Service Marketing Mix Factors Influencing Generation Y Passengers’ Decisions to Use Low-Cost Airlines in Thailand
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Abstract
This research sought to: (1) investigate Generation Y passengers' perceptions of the service marketing mix and their choices regarding low-cost airlines; (2) assess service usage decisions in relation to demographic factors; and (3) evaluate the impact of the service marketing mix on Generation Y's decisions to utilize low-cost airlines in Thailand. This research utilized a quantitative methodology. The cohort comprised 400 Generation Y travelers who had formerly utilized budget airlines. Participants were chosen through a combination of purposive sampling and quota sampling to guarantee representation from Thai AirAsia, Nok Air, Thai Lion Air, and Thai VietJet Air. The data were examined employing descriptive statistics, independent-samples t-tests, one-way ANOVA, and multiple regression analysis. The results indicated that participants expressed the most favorable perceptions concerning the service marketing mix (M = 4.60, SD = 0.39) and their choice to utilize low-cost airlines (M = 4.64, SD = 0.45). Gender, profession, and mean monthly earnings markedly affected passengers' choices regarding service utilization at the .05 significance level, while age and educational attainment exhibited no notable disparities. Additionally, the service marketing mix accounted for 68.9% of the variability in passengers' choices to utilize low-cost airlines (Adjusted R² = .689). The primary determinants were the service process and physical evidence (β = .310), succeeded by marketing promotion (β = .257) and pricing (β = .147). The results suggest that the choices of Generation Y travelers to utilize budget airlines are influenced not only by cost but also by a comprehensive assessment of experiential value, which includes service procedures, tangible elements, promotional marketing, and pricing. These results enhance the understanding of service marketing in the low-cost airline sector and offer actionable insights for formulating marketing strategies that cater to the preferences and demands of Generation Y travelers.
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