Discussion on price perception and service satisfaction would affect the development of Low Cost Carriers in Hong Kong airline industry
Research Proposal
Topic area: Low Cost Carrier
Discussion on price perception and service satisfaction would affect the development of Low Cost Carriers in Hong Kong airline industry
Introduction
There are four airlines in Hong Kong which are Cathay Pacific, Dragonair, Hong Kong Airline and Hong Kong Express. Cathay Pacific reveals merger-driven consolidation that Dragonair became a member of Cathay Pacific Group in 2006. On the other hand, HaiNan Airline acquired both Hong Kong Airline and Hong Kong Express. Cathay Pacific, Dragonair, Hong Kong Airline are full-service carriers while Hong Kong Express is the only Low Cost Carrier (LCC) in Hong Kong.
As the technology development growth rapidly, people could search various type of information easily, such as the comparison of price, service quality and reputation. Hence, the Hong Kong Express which is the LCC grab a chance to develop a new market in Hong Kong.
For this research proposal, the effect of customer satisfaction affected by the customer perception under the LCCs would be examined. As people are tend to be influenced by the price of the product or services. Sometimes, with a lower price, the customer know that limited service would be provided and therefore, the perception or the expectation of the quality would be relatively lowered.
The customer satisfaction is one of the essential behavioral determinants.
It is interesting that LCCs grow very fast in other country such as China, Singapore and Europe but the development of LCCs is very narrow. After reviewing a few journals, there is little focus on whether the price perception and the service satisfaction are the factors affecting the limited development of LCCs in Hong Kong. Therefore, this research is to found out the thoughts of price perception and service satisfaction in the customer perspective in order to find ways for a better development of LCCs.
Review of Literature
According to Kim & Lee (2009), they had conducted a
Topic area: Low Cost Carrier
Discussion on price perception and service satisfaction would affect the development of Low Cost Carriers in Hong Kong airline industry
Introduction
There are four airlines in Hong Kong which are Cathay Pacific, Dragonair, Hong Kong Airline and Hong Kong Express. Cathay Pacific reveals merger-driven consolidation that Dragonair became a member of Cathay Pacific Group in 2006. On the other hand, HaiNan Airline acquired both Hong Kong Airline and Hong Kong Express. Cathay Pacific, Dragonair, Hong Kong Airline are full-service carriers while Hong Kong Express is the only Low Cost Carrier (LCC) in Hong Kong.
As the technology development growth rapidly, people could search various type of information easily, such as the comparison of price, service quality and reputation. Hence, the Hong Kong Express which is the LCC grab a chance to develop a new market in Hong Kong.
For this research proposal, the effect of customer satisfaction affected by the customer perception under the LCCs would be examined. As people are tend to be influenced by the price of the product or services. Sometimes, with a lower price, the customer know that limited service would be provided and therefore, the perception or the expectation of the quality would be relatively lowered.
The customer satisfaction is one of the essential behavioral determinants.
It is interesting that LCCs grow very fast in other country such as China, Singapore and Europe but the development of LCCs is very narrow. After reviewing a few journals, there is little focus on whether the price perception and the service satisfaction are the factors affecting the limited development of LCCs in Hong Kong. Therefore, this research is to found out the thoughts of price perception and service satisfaction in the customer perspective in order to find ways for a better development of LCCs.
Review of Literature
According to Kim & Lee (2009), they had conducted a