platforms to identify the critical attributes for airline service quality. Further, through the application of sentiment analysis, the paper provides much-needed clarity in the processing of user-generated content. It illustrates the investigation of passenger interactions as a reflection of their satisfaction, expectation, intention and overall opinion toward the airline service quality.Practical implicationsThe analytical framework adopted in the study for examining user-generated content (UGC) can be functional for the marketing managers and equip them for handling large-scale data readily available in action-oriented interactive marketing research.Originality/valueThis paper demonstrates how sentiment analysis of user-generated data can be used to research airline service quality as a more comprehensive alternative to other survey-based models. The study supplements the methodological advances in the field of UGC analysis and adds to the existing knowledge domain.

scholarly journals Pengaruh Customer Perceived Value , Service Quality, Dan Physical Environment Terhadap Kepuasan Dan Kesetiaan Pelanggan

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Shelly Agustina Natawijaya Dan Keni
Keyword(s):  
Regression Analysis ◽  
Data Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Physical Environment ◽  
Positive Impact ◽  
Perceived Value ◽  
Customer Perceived Value ◽  
The Relationship

The aim of this study are : First, to explore the effect of customer perceived value , service quality, and physical  environment on customer loyalty. Second, to explore the effect of  customer perceived value , service quality, and physical  environment on customer satisfaction. Third, to explore the effect of customer satisfaction towards customer loyalty. Fourth, to find out if customer satisfaction can mediate  customer perceived value , service quality, and physical  environment towards customer loyalty.  The method of data collection is purposive sampling.  The samples of this research are collected from 326 respondents, who are the customers of  furniture store in Jakarta.  The technique of data analysis used in this study was regression analysis and mediating test to find put the hypotheses. The results are : (a) the relationship between customer perceived value , service quality, and physical  environment have a significant and positive impact toward customer loyalty; (b)  the relationship between customer perceived value , service quality, and physical  environment have a significant and positive impact toward customer satisfaction; (c) customer satisfaction has a positive impact on customer loyalty; (d) customer satisfaction  will mediate the effect of  customer perceived value , service quality, and physical  environment towards customer loyalty.

scholarly journals Airline service quality evaluation for Indonesian low-cost carriers based on Extenics innovation theory

2021 ◽  
Vol 58 (2) ◽  
pp. 7-20
Author(s):  
Ronald Sukwadi ◽  
Angela Susanto ◽  
Yun-Chia Liang
Keyword(s):  
Service Quality ◽  
Airline Industry ◽  
Low Cost ◽  
Future Research ◽  
Extensive Literature ◽  
Service Needs ◽  
Innovation Theory ◽  
Ahp Method ◽  
Modern Development ◽  
Low Cost Carriers

Nowadays, the market is getting competitive in all aspects of the survival of the company. Companies, especially in the service industry, realize that in order to win the market, they need to explore new ways of delighting customers. The airline industry has played a vital role in Indonesia's modern development and competitiveness. Fierce competition and shrinking profits have impelled the airlines to stress upon improving the quality of the services being provided to the passengers. Passengers have become very specific about their service needs and often tend to shift to others that pro-vide better services. Service quality has emerged as a critical consideration for airlines in the competitive global mar-ket, coinciding with Low-Cost Carriers' rapid proliferation (LCCs), bringing a paradigm shift in airline business strat-egy. Twenty-five service quality attributes identified through extensive literature review and results obtained through five modified AIRQUAL dimensions are fruitful for airline managers to address service quality issues. This paper aims to evaluate LCCs’ service quality in Indonesia using the Extenics innovation theory. The Extenics innovation theory is a kind of method with the combination of formalization, quantification, and logicalization. It is effectively applied to put forward creative ideas of new services of airlines. The concepts and principles of service attributes classification based on Extenics are also discussed. To consider interdependence and to calculate the relative importance of each criterion, the AHP method is applied. The study demonstrates and signifies that the Extenics theory and AHP method are promising and pragmatic evaluation model for customer-oriented airline strategic planning. This study has a number of practical implications for LCC airlines, its policy makers and managers. Findings of this study suggest that LCC airlines should focus on appropriate strategies for improving their customers’ satisfaction. Airlines should con-cern on service failures such as delays by providing extra customer care to supplement required material compensation and provide valuable objective feedback and information. A theoretical implication of this study is that Extenics inno-vation theory can classify and prioritize the service attributes of airlines. Further, the scope of future research works has been discussed at the end to conclude the paper.

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