marketing research course national chiao tung university
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The Opportunity for Low Cost Carrier in Taiwan: Analysis of Taiwan Market towards Low Cost Carrier Characteristics Papers. By: Hendrik Li IIM / 9637533. Marketing Research Course National Chiao Tung University. Research Background. The growing of LCC in the airline industry around the world - PowerPoint PPT PresentationTRANSCRIPT
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Marketing Research CourseMarketing Research Course
National Chiao Tung UniversityNational Chiao Tung University
By:By:Hendrik LiHendrik LiIIM / 9637533IIM / 9637533By:By:Hendrik LiHendrik LiIIM / 9637533IIM / 9637533
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Research BackgroundResearch BackgroundThe growing of LCC in the airline industry around the worldRight now Taiwan doesn’t have LCC airlineTaiwan market’s characteristics VS LCC’s characteristics
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Research HypothesesResearch Hypotheses
H1. Price of LCC affect the Taiwan market to choose LCCH2. Promotion of LCC affects the Taiwan market to choose LCCH3. Service of LCC affects the Taiwan
market to choose LCCH4. Quality of LCC affects the Taiwan
market to choose LCC
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Research ModelResearch Model
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Methods and LimitationsMethods and Limitations
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Literature ReviewLiterature Review
Definition of LCCairline that offers generally low fares in exchange for eliminating many traditional passenger servicesHistory of LCCPacific Southwest Airlines in the United States, which
pioneered the concept in 1949
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Literature ReviewLiterature ReviewFeatures Low Cost Carriers Traditional Airlines
Brand One brand: low fare Brand extensions: fare + service
Fares Simplified: fare structure Complex fare: structure + yield management
Distribution Online and direct booking Online, direct, travel agent
Check-in Ticketless Ticketless, IATA ticket contract
Airports Secondary (mostly) Primary
Connections Point-to-point Interlining, code share, global alliances
Class segmentation One class (high density) Two class (dilution of seating capacity)
In flight Pay for amenities Complementary extras
Aircraft utilization Very high Medium to high: union contracts
Turnaround time 25 min turnarounds Low turnaround: congestion/labor
Product One product: low fare Multiple integrated products
Ancillary revenue Advertising, on-board sales Focus on the primary products
Aircraft Single type: commonality Multiple types: scheduling complexities
Seating Small pitch, no assignment Generous pitch, offers seat assignment
Customer service Generally under performs Full service, offers reliabilityOperational activities Focus on core (flying) Extensions: e.g., maintenance, cargo
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Data Result & AnalysisData Result & Analysis
Price 1 2 3 4 51 I always try to find the lowest price of an airplane ticket 0 3 10 15 172 I buy an airplane ticket when it is on a promotion price 2 9 11 17 63 Online payment make it easier to buy an airplane ticket 1 5 13 14 12
Promotion4 I don’t mind receiving internet advertisement about airline's promotion 2 11 10 19 35 Information that I heard make me choose an airline 0 1 13 25 66 Image of the airline is not important for me 10 19 4 8 4
Service7 It's okay for me to have no food and beverages in the airplane 14 16 4 10 18 Seat number in the airplane is not important for me 5 12 11 13 49 Entertainment in the airplane (ex: TV) is not important for me 11 22 3 6 3
Quality10 I choose an airline that have ON TIME (punctual) flight schedule 1 2 5 21 1611 I like professional and friendly employees of an airline 1 1 0 23 2012 I concern about my safety and convenience flight 1 1 2 14 27
To answer the following questions, please see the characteristics of LCC in the last part of the questionnaire.
13 I want to use LCC airline 2 4 20 16 314 I have good image about LCC 2 8 29 6 015 I will recommend LCC to the one I know (family, friends, etc) 0 5 28 10 2
Strong Disagree
Strong AgreeDisagree Neutral Agree
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Regression AnalysisRegression AnalysisThis study is using linear regression analysis to verify whether research hypotheses are supported or not supported.
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Regression AnalysisRegression AnalysisAnd Using the enter method, a significant model emerged (F=3.530, p < 0.05, Adjusted R square = .187). Significant variables are shown as
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Hypotheses TestingHypotheses Testing
Finding:Price, promotion and service was not significant predictors (independent variables) to this model (H1, H2 and H3 are not supported)Quality was a significant predictor (independent variables) to this model (H4 supported)
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Research ConclusionResearch ConclusionPrice of LCC didn’t have an influence for the Taiwan market to choose LCC
H1 of hypotheses is not supportedPromotion of LCC didn’t have an influence for the Taiwan market to choose LCC
H2 of hypotheses is not supportedService of LCC didn’t have an influence for the Taiwan market to choose LCC
H3 of hypotheses is not supportedQuality of LCC has an influence for the Taiwan market to choose LCC
H4 of hypotheses is supported
Price of LCC doesn’t affect the Taiwan market to choose LCCPromotion of LCC doesn’t affects the Taiwan market to choose LCCService of LCC doesn’t affects the Taiwan market to choose LCCQuality of LCC affects the Taiwan market to choose LCC
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THANK YOUTHANK YOUand have a nice FLIGHTand have a nice FLIGHT