Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Impact of Service Marketing Mix Factors on Thai Passengers Selecting Decision towards Domestic Low Cost Airlines Rangsan Nochai* and Titida Nochai** Nowadays, the low cost airlines are also the popular for Thai domestic passengers and growing fast. Thailand has 2 major low cost airline providers, namely Nok Air and Thai Air Asia. Each airline has been trying to be lower the costs and good service in order to meet consumer’s need. This research studies about the impact of service marketing mix factors toward Thai domestic passengers in selecting domestic low cost airlines. A sample survey is conducted during May 2014 at Don Mueang International airport. Convenience sampling with questionnaires are used to collect data from 390 Thai passengers who live in Bangkok and have ever used airline transportation to travel within 6 months ago. Data is analyzed by using Logistic Regression Analysis at 0.05 level of significance, and results of the study shown that the service marketing mix factors influence Thai passengers selecting decision towards domestic low cost airline such as airline’s reputation, cheaper ticket prices/fares, no additional charges, attractive promotion campaign, advertising and public relation, call center for providing advices, friendliness cabin crew, new modern aircraft, and cabin seat comfort. Keywords: Logistic Regression Analysis, Low Cost Airline, Service Marketing Mix JEL Codes: 1. Introduction Low Cost Airline (LCA) business in Asia has rapidly grown since recent years. Despite significant development of some airlines, overall situation of business is not promising due to economic crisis that affects both domestic and international transportation (Voathai, 2012). In Thailand, three Low Cost Airlines are allowed to operate due to the deregulation of the domestic airline industry. One-Two Go was the first LCA, taking off in December 2003. But the One-two-go brand was retired in July 2010 and the aircraft rebranded as orient Thai Airlines. Thai Air Asia was the second airline, flying since February 2004. The third airline was Nok Air, starting the operation in July 2004. During the past five years, LCA in Thailand drastically increased their competitive capacities, gaining significant market share at the expense of full service players. According to the International Air Transport Association (IATA), Thai airlines have been competitive during the past five years (2009-2013), in line with global trends. Overall revenue growth for Thai airline players was 9%, however most of the growth was from low cost airlines, whose average revenue growth was 31.5% compared to low 6.9% growth for full service players. Though full service airlines currently dominate the market, * Rangsan Nochai, Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Thailand, Email: knrangsa@kmitl.ac.th **Titida Nochai, Vincent Mary School of Science and Technology, Assumption University, Samutprakarn, Thailand, Email: titida@scitech.au.edu Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 LCA are growing rapidly and reaping market share from conventional players. In 2013, low cost airlines held 46% of Thai airline market share (calculated from revenue received from domestic routes), while full service airlines held 54%. Thai Airways, a full service airline, still leads the market with the highest domestic market share at 31.6%, followed by Thai Air Asia and Nok Air, Thai low cost airlines, at 23.2% and 22.7%. From a market share growth perspective, during 2011-2013 low cost airlines' market share growth was 9%, while full service airlines' market share growth dropped by 6%. The player with the highest market share growth was Nok Air at 16.5% (Srisumran and Sintanabodee, 2014). LCA become strategic move of airline business as companies reduce irrelevant expenses such as crew uniform and in-flight catering so tickets can be offered at competitive price. Moreover, tickets can be sold in advance via internet so company can efficiently manage flight schedules and minimize risk of empty seats. Low cost airlines have always changed marketing strategies to survive in the business and fulfill customers’ needs (Charoensettasilp and Wu, 2013). Each LCA needs their own business marketing strategy as marketing mix factors (product, price, place, and promotion) but it is not enough to support airline to meet with success. Therefore, business strategies focus on service marketing mix factors (product, price, place, promotion, people, process, and physical evidence). People are the one of essential ingredient to any service provision is the use of appropriate staff and people. Process is the systems used to assist the organization in delivering the service and Physical Evidence is the element of the service mix which allow the consumer to make judgments for repurchase on the organization’s goods and services. These service marketing mix factors are the factors that can lead the successful through the organization (Nochai, 2013). Service marketing strategy is considered controllable factor that airlines can apply to enhance customer satisfaction (Kotler, 2003). Based on these reasons, this research will focus on a study of impact of service marketing mix factors on Thai passengers selective decision towards domestic low cost airline; Nok Air and Thai Air Asia, and to compare and analyze each factor of service marketing mix of Thai passenger in relation to service of domestic low cost airlines. Research findings can be applied as basic insights and guidelines for market planning to ensure fulfillment of customer satisfaction and brand loyalty in the long run. 2. Literature Review Different theories and models associated with the independent variables and dependent variable will be reviewed to establish a conceptual framework of this research. 2.1 Service Marketing Mix Factors Careful management of product, price, place, and promotion will clearly also be essential to the successful marketing of services. However, the strategies for the 4Ps require some modifications when applied to services because services are usually produced and consumed simultaneously. Customers are often present in the firm’s factory, interact directly with the firm’s personnel and are actually part of the service production process. Further, services are intangible; customers will often be looking for any tangible cue to help them understand the nature of the service experience (Zeithaml et al, 2006). The common service marketing mix (7P’s) platforms are shown in Table 1. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Table 1: Common Service Marketing Mix (7P’s) Platforms Service Marketing Mix Controllable variables Factors Product Quality, Features, Options, Style, Packaging, Sizes, Services, Returns, Warranties, and Brand Price List price, Discounts, Allowances, Payment period, Credit terms, and Differentiate Place Channels, Coverage, Location, Inventory, Transport, Intermediaries, and Managing channels Promotion Advertising, Personal Selling, Sales Promotion, Publicity, and Internet/web strategy. People Service Provider, Customer being serviced, Other employees and customers Process Policies & Procedures, Flow of activities, Number of steps, Factory/Delivery cycle time, Training & Rewarding system, and Customer involvement Material used, Arrangement of objects, Lighting/Shadows, Physical Evidence Color, Temperature, Noise, and Other tangibles such as reports, business cards, statement guarantees, etc. Source: Zeithaml, Bitner, and Gremler, 2006, pp.26. 2.1.1 Product A product can be an idea, a service, a goods or any combination of these three (Pride & Ferrell, 1989). Product is defined as the goods-and-services combination the company offers to the target market (Kotler & Armstrong, 2001). Moreover, product has various variables such as product variety, quality, design, features, brand name, packaging, sizes, warranties, returns (Kotler, 2003). Product is the first element of the marketing mix that represents the basic offering being made to consumers, which consists of product variety, quality, design, features, brand name, packaging, size, warranties, and returns (Kotler and Keller, 2006). 2.1.2 Price Price is defined as the amount of money or some product or service, given in exchange for something in its price. In other word, price is exchanged for the product (Zikmund and Amico, 1996). In term of marketing mix, price consists of list price, discounts, allowances, payment period, and credit term, which marketers have to consider (Kotler & Keller, 2006). Price is typically one of the important factors influencing demand for goods or service (Teas and Agarwal, 2000). Moreover, price has a positive effect on perceived quality, but negative effect on value to buy. When setting the price, the marketers have to consider how consumer perceptions on price and how these perceptions affect consumers’ purchasing decision (Kent, 1996). A consumer compares products on cost and on utility they expect to come from the product features (Assael, 1993). Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 2.1.3 Place Place is the marketer’s strategy for making a product available and can influence whether and when customers encounter the product. A product that is widely available or easy to buy will enter the consideration set of more consumers. Availability is especially important for routine and limited decision making. The types of channels through which a product is offered also influence consumers’ perception of the product’s image (Churchill and Peter, 1998). 