Business Commons^™

Taking Flight Or Taking A Pass? Exploring Factors Influencing Consumer Willingness To Pay For Evtol Travel, David C. Ison

International Journal of Aviation, Aeronautics, and Aerospace

The Advanced Air Mobility (AAM) industry is experiencing significant growth due to technological advancements and increasing demand for efficient travel experiences. The market is expected to reach $45 billion by 2030, with major players like Joby, Archer, Beta, and Wisk dominating. This study aimed to assess public willingness to pay for AAM services using eVTOLs, using Amazon's Mechanical Turk platform. The survey yielded a response rate of 85.8%, with 1,622 completed surveys. The study found that younger urban consumers were more willing to pay higher prices for AAM electric vertical takeoff and landing (eVTOL) aircraft trips than older participants, possibly …

A Comparative Analysis Of School Choice Factors Influencing Non-Collegiate Flight School Selections Between Groups Of Nontraditional, Traditional, And Teenage Student Pilots, Jingmin Jin Ph.D.

Journal of Aviation/Aerospace Education & Research

To assist with exploring strategies for effectively promoting vocational noncollegiate flight schools to diverse student markets of nontraditional student pilots, traditional student pilots, and teenage student pilots, this study compared and analyzed school choice factors of marketing approaches, relevant people, institutional features, and training program features that influenced these three groups of student pilots’ school selections. The study data was collected via a survey questionnaire, and the sample included 176 participants. There were 42 choice factor survey items, and the participants were guided to rate the level of influence of each factor on their school choice decisions. Descriptive statistics and …

Innocent Until Proven Guilty: Suspicion Of Deception In Online Reviews, Maria Petrescu, Philip Kitchen, Costinel Dobre, Selima Ben Mrad, Anca Milovan-Ciuta, Deborah Goldring, Anne Fiedler

Publications

- Purpose: This study formulates a new framework for identifying deception in consumer reviews through the lens of Interpersonal Deception Theory and the Persuasion Knowledge Model. It evaluates variables contributing to consumer intentions to purchase after reading deceptive reviews and proposes deception identification cues to be incorporated into the interpersonal communication theoretical framework.

- Methodology: The first study is qualitative and quantitative, based on sentiment and lexical analysis of 1000 consumer reviews. The second study employs a USA national consumer survey with a PLS-SEM and a Process-based mediation-moderation analysis.

- Findings: The study shows deceptive characteristics that cannot be dissimulated …

Ai-Based Innovation In B2b Marketing: An Interdisciplinary Framework Incorporating Academic And Practitioner Perspectives, Maria Petrescu, Anjala S. Krishen, Sheen Kachen, John T. Gironda

Publications

Artificial intelligence (AI) rests at the frontier of technology, service, and industry. AI research is helping to reconfigure innovative businesses in the consumer marketplace. This paper addresses existing literature on AI and presents an emergent B2B marketing framework for AI innovation as a cycle of the critical elements identified in cross-functional studies that represent both academic and practitioner strategic orientations. We contextualize the prevalence of AI-based innovation themes by utilizing bibliometric and semantic content analysis methods across two studies and drawing data from two distinct sources, academics, and industry practitioners. Our findings reveal four key analytical components: (1) IT tools …

What Factors Predict A Consumer's Willingness To Purchase A Subscription-Based Airline Program?, Sean R. Crouse

Journal of Aviation/Aerospace Education & Research

Introduction: Many services offer subscription-based sales models. The aviation industry has not widely attempted to market a subscription-based service through their airline for ticketing purposes. This study developed a regression equation to determine predictive factors for the type of individual who would purchase a subscription-based airline ticket.

Method: A two-stage approach was used where the participants (N = 521) answered demographic information, flight habits, and the same scenario with a perceived value scale and willingness to purchase scale.

Results: Stage 1 found perceived value, employment status, and early boarding preference all to be significant factors, accounting for …

Customer Service 2.0: The Effect Of Ryanair's Policy Change, John C. Griffith Ph.D., Donna L. Roberts Ph.D.

International Journal of Aviation, Aeronautics, and Aerospace

Customer perceptions of Ryanair and Southwest were evaluated to compare two data periods; 2012-13 and 2016-17 to determine differences in passenger perceptions between and within airlines. Quantitative data and open area comments were analyzed. A replication of a previous study for 2016-17 data indicated that customer perceptions of Ryanair improved since the implementation of a customer service program. Survey results indicated Ryanair and Southwest did not have statistically significant differences in overall ratings; a change from 2012-13 data where Southwest was rated significantly higher. Additionally, 2016-17 Ryanair customers indicated they would recommend the airline at a significantly higher rate than …

A Qualitative Assessment Of Airline Passenger Satisfaction, Kaetlyn Blocker, Brent D. Bowen, Erin Bowen, Andrea Irish

Student Works

Each year, airline passengers respond to the Airline Passenger Survey providing feedback of their experiences with major domestic (U.S.) airlines. The Airline Passenger Survey analyzes responses to a varied set of questions. This specific study is limited to the single open-ended question within the survey. This question is optional, but allows an opportunity to share any issues, concerns, and/or complaints regarding their own air travel experiences. There is no limitation on the number of words submitted. Through the application of a thematic coding scheme, results show what the highest concerns of airline passengers have been the last two years.

A Conceptual Framework For Valuating Airline Frequent Flyer Program Miles, Yi Gao

International Journal of Aviation, Aeronautics, and Aerospace

Frequent flyer programs of airlines have gradually evolved into a multi-billion dollar business over the years. Valuing frequent flyer program miles accurately and fairly has its practical implications both for airlines and members of frequent flyer programs. As a ground-breaking academic study dedicated to airline loyalty programs, this study aims to build a conceptual framework to guide the valuation of miles. Through comparing required miles for different award types with their equivalent cash prices, this study has successfully addressed the purchasing power of AAdvantage miles of American Airlines when they are used for award redemption. Not only can this study …

Open Skies Agreement Between Brazil And The United States: Regulations, Alliances, Economic Impacts And A General Long Term Projection, Diego Alvim, Jose Simi, Mathias Gitahy, Rebecca Meadows

Graduate Student Works

This research has been developed based on the new United States and Brazil open skies agreement signed in 2018 with the goal to analyze regulations, alliances, economic impacts and a general long term projection. As a result, the model proposed indicates 14 potential new routes, 6 coming from São Paulo and Rio de Janeiro and 8 from other cities. The new routes create a new axis of air transport, with new direct flights programmed for the northeast, center-west and south regions. These new weekly frequencies allow an increase of 151 weekly frequencies between the two countries, going from the current …

The Impact Of The Miles Trade Business In The Brazilian Airline Industry, Daniela De Araujo Pereira, Evandro Magno Vianna Goncalves, Fabricio Benato Jeronimo, Renato Luiz Furquim De Mendonca Bellomo

Graduate Student Works

This study analyzes the impact of the Miles Trade business in the Brazilian airline industry. This is linked some factors: economy recession, cultural traces, legal flaws and new technologies that led to the creation and growth of the Miles Trade business in Brazil. The impacts over airlines are related to loyalty weakening between customers and airlines and revenue dilution due to the lower prices of air tickets sold in miles. This project analyzes the qualitative impacts using the SWOT analysis, Porter’s 5 forces, Cause and Effect Diagram and the quantitative impacts comparing public available information about the Miles Trade business …

Low-Fare Flights Across The Atlantic: Impact Of Low-Cost, Long-Haul, Trans-Atlantic Flights On Passenger Choice Of Carrier, Jennifer Nicole Hunt

Doctoral Dissertations and Master's Theses

Full-service carriers (FSCs) have long ruled the trans-Atlantic market, due to the absence of low fare competition, which has kept airfares high. However, renewed interest in lowcost, long-haul (LCLH) flights was prompted by efficient aircraft, low fuel prices, liberalization of air markets, and low-cost carriers’ growth opportunities. Since 2013, multiple LCLH carriers have commenced trans-Atlantic operations, and their market share has grown to 8%. In response, FSCs are establishing their own LCLH subsidiaries and/or introducing basic economy airfares to more effectively compete in the trans-Atlantic market. The purpose of this dissertation was to further the understanding of LCLH and FSC …

Building Small Commercial Airport Clusters To Increase Marketing Capability, Dixie Button Phd, Rachel M. Vigness, Patti Clark

Publications

Building Small Commercial Airport Clusters to Increase Marketing Capability was presented at MBAA International, Chicago, IL in April, 2018.

