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The influence of airline service quality on passenger satisfaction and loyalty : The case
of Uganda airline industry
Juliet Namukasa
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To cite this document:
Juliet Namukasa, (2013),"The influence of airline service quality on passenger satisfaction and loyalty ", The
TQM Journal, Vol. 25 Iss 5 pp. 520 - 532
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Abstract
Purpose The general objective of this study was to examine the influence of airline service quality
on passenger satisfaction and loyalty. To achieve this, the research was guided by four specific
objectives to which data collection was effected mainly by interview method using fully structured
questionnaires.
Design/methodology/approach The study used random sampling technique and it covered 303
respondents on international flights using Entebbe International Airport. Data were analyzed using
statistical package for social sciences 16, were w2 was used to test the hypothesis and regression
analysis was performed to examine the relationships between variables.
Findings Findings indicated that the quality of pre-flight, in-flight and post-flight services had a
statistically significant effect on passenger satisfaction. In addition to that, passenger satisfaction as a
mediating variable also had a significant effect on passenger loyalty. It was noted that passenger
satisfaction differed from person to person as some were more interested in off board facilities, others
onboard, others in the quality of food while others wanted more extra luggage.
Originality/value It was recommended that airline management should consider developing
various strategies for improving service quality based on demographic characteristics of the
customers such as occupation, age, gender and education level.
Keywords Customer loyalty, Customer satisfaction, Airline service quality, Competitiveness,
Airlines, Uganda
Paper type Research paper
Introduction
Nowadays the airline industry is characterized by heavy regulations which limit
airlines room for maneuvering and accessing global markets compared to other
industries which have paved ways for companies to transform into global players. This
has prevented airlines from becoming truly global businesses by impeding crossborder merger and acquisition activities (Hanlon, 2007). To overcome the restrictions
imposed by this nationality rule, airlines formed global alliances as a means to secure
some of the benefits of a larger size and scope offer. Three major alliances namely Star
Alliance, Oneworld and Sky Team now dominate the competitive landscape (Doganis,
2006). Airlines furthermore have to cope with marginal profitability (Hanlon, 2007).
Therefore the delivery of high-quality service becomes a marketing requirement
among air carriers as a result of competitive pressure (Ostrowski et al., 1993). Moreover
airline passengers can experience many service encounters with front-line employees
as well as in-flight attendants, this is called moment of truth. Passengers may judge
or evaluate airline service quality through a comparison between their experiences and
expectations over a number of quality attributes (Gronroos, 2000) hence there is need to
examine the influence of airline service quality on passenger satisfaction and loyalty
because customer satisfaction holds a significant importance in corporate sector.
(2)
(3)
(4)
Airline service
quality
521
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challenging, many airlines have turned to focus on airline service quality to increase
service satisfaction since service quality conditions influences a firms competitive
advantage by retaining customer patronage and with this comes market share
(Archana and Subha, 2012). Therefore delivering quality airline services to passengers
is essential for airline survival, since passengers are becoming increasingly sensitive
to quality.
Definitions of service quality, customer satisfaction, customer loyalty
Service quality can be defined as a consumers overall impression of the efficiency of
the organization and its services (Park et al., 2004) or as a chain of services in which the
entire service delivery is divided into a series of processes (Chen and Chang, 2005).
Most definitions of service quality depend on the context and therefore focus on
meeting the customers needs and requirements and how well the service delivered
matches the customers expectations of it. In the airline industry, service quality is
composed of various interactions between customers and airlines with employees
seeking to influence customers perceptions and the image of the carriers (Gursoy et al.,
2005). Though price is increasingly used as the primary way to attract customers;
some airlines are looking more to service quality to get a competitive edge by
distinguishing their products because competitors are relatively efficient in responding
to price changes ( Jones and Sasser, 1995). These airlines competitive advantage lies in
their service quality as perceived by customers (Chang and Yeh, 2002). Therefore
ensuring quality service is the key for survival of all businesses/industries dealing in
service offerings airlines inclusive.
Oliver (1981) defined satisfaction as a persons feeling of pleasure or
disappointment resulting from comparing a products perceived performance (or
outcome) in relation to his or her expectations. While Hansemark and Albinson (2004)
defined it as an overall customer attitude towards a service provider, or an emotional
reaction to the difference between what customers anticipate and what they receive
regarding the fulfilment of some needs, goals or desire. The definition provided by
Oliver (1981) has been used for this study. Therefore it is very important to satisfy
customers because nowadays most of them have exposure to a variety of information,
they are more familiar with the present trends in technology, very well educated and
more demanding in the products and services they require.
