Factors Influencing Purchase Intention toward Low-Cost Carriers The Case of Chinese In-bound Passengers to Thailand
Main Article Content
Abstract
During the past ten years, the numbers of Chinese in-bound passengers to Thailand has increased exponentially due to the dramatic growth of Chinese middle-income consumers. Prior research has paid little attention to explaining why and how Chinese tourists choose low-cost carriers. This study fills this gap by exploring the factors that influence purchase intentions of Chinese passengers to Thailand in choosing low-cost carrier services. Specifically, this study examines how brand awareness of the low-cost carrier, perceived quality, perceived value, and brand attitude influence passenger purchase intentions. The responses from 387 Chinese passengers at Don Mueang International Airport in Thailand were analyzed using Structural Equation Modeling. The model fit result reveals that brand awareness, tangible and empathy dimensions of perceived quality, and perceived value have a positive influence on brand attitude, and consequently brand attitude positively influences purchase intention. A result of this study could be guidelines for designing efficient marketing strategies for low-cost carrier service providers to better attract a growing number of outbound Chinese tourist.
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Section
Research Articles
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References
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Fishbein, M., & Ajzen, I. (1977). Belief, attitude, intention, and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.
Ghosh, A. (1990). Retail management. Chicago: Dryden Press.
Gogoi, B. J. (2013). Study of antecedents of purchase intention and its effect on brand loyalty of private label brand of apparel. International Journal of Sales & Marketing Management Research and Development, 3(2), 73-86.
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Kamins, M. A., & Marks, L. J. (1991). The perception of kosher as a third party certification claim in advertising for familiar and unfamiliar brands. Journal of the Academy of Marketing Science, 19(3), 177-185.
Kardes, F. R., Posavac, S. S., & Cronley, M. L. (2004). Consumer inference: A review of processes, bases, and judgment contexts. Journal of Consumer Psychology, 14(3), 230-256.
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. The Journal of Marketing, 57(1), 1-22.
Kim, Y. K., & Lee, H. R. (2011). Customer satisfaction using low cost carriers. Tourism Management, 32(2), 235-243.
Konecnik, M., & Gartner, W. C. (2007). Customer-based brand equity for a destination. Annals of tourism research, 34(2), 400-421.
Leonard, L. N., Cronan, T. P., & Kreie, J. (2004). What influences IT ethical behavior intentions— planned behavior, reasoned action, perceived importance, or individual characteristics?. Information & Management, 42(1), 143-158.
Leonidou, L. C., Leonidou, C. N., & Kvasova, O. (2010). Antecedents and outcomes of consumer environmentally friendly attitudes and behaviour. Journal of Marketing Management, 26(1314), 1319-1344.
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Mitchell, A. A., & Olson, J. C. (1981). Are Product Attribute Beliefs the Only Mediator of Advertising Effects on Brand Attitude?. Journal of Marketing Research, 18(3), 318-332.
Morwitz, V. G., & Schmittlein, D. (1992). Using segmentation to improve sales forecasts based on purchase intent: Which" intenders" actually buy?. Journal of Marketing Research, 29, 391-405.
Nedungadi, P. (1990). Recall and consumer consideration sets: Influencing choice without altering brand evaluations. Journal of Consumer Research, 17(3), 263-276.
O’Connell, J. F., & Williams, G. (2005). Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines. Journal of Air Transport Management, 11(4), 259-272.
Pakdil, F., & Aydın, Ö. (2007). Expectations and perceptions in airline services: An analysis using weighted SERVQUAL scores. Journal of Air Transport Management, 13(4), 229-237.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
Park, J. W., Robertson, R., & Wu, C. L. (2004). The effect of airline service quality on passengers’ behavioural intentions: a Korean case study. Journal of Air Transport Management, 10(6), 435439.
Park, J. W., Robertson, R., Wu, C. L., Yu, M. M., & Fan, C. K. (2006). Modelling the impact of airline service quality and marketing variables on passengers’ future behavioural intentions. Transportation Planning and Technology, 29(5), 359-381.
Philip, G., & Hazlett, S. A. (1997). The measurement of service quality: a new PCP attributes model. International Journal of Quality & Reliability Management, 14(3), 260-286.
Rao, A. R., & Monroe, K. B. (1988). The moderating effect of prior knowledge on cue utilization in product evaluations. Journal of Consumer Research, 15(2), 253-264.
Shimp, T., & Andrews, J. C. (2013). Advertising promotion and other aspects of integrated marketing communications. Cengage Learning.
Swait, J., & Sweeney, J. C. (2000). Perceived value and its impact on choice behavior in a retail setting. Journal of Retailing and Consumer Services, 7(2), 77-88.
