Abstract—Budget airlines, also named as low cost carriers (LCC) in Taiwan, have had great impact in Europe, America and have stimulated new demand since the orientation of Southwest Air in 1973. The market share of LCCs has gradually increased in each region and grown particularly within Asia-Pacific. The first LCCs entered the Asian air transport market in the early 2000s; meanwhile the first budget airline commencing its business in Taiwan was Jetstar in 2004. Many researches were focused on the comparison between full service carriers (FSC) and LCCs; competitive strategy for FSCs to outstand the market. However, only few studies were focused on Taiwan’s LCCs of their decisive determinants. Actually, none was specifically focused on passengers’ perceived concept and attentive factors triggering passengers’ decisions in Taiwan. In this paper, factors analysis based on customers’ satisfaction to purchasing behavior was conducted. The factors were integrated other researches factors about airline satisfaction and creatively considering one factor, word of mouth (WOM) as another direct construct to motivate attention behavior. The survey was conducted with 284 valid samples by PLS-SEM, a factor construct analysis tool. The survey of LCCs about determinants was to investigate customers’ perceived concepts toward LCCs in Taiwan. The result showed price is the same determinants concern for LCC. Another interesting factor was WOM can be a key factor influencing Taiwanese purchasing behavior. This study provides novel insight regarding LCC passengers’ concepts and behavioral intention, as well as managerial analysis and research implications for LCCs business reference.

Index Terms—LCC (low cost carriers), FSC (full service carriers), word of mouth (WOM), satisfaction, intention.

The authors are with College of Management, National Kaohsiung First University of Science and Technology, Taiwan (email: u0128902@nkfust.edu.tw).

Cite: Wan-Yun Tina Cheng, Chen-Cheng Chen, "The Effect of LCCs’ e-Business and e-Management Strategies by Investigating Determinants on Southern Taiwan," International Journal of e-Education, e-Business, e-Management and e-Learning vol. 6, no. 3, pp. 146-161, 2016.