Consumer Choice Model in No-frills Airline Industry

Despite the explosive growth of no-frill airline industry, very little is known about how consumers make purchase decision in such settings. Today’s airline industry requires choice models consistent with consumers’ true preference sets. This study used conjoint analysis to identify these ideal choice models. 38 percent of the subjects were found to use compensatory and 62 percent non-compensatory models. Our findings suggest a need to base choice-making promotions on ideal choice models if the promotion is to lead consumers to decisions consistent with true preferences.