Teas, R. K., & Agarwal, S. (2000). The effects of extrinsic product cues on consumers’ perceptions of quality, sacrifice, and value. Journal of the Academy of Marketing Science, 28(2), 278-290.
Whitlark, D. B., Geurts, M. D., & Swenson, M. J. (1993). New product forecasting with a purchase intention survey. Journal of Business Forecasting Methods and Systems, 12(3), 1-18.
Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195-211.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. The Journal of Marketing, 52(3), 2-22.
Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2006). Services Marketing: Integrating Customer Focus Across the Firm (4th ed.). Boston: McGraw-Hill.
Zhu, J. (2013, May 3). Chinese tourists flock to Thailand thanks to hit comedy film. Financial Times. Retrieved from http://blogs.ft.com/beyond-brics/2013/05/03/chinese-tourists-flock-tothailand-thanks-to-hit-comedy-film/
Aaker, D.A., & Jacobson, R. (1994). The financial information content of perceived quality. Journal of Marketing Research, 31, 191-201.
Aaker, D. A., & Keller, K. L. (1990). Consumer evaluation of brand extensions. Journal of Marketing, 54(1), 27-41.
Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior. PrenticeHall: Englewood Cliffs, New Jersey.
Bagozzi, R. P., Tybout, A. M., Craig, C. S., & Sternthal, B. (1979). The construct validity of the tripartite classification of attitudes. Journal of Marketing Research, 16(1), 88-95.
Baldauf, A., Cravens, K.S., & Binder, G. (2003). Performance consequences of brand equity management: evidence from organization in the value chain. Journal of Product & Brand Management, 12(4), 220-236.
Batra, R., Ramaswamy, V., Alden, D.L., Steenkamp, J. & Ramachander, S. (2000). Effects of brand local and nonlocal origin on consumer attitudes in developing countries. Journal of Consumer Psychology, 9(2), 83-95.
Centre for Aviation [CAPA, formerly Centre for Asia-Pacific Aviation]. (2015a). CAPA Aviation Outlook 2015. SE Asia - LCCs still dominate the agenda as flag carriers restructure. CAPA Centre for Aviation. Retrieved from http://centreforaviation.com/analysis/capa-aviation-outlook-2015se-asia---lccs-still- dominate-the- agenda-as-flag-carriers-restructure-209083
Centre for Aviation [CAPA, formerly Centre for Asia-Pacific Aviation]. (2015b). Bangkok Don Mueang becomes world's largest LCC airport, overtaking KLIA, Barcelona & Las Vegas. CAPA Centre for Aviation. Retrieved from http://centreforaviation.com/analysis/bangkok-don-mueangbecomes- worlds-largest-lcc-airport-overtaking-klia-barcelona--las-vegas-236510
Chen, F. Y., & Chang, Y. H. (2005). Examining airline service quality from a process perspective. Journal of Air Transport Management, 11(2), 79-87.
Chen, P. T., & Hu, H. H. (2010). How determinant attributes of service quality influence customerperceived value: an empirical investigation of the Australian coffee outlet industry. International Journal of Contemporary Hospitality Management, 22(4), 535-551.
China-Britain Business Council [CBBC]. (2013). China’s Middle Income Consumers. Retrieved from http://www.cbbc.org/cbbc/media/cbbc_media/KnowledgeLibrary/Reports/Sector%20Profile/ CBBC-China-s-Middle-Income-Consumers.pdf
Cochran, W. G. (2007). Sampling techniques. John Wiley & Sons.
Dichter, A., Saxon, S., Weber, M., & Yu, J. (2014). China’s airlines: Flying higher. Retrieved from http://www.mckinsey.com/industries/travel-transport-and-logistics/our-insights/chinasairlines-flying-higher
Dimofte, C. V., Johansson, J. K., & Ronkainen, I. A. (2008). Cognitive and affective reactions of US consumers to global brands. Journal of International Marketing, 16(4), 113-135.
Dodds, W.B. (1985). An experimental investigation of the effects of price, brand and store information on the subjective evaluation of products (perception, name, quality) (Unpublished doctoral thesis). Virginia Polytechnic Institute and State University, USA.
Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers' product evaluations. Journal of Marketing Research, 307-319.
Fishbein, M., & Ajzen, I. (1977). Belief, attitude, intention, and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.
Ghosh, A. (1990). Retail management. Chicago: Dryden Press.
Gogoi, B. J. (2013). Study of antecedents of purchase intention and its effect on brand loyalty of private label brand of apparel. International Journal of Sales & Marketing Management Research and Development, 3(2), 73-86.
Gross, S., & Schröder, A. (Eds.). (2007). Handbook of low cost airlines: Strategies, business processes and market environment. Berlin: Erich Schmidt Verlag GmbH & Co.
