Customer switching behaviour factors analysis in airline industry of low cost carrier and full service carrier

Abstract

This research examines the variables that are essential to influence the customer migration from the segment of the low-cost carrier to the segment of full-service carrier airlines or vice versa by observing at the demographics and the push-pull-mooring factors. This research used the primary data which were collected through closed questionnaires with a 1-5 Likert scale. A sample of this research was 200 respondents; 100 respondents from the low-cost carrier segment and 100 respondent from full-service carrier segment. The research used Analysis of Variance (ANOVA) and Structural Equation Modelling (SEM)-Partial Least Square (PLS) to process the collected data. The results of this research showed that mooring factor is not different for male and female and also for income less than 5,000,000 IDR or more than 5,000,000 IDR. The result of this research also showed that push and pull factors have a positive and significant effect on switching behavior from both segments (low-cost carrier and full-service carrier segment); whereas, mooring factors only have a negative and significant effect on switching behavior of full services carrier. The role of mooring factors as the moderating effect only proved for the relationship between pull factor and switching intention.