What Factors Predict a Consumer's Willingness to Purchase a Subscription-Based Airline Program?

Abstract

Verbatim from Embry-Riddle Scholarly Commons. Not paraphrased, not summarized.

Introduction: Many services offer subscription-based sales models. The aviation industry has not widely attempted to market a subscription-based service through their airline for ticketing purposes. This study developed a regression equation to determine predictive factors for the type of individual who would purchase a subscription-based airline ticket. Method: A two-stage approach was used where the participants (N = 521) answered demographic information, flight habits, and the same scenario with a perceived value scale and willingness to purchase scale. Results: Stage 1 found perceived value, employment status, and early boarding preference all to be significant factors, accounting for 77.6% of the variance. Stage 2 validated the regression equation through a t­-test, correlation, and cross-validated R2. Conclusion: The suggested regression equation showed a strong model fit and predicted the scores from Stage 2 with a mean difference of -.034. These factors will aid the aviation industry’s marketing departments in developing a subscription-based ticket using findings from this study.

Author

• Crouse, Sean R Embry-Riddle Aeronautical University

Keywords

• multiple regression
• backwards stepwise regression
• aviation
• ticketing
• subscription-based sales
• consumer preferences
• Marketing
• Other Business
• Sales and Merchandising
• Tourism and Travel