Factors influencing the choice of airlines in users of the service on the route Bangkok – Hong Kong
Factors influencing the choice of airlines in users of the service on the route Bangkok – Hong Kong
Research Aim and Objective
Aim of the Study
The aim of this research is to evaluate the factors that influence the consumer’s choice of airlines for users traveling on the route from Bangkok to Hong Kong (vice
versa), with particular focus given to Thai Airways and Cathay Pacific. In order to evaluate this study, the following factors are considered: Price, Perceived
Behavioral Control, Airline Brand Image, Perceived Service Quality, and Route Availability. Based on the study conducted by Buaphiban (2015), these factors tend to
show a certain level of relationship on the choice of airlines, and therefore it is justifiable to be used in this thesis with the focus on the two brands – Cathay
Pacific and Thai Airways – and the singular route – Bangkok to Hong Kong (vice versa).
Research Questions:
What are the determinants factors that influence the buying intention of users on route from Bangkok to Hong Kong between Cathay Pacific and Thai Airways?
What is the most significant factor that should be focused by Cathay Pacific and Thai Airways?
How can Cathay Pacific and Thai Airways improve their services?
Conceptual Domain and Hypothesis
Figure 1. Conceptual Domain
[Source: Adapted from Buaphiban, 2015; Proussaloglou and Koppelman, 1995; Proussaloglou and Koppelman, 1999; Suzuki, 2004; Hamidi et al., 2013]
The conceptual domain presented here is adapted from Ajzen (1991)’s Theory of Planned behavior, as it involves consumers behaviors being influenced by various factors.
Due to the proven effectiveness of this model, the present thesis has adapted it as a justifiable position in further conducting this research. The following are the
hypothesis that have been catered for the purpose of this study:
H1: Price has a positive relationship with buying intention of users on route Bangkok-Hong Kong.
H2: Route Availability has a positive relationship with buying intention of users on route Bangkok-Hong Kong
H3: Perceived behavioral control has a positive relationship with buying intention of users on route Bangkok-Hong Kong
H4: Airline Brand image has a positive relationship with buying intention of users on route Bangkok-Hong Kong
H5: Perceived Service Quality has a positive relationship with buying intention of users on route Bangkok-Hong Kong.
Key Literature Review: Hypothesis Development
Perceived Price and Sacrifice
Price is considered to be perceived sacrifice, as it is lost in the process of attaining a product or service. Therefore, price as based on several studies (Dolnicar
et al., 2011; Fourie and Lubbe, 2005) have suggested to be an important factor when deciding the choice of airlines, or when deciding for almost anything in the
commercial hemisphere. Moreover, as suggested by O’Connell and Williams (2005), price tends to be a limiting factor that can be evaluated based on the income level of
the consumers that directly and/or indirectly affects the behavior of the consumer in choosing their product/service. As a result, the hypothesis (H1) that price has a
positive relationship with buying intention, means that price plays a significant role in influencing consumer behavior. The influence can be either negative or
positive, with often lower prices demonstrating positive influence and higher prices demonstrating negative influence (Atalik and Ozel, 2007; Buaphiban, 2015; Graham
and Bansal, 2007).
Route Availability
Route availability tends to play an indirect and/or direct role in affecting the consumer’s choice of airline. Considering the fact that unavailable routes are
ultimately going to influence consumers to choose alternative routes, which eventually puts them with limited choice, thereby influencing their buying intention. In
such scenario, Buaphiban (2015) states that consumers who are moved to new limitations due to unavailability of routes often encounter a whole new set of factors that
can influence their buying intention (with some factor remaining the same). The hypothesis (H2) that demonstrates that route availability has a positive relationship
with buying intention, suggests that based on the availability of routes, the number of choices that the consumers have are affected. The more routes that are
available, the more it is likely to affect the buying intention positively as it gives consumers more choices. However, in the context of lower route availability,
consumers will have limited choice and therefore having limiting factors that will influence the buying intention. As suggested by Hess and Polak (2006) availability
of the routes affect the convenience factor for the consumers, and also plays a role in demonstrating how well the airline is meeting the needs of the consumers
(Fourie and Lubbe, 2006; Theis et al., 2006).
Perceived behavioral control
According to Hsu and Lam (2007) and Chen and Wu (2005), perceived behavioral control is how easy it is to implement a certain behavior. It is further defined by
Management Association (2012, p. 160) where perceived behavioral control “reflects a person’s perception of the ease or difficulty to implement behavior”. In order to
implement this into the study, one must consider based on the hypothesis (H3) if the perceived behavior control is high, then there is a positive influence on buying
intention, and if it is low, then there is a negative influence on buying intention.
Airline Brand image
Brand image plays a very important role in affecting consumer’s behavior and ultimately affecting buying intention. The company with a better brand image tends to play
a positive role in influencing (Hypothesis 4) the buying intention, whereas a brand with poor image tend to play a negative role in influencing the buying intention
(Chiam and Soutar, 2009; Bukhari et al., 2012; Zhang, 2011).
Perceived Service Quality
As defined by Kurruzum and Koksal (2010, p. 1310) “perception of quality in service is determined by comparison of customers’ own expectation with the
services given” and therefore it is simply the measure of how well the service is being delivered. The higher the service quality (H5) perception, the more likely it
will influence positive buying behavior and the lower the service quality, the more negative influence it will have on the buying behavior (Parasuraman et al., 1985;
Bahia and Nantel, 2000; Barnes and Cumby, 1995).
Research Gap
All studies that have been conducted to date have considered the purchase intention, buying intention and determinant factors in choosing of aircraft.
However, very few studies have considered two primary brands of choice, Cathay Pacific and Thai Airways. Moreover, not many studies have taken close consideration to
the Bangkok- Hong Kong route, which further specifies the study into a certain group of users within that region. It also provides expert suggests for the companies
that are being studied on what factors they should be focusing most to continue their competitiveness in the market.
Methodology
A quantitative methodology will be conducted in this study with the distribution of close-ended questionnaires to 200 respondents who are travelling or have travelled
with Cathay Pacific or Thai Airways and have been on the route from Hong Kong to Thailand or vice versa. Pre-test will be conducted before sending the questionnaires
and once data is collected SPSS would be utilized to study the hypothesis and evaluate the relationships.
Preliminary Plan
April May June July August Sep.
Thesis structure
Literature Review
Questionnaire development
Pre-test
Questionnaire Distribution and Analysis
Thesis Completion
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