Open Access Subscription Access
Open Access Subscription Access
An Investigation into the Impact of Low Cost Carriers on Singapore Airlines
This research project investigates the impact of low cost carriers such as Jet Star, Tiger Airways and Air Asia on the demand for services offered by Singapore Airlines (SIA). With increasing number of low cost carriers that promise fast and prompt point-to-point services at lower prices, traditional airline companies such as SIA are competing in a more challenging and competitive business environment. Using the mixed method research approach, the paper finds that SIA consumers have remained loyal to SIA for five important reasons: good customer service, reliability, safety, destination routes and strong brand name. Price remains a winning factor for low cost carriers, suggesting that airline travelers are price sensitive particularly among individuals in the lower age and income groups. The results also show that SIA consumers are responsive to flight duration. SIA consumers who have and have not travelled with low cost carriers express their willingness to switch to low cost airlines for shorter flight duration.
Airlines, Consumer Behavior, Services, Singapore
- Cardozo, R.N. (1964). Customer satisfaction: Laboratory study and marketing in action. Journal of Marketing Research (2): 244–249.
- Chan, D. (2000). The Story of Singapore Airlines and the Singapore Girl. Journal of Management Development, 19(6): 456-472.
- Comm, C.L. and Curtis, E.F. (1993) Should the Airline Industry Market Safety? Journal of Professional Services Marketing, 8(2): 207-214.
- Cubbin, K.A. (2004). Merger madness. Available online http://www.avweb.com/news/atis/181840-1.html (Accessed on 27 August 2013)
- Hempel, D. and Rosenburg, L. (1976) Consumer Satisfaction: A Neglected Link, Advances in Consumer Research, Beverlee Anderson (Ed.) Vol. III, Proceedings of the Association for Consumer Research. Cincinnati: OH.
- Howard, J. and Sheth, J. (1969) The Theory of Buyer Behavior. New York: John Wiley and Sons Inc.
- Kua, J. and Baum, T. (2004) Perspectives on the Development of Low-cost Airlines in South-east Asia. Current Issues in Tourism, 7(3): 262-276.
- Lee, M.J. and Geddie, M.W. (2006) Impact of an Airline Merger on Customer Satisfaction. International Journal of Hospitality and Tourism Administration, 7(3): 47-61
- Middleton, V.T.C. (1994) Marketing in Travel and Tourism. Singapore: Butterworth-Heinemann.
- Oyewole, P. (2001) Consumer's Socio-Demographic Characteristics and Satisfaction with Services in the Airline Industry. Services Marketing Quarterly, 23(2): 61-80
- Oyewole, P., Sankaran, M. and Choudhury, P. (2008) Information Communication Technology and the Marketing of Airline Services in Malaysia: A Survey of Market Participants in the Airline Industry. Services Marketing Quarterly, 29(4): 85-103
- Pender, L. and Baum, T. (2000) Have the frills really left the European airline industry? International Journal of Tourism Research, 2(6): 423-436.
- Peterson, R. A. and Wilson, W.R. (1992) Measuring Customer Satisfaction: Fact and Artifact. Journal of the Academy of Marketing Science, 20 (Winter): 61-71.
- Raquel, S.F. and Angeles, I.B. (2006) Consumer Perception of Value: Literature Review and a New Conceptual Framework. Journal of Customer Satisfaction, Dissatisfaction and Complaining Behaviour, 19:40-58.
- Schiffman, L.G. and Kanuk, L. L. (1997) Consumer Behavior. Singapore: Pearson.
- Wirtz, J., Heracleous, L. and Pangarkar, N. (2009) Flying High in a Competitive Industry: Secrets of the Worlds' Leading Airline. Singapore: McGraw Hill.
- Wirtz, J. and Heracleous, L. (2010) Singapore Airlines' Balancing Act - Asia's Premier Carrier Successfully Executes a Dual Strategy: It Offers World-class Service and is a Cost Leader. Harvard Business Review, 88(7/8): 145-149.
- Wirtz, J. and Johnston, R. (2003) Singapore Airlines: What it Takes to Sustain Service Excellence – A Senior Management Perspective, Managing Service Quality, 13(1): 10-19.
Abstract Views: 819
PDF Views: 0