TA Study of Low-Cost Carriers Service The impact is on passenger satisfaction for cabin service - Benchmark to Hanoi Ho Chi Minh City

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1 TA Study of Low-Cost Carriers Service The impact is on passenger satisfaction for cabin - enchmark to Hanoi Ho Chi Minh City CHENG-HSIEN SUNG 1, FENG-TSUNG CHENG 2, MEI-FANG WU 3. 1 Ph. D program of Department of Industrial Engineering Systems Management 2 Department of Industrial Engineering Systems Management 3 Department of Industrial Engineering Systems Management Feng Chia University No.22, Aly. 31, Ln. 1111, Sec. 3, Chongde Rd., eitun Dist., Taichung City 406 TAIWAN samsung123.tw@yahoo.com.tw Abstract: - The low-cost carrier transportation market is known as the other options for the aviation passenger in worldwide. More than one airline provides low-cost carrier transportation in Asia, most of the airline tries to increase customer satisfactions by improving the performances of the key factors. The purposes of this paper are examining all the possible key factors that will impact the customer satisfaction. The paper uses this case study method that bases on route of Hanoi Ho Chi Minh City in Vietnam. Collects data by five-scale Likert questionnaire analyzes data with ANOVA approach. The results indicate that the top three of the key factors of customer satisfactions are: (1) booking (2) cabin facility (3) cabin personnel s efficiencies. Therefore the low-cost carrier needs to continuously improve these three factors for promoting the competitive advantages for the operational performances. Key-Words: - Low-cost carriers, customer satisfaction, point-to-point, T-test model, ANOVA 1 Introduction The global first fair price aviation (Low Cost Carriers) - the Southwestern Airlines was founded US on The fair price aviation is different with the traditional aviation, the LCC is the passenger most direct feeling, but the passengers should makes the choice between the price of tickets. 2 Characteristic of the Low Cost Carriers Airline's should include: quality, flies safety record, flight delay rate, flight time coordination, amount of frequency, booking conveniences, ticketing the place multi-dimensional, the ticket price [8]. The LCC need fast ground duty work, inexpensive ling fast boarding registration flow the convenience of airport interline traffic system, it is the difference namely lies in fast the low expense. [1,2,4,7] The route is around 120 minutes or 500 miles in flies straight belongs to the point-to-point short distance route. The LCC have a perfect ground duty work system after letting the airplane ling [3], may in the quickly time, completes the passengers to arrive downtown. Characteristic of brief minute below fair price aviation by spot [4,5,6]: 1. Ticket price: The ticket price is low 2. Route: Point-to-point route 3. Flight status: Crowded fast 4. Class: Economy class cabin 5. Sale: Network direct sale 6. Meal: Does not provide 7. Check in: Self- check in 3 Research Method To establish its individual basic document individual essential factor: ooking, counter, baggage, on board facility, exception hling, routine which feels makes the general statistical examination,. This article takes the questionnaire survey as the main tools; using Likert the five criteria questionnaire divides into three parts divides (1) the passenger habit (2) the Airline to serve essential factor satisfaction generally (3) individual material. ISN:

2 And the analysis with SPSS 15.1 for the Windows for the tool uses the statistical method to include: the descriptive statistical analysis, the factor analysis, the T-test analysis, the ANOVA. 4 Material analysis 4.1 Questionnaire return This research of questionnaire is according to passenger at the Hanoi Airport, picks the rom sampling method, the questionnaire provides on April 25 to May Around altogether sends out 200 questionnaires, return 165 questionnaire, the recycling is 82.5%; Rejects invalid 15 questionnaire, there is effective 150 questionnaire; the effective questionnaire is over 90%. 4.2 Statistical analysis Interrogates the volume request in some LCC to passengers, discusses each construction surface variable. Participant basic document analysis: If Table 4-1 gender distribution condition, Table 4-2 age condition distribution, Table 4-3 each month average income distributed condition. Table 4-1 Distribution of Gender Gender Male Female Number Table 4-2 Age Condition Distribution Age Under age aged aged aged aged Up 61 aged Number Table4-3 Average Income (U.S dollars/year) Average income Under 2,000 4,000 6,000 UP 2,000 ~ ~ ~ 8,000 3,999 5,999 7,999 Number Passenger habit analysis: If Table 4-4 purchase motivation research, Table 4-5 like the Airline analyzing, Table 4-6 to travel by the frequency analysis, Table 4-7 payment object analysis, Table 4-8 where to purchase analysis, Table 4-9 return to take again analysis. Table 4-4 Purchase Motivation Purchase usiness Travel Visit Other motivation Number Table 4-5 Airline Analysing Airline analyzing Tradition LLC Number Table 4-6 Travels by the Frequency Frequen cy 1-12 mouths 1-2 years Up 2 years Never Number Table 4-7 Payment Object Payment Self Company Part burden Other Number Table4-8 Where to Purchase Where to purchase Subsidiary company Internet Counter Other Number Table4-9 Return to Take Again Return to Take Again Yes No Number Cronbach s α In order to underst whether the questionnaire have the Cronbach's α coefficient, examines various variables the internal uniformity. When α value is higher, indicated that in the questionnaire of result various projects hasten consistently. Fifth this research loudly asked that Cronbach of construction surface α is bigger than 0.8, surpasses the suggestion value to be bigger than 0.7, has the good ISN:

