Low-Cost Airlines—A New Customer Relationship? An Analysis of Service Quality, Service Satisfaction, and Customer Loyalty in a Low-Cost Setting

Abstract

ABSTRACT. Many organizations are now paying close attention in evaluating and implementing marketing strategies with the specific aim of improving customer retention. While extensive literature has focused on the link between service quality, satisfaction, and loyalty, little research has been conducted on examining these three constructs in the context of low cost airlines. Using questionnaire data collected at two European airports, the results suggest that though both the service quality and customer satisfaction have positive influence on repurchase intentions, customer satisfaction is a much stronger driver in influencing repurchase loyalty than service quality, which implies that these constructs interact in a different manner in a low cost setting.

The Effects of Airline Mergers on Consumers' Perceptions of Services and Behavioral Responses

“…Customers that have received better service cues, such as comfortable seats, friendly flight attendants, and quality food and beverages, during the flight, perceived a higher level of service quality (Kaynak, Kucukemiroglu, and Kara ; Mikulić and Prebežac ; Young, Cunningham, and Lee ). The findings of this study support the literature suggesting that customers who receive better ground services, such as easy check‐in and boarding processes, effective baggage handling, and on‐time flights, will perceive better service quality (Curry and Gao ; Gilbert and Wong ; Kaynak, Kucukemiroglu, and Kara ). The results showed that the greatest difference in PSQ between United Airlines and Continental Airlines before the merger was due to their ground services.…”

“…Airline merger, as the independent variable, was measured as a dummy variable with three values: 0 for postmerger United Airlines; 1 for premerger United Airlines; and 2 for Continental Airlines. We measured the dependent variables using 22 items in the research questionnaire via a 7‐point Likert scale ranging from “1 = Strongly Disagree” to “7 = Strongly Agree.” Similar to Curry and Gao (), this study considered PSQ in airlines a reflective second‐order construct, including three dimensions of flight experience ( α = .79), airport experience ( α = .82), and perceived safety ( α = .84)—each measured using four items adapted from previous literature on airline services (Mikulić and Prebežac ; Oyewole ; Ringle, Sarstedt, and Zimmermann ). Perceived service value ( α = .91) was measured using three items adapted from the consumer value literature (Agarwal and Kenneth Teas ; Sweeney and Soutar ).…”

“…The overall evaluation of service quality may influence BI and result in positive or negative responses, depending on the level of satisfaction (Boulding et al 1993). Empirical evidence reveals that satisfied airline passengers are more likely to repeat their purchase, recommend the airline through word of mouth (WOM), and stay loyal to the airline for future flights (Curry and Gao 2012;Ringle, Sarstedt, and Zimmermann 2011). In contrast, unhappy customers may complain about services, switch to other airlines, and express negative WOM through blogs and online reviews (Kim and Lee 2011).…”

“…PS ( = .93) and BI ( = .94) were each measured using three items adapted from the literature on customer satisfaction (Chan, Yim, and Lam 2010;Ringle, Sarstedt, and Zimmermann 2011;Zeithaml, Berry, and Parasuraman 1996). The effects of demographic factors, flight seat class (i.e., first class vs. economy), flight purpose (i.e., business, leisure, family visit, education, and others), and flight frequency on the dependent variables were controlled (Curry and Gao 2012;Gilbert and Wong 2003;O'Connell and Williams 2005).…”

A model for aircraft evaluation to support strategic decisions

“…-the impact of airline service quality and comfort on passenger choices (Balcombe, Fraser, & Harris, 2009;Jiang, 2013;Martin, Roman, & Espino, 2008;Park, Robertson, & Wu, 2004;Park, Robertson, & Wu, 2004Wojahn, 2002;Jiang, 2012;Pennig, Quehl, & Rolny, 2012;Wojahn, 2002;Yang, Hsieh, Li, & Yang, 2012;Zhang Y., Zhang, 2012); -the attributes of the airline service quality (Babbar & Koufteros, 2008;Curry & Gao, 2012;De Jager, Van Zyl, & Toriola, 2012;Kim & Lee, 2009;Martin, Roman, & Espino, 2011;Wen & Yeh, 2010) and the customer-value drivers (Boetsch, Bieger, & Wittmer, 2011;Park, Robertson, & Wu, 2009); -the evaluation of airline service quality (Chen & Chang, 2005;Cheng & Chang, 2006;Chou, Liu, Huang, Yih, & Han, 2011;Higgins, Lawphongpanich, Mahoney, & Yin, 2008;Liou & Tzeng, 2007;Pakdil & Aydin, 2007;Tsaur, Chang, & Yen, 2002); -the effect of service quality on airlines' performance (Sim, Koh, & Shetty, 2006), the proposal of methods and strategies for improving airline service quality (Liou, Tsai, Lin, & Tzeng, 2011;Liou, Yen, & Tzeng, 2010;Maji, 2012);…”