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Adjustment of prices for quality change: A hedonic analysis of domestic passenger airfare

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Date Issued:
1999
Summary:
Adjusting prices for quality change is an important issue. This study employs a hedonic quality measurement technique to assess the effects of quality on domestic passenger airfare. The econometric analysis utilizes pooled quarterly data on average fare for the largest-share and the lowest-fare carriers, for each of the approximately top 1,000 routes from 1996:Q3 to 1998:Q2. The hedonic regression specifies airfare as a function of distance, total passengers, market share of the airline, and quality variables measuring on-time performance, oversales, baggage handling, complaints, and airline safety. Quality characteristics are found to have several important effects on airfare. Oversales revealed a statistically significant impact on airfare for all distance blocks, passenger complaints were important on short and long routes, and on-time performance and baggage handling were valued by customers only on shorter routes. Competition from low-fare carriers, and differences between airline groups are also identified to be important factors.
Title: Adjustment of prices for quality change: A hedonic analysis of domestic passenger airfare.
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Name(s): Mourey, Kimberly Ayesha.
Florida Atlantic University, Degree grantor
Manage, Neela D., Thesis advisor
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Date Issued: 1999
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 86 p.
Language(s): English
Summary: Adjusting prices for quality change is an important issue. This study employs a hedonic quality measurement technique to assess the effects of quality on domestic passenger airfare. The econometric analysis utilizes pooled quarterly data on average fare for the largest-share and the lowest-fare carriers, for each of the approximately top 1,000 routes from 1996:Q3 to 1998:Q2. The hedonic regression specifies airfare as a function of distance, total passengers, market share of the airline, and quality variables measuring on-time performance, oversales, baggage handling, complaints, and airline safety. Quality characteristics are found to have several important effects on airfare. Oversales revealed a statistically significant impact on airfare for all distance blocks, passenger complaints were important on short and long routes, and on-time performance and baggage handling were valued by customers only on shorter routes. Competition from low-fare carriers, and differences between airline groups are also identified to be important factors.
Identifier: 9780599211827 (isbn), 15634 (digitool), FADT15634 (IID), fau:12391 (fedora)
Collection: FAU Electronic Theses and Dissertations Collection
Note(s): College of Business
Thesis (M.S.)--Florida Atlantic University, 1999.
Subject(s): Airlines--Rates
Airlines--Management
Held by: Florida Atlantic University Libraries
Persistent Link to This Record: http://purl.flvc.org/fcla/dt/15634
Sublocation: Digital Library
Use and Reproduction: Copyright © is held by the author, with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Use and Reproduction: http://rightsstatements.org/vocab/InC/1.0/
Host Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.