Factors Affecting Consumer Purchase Decisions in Thai Airline Market

This report examines the factors influencing consumer purchase behavior within the Thai airline industry, specifically comparing low-cost carriers (LCCs) and full-service carriers (FSCs). The study explores how consumer decisions are impacted by various elements, including price, service quality, and the overall travel experience. It delves into the decision-making process, analyzing the seven stages consumers go through when choosing between LCCs and FSCs. The research highlights the growth of LCCs in Thailand and their impact on market dynamics, considering cost optimization strategies, consumer needs, and the role of technology in self-service options. The report reviews existing literature to support its findings, focusing on consumer behavior, the influence of tourist packages, and the post-purchase evaluation process. The report also discusses the importance of understanding consumer needs to tailor services effectively and maintain customer loyalty in the competitive airline market.

LITERATURE REVIEW

ABSTRACT
From the following dissertation this can be reviewed that consumer purchases is affected
by various factors. The purchase behaviour of a individual is affected by the price, reliability to
the quality, flight and choice of factors. All these largely contribute to the decision making
process of an person complying with the needs of customers. The consumer will select the
alternatives which most suits his desires and expectation form the travelling experience. In this
respective dissertation appropriate and accurate findings are extracted from research through
developing hypothesis related to the variables of purchase decision of person with respect to
different services LCC and FSC.
This can be abstracted that This particular report is carried out by an individual in order
to abstracted the low cost services of the airline industry has changed to what extent the complete
market scenarios. This leads to development of highly competitive markets in airline industry.
The definition to the low cost carrier can given as the flights which are offering the tickets at
very low rates without offering any traveller products or other services along with this.
This specific project discusses about the various cost optimization can be done through
by airline companies through developing various efficient strategic plans like providing direct
sales of ticket. This reduces the cost incurred in intermediates costs. This helps in faster delivery
of the services to the direct consumer and leads to highly satisfied consumers of company. while
this approach for low cost business model is effective as this shortens the value chain operations
of airline industry also helps in cutting down various cost involved in an lengthy distribution
process.
This assignment brief about the consumer behaviour is affected by many factors which
regulates over the decision of an customer either to make purchase or not. These factors can be
categorised in two sets that readily affects the buying decision of customer. One is internal
aspects of individual that motivates or restricts to person while making purchase of any product
or services. While other include the external factors which are not controllable by individual and
influences their buying decision in marketplace to large extent.
The various abstraction from the study of following report is that the Airport of Thailand
has gone through strategic development in order to bring renovation in its infrastructure in order
to increase the capacity of international airports in the Thailand. This is needed in order yo fulfil
the high demand of traveller as well the transient needs of in-between cargo in domestic areas.

The country is having own large services station, airline servicing establishment, electric parts
manufacture tyres which shown an immense network of travellers and cargo in the Thailand.
This is abstracted from study that in 2003 Thailand launches their first LCC airline
services to the customers. The one two go services of Thai airlines started serving services
between the Bangkok and to other major cities Thailand. This is observed with good remarkable
services of AirAisa and Nok Air airlines in Thailand serving low cost carriers to the customers.
Also Thai Smile and Thai Lion also launches LCC services to the customers by 2013 in
Thailand. The four major airline carriers providing LCC services to approximately 28.24 million
travellers in an year yet.
In this particular chapter, researcher critically analyse the finding through collecting
secondary data and develop an signifiant relationship between variable of research subject matter
with helps of carrying out literature review and supports the findings with result of past
researchers and investigations carried out by other investigator for different purposes. This
particular study helps in concluding to the consumer decisions and behaviour relation with full
services and low cost services in airline industry.
This can be abstracted from the below discussion that the set of packages in tours
products largely influence the buying decision of an person to large extent. The consumer buying
behaviour can be exploited by various airline industry organisation in order to deliver them
different type of services as per the requirements of various customers needs. The people
purchasing FSC services form the airline will be needing an luxurious tourist packages in order
to get an quality experience with the brand services. While the people selecting the other
alternative of LCCs services of airline companies will be needing affordable rage of tourist
products in order to just to accomplish needs of transportation from one place to another. These
LCCs framework involves providing self services over the medium of internet. The major
concern of the marketers and scholars is which brings the customers behaviour to make
purchasing.
