Latent class models of international air carrier choice
AbstractThis paper uses a market segmentation approach to identify airline passengers' potential segments and preferences toward international air carriers. The modeling approaches consist of the stated preference method and the latent class model. The stated choice experiments were designed based on service attributes in the international airline choice context. Empirical data was collected from airline passengers who have flown from Taipei to Tokyo or from Taipei to Hong Kong. The latent class model accommodating preference heterogeneity outperforms the multinomial logit model as indication of a better approach to analyze airline choice behavior. The latent class model with individual socioeconomic and trip characteristics in segment membership functions also improved model fit relative to the corresponding latent class model without individual characteristics. The values of willingness to pay for service attribute improvements vary across international air routes and segments. Passengers are willing to pay more for better service quality. In order to develop effective marketing and operational strategies for the international air travel market, this study highlights the importance of exploring airline choice behaviors by routes and segments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.
Volume (Year): 46 (2010)
Issue (Month): 2 (March)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Hetrakul, Pratt & Cirillo, Cinzia, 2014. "A latent class choice based model system for railway optimal pricing and seat allocation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 68-83.
- Hurtubia, Ricardo & Nguyen, My Hang & Glerum, Aurélie & Bierlaire, Michel, 2014. "Integrating psychometric indicators in latent class choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 64(C), pages 135-146.
- José Grisolía & Kenneth Willis, 2012. "A latent class model of theatre demand," Journal of Cultural Economics, Springer, vol. 36(2), pages 113-139, May.
- Chiou, Yu-Chiun & Jou, Rong-Chang & Kao, Chu-Yun & Fu, Chiang, 2013. "The adoption behaviours of freeway electronic toll collection: A latent class modelling approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 266-280.
- Wen, Chieh-Hua & Wang, Wei-Chung & Fu, Chiang, 2012. "Latent class nested logit model for analyzing high-speed rail access mode choice," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 545-554.
- Tsai, Ming-Chih & Yang, Chih-Wen & Lee, Hsiao-Ching & Lien, Ching-Wei, 2011. "Segmenting industrial competitive markets: An example from air freight," Journal of Air Transport Management, Elsevier, vol. 17(4), pages 211-214.
- Hetrakul, Pratt & Cirillo, Cinzia, 2013. "Accommodating taste heterogeneity in railway passenger choice models based on internet booking data," Journal of choice modelling, Elsevier, vol. 6(C), pages 1-16.
- Vij, Akshay & Walker, Joan L., 2014. "Preference endogeneity in discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 64(C), pages 90-105.
- Escobari, Diego & Mellado, Cristhian, 2013. "The Choice of Airport, Airline, and Departure Date and Time: Estimating the Demand for Flights," MPRA Paper 47943, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.