Impact of Low Cost Airlines on Consumer Behavior

Running head: IMPACT OF LOW COST AIRLINES ON CONSUMER BEHAVIOR
Impact of Low Cost Airlines on Consumer Behavior
Name of the Student
Name of the University
Author Note

IMPACT OF LOW COST AIRLINES ON CONSUMER BEHAVIOR1
Table of Contents
1. Introduction.........................................................................................................................3
1.1. Identification of Topic/Research Area........................................................................3
1.2. Rationale for the Research...........................................................................................3
1.3. Research Objectives....................................................................................................4
1.4. Research Questions.....................................................................................................4
2. Literature Review...............................................................................................................5
2.1. Consumer Commitment and Loyalty with regard to Low Cost Airlines Services......5
2.2. Customer Satisfaction, Behavioral Intentions and Low Cost Airlines........................6
2.3. Financial Dynamics of Low Cost Airlines..................................................................8
2.4. De-regulation, Regulation and Service Branding and its Impact on Low Cost Airline
Services..................................................................................................................................9
3. Methodology.....................................................................................................................10
3.1. Research Methods.....................................................................................................10
3.2. Research Population..................................................................................................11
3.3. Sampling Techniques................................................................................................11
3.4. Sample Size...............................................................................................................11
3.5. Other Research Methods...........................................................................................12
3.6. Ethical Considerations...............................................................................................12
References................................................................................................................................14

IMPACT OF LOW COST AIRLINES ON CONSUMER BEHAVIOR2

IMPACT OF LOW COST AIRLINES ON CONSUMER BEHAVIOR3
1. Introduction
1.1. Identification of Topic/Research Area
The aviation industry worldwide has witnessed an influx of low cost carriers or airline
companies in recent times. This has been facilitated primarily by government de-regulation in
different parts of the world, especially in the South and Southeast Asian Nations such as
India, Singapore and Thailand, which have seen the emergence of low cost airline companies
like Go Air, Asia and Malindo Air.1 The spurt in the growth of low cost airline companies in
both the Global North as well as in the Global South has contributed to a significant change
in consumer behavior.2 More and more people, especially those who were previously inclined
towards train travel are now making extensive use of low cost airline services to meet their
travel requirements.3 This assignment prepares a research proposal that aims to explore the
significant relationship between low cost airlines and international consumer behavior
with special reference to frequent travelers from India to the United Kingdom.
1.2. Rationale for the Research
Existing literature on the subject of low cost airlines and consumer behavior, points out
that the moderate price of air tickets serves as the main trigger for travelers to opt for low cost
airline services in large numbers. It also mentions the contributions that have made by low
cost airline companies to the present day rise in international tourism. Yet this literature
makes little or no mention of how low cost airlines have contributed to a spurt in the
1 Álvarez-Díaz, M., González-Gómez, M. and Otero-Giráldez, M.S., 2019. Low cost airlines and international
tourism demand. The case of Porto's airport in the northwest of the Iberian Peninsula. Journal of Air Transport
Management, 79, p.101689.
2 Khan, N.T., Jung, G., Kim, J. and Kim, Y.B., 2019. Evolving competition between low-cost carriers and full-
service carriers: The case of South Korea. Journal of Transport Geography, 74, pp.1-9.
3 Julius, d.n. and Jatmika, d., 2019. The role of service quality on loyalty among low cost carrier consumer.
Psibernetika, 12(1).