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A Study of Low Cost Carriers in Thailand Dissertations and Theses 4-2015 Determination of Factors That Influence assengers’P Airline Selection: A Study of Low Cost Carriers in Thailand Thapanat Buaphiban Embry-Riddle Aeronautical University - Daytona Beach Follow this and additional works at: https://commons.erau.edu/edt Part of the Management and Operations Commons, and the Tourism and Travel Commons Scholarly Commons Citation Buaphiban, Thapanat, "Determination of Factors That Influence assengers’P Airline Selection: A Study of Low Cost Carriers in Thailand" (2015). Dissertations and Theses. 157. https://commons.erau.edu/edt/157 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]. Determination of Factors That Influence Passengers’ Airline Selection: A Study of Low Cost Carriers in Thailand by Thapanat Buaphiban 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 April 2015 © 2015 Thapanat Buaphiban All Rights Reserved ABSTRACT Researcher: Thapanat Buaphiban Title: Determination of Factors That Influence Passengers’ Airline Selection: A Study of Low Cost Carriers in Thailand Institution: Embry Riddle Aeronautical University Degree: Doctor of Philosophy in Aviation Year: 2015 This research examined the factors that influenced the airline selection of Low Cost Carriers (LCCs) in Thailand. The research was justified based on the rapid growth of LCC travel in Thailand, particularly in domestic and regional travel. There is a relative lack of successful explanation of the choice of LCCs in Thailand, with only a few studies addressing topics like passenger satisfaction and perceptions of service quality. Following an extensive literature review, the author used a theoretical framework based on the Theory of Planned Behavior (TPB) (Ajzen, 1991) in order to explain passenger behavioral intentions. This framework was supplemented by airline operational and marketing factors identified from the literature, including Price, Service Quality, Airline Reputation, Airline Safety, Route Availability and Convenience, and Frequent Flier Programs. A large scaled survey was sent to Thai LCC passengers at major airports in Thailand. The final sample (n = 781) was predominantly working-age, female, highly educated, and with average incomes. In general, they flew frequently (two to three times a year or more). In order to test the relationship among the external factors, TPB factors, behavioral intentions, and actual behavior, Structural Equation Modeling (SEM) was iii conducted. Results showed that Subjective Norms, Perceived Behavioral Control, Airline Reputation, Price, and Service Quality had a positive impact on Behavioral Intentions, while Behavioral Intentions positively influenced Buying Behavior. This research has important implications both in academia and industry. It indicates that LCC passengers are not merely driven by price as concluded by economic studies in LCC selection. Instead, factors like service quality, airline reputation, and social acceptability implied by subjective norms play a significant role in the choice of LCCs over Full Service Carriers (FSCs). Additionally, the results of this research provide LCCs with useful guidance to form appropriate strategies to attract more passengers: protecting price leadership, improving service quality, enhancing public image, and maintaining route diversity. iv DEDICATION I dedicate this dissertation to my belove family (mom, dad, Gammy, and Golf) and dear friends (Mason, Patoo, Jeerasak, Waragorn, and Chanchai) who always support and encourage me. I would also like to dedicate my dissertation to all faculty members, my advisor (Dr.Truong), and classmates who have supported me throughout the process. v vi ACKNOWLEDGEMENTS I would like to thank my committee members for the guidance and encouragement. And I would like to give a special thank to Dr.Truong who is my committee chair. Without his help, this dissertation would have been impossible. vii TABLE OF CONTENTS Page Committee Signature Page ................................................................................................. ii Abstract .............................................................................................................................. iii Dedication ........................................................................................................................... v Acknowledgements ............................................................................................................ vi List of Tables ..................................................................................................................... xi List of Figures ................................................................................................................... xii Chapter I Introduction .............................................................................................. 1 Background of the Study ................................................................ 2 Statement of the Problem ................................................................ 7 Purpose Statement ........................................................................... 8 Research Question .......................................................................... 8 Significance of the Study .............................................................. 10 Delimitations ................................................................................. 11 Limitations and Assumptions ....................................................... 12 Definition of Terms ....................................................................... 13 List of Acronyms .......................................................................... 14 Chapter II Review of the Relevant Literature .......................................................... 15 Low Cost Carriers ......................................................................... 15 Low Cost Carriers and Airline Selection ...................................... 17 Foundational Theories .................................................................. 20 viii Consumer Decision and Buying Behavior ........................ 21 Theory of Planned Behavior (TPB) .................................. 24 History and Development of the TPB ............................... 25 Purpose of TPB ................................................................. 26 Components and relationships of the TPB ........................ 27 Effectiveness of the TPB .................................................. 29 Application of the TPB to This Study ............................... 29 Previous Studies of TPB ................................................... 30 Airline Choice-Related Studies ............................. 30 Other Related Studies ........................................... 31 Airline Characteristics Influencing Passengers’ Selection ........... 34 Price .................................................................................. 35 Service Quality .................................................................. 38 Airline Reputation ............................................................. 41 Airline Safety .................................................................... 43 Route Availability and Convenience ................................ 45 Frequent Flier Programs ................................................... 46 Summary of Airline Selection Factors .............................. 47 Research Theoretical Framework and Hypotheses ....................... 48 Summary ....................................................................................... 55 Chapter III Methodology ......................................................................................... 57 Research Approach ....................................................................... 57 ix Research Strategy and Design....................................................... 58 Population and Sampling .............................................................. 60 Data Collection ............................................................................. 63 Research Instrument .......................................................... 66 Pilot Test ........................................................................... 66 Data Analysis ................................................................................ 68 Ethical Considerations .................................................................. 71 Limitation of the Method .............................................................. 72 Chapter IV Results ................................................................................................... 74 Respondent Demographics ........................................................... 75 Travel Experience ......................................................................... 80 Descriptive Statistics ..................................................................... 84 Passenger ........................................................................... 84 Airline ............................................................................... 86 Buying Intention and Buying Behavior ............................ 89 Reliability and
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