A Hybrid Method Using Factor Analysis and AHP on Passenger Purchase Decisions: The Case of Domestic Airlines in Turkey

Abstract

This paper investigates factors affecting purchase decisions of domestic airline passengers and their preference priorities. Airline business is substantially dynamic as a service based business. Continuous change in passenger expectations and the increasing number of economic recessions in the world economies are compelling airlines to foresee and to design new services according to the priorities of passengers. In this study, the method uses factor analysis to describe factors affecting purchase decisions and subsequently Analytic Hierarchy Process defines the priorities among the rivals depending on the findings of first part. Output of the model provides us to specify the factors that affect priorities from the passengers’ perspective. Hereby model can help to enhance items according to priorities. The hybrid approach is performed on a sample of 387 domestic passengers in Turkey through online questionnaires. On the other hand findings of the study depend on culture and should be adjusted for other cases. Keywords: