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Airline brand choice in a duopolistic market: The case of New Zealand

Isaac Levi Henderson, Kan Wai Hong Tsui, Thanh Ngo, Andrew Gilbey and Mark Avis

Transportation Research Part A: Policy and Practice, 2019, vol. 121, issue C, 147-163

Abstract: This study examines how consumers choose between airlines for domestic flights within New Zealand, where there are only two major airlines, a full-service carrier (FSC) and a low-cost carrier (LCC). Using semi-structured qualitative interviews, information about 209 participants’ most recent domestic flights is elicited. The authors identify the reason(s) behind why passengers chose their airline (i.e., post-consumption) as well as the important factor(s) in determining which airline they will fly on in the future (i.e., pre-consumption). There are 11 major reasons (post-consumption), and 10 major important factors (pre-consumption). These are associated with gender, age, occupation, citizenship, travel characteristics (frequency, recency and purpose) and whether the flight was for/from international transit. Probit regressions are used to predict airline choice based upon the pre-consumption and post-consumption themes, respectively. The findings suggest that airline managers should focus on market penetration through fundamental airline attributes (price, time and reliability) to grow market share.

Keywords: Brand choice; Airline marketing; Behavioural loyalty; Self-generated validity; Duopolistic markets; Double jeopardy (search for similar items in EconPapers)
Date: 2019
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