The Importance of Service Attributes between Low-cost and Full-service Carrier Customers: A case of Airline Type Hybridisation

Abstract

This study sought to assess if the importance attached by customers to the airline service attributes differed across low-cost and full-service airline models. A Mann-Whitney U Test was used to assess the difference between the two models. However, before subjecting the data to differential tests, an exploratory factor analysis (maximum likelihood) was performed on the fifty-five items of service attributes, reducing them into forty-two items retained into ten latent factors (airline service attributes). The results of the revealed a significant difference in the importance attached to staff competence, courtesy and responsiveness only. Such findings suggest that the positioning of airlines into binary (FSC - LCC) models could be a waste of effort and resources since airlines seem to be converging.

Keywords

• low-cost carrier
• full-service carrier
• airline service attributes
• convergence
• hybridisation