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The Opportunity for Low Cost Carrier in Taiwan: Analysis of Taiwan Market towards Low Cost Carrier Characteristics Papers. By: Hendrik Li IIM / 9637533. Marketing Research Course National Chiao Tung University. Research Background.

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The Opportunity for Low Cost Carrier in Taiwan: Analysis of Taiwan Market towards Low Cost Carrier Characteristics Papers

By:

Hendrik Li

IIM / 9637533

Marketing Research Course

National Chiao Tung University

research background
Research Background
  • The growing of LCC in the airline industry around the world
  • Right now Taiwan doesn’t have LCC airline
  • Taiwan market’s characteristics VS LCC’s characteristics
research hypotheses
Research Hypotheses

H1. Price of LCC affect the Taiwan market to choose LCC

H2. Promotion of LCC affects the Taiwan market to choose LCC

H3. Service of LCC affects the Taiwan market to choose LCC

H4. Quality of LCC affects the Taiwan market to choose LCC

literature review
Literature Review

Definition of LCC

airline that offers generally low fares in exchange for eliminating many traditional passenger services

History of LCC

Pacific Southwest Airlines in the United States, which pioneered the concept in 1949

regression analysis
Regression Analysis

This study is using linear regression analysis to verify whether research hypotheses are supported or not supported.

regression analysis1
Regression Analysis

And Using the enter method, a significant model emerged (F=3.530, p < 0.05, Adjusted R square = .187). Significant variables are shown as

hypotheses testing
Hypotheses Testing
  • Finding:
    • Price, promotion and service was not significant predictors (independent variables) to this model (H1, H2 and H3 are not supported)
    • Quality was a significant predictor (independent variables) to this model (H4 supported)
research conclusion
Research Conclusion
  • Price of LCC doesn’t affect the Taiwan market to choose LCC
  • Promotion of LCC doesn’t affects the Taiwan market to choose LCC
  • Service of LCC doesn’t affects the Taiwan market to choose LCC
  • Quality of LCC affects the Taiwan market to choose LCC
  • Price of LCC didn’t have an influence for the Taiwan market to choose LCC
    • H1 of hypotheses is not supported
  • Promotion of LCC didn’t have an influence for the Taiwan market to choose LCC
    • H2 of hypotheses is not supported
  • Service of LCC didn’t have an influence for the Taiwan market to choose LCC
    • H3 of hypotheses is not supported
  • Quality of LCC has an influence for the Taiwan market to choose LCC
    • H4 of hypotheses is supported