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Marketing Research

On

Consumer Perception towards Domestic


Flights in Bangladesh
Course: MKT414 (Marketing Research)
Section: 01

Research Paper
On

Consumer Perception towards Domestic Flights


in Bangladesh
East West University
MKT414, Spring 2015, SEC: 1
Submitted To:

Md.Farhan Faruqui
Assistant Professor
Department of Business Administration
East West University
Submitted By:
Name

ID

Sourav Kumar Dash

2011-2-13-091

Md.Raihan Ahmed

2011-1-10-340

Md.Shahabaj

2011-1-10-241

A.K.M. Ashraful Islam

2011-2-10-093

Pratim Chakma

2011-2-10-187

Md.Towhidul Islam

2011-2-10-268(sec:2)

Letter of transmittal
April 05, 2015
Md. Farhan Faruqui
Assistant Professor
Department of Business Administration
East West University
Subject: Submission of the Research Report
Dear Sir,
With great pleasure, we are submitting this report. This marketing research report contains
true scenario of Consumer Perception towards Domestic Flights in Bangladesh. This
report may not reflect the whole picture of airlines service industry but it may reflect the main
scenario.
We are grateful to you for giving us such an important assignment, which helped us to
understand research activities; it will be helpful for our careers. This report is build by our
true effort.
Sincerely Yours,
Md.Shahabaj

Md.Raihan Ahmed

Sourav Kumar Dash

A.K.M. Ashraful Islam

Pratim Chakma

Md.Towhidul Islam

Table of content
SL
No

Topic

Page

Introduction

06

Research Problem

O9

Approach to the problem

10

Research Design

11

Data Analysis

14

Finding, Hypothesis, and Results

14

Frequency

15

Crosstabs

16

Hypothesis

17

10

Regression

20

11

Limitation and direction for future research

21

12

Conclusion

21

13

Appendix

22

Executive Summary
Our study aimed to specify the factors affecting consumers preference towards domestic
airlines services of Bangladesh. We have identified factors: reliability, stuff knowledge,
convenience, ticket reservation and price form secondary data analysis (Jin-Woo Park,
Rodger Robertson, Cheng-Lung Wu. Investigating the Effects of Airline Service Quality on
Airline Image and Passengers Future Behavioral Intentions. The Journal of Tourism
Studies16 (1): 6, 2005; Amar Kumar Mahato, "Assessing Satisfaction: A Study on
International Passengers Using Nepal Airlines," pp.46 & International Journal of Marketing
Studies, vol-6, p.69.2) industry expert helped us to clarified and understand those factors. We
obtained primary data through our survey by using structured questionnaire. Sample area was
within Dhaka city and the sample size will be 200.After collecting data of all the independent
variables were tested first using Cronbachs alpha reliability tests to assess reliability. We
have used descriptive frequencies to find out the frequencies of demographic variables. We
have also used Crosstabs to find out the relationship of the demographic variables with the
dependent variable. We have also used Paired T test and Sample T test to find out the
accuracy of the hypothesis. We have also used Regression model to find out if the
independent variables have significant relationship with the dependent variable and co
linearity to find out the extent to which such variables can cause variation in the dependent
variable. We have also done Correlation to find the relationship between the independent
variables.From our data analysis, 16-factors were found influencing the dependent variable,
and the data was from the questionnaire which was completed by different people of different
ages, gender, occupation, location. Frequencies, crosstabs, paired t-test, regression analysis
and correlation were used for data analysis. Our analysis showed that 16 of the independent
variables influences the dependent variable which preference of domestic airlines service.
From the regression analysis, we have also found that the value of R square is 0.138. That
means independent variables have 13.8% impact over the dependent variable. In other words,
the dependent variable can be influenced 13.8% by the independent variables. Adjusted R
square is .115 which is close to R square. The test was significant (Sig was 0.00 in ANOVA
table).

1. Introduction:
Air lines industry has always been considered as an attractive sector domestically as well as
globally. There are many airlines companies in Bangladesh. : Biman Bangladesh was finally
air borne on March 7, 1972 with flights to Chittagong and Sylhet and on March 9 to Jessore.
Thus the domestic operation of Biman Bangladesh had began.
The airlines companies which domestically operate in Bangladesh are:

Bangladesh Biman Airlines


Bismillah Airlines
Novoair
Regent Airways
Sky Air
United Airways
US-Bangla Airlines.

In these airlines companies Biman Bangladesh airlines is the only operated by the
government and the other companies are operated privately. All the companies are fighting
with each other to increase the market share. For this the marketing manager are trying to
find out the factors which effect the consumer preference .this paper seek to identify the
factors that influence the consumer perception towards air transport service companies in
Bangladesh.
(http://en.wikipedia.org/wiki/List_of_airlines_of_Bangladesh)

Background:
We all know that Bangladesh is a developing country. As Bangladesh is developing day by
day, so the demand for the air line transportation is also increasing day by day. Bangladesh is
a small country where the distances between the major cities are not large enough for air
transportation to be very effective. In general, roadway is highly congested and accidentprone and railway and waterway are inefficient and slow. But the less improvement of roads
and the waterways as well as imbalanced socio-political conditions of the country people now
a day interested by air travel. So air travel demand is increasing rapidly in Bangladesh
(Euromonitor International, 2013).

As we can see in the graph that at first there were around one hundred thousand people were
traveling in Bangladeshi domestic flights. But as the time went the number of people
traveling via air plane is increasing. In the latest data showed there are around seven hundred
thousand people traveling via air domestically in Bangladesh. In recent time there are many
people in Bangladesh who wants to travel by air rather than the bus, train, launch e.t.c. This
research paper seeks to identify the factors that influence the consumer perception towards air
transport service companies in Bangladesh. There are some factors which encourage
undertaking this research paper. The factors are Branding, Satisfaction, Convenience and
accessibility, staff, customer, reliability and service.
Safety:
A journey by air is much safer and comfortable than a journey by bus, train and launches.
Often we hear about bus and train accidents, sometimes the launches sink into the river in
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Bangladesh. But the air lines accidents are less in comparative to the bus train and launch
accident. And also during the strikes criminals throw cocktail and petrol bombs into the bus
and trains. When people travel in bus or train, they fell a lot of bumping. Because the
conditions of the roads in our country is not good. Besides when passengers travel in airlines
they usually do not feel the bumping just passenger will only feel the bumping when the
plane will be taken off and the time of landing,

(http://fpd-bd.com/wp-content/uploads/2013/04/Road-Accident-Trend.pdf)
Emergency:
The air transport network facilitates in case of emergency (flood, cyclone) delivery the
humanitarian aid relief anywhere in Bangladesh. And also in some cases people illness uses
air ambulance to ensure the swift delivery of medical supplies and organs for transplantation.
Economic growth:
As the economy of the Bangladesh is increasing so the people standard of living is also
increasing. As a result Bangladeshi people per capita income will also increasing. So now
some of the people of Bangladesh prefer travel domestically through air.
Bangladeshs per capita income has touched $1,190, the government-run Bangladesh
Bureau of Statistics (BBS) has said. The current per capita income has risen to $1,190
from $1044 in the fiscal year 2013-14.
Relief from traffic jam:
In our country traffic jam is a big issue. It takes way longer to travel from one place to
another for the traffic jam. Sometimes traffic jams are complete nightmares and it kills a lot
of time. In this scenario air transportation is the best way to travel from one destination to
another. Its the faster, smarter and better way to travel.
Increase of business activity:
As the Bangladesh economy is improving so the business activity in Bangladesh is also
increasing. To grab the increase business opportunity and to operate the business activity
smoothly businessman need to travel over the Bangladesh.
4

Literature Review:
A number of researches are available on customer satisfaction in general and in tourism
industry in particular. Many research works have been done on evaluation of service quality
in aviation industry. Kearney (1986) was the first researcher who evaluated service quality of
airlines industry with the perspective of airlines customer in his doctoral research. Good
service quality results high customer satisfaction level. According to Oliver (1997),
satisfaction is the consumers fulfillment response. It is a judgment that product or service
feature, or the product or service itself provided (or providing) a pleasurable level of
consumption related fulfillment, including levels of under or over fulfillment. So customer
satisfaction has become the leading criterion for determining the quality that is actually
derived to customers through the product / service and by the accompanying servicing
(Vavra, 1997). In the same vain customer satisfaction is essential for corporate survival.
Several studies have found that it costs about five times as much in time, money and
resources to attract a new customers as it does to retain an existing customer. (Naumann,
1995).
So we can say that customer satisfaction is perceived to be productivity tools and sources of
competitive advantage (Reichheld and Sasser 1990; Magrath 1992).

2. Research Problem:
Management decision problem:
How the sales will be increased of the domestic flight in Bangladesh?

Marketing decision problem:


To determine the consumer perception towards the domestic flight in Bangladesh

Specific Market Research Problem:


1.
2.
3.
4.
5.

To identify the factors that influence consumers perception.


To identify which of this factors are most important.
To identify the situation when people travel by airlines domestically.
To identify demographic and psychographic profile of the consumers.
To ascertain whether the consumers perception and profile influence the preference
of domestics flight and ticket purchase intention.

3. Approach to the problem:


4

Graphical Model:
This paper attempts to study the factors affecting consumer attitudes towards domestic flights
in Bangladesh. According to what mentioned above and based on previous of literature and
related studies, we suggests the following model:
Give Passenger personal
Attention
Safety of Flying

Reliability
Reliability of
of
Service
Service

Cases of lost Baggages

Knowledgeable
Adequate
Staff
Staff

H1

Customer
Customer
Loyalty
Loyalty

Friendly
Brand
Brand Preference
Preference
Convenient flight Schedule
Amount of luggage allowed

H2

Promptness of baggage deliver

Satisfaction
Satisfaction

Convenience
Convenience
Amount imposed for overweight
baggage

H3
Convenience of reservation
Promptness in reservation

Ticket
Ticket Reservation
Reservation

H4

Accuracy in reservation
Overweight charge
Ticket Price

Price
Price

Ticket Cancellation fee

Research question & Hypothesis:

H5

Consumer
Consumer
Perception
Perception of
of
Domestic
Domestic Airlines
Airlines
Company
Company

R.Q 01: Does Reliability of Service influences the consumer perception towards the
domestic flight In Bangladesh?
H1: Reliability of Service influence consumer perception towards domestic flight in
Bangladesh.
R.Q 02: Does Staff influence the consumer perception towards the domestic flight In
Bangladesh?
H1: Staffs influence consumer perception towards domestic flight in Bangladesh.
R.Q 03: Does Convenience influence the consumer perception towards the domestic flight In
Bangladesh?
H1: Convenience influence consumer perception towards domestic flight in Bangladesh.
R.Q 04: Does Ticket Reservation influences the consumer perception towards the domestic
flight In Bangladesh?
H1: Ticket Reservation influence consumer perception towards domestic flight in
Bangladesh.
R.Q 05: Does Price influence the consumer perception towards the domestic flight In
Bangladesh?
H1: Price influence consumer perception towards domestic flight in Bangladesh.
R.Q 06: Does Customer satisfaction influence consumer perception towards domestic
airlines services?
H1: Customer satisfaction influence consumer perception towards domestic airlines services.

4. Research Design:
Research design is a framework or blueprint for conducting the marketing research
project .We will conduct both exploratory and conclusive research for this study. Two types
of research design:
Exploratory Research
Qualitative Research

Exploratory Research: In order to find the factors that influence the consumers perception
towards domestic flights in Bangladesh we have used exploratory research. We have used this
research to find out the domestic flights problems in our country and we have tried to find the
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solution by surveying consumers likes and dislikes and their opinion towards the domestics
flights industry of Bangladesh. This exploratory research has helped us to determine the
design and survey of our term paper.
Survey of Experts: Our survey expert Mr. S.M ABU AZMAIN is currently working as Head
of Accounts and Admin in Singapore Airlines, Bangladesh. The industry expert found that the
reliability of service affects consumer perception towards domestic flights in Bangladesh.
Now a days people are more concerned about flight service and its related facility. The
survey expert has advised us to research more on brand images and staff knowledge, because
it manipulates the consumer perception. We also found that, for the lack of proper service
customers are switching brands which is harmful for the airlines company. Airlines
Company now gives more concern towards not only services but also service related
facilities.
Secondary Data Analysis: We have identified

independent variables those are- Give

Passenger personal Attention, Safety of Flying, Cases of lost Baggages, Knowledgeable,


Adequate, Friendly, Convenient flight Schedule, Amount of luggage allowed, Promptness of
baggage deliver, Amount imposed for overweight baggage, Convenience of reservation
,Promptness in reservation, Accuracy in reservation, Overweight charge ,Ticket Price, Ticket
Cancellation fee. We have identified the factors Reliability of service, staff, Convenience,
Ticket Reservation, Price from an international journal.
(Investigating the Effects of Airline Service Quality on Airline Image and Passengers
Future Behavioral Intentions: Findings from Australian international air passengersGive passengers personal attention, safety of flying).
(International journal of marketing studies- staff)
(ASSESSING SATISFACTION: A STUDY ON INTERNATIONAL PASSENGERS
USING NEPAL AIRLINES BY Amar Kumar Mahato, George Herbert Walker School
of Business & Technology, Webster University, Thailand- Ticket Reservation).
Qualitative Research: From qualitative research we have identified the relevant
demographic factors that may have influence on the attitudes of consumers toward domestic
flights. We have identified some demographic profiles of customers; those are gender,
educational qualification, occupation, and average monthly income. Given the exploratory
nature of some aspects of the object, we have identified factors Branding, Satisfaction,
4

Convenience and accessibility, staff, customer, reliability and service. Our honorable course
instructor Md. Farhan Faruqui Sir has helped us identify components as price and
satisfactions. He has also identified the psychographic profile which really helped us to know
more about the survey respondents. We have done group discussion and have identified
factors as ticket reservation and customer loyalty.
Descriptive Research:
We have undertaken a survey to quantify the factors affecting consumer perception towards
domestics flights in Bangladesh. We have examined target customer and have tried to draw a
conclusion whether the factors actually determined the behavior toward domestics flights.
i) Data Analysis:
We will obtain primary data trough survey by using a structured questionnaire.
ii)Description of our questionnaire:
A questionnaire form was used as a tool for gathering data. The questionnaire form was
prepared with the reference of two international journals. In the first part of questionnaire are
questions about demographic information and multiple choice questions about consumer
perception towards domestics flights in Bangladesh, peoples likelihood to get airlines
service and so on. In the second part, a Liker scale containing 5 items (strongly disagree,
disagree, neutral, agree strongly agree).
iii) Scaling and Sampling technique: In the survey questionnaire, we have used Likert
Scale. Sampling technique is the choice of a subset of the people from among a population to
estimate characteristics of the entire population. We have surveyed our relatives, students and
some random office personnel who fell in our desired criteria.
iv)Sample area and sample size: Population can be defined as the entire group of the
people, event, things that the researcher desire to investigate. Data were collected from the
Dhaka City. We used the field survey with paper made form. We surveyed on 200 people who
are different in their age, occupation and others.

5. Data Analysis:
The data of all the independent variables were tested first using Cronbachs alpha reliability
test to assess reliability.
4

We have used descriptive frequencies to find out the frequencies of demographic variables.
We have also used Crosstabs to find out the relationship of the demographic variables with
the dependent variable.
We have also used Paired T test and one Sample T test to find out the accuracy of the
hypothesis. We have also used Regression model to find out if the independent variables
have significant relationship with the dependent variable and co linearity to find out the
extent to which such variables can cause variation in the dependent variable. We have also
done Correlation to find the relationship between the independent variables.

6.Finding, Hypothesis, and Results:


In the analysis of the data gathered from the questionnaire, SPSS version13.0 & 17.0
statistical software for windows war used. Cronbachs alpha test was implemented for the
reliability test of the scale.
In the reliability test, when the significance level is more than .6 then its reliable and if it is
less than .6 then we take the data as not reliable.

From the table no1 we get that the significance level of Reliability of Service is .787. So its
reliable.
Information
Reliability of Service

Alpha
.787

Items
Give Passenger personal Attention
Safety of Flying
Cases of lost Baggages

From the table no 2 we get the significance level of Staff is .754. So it is reliable.
Information
Staff

Alpha
.754

Items
Knowledgeable
Adequate
Friendly

From the table no 3 we get the significance level of Convenience is .755. So it is reliable.
4

Information
Convenience

Alpha
.755

Items
Convenient flight Schedule
Amount of luggage allowed
Promptness of baggage deliver
Amount imposed for overweight
baggage

From the table no 4 we get the significance level of Ticket Reservation is .524. So it is
Information
Ticket Reservation

Alpha
.524

Items
Convenience of reservation
Promptness in reservation
Accuracy in reservation

From the table no 5 we get the of Price is .612. So it is


Information
Price

Alpha
.612

Items
Overweight charge
Ticket Price
Ticket Cancellation fee

7. Frequency:
Among the 200 respondents 76.5% male respondents and 23.5% were female (Table: 6).We
have surveyed respondents from different age group (Table:7).. Among them 18.5% were
from age less than 25 years. 15.5% were from age between 26-35 years, 36% were from age
between 36-45 years and 25.5% were of age between 46-55 years, 4.5% were from age above
55 years. We have surveyed respondents from different educational qualification
(Table:8).2% were from professional qualification, 40.5% were from post graduate level,
49.5% were from graduate level and 3.5% were from School level and 4.5% were from the
no formal education. Our respondents were from different occupation (Table:9).14.5% were
student. 14% were Govt. Employee, 29 % were private employee, 35.5% were business man
and others were 7%. They were also different in average monthly income (Table:10).15.5%
people had monthly income below 15000, 21% people had income 15000-25000, 17% people
had income 25000-35000 and 18.5% had the income of 35000-40000 and 28% more than
45000. Number of family members also varied of our respondents (Table:11).30.5% were
from the family members 1-3,56.5% were from the family members 5-6,13% were from the
family members above 6 members.

8. Cross Tab:
How

frequently do you travel by air? Respondents on basis of gender, we surveyed


about 200 respondents, among them 1.3% male answered daily and no female daily travels on
air plane. 9.2% male once a week and 6.4% female, 54.9% were once a month and 14.9%
female answered once a month. Then 18.3% male answered once a year and 21.3% female
answered once a year. 16.3% male answered more than a year and 21.3% female answered
more than a year. (Table:12).
4

How

frequently do you travel by air? On the basis of occupation, frequency of traveling


by air correlated with occupation. We surveyed students, govt. employees, private employees,
business men & others who are in different occupation. 3.4% students answered daily, 41.4%
once a year and 55.2% more than a year
53.6% govt. employee answered once a month, 25% answered once a year, 21.4% answered
more than a year. 6.9%% private employees answered once a week. 43.1% answered once a
month, 39.7% answered once a year, 10.3% more than a year. 1.4% business men answered
daily, 18.3% answered once a week, 71.8% answered once a month, 8.5% answered once a
year and no one said they travel more than a year. Others answered they travel 50% once a
year and 50% more than a year. (Table:13).
How frequently do you travel by air? On the basis of monthly income, frequency of
traveling by air is correlated. With monthly income of below 15000 tk 3.2% answered daily.
54.8% answered once a year and 41.9% answered more than a year. With monthly income
15000-25000 tk answered 21.4% once a month, 40.5% once a year, 38.1% more than a year.
With monthly income 25000-35000 tk answered 47.1% once a month, 35.3% once a year,
17.6% more than a year. With monthly income 35000-45000 tk 8.1 % answered once a week,
86.5% answered once a month, 5.4% said once a year. With monthly income of more than
45000 tk 1.8% answered daily, 25% answered weekly, 60.7% answered once a month and
12.5% answered once a year. (Table14)

Which airline do you prefer? On the basis of gender, 61.4% male answered they prefer
domestic airline and 38.6% answered international airlines. 51.1% female answered they
prefer domestic airline and 48.9 % answered international airline. (Table: 15).

Which airline do you prefer? On the basis of occupation, frequency of traveling by air
correlated with occupation. We surveyed students, govt. employees, private employees,
business men & others who are in different occupation. 41.4% students answered they prefer
domestic airlines and 58.6% preferred international airlines. 64.3% government employees
answered the prefer domestic airlines and 35.7% answered international airlines. 79.3%
private employees answered domestic airline and 20.7% answered international airlines.
42.3% Business men answered domestic airlines and 57.7% answered international airlines.
In other occupations 59% answered domestic airlines and 41% answered international
airlines. (Table: 16).

Which airline do you prefer? On the basis of monthly income, With monthly income of
below 15000 tk 48.4% answered domestic airlines and 51.6% answered international airlines.
Monthly income 15000-25000 tk 85.7% answered domestic airlines and 14.3% prefer
international airlines. 25000-35000 tk 55.9% answered domestic airlines and 44.1% answered
international airlines. 35000-45000 tk 54.1% answered domestic airlines and 45.9% prefer
4

international airlines. With monthly income of more than 45000 tk 50% prefer domestic
airlines and 50% answered international airlines. (Table: 17).

Are you satisfied with the current domestic airline on the basis of gender,
12.4% male were very satisfied, 69.3% were satisfied, 17% were dissatisfied and 1.3% were
very dissatisfied. On the other hand 14.9% female were very satisfied, 53.2% were satisfied,
31.9% were dissatisfied. (Table: 18).

Are you satisfied with the current domestic airline on the basis of occupation, frequency
of traveling by air correlated with occupation. We surveyed students, govt. employees,
private employees, business men & others who are in different occupation. 3.4% students
were very satisfied, 20.7% were satisfied, 69% were dissatisfied and 6.9% were very
dissatisfied. Then among the government employees 21.4% were very satisfied, 53.6% were
satisfied, 25% were dissatisfied. 82.8% private employees were satisfied and 17.2% were
dissatisfied. Among the business men 50% were very satisfied and 50% were satisfied.
(Table: 19).
Are you satisfied with the current domestic airline on the basis of monthly income, With
monthly income of below 15000 tk answered 25.8% were very satisfied, 29% were satisfied,
45.2% were dissatisfied. Income 15000-25000 tk answered 14.3% were very satisfied, 61.9%
were satisfied, 19% were dissatisfied and 4.8% were very dissatisfied. Income 25000-35000
tk answered 70.6% were satisfied and 29.4% were dissatisfied. Income above 45000 tk
answered 8.9% were very satisfied, 82.1 % were satisfied and 8.9% were dissatisfied. (Table:
20).

9. Hypothesis:
According to the decision rule: accept null hypothesis (H0) if the significant level of the
variable is greater than (0.05) significant level, and reject (H0) if the significant level is equal
or less than (0.05) (Sekaran, 2004)

Measures:
One Sample t-test:
Personal Attention: According to one sample t-test personal attention sample mean is
significantly different from the test value. This is shown in table 21
Safety of Flying: According to one sample t-test safety of flying sample mean is significantly
different from the test value. This is shown in table 22.

Cases of lost baggages: According to one sample t-test cases of lost baggages sample mean
is significantly different from the test value. This is shown in table 23
Knowledgeable: According to one sample t-test knowledgeable sample mean is significantly
different from the test value. This is shown in table 24
Adequate: According to one sample t-test adequate sample mean is significantly different
from the test value. This is shown in table 25.
Friendly: According to one sample t-test friendly sample mean is significantly different from
the test value. This is shown in table 26.
Convenient: According to one sample t-test convenient sample mean is significantly different
from the test value. This is shown in table 27.
Luggage allowed: According to one sample t-test luggage allowed sample mean is
significantly different from the test value. This is shown in table 28.
Fast and accurate baggage delivery: According to one sample t-test fast and accurate
sample mean is significantly different from the test value. This is shown in table 29.
Amount for overweight baggage: According to one sample t-test amount for overweight
baggage sample mean is significantly different from the test value. This is shown in table 30.
Reservation System: According to one sample t-test reservation system sample mean is
significantly different from the test value. This is shown in table 31.
Prompt: According to one sample t-test prompt sample mean is significantly different from
the test value. This is shown in table 32.
Accurate: According to one sample t-test accurate sample mean is significantly different
from the test value. This is shown in table 33.
Price charged for overweight baggage: According to one sample t-test price charged for
overweight baggage sample mean is significantly different from the test value. This is shown
in table 34.
Ticket price: According to one sample t-test ticket price sample mean is significantly
different from the test value. This is shown in table 35.
Cancellation Fee: According to one sample t-test cancellation fee sample mean is
significantly different from the test value. This is shown in table 36.

Paired t-test:

H1: Reliability of Service influence consumer perception towards domestic flight in


Bangladesh.
There is a significant relationship between reliability and perception towards airlines. This is
shown in table 37. H1 is accepted.
From the analysis we have found that there is a significant relationship between reliability
and perception towards airlines. If the domestic airlines give reliable services it influences
customer preference to chose it.
H2: Staffs influence consumer perception towards domestic flight in Bangladesh.
There is a significant relationship between knowledge of staff and perception towards
airlines. This is shown in table 38. H2 is accepted.
From the analysis we have found that the more knowledgeable the stuffs are the more it
increases the perception towards domestic airlines services.
H3: Convenience influence consumer perception towards domestic flight in Bangladesh.
There is a significant relationship between convenience and perception towards airlines. This
is shown in table 39. H3 is accepted.
From the analysis we have found that the more airlines companies provide convenient
services the more it increases perception towards domestic airlines services.
H4: Ticket Reservation influence consumer perception towards domestic flight in
Bangladesh
There is a significant relationship between reservation and perception towards airlines.
This is shown in table 40. H4 is accepted.
From the analysis we have found that the more convenient the reservation system is it
increases the perception towards domestic airlines services.
H5: Price influence consumer perception towards domestic flight in Bangladesh.
There is a significant relationship between price and perception towards airlines. This is
shown in table 41. H5 is accepted.
From the analysis we have found that there is a significant relationship between price and
perception towards airlines.
H6: Customer satisfaction influence consumer perception towards domestic airlines
services.
There is a significant relationship between customer satisfaction and perception towards
airlines. This is shown in table 42. H6 is accepted.

From the analysis we have found that there is a significant relationship between customer
satisfaction and perception towards airlines.

10.Regression
Within the scope of the research examined, a regression analysis has been carried out in order
to determine the factors that affect the preference of customers of domestic airlines services
in Bangladesh. A linier regression analysis has been carried out by identifying which
domestic airlines would you prefer as the dependant variable and reliability of service,
staff, convenience, ticket reservation, price as independent variables. The results are
shown in table-45.
From the regression analysis, we have also found that the value of R square is 1. That means
independent variables have 100% impact over the dependent variable. In other words, the
dependent variable can be influenced 100% by the independent variables. Adjusted R square
is 1 which is exactly R square. The test was significant (Sig was 0.00 in ANOVA table). In
collinearity test independent variable showed less than 10 which individually these variables
without others influence can cause impact on dependent variable which is preference of
domestic airlines service.
It is understood that the independent variables reliability of service, staff, convenience,
ticket reservation, price are important factors for explaining the dependant variable
which airlines do you prefer. It is determined that there is a meaningful relationship
between the dependant variable and the independent variables.

Correlation:
In our research, we try to find out correlation among different variables. That is shown in
table 43.
1) In the case of correlation between knowledgeable staff and reliability, we found they
are strongly positively correlated with each other. (Correlation is .395). People are
very much concern about knowledgeable staff and reliability. If the marketer can
understand the consumer that, domestic airlines companies recruit knowledgeable
stuffs and if people realize that it will very much reliable to travel in domestic airlines
they will be more willing to use it.
2) In the case of correlation between convenience and reliability, we found they are
strongly positively correlated with each other. (Correlation is .316). As convenience
plays a vital role in affecting consumer perception marketer should try to increase
convenience service and accordingly reliability should also be increased. In this way
marketer can create a positive attitude in the minds of consumers through both
convenience and reliability.
3) In the case of correlation between reservation system and reliability, we found they
are strongly positively correlated with each other. (Correlation is .322). As convenient
reservation system helps to create reliability so marketer should try to make more
convenient reservation system.
4

4) In the case of correlation between staff and convenience, we found that they are
strongly positively correlated to each other. (Correlation is .746). If marketer recruits
more knowledgeable staff it will make the service convenient.
5) In the case of correlation between price and reservation, we found they are strongly
positively correlated with each other. (Correlation is .489). Moderate price will make
the reservation system more convenient.

11. Limitation and direction for future research:


The present study may also have the traditional limitations associated with survey
research such as selection error, measurement error, and non-response error. Secondly,
the study was limited in its scope due to time and resources. Factors like price, ticket
reservation need further research. Despite these limitations, this study makes several
contributions towards finding factors that affect consumers perception towards the
domestic flights in Bangladesh. Since this study was limited to 200 respondents,
findings can only used as a guide for further research. The purpose of the next in the
research is to extend it to large sample.

12. Conclusion:
Our study aimed to specify the factors affecting consumers perception towards the
domestic flights in Bangladesh. Given this context, 5-factors, consumer-based likert
scale that contains 16 questions were developed, and a questionnaire was completed
by different people of different ages. Frequencies, crosstabs, paired t-test; regression
analysis and correlation were used for data analysis. Our analysis showed that 5 of the
independent variables influence the dependent variable which prefers the perception
of consumers towards the domestic flights in Bangladesh.

13. Appendix
Table-1
Reliability of service:
Reliability Statistics

Cronbach's
Alpha
.787

N of Items
3

Table-2
Staff:
Reliability Statistics
Cronbach's
Alpha
.754

N of Items
3

Table-3
Convenience:
Reliability Statistics
Cronbach's
Alpha
.755

N of Items
4

Table-4
Reliability Statistics
Cronbach's
Alpha
.524

N of Items
3

Table-5
Reliability Statistics
Cronbach's
Alpha
.612

N of Items
3

Table-6
Gender

Valid

Male
Female

Frequency
153
47

Percent
76.5
23.5

Valid Percent
76.5
23.5

Total

200

100.0

100.0

Table-7
4

Cumulative
Percent
76.5
100.0

Age

Valid

Frequency
37
31

Percent
18.5
15.5

Valid Percent
18.5
15.5

Cumulative
Percent
18.5
34.0

36-45 years

72

36.0

36.0

70.0

46-55 years

51

25.5

25.5

95.5

4.5

4.5

100.0

200

100.0

100.0

Less than 25 years


26-35 years

55 year or more
Total

Table-8
qualification

Valid

Frequency
9
7

Percent
4.5
3.5

Valid Percent
4.5
3.5

Cumulative
Percent
4.5
8.0

Graduate Level

99

49.5

49.5

57.5

Post graduate level

81

40.5

40.5

98.0
100.0

No formal education
School level

Professional qualification
Total

2.0

2.0

200

100.0

100.0

Table-9
Occupation

Valid

Frequency
29
28

Percent
14.5
14.0

Valid Percent
14.5
14.0

Cumulative
Percent
14.5
28.5

Private employee

58

29.0

29.0

57.5

Business man

71

35.5

35.5

93.0

Others

14

7.0

7.0

100.0

200

100.0

100.0

Student
Govt.employee

Total

Table-10
Monthly income

Valid

<15000tk
15000-25000tk

Frequency
31
42

Percent
15.5
21.0

Valid Percent
15.5
21.0

Cumulative
Percent
15.5
36.5

25000-35000tk

34

17.0

17.0

53.5

35000-45000tk

37
56

18.5
28.0

18.5
28.0

72.0
100.0

>45000tk

Total

200

100.0

100.0

Table-11
Size

Valid

1-3 members
4-6 members
above 6 members
Total

Frequency
61
113

Percent
30.5
56.5

Valid Percent
30.5
56.5

Cumulative
Percent
30.5
87.0

26

13.0

13.0

100.0

200

100.0

100.0

Table-12

Table-13

Table-14

Table-15
4

Table-16

Table 17
4

Table 18

Table 19

Table 20

Table 21
4

One-Sample Test
Test Value = 4

t
I think the domestic
airlines give passengers
personal attention

Sig. (2tailed)

df

-6.206

199

.000

Mean
Difference

95% Confidence Interval of


the Difference
Lower

-.535

Upper
-.70

-.37

Table 22
One-Sample Test
Test Value = 4

t
I think the domestic
airlines ensure safety of
flying to the passengers.

Sig. (2tailed)

df

-5.679

199

.000

Mean
Difference

95% Confidence Interval of


the Difference
Lower

-.415

Upper
-.56

-.27

Table 23
One-Sample Test
Test Value = 4

t
I think the domestic
airlines ensure proper
handling the cases of
lost baggages

-6.948

Sig. (2tailed)

df
199

.000

Mean
Difference
-.605

95% Confidence Interval of


the Difference
Lower

Upper
-.78

-.43

Table 24
One-Sample Test
Test Value = 4

t
I think the staffs are
knowledgeable

Sig. (2tailed)

df

-11.418

199

.000

Mean
Difference
-.950

95% Confidence Interval of


the Difference
Lower

Upper

-1.11

-.79

Table 25
One-Sample Test
Test Value = 4

t
I think the staffs are
adequate

Sig. (2tailed)

df

-11.943

199

.000

Mean
Difference
-.900

95% Confidence Interval of


the Difference
Lower

Upper

-1.05

-.75

Table 26
One-Sample Test
Test Value = 4

t
I think the staffs are
friendly

-8.833

Sig. (2tailed)

df
199

.000

Table 27
4

Mean
Difference
-.585

95% Confidence Interval of


the Difference
Lower

Upper
-.72

-.45

One-Sample Test
Test Value = 4

t
I think there is a scope
of convenient flight
schedule for consumers
in domestic airlines

Sig. (2tailed)

df

-12.587

199

.000

Mean
Difference
-1.095

95% Confidence Interval of


the Difference
Lower

Upper

-1.27

-.92

Table 28
One-Sample Test
Test Value = 4

t
I think the amount of
luggage allowed to
carry in the domestic
flights are satisfactory

Sig. (2tailed)

df

-15.079

199

.000

Mean
Difference
-1.150

95% Confidence Interval of


the Difference
Lower
-1.30

Upper
-1.00

Table 29
One-Sample Test
Test Value = 4

t
I think the domestic
airlines provide fast and
accurate baggage
delivery services

-11.685

Sig. (2tailed)

df
199

.000

Table 30
4

Mean
Difference
-.920

95% Confidence Interval of


the Difference
Lower
-1.08

Upper
-.76

One-Sample Test
Test Value = 4

t
I think the domestic
airlines should impose
moderate amount for
overweight baggages.

Sig. (2tailed)

df

-12.738

199

.000

Mean
Difference
-1.035

95% Confidence Interval of


the Difference
Lower

Upper

-1.20

-.87

Table 31
One-Sample Test
Test Value = 4

t
I think the reservation
system in domestic
airlines is convenient

Sig. (2tailed)

df

-8.024

199

.000

Mean
Difference

95% Confidence Interval of


the Difference
Lower

-.515

Upper
-.64

-.39

Table 32
One-Sample Test
Test Value = 4

t
I think the reservation
system of domestic
airlines is prompt

-7.092

Sig. (2tailed)

df
199

.000

Mean
Difference
-.690

95% Confidence Interval of


the Difference
Lower

Upper
-.88

-.50

Table 33
One-Sample Test
Test Value = 4

t
I think the reservation
system of domestic
airlines is accurate

Sig. (2tailed)

df

-15.100

199

.000

Mean
Difference
-1.160

95% Confidence Interval of


the Difference
Lower
-1.31

Upper
-1.01

Table 34
One-Sample Test
Test Value = 4

t
Price charged by
domestic airlines for
overweight baggages is
low

Sig. (2tailed)

df

-15.600

199

.000

Mean
Difference
-1.045

95% Confidence Interval of


the Difference
Lower

Upper

-1.18

-.91

Table 35
One-Sample Test
Test Value = 4

t
Domestic airlines ticket
price is low

-15.561

Sig. (2tailed)

df
199

.000

Table 36
4

Mean
Difference
-1.115

95% Confidence Interval of


the Difference
Lower
-1.26

Upper
-.97

One-Sample Test
Test Value = 4

t
Ticket cancellation fee
is low

Sig. (2tailed)

Df

-11.732

199

Mean
Difference

.000

95% Confidence Interval of


the Difference
Lower

-.975

Upper

-1.14

-.81

Table 37
Paired Samples Test
Paired Differences
Std.
Std.
Error
Mean Deviation Mean
Pair airlines do you
1 prefer Mean_Reliability

2.07167

95% Confidence
Interval of the
Difference
Lower

Upper

1.21174 .08568 -2.24063 -1.90270

Sig. (2df tailed)

- 199
24.178

.000

Table 38
Paired Samples Test
Paired Differences

Std.
Mean Deviation
Pair airlines do you
1
prefer 1.77833
Mean_Staff

Std.
Error
Mean

95% Confidence
Interval of the
Difference
Lower

Upper

1.10946 .07845 -1.93304 -1.62363

Sig. (2df tailed)

- 199
22.668

.000

Table 39
Paired Samples Test
Paired Differences
Std.
Std.
Error
Mean Deviation Mean
Pair airlines do you prefer
1 - Mean_Convenience 1.54000

95% Confidence
Interval of the
Difference
Lower

Upper

1.08509 .07673 -1.69130 -1.38870

Sig.
(2df tailed)

- 199
20.071

.000

Table 40
Paired Samples Test
Paired Differences
Std.
Std.
Error
Mean Deviation Mean
Pair airlines do you
1 prefer Mean_Reservation

1.80167

95% Confidence
Interval of the
Difference
Lower

Upper

.97775 .06914 -1.93800 -1.66533

Sig. (2df tailed)

- 199
26.059

.000

Table 41
Paired Samples Test
Paired Differences

Std.
Mean Deviation
Pair airlines do you
1 prefer 1.54500
Mean_Price

Std.
Error
Mean

95% Confidence
Interval of the
Difference
Lower

Upper

.87727 .06203 -1.66732 -1.42268

Sig. (2df tailed)

- 199
24.906

.000

Table 42
Paired Samples Test
Paired Differences
Std.
Std.
Error
Mean Deviation Mean
Pair airlines do you prefer -.4825
1 - Mean_Satisfaction
0

95% Confidence
Interval of the
Difference
Lower

Upper

.62682 .04432 -.56990 -.39510

Table 43

Sig. (2df tailed)

- 199
10.886

.000

Correlations
Mean_Reliab Mean_St Mean_Conveni Mean_Reserva Mean_Pri
ility
aff
ence
tion
ce
.395**

.316**

.322**

.269**

.000

.000

.000

.000

200

200

200

200

200

Pearson
Correlati
on

.395**

.746**

.105

-.249**

Sig. (2tailed)

.000

.000

.137

.000

200

200

200

200

200

.316**

.746**

.252**

.040

Sig. (2tailed)

.000

.000

.000

.578

200

200

200

200

200

.322**

.105

.252**

.489**

Sig. (2tailed)

.000

.137

.000

200

200

200

200

200

Pearson
Correlati
on

.269**

-.249**

.040

.489**

Sig. (2tailed)

.000

.000

.578

.000

200

200

200

200

Mean_Reliabili Pearson
ty
Correlati
on

Sig. (2tailed)
N
Mean_Staff

Mean_Conveni Pearson
ence
Correlati
on

Mean_Reservat Pearson
ion
Correlati
on

Mean_Price

**. Correlation is significant at the 0.01 level (2-tailed).

Table 44

.000

200

Variables Entered/Removed
Model
1

Variables
Entered

Variables
Removed

Mean_Price,
Mean_Conve
nience,
Mean_Reliabi
lity,
Mean_Reserv
ation,
Mean_Staffa

Method
. Enter

a. All requested variables entered.

Table 45
Model Summary

Model

1.000a

Adjusted R

Std. Error of the

Square

Estimate

R Square
1.000

1.000

.00000

a. Predictors: (Constant), Mean_Price, Mean_Convenience,


Mean_Reliability, Mean_Reservation, Mean_Staff

Table 46
ANOVAb
Model
1

Sum of Squares
Regression
Residual
Total

df

Mean Square

63.964

12.793

.000

194

.000

63.964

199

Sig.
.

a. Predictors: (Constant), Mean_Price, Mean_Convenience, Mean_Reliability, Mean_Reservation,


Mean_Staff
b. Dependent Variable: Mean_DV

.a

Table 47
Coefficientsa

Model

Unstandardized

Standardized

Coefficients

Coefficients

1 (Constant)

Std. Error

Beta

Collinearity Statistics
t

Sig.

Tolerance

VIF

-4.899E-11

.000

-.020 .984

Mean_Reliability

.188

.000

.323 3.865E8 .000

.677

1.476

Mean_Staff

.188

.000

.288 2.303E8 .000

.302

3.315

Mean_Convenience

.250

.000

.383 3.429E8 .000

.379

2.641

Mean_Reservation

.187

.000

.270 3.258E8 .000

.688

1.453

Mean_Price

.187

.000

.261 2.826E8 .000

.556

1.799

a. Dependent Variable: Mean_DV

Table 48
Collinearity Diagnosticsa
Variance Proportions
Condi
Mo Dimen Eigenv tion (Const Mean_Reli Mean_ Mean_Conve Mean_Reser Mean_P
del sion
alue Index ant)
ability
Staff
nience
vation
rice
1

5.772 1.000

.00

.00

.00

.00

.00

.00

.111 7.202

.00

.00

.06

.06

.04

.12

.048 10.98
4

.00

.78

.00

.09

.06

.02

.031 13.75
0

.10

.01

.00

.01

.89

.25

.027 14.53
5

.48

.06

.04

.31

.01

.14

.011 23.21
0

.42

.15

.90

.53

.00

.47

a. Dependent Variable: airlines do you prefer

References:
1) Jin-Woo Park, Rodger Robertson, Cheng-Lung Wu. Investigating the Effects of
Airline Service Quality on Airline Image and Passengers Future Behavioral
Intentions. The Journal of Tourism Studies16 (1): 6, 2005.
2) Amar Kumar Mahato, "Assessing Satisfaction: A Study on International Passengers
Using Nepal Airlines," pp.46.
3) International Journal of Marketing Studies, vol-6, p.69.2
4)Biman Bangladesh Airlines http://www.travelkd.com/2014/12/domestic-flight-airfareticket-price-of-biman-bangladesh-airlines.html

1. Dhaka-Chittagong domestic flight airfare/ticket price:


Super
Saver:
Economy
Saver:
Economy
Flexible:
Business
Saver:
Business Flexible: BDT 8000
2.

BDT
BDT
BDT
BDT

4000
4700
5500
7000

Dhaka

Sylhet
domestic
flight
Super
Saver:
Economy
Saver:
Economy
Flexible:
Business
Saver:
Business
Flexible:

airfare/ticket
BDT
BDT
BDT
BDT
BDT

price:
3200
3700
4200
5900
6900

3. Dhaka-Cox's

Bazar
domestic
flight
Super
Saver:
Economy
Saver:
Economy
Flexible:

airfare/ticket
BDT
BDT
BDT

price:
5500
6000
6500

4. Dhaka-Barisal

domestic
Super
Economy
Economy

flight
Saver:
Saver:
Flexible:

airfare/ticket
BDT
BDT
BDT

price:
3000
3500
4000

5. Dhaka-Jessore

domestic
Super
Economy
Economy

flight
Saver:
Saver:
Flexible:

airfare/ticket
BDT
BDT
BDT

price:
3500
4000
4500

airfare/ticket

price:

6. Dhaka-Rajshahi

domestic

flight
4

Super
Economy
Economy
7. Dhaka-Saidpur

domestic
Super
Economy
Economy Flexible: BDT 4500

Saver:
Saver:
Flexible:
flight
Saver:
Saver:

Regent Airways: http://www.flyregent.com/core/fare_chart

Dhaka-Chittagong
Fare: 4000
Dhaka- Coxs Bazaar
Fare: 5800

US Bangla airlines: http://www.us-banglaairlines.com/fares/

Dhaka-Chittagong
Business Class
8000/8500

Regular Economy
7000/7500

Restricted Economy
5500/6500

Dhaka-Jessore
Business Class

Regular Economy

6500/7000

5500/6000

Restricted Economy
4400/5000

Dhaka -Saidpur
Business Class
9000/9500

Regular Economy
7500/8000

Restricted Economy
5500/6500

Dhaka- Coxs Bazaar


Business Class
9500/10000

Regular Economy
8000/8500

Restricted Economy
5000/5900
4

BDT
BDT
BDT
airfare/ticket
BDT
BDT

3500
4000
4500
price:
3500
4000

Dhaka-Shylet
Business Class
7000/7500

Regular Economy
6000/6500

Restricted Economy
4700/5300

Novoair: https://www.flynovoair.com/trvl_fare_chart.php?csec=4&cpage=1

Dhaka Chittagong:
Fair- 7400
Dhaka- Coxs Bazaar
Fair- 8400
Dhaka-Shylet
Fair- 5700
Dhaka-Jessore
Fair-5700
United Airwayshttp://www.uabdl.com/fare.html

SR.

DOMESTIC SECTOR

FARE STARTS FROM


ONEWAY*

RETURN*

DHAKA to CHITTAGONG

BDT 3800

BDT 7600

DHAKA to COX'S BAZAR

BDT 5300

BDT 10600

DHAKA to SYLHET

BDT 4250

BDT 8500

DHAKA to JESSORE

BDT 3500

BDT 7000

DHAKA to SAIDPUR

BDT 5175

BDT10350

DHAKA to RAJSHAHI

BDT 4250

BDT 8500

COX'S BAZAR to CHITTAGONG

DHAKA to BARISAL

BDT 4250

BDT 8500

DHAKA to ISHWARDI

BDT 3425

BDT 6850

Questionnaire
Dear respondent, we are the students of East West University from BBA Department. We are
conducting a research to identify the Consumer Perception towards Domestic Flights in
4

Bangladesh Please spare some time to answer the following questions. The information provided
by you is purely for research purposes and will be kept strictly confidential.

1. Gender:
a. Male
b. Female
2. Age:
a. Less than 25 years
d. 46-55 years
3. Educational qualification:
a. No formal education

b. 26-35 years

c. 36-45 years

e. 55 year or more
b. School level

Graduate level

c.

d. Post graduate level

e. Professional qualification
4. Occupation:
a. Student
b. Govt. employee
Business man
e. Others
5. Average monthly income:
a. >15000tk
b. 15000-25000tk

c. private employee

c. 25000-35000tk

d.

d.

35000-45000tk
e. <45000tk
6. Family size:
a. 1-3
b. 4-6 members
c. above 6 members
7. How frequently do you travel by air?
a. Daily b. Once a week c. Once a month d. Once a year e. More
than a year
8. Would you recommend others to use domestic airlines
services?
(a) Definitely (b) Probably (c) Maybe (d) Probably will not (e)
Definitely will not
9. What airlines do you prefer?
(a) Domestic airlines
(b) International airlines
10.
Are you satisfied with the current domestic airlines?
a. Very satisfied
b. Satisfied
c. Dissatisfied
d. Very
dissatisfied

11. Will you go in this airline again?


(a) Yes (b) No

12. Do you like clubbing?


(a) Yes (B) No
13. What type of TV channel do you like?
(a) Entertainment channels (b) Movie channels (c) News channels
(d) Religious channels (e) Others..(Please specify)
14. What type of Movie you like?
(a) Romantic (b) action (c) comedy (d) others
(Please specify)
15. How you spend your leisure time?
(a) By watching TV (b) By playing games (c) By doing workouts (d)
By reading (e) Others (Please specify)
16. How do you like to travel?
(a) Via bus (b) Via train (c) Via private transport (d) Via plane (e) Via
boats (f) others
(Please specify)

Stron
Statement

Strongly

Disagree Neutral

Agree

gly

Disagree(1)

(2)

(4)

Agree

(3)

(5)
I think the domestic airlines give RS1
passengers personal attention.
I think the domestic airlines ensure RS2
safety of flying to the passengers.
I think the domestic airlines ensure RS3
4

proper handling the cases of lost


baggages
I think the staffs are knowledgeable
I think the staffs are adequate
I think the staffs are friendly
I think there is a scope of convenient

S1
S2
S3
C1

flight schedule for consumers in


domestic airlines
I think the amount of luggage
allowed to carry in the domestic
flights are satisfactory

C2

I think the domestic airlines provide C3


fast and accurate baggage delivery
services
I think the domestic airlines should C4
impose

moderate

amount

for

overweight baggages.
I think the reservation system in TR1
domestic airlines is convenient
I think the reservation system of TR2
domestic airlines is prompt
I think the reservation system of TR3
domestic airlines is accurate
Price charged by domestic

airlines P1

for overweight baggages is low


Domestic airlines ticket price is low

P2

Ticket cancellation fee is low

P3

:: The End ::