The purpose of this study is to confirm customers' perceptions of low-cost carriers through a qualitative approach and empirically analyze the structural relationship between low-cost carriers safety management systems, risk perception, and the will t...
The purpose of this study is to confirm customers' perceptions of low-cost carriers through a qualitative approach and empirically analyze the structural relationship between low-cost carriers safety management systems, risk perception, and the will to continue trusting before and after the pandemic to suggest ways to flexibly cope with dangerous situations in the future and to ensure that companies be competitive. In order to achieve the purpose of this study, interviews were conducted with passengers with experience using low-cost carriers and analyzed using Nvivo 12 software, and surveys were conducted twice before and after the pandemic with passengers who experienced low-cost carriers using AMOS 22.0 and SPSS 22.0 programs.
The results of qualitative research analysis conducted to confirm the perception of low-cost carriers are as follows.
First, as a result of confirming the perception of low-cost carriers, four factors were derived: safety, risk, service, and reuse. Among them, safety was derived from three sub-factors: system, education and training, hygiene and disinfection, risk was derived from four sub-factors: social psychological risk, physical risk, financial risk, and performance risk, service was derived from four sub-factors: fare, schedule, human service, material service and reuse was derived from two sub-factors: trust and anxiety.
Second, it was confirmed that the perception of ‘system’, ‘education and training’, ‘hygiene and disinfection’ in relation to the safety of low-cost carriers was divided into the perception that there would be deficiencies compared to full service carriers and that they trusted at a similar level to full service carriers.
Third, ‘social psychological risk’ related to the risk of low-cost carriers was divided into those that perceived a higher level of risk than those of full service carriers when using low-cost carriers and a similar level of risk with low-cost carriers. It was confirmed that most of the ‘physical risk’, ‘financial risk’ and ‘performance risk’ were recognized at a higher level than those of full service carriers due to the inconvenience experienced when using low-cost carriers.
Fourth, in relation to low-cost carriers' service, it was found that ‘fare’ and ‘schedule’ were the most important factors that customers considered when using low-cost carriers. It was confirmed that ‘human service’ and ‘material service’ were divided into responses that were similar to those of full service carriers and that they were insufficient compared to full service carriers.
Fifth, it was confirmed that there was a perception of ‘trust’ and ‘anxiety’ according to boarding experience in relation to the reuse of low-cost carriers.
In parallel with qualitative research, research models and hypotheses were established and quantitative research was conducted by referring to various domestic and foreign previous studies, and the analysis results are as follows.
First, as a result of research "there will be a difference in the use and reliability of low-cost carriers in Korea before and after the pandemic", it was confirmed that the use and reliability of low-cost carriers decreased after the pandemic.
Second, a result of the research regarding "the airline's safety management system, risk perception, and the will to continue trusting for low-cost carriers in Korea will differ in perception according to demographic characteristics(gender, age, and time)" is as follows.
As a result of research the difference in perception according to gender, it was found that the level of perception of women was higher than that of men in the safety management system and the will to continue trusting, and there was no significant difference in risk perception according to gender.
As a result of research the difference in perception according to age, it was found that the safety management system and the will to continue trusting differed significantly according to age, and there was no significant difference in risk perception according to age.
The difference in perception according to the period was found to have significant differences in ‘safety risk management and assurance’ and ‘safety policy’ among safety management systems, and there was no significant difference in ‘safety promotion’ depending on the period. Risk perception showed significant differences in ‘physical risk’, ‘performance risk’, and ‘financial risk’ depending on the period, and ‘social psychological risk’ showed no significant difference depending on the period. There was a significant difference in the will to continue trusting according to the period.
Third, a structural equation model analysis was conducted to verify that "there will be a relationship between the will to continue trusting according to the safety management system of low-cost carriers perceived by customers and the risk perception" and the results are as follows.
As a result of confirming the influence relationship between the safety management system and the risk perception, ‘performance risk’ decreased as the ‘safety risk management and assurance’ increased. Also, the higher the ‘safety policy’, the higher the all risk perception and the higher the ‘safety promotion’, the lower the ‘social psychological’, ‘financial’, and ‘performance risk’.
