Title: Comparing the effects of service quality and value-for-money on customer satisfaction, airline image and behavioural intention between full-service and low-cost airlines: evidence from Indonesia

Authors: Ayu Muthia Kusumawardani; Daniel Tumpal H. Aruan

Addresses: Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, Indonesia ' Graduate Program in Management, Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, Indonesia

Abstract: This research examines the effects of value-for-money and service quality on customer satisfaction, airline image, and behavioural intention of full-service and low-cost airline passengers. A total of 229 young passengers departed from an airport in Jakarta, Indonesia, participated in the survey. A variance based Structural Equation Modelling was employed to examine the causal-effect relationships. Results revealed that the behavioural intention of full-service and low-cost airline passengers could not be directly determined from value-for-money and service quality, but they are mediated through the chronological path of customer satisfaction and airline image. Further, for full-service airline passengers, service quality plays an important role to affect behavioural intention, whereas, for low-cost airline passengers, perceived value-for-money is more concerned. Also, the effects of both value-for-money and service quality on airline image were found to be different between these two categories.

Keywords: airline image; behavioural intentions; customer satisfaction; full-service airline; low-cost airline; service quality; value-for-money; service quality; tourism; Indonesia.

DOI: 10.1504/IJTP.2019.100078

International Journal of Tourism Policy, 2019 Vol.9 No.1, pp.27 - 49

Accepted: 03 Mar 2019
Published online: 06 Jun 2019 *

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