Low-Cost Airlines—A New Customer Relationship? An Analysis of Service Quality, Service Satisfaction, and Customer Loyalty in a Low-Cost Setting

Abstract

Many organizations are now paying close attention in evaluating and implementing marketing strategies with the specific aim of improving customer retention. While extensive literature has focused on the link between service quality, satisfaction, and loyalty, little research has been conducted on examining these three constructs in the context of low cost airlines. Using questionnaire data collected at two European airports, the results suggest that, though both the service quality and customer satisfaction have positive influence on repurchase intentions, customer satisfaction is a much stronger driver in influencing repurchase loyalty than service quality, which implies that these constructs interact in a different manner in a low cost setting.