IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v80y2017icp188-196.html
   My bibliography  Save this article

An investigation of customer satisfaction with low-cost and full-service airline companies

Author

Listed:
  • Kos Koklic, Mateja
  • Kukar-Kinney, Monika
  • Vegelj, Spela

Abstract

Using a survey of 382 passengers, this research examines customer satisfaction and its antecedents and consequences in the context of the airline industry. The relationships among airline tangibles, quality of personnel, satisfaction with the airline, the intention to repurchase and intention to recommend the airline are examined. The findings indicate that tangibles and personnel quality positively affect satisfaction, and satisfaction positively influences intentions to both repurchase and recommend. The key contribution is to test the moderating effect of the airline type: a low-cost vs. a full-service carrier. The results reveal a significant moderating effect of airline type on two relationships: personnel quality – satisfaction and satisfaction – repurchase intention. Specifically, the positive effect of quality of personnel on satisfaction is weaker for the low-cost versus full-service airline, while the positive effect of satisfaction on repurchase intent is stronger for the low-cost airline. The study also discusses implications for airline carriers.

Suggested Citation

  • Kos Koklic, Mateja & Kukar-Kinney, Monika & Vegelj, Spela, 2017. "An investigation of customer satisfaction with low-cost and full-service airline companies," Journal of Business Research, Elsevier, vol. 80(C), pages 188-196.
    • Handle: RePEc:eee:jbrese:v:80:y:2017:i:c:p:188-196
    DOI: 10.1016/j.jbusres.2017.05.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296317301613
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2017.05.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Huanzhang & Kim, Kyung Hoon & Ko, Eunju & Liu, Honglei, 2016. "Relationship between service quality and customer equity in traditional markets," Journal of Business Research, Elsevier, vol. 69(9), pages 3827-3834.
    2. Forgas, Santiago & Moliner, Miguel A. & Sánchez, Javier & Palau, Ramon, 2010. "Antecedents of airline passenger loyalty: Low-cost versus traditional airlines," Journal of Air Transport Management, Elsevier, vol. 16(4), pages 229-233.
    3. Kim, Yu Kyoung & Lee, Hyung Ryong, 2011. "Customer satisfaction using low cost carriers," Tourism Management, Elsevier, vol. 32(2), pages 235-243.
    4. Walsh, Gianfranco & Bartikowski, Boris, 2013. "Exploring corporate ability and social responsibility associations as antecedents of customer satisfaction cross-culturally," Journal of Business Research, Elsevier, vol. 66(8), pages 989-995.
    5. Rajaguru, Rajesh, 2016. "Role of value for money and service quality on behavioural intention: A study of full service and low cost airlines," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 114-122.
    6. Bernhardt, Kenneth L. & Donthu, Naveen & Kennett, Pamela A., 2000. "A Longitudinal Analysis of Satisfaction and Profitability," Journal of Business Research, Elsevier, vol. 47(2), pages 161-171, February.
    7. Franck Biétry & John P. J.P Meyer & Jordane Creusier & Alexandre J. S. Morin, 2016. "Multiple-Group Analysis of Similarity in Latent Profile Solutions," Post-Print hal-01884085, HAL.
    8. Martínez-Garcia, Esther & Ferrer-Rosell, Berta & Coenders, GermÃ, 2012. "Profile of business and leisure travelers on low cost carriers in Europe," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 12-14.
    9. Chiou, Yu-Chiun & Chen, Yen-Heng, 2010. "Factors influencing the intentions of passengers regarding full service and low cost carriers: A note," Journal of Air Transport Management, Elsevier, vol. 16(4), pages 226-228.
    10. Stathopoulou, Anastasia & Balabanis, George, 2016. "The effects of loyalty programs on customer satisfaction, trust, and loyalty toward high- and low-end fashion retailers," Journal of Business Research, Elsevier, vol. 69(12), pages 5801-5808.
    11. Su, Lujun & Swanson, Scott R. & Chinchanachokchai, Sydney & Hsu, Maxwell K. & Chen, Xiaohong, 2016. "Reputation and intentions: The role of satisfaction, identification, and commitment," Journal of Business Research, Elsevier, vol. 69(9), pages 3261-3269.
    12. Dolnicar, Sara & Grabler, Klaus & Grün, Bettina & Kulnig, Anna, 2011. "Key drivers of airline loyalty," Tourism Management, Elsevier, vol. 32(5), pages 1020-1026.
    13. Akamavi, Raphaël K. & Mohamed, Elsayed & Pellmann, Katharina & Xu, Yue, 2015. "Key determinants of passenger loyalty in the low-cost airline business," Tourism Management, Elsevier, vol. 46(C), pages 528-545.
    14. Alexandre J.S. Morin & John Meyer & Jordane Creusier & Franck Biétry, 2016. "Multiple-Group Analysis of Similarity in Latent Profile Solutions," Post-Print hal-02934558, HAL.
