The Factors Influencing Low-Cost Airline Passenger Satisfaction

90 Pages·2013·2.21 MB·English

by  Jolie Tran

The Factors Influencing Low-cost Airline Passenger
Satisfaction and Loyalty in Bangkok, Thailand
Zhicheng Qin
http://eprints.utcc.ac.th/id/eprint/1326

© University of the Thai Chamber of Commerce
EPrints UTCC
http://eprints.utcc.ac.th/
The Factors Influencing Low-Cost Airline Passenger Satisfaction
and Loyalty in Bangkok, Thailand

ZHICHENG QIN

A Thesis Submitted in Partial Fulfillment of the Requirements
For the Degree of Master of Business Administration
International College
University of the Thai Chamber of Commerce
2012
Dissertation Title The Factors Influencing Low-cost Airline Passenger
Satisfaction and Loyalty in Bangkok, Thailand.
Name Zhicheng Qin
Degree Master of Business Administration
Major Field International Business
Thesis Advisor Dr. Piraphong Foosiri
Graduate Year 2012

ABSTRACT

In this research, we address the following questions that are becoming
increasingly important to managers in low-cost airline industries: is there a
relationship between marketing mix and service quality with customer satisfaction
and loyalty in the context of the Thailand low-cost airline industry? If yes, how is the
relationship between these four variables?
The low-cost airline industry in Thailand is one of the largest in the Asian country
and one of the fast growing globally. Loyalty is an important issue for the
sustainability of business of the companies. Relationships with the customers should
be built well in order to achieve their satisfaction and consequently loyalty.
Furthermore, the airlines sector has its own specific circumstances to be considered in
order to earn the customer satisfaction. In this study the service marketing mix and
service quality are the most important factors that affect the low-cost airline passenger
satisfaction and loyalty in Thailand. The concept of marketing mix divided into
product and service marketing mix. In this study would focus on the service
marketing mix. The service marketing mix consists of 7 P’s (Product, Price, Place,
Promotion, People, Physical Evidence, and Process). To measure functional quality
and perceived quality satisfaction in the low-costs airline industry, there are some
models. However, in this study, the proposed model was developed by the help of the
most popular and complete service quality measurement model of SERVQUAL.
iv
The population of the study is all of the low-cost airline passengers in Don
Mueang international airport. And the survey research will be through distributed
questionnaire to low-cost airline passenger in Don Mueang international airport to
collect data. After that use the multiple regression analysis to analysis the result and
examine the relationship among above factors. Results of the study show that there
are high positive correlation between the constructs of marketing mix and service
quality with customer satisfaction and loyalty. And the research also showed that (1)
the service marketing mix factors have partially affects low-cost airline passenger’s
satisfaction. (2) The service quality factors have partially affects low-cost airline
passenger’s satisfaction. (3) The service quality factors have partially affects low-cost
airline passenger’s loyalty. (4) The passenger’s satisfaction factor affects passenger’s
loyalty. Finally, Understanding customers’ responses to airline service quality and the
factor effect the low-cost airline passenger satisfaction and loyalty, airline managers
can gain a better understanding of how to improve their service offers to satisfy
customers and improve the customer loyalty. And the results of the study can be a
useful resource for future research.
v
ACKNOWLEDGEMENTS

This thesis has been written for a Master of Master of Business Administration
Department of International Business. Many people have helped me during the
process to whom, I would like to extend my appreciation and regard.
First and foremost, I would like to express my deep and sincere gratitude to my
supervisor, Dr. Piraphong Foosiri, a respectable, responsible and resourceful scholar
who has provided me with valuable guidance in every stage of the writing of this
thesis.
I would like to express my sincere and appreciation to my committee members:
Dr. Pitsamorn Kilenthong, Dr. Li Li, Dr. Theeranuch Pusaksrikit, Dr. Saran
Ratanasithi. They gave me a lot of valuable suggestions and guidance for my thesis. I
would like to thank all my teachers who have helped me to develop the fundamental
and essential academic competence.
I wish to express my profound gratitude and thanks to my father and mother and
also my sister, for their love, affection, trust, support and encouragements throughout
my life.
Last but not least, I wish to give a special thanks to my friends for their great help
as well as encouragement. I would also like to thank all the participants who
contributed to my work. Completion of this research is impossible without their
participation.

