Consumer Perceived Value of International Networked Services: An Exploratory Study of the Case of Airline Alliance

Abstract

For the past few decades airline alliance has been a talk among the airline industry researchers and practitioners alike. Airline alliances have revolutionalised airline industry and are largely seen as a group of cherry picked culturally diverse international airlines, with an aim to reduce their operating costs and increase their market shares in regions where they can’t freely operate. The significance of multi-lateral airline alliances and the benefits derived by the members that forge an alliance have regularly featured in strategic alliance literature. Researchers have shed light on the strategic alliance’s operations, their revenue management and human resource management. However, with respect to marketing strategies of an airline alliance, to date, researchers have not addressed consumer perceptions of value gained by using the services offered by a multi-lateral airline alliance. Therefore, this paper aims to understand the attributes of consumer perceived value of an airline alliance and the services which influence consumers to form attributes of consumer’s perceived value of an airline alliance.