A Study on the Influence of FSC Customer’s Switching Cost and Trust Transfer on LCC Market Expansion
Eun-Jeong Lim · Journal of Tourism and Leisure Research · 2020
In the early days, LCC operated domestically, and steadily expanded its market share, eroding the market share of FSC. Since then, LCC have diversified into aircrafts and have entered the international market, threatening the maintenance of FSC airlines’ market. The purpose of this study is to investigate the relationship between the switching cost, trust transfer, and purchase intention that occurs when customer trust is changed from a large airline to a LCC. The results of this study are as follows: First, learning and investment costs are rejected and uncertainty costs are supported in explaining the relationship between switching cost and trust transfer. Second, in the relationship between trust transfer and purchase intention, learning and investment costs are rejected and uncertainty costs are support. Third, trust intentions are supported by purchase intentions. Therefore, we have identified the important marketing characteristics that the trust formation of customers of large airlines can positively influence the purchase intention of low cost carrier.