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An Investigation into Improving Service Quality Distribution and Perceived Value in the Passenger Loyalty of Low-Cost Airlines in Thailand

  • Sirawit PINKUM;Karun KIDRAKARN
    • Journal of Distribution Science
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    • v.21 no.4
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    • pp.21-33
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    • 2023
  • Purpose: To study, analyze, and investigate how to improve the service quality distribution and perceived value of passenger loyalty in low-cost airlines in Thailand. Research Design, data, and methodology: The data was collected from low-cost airline passengers who had used low-cost airlines within Thailand more than twice in the last 12 months. In total, 632 questionnaires were received, representing 97.32%, and in-depth interviews were done using the semi-structured technique. The key informants were either executives or representatives from 4 low-cost airlines operating in Thailand. We utilized structural modeling techniques to examine the data relevant to the investigation. Results: The results show that low-cost airline passengers in Thailand have strong opinions about the perceived value of the passenger loyalty of low-cost airlines within this sector of the Thai air travel industry. The variables were sorted in order of importance and included passenger loyalty, satisfaction, trust, perceived value, and service quality distribution. The relationship between the service quality distribution variables and the significance in relation to passenger loyalty according to low-cost airlines in Thailand showed that service quality distribution had a positive effect on perceived value and that passenger satisfaction has a direct positive effect on passenger loyalty. Conclusions: The 8 QPSTL strategy is successful in terms of service quality distribution and passenger satisfaction, therefore it is an important aspect of low-cost airlines in Thailand.

A Study of Passenger's Safety Perception on Domestic Low-Cost Carriers (국내 저비용 항공사 이용승객의 안전에 관한 인식 연구)

  • Kim, Yoon-Tae;Shin, Chan-Ho
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.15 no.4
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    • pp.53-63
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    • 2007
  • This paper examines the safety perception of passengers on low cost carriers which has made several accidents and incidents at the early stage of their business. The concept of low cost carrier is becoming more important to airline industry in Korea. This study achieves the first selecting attribute among airline service factors on domestic flights and try to indicate that how much the passengers trust in the safety of low cost carriers. It is also sets the comparative safety awareness between low cost carriers and two full service national carriers in domestic market. The safety perception of aircraft type can be a major factor for LCC choice in Korea due to frequent accidents and incidents for last two years. More than 60% of LCC passengers have increasingly considered the safety after recent accidents. The low cost airlines' images of the passengers showed that the first image of the LCC was the fare and the second image was safety. This study indicates that most of the LCC travelers will use the international low cost airlines when LCC extend their destination to adjacent countries. For the accomplishment of the low cost carriers' competitiveness in domestic market, they have to try to get rid of bad image for safety and pay extra attention to find out better services other than the safety and develop other strategies to compete against existing full service carriers.

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The Influence of Low Cost Airline's Flexible Fare Policy on Consumers' Perceptions of Price Fairness (저가항공사의 유동적 요금 전략이 소비자의 가격공정성 지각에 미치는 영향)

  • Hwang, Hee-Joong;Choi, Young-Keun
    • Journal of Distribution Science
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    • v.12 no.10
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    • pp.123-128
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    • 2014
  • Purpose - The purpose of the study is to reexamine the price fairness as practiced by low cost airlines, as a consumer has to experience such inconveniences as inferior airport transportation, extra fees on in-flight meals, and non-negotiable seats, and consumers evaluate such experiences keeping in mind their total costs. This evaluation includes price fairness and allows a reasonable and overall consideration of factors of low cost airlines. It tries to set up a measurement of the indicators consumers' perceptions of price fairness academically as it adapts price fairness to airline services which are renowned for price volatility. Research design, data, and methodology - The research proposes an alternative pricing strategy for the long term profit of low cost airlines after going over conflicts between the traditional theory of consumers' price perception mechanism and flexible fair policy of low cost airlines. It was meaningful when it relates to the early stage of the business, while it enhances the risks relating to the long term survival of low cost airlines. In addition, it is significant as it highlights the negative influences on consumers' perceptions of price fairness, as low cost airlines run on extremely low cost perspectives. Results - The results of the research provide insight into four perspectives, as consumers' perceptions of price fairness are influenced by the frequency and range of price changes and services. The first perspective is that it would lead to positive price evaluation when a low cost airline cuts prices frequently with little changes than one big change. It also would lead to the same result when it comes to necessary services. The second perspective is that one big increase of price would rather undermine the negative aspects of price changes than those of several smaller ones. The third perspective is that additional services would be good to consumers' perceptions of price fairness as compared to discount benefits with respect to the cost. Finally, a low cost airline should consider that consumers will change airlines or defer their flight schedule if the flight fares increase beyond their limits. Conclusions - Low cost airlines should reconsider their pricing policies for services that were provided free earlier. A consumer would not like discount benefits when made to pay for services that were, for long, free of charge. If a low cost airline can provide services with no charge, it should improve volumes if the costs are standardized and, moreover, should consider the charging fees. Alternatively, a consumer can choose between services and fair discount. Low cost airlines are implementing sales promotion strategies, as the competition is more intense than it used to be. In these days, they should regard services over sales promotion, as consumers may prefer to spend money on good premium services. Some differentiation in services could create a good market position for the airlines and, hence, good financial performance.

Market Strategy for Low Cost Carrier of Selection Attributes (저비용항공사 선택 속성에 관한 시장전략)

  • Kim, Ji-Soo;Park, Hye-Yoon;Park, So-Yeon
    • Journal of Distribution Science
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    • v.16 no.3
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    • pp.69-77
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    • 2018
  • Purpose - As more low cost carriers are introduced, the competition between the low cost carriers to become the nation's leading low cost carrier is also being intensified. The purpose of this study is to select various choice attributes for low cost carrier and figure out important factors that customers take into account for low cost carrier selection. The study also involves in establishing the relationship between perceived value, customer satisfaction, and customer behavior Intention, in an effort to identify choice attributes that are important to customers' low cost carrier. Research design, data, and methodology - To examine these research models, samples were collected from 247 peoples who visited In-Cheon international Airport during June, 2017. Results - The results of the study showed that, 'reservation service', 'airport service', 'in-flight service', and 'price' services have a significant effect on the perceived value of the choice attributes. While 'reservation service', 'airport service', 'in-flight service', and 'flight operation service' have a significant effect on the customer satisfaction of the choice attributes, perceived value has a significant effect on customer satisfaction. Perceived value has a significant effect on customer behavior intention. Finally, customer satisfaction has a significant effect on customer behavior intention. Conclusions - Flight operation service has no significant effect on perceived value of the choice attributes of low cost carriers, which indicates that the low cost carriers have not yet been well-established in the flight operation service sector. It seems likely that low cost carrier will be able to gain a competitive advantage over other companies if they expand their routes and improve the convenience of flight connections. In addition, the results show that the price service does not have a significant effect on customer satisfaction of the choice attributes of low cost carriers. From this, we may assume that the airline ticket prices of low cost carriers are already low, and the price cannot be a deciding factor in the competitive advantage of low cost carriers. To achieve higher customer satisfaction of the choice attributes, companies should strengthen the competitiveness of 'reservation service', 'airport service', 'in-flight service', and 'flight operation service'.

Learning Optimal Trajectory Generation for Low-Cost Redundant Manipulator using Deep Deterministic Policy Gradient(DDPG) (저가 Redundant Manipulator의 최적 경로 생성을 위한 Deep Deterministic Policy Gradient(DDPG) 학습)

  • Lee, Seunghyeon;Jin, Seongho;Hwang, Seonghyeon;Lee, Inho
    • The Journal of Korea Robotics Society
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    • v.17 no.1
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    • pp.58-67
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    • 2022
  • In this paper, we propose an approach resolving inaccuracy of the low-cost redundant manipulator workspace with low encoder and low stiffness. When the manipulators are manufactured with low-cost encoders and low-cost links, the robots can run into workspace inaccuracy issues. Furthermore, trajectory generation based on conventional forward/inverse kinematics without taking into account inaccuracy issues will introduce the risk of end-effector fluctuations. Hence, we propose an optimization for the trajectory generation method based on the DDPG (Deep Deterministic Policy Gradient) algorithm for the low-cost redundant manipulators reaching the target position in Euclidean space. We designed the DDPG algorithm minimizing the distance along with the jacobian condition number. The training environment is selected with an error rate of randomly generated joint spaces in a simulator that implemented real-world physics, the test environment is a real robotic experiment and demonstrated our approach.

Study on Choice Attributes for Low-Cost Carriers Using IPA (저가항공사 선택속성 IPA분석 연구)

  • Park, Young Sik
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.21 no.4
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    • pp.112-118
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    • 2013
  • Air travel demand has recently been growing and establishment and operation of low-cost carriers have been increased. Against this backdrop, low-cost carriers need to figure out diversified customer demand for low-cost carriers and ways to maximize marketing efficiency before applying it to the field so that they can attain superiority to large carriers in increased intensified competition. Low-cost carriers need to be differentiated from other carriers for the purpose of improving profits. Toward this end, this study conducted analysis on importance and satisfaction with carrier choice using IPA with regard to low-cost carrier customers. In conclusion, the paper accurately examined advantages and disadvantages of low-cost carriers compared to general carriers based on results of IPA analysis and suggested managerial strategies to enhance competitiveness based on division into four parts including maintenance and enforcement (1st quadrant, Delay compensation, Booking rapidity, Check rapidity, Crew service, refund service, baggage service, punctuality, transit services, airlines images), concentrated improvement (2nd quadrant, price, Convenience of seat), passive administration (3rd quadrant, Boarding service, cabin cleanliness, flight schedule, whether local crew on board, meal service, in-flight entertainment service), and enhanced satisfaction (4th quadrant, duty-free service, Variety of routes), so that practical suggestions could be presented to employees working in the field.