Hooper, P. (2005). The environment for Southeast Asia's new and evolving airlines. Journal of Air Transport Management, 11(5), 335-347.
Jin, B., & Gu Suh, Y. (2005). Integrating effect of consumer perception factors in predicting private brand purchase in a Korean discount store context. Journal of Consumer Marketing, 22(2), 6271.
Johnson, M. D., Herrmann, A., & Huber, F. (2006). The evolution of loyalty intentions. Journal of Marketing, 70(2), 122-132.
Kamins, M. A., & Marks, L. J. (1991). The perception of kosher as a third party certification claim in advertising for familiar and unfamiliar brands. Journal of the Academy of Marketing Science, 19(3), 177-185.
Kardes, F. R., Posavac, S. S., & Cronley, M. L. (2004). Consumer inference: A review of processes, bases, and judgment contexts. Journal of Consumer Psychology, 14(3), 230-256.
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. The Journal of Marketing, 57(1), 1-22.
Kim, Y. K., & Lee, H. R. (2011). Customer satisfaction using low cost carriers. Tourism Management, 32(2), 235-243.
Konecnik, M., & Gartner, W. C. (2007). Customer-based brand equity for a destination. Annals of tourism research, 34(2), 400-421.
Leonard, L. N., Cronan, T. P., & Kreie, J. (2004). What influences IT ethical behavior intentions— planned behavior, reasoned action, perceived importance, or individual characteristics?. Information & Management, 42(1), 143-158.
Leonidou, L. C., Leonidou, C. N., & Kvasova, O. (2010). Antecedents and outcomes of consumer environmentally friendly attitudes and behaviour. Journal of Marketing Management, 26(1314), 1319-1344.
Marsh, L. L., & Li, H. (Eds.). (2015). The Middle Class in Emerging Societies: Consumers, Lifestyles and Markets (Vol. 78). Routledge Research in Cultural and Media Studies.
Mitchell, A. A., & Olson, J. C. (1981). Are Product Attribute Beliefs the Only Mediator of Advertising Effects on Brand Attitude?. Journal of Marketing Research, 18(3), 318-332.
Morwitz, V. G., & Schmittlein, D. (1992). Using segmentation to improve sales forecasts based on purchase intent: Which" intenders" actually buy?. Journal of Marketing Research, 29, 391-405.
Nedungadi, P. (1990). Recall and consumer consideration sets: Influencing choice without altering brand evaluations. Journal of Consumer Research, 17(3), 263-276.
O’Connell, J. F., & Williams, G. (2005). Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines. Journal of Air Transport Management, 11(4), 259-272.
Pakdil, F., & Aydın, Ö. (2007). Expectations and perceptions in airline services: An analysis using weighted SERVQUAL scores. Journal of Air Transport Management, 13(4), 229-237.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
Park, J. W., Robertson, R., & Wu, C. L. (2004). The effect of airline service quality on passengers’ behavioural intentions: a Korean case study. Journal of Air Transport Management, 10(6), 435439.
Park, J. W., Robertson, R., Wu, C. L., Yu, M. M., & Fan, C. K. (2006). Modelling the impact of airline service quality and marketing variables on passengers’ future behavioural intentions. Transportation Planning and Technology, 29(5), 359-381.
Philip, G., & Hazlett, S. A. (1997). The measurement of service quality: a new PCP attributes model. International Journal of Quality & Reliability Management, 14(3), 260-286.
Rao, A. R., & Monroe, K. B. (1988). The moderating effect of prior knowledge on cue utilization in product evaluations. Journal of Consumer Research, 15(2), 253-264.
Shimp, T., & Andrews, J. C. (2013). Advertising promotion and other aspects of integrated marketing communications. Cengage Learning.
Swait, J., & Sweeney, J. C. (2000). Perceived value and its impact on choice behavior in a retail setting. Journal of Retailing and Consumer Services, 7(2), 77-88.
Teas, R. K., & Agarwal, S. (2000). The effects of extrinsic product cues on consumers’ perceptions of quality, sacrifice, and value. Journal of the Academy of Marketing Science, 28(2), 278-290.
Whitlark, D. B., Geurts, M. D., & Swenson, M. J. (1993). New product forecasting with a purchase intention survey. Journal of Business Forecasting Methods and Systems, 12(3), 1-18.
Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195-211.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. The Journal of Marketing, 52(3), 2-22.
Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2006). Services Marketing: Integrating Customer Focus Across the Firm (4th ed.). Boston: McGraw-Hill.
Zhu, J. (2013, May 3). Chinese tourists flock to Thailand thanks to hit comedy film. Financial Times. Retrieved from http://blogs.ft.com/beyond-brics/2013/05/03/chinese-tourists-flock-tothailand-thanks-to-hit-comedy-film/