An investigation of service quality,customer satisfaction and loyalty in China's airline market

Customer loyalty is a source of competitive advantage and an important intangible asset to any organisations, but empirical evidence from China's airline market regarding the determinants of passenger satisfaction and loyalty is lacking. This paper investigates the service quality of four major airlines in China's domestic market and explores the links between their service quality and customer satisfaction, as well as the conditions under which airlines can retain existing passengers. In line with previous studies, service quality variables are significant factors influencing customer satisfaction levels. However, satisfactory service was not found to result in higher customer loyalty among business travellers. In comparison to Hainan Airlines, passengers who travelled with Air China, China Southern and China Eastern were more likely to switch to an alternate carrier, indicating lower levels of brand loyalty. In addition, the frequent flyer programs (FFPs) have been largely a failure for the four major airlines in terms of increasing customer loyalty, as revealed in this study. It is necessary to draw distinctions between business and leisure travellers when studying the determinants of customer satisfaction and customer loyalty. Ticket pricing had a positive and significant effect on passengers' overall satisfaction and in turn strengthened customer loyalty among leisure travellers, but achieved no impact on the satisfaction and loyalty of business passengers. Some demographic variables such as gender, income and education are statistically significant for one group of passengers but not for another in the probit models estimated. It is suggested that different marketing strategies may be used to target different market segments to improve customer loyalty.     

Service quality and customer satisfaction of a UAE-based airline: An empirical investigation

This paper investigates the linkages among service quality, service provider image, customer expectations, perceived value, customer satisfaction and brand loyalty in a Dubai-based airline. Initially, the determinants of service quality were identified utilizing the SERVQUAL framework with some modification. Service quality was then used as an antecedent to measure customer satisfaction, a condition which can bring about brand loyalty. In a research initiative using a quantitative approach, data from 253 questionnaires was analyzed. Using structure equation modeling, the data analysis suggests that service quality, perceived value, and brand image have a positive significant impact on customer satisfaction, which can in turn lead to brand loyalty. Theoretical and managerial implications are discussed.     

The impact of airline service quality on passengers’ behavioral intentions using passenger satisfaction as a mediator

This research study measures the perception of airline service quality based on data collected from Pakistan International Airline (PIA) passengers using SERVQUAL. It investigates the impact of service quality dimensions on passenger's behavioral intentions in presence of mediator (passenger satisfaction). The data is collected through an adopted SERVQUAL instrument from the respondents in the domestic and International waiting lounges of PIA. The data is analysed using reliability statistics, correlation analysis and through hierarchal regression analysis. A systematic random sampling technique is used to analyze the study sample and PROCESS macros was used to run mediation analysis. The results reveals that passenger's satisfaction mediates the relationship between airline service quality and behavioral intentions. Practically, PIA should not only improve on Service Quality but should build up quality consciousness among on ground and inflight employees; pay attention to reliable factors and establish customer goodwill through enhanced services; regard reliability factors and enhance employee accomplishment. Implications of these results for management policy and practice are highlighted as guidelines. PIA managers can now better understand the importance of service quality and its long-term benefits in the form of customer loyalty.     

The moderating roles of risk and efficiency on the relationship between logistics performance and customer loyalty in e-commerce

Using data from online customer ratings, we explore how the relationships between logistics performance and customer loyalty are affected by risk characteristics of products and efficiencies of the websites. Risk is defined in terms of price and ambiguity of products. Efficiency is interpreted as the ability of the websites to achieve good ratings in terms of operational factors (such as satisfaction of customers with product specifications, refunds/returns, prices, management accessibility, etc.) and also achieve good ratings in terms of customer loyalty. Our results show that efficiency, but not risk, is a significant moderator of the impact of logistics performance on customer loyalty.     

Evaluation of passenger satisfaction with service quality: A consecutive method applied to the airline industry

Passengers' dissatisfaction with service quality is one of the crucial factors affecting the market share loss of airlines. This study aims to find out how airlines become capable of satisfying their passengers by considering the diversity of pre-purchase expectations. Therefore, the study proposes a novel model for clustering air passengers to identify passengers with similar expectations. Thus, the passengers' expectations of the service quality attributes in each cluster were measured and converted into quantitative degrees of customer satisfaction by applying the Kano model. Finally, Importance-Satisfaction Analysis (ISA) was employed to finding that which service quality indicators fall into the “Keep up the proper work”,” Concentrate here”,” Possible overkill”, and “Low priority” category for eliciting applicable marketing strategies.     

Analysis of shopping preference and satisfaction with airport retailing products

This paper studies passengers' responses to retail products at Taiwan Taoyuan International Airport. Incorporating the passengers' demand factors, modified grey relational analysis is applied to establish the priority relations of product categories for shopping purposes and satisfaction. The results indicated that travelers valued the utility and souvenir characteristics of products. The youngest respondents tended to shop in souvenir and café stores. Satisfaction analysis showed higher rankings for brand-name, utility, and low-cost products, and low satisfaction levels on quality and price of café products.     

Service quality and price perception of service: Influence on word-of-mouth and revisit intention

Drawing on an overarching framework of marketing theory, this study develops and tests an integrated model of service quality that explicates the affective mechanisms through which service quality is associated with price perception of service (e.g., monetary price and behaviour price), word of mouth (WOM) and revisit intention. In a sample of 484 low-cost airline passengers, we found service quality to be related to increased price perception of service as a result of increasing passengers' WOM, which also creates success in this regard by increasing their revisit intention. Moreover, it is not surprising that there was a positive relationship between service quality and WOM mediated by perceived value of monetary price. The theoretical and empirical implications of these results are discussed.     

SOCO's impact on service outcomes of tour guides: the moderating effect of customers’ shopping orientation

This research examines the effects of both sales-oriented and customer-oriented service strategies of tour guides on service outcomes: rapport, customer satisfaction, customer loyalty, and willingness to tip. This research also investigates how customers’ shopping orientation moderates the above relationships. A convenience sampling was conducted and 370 valid questionnaires were obtained. The data were analysed using structural equation modelling. The findings are as follows: (1) customer-oriented strategy of tour guides has a significantly positive impact on the service outcomes; (2) selling-oriented strategy of tour guides has a significantly negative impact on customer satisfaction and customer loyalty; and (3) shopping orientation of tour members moderates the relationships between selling orientation and service outcomes. Thus, if tour guides can provide service for customers in a suitable way, they will then improve the customers’ perception of services. These findings provide practical information for travel agencies and tour guides.     

Perceptions of premium service and superiority: Why do customers pay more for high-value-added domestic airline services in Japan?

This paper clarifies the factors influencing customers' perceptions of premium service and superiority for high-value-added domestic airline services in Japan, and explains how these perceptions impact customer loyalty.To gather data for the analysis of consumers' perceptions, a questionnaire survey of 515 respondents who use high-value-added domestic airline services was conducted. These respondents' data were analyzed using structural equation modeling.The most valuable finding is the distinction between the perceptions of premium service and superiority, both of which strongly influence customer loyalty. This finding has two important implications. First, staff correspondence has a strong influence on customer loyalty – not directly, but through customers' perceptions of premium service and superiority. Second, perceptions of premium service and superiority influence customer loyalty separately. This finding may assist in the development of innovative high-value-added services.     

Key drivers of passenger loyalty: A case of Frankfurt–Istanbul flights

This study aims to analyze the effects of factors such as image, satisfaction, price, and service quality on passenger loyalty toward full-service network carriers and low-cost carriers. A structural equation modeling approach was applied to identify the factors that significantly affect passenger loyalty. Using LISREL, data were collected from 237 passengers in face-to-face interviews in the baggage claim area of international arrivals at Ataturk International Airport in Turkey who traveled from Frankfurt to Istanbul and were used to test the proposed model. One hundred seventy-five out of these 237 questionnaires were considered as valid. The results indicate that 71% of the passenger loyalty is explained by image and image is explained by satisfaction. In addition, service quality and price are found to have positive effects on satisfaction. Compared with price, service quality is found to be a stronger determinant of satisfaction. This study concludes with the recommendations for managers and possible future research.     

