Moderating role of switching cost on the relationship between consumer values and purchase intention for ancillary services among Chinese airline passengers

Ancillary services have emerged as pivotal components of airlines’ revenue streams worldwide, encompassing a diverse range of offerings beyond base fares. However, limited research examines the factors influencing passengers’ intentions to purchase these services, especially in the context of Chinese airlines. This research explores the factors influencing consumers’ intentions to engage with and purchase ancillary services. This research aimed to investigate how perceived consumer values influence passengers’ purchase intentions for airline ancillary services, with the moderating effect of switching costs. The research bridges gaps in academic literature and the aviation industry by examining consumer perceptions and intentions in regard to airline ancillary services. In light of the theory of consumption values (TCV) and switching costs, the researcher surveyed 387 passengers who previously used ancillary services from Chinese airlines. Data were collected through an online questionnaire and analyzed using partial least squares structural equation modeling (PLS-SEM). The analysis included both measurement and structural model evaluations to ensure validity and reliability. Results revealed a positive relationship between consumption values (functional, emotional, social, conditional, and epistemic) and the intention to purchase ancillary services. Furthermore, switching costs strengthened the links between functional, emotional, and social values and purchase intentions. This research holds significant contributions in several respects. It offers critical insights for airlines on how to strategically position ancillary services to better cater to Chinese passengers. A key practical implication is the need for airlines to prioritize personalization and tailor their ancillary services to meet the specific preferences and expectations of their target markets. By enhancing perceived value through customized services, airlines can enhance passenger perceived value and drive ancillary revenue growth. The findings also revealed the importance of the Theory of Consumption Values (TCV) and switching costs in understanding passengers' perceptions and behaviors. These findings provide a robust framework for airlines to optimize their ancillary service strategies and inform future research in the field.

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