Zhicheng Qin

vi
TABLE OF CONTENTS

Abstract .................................................................................................................. iv

Acknowledgements ................................................................................................ vi

Table of Contents .................................................................................................. vii

List of Tables .......................................................................................................... ix

List of Figures ......................................................................................................... x

Chapter 1 Introduction ........................................................................................... 1
Research Background ............................................................................................... 2
Problem Statement .................................................................................................... 4
Research Objectives ................................................................................................. 5
Research Questions ................................................................................................... 5
Expected Benefits ..................................................................................................... 6
Scope of Research .................................................................................................... 6
Operational Definition ............................................................................................... 6

Chapter 2 Literature Review ................................................................................. 9
Theories and Literature Review .............................................................................. 10
Conceptual Framework ............................................................................................ 23
Research Hypotheses .............................................................................................. 23

Chapter 3 Research Methodology ........................................................................ 25
Research Design ..................................................................................................... 26
Population and Sample ........................................................................................... 26
Variables of the Research ....................................................................................... 27
Research Instrumentation ........................................................................................ 27
Data Collection ....................................................................................................... 28
Data Analysis ......................................................................................................... 28
Reliability Analysis ................................................................................................ 29
vii
TABLE OF CONTENTS (Continued)

CHAPTER 4 Data Analysis and Results .............................................................. 32
The result of Customer’s Background Information .................................................. 33
Level of Agreement Analysis................................................................................... 38
Analysis and Results of Hypotheses ........................................................................ 40

Chapter 5 Conclusion and Discussion ................................................................... 47
Conclusion .............................................................................................................. 48
Discussion ............................................................................................................... 50
Implication of the Study .......................................................................................... 51
Limitation and Future Research ............................................................................... 53

REFERENCES ...................................................................................................... 54

APPENDICES ....................................................................................................... 69

viii
LIST OF TABLES

Table 3.7.1 Reliability Test Using Cronbach’s alpha ................................................ 30
Table 4.1.1 Numbers and Percentage of Respondents by Characteristics .................. 33
Table 4.2.1 Level of agreement of marketing mix factors ......................................... 39
Table 4.2.2 Level of agreement of service quality factors ......................................... 39
Table 4.2.3 Level of agreement of customer satisfaction .......................................... 40
Table 4.2.4 Level of agreement of customer loyalty ................................................. 40
Table 4.3.1 Result of hypothesis the relationship between marketing mix factors and customer
satisfaction 41
Table 4.3.2 Result of hypothesis the relationship between marketing mix factors and customer
satisfaction ................................................................................................................ 41
Table 4.3.3 Result of hypothesis the relationship between service quality factors and
customer satisfaction ............................................................................................. 42
Table 4.3.4 Result of hypothesis the relationship between service quality factors and
customer satisfaction ............................................................................................. 43
Table 4.3.5 Result of hypothesis the relationship between service quality factors and
customer loyalty ..................................................................................................... 43
Table 4.3.6 Result of hypothesis the relationship between service quality factors and
customer loyalty .................................................................................................... 44
Table 4.3.7 Result of hypothesis the relationship between customer satisfaction factor
and customer loyalty ............................................................................................... 45
Table 4.3.8 Result of hypothesis the relationship between customer satisfaction factor
and customer loyalty ................................................................................................ 45
Table 4.3.9 Summary for all hypotheses .................................................................. 46
....................................................................................................................................

ix
LIST OF FIGURES

Figure 2.2.1 Conceptual framework ......................................................................2223
Figure 4.1.1 Survey participants profile by gender ................................................... 34
Figure 4.1.2 Survey participants profile by nationality ............................................. 35
Figure 4.1.3 Survey participants profile by education level ...................................... 35
Figure 4.1.4 Survey participants profile by occupation ............................................. 36
Figure 4.1.5 Survey participants profile by income status ........................................ 37
Figure 4.1.6 Survey participants profile by flight frequency ..................................... 37
Figure 4.1.7 Survey participants profile by airlines .................................................. 38

x
CHAPTER 1

INTRODUCTION

This chapter focuses on the importance of the chosen subject and its different
aspects that are to be highlighted later on as the thesis proceeds. The area that will be
investigated is related to low-cost airlines, marketing mix, service quality, customer
satisfaction and customer loyalty. The background of the problem why this specific
subject has been chosen for the research study, Furthermore, the research problem and
the purpose with this study will also be presented in this chapter.
1.1 Research Background
1.2 Problem Statement
1.3 Research Objectives
1.4 Research Questions
1.5 Expected Benefits
1.6 Scope of Research
1.7 Operation Definition