The effects of airline service quality on intrinsic value, extrinsic value, satisfaction, commitment, and loyalty

Abstract

The purpose of this study is to analyze the relationship between intrinsic value, extrinsic value, satisfaction, commitment, and loyalty in the quality of airline service provided by airlines in Korea. Also, differentiated marketing strategies and practical proposals are suggested. A total of 236 questionnaires from passengers who had flown on full-service carriers and low-cost carriers were used for the hypothesis test. The sub-dimensions of airline service quality were composed of tangibles, reliability, responsiveness, assurance, empathy, website information, website ease-of-use, and website security. AMOS 20.0 was used for confirmation factor analysis and path analysis. The results of the second-order structural model testing are as follows. First, airline service quality had the biggest influence on intrinsic value in the effect of airline service quality on intrinsic value, extrinsic value, and satisfaction. Second, intrinsic value had more influence on satisfaction than extrinsic value. Third, satisfaction had a higher effect on commitment than loyalty. Fourth, responsiveness and reliability were found to be the most important factors of airline service quality, and their influence on intrinsic value, extrinsic value, and satisfaction was bigger than the other factors. The implications and limitations of the study are presented in the conclusion.