In this particular project the various stages of decision development is studies. This
follows an sequences of 7 stages by which an individual goes through making any purchase
decisions. The airline industry of Thailand is at boom phase because of availability of different
type of services like LCC and FSC and the travellers are continuously engaged in making
appropriate purchase decision while analysing the alternatives through implementing 7 stages

framework of decision making process. This is engaged with selection of an best option as per
requirements of their needs and achieving an good post purchase and consumption experience
with Thai airlines.

Table of Contents
ABSTRACT.....................................................................................................................................1
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................4
5. Customer's decision making process..................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES..............................................................................................................................11

Topic: Factors that influences consumer purchase behaviour between the low
cost and full service carrier within the Thai airline industry.
INTRODUCTION
In today's scenario competition is increasing in many folds in airline services. Various
airlines are focusing on providing different types of services to their consumers in order to
accomplish their different needs and desires. Various airlines company are delivering lower cost
services and Full carrier services to their clients as per their capabilities to pay and their different
needs (Liang and Zhang, 2012). Full service carrier is known for the quality services which is
provide to the consumer in order to satisfy their various need while low cost carrier are services
which is developed for economic class traveller who are wanting affordable range of services.
This carries out an comparison between the differences in consumer buying behaviour with
relations to the different kind of services provided in Thailand market like FCSs and LCCs
services in airline industry. This particular research project is developed in order to ascertain the
reasons behind the directing behaviour of more low cost carrier as compared to the full service
carrier by customers. The post purchase behaviour or satisfaction level of customers largely
affects their next purchase with the same brand and same services. The last experience of an
consumer with company helps in converting them a loyal customers for particular services
(Leong and et. al., 2015). The Thai travellers are most preferably making booking for low cost
carrier like Air Asia, NokAir, Thai smile and Thai Lion Air. While full carrier services are
provided by Thai Airways in flights to accomplish all the luxurious needs of customers.
Low cost carriers (LCCs) has accomplished higher popularity in Thai market which are
purchased in order to accomplish exemplary consumer experience and this is then models which
follows the lower prices services in marketplace. While the full carrier services provides a new
direction to the business models and framework which re look over the strategies of airline
companies in order to satisfactory their customers needs more effectively by providing qualities
services. The airline industry are also introduced full carrier services in partnering with the LCCs
or owning the low cost services. This factors which influence the burying behaviour of customer
with relation to different kind of airline services i.e. LCC and FSC can be analysed through
developing an study of 7 stage model. This particular framework analyse the changing behaviour
and perception of consumer while going through various stages of purchase. The seven stages of
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consumer buying behaviour starts with the recognition of needs and wants which is followed by
searching various alternatives and evaluating the different options (Anuwichanont, 2011). Then
purchasing the most appropriate option which is effective in accomplishing all needs of
individual and this is followed by consumers divestment and post purchase behaviours and
satisfaction level and evaluation of post consumption behaviour of customer. The analysis of
finding and results are linked with the various objectives of research project and survey in order
to evaluates and explore various determinant of subject matter which will affects or motivates the
alternative facilities of the airline industry in Thai marketplace.
LITERATURE REVIEW
Customer's decision making process
As stated by Dwyer, Forsyth and Dwyer, (2010), this can be represented that The
customer decision making process is influenced by various factors that have to analysed by the
products and reduce delivering companies in order to deal with changing marketing trend
efficiently to make higher amount of profit. The travellers from Thailand shown an diversified
range of buying behaviour with relation to the different airline services depending upon the
tourist products. As per views of Mun, (2011), it has been stated that Tourists products can be
defined as the set of the products and services that are delivered by the airline companies to their
customers which may be needing in during their travelling time period with company flights.