Market strategy development and innovation to strengthen consumer-based equity: The case of Brazilian airlines

A brand valued by passengers would be able to convey quality and credibility, adds value to air transport the service, and increases passengers' willingness to pay a premium for tickets. However, studies on consumer-based brand equity in the air transport sector have been scarce, especially in developing countries such as Brazil. This study examines the relationship between marketing strategies adopted by Brazilian airlines in the domestic market and the strengthening of consumer-based brand equity (particularly brand associations with brand awareness, perceived quality, and brand loyalty). A literature review and a survey of 33 managers from Brazil's top airlines were conducted to develop the study's conceptual model. To empirically test the model, another survey was conducted on 480 passengers at six airports in the central western, southern, and southeastern regions of Brazil and the data analyzed via structural equation modeling. The results show that joint investments are necessary for innovation in service, price promotion, and event sponsorship in order to strengthen the key consumer-based brand dimensions. This study provides a basis for the development of future studies on passenger-based brand equity and helps airlines target their marketing strategies with maximum effectiveness.     

Does service recovery affect satisfaction and customer loyalty? An empirical study of airline services

This paper investigates the relationships among service recovery, recovery satisfaction, overall customer satisfaction, and customer loyalty in airline services. The perception of justice in service recovery is specifically examined. A survey of airline passengers who have experienced service failure and recovery is analyzed using structural equation models. It is found that both interactional and procedural justice have a significant effect on recovery satisfaction. Overall satisfaction mediates the relationship between recovery satisfaction and loyalty.     

Traveler satisfaction in rapid rail systems: The case of Istanbul metro

Multifaceted characteristics of urban travel have an impact on the passengers' overall satisfaction with the transport system. In this study, we investigate the interrelationships among traveler satisfaction, travel and traveler characteristics, and service performance in a multimodal network that comprises of a trunk line and its feeder lines. We analyze the factors influencing the choices of access to rail transit stations and the satisfaction of transit travelers with the rapid rail transit systems. We quantitatively study these relationships and demonstrate the complexity of evaluating transit service performance. Since the interrelationships among variables affecting this system are mainly stochastic, we analyze the satisfaction with transit system problem using a Bayesian Belief Network (BBN), which helps capture the causality among variables with inherent uncertainty. Using the case of Istanbul, we employ the BBN as a decision support tool for policy-makers to analyze the rapid rail transit services and determine policies for improving the quality and the level of service to increase the satisfaction with transit system. In the case study, satisfaction with accessibility and access mode variables are found to be more effective variables than total travel time for travel time satisfaction, confirming the significant role of access in multimodal travels.     

Customer satisfaction and loyalty to Alpine ski resorts: the moderating effect of lifestyle,spending and customers' skiing skills

Customer satisfaction and loyalty are key drivers of performance. However, there is increasing evidence that good attribute performance and high overall satisfaction do not always automatically lead to higher loyalty. In this paper, we put forward a study on customer satisfaction and loyalty to Alpine ski resorts. We analyse the moderating effects of three important factors in the attribute performance–overall satisfaction–loyalty relationship: lifestyle, consumer spending and customers' skiing skills in a sample of 6172 skiers. The results show that all studied variables have a moderating effect. The findings have implications on both theory and practice. Copyright © 2007 John Wiley & Sons, Ltd.     

Assessing the effects of perceived value (utilitarian and hedonic) in LCCs and FSCs: Evidence from South Korea

In the airline industry, passengers choose and buy service based on their perception of which airline delivers better value. Thus, it is important to compare two types of airlines, Low Cost Carriers (LCCs) and Full Service Carriers (FSCs), to measure how much their product or service is worth and the effect of perceived value on passengers' purchase decisions. This study examined the relationship between perceived value, satisfaction, and purchase intention in both FSCs and LCCs. Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) were performed for data analysis. Our findings reveal that passenger satisfaction in LCCs is affected by hedonic value and utilitarian value, but passengers' future purchase intention is not dependent on satisfaction even when passengers are satisfied. In FSCs, moreover, utilitarian value is not a significant factor for satisfaction and purchase intention. This research provides implications for airline marketers and directions for future research.     