3 uniformity. Its result is in Table Therefore, this research institute used the questionnaire the internal uniformity to be possible saying that was quite good. Table 4-10 Cronbach s α Surface ooking Counter baggage Ticketing Cabin Passenger satisfaction Cronbach s α Passenger satisfaction The data result which by the questionnaire survey participant regarding this LCC 21 factors 5 overall of satisfaction performance elect the input statistics computation program estimates the overall degree of satisfaction. y the descriptive statistics, extracts each essential factor the mean value the reference of confidence interval, to understood why the passenger to quality of satisfaction, of confidence interval the degree of satisfaction, can extract by the below formula: S ( ) ( ) S X t0.025 n 1, X+ t n n 1 n X :Mean value of each quality factor n :Integer We discovered that the degree of satisfaction somewhat low project includes: aggage (2.78); Meal (2.57), as well as the entertainment serves (2.97) like Table 4-11.The passenger degree of satisfaction high part includes: ooking (3.57), cabin facility personnel s unkindness (3.56), cabin personnel efficiency (3.62) like Table This appears, even if in the fair price aviation, staff's attitude still took the project for this company, this is all industries carries out the criterion. 4.5 T test Single factor changeability analysis T examination analyses gender (male/female) regarding Airline, its P (<0.05) the value whether to have the significance difference,. Category variable (male/female) when two kinds, uses the T examination, if the significance P value is smaller than 0.05 like table 4-12, then the expression has the obvious different opinion to this construction surface: Table 4-11 Passenger Serves the Quality of Satisfaction Analysis to the LCC. Essential factor variable n =150 ooking ooking 3.57 Counter baggage Cabin aggage 2.78 Personnel unkindness Mean value X 3.56 Efficiency 3.62 Meal 2.57 Entertainment 2.97 Table 4-12 Gender Variables to of Statistical Analysis Passenger Degree of Satisfaction Essential factor ooking Counter baggage Cabin Variable ooking informati on Gende r Male Female P n=95 n= oarding Fly safety Provides the related information by the booking, its statistics examine the P value are 0.021*, demonstrated that factor male female ISN:

4 has the different opinion, the feminine mean value is 3.07, is average of satisfaction 3.28 lowly compared to the male, indicated that the female compares the male regarding this of satisfaction not to be unsatisfied. 2. The waiting room, personnel s board craft the guidance: it examines the P value is 0.034, says by the average of satisfaction, the feminine mean value is 3.32, compared to the masculine average of satisfaction 3.54 low, indicated that the female compares the male regarding this of satisfaction not to be unsatisfied. 3. Flight safety: Its P value is 0.046*, demonstrated that the feminine passenger 3.36 pair of LCC 'the flight safety' compares the masculine passenger 3.58 not to have the confidence, the LCC should aim at various aspects like to lead, the flight failure rate, ability to seek improvement. 4.6 ANOVA analysis ANOVA analysis: y variable category three kinds, when uses the ANOVA single factor variable analysis, if the P value is smaller than 0.05 expressions has the significance difference. Has the significance different feeling from Table 4-13 demonstration age level regarding the baggage (the P value 0.038) Table4-13 ANOVA analysis Essentia l factor Counter baggage Ticketin g Varia ble Servic e Staff Effici ency aged Occup ation Inco me educat ion P P P P Conclusion 1. Variable analyzes on various items, baggage (2.78); Meal (2.57) as well as the entertainment serves (2.97) so on three items lowly, possibly must strengthen in the attitude, meal entertainment facility's choice or provides or not must further consider. 2. The customer of satisfaction high part includes: ooking (3.57), cabin facility personnel s unkindness (3.56), cabin personnel efficiency (3.62), but other serve the degree of satisfaction score not to be also low related. This appears, even if in the fair price aviation, staff's attitude still took the project for this company, this is also all industries carries out the jade tablet nickel. 3. The ANOVA variable analysis aspect, in view of the age, the occupation, the month income the education. The analysis discovered that the age level has the significance different feeling regarding the baggage ; but the different occupation has the especially profound feeling regarding the ticket clerk personnel's efficiency. The results of this study include: (1) expectancy is positively related to perceived performance is negatively related to disconfirmation complaint. (2) Perceived performance has a significant positive effect on customer satisfaction, disconfirmation premium. References: [1] arrett, S. D., How Do the Dems for Airport Services Differ between Full- Carriers Low-cost Carriers, Journal of Air Transport Management. 10, 2004, p [2] Fourie, C., Lubbe,., Determinants of Selection of Full- Airlines Andlow-cost Carriers - A Note on usiness Travellers in South Africa, Journal of Air Transport Management. 12, 2006, p [3] Henson, R. K., Understing Internal Consistency Reliability Estimates: A Conceptual Primer on Coefficient Alpha, Measurement Evaluation in Counseling Development, 34(3), 2001, p [4] Hung, Shao-Chih, An Exploratory Analysis of Duration of Adoption Loyalty of Low Cost Carriers: the Case of Taipei-Singapore Passengers, Graduate Institute of Transportation Logistics National Chiayi University Master Thesis, 2007 [5] Klophaus, R., Frequent flyer programs for European low-cost airlines: Prospects, risks implementation guidelines. Journal of Air Transport Management. 11, 2005, p [6] O Connell, J. F., Williams, G., Passengers Perceptions of Low Cost Airlines Full Service Carriers : A Case Study Involving Ryanair, Aer Lingus, Air Asia Malaysia Airlines. Journal of Air Transport Management. 11, 2005, p ISN:

5 [7] Paul, The Invesgation Study of the Service Quality Customer Satisfaction for Taiwan Domestic Airline Industry,I-shou University Master Thesis, 2002 [8] Warnock-Smith, D., Potter, A., An Exploratory Study into Airport Choice Factors for European Low-cost Airlines. Journal of Air Transport Management. 11, 2005, p ISN: