The rivalry between full-service carrier (FSC) and low-cost carrier (LCC) nowadays becomes one of the most inte- resting areas in airline industry to be studied. However, the later has been considered a profitable market niche since it eliminates some common services in order to reduce the associated costs. In addition, if LCC could provide an excellent service quality to its customers, a competitive advantage also could be attained. This paper aims to assess the service quality of domestic LCC based on the competitive zone of tolerance by benchmarking against its competitors and prioritize the service attributes to be improved. The first objective is obtained by using customer zone of tolerance-based service quality (CZSQ) and the second by CZSQ-based importance performance analysis (CZIPA). A case study to demonstrate the applicability of the methods was conducted to assess the service quality of Citilink, which is an LCC hosted in Indonesia. Result shows that respondents are satisfied enough with the service provided by the airline. Nevertheless, there are rooms of improvement since most of the service attributes belong to the “possibly overkill” quadrant, i.e. high performance but less important. If the efforts for reaching customer satisfaction associated with these attributes are app- lied to other areas, it is supposed to bring better results and reduce costs.
Airline service, benchmarking, CZIPA, CZSQ, low-cost carriers, service quality.
M. Mujiya Ulkhaq, Bryan E. Putra, Ganesstri P. Arianie, Annindya N. Amalia, and Susatyo N. W. Pramono are with the Department of Industrial Engineering, Diponegoro University, Semarang 50275, Indonesia (e-mail: email@example.com, firstname.lastname@example.org, email@example.com, firstname.lastname@example.org, email@example.com).
M. Mujiya Ulkhaq, Bryan E. Putra, Ganesstri P. Arianie, Annindya N. Amalia, and Susatyo N. W. Pramono, "
Applying CZSQ and CZIPA for Assessing Service Quality of Domestic Low-Cost Carriers," Journal of Economics, Business and Management vol. 4, no. 9, pp.