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Investigation of Passengers' Intentions to Use High-Speed Rail and Low Dissertations and Theses 7-2017 Investigation of Passengers’ Intentions to Use High-Speed Rail and Low-Cost Carriers in China Jing Yu Pan Follow this and additional works at: https://commons.erau.edu/edt Part of the Management and Operations Commons Scholarly Commons Citation Pan, Jing Yu, "Investigation of Passengers’ Intentions to Use High-Speed Rail and Low-Cost Carriers in China" (2017). Dissertations and Theses. 348. https://commons.erau.edu/edt/348 This Dissertation - Open Access is brought to you for free and open access by Scholarly Commons. It has been accepted for inclusion in Dissertations and Theses by an authorized administrator of Scholarly Commons. For more information, please contact [email protected]. INVESTIGATION OF PASSENGERS’ INTENTIONS TO USE HIGH-SPEED RAIL AND LOW-COST CARRIERS IN CHINA by Jing Yu Pan A Dissertation Submitted to the College of Aviation in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in Aviation Embry-Riddle Aeronautical University Daytona Beach, Florida July 2017 © 2017 Jing Yu Pan All Rights Reserved. ii 07/25/2017 ABSTRACT Researcher: Jing Yu Pan Title: INVESTIGATION OF PASSENGERS’ INTENTIONS TO USE HIGH- SPEED RAIL AND LOW-COST CARRIERS IN CHINA Institution: Embry-Riddle Aeronautical University Degree: Doctor of Philosophy in Aviation Year: 2017 With a large population, China is an ideal market for high-speed rail (HSR) and low-cost carrier (LCC) services. While HSR has gained substantial market share in China over the past decade, LCCs have achieved only limited market penetration. The potential growth of LCCs in China, however, is promising given the growing travel demand and government policy support. As LCCs expand their service in the domestic market, they are likely to become a strong competitor of HSR. The potential competition between LCCs and HSR justifies the research of passengers’ behavioral intentions to use HSR and LCCs in China. This research focused on factors that influenced passengers’ intentions to use HSR and LCCs in China. Based on the extensive literature review, this study adopted the theory of planned behavior (TPB) as the ground theory and developed the expanded TPB models for HSR and LCCs. In addition to the original TPB components, trust, total travel time, price, service quality, access, and frequency were added to the HSR model. For LCCs, the TPB model was extended with the inclusion of price, service quality, uncertainty avoidance, access, frequency, and technology self-efficacy. This research used a survey method to collect data from LCC passengers in Shanghai and Shijiazhuang and from HSR passengers in Beijing and Shanghai. The total iv sample size was 484 for HSR and 596 for LCCs. This study used the structural equation modeling (SEM) method for data analysis. The results indicated that attitudes, subjective norms, price, access, service quality and total travel time were significant determinants of passengers’ intentions to use HSR; while frequency, trust and perceived behavioral control (PBC) were not important factors. Service quality had the strongest impact on passengers’ intentions to use HSR, followed by total travel time. For LCC passengers, attitudes, subjective norms, price, access, technology self-efficacy, service quality, and uncertainty avoidance significantly affected their motivation in using LCCs, while PBC and frequency were found insignificant. Price was the most important factor in passengers’ intentions to use LCCs, followed by service quality. The findings greatly enhance the understanding of passenger motivation in traveling by HSR and LCCs in China. The model comparison yields valuable insights into potential competition between HSR and LCCs in China. Both HSR and LCC passengers were significantly influenced by attitudes, subjective norms, price, access, and service quality in their decisions to use HSR and LCCs. The finding sheds new light into future competition between the two modes in China. v DEDICATION I dedicate this dissertation to my family and all the faculty members at Embry-Riddle Aeronautical University who helped me throughout this eduational journey. vi ACKNOWLEDGEMENTS I would like to express my sincere gratitude to my dissertation committee members - Dr. Steven Hampton, Dr. Franklin Richey, and Dr. Thapanat Buaphiban - for their kind help throughout this process. I would also like to thank Dr. Alan J. Stolzer, Dr. Antonio I. Cortes, and Dr. Mark Friend for their reviews and helpful feedbacks. Particularly, I would like to thank Dr. Dothang Truong, the chair of my dissertation committee, for providing me with excellent professional guidance and academic support. I am very fortunate to have Dr. Truong guiding me through the journey of writing this dissertation. I would like to thank my friends for their help while I undertook this research. My heartful thanks go out to Mr. Zhang Kaijian, my former colleague at IATA and a long-time friend, for our interesting conversations about civil aviation, and for your encouragement throughout the years. Most importantly, I would like to thank my family for the support during this long journey. Many thanks to my father and father-in-law who always encourage me to achieve more. And, I want to give my very special thanks to my husband, Jianfei, and my son, Alan - thank you for believing in me, for standing by me in good times and bad, and for your unconditional love and support, without which the pursuit of this degree would never have been possible. vii TABLE OF CONTENTS Page Signature Page .................................................................................................................. iii Abstract ............................................................................................................................. iv Dedication ......................................................................................................................... vi Acknowledgements .......................................................................................................... vii List of Tables .................................................................................................................. xiii List of Figures .................................................................................................................. xv Chapter I Introduction ................................................................................................ 1 Background of the Study ............................................................... 2 High-Speed Rail (HSR). .................................................... 2 Low-Cost Carriers (LCCs) ................................................. 6 Potential LCC-HSR Competition .................................... 11 Statement of the Problem .............................................................. 14 Purpose Statement ........................................................................ 15 Research Questions ....................................................................... 15 Hypotheses ................................................................................... 16 Significance of the Study ............................................................. 18 Delimitations ................................................................................ 19 Limitations and Assumptions ...................................................... 21 Definition of Terms...................................................................... 24 List of Acronyms ......................................................................... 26 viii Chapter II Review of the Relevant Literature .......................................................... 28 Studies of Passengers’ Use of HSR ............................................. 28 Studies of Passengers’ Use of LCCs ............................................ 33 Ground Theories for the Study ...................................................... 37 Theory of Planned Behavior (TPB) ................................. 39 The Expanded TPB .......................................................... 44 Constructs Influencing Passengers’ Intentions to Use HSR ........ 50 Trust ................................................................................. 51 Price ................................................................................. 53 Total Travel Time ............................................................ 55 Service Quality................................................................. 58 Frequency ......................................................................... 60 Access .............................................................................. 61 Summary of External Factor Selection ............................ 65 Theoretical Framework and Hypotheses (HSR) .......................... 65 Constructs Influencing Passengers’ Intentions to Use LCCs ...... 72 Price ................................................................................. 72 Uncertainty Avoidance (Cultural Influence) ................... 75 Service Quality................................................................. 78 Frequency ......................................................................... 81 Access .............................................................................. 82 Technology Self-Efficacy ................................................ 84 Summary of External Factor Selection ............................ 90 ix Theoretical Framework and Hypotheses (LCCs) ........................ 90 Chapter
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