An investigation of customer satisfaction with low-cost and full-service airline companies

Using a survey of 382 passengers, this research examines customer satisfaction and its antecedents and consequences in the context of the airline industry. The relationships among airline tangibles, quality of personnel, satisfaction with the airline, the intention to repurchase and intention to recommend the airline are examined. The findings indicate that tangibles and personnel quality positively affect satisfaction, and satisfaction positively influences intentions to both repurchase and recommend. The key contribution is to test the moderating effect of the airline type: a low-cost vs. a full-service carrier. The results reveal a significant moderating effect of airline type on two relationships: personnel quality - satisfaction and satisfaction - repurchase intention. Specifically, the positive effect of quality of personnel on satisfaction is weaker for the low-cost versus full-service airline, while the positive effect of satisfaction on repurchase intent is stronger for the low-cost airline. The study also discusses implications for airline carriers.