Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/53637
Title: THE SWITCHING BEHAVIOR OF AIRLINE PASSENGERS: THE CASE OF AIRASIA AND MALAYSIA AIRLINES
Authors: ONG WOOI LENG
Keywords: airline, reservation price, swtching behavior
Issue Date: 24-Jan-2014
Source: ONG WOOI LENG (2014-01-24). THE SWITCHING BEHAVIOR OF AIRLINE PASSENGERS: THE CASE OF AIRASIA AND MALAYSIA AIRLINES. ScholarBank@NUS Repository.
Abstract: This study examines how sensitive passengers are to fare differences between AirAsia (AA) and Malaysia Airlines (MAS) using an interval regression model. Consider a consumer who is currently a passenger on airline X as opposed to airline Y. As airline Y reduces its price, it will become more attractive to the consumer, and at some price, she will switch to airline Y. I denote the price at which she switches as the reservation price, and using questions that I developed, and data that I collected, I estimate the determinants of the reservation price for AA passengers considering a move to MAS and vice-versa. In particular, I let the reservation price depend on socio-economic characteristics and airline attributes. I find that my sample design works quite well for the AA passengers, and that I can precisely estimate their reservation price equation. However, my survey design for the MAS passengers does not elicit sufficient information to precisely estimate their reservation price equation.
URI: http://scholarbank.nus.edu.sg/handle/10635/53637
Appears in Collections:Master's Theses (Open)

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