Factors influencing the choice of airlines in users of the service on the route Bangkok – Hong Kong

 

Research Aim and Objective

 

Aim of the Study

 

The aim of this research is to evaluate the factors that influence the consumer’s choice of airlines for users traveling on the route from Bangkok to Hong Kong (vice versa), with particular focus given to Thai Airways and Cathay Pacific. In order to evaluate this study, the following factors are considered: Price, Perceived Behavioral Control, Airline Brand Image, Perceived Service Quality, and Route Availability. Based on the study conducted by Buaphiban (2015), these factors tend to show a certain level of relationship on the choice of airlines, and therefore it is justifiable to be used in this thesis with the focus on the two brands – Cathay Pacific and Thai Airways – and the singular route – Bangkok to Hong Kong (vice versa).

 

Research Questions:

 

• What are the determinants factors that influence the buying intention of users on route from Bangkok to Hong Kong between Cathay Pacific and Thai Airways?
• What is the most significant factor that should be focused by Cathay Pacific and Thai Airways?
• How can Cathay Pacific and Thai Airways improve their services?

 

 

Conceptual Domain and Hypothesis

 

Figure 1. Conceptual Domain

[Source: Adapted from Buaphiban, 2015; Proussaloglou and Koppelman, 1995; Proussaloglou and Koppelman, 1999; Suzuki, 2004; Hamidi et al., 2013]

 

The conceptual domain presented here is adapted from Ajzen (1991)’s Theory of Planned behavior, as it involves consumers behaviors being influenced by various factors. Due to the proven effectiveness of this model, the present thesis has adapted it as a justifiable position in further conducting this research. The following are the hypothesis that have been catered for the purpose of this study:

 

H1: Price has a positive relationship with buying intention of users on route Bangkok-Hong Kong.

 

H2: Route Availability has a positive relationship with buying intention of users on route Bangkok-Hong Kong

 

H3: Perceived behavioral control has a positive relationship with buying intention of users on route Bangkok-Hong Kong

 

H4: Airline Brand image has a positive relationship with buying intention of users on route Bangkok-Hong Kong

 

H5: Perceived Service Quality has a positive relationship with buying intention of users on route Bangkok-Hong Kong.

 

 

Key Literature Review: Hypothesis Development

 

Perceived Price and Sacrifice

 

Price is considered to be perceived sacrifice, as it is lost in the process of attaining a product or service. Therefore, price as based on several studies (Dolnicar et al., 2011; Fourie and Lubbe, 2005) have suggested to be an important factor when deciding the choice of airlines, or when deciding for almost anything in the commercial hemisphere. Moreover, as suggested by O’Connell and Williams (2005), price tends to be a limiting factor that can be evaluated based on the income level of the consumers that directly and/or indirectly affects the behavior of the consumer in choosing their product/service. As a result, the hypothesis (H1) that price has a positive relationship with buying intention, means that price plays a significant role in influencing consumer behavior. The influence can be either negative or positive, with often lower prices demonstrating positive influence and higher prices demonstrating negative influence (Atalik and Ozel, 2007; Buaphiban, 2015; Graham and Bansal, 2007).  

 

 

Route Availability

 

Route availability tends to play an indirect and/or direct role in affecting the consumer’s choice of airline. Considering the fact that unavailable routes are ultimately going to influence consumers to choose alternative routes, which eventually puts them with limited choice, thereby influencing their buying intention. In such scenario, Buaphiban (2015) states that consumers who are moved to new limitations due to unavailability of routes often encounter a whole new set of factors that can influence their buying intention (with some factor remaining the same). The hypothesis (H2) that demonstrates that route availability has a positive relationship with buying intention, suggests that based on the availability of routes, the number of choices that the consumers have are affected. The more routes that are available, the more it is likely to affect the buying intention positively as it gives consumers more choices. However, in the context of lower route availability, consumers will have limited choice and therefore having limiting factors that will influence the buying intention. As suggested by Hess and Polak (2006) availability of the routes affect the convenience factor for the consumers, and also plays a role in demonstrating how well the airline is meeting the needs of the consumers  (Fourie and Lubbe, 2006; Theis et al., 2006).