Customer loyalty can be defined as a deeply held commitment to re-buy or re
patronize a preferred product/service consistently in the future, thereby causing
repetitive same-brand purchasing despite situational influences and marketing
efforts having the potential to cause switching behavior (Oliver, 1997). Chin (2002)
stated that an attractive frequent flier program (FFP) could actually contribute to
increased loyalty from the repeat business of an increased number of customers
and numerous studies have revealed that customer satisfaction positively affects
loyalty (Mohsan et al., 2011; Fornell, 1992; Anderson and Jacobsen, 2000). Therefore
airline companies need to review and re-examine their strategies in order to sustain
customer loyalty.
Effect of pre-flight service quality on passenger satisfaction
In order to achieve customer satisfaction, organizations must be able to build and
maintain long-lasting relationships with customers through satisfying various
customer needs and demands which resultantly motivates them to continue to do
business with the organization on an on -going basis (LaBarbera and Mazursky, 1983).
Airline service
quality
H1. Pre-flight service quality has a positive significant effect on passenger satisfaction.
Effect of in-flight service quality on passenger satisfaction
Ng et al. (2011) stated that in-flight services offered by flight attendants affected
customer satisfaction. Airline passengers may experience many service encounters
with in-flight attendants, this is called moment of truth. Passengers may judge or
evaluate airline service quality through a comparison between their experiences and
expectations, over a number of quality attributes (Gronroos, 2000) since most services
are intangible. Thus because of this intangibility, most companies find it difficult to
understand how customers perceive their services. Therefore in-flight attendants
should focus on tangibles by communicating to the customers the features of the
service being provided. Thus it is presumed that in-flight service quality has a
significant effect on passenger satisfaction:
H2. In-flight service quality has a positive effect on passenger satisfaction.
Effect of post-flight service quality on passenger satisfaction
An after-sales service constitutes a means to uncover extra customer needs and
a strategic driver for customer retention. Oliver (1997) demonstrated that extremely
satisfied customers are much more likely to remain loyal to firm than those who are
merely satisfied. Hence it is presumed that post-flight service quality has a significant
effect on passenger satisfaction:
H3. Post-flight service quality has a positive significant effect on passenger satisfaction.
Effect of passenger satisfaction on passenger loyalty
A study by Mohsan et al. (2011) revealed that customer satisfaction was positively
correlated with customer loyalty. It further stressed that, there was need for airline
companies to always look into the needs and demands of their customers in order to
survive and compete successfully in todays dynamic corporate environment. While
Fornell (1992) found that high customer satisfaction would result in increased loyalty
for the firm and that customers would be less prone to overtures from competition.
Thus the underlying assumption is that passenger satisfaction is positively associated
with passenger loyalty:
H4. Passenger satisfaction has a positive effect on passenger loyalty.
Conceptual framework
It gives a more detailed insight on the variables that influence passenger satisfaction
and loyalty in the airline industry based on pre-flight service quality, in-flight
service quality and post-flight service quality. The variables were developed from the
extensive review of literature related to the study (Figure 1).
523
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Figure 1.
Airline service quality
Pre-flight Service
Reliability
Responsiveness
Discounts
In-flight Service Quality
Tangibles
Courtesy
Language skills
H1
Passenger
Satisfaction
H2
H4 Passenger
Loyalty
H3
had a clear view about airlines services. These airlines included: Air Uganda, Precision
air, Kenya airways, Rwanda air and Fly 540. In order to ensure fairness and accuracy of
the study, airlines registered within East Africa were chosen. Compared to other
regions in Africa, East Africa forms a relatively homogeneous group of countries in
many respects. This homogeneity creates a favourable environment towards the
emergence of an integrated air transport market. Entebbe airport was chosen because
it is the one that handles international flights in Uganda.
Sample design
This study adopted convenience sampling. Sampling was done by interviewing
randomly selected passengers, waiting for their flights at different times of the day, on
every day of the week, during the period 19 July to 15 August 2012. A structured
questionnaire was used for data collection. The questionnaire was divided into five
sections, the first section was about the demographic profile of respondents and
second, third and fourth sections were designed to evaluate passengers overall
experiences with the quality of services they had received from the airlines and the last
was dealing with the effect of passenger satisfaction on passenger loyalty.
