Consumer Choice Model in No-frills Airline Industry

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