Role of value for money and service quality on behavioural intention: A study of full service and low cost airlines

Abstract

The study explore low cost and full service airline consumers' perception of value for money and service quality, and its influence on behavioural intention in the perspectives of means-end chain theory and price sensitivity theory. The study also examines the consumer behaviour of compensating service expectations for better price. Structural equation model was used to test the effect of perceived value for money and service quality on customer satisfaction and their behavioural intention. By confirming the low cost airline passengers' sensitiveness towards value for money, the study supports price sensitivity theory. The results support means end chain theory by identifying perceived value for money and service quality as a significant predictor of consumer satisfaction and behavioural intention.