 

Perceived behavioral control

 

According to Hsu and Lam (2007) and Chen and Wu (2005), perceived behavioral control is how easy it is to implement a certain behavior. It is further defined by Management Association (2012, p. 160) where perceived behavioral control “reflects a person’s perception of the ease or difficulty to implement behavior”. In order to implement this into the study, one must consider based on the hypothesis (H3) if the perceived behavior control is high, then there is a positive influence on buying intention, and if it is low, then there is a negative influence on buying intention.

 

Airline Brand image

 

Brand image plays a very important role in affecting consumer’s behavior and ultimately affecting buying intention. The company with a better brand image tends to play a positive role in influencing (Hypothesis 4) the buying intention, whereas a brand with poor image tend to play a negative role in influencing the buying intention (Chiam and Soutar, 2009; Bukhari et al., 2012; Zhang, 2011).

 

Perceived Service Quality

 

            As defined by Kurruzum and Koksal (2010, p. 1310) “perception of quality in service is determined by comparison of customers’ own expectation with the services given” and therefore it is simply the measure of how well the service is being delivered. The higher the service quality (H5) perception, the more likely it will influence positive buying behavior and the lower the service quality, the more negative influence it will have on the buying behavior (Parasuraman et al., 1985; Bahia and Nantel, 2000; Barnes and Cumby, 1995).

 

Research Gap

 

            All studies that have been conducted to date have considered the purchase intention, buying intention and determinant factors in choosing of aircraft. However, very few studies have considered two primary brands of choice, Cathay Pacific and Thai Airways. Moreover, not many studies have taken close consideration to the Bangkok- Hong Kong route, which further specifies the study into a certain group of users within that region. It also provides expert suggests for the companies that are being studied on what factors they should be focusing most to continue their competitiveness in the market.

 

Methodology

 

A quantitative methodology will be conducted in this study with the distribution of close-ended questionnaires to 200 respondents who are travelling or have travelled with Cathay Pacific or Thai Airways and have been on the route from Hong Kong to Thailand or vice versa. Pre-test will be conducted before sending the questionnaires and once data is collected SPSS would be utilized to study the hypothesis and evaluate the relationships.

 

 

Preliminary Plan

 

 

 	April	May	June	July	August	Sep.
Thesis structure	 	 	 	 	 	 
Literature Review	 	 	 	 	 	 
Questionnaire development	 	 	 	 	 	 
Pre-test	 	 	 	 	 	 
Questionnaire Distribution and Analysis	 	 	 	 	 	 
Thesis Completion	 	 	 	 	 	 

 

 

 

 

 

 

 

References

 

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50, pp. 179-211

 

Atal?k, O., & Ozel, E. (2007). Passenger expectations and factors affecting their choice of low cost carriers: Pegasus Airlines. Proceedings of the Northeast Business and Economics Association, 8, pp. 285-288

 

Bahia K., and Nantel J. 2000, ‘A Reliable and Valid Measurement Scale for the Perceived Service Quality of Banks’, International Journal of Bank Marketing, 18, 84-91.

 

Barnes, J.G. and Cumby, J.A. (1995), “The cost of service: extending the boundaries of accounting systems to enhance customer value”, in Glynn, W. and Barnes, J.G. (Eds), Understanding Services Management, pp. 178-202.

 

Buaphiban, T., (2015). Determinants of Factors that influence Passengers’ airline selection: A study of low cost carriers in Thailand. Embry-Riddle Aeronautical University. Dissertation. Online. Available from: http://commons.erau.edu/cgi/viewcontent.cgi?article=1156&context=edt [last accessed 6^th April 2016]

 

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Theis, G., Adler, T., Clarke, J.P., & Ben-Akiva, M. (2006). Risk aversion to short connections in airline itinerary choice. Transportation Research Record: Journal of the Transportation Research Board, 1951(1), pp. 28-36.

 

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