Research methods

1. Introduction

Through the last twenty years the European airline industry has changed radically. Liberalization and deregulation, commencing in the early ‘90s, broke with the earlier bilateral agreements between the European governments and the restricted number of airlines. The new liberalized market conditions gave birth to a new distinction among the players in the industry being either FSC (Full service carriers) or LCC (Low cost carriers) - which characterizes aviation of today (York Aviation, 2007). Where FSC are focused on delivering wide services offerings and upgrades for customers willing to pay premium, the LCC business is quite the opposite, focusing on price as the key competitive factor.

Research shows that 85% of all leisure passengers buy tickets based on price and only about 15% are loyal to a brand when the price is close to the competitors (Forbes, 2007).

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2. Aims and Objectives

Aim: The present research study measures the level of service quality and customer satisfaction with low cost airlines.

Objectives:

1+2. The first section outlines the general research

3. Methodology: this section elaborates on the scientific approach in relation to service and quality. Qualitative and quantitative techniques will be applied

4. Data analysis::

- Focus group interview

- Self-administered questionnaire (people intercepted)

As indicated above, each of the techniques has its own purpose and will be elaborated in the following section explaining the research design.

5.Conclusions The low cost airlines generally fall short in matching the customers’ expected level of the in-flight service quality The largest gaps are found within on-time departure, competences in unexpected situations, prompt handling of requests/complaints plus cleanliness and functionality of the cabin facilities.

3. Background to Study

According to the means-end paradigm, perceived value is a direct predictor of customer happiness and purchase intent. Perceived value, according to Zeithaml (1988), is a higher-level construct generated from price-based value and quality. Individuals are goal-directed, and they utilize product/service features as means to accomplish desired outcomes, according to means-end theory. Price sensitivity theory can also explain why consumers prefer low-cost and classic full-service airlines.

Price sensitivity is defined as the degree to which price is an essential consideration in the decision-making process of customers. Price-sensitive customers frequently migrate to a lower-cost brand and are willing to sacrifice service standards in exchange for a lower price. While low-cost airlines prioritize money, classic full-service airlines prioritize service quality. Using a means-end paradigm, the study explores low-cost and full-service airline consumers' views of value for money, service quality, and their impact on consumer satisfaction and behavioral intention. The deductive research theory is appropriate as an overall "top-down" method in performing such descriptive studies. It has been attempted to deduce unambiguous findings highlighting the validity of the outcomes as a success criteria by applying applicable theoretical rationales and modified conceptual frameworks.

Literature review

According to Zeithaml (1988), perceived value is the whole benefit gained from products and services. Perceived value is a relative concept that emerged from two important consumer behavior perspectives: utilitarian (value is connected to pricing; Transaction value (also known as perceived value) and psychological perception (emotional elements of consumers in decision making). Perceived value is quantified in utilitarian terms as value for money (Kashyap and bojanic, 2000). The tradeoff between consumer sacrifices (price) and receivables is characterized as value for money (Kashyap and Bojanic, 2000). Ryu et al. (2008) define value for money as the customers' evaluation of what they have received and what they have contributed. It may be said that service quality is a fairly tricky term, and there has been substantial debate in the literature over the last 25 years regarding how to approach this phenomena. Still, the early 1980s saw the formation of two distinct schools of thought: the Scandinavian School, led by Grönroos and Gummesson, and the North American School, led by Zeithaml, Parasuraman, and. Both sides have marketing backgrounds, but one of the most significant variances is the notion of marketing. The North American School defined marketing as the four Ps (people, place, position, and promotion) with a focus on the services marketing-mix, resulting in a rather descriptive definition of service quality, whereas Swedish researchers took a more holistic approach to service marketing with a focus on building relationships.