Document Type Master's Dissertation Author Hlekane, Khanyisa URN etd-04082010-115602 Document Title Willingness to pay for airline services and product attributes in South Africa Degree MBA Department Gordon Institute of Business Science Supervisor
Advisor Name Title Mr r Machado Keywords
- airline services
Date 2010-04-03 Availability unrestricted Abstract
The primary objective of this research was to understand airline services and product attributes that customers value and to estimate their willingness to pay for these attributes. The research also aimed to understand the consumer decision making and buying process particularly with reference to rules used in the buying process. Would the ranking of a service or product attribute influence customers’ willingness to pay for that attribute? The research was based in South Africa.
This research used a structured survey design, asking customers to rank their preferred product attributes and went on to enquire about their willingness to pay for those attributes.
The main findings regarding the preferred attributes mirrored those that were uncovered in the literature review. For business travellers, Frequency, Comfort and Business Lounge were found to be predictors of willingness to pay. Only the Business Lounge was found to be a predictor of willingness to pay for non-business travellers.
Willingness to pay responses from the two groups were similar; however the results showed that non-business travellers were significantly more willing to pay for Flight Frequency while business travellers were significantly more willing to pay for access to the Business Lounge.
With regards to the use of decision making rules, there did not seem to be any clarity on the use of any decision rules for business and non-business travellers.
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Please cite as follows:
Hlekane, K 2009, Willingness to pay for airline services and product attributes in South Africa, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-04082010-115602/ >
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