The impact of service quality on customer satisfaction in Saudi Airlines company

Introduction

Delivering high-quality service to passengers is essential for airlines survival. Service quality conditions influences a firm’s competitive advantage by retaining customer patronage, and with this comes market share, and ultimately profitability.

The forces of service quality influences on passengers‟ satisfaction in aircraft transport. The study examines which dimensions have a positive influence on service quality and which dimensions have the most and least important impact on service quality in international air travel, as perceived by airline passengers

Therefore, it is necessary to consider important new variables that can influence the evaluation of airline service quality, passenger satisfaction and passengers’ behavioral intentions. In order to explain air passengers’ future behavioral intentions more accurately and to contribute to our knowledge of future airline service studies.

Quality service

A service quality is an activity or series of activities of more or less intangible that are usually done and not necessarily in the interaction between of customer and staff or physical resources or goods and or supplier systems for services but is provided as solutions to customer’s problems.

2- Customer Satisfaction

Customer satisfaction can be defined in various situations that are associated with goods and services. Customer satisfaction is the result of a comparison between customer purchases of the expected performance with actual performance and perceived and payment expenses customer satisfaction is a physical concept that is due personal comparison from understanding of product performance with the experience obtained of the performance. There is direct relationship between customer satisfaction and willingness to loyalty to the company.

Research Problem

Some companies resort to lowering their prices to attract customers with no regard for the quality of service provided to them

Research Importance

In this research should help aviation companies to relies the impact quality of service provided to customers in all areas to get their satisfaction

Literature review

Airline’s competitive advantage by retaining customer patronage, and with this comes market share, and ultimately profitability (Morash & Ozment, 1994). Airline service quality is a significant driver of passenger satisfaction, passenger loyalty, and passenger’s choice of airline (Ritchie et al, 1980; Alotaibi, 1992; Ostrowski et al., 1993; Taylor & Barker, 1994; Young et al., 1994; Wells & Richey, 1996). Therefore, the delivery of high service quality becomes a marketing requirement as competitive pressures on air carriers increase (Ostrowski et al., 1993).

Customer satisfaction is a very important concept in marketing and it is the ultimate goal for service operations. Most companies assume that there is a strong relationship between customer satisfaction and consumer behavior. Hence, it is believed that higher customer satisfaction leads to higher purchase intention and ‘word-of-mouth’ communication. Since competition created by deregulation in the airline industry has become more intensive, and as the notion of service quality in airline operations has consequently become of increasing importance, satisfaction in the airline industry has thus received much attention (Ostrowski et al., 1993). In a competitive environment, satisfying passengers in transportation services has a beneficial effect on a carrier’s long-term survival (Rhea &Shrock, 1987). Airlines should know how their services are meeting their passengers’ needs and wants, because the extent to which passenger needs and wants are met has come to be called passenger satisfaction/ dissatisfaction.

Value can be defined as a customer’s overall assess meant of the utility of a product based on perceptions of what is received and what is given. Service value has been identified as an important variable of customer satisfaction and behavioral intentions (McDougall and Levesque, 2000). Even though studies have looked at service quality and value, the relationship between them still remains unclear. In spite of the importance of perceived service value as a form of assessment of services, there has also been only limited analysis of the exact nature of service value and its influence on customer behavior (Nguyen and LeBlanc, 1998). Previous airline service studies have often ignored service value and few have investigated the effect of service value on passenger behavior.

Main & Sub Questions

The main question of this research is:

· What is the impact of service quality on customer satisfaction in aviation industry?

While The sub questions are:

· What is the affect of service quality on company profitability?

· What is the affect of service quality on consumer loyalty?

· What is the affect of service quality on consumer need?

Main & Sub Objectives

The main objective of this research is:

· To determine the impact of service quality on customer satisfaction in aviation industry

While The sub objectives are:

· To measure the effect of service quality on company profitability.

· To find out the effect of service quality on consumer loyalty.

· To investigate the affect of service quality on consumer need

Independent and Dependent Variables

This proposal will measure the effect of a single independent variable (service quality) and on three dependent variables (company profitability, consumer loyalty and consumer need)

Conceptual Framework

Company Profitability

Consumer Loyalty Consumer Need Creation Service Quality Customer Satisfaction

Hypotheses

· H1) Increased quality of service increases the company’s profits

· H2) Quality of service increases customer loyalty to the company

· H3) Customer needs can be met by raising the quality of service provided to them

Research Design

Research Approach

We predicted the relationships between the variables in the beginning of this proposal, which indicates that this proposal follows a deductive approach. This means that the hypotheses mentioned earlier will be tested against the data to see whether prediction comes through or just fall behind.

Strategy

This research analyzed by tow strategies that are Structured Interviews and survey. The reasons for choosing these two strategies are to increase the accuracy of this research. Besides, data will be analyzed statistically, which eliminates the use of qualitative strategies.

Structured interviews consist of a predetermined coding schedule that will be conducted in airport to gain a closer and deeper understanding of how consumers behave towards ads in terms of interest, loyalty and satisfaction. Web survey will be distributed to a wide range of consumers in order to have as much data as possible so results are more representative and accurate.

Method

Strategy of this research will be used follows a quantitative one. Data will be analyzed statistically using SPSS and Excel software in order to support the results with graphs and diagrams and to have an overlook and summarized version of data.

We predicted the relationships between the variables in the beginning of this proposal, which indicates that this proposal follows a deductive approach. This means that the hypotheses mentioned earlier will be tested against the data to see whether prediction comes through or just fall behind.

Sources

The data from today’s consumers themselves. It will rely heavily on primary data collected through web survey and structured interviews. The reason why primary data is chosen is that this research tries to understand today’s consumers behavior and mentality since we have recently seen more ways for improving the service quality such as the buying a ticket from the web side or the service on aircraft.

Sampling Technique

This research implements a purposive sampling technique where the targeted population are men and women above the age of 18 since these consumers have the ability and the will to make a buying decision as well as the money needed. The minimum sample is 500 elements from strategies, survey and interviews.

Data Analysis

This is purely a quantitative study that requires quantitative strategies in order to statistically analyze and interpret data to produce meaningful charts and graphs. Software such as SPSS and Microsoft Excel will be used in analysis so that numbers are crunched to meaningful information.

Limitations and Recommendations

This study is based on one type of aviation. The conclusions of the other aviation may differ depending on the country’s economy, aviation status, airports and the category of people wishing to travel. Studies can be carried out in the future, including the largest number of types of aviation in different countries and regions and the matching between them and find common factors among them

Time Schedule

Task JAN FEB MAR APR
Formulating and clarifying a topic
Reviewing the literature
Conceptual Framework and Hypothesis Development
Proposal draft
Designing the research
Collecting data
Analyzing data
Research writing
Research submission and presentation

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