2.1.4 Promotion Promotion is about communicating with the consumer, and about persuading people to try our product or service. In addition, it is usually much more concerned with attitude change. Because attitudes are learned, promotional activities can offer new information to the consumer. Promotion consists of sales promotion, advertising, sales force, public relationship, and direct marketing (Kotler & Keller, 2006). The objective of promotion strategies should be related the product to the consumer’s self-concept. If the promotion strategy effectively connects the product information to consumers’ personal goal and values, as well as, desired self-relevant consequences within the context of personal situations, it will be perceived as personally relevant. Messages, which are personally relevant, are more likelihood lead to increased interest, positive attitudes, positive purchase intentions, and ultimately purchase behavior (Timothy, 1995). 2.1.5 People People are an essential ingredient in service provision; recruiting and training the right staff is required to create a competitive advantage. Customers make judgments about service provision and delivery based on the people representing organization. People are one of the few elements of the service that customers can see and interact with. Staffs require appropriate interpersonal skills, attitude, and service knowledge in order to deliver a quality service (learnmarketing.net, 2011). 2.1.6 Process Process is the actual procedures, mechanisms, and flow of activities by which the goods and services are delivered and are classified among operating systems. The actual delivery steps that the customer experiences, or the operational flow of the service, also give customers evidence on which to judge the goods and service (Zeithaml et al. 2006). 2.1.7 Physical Evidence The physical environment of the service can clearly affect customer’s perceptions of their service experience. The environmental dimensions of the service would include the ambient conditions (temperature, air quality, noise, music, etc.) and the utilization of the space (equipment, layout, furnishing), as well as any signs, symbols and artefacts (Zeithaml et al, 2006). Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 2.2 Service Marketing mix in airlines industry Services are deeds, processes, and performance. Services are distinguished from products mainly because they are generally produced at the same time as they are consumed, and cannot be stored away or taken. An enhanced marketing mix needs to be deployed. It’s not about simply reaching out to customers with the right service. But, it’s also about creating that right desire to possess the service. 4P’s of marketing mix and 3P’s of Service Marketing Mix are (1) Product mix --- design, quality, range, brand name, features which give a feel for the “product” inside a service wrapper. Consumers are demanding not products, or features of products but the benefits they will be offered. The airline product includes of two types of service: (a) On the ground services. (b) In-Flight services. (2) Price mix --- list price, discounts, commissions, surcharges, extras, premium pricing, value for money pricing, cheap value pricing, low cost pricing, apex fares. (3) Place mix --- distribution channels, methods of distribution, coverage, location, online 24 hour reservation system, consolidation, tour operator/travel agent, affiliated with companies. (4) Promotion mix --- advertising, airlines advertisement need to keep in mind the image of country, the scenic beauty, tourist attractions, rich cultural heritages or which would attract number of tourists. (a) Publicity, the pro, receptionist, travel agents, media people are very important people in publicizing the business. (b) Sales promotion, the travel agents, tour operators, frontline staffs contribute a lot to the promotion of airlines business. (c) Salesmanship, word of mouth “Customer loyalty ladder”. (5) People mix --- competence, reliability, caring attitude, responsiveness, Initiative, problem solving ability, goodwill. (6) Process mix --- reservation, flight information, facilities at the airport, baggage handling, meal service, flight entertainment, deliver quality service. (7) Physical evidence mix --- booking offices or ticket counter, paper work, brand logo, Tickets, inflight: aircraft, seating configuration, good inner-exteriors, cleanliness, uniforms, ambience, baggage, labels or tag (Ghosh, 2009). 2.3 Related research Chayphan (2008) studied the relationships between servicing market factors and passengers’ satisfaction with on board beverage service of Thai Airways International Public Company Limited. The study reveals that overall opinion of passengers about on board beverage service of Thai Airways International Public Company Limited and servicing market factors such as Product, Price, Place, People and Physical Evidence are highly agreed apart from promotion which overall is fairly agreed. Passengers’ satisfaction with on board beverage service of Thai Airways International Public Company Limited is high both for beverages and services. Comparison of passengers’ satisfactory level with on board beverage service of Thai Airways International Public Company Limited according to personal basic factors shows that passengers with different basic personal factors such as gender, education, occupation and income have different levels of overall satisfaction with