A Comparative Analysis of Business Strategies between Full Service Airlines and Low Cost Carriers in Korea

  • KIM, Byoung-Goo;KIM, Boine
    • The Journal of Industrial Distribution & Business
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    • v.13 no.12
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    • pp.9-22
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    • 2022
  • Purpose: Establishing a competitive advantage in the aviation market is essential as the competition among domestic airlines intensifies. Therefore, this study examined the management strategies of both large domestic airlines and low-cost airlines. Research design, data, and methodology: This study classified domestic airlines into Full Service Airlines (FSA) and Low Cost Carriers (LCC), examined each airline's current status and characteristics, and conducted case analyses of FSA and LCC based on Porter's generic competitive strategy. Results: The analyses determined that LCC primarily implemented a cost-advantage strategy, and FSA implemented a differentiation strategy. However, as competition intensified, FSA pursued cost-advantage strategies while establishing LCC through subsidiaries. There are various specific cost reduction methods, including service simplicity, scalability, high utilization, low landing fees, low-cost unit, and point-to-point flight strategies. Conclusions: LCCs are focusing on cost advantage strategies that reduce costs; however, the FSA also runs special price events that are as good as LCCs and are comparable to LCCs on some routes. Furthermore, LCC has recently expanded its mid- and long-distance routes, making competition for long-distance routes with major airlines unavoidable.

Basic Train of Thoughts for the Construction of Low Cost Scenery Spots

  • Duanmu, Shan
    • Journal of the Korean Institute of Landscape Architecture International Edition
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    • no.1
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    • pp.213-218
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    • 2001
  • To many developing countries like China, the practical way to constant development of city construction is low consuming. The basic methods of low-cunsuming landscape construction: 1) Low building consumption: Decreasing construction quantity. Using low-costing material. Designing low-consuming landscape. Reusing of building material. 2) Low energy consumption: Decreasing water consumption. Consuming and enrichment of earth fertilizer. Decreasing electrical consumption. 3) Low maintenance: Adapting natural material. Using local plants. Special design to decrease maintaining. Because of many reasons, China has not yet adapting Low-consuming Landscape Construction.

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Analysis of physical properties of high-performance concrete using domestic low-cost silica fume (국산 저가형 실리카퓸을 이용한 고성능 콘크리트의 물리적 특성 분석)

  • Kim, Sang Do;Yun, Kyung Ku;Ham, Seung Yeon;Lee, Kyeo Re
    • Journal of Industrial Technology
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    • v.37 no.1
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    • pp.32-36
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    • 2017
  • In this study, as part of a research on the development of economical high-performance concrete with high strength and high quality, the physical properties of high-performance concrete were analyzed by substituting a certain amount of low-cost domestic silica fume exempted from the re-importation type distribution structure of the domestic production and the existing high-priced silica fume distribution structure. Performing tests to identify the physical properties of the fresh and hardened concrete and durability analogy of the concrete which use low-cost domestic silica fume and imported silica fume, the chloride ion penetration resistance test result showed that the strength difference between the low-cost silica fume and the imported silica fume is not big but the strength of the low-cost silica fume was measured higher than the imported silica fume. The chloride ion penetration resistance of all variables was measured as "very low". Since the low-cost domestic silica fume can be used as a high-performance admixture of concrete, the results suggest that it is possible to produce a more economical high-performance concrete.

Bibliometric Network Analysis on Low Cost Carrier Research (저가항공 관련 국내학술지 네트워크 텍스트 분석)

  • Rha, Jin-Sung;Choi, Dong-Hyun
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.23 no.1
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    • pp.14-23
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    • 2015
  • This study applied the network text analysis to reveal the scope and trends of low cost carrier studies. We analyzed low cost carrier research published in Korean journals and news articles. The results showed that there are three clusters in terms of research topics. First dimension consists of articles investigating growth in the low cost carrier industry. The second dimension is associated with service characteristics. The last dimension has strong ties organizational and human resource dimension. We run Krkwic, Krtitle, Netdraw, and Ucinet 6.0 to conduct the network text analysis. This study suggests the direction of low cost carrier research in the future.