The effect of service quality and price on international airline competition

Jou, Rong-Chang; Lam, Soi-Hoi; Hensher, David A.; Chen, Chih‐Cheng; Kuo, Chung-Wei

doi:10.1016/j.tre.2007.05.004

Cited by 59 publications

(35 citation statements)

References 6 publications

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“…Convenience of service is also important in a passenger's choice of airline. This implies that airlines should improve various aspects of convenience, e.g., ease in purchasing tickets, baggage handling, or flight times [22]. Wittmer et al [23] found that management of customers' value poses special problems in the context of the aviation industry, because airlines are subject to various consumer-related factors (e.g., socio-demographic characteristics, involvement) and situation-related factors (e.g., time pressure, peer-group pressure, etc.…”

Section: Components Of Airline Service Qualitymentioning

confidence: 99%

Multiple Conceptual Modelling of Perceived Quality of In-flight Airline Services

Šebjan

Tominc

Širec

2017

PROMET

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KEY WORDSin-flight airline service quality; perceived value; recommendations (word of mouth); airline seat comfort; INTRODUCTIONThe growth of globalization today gives air transport an ever more important role. In the past two decades, the air travel industry has faced significant changes reflected in higher quality standards, various pricing strategies, and growth of air transport traffic, among other changes [1]. According to the 60th Edition of the International Air Transport Association (IATA) World Air Transport Statistics (WTS) for 2015, the yearbook of the airline industry performance, in 2015 world airlines carried 3.6 billion passengers on scheduled services; an increase of 7.2% over 2014, representing an additional 240 million air trips. In addition, airlines transported 52.2 million tonnes of cargo [2].Although the global economic performance remains a concern, the strength of the economic cycle will play a key role in the continuous expansion of demand growth for air travel in 2017. However, experts warn that the questions over the durability of the economic upswing, rising oil prices [3], financial crisis in Greece, recent weakness in regional trade activity in the Asia-Pacific area, and the renewed terrorism threats and continued geopolitical tensions have the potential to dampen the performance on these markets [2]. These are all reasons that further encourage the examination and monitoring of air travel services. The growing competition, rising demand, and described potential threats require constant delivery of high-quality services within the airline industry. Simultaneously, continuous improvements are essential for airline profitability and sustained development. Therefore, a better understanding of the relationship between determinants affecting passenger's service quality perception, their perceived value, and consequently their behavioural intentions are of the utmost importance, and the focal point of the present research.Researchers have studied various dimensions of airline services quality from the passenger's perspective, most of which investigated passengers' perception of airline service quality in relation to their behavioural intentions, taking into consideration the theory of airline services value, price, feedback, and passenger satisfaction [4,5,6,7,8]. Since transport service is a chain process, passengers' air travel experiences can be observed from the perspective of airport ground services and in-flight services [1]. The latter has gained considerably less attention among researchers. That is why the present study pays attention to specific areas, such as in-flight airline services quality in relation to perceived value and passengers' recommendations (word of mouth -WOM) (which, in our case, is regarded as a proxy for passengers' behavioural intentions), as well as passengers' perception of airline seat comfort. The quality of airline seats Human -Transport Interaction Preliminary Communication

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Section: Components Of Airline Service Qualitymentioning

confidence: 99%

Multiple Conceptual Modelling of Perceived Quality of In-flight Airline Services

Šebjan

Tominc

Širec

2017

PROMET

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“…First, Jou et al (2008) indicated that low ticket prices provided by LCCs may be one of the major drivers that attract customers. That is, financial advantages are important criteria used by most customers in deciding in LCCs selection.…”

Section: Price and Conveniencementioning

confidence: 99%

Using analytic network process to measure the determinants of low cost carriers purchase intentions: A comparison of potential and current customers

Lin

Huang

2015

Journal of Air Transport Management

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“…This condition urges the company to improve their service quality. Berry, Parasuraman and Zeithaml (1988);Rong (2008) presented service quality is the right strategy tool in competition. Parasuraman et al (1988) stated that service quality is a multi dimensional concept with five key dimensions namely, reliability, responsiveness, assurance, empathy, and tangibles.…”

Section: Service Qualitymentioning

confidence: 99%

Impact of Service Quality, Customer Satisfaction and Word of Mouth on Loyalty

Rahayu¹

2018

JIBE

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To reduce the use of private cars and to shift to use Transjakarta bus, PT. Transportasi Jakarta as the management of Transjakarta bus tries to improve its service by adding new corridors and new buses. The purpose of this study is to analyze Impactof Service Quality, Costomer Satisfaction and Word of Mouth to Loyalty on bus Transjakarta in Jakarta ,Indonesia. Base on the aims of the study , hypotheses of the study are : 1) Service Quality influences on Loyalty ;2) Costomer Satisfaction influences on Loyalty ; 3) Word of Mouth Award influences on Loyalty. The study design used is a combination of verificative statistic and descriptive statistic, while research method used is survey approach, data are collected through self administered questionnaire completed by 275 respondents. Sampling technique is done by purpose sampling . The method of analysis uses descriptive statistic average and Structural Equation Modeling method by using software Lisrel for hipotheses testing. The result show on the descriptive analysis toward the variable used is positive and some are negative. The SEM result analysis toward the hypothesis test based on imphirical data of 2 hypotheses proven are service quality is proven to be significantly influence the loyalty, customer satisfaction is proven to be significantly influence the loyalty and. This is one only hypotheses result that is not proven that word of mouth does not influence loyalty.

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The effect of service quality and price on international airline competition

Cited by 59 publications

References 6 publications

Multiple Conceptual Modelling of Perceived Quality of In-flight Airline Services

Multiple Conceptual Modelling of Perceived Quality of In-flight Airline Services

Using analytic network process to measure the determinants of low cost carriers purchase intentions: A comparison of potential and current customers

Impact of Service Quality, Customer Satisfaction and Word of Mouth on Loyalty

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