Abstract:
This paper seeks to improve our understanding of air passengers’ decision-making processes
by testing a conceptual model that considers service value, airline service quality, satisfaction,
perceived sacrifice, and behavioural intentions. In this study, a linear structural equations
modeling system is applied to incorporate the service quality of airline companies into the
passengers’ airline choice models to enhance the models’ performance and the forecasting
ability. Two modeling approaches are applied in this research: the structural equation
modeling (SEM) and the importance-performance analysis (IPA). The SEM results of this
study show that the service value is the major factor that can influence the behavioural
intention. IPA results indicate that responsiveness is the most important airline service quality
attribute in passengers. Finally, implications of these results for practice and research are
provided.