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Consumer Value on Unbundling Practices by Full-service Carrier – a Qualitative Study

Wong, Patrick Ho Cheong LU (2018) SMMM20 20181
Department of Service Studies
Abstract
Despite the media outcry whenever a full-service carrier announces its plan to unbundle its flight service and charge some of the service components as add-ons, there is an increasing number of full-service carriers around the globe dropped the full bundling approach in exchange for add-on bundling when selling their flight tickets. At the same time, the market of ancillary revenue continues to grow annually and has been identified as one of the major revenue sources for modern airlines.

Using qualitative approach of semi-structured interviews and netnography, this study aims to gain more in-depth knowledge on consumers’ perception of the unbundling trend. With the aid of an adopted version of Holbrook’s typology of consumer value, this... (More)
Despite the media outcry whenever a full-service carrier announces its plan to unbundle its flight service and charge some of the service components as add-ons, there is an increasing number of full-service carriers around the globe dropped the full bundling approach in exchange for add-on bundling when selling their flight tickets. At the same time, the market of ancillary revenue continues to grow annually and has been identified as one of the major revenue sources for modern airlines.

Using qualitative approach of semi-structured interviews and netnography, this study aims to gain more in-depth knowledge on consumers’ perception of the unbundling trend. With the aid of an adopted version of Holbrook’s typology of consumer value, this study investigates the consumer value behind the consumption of unbundled flight service and its reflection on consumers’ purchase decision. The findings indicate that consumers’ experience, carrier’s implementation and specific situation could influence the consumer value perceived in different dimensions of consumer value, while purchase decision could have been reshaped in terms of price perception, information requirement, perception on ease of booking process, and searching behavior on alternatives. (Less)
Please use this url to cite or link to this publication:
author
Wong, Patrick Ho Cheong LU
supervisor
organization
course
SMMM20 20181
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Unbundling, Add-on bundling, Consumer Value, Netnography, Qualitative study, Full-service Carrier
language
English
id
8952447
date added to LUP
2018-06-27 15:48:44
date last changed
2018-06-27 15:48:44
@misc{8952447,
  abstract     = {{Despite the media outcry whenever a full-service carrier announces its plan to unbundle its flight service and charge some of the service components as add-ons, there is an increasing number of full-service carriers around the globe dropped the full bundling approach in exchange for add-on bundling when selling their flight tickets. At the same time, the market of ancillary revenue continues to grow annually and has been identified as one of the major revenue sources for modern airlines.

Using qualitative approach of semi-structured interviews and netnography, this study aims to gain more in-depth knowledge on consumers’ perception of the unbundling trend. With the aid of an adopted version of Holbrook’s typology of consumer value, this study investigates the consumer value behind the consumption of unbundled flight service and its reflection on consumers’ purchase decision. The findings indicate that consumers’ experience, carrier’s implementation and specific situation could influence the consumer value perceived in different dimensions of consumer value, while purchase decision could have been reshaped in terms of price perception, information requirement, perception on ease of booking process, and searching behavior on alternatives.}},
  author       = {{Wong, Patrick Ho Cheong}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Consumer Value on Unbundling Practices by Full-service Carrier – a Qualitative Study}},
  year         = {{2018}},
}