Understanding Malaysia leisure low cost airline passengers behavior: Promotional Price, Perceived Value, Customer Satisfaction and Repurchase Intention

• Main Author: Chan, Jennifer Kim Lian
• Format: Research Report
• Language: English
• Published: Universiti Malaysia Sabah 2012
• Subjects: HE Transportation and Communications; LG Individual institutions - Asia, Africa, Indian Ocean islands, Australia, New Zealand, Pacific islands
• Online Access: https://eprints.ums.edu.my/id/eprint/24979/1/Understanding%20Malaysia%20leisure%20low%20cost%20airline%20passengers%20behavior.pdf; https://eprints.ums.edu.my/id/eprint/24979/
• Institution: Universiti Malaysia Sabah

This research explored price promotion, the meaning of perceived value, customer satisfaction and repurchase intention of Malaysian low cost airlines from the perspectives of their existing domestic customers. The Malaysian low cost airlines have been competing aggressively for passenger load. Frequent price promotional campaigns are launched by the Malaysian low cost airlines to induce forward booking of air tickets to lock-in customers for future sales. Literature indicated that as a market matures, perceived value and customer satisfaction supersedes price in inducing favourable repeat purchase intention. The qualitative research methodology was adopted for this study to explore the effect of continuous price promotion, the multiple meanings of perceived value and the definition of customer satisfaction of Malaysian low cost airlines. Findings of this research revealed that frequent price promotion is not significant in inducing favourable repurchase intention. In addition, perceived functional value in terms of lower price, perceived relative value and perceived "social connectedness" value are crucial in prompting favourable repeat purchase intention of low cost air travel. Another interesting finding of this research is lower airfare is viewed as a perceived benefit and not perceived monetary cost. Customers of Malaysian low cost airlines define customer satisfaction as having low expectations and their dissatisfaction is non durable.