As a result of confirming the influence relationship between the safety management system and the will to continue trusting, it was found that the higher ‘safety risk management and assurance’ and ‘safety promotion’, the higher the will to continue trusting.
As a result of confirming the influence relationship between the risk perception and the will to continue trusting, it was confirmed that the higher the ‘social psychological’ and ‘financial risk’, and the higher the will to continue trusting, and the higher the ‘performance risk’, the lower the will to continue trusting.
Fourth, as a result of verifying the mediating effect of the risk perception, ‘performance risk’ was a partial mediating effect in the mediating effect of risk perception factors between ‘safety risk management and assurance’, and the will to continue trusting. ‘Social psychological risk’, ‘financial risk’, and ‘performance risk’ were all complete mediating effect in risk perception’s mediating effect between ‘safety policy’ and the will to continue trusting, and ‘social psychological’ and ‘financial risk’ were represented as partial mediating effect
Fifth, a multi-group comparison was conducted to find out that "the relationship between the will to continue trusting according to the safety management system of low-cost carriers perceived by customers and the risk perception will differ before and after the pandemic." The results are as follows.
In case of ‘safety policy’ among the safety management systems, there were differences in ‘social psychological risk’, ‘performance risk’, and path coefficients before and after the pandemic in terms of risk perception.
Among the safety management systems, ‘safety policy’ differed in the will to continue trusting and path coefficients before and after the pandemic, and ‘social psychological risk’ and ‘financial risk’ among risk perceptions differed in the will to continue trusting and path coefficients before and after the pandemic.
Based on the analysis results of this study, academic and practical implications are presented as follows.
First, in order to overcome the limitations of quantitative research, this study attempted to expand the scope of research by conducting open interviews so that respondents can freely respond to the perceptions of low-cost carriers. In addition, it is meaningful that the theoretical framework was provided for future related research by classifying and organizing the perception of low-cost carriers by factor.
Second, both qualitative and quantitative studies showed that ‘age’ was a very important factor, and the older the age, the more negative and unreliable the use of low-cost carriers, and the younger generation generally tended to respond positively to low-cost carriers. Therefore, it will be effective for low-cost carriers to establish active promotional strategies for young people in their 10s and 20s. In particular, it is believed that promoting tickets actively that are inexpensive but cannot be canceled or changed if reservations are made at a time when there are many days left until the travel date can be a helpful strategy for both airlines and customers.
Third, previous studies confirmed that all airlines in Korea apply the ‘aviation safety programme’ and ‘safety management system’ at the same level as international standards, but found the perception that low-cost carriers will be insufficient compared to full service carriers and that education and training for workers will not be conducted well. Therefore, active promoting that full service carriers and low-cost carriers operate the same manufacturer's aircraft and have the same safety system will be effective in improving the awareness of low-cost carriers' safety. In addition, it has been confirmed that ‘safety risk management and assurance’, and ‘safety promotion’ activities among the safety management systems are effective in improving the customer’s will to continue trusting in the airline, so it is necessary to continuously inform and promote the results of the activities. Then, it is believed that low-cost carriers will be able to gain competitiveness in the long-term through this way.
Fourth, since the ‘performance risk’ has been found to be an important factor influencing the will to continue trusting, it is expected to be an effective way to increase the reuse rate through continuous communication with customers by actively utilizing SNS, e-mail, and website registration to identify important factors and inconveniences when using low-cost carriers.
Fifth, it was confirmed that the part of infectious diseases that were not recognized as important before the pandemic appeared as a significant risk factor to the aviation industry, so it is necessary to prepare countermeasures. The Ministry of Land, Infrastructure and Transport(MOLIT) has issued and implemented guidelines for ‘aircraft safety operation’ separately from the safety management system since the outbreak of COVID-19, but considering the global pandemic situation, it is necessary to establish global standards by unifying standards and procedures and indicating in safety management system. Through this way, each airline can systematically manage the quarantine part, and it is believed that it will help customers reduce anxiety about infectious diseases and use aircraft.