Airline Customer Satisfaction 2015-2017 Results, Michelle M. Bennett, Brent D. Bowen, Erin E. Bowen, Z. Bowen, Dean Headley, Timothy B. Holt, Jacqueline R. Luedtke

Publications

Previous research on perceptions, satisfaction, and attitudes regarding the major commercial air carriers in the United States has provided little more than an interesting descriptive representation of the average air traveler. This study moves beyond basic descriptive information of air travelers to identify attitudinal patterns and relationships in the way consumers at varying levels of travel frequency view the commercial air industry. The Airline Passenger Survey (APS) elements developed via the utilization of rigorous scientific methodology, with the intention of capturing the most important data from passengers while reducing confusion or variability in comprehension of questions. APS items are a …

Airline Marketing, Blaise P. Waguespack

Publications

The role of airline marketing has now expanded to include a more expansive view of the travel planning process. The chapter utilises a classic four P's approach – product, place, promotion and price – while reviewing some of the possible legal and regulatory concerns that impact on how airline marketing is addressed today. Airlines must determine what is the right product for the premium passenger mix of the airline. The chapter examines the role of how a classic promotional tool, sponsorship, can be combined with the tools of social media to provide an overall promotion campaign to target audiences. As …

What Factors Affect General Aviation Pilot Adoption Of Electronic Flight Bags?, Troy E. Techau

National Training Aircraft Symposium (NTAS)

Why do some pilots choose to use electronic flight bags (EFBs) in their flight operations, yet others continue to rely on traditional avionics and paper charts? Does the use of EFBs differ by age, gender, or flight experience?

EFBs, now a common tool in aviation, can display navigational charts, weather, and traffic information, and automate calculation of critical fuel and aircraft performance data. Research that uses EFBs as interactive nodes to exchange data with the System-Wide Information Management (SWIM) network is underway. Understanding what factors may explain differences in pilot adoption and use of EFB technology could shape regulations governing …

Network Carriers’ Strategic Decision With Low Cost Carrier Entry, Tamilla Curtis

Publications

Good decisions require that each decision-maker accurately predicts the strategic moves of the other parties. Dealing with prospective low-cost carrier (LCC) entrants is critical for global network airlines. This research focused on two main issues. First, it investigates competitive reaction by established US airlines when they face an LCC entrant in the less congested, small-sized US regional airports. Second, it examines which of the market indicators are most likely to influence airline fares out of small regional airports with the LCC entry. While the first stage of research demonstrated mixed results and did not discover any patterns in airline behaviour …

Predicting The Market Share Of A New Airport In Multi-Airport Cities: The Case Of Lagos, Samson Oladele Fatokun

Doctoral Dissertations and Master's Theses

The primary objective of the study was to develop an empirical model that combines the contingent valuation method (CVM) with the isochrone analysis to predict the market shares of new airports in multi-airport cities and to apply the model to the case of Lekki International Airport (LIA), the proposed second airport in Lagos, Nigeria. In addition to predicting the market share that LIA could attain, the study also identified and analyzed the catchment areas as well as the willingness to pay (WTP) of would-be LIA passengers. Furthermore, the research identified the determinants of airport choice in the Nigerian market. The …

Airline Marketing Preferences, Kylie Johnson, Deborah Carstens Ph.D., Stephen Rice Ph.D.

