Abstract The objective of this study is to examine the impact of service quality by adopting AIRQUAL model and price on passengers' loyalty through the linkage of passengers' satisfaction toward low-cost airlines from the perspective of Southeast Asia. With 200 questionnaires analyzed, the results suggest that service quality and price have a positive significant impact on passenger satisfaction, and as a result lead to passengers’ loyalty. Besides, the findings of this research also confirm the mediating role of customer satisfaction between service quality and loyalty, price and loyalty separately, which implies that customer satisfaction is a vital factor for an LCCs to survive in such a highly competitive aviation market.
Highlights AIRQUAL scale is utilized to assess the impact of service quality on satisfaction. Among the AIRQUAL scale, airline tangibles, empathy and airline image are significantly important for enhancing satisfaction. Both service quality and price are found to have positive impacts on satisfaction, which in return leads to loyally. Findings revealed that the effect of service quality and price on customer loyalty is mediated by customer satisfaction.
The impact of service quality and price on passengers' loyalty towards low-cost airlines: The Southeast Asia perspective
2020-10-16
Article (Journal)
Electronic Resource
English