Evaluating the relationship between socially (dis)advantaged neighbourhoods and customer satisfaction of bus service in London,U.K.

Affordable and efficient urban public transport is important for the development of a sustainable urban environment. Making sure public transport users are satisfied with the service is a goal many public transport agencies are trying to achieve. Customer satisfaction surveys are often used to monitor customer perceptions of service quality and to determine the relative influence of service attributes on a customer's overall assessment of the service. This study presents a new method to spatially evaluate customer satisfaction survey data through examining satisfaction with bus service across neighbourhoods of varying levels of socio-economic status (SES). Using customer satisfaction survey data collected by Transport for London between 2010 and 2015, multi-level regression modeling is used to estimate the relationship between overall satisfaction and social deprivation of the area in which bus routes were operating. The results indicate lower levels of satisfaction along routes serving low SES neighbourhoods, which appears to be attributed to (1) low satisfaction with service characteristics related to an individual's experience and quality of the bus and (2) conditions of the bus stop and shelter. Findings from this paper shows the importance of including cleanliness and bus internal quality as one of the performance indicators when contracting bus services, to ensure that all customers receive the same quality of service in the region regardless of their SES.     

Does Consumers' Feeling Affect Their Quality of Life? Roles of Consumption Emotion and Its Consequences

Emphasizing the importance of attendees' consumption emotion, this study investigates the impact of festival attendees' consumption emotion on their psychological outcomes such as satisfaction, perceived quality of life and loyalty toward the festival. Structural equation modeling is used to test the dynamics of festival attendees' consumption behavior and its consequences. Results of this study indicate that festival attendees' emotional behavior has a positive relationship with their overall satisfaction, which is identified as a key predictor for their loyalty and quality of life. The study's theoretical contributions and practical implications are discussed in detail along with its limitations. Copyright © 2014 John Wiley & Sons, Ltd.     

Analyzing passengers’ emotions following flight delays- a 2011–2019 case study on SKYTRAX comments

The text mining technology enables researchers or enterprises to automatically and efficiently access the information in text comments. This paper obtains 24,165 reviews from SKYTRAX between September 2011 and March 2019, 5700 of which express that passengers had experienced flight delays. It uses sentiment analysis based on a sentiment dictionary to classify user reviews and uses co-occurrence analysis to identify passengers' concerns on different aspects of service in the aviation industry. The results of the user sentiment analysis show that there is a significant and negative correlation between the user's emotions and their flight delay experiences. After flight delay, passengers' attention to the service aspects has increased, while satisfaction with the airport service has dropped dramatically. This paper shed some new light on public opinion about flight delays.     

The formation of the tourist's loyalty to the tourism distribution channel: how does it affect price discounts?

Given that distribution agents who wish to maximize long‐term business profits should not only attract new consumers but also keep them loyal, this study analyses the variables that determine the consumer's loyalty to distribution agents for tourism. Although retailers in the service industry employ price discounts on products to motivate short‐term sales, they often establish promotional policies without considering their effect on the long‐term business results. This paper presents an empirical study of the effect of price promotions on tourists who travelled with a package tour. The results indicate that price discounts do not erode consumer loyalty directly, and that the key to obtaining loyal consumers is to offer package tours that customers perceive as providing high‐quality service. Copyright © 2007 John Wiley & Sons, Ltd.     

The effect of frequent flyer programs: A case study of the Korean airline industry

Frequent flyer programs are important for airlines in Korea in their marketing of services. This paper develops a conceptual model to investigate the effect of such programs by examining the relationships them and, airline service quality, pricing, passenger satisfaction, airline image, and airline selection. Path analysis is used to analyze data collected from Korean international air passengers. The results show that frequent flyer programs have direct and indirect effects on pricing, passenger satisfaction, airline image, and airline selection. In addition, their effects on passengers' selections are significantly different between Korean and foreign airlines.