Consumer decision-making in airline bookings : the role of perceived value and price sensitivity

Abstract

Purpose: This study explores the influence of price sensitivity and perceived value on airline purchase intentions, contrasting the appeal of low-cost carriers (LCCs) and full-service carriers (FSCs). To represent these models, consumer preferences for Ryanair and Turkish Airlines are analysed. While price sensitivity is well-researched in consumer behaviour, there is a limited understanding of how various dimensions of perceived value – quality, emotional response, monetary price, behavioural price, and reputation – mediate its impact on airline choice. By addressing this gap, the study offers a nuanced view of how these value dimensions shape consumers’ price-driven selection processes across airline types. Design/Methodology/Approach: Adopting a deductive, quantitative approach, data was gathered through an online survey targeting 235 leisure travellers who had recent booking experiences with either Ryanair or Turkish Airlines, responding based on their direct experience with the airline they chose. The research employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to test the proposed relationships and to measure the mediating roles of perceived value dimensions. A multi-group analysis was conducted to reveal how these effects differ between Ryanair and Turkish Airlines. Findings: Price sensitivity significantly influenced purchase intention, with a positive effect for Ryanair and a negative effect for Turkish Airlines. Monetary price emerged as the sole mediator between price sensitivity and purchase intention, underscoring fair pricing’s role in consumer choices. Multi-Group Analysis revealed key distinctions: price sensitivity negatively impacted quality and reputation for Turkish Airlines but not for Ryanair. These findings highlight the differing roles of perceived value dimensions across airline types, shaping consumer decision-making in varied ways. Theoretical and Practical Implications: This study provides a refined understanding of how perceived value dimensions mediate price sensitivity’s effect on purchase intentions, revealing distinct consumer priorities. By clarifying how consumers align value differently these findings offer a nuanced basis for targeted, value-driven engagement that aligns more closely with consumers’ expectations across airline models.