Comparing the effects of service quality and value-for-money on customer satisfaction, airline image and behavioural intention between full-service and low-cost airlines: Evidence from Indonesia

This research examines the effects of value-for-money and service quality on customer satisfaction, airline image, and behavioural intention of full-service and low-cost airline passengers. A total of 229 young passengers departed from an airport in Jakarta, Indonesia, participated in the survey. A variance based Structural Equation Modelling was employed to examine the causal-effect relationships. Results revealed that the behavioural intention of full-service and low-cost airline passengers could not be directly determined from value-for-money and service quality, but they are mediated through the chronological path of customer satisfaction and airline image. Further, for fullservice airline passengers, service quality plays an important role to affect behavioural intention, whereas, for low-cost airline passengers, perceived value-for-money is more concerned. Also, the effects of both value-for-money and service quality on airline image were found to be different between these two categories.