on board beverage service of Thai Air- ways International Public Company Limited at 5 percent significance level. Relationships between servicing market Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 factors which consist of Product, Price, Place, Promotion, People, Physical Evidence and Process and passengers’ satisfaction with on board beverage service of Thai Airways International Public Company Limited are positively correlated at 5 percent significance level in all aspects. Sripromnil (2008) studied the factors on marketing mix affecting customers’ final decisions on airline services of airport authority of Thailand cooperation in Muang district, Chiang Mai. The study reveals that the customers’ final decisions were at a highest level in term of the product and the staff’s services whereas their marketing promotion was at a lowest level. As compared with each aspect, it was stated that airline reputation and imaged were at a highest level in terms of the product. In terms of price, clarified airline tickets were at a highest level. In terms of place, easy-to-buy airlines tickets were at highest level. In terms of the marketing promotion, changeable flight schedules with no charge of fees were at a highest level. In terms of the process, on-time schedules of embarking and landing flights were at a highest level. In terms of the physical characteristics, modern airline equipments were at a highest level. In terms of the staffs’ services, the staffs’ neat dressing, and their service mind were at a highest level. Charoensettasilp and Wu (2013) studied attitude and needs of Thai people in selecting domestic low-cost airlines. 400 randomly selected samples include Thai people living in Bangkok and used to travel by airlines. Research methodology includes random convenience sampling technique that use questionnaire to gather data. At significance level of 0.05, demo- graphic factors including gender, age, education level, monthly income, and occupation do not affect attitude and needs of Thai people in selecting domestic low-cost airlines. However, service marketing mix (7P’s) influence attitude and needs of Thai people in selecting domestic low-cost airlines. Place mostly affects attitude and needs of Thai people in selecting domestic low-cost airlines, following by Product, People, Process, and Physical Evidence which demonstrate similar ranking, while Price and Promotion are among the bottom ranking. Snyder (2014) studied customer satisfaction at low cost airlines: A case study of Jetstar Pacific Airlines (JPA) mentioned that the significant characteristics which are applied by LCA to achieve the success will be described as follows: (1) Fuel hedging: Fuel is one of the largest operating costs of airlines. When airlines believe that the fuel price won’t drop in the future, they can sign a contract to buy for a period of time at the current price. In the future, if the fuel price increase, they get benefit, in contrast they paid the higher fuel prices. (2) More seats: The LCA can sale the cheaper fare but they can still increase revenue by arranging more passengers on the plane. For example, JPA reorganizes the Boeing B737-400 aircraft configuration to accommodate 168 passengers, while other FCA remains the configuration at 144 or 150 passenger seats. (3) Pay for additional demands: LCA cuts off free food and drinks, instead of the customer to pay for those services. (4) Similar aircraft configuration: Using a unique aircraft type and configuration to minimize the cost of training, maintenance, and repair. (5) Using cheaper airport: They use the small airport, little attention therefore the cost of parking and related services are lower. (6) Online ticket: LCA sells tickets online or over the phone. It helps reduce the marketing cost, agent commission cost, and ticket printing cost. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 (7) Flexible ticket prices: The ticket prices are extremely flexible, which is offered depending on the needs of passengers. Normally, the sooner buying the ticket, the lower price will be applied and as close to departure, the higher ticket price. Some time the cheap ticket at the last minute when the aircraft has a lot of available seats. (8) Short turnaround time: Reduce the ground time and increase flight time will be a considerable cost savings for airlines. Adapting this aspect, LCA implements appropriate solution. For example, pilots perform transit check; cabin crews carry out cleaning job; aircraft interior is simply furnished and equipped leather seat covers for easy cleaning; etc. 3.4 Logistic Regression Analysis Logistic Regression allows us to predict a discrete outcome, such as group membership, from a set of variables. Generally, the dependent variable in logistic regression is categorical variable. Logistic regression estimates the odds of a certain event occurring (Garson, 2009). Logistic regression makes no assumption about the distribution of the independent variables. The relationship between