Service customization of airlines: Effects of option framing and option attribute on purchasing decision of air passengers

William Jen, M. Y. Lu, C. C. Wu, I. S. Li

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Since customization has become a trend, airlines create tactics to meet customers' requirements so as to gain the profits. The choices may be presented in two different framing types: passengers start at a least included ticket and is asked whether to choose more services (additive option-framing) and passengers start at a fully included ticket and let passengers delete services which they don't need (subtractive option-framing). We are interesting in how these marketing tactics affect consumers' decisions. Moreover, product attribute may also influence passengers' purchasing decision. Thus, the purpose of this study is to examine the effects of option-framing and product attribute on passengers' purchasing behavior. The result shows that passengers engaged in subtractive condition need more time to make decisions, with higher satisfaction, and delete fewer hedonic options and delete more utilitarian options than passengers engaged in the additive framing condition. According to the results, we also discussed the managerial implications and the suggestions for further research.

Original languageEnglish
Title of host publicationProceedings of the 18th International Conference of Hong Kong Society for Transportation Studies, HKSTS 2013 - Travel Behaviour and Society
PublisherHong Kong Society for Transportation Studies Limited
Pages189-196
Number of pages8
ISBN (Print)9789881581426
StatePublished - 1 Jan 2013
Event18th International Conference of Hong Kong Society for Transportation Studies on Travel Behaviour and Society, HKSTS 2013 - Hong Kong, Hong Kong
Duration: 14 Dec 201316 Dec 2013

Publication series

NameProceedings of the 18th International Conference of Hong Kong Society for Transportation Studies, HKSTS 2013 - Travel Behaviour and Society

Conference

Conference18th International Conference of Hong Kong Society for Transportation Studies on Travel Behaviour and Society, HKSTS 2013
CountryHong Kong
CityHong Kong
Period14/12/1316/12/13

Keywords

  • Airlines
  • Customization
  • Option-framing
  • Product attribute

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    Jen, W., Lu, M. Y., Wu, C. C., & Li, I. S. (2013). Service customization of airlines: Effects of option framing and option attribute on purchasing decision of air passengers. In Proceedings of the 18th International Conference of Hong Kong Society for Transportation Studies, HKSTS 2013 - Travel Behaviour and Society (pp. 189-196). (Proceedings of the 18th International Conference of Hong Kong Society for Transportation Studies, HKSTS 2013 - Travel Behaviour and Society). Hong Kong Society for Transportation Studies Limited.