    15. Gonzalez, Maria Elisa Alen & Comesana, Lorenzo Rodriguez & Brea, Jose Antonio Fraiz, 2007. "Assessing tourist behavioral intentions through perceived service quality and customer satisfaction," Journal of Business Research, Elsevier, vol. 60(2), pages 153-160, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lee, C.K.M. & Ng, K.K.H. & Chan, Hing Kai & Choy, K.L. & Tai, W.C. & Choi, L.S., 2018. "A multi-group analysis of social media engagement and loyalty constructs between full-service and low-cost carriers in Hong Kong," Journal of Air Transport Management, Elsevier, vol. 73(C), pages 46-57.
    2. Dissakoon Chonsalasin & Sajjakaj Jomnonkwao & Vatanavongs Ratanavaraha, 2020. "Key Determinants of Airline Loyalty Modeling in Thailand," Sustainability, MDPI, vol. 12(10), pages 1-17, May.
    3. Truong, Dothang & Pan, Jing Yu & Buaphiban, Thapanat, 2020. "Low cost carriers in Southeast Asia: How does ticket price change the way passengers make their airline selection?," Journal of Air Transport Management, Elsevier, vol. 86(C).
    4. Shen, Chao & Yahya, Yazkhiruni, 2021. "The impact of service quality and price on passengers' loyalty towards low-cost airlines: The Southeast Asia perspective," Journal of Air Transport Management, Elsevier, vol. 91(C).
    5. Ferrer-Rosell, Berta & Coenders, GermÃ, 2017. "Airline type and tourist expenditure: Are full service and low cost carriers converging or diverging?," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 119-125.
    6. Su, Min & Luan, Weixin & Fu, Xiaowen & Yang, Zaili & Zhang, Rui, 2020. "The competition effects of low-cost carriers and high-speed rail on the Chinese aviation market," Transport Policy, Elsevier, vol. 95(C), pages 37-46.
    7. Sezgen, Eren & Mason, Keith J. & Mayer, Robert, 2019. "Voice of airline passenger: A text mining approach to understand customer satisfaction," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 65-74.
    8. García-Fernández, Jerónimo & Gálvez-Ruíz, Pablo & Fernández-Gavira, Jesús & Vélez-Colón, Luisa & Pitts, Brenda & Bernal-García, Ainara, 2018. "The effects of service convenience and perceived quality on perceived value, satisfaction and loyalty in low-cost fitness centers," Sport Management Review, Elsevier, vol. 21(3), pages 250-262.
    9. Avogadro, Nicolò & Malighetti, Paolo & Redondi, Renato & Salanti, Andrea, 2021. "A tale of airline competition: When full-service carriers undercut low-cost carriers fares," Journal of Air Transport Management, Elsevier, vol. 92(C).
    10. Ronal Reddy, 2021. "Reasons for changes of passenger perceptions of low cost carriers identified on social media - a case study on Jetstar Airways - A literature review," Technium Social Sciences Journal, Technium Science, vol. 19(1), pages 520-534, May.
    11. Akamavi, Raphaël K. & Mohamed, Elsayed & Pellmann, Katharina & Xu, Yue, 2015. "Key determinants of passenger loyalty in the low-cost airline business," Tourism Management, Elsevier, vol. 46(C), pages 528-545.
    12. Rajaguru, Rajesh, 2016. "Role of value for money and service quality on behavioural intention: A study of full service and low cost airlines," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 114-122.
    13. Han, Heesup, 2013. "Effects of in-flight ambience and space/function on air travelers' decision to select a low-cost airline," Tourism Management, Elsevier, vol. 37(C), pages 125-135.
    14. Akın AKPUR & Burhanettin ZENGIN, 2019. "The Concept of Low-Cost Airline Transportation: Definition and Meaning," Journal of Tourismology, Istanbul University, Faculty of Economics, vol. 5(1), pages 73-91, June.
    15. Thowayeb H. Hassan & Amany E. Salem, 2021. "Impact of Service Quality of Low-Cost Carriers on Airline Image and Consumers’ Satisfaction and Loyalty during the COVID-19 Outbreak," IJERPH, MDPI, vol. 19(1), pages 1-16, December.
    16. Kuljanin, Jovana & Paskota, Mira & Kalić, Milica, 2018. "Methodological framework for the investigation on the rapidly growing air travel market – An application of multivariate statistical analysis," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 86-91.
    17. Yokomi, Muneki & Wheat, Phill & Mizutani, Jun, 2017. "The impact of low cost carriers on non-aeronautical revenues in airport: An empirical study of UK airports," Journal of Air Transport Management, Elsevier, vol. 64(PA), pages 77-85.
    18. Medina-Muñoz, Diego Ramón & Medina-Muñoz, Rita Dolores & Suárez-Cabrera, Miguel à ngel, 2018. "Determining important attributes for assessing the attractiveness of airlines," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 45-56.
    19. Henderson, Isaac Levi & Tsui, Kan Wai Hong & Ngo, Thanh & Gilbey, Andrew & Avis, Mark, 2019. "Airline brand choice in a duopolistic market: The case of New Zealand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 147-163.
    20. Kattreeya Chanpariyavatevong & Warit Wipulanusat & Thanapong Champahom & Sajjakaj Jomnonkwao & Dissakoon Chonsalasin & Vatanavongs Ratanavaraha, 2021. "Predicting Airline Customer Loyalty by Integrating Structural Equation Modeling and Bayesian Networks," Sustainability, MDPI, vol. 13(13), pages 1-21, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:80:y:2017:i:c:p:188-196. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.