1 Recognition of need and wants of an customers while making any purchase decision related
with the LCC and FSC services of Thai airline industry
As per views of Liang and Zhang, (2012), it has been stated that Need recognition is the
stage of development of the needs or wants that are to be concluded by making purchase of
specific products and services of company by consumer. This is the stage where an individual
identifies or recognises the want of specific products which is required by the person in his life in
order to accomplish various needs in society. The selection or identification of appropriate needs
can be selected by analysing the current state of person with the desired state of individual in
market. As stated by Lerrthaitrakul and Panjakajornsak, (2014), this can be represented that This
is recognised by direction of some specific gap between the current stage and future achievable
state by making purchase decisions.
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As stated by Lerrthaitrakul and Panjakajornsak, (2014), this can be represented that The
stage of need and want recognition by the individual can be categorised in two different desires.
One is the state of mind where an customer is wanting to make purchase of specific product
instead of that he is not needing product. According to the view of Lerrthaitrakul and
Panjakajornsak, (2014), it has been depicted that While another need can carved through the
recognising the actual state which is followed by motivating individual to make purchase
decision in order to replace the missing object or products.
As per views of Chung and Whang, (2011), it has been stated that The LCCs services of
the airline can be purchased by recognising the basic needs of traveller by an individual in order
to attain dome specific gaols. While the person needing the FSCs services the person have to
accomplish their needs which are not needing to fulfil basic need of travelling. They are
demanding to accomplish additional wants of them through making purcahse decision of Full
services of the airline.
2 Searching various information and alternatives available to the customers in order to
accomplish specific needs wants
According to the view of Lerrthaitrakul and Panjakajornsak, (2014), it has been depicted
that Searching the different alternative is the stage of making decision with the purchasing
behaviour of individual as these alternatives will helps in making efficient buying decision with
relation to the accomplishment of required needs more efficiently. The individual can develop an
intense study of his past experiences, the opinion from the friends, parents and other related
people, get feedbacks from the internet world in order to select the right option of consolidating
his desired needs with the products and services. As stated by Han, Hyun and Kim, (2014), this
can be represented that The individual can get information about the LCC and FSC services from
various resources in order to develop different feasible alternatives to accomplishing all his
wants and needs with the services of Thailand airline companies.
According to the view of Barber, Goodman, and Goh, (2011), it has been depicted that
The individual can process the following 3 procedures in order to collect the information and
identify various reliable option to the needs accomplishment are described. The first step to the
collection of information is identification of available options and alternatives to person. Then
this is followed by analysing the related information of available options in order to study the
alternative feasibility in depth. As per views of Yee Liau and Pei Tan, (2014), it has been stated
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that While the evaluating the best alternative form the collected data in order to accomplished the
expected need and wants from making purchases of specific services. Like for instance an
individual is wanting and luxurious and conformable travelling experiences and having two
option i.e. is LCC and other is FSC. The he will evaluate the options on grounds of various
information and select for best option to fulfil his wants.
3 Evaluating the various options available in marketplace on the grounds of feasibility and
reliability of alternative to accomplish customer's all desires
According to the view of Anuwichanont, (2011), it has been depicted that In next stage
of the searching for alternatives the individual have to select the best alternative for the
individual. The person will evaluates the various options available to him on the grounds of
various aspects like feasibility, reliability, practical implementation and capability of alternative
to accomplish the desired wants and needs. As stated by Leong and et. al., (2015) this can be
represented that The person can select the various best option to the the problems or the want
which have to be attained through making effective purchases. Like for an example an person
wanting to make purchase of affordable range for air tickets then he will evaluate the feasibility
of LCC services along with evaluating the option on basis of reliability to services, safety to the
respective low cost services etc.