Human Factors and Applied Psychology Student Conference

The aim of this research is to assess airline marketing strategies providing consumer preferences to better target potential customers. The airline industry has transformed over the years, and cost and amenities have been impacted in the airline evolution. There has been consideration of whether flight cost, or flight amenities and passenger experience should be analyzed to result in enhanced marketing in the airline industry. An online survey was issued to examine which flight amenities potential customers preferred. Furthermore, the length of the flight was examined to determine if consumer preferences changed for domestic versus international flights. The survey findings are …

Case Study: Sexism In Advertising And Airlines, Tamilla Curtis, Anke Arnaud Ph.D., Blaise Waguespack

Publications

This case study outlines an ethical dilemma faced by a young female student who is planning to buy airline tickets. Her purchase decision is influenced by cost and advertising strategies. The case discusses advertising ethics, ethical moral philosophies, including teleology and deontology, and sexist advertising with examples from the airline industry. This case will be beneficial for marketing students to discuss the topic of advertising ethics, and for business students to discuss the topic of organizational ethics. Students enrolling in aviation related classes will also benefit from this case. The teaching notes for instructors are available upon request.

The Model Of Network Carriers' Strategic Decision Making With Low-Cost Carrier Entry, Tamilla Curtis, Dawna L. Rhoades

Publications

"After deregulation in the United States in 1978, airlines faced intense competition on previously regulated routes. The proponents of deregulation stated that equilibrium in the industry would be achieved by providing lower fares and improved service (Daraban and Fournier, 2008). While this became true to some extent, the airline network in the U.S. was dominated by the hub-and-spoke system and concentrated in the hands of few large airlines. The emergence of the Low-Cost Carrier (LCC) model, which originated in the U.S. through Southwest Airlines in the early 1970s, became an instrument to drive the airlines towards a competitive equilibrium. The …

The Model Of Network Carriers' Strategic Decision Making With Low-Cost Carrier Entry, Tamilla Curtis, Dawna L. Rhoades

Publications

No abstract provided.

Something Old Is New Again: Airline-Airport Consortia And Key Stakeholder Benefits, Janet K. Tinoco, Brian W. Sherman

Management, Marketing and Operations - Daytona Beach

Although consortia in the aviation sector predate deregulation by decades, this type of cooperative agreement, particularly in the airline industry, is experiencing a resurgence of interest from industry participants and academia. Airlines are searching for new innovative ways to reduce costs while airports are searching for private partners to improve terminal facilities and equipment and update services. Passengers, on the other hand, continue to balance price versus performance in their travel experience. This empirical research study finds evidence of positive influences of airline consortia to all key stakeholders; however the majority of benefit appears to be felt by the airlines …

Analysis Of Low-Cost Carriers In The Post-Soviet States, Tamilla Curtis, Dawna L. Rhoades

Publications

The research paper provides an overview of low-cost carrier (LCC) development in the post- Soviet states with the analysis of the largest aviation market in Russia. The LCC model seeks to achieve a competitive advantage through the reduction of operating costs below the traditional airline model. Since the post-Soviet states are emerging economies, airlines face a high level of uncertainty and experience a number of unique problems. While the global community enjoys the benefits offered by LCCs, the question remains why this model has not been successful in the 15 newly formed countries, with the exception of the Hungarian low-cost …

Ancillary Revenue And Price Fairness: An Exploratory Study Pre & Post Flight, Blaise P. Waguespack, Tamilla Curtis

Publications

The growing impact of Ancillary Revenue on consumer choice and shopping behavior continues to be a highly debated issue. In the US, the Department of Transportation (DOT) has stepped into the debate and is investigating the possibility of new rules on how airlines must report and display such ancillary offerings. While the DOT collects data, reports on the amount of ancillary revenue earned by the airlines continue to rise. Examining past research on price fairness from the marketing literature and the impact of revenue management on price fairness from the aviation literature, this article joins new research appearing on the …

Market Analysis For Small And Mid-Size Commercial Turboprop Aircraft, Vitaly S. Guzhva, Tamilla Curtis, Vladislav Borodulin

