Service Quality and Customer Satisfaction on Budget Airlines: Kano Model Approach

Abstract

Although low-cost carrier (LCC) airlines do not provide significant service to customer, the demand and market share of LCC is constantly increasing. Services provided by LCC and the quality of their services become a competitive advantage of LCC airlines. The purpose of this research is to identify the factors that are ‘must-be’ dimension after being categorized into five attributes by using Kano Model. 260 responses were collected. The questionnaires include questions about the services factors in the SERVQUAL service model, basic demographic variables and respondents who have taken or not taken the Hong Kong Express before as Hong Kong Express is classified as one significant player of LCC airlines in Hong Kong. The result can give insights to Hong Kong Express to identify their service areas that needed to be improved and paid attention to increase customers’ satisfaction in future.