the independents and dependent variable is not a linear function. The logistic response function is P (Y 1) e β0 β1X1 βpXp 1 e β0 β1X1 βpXp , where i are logistic coefficients to be estimated; i =1, 2, …, p For logistic regression, the "parameter estimate" is the B coefficient used to predict the log odds (logit) of the dependent variable. The B coefficients with 0 indicate that the given explanatory variable does not affect the logit (that is, makes no difference in the probability of the dependent value equalling the value of the event, usually 1); positive or negative B coefficients indicate the explanatory variable increases or decreases the logit of the dependent. Exp (B) is the odds ratio for the explanatory variable. The odds ratio for a given independent variable represents the factor by which the odds (event) change for a one-unit change in the independent variable. An Exp (B) > 1 means the independent variable increases odds (event). An Exp (B) < 1, then the independent variable decreases odds (event). Thus, the suggestion for considering the influential factor that has the effect on the dependent variable is the influential factor(s) which has the statistically significance at the level of significance ( ) with the value of Exp (B) > 1(Garson, 2009) should be considered in the first priority and so on. 3. The Methodology and Model 3.1 The Model According to the literature review, the research model is formed as shown in Figure 1. The thirty alternative hypotheses are as follows: Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Ha1i: Products have the impact on Thai passengers selecting decision towards domestic LCA, i = 1, 2, 3, 4 Ha2i: Prices have the impact on Thai passengers selecting decision towards domestic LCA, i = 1, 2, 3, 4 Ha3i: Places have the impact on Thai passengers selecting decision towards domestic LCA, i = 1, 2, 3, 4 Ha4i: Promotions have the impact on Thai passengers selecting decision towards domestic LCA, i = 1, 2, 3, 4 Ha5i: People have the impact on Thai passengers selecting decision towards domestic LCA, i = 1, 2, 3, 4 Ha6i: Processes have the impact on Thai passengers selecting decision towards domestic LCA, i = 1, 2, 3, 4 Ha7i: Physical evidences have the impact on Thai passengers selecting decision towards domestic LCA, i = 1, 2, 3, 4 Product Price Place Promotion People Process Physical Evidence Independent Variables X1: airline’s reputation X2: comfortable, safety and secure X3: available flights schedule X4: available routes and destinations X5: suitable ticket prices and fares X6: cheaper ticket prices and fares X7: clarity of ticket price and fares information X8: no additional charges X9: various ticket channel distributions X10: ease of ticket purchase X11: ease of reservation via website X12: various payment methods X13: attractive sale promotion campaign X14: advertising and public relation X15: website for providing informations X16: call center for providing advices X17: friendliness of cabin crew X18: friendliness of ground staffs X19: cabin crew/staffs presence thru flight X20: professionalism of captain X21: speed of check-in process X22: flight’s punctuality X23: speed of baggage delivery X24: assistance during boarding X25: new modern aircraft X26: beautiful interior cabin/aircraft X27: cabin cleanliness X28: cabin seat comfort X29: toilet cleanliness X30: staff grooming Hypotheses Ha11 to Ha14 Ha21 to Ha24 Ha31 to Ha34 Dependent Variable Ha41 to Ha44 Passengers selecting decision Ha51 to Ha54 1. Nok Air Ha61 to Ha64 Ha71 to Ha76 Figure 1: A Research Model 2. Thai Air Asia Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 3.2 The Methodology This research is a survey research; convenience sampling is used in collecting the sample data. Pre-test is conducted and measures the reliability with Cronbach’s Alpha coefficient in order to determine the reliability of the instrument used. The values of Cronbach’s Alpha coefficient from 0.6 to 0.7 are considered as the acceptable level for reliability measure. The overall Cronbach’s Alpha coefficient of this survey instrument is 0.78, questionnaires are guaranteed that it is the good tool for data collecting. The questionnaires are distributed to Thai passengers who live in Bangkok and have ever used the service of airline transportation to travel within 6 months ago. A sample survey is conducted during May 2014 at Don Mueang International airport among top two LCA in Bangkok area. A total of 390 respondents are participated in this research. Binary Logistic Regression Analysis is employed to obtain the important service marketing mix factors affecting on Thai passengers’ decision towards selection of top two LCA. 4. The Findings The data are analyzed and summarized with a Statistical package. Research findings are divided into 2 parts: Part 1: Demographic factors of respondents, using descriptive statistics. Part 2: Hypothesis testing, using Binary logistic regression analysis at the level of significance 0.05, the results are presented as follows: Part 1: Demographic factors of respondents Based on the results from data analysis shows that proportions of Thai female and male respondents are 60.0% and 40.0% respectively; most of them are in age range of 15 - 25 years, 31.0% while proportions of 26 - 35, 36 - 45 and over 45 years are 29.23%, 17.95%, and 21.79% respectively. Most respondents earned Bachelor degree at 69.49% while percentages of education which is higher and lower than Bachelor degree are 21.54% and 8.97%. Proportions of monthly income in range of 0 - 15,000 Baht, 15,001 - 30,000, 30,001 - 45,000, 45,001 - 60,000, and over 60,000 Baht are 23.59%, 38.72%, 16.15%, 10.26%, and 11.28% respectively. Proportions of occupations are state enterprise and government officer, employee, private firm/business owner, students, and others (housewife/retired) are 29.23%, 23.85%, 23.59%,18.97% and 4.36% respectively. Part 2: Hypothesis testing, using Binary logistic regression analysis Based on 7P’s of service marketing mix, there are five important service marketing mix factors affecting on Thai passengers’ decision towards domestic low cost airlines selection are as follows: product – “airline’s reputation”, price --- “cheaper ticket prices/fares” and “no additional charges”, promotion --- “attractive promotion campaign”, “advertising/public relation”, and “call center for providing advices”, people --- “friendliness of cabin crew”, and physical evidence --- “new modern aircraft” and “cabin seat comfort” (Table 2). Comparing the Exp (B) value of Nok Air and Thai Air Asia from maximum thru minimum value indicate that for factors “friendliness of cabin crew (1.9599)”, “call center for providing advices (1.6889)”, “no additional charges (1.6090)”, “airline’s reputation Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 (1.4810), and “cabin seat comfort (1.4723)”, Nok Air has the greater value of Exp (B) than Thai Air Asia. It states that these factors are more likely influence Thai passengers in selection of service of Nok Air than Air Asia. Table 2: Summary table of parameter estimates for comparing factors between Nok Air and Thai Air Asia Nok Air Factors B Thai Air Asia Sig. Exp(B) * 0.0720 1.4810 ** 0.0376 0.6526 B Sig. Exp(B) * 0.0720 0.6752 ** 0.0376 1.5324 ** Product X1: airline’s reputation 0.3927 * -0.3927 ** 0.4268 ** * Price ** X6: cheaper ticket prices and fares -0.4268 X8: no additional charges 0.4756 ** 0.0043 1.6090 -0.4756 0.0043 0.6215 X13: attractive promotion campaign -0.3750* 0.0773 0.6873* 0.3750* 0.0773 1.4550* X14: advertising and public relation -0.7032** 0.0012 0.4950** 0.7032** 0.0012 2.0203** X16: call center for providing advices 0.5241** 0.0146 1.6889** 0.5241** 0.0146 0.5921** 0.6729** 0.0116 1.9599** 0.6729** 0.0116 0.5102** X25: new modern aircraft -0.4303* 0.0953 0.6503* 0.4303* 0.0953 1.5377* X28: cabin seat comfort 0.3868* 0.0613 1.4723* -0.3868* 0.0613 0.6792* ** Promotion People X17: friendliness of cabin crew Physical Evidence Remarks: 1. * means the significance at 0.10 level of significance 2. ** means the significance at 0.05 level of significance Similarly, it indicate that Thai Air Asia has the greater value of Exp (B) than Nok Air for factors “advertising and public relation (2.0203)”, “new modern aircraft (1.5377)”, “cheaper ticket prices/fares (1.5324)”, and “attractive sale promotion campaign (1.4555)”. It stated that these factors are more likely influence Thai passengers in selection of service of Air Asia than Nok Air. 5. Summary and Conclusions According to the results, LCA in the study should focus on the service marketing mix factors in order to increase the customer base and make more market share in this segmentation as follow. Nok Air should maintain the friendliness of cabin crew, providing call center for advising of passengers, no additional charges but should set the limitation(s) of baggage weights. Moreover, Nok Air should maintain in famous of airline continually and include having the cabin seat comfort in all flights. Moreover, Nok Air should increase advertising and attractive sale promotion campaign in order to increase the number of passengers in the future. . Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Due to Thai Air Asia, the ticket price is quite cheaper than Nok Air, has new modern aircraft, and has the attractive sale promotion campaign continuously. Then Air Asia should maintain these several points, and use it to be the strength point of the brand. Thai Air Asia should set training program for their staff in providing good service/information such as smile, and friendly with passengers in order to increase the impressive of passengers in the future. End Notes The authors acknowledge the helpful comments of referees. This work was partially supported by King Mongkut’s Institute of Technology Lardkrabang and Assumption University, Bangkok, Thailand, we are very appreciative. References Assael, H 1993, Marketing: Principle and Strategies, (2nd ed.), Texas: Dryden. 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