Publications

Recent fuel price volatility and growing concerns about the efficiency of regional jets have led to a revival of large turboprop aircraft as efficient passenger carriers on short-haul regional routes. However, the overall market for smaller turboprops is much less defined as it is characterized by a plethora of small commuter and niche operators in addition to regional carriers. Since most small and mid-size turboprop manufacturers have gone bankrupt or discontinued production due to some other reasons, current operators of this aircraft class are left with aging fleets that would need to be replaced by 2020-2030. This paper assesses the …

A Simulation Approach To Airline Cost Benefit Analysis, Massoud Bazargan, David Lange, Luyen Tran, Zhiyuan Zhou

Management, Marketing and Operations - Daytona Beach

In this paper we conduct a cost benefit analyses using simulation for an Airline. This study pertains to using Towbarless Towing Vehicles (commonly referred to as supertugs) to transport aircraft to and from the terminal to airline’s maintenance hangar facility at their hub. This study attempts to investigate the possibility of reducing costs through saving jet fuel by adopting supertugs and identify if their high purchasing costs are justified. This study adopts simulation to analyze the annual savings by studying the numbers needed, as well as the utilization and operation cost for these supertugs. The results are very encouraging, enabling …

The Challenge Of Intervention To Monetarily Support Or Not Support The National Airline Carriers: A Case Of The Airline Industry In Eastern Europe, Dawna L. Rhoades, Tamilla Curtis

Management, Marketing and Operations - Daytona Beach

The airline industry has been considered a special case in national and international business virtually since its beginning. Because of this status, national governments have repeatedly intervened to support national carriers in order to prevent bankruptcy and failure. The nations of Eastern Europe are no exception to this rule and are currently considering additional intervention to support their carriers. This paper explores the rationale for intervention, particularly the suggested economic impact, using traffic and financial information from the Flightglobal database. The conclusion is that the case for intervention is weak at best and that the results may not justify the …

Regional Jet Aircraft Competitiveness: Challenges And Opportunities, Tamilla Curtis, Dawna L. Rhoades, Blaise P. Waguespack Jr.

Management, Marketing and Operations - Daytona Beach

The regional jet aircraft is a unique market niche. Particularly suitable for providing capacity in the 30 to 90 seat range, these jets are often used to connect smaller airports to network carrier hubs, as well as to fill in during slow periods. The market is currently dominated by two manufacturers: Brazil's Embraer and Canada's Bombardier. Due to the nature of the global aircraft industry, Embraer and Bombardier are largely dependent on the international sale of their aircraft for steady revenue streams. Orders and deliveries of aircraft with fewer than 100 seats have grown rapidly over the past ten years. …

Competition And Price Wars In The U.S. Brewing Industry, Jayendra Gokhale, Victor J. Tremblay

Accounting, Economics, Finance, and Information Sciences - Daytona Beach

The behavior of the macro or mass-production segment of the U.S. brewing industry appears to be paradoxical. Since the end of Prohibition in 1934, the number of independent brewer has continuously declined while the major national brewers, such as Anheuser-Busch, Miller, and Coors, have gained market share. In spite of this decline in the number of competitors, profits and market power have remained low in brewing. Iwasaki et al. (2008) explain this result by providing evidence that changes in marketing and production technologies favored larger brewers and forced the industry into a war of attrition, in which only a handful …

Satisfaction With Airline Service Quality: Familiarity Breeds Contempt, Tamilla Curtis, Dawna L. Rhoades, Blaise P. Waguespack Jr.

Management, Marketing and Operations - Daytona Beach

The objective of this study is to investigate frequency-of-flight issues and the differences between frequent and non-frequent flyers’ levels of satisfaction and the importance attributed to overall airline service quality and select attributes. The results indicate that the level of satisfaction with overall airline quality and select attributes decrease the more passengers fly. Conversely, the level of importance attributed to airline amenities increased with flight frequency. Perceptions of airline quality may vary between different nationalities and different socioeconomic groups. Differences between the short- and long-haul flights, as well as domestic and international services could also exist. Airline managers need to …