4 Selecting most suitable alternative in order to make efficient purchase decision related with
the LCC and FSC services of Thai airline companies
As stated by McKercher, Denizci-Guillet and Ng, (2012), this can be represented that
This is followed by the selection of the various alternative which is most suitable in
accomplishing all the desired needs of individual. The persons make purchases of selected option
in marketplace in order to experiences the products and services of company. This will leads to
practical use of the selected option and entertained by the purchase decision made. As per views
of Horner and Swarbrooke, (2016), it has been stated that The individual wanting the full
services will make purchase of the FSC services of airline and enjoy the travelling with comfort
facilities while travelling. This helps in accomplishing his all needs and provides in happiness
and good experiences with the airline company.
5 Depicts the post purchase behaviour and level of satisfaction of customer after selected
airline service consumption by individual
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As per views of Lin, (2015), it has been stated that The post consumption behaviour helps
in identifying the buying decision of individual involved again with the same services or the
person is needing to switch with the products and services. The past experiences or the
consumption services with products helps in identifying the needs and wants of person with the
products of organisation. According to the view of Campo-Martínez, Garau-Vadell and
Martínez-Ruiz, (2010), it has been depicted that If the person does not experiences good and
satisfied behaviour with the low cost services of airline then he have to switch with the services
on next purchases. Otherwise the individual will go for respective purchases is LCC is able to
accomplish all the desired needs of individual in market of Thailand.
As per views of Narangajavana and et. al., (2014) this can be stated that the people may
respond negatively or positively towards the purchase decision for particular services and
products. Depending upon the competence of airline services to satisfy the needs of consumer
largely contributes in the purchase decision taken by an person. The people react to the LCC and
FSC services as per their requirements of travelling and quality services of airlines in Thai
marketplace.
As depicted by Yee Liau and Pei Tan, 2014 this can be resolved that the literature review
can be defined as the assessing various literatures and researches in order to collect relevant facts
related with the subject matter of research. This provides an authenticated and proven basis to the
investigation. While dissertation is an brander term as compared to the literature reviews.
Dissertation includes analysing the objectives of research on broader scale by collecting both
secondary and primary data and evaluating the findings.
CONCLUSION
From the above dissertation this can be concluded out out that the researcher has
developed an effective approach in order to find out the relationship between the purchase
behaviour and the selection of LCC services or FSC services of airline industry by Thai
travellers. The researcher is developed various tools and techniques of while developing research
methodology for this respective dissertation in order to find out efficient results. The
investigator is following hypothesis approach in order to evaluate the collected data on the
ground of developing significant collection between variables. The researcher collects data form
large sample size involving the candidates belonging to different demographic characteristics
which helps in finding results on large scale evaluation of the variances of subject matter. In this
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matter of subject the investigator evaluates the responses of students, business travellers,
families, regular travellers, firs timers to get effective data that conclude to accurate an relevant
findings for research matter.
In this research, buying behaviour of Thai airline passengers for LCC is reviewed along
with the factors that affects their behaviour. The growth of Thailand's LCC market is tremendous
as they saw around 53% of total passenger traffic and 61% if domestic passenger traffic in 2014.
The markets of Philippines and Thailand are considered as key market for passenger growth. The
middle class population are more demanding for travelling in LCC's market along with few
urban areas. The point which are not covered in detail are the reasons which lead Thai
passengers to choose particular airline, only study related to examining LCC market in Thailand
is determined which discusses about customer satisfaction and not choice of airline. While
conducting this research, littile information related to Thai passenger's choices was found. This
research was conducted to know the LCC passengers choices in Thailand. It was discussed that
why passengers doesn't prefer any other market. Similar researches has been conducted earlier. it
also discusses about potential changes that occurred in the market and whether it is in favour
with customers or not.
It can be concluded from the above discussion in project report that for full service carrier
the business traveller are niche markets as they are more focused about the services they get
during travelling experiences instead of concerning abut the prices. The consumers leads to an
enhanced needs of LCC services in marketplace which is delivered by the various airline
companies like virgin Blue in Australia, Wets jet in Canada, AirAisa airline of Malaysia. These
flights are serving service at low cost through controlling or minimising the expenditures in
comparison with the FSC services. The first airline which offered lower rates of services was
Southwest airline of United states in 1971. As compared to the traditional airlines most of the
low cost flights are more efficient and flexible with their cost structure in marketplace.
