FACTORS AFFECTING CUSTOMER REPURCHASE INTENTION OF THE LOWCOST AIRLINES IN THAILAND

Abstract

        This research is to address the deficiencies in predicting customer repurchase intention. With regard to determinants of customer repurchase intention that have found a very strong relationship between customer satisfactions and repurchase intention as the most important factor leading to repurchase intent. It is in this context that switching barrier was proposed as a moderating variable, which may have effects in between the two constructs. Switching barrier is defined as any factor that makes it difficult or costly for customers to change providers on the satisfaction and repurchase intentions relationship. The characteristic of Low Fare service which possibly presents ample opportunities for customers to easily switch their purchase intention to others. Therefore, it is important for the service provider to learn how to retain or to prevent their existing customers from switching their purchase to other service providers in the highly competitive area. Survey data were collected: six hundred sets of completed questionnaire were collected by means of random face-to-face interview with passengers waiting for their flights at two major airports of Thailand. A confirmatory factor analysis was conducted with two independent constructs, satisfaction and switching barriers, showed that two constructs fitted well with the empirical data. And, a structural equation model utilizing the data as observed variables and the constructs as latent variables produced a model that showed the impact of switching barriers on the relationship between customer satisfaction and repurchase intention. The major hypothesis, customer satisfaction was found to have a strong influence on repurchase intentions. Respondents who report high levels of satisfaction with the airlines were likely to have high repurchase intentions. The major hypothesis, customer satisfaction was found to have a strong influence on repurchase intentions. In other words, when satisfaction levels are high, three types of switching barriers (interpersonal relationships, attractiveness of alternatives, and service recovery) have practically no influence on repurchase intentions. However, when satisfaction levels are low, one of the switching barriers “switching costs have a positive influence on repurchase intentions.