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Assumption University

the study of word of mouth on Air Asia

By

Group 2 SECTION 405

1. Ms. Xi YangID 5145625
2. Ms. Papatsara T.ID 5214204
3. Mr. Suracha H.ID 5215708
4. Ms. Taweeporn K.ID 5218389
5. Mr.Gearati T.ID 5313140
6. Ms.Xuefei Y.ID 5338415

Submitted to
Asst. Prof. Dr. Nucharee Supatn

A Final Report for MGT 3940: Business Research methods

Martin de Tours School of Management
Assumption University
Bangkok, Thailand
May, 2012

EXECUTIVE SUMMARY

The purpose of this report is to study and understand the relationship of word of mouth of ABAC students on Air Asia. The research objectives are set to measure the degree of independent variables of booking and pricing policy, operation, aircraft quality, and check-in service quality affect the word of mouth of Air Asia as a dependent variable as seen from the proposed conceptual model, studying the relationship between all factors towards the level of word of mouth.

The research was conducted among a sample of 200 ABAC students using questionnaires. Through the research, we found that booking and pricing policy, aircraft quality, and check-in services are perceived highly while operation on the other hand, is not. We can conclude from the research results that word of mouth can be significant predicted by booking and pricing policy, aircraft quality, operation, and check-in services among ABAC students by forty-four percent. Furthermore, booking and pricing policy, aircraft quality, and check-in services are the three out of four factors that affect word of mouth (WOM) towards Air Asia with aircraft quality being the most influential factor. Operation is the only factor that does not affect word of mouth in this case.

The recommendation for Air Asia is to emphasize on maintaining and continuous improvement of its booking and pricing policy, aircraft quality, and check-in services since they affect word of mouth. While its operation is not perceived as high, it also does not affect word of mouth. Therefore it is not necessary for Air Asia to improve its operation to gain word of mouth effect.

TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY1
Table of Contents 2
List of TABLESIV
List of FiguresV

Chapter 1: Introduction
1.1 Background of Study1
1.2 Statement of the Problem2
1.3 Significance of Research2-3
1.4 Objectives of Research3
1.5 Scope of Research3

Chapter 2: Literature Reviews
2.1 Booking and Pricing Policy 4
2.2 Air craft Quality4-6
2.3 Operation6
2.4 Check-in Service Quality7-9
2.5 WOM (Word of Mouth)9-11
2.6 Independent variables11-12

Chapter 3: Research Methodology
3.1 Research Design 13
3.2 Population, Sampling technique, and Sample size 13
3.3 Measurement Tool 14
3.4 Data Collection 15
3.5 Data Analysis Plan 16
3.6 Summary16

Chapter 4: Data Analysis
4.1 Sample Profiles 17-20
4.2 Descriptive Data Analysis 21-25
4.3 Hypotheses Testing 26-36
4.4 Summary 36

Chapter 5: Conclusion and Recommendation
5.1 Conclusion 37
5.2 Limitation and Recommendation 37

APPENDICES 38
Appendix A: Questionnaire 38-41

BIBLIOGRAPHY….. 42

LIST OF TABLES

TABLE Page
3.1 Questionnaire Analyses………………………………………….. 14 3.2 Data Analysis Plan……………………………………………….. 16 4.1Sample Profile I…………………………………………………... 18 4.2Sample Profile II………………………………………………….. 18 4.3Sample Profile III19

4.4Sample Profile IV 19
4.5Sample Profile V20
4.6Frequency Tables21-25
4.7Cross Tabulations25
4.8The result of Hypothesis 126
4.9The result of Hypothesis 2...
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