The Lower rate of air tickets has revolutionised the whole airline industry. This leads to
attraction of large numbers of customers base towards these services which was not at all
interested in utilising these services because of higher rates of travelling in flights. These goals of
low cost carrier can be accomplished by providing the tickets to final customers over the medium
of internet. Scholars are developing various marketing plan while dealing with these inherent and
external factors that affects the consumer behaviour in commercial environment. There are many
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reasons that brings higher level of competition in full carrier services and low cost services of
airline industry. The low cost services of Thai airlines largely influences the purchases of
customers in market. This model of low processing services to the Thai traveller enable to
enhance the demand in marketplace in many folds.
The scholar are continuously engaged in analysing the various influencing factors that
can be exploited by business models to increases the products sales by attracting large number of
consumers to the company. They are studying the external factors or inherent genesis of an
person that motivates an person to make purchase for specific products and services in order to
accomplish certain wants. Like for instance the stages followed by customers in their buying
decision starts with identification of needs or wants which is influenced by personal and internal
behaviour and perception to large extent terminated with the experiences with the product after
consumption. From the efficient analysis of the seven steps of decision making process an
individual can perfectly identify the demands of FSC and LCC services in Thailand marketplace.
This helps in identifying the trends of buying behaviour of customers with relation to full
services and low cost services of airlines.
The niche markets can de defied with the specific and certain demand of the customer
group. The companies are targeting the niche markets through their diversified and modified
services and products to the consumer in order to accomplish some special wants and needs of
consumers. The niche market is not concerned about the pricing of profits and services they are
only focused abut getting their desired unique products with desired modification in products and
services. The full cost services follows an complex and large cost structure derivative of various
expenses linked with the operation of hub terminals in marketplace.
As per the discussion of above report this can be added in last that traveller belongs to
various business for different commercial meeting are executing expansion plan the individual
are taking benefits of FSC services. FSC airlines are providing VIP facilities, comfort travelling,
beverages, entertainment etc. in order to provide better experiences with company flights and
influence them to make respective buying behaviour with brand services. In comparison to this
the niche market for the LCC services are the people of middle class people who are focused
about their budget of travelling. So, in order to serve their niche market the LCC airlines are
providing various direct sales, alternative extensive routes and lower inventory in order to reduce
various cost to deliver to niche market efficiently.
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This can be extracted as per the survey of Thailand board of Investment (2016), this can
be reviewed that the airline industry in the Thai market has shown an exponential growth dealing
with approximately 100% travellers growth in every 15 years. The industry is growing with high
pitch and making use of various strategies as per to identified the consumer buying behaviour
through providing variety of services. Thailand airline industry is gone through huge
diversification in both domestic as well as internal business development. Thus increase in the
numbers of the travellers can be identified in Asia-pacific are because for promised quality
services of airline companies in marketplace.
The discussion over the factors influencing purchases decision can be ended with the fact
that The factors influences almost the purchase of all products and services of the world. Like for
instance individual culture and values are the inherent and internal factors that influences an
person buying behaviour to large extent. Companies can not control over these factors but can
attract large number of customers by analysing the behaviour of purchasing influences by
inherent factors effectively. While the prices are external factors that contributes largely in
buying of specific products and services by an consumer in the marketplace. The LCC business
framework is the model which provides low cost services to the customers that motivates person
to make purchase decision as this model of LCC services by Thai airlines brings uniformity in
service and having lighter human resource which helps in reducing cost. Scholars have devolved
an framework which can be described through seven stages of decision making process. These
all stage are influenced by different factors at every steps and resultant in some of the certain
findings and consequences that are studied by marketer to develop efficient business models. The
airlines industries is established only to provide an another way to transportation. This respective
sector offer services to the consumer of air transport. But as the world is changing the individual
are availing these services in order to accomplish diverse range of wants and desires. The variant
range of services provided by airline companies helps in dealing with all the wants of customers
and motivating them to be involved in making buying decision as per their requirement of
services.
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