Sample size
Krejcie and Morgan (1970) table was used in determining the sample size of a randomly
chosen sample from a given finite population of 13,558 based on Ugandas
international seat capacity per week, by carrier for the selected airlines between 28
November 2011 and 4 December 2011 (Centre for Aviation, 2012). Krejcie and Morgan
(1970) table indicates that if the study population size is 13,558, a statistically
representative sample size should be 378 respondents. However, out of the 378
questionnaires that were distributed, a total of 303 questionnaires were complete and
had valid responses, 75 questionnaires were incomplete hence they were removed. The
number of passengers sampled per airline was based on how busy the airline was at
the airport during the period 19 July to 15 August 2012.
The actual sample size of 303 respondents was valid for this study, because studies
which had dealt with passengers as a unit of inquiry had relatively dealt with sample
sizes ranging from 270 to 602, for example, Archana and Subha (2012) sampled 270
respondents; Munusamy et al. (2011) sampled 300 and Huang (2009) sampled 602
respondents. Also (Roscoe, 1975 in Sekaran, 2003) proposed some rules of thumb in
determining sample size of which one of it stated that, sample sizes larger than 30 and
o500 are appropriate for most researchers. It has also argued that in order to use w2, the
overall number of items should be at least 50 (Kothari, 2004) hence the actual sample was
fairly enough and suitable for models which were to be used in data analysis (Table I).
Data collection methods
Data were collected using both primary and secondary data sources. Primary data
were collected through the use of structured questionnaires which consisted of five
sections on the following aspects: respondents profile, quality of pre-flight services,
in-flight services, post-flight services and the effect of passenger satisfaction on
passenger loyalty. The questions were phrased in the form of statements scored on a
five-point Likert type scale, ranking from 1 strongly disagree to 5 strongly agree.
The study was conducted in the departure hall of Entebbe International Airport.
Questionnaires were distributed to respondents who had under taken at least one
international flight in the previous 12 months with the selected airlines. Face-to-face
Airline service
quality
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Table I.
Sample frame
Population
(total number of
seats per week) between
28/11/11 and 4/12/11
Intended
sample
Actual
sample
Air Uganda
Kenya airways
Precision air
Rwanda air express
Fly 540 aviation
Total
4,392
6,280
564
948
1,374
13,558
72
158
65
51
31
378
58
127
52
41
25
303
interviews of passengers waiting for their flights were conducted at Entebbe airport.
A total of 303 sets of usable questionnaires were successfully collected yielding a
response rate of 80 per cent. To reduce the refusals to participate or to answer specific
questions, the researcher contacted passengers politely by explaining the purpose and
contribution of the research.
Reliability and validity
Cronbach a was used to test the internal consistency for all items under respective
variables. Hair et al. (2006) suggested that Cronbachs a coefficient over 0.6 is adequate
for basic research. The reliability of each construct was assessed by using Cronbachs a
measure which in the experiment was ranging from 0.645 to 0.850, indicating that the
scale are internally consistent and reasonably free of measurement error. To ensure the
perfection of the study tool, a pilot study was also conducted (Table II).
Data analysis
Data were analyzed using statistical package for social sciences (SPSS) version 16. w2-test
was used as a way of testing the hypothesis and regression analysis was performed to
examine the relationships between variables. This is in line with what was used in similar
empirical studies, for example, Munusamy et al. (2011) used Pearson correlation and
multiple regression analysis while Mohsan et al. (2011) used Microsoft excel and SPSS 16
to analyze data. Descriptive statistics was used to provide an overview on the profile of
international passengers using Entebbe International Airport.
Interpretation and discussion of findings
Hypotheses results
w 2 was used in determining the relationships and significance of the variables. Testing
of hypotheses was at 95 per cent level of confidence interval and results from this were
Table II.
Reliability of various
service factors
Sl.No
Factors
I
II
III
IV
V
Pre-flight
In-flight
Post-flight
Passenger satisfaction
Passenger loyalty
Number of statements
Number of cases
Cronbachs a
8
8
3
3
6
303
303
303
303
303
0.723
0.819
0.645
0.704
0.850
used to reach the conclusions. To verify the causal relationships, regression was used
for determining the correlation coefficients amongst variables:
Airline service
quality
H1. Pre-flight service quality has a positive significant effect on passenger satisfaction.
In the study, respondents were asked to express their opinions on different items that
measured pre-flight service quality on a five-point Likert scale that ranged from 1
(strongly disagree) to 5 (strongly agree). Results showed that seven out of eight
measurable indicators of pre-flight service quality had a significant effect on passenger
satisfaction since they scored w2-values that were above the table value of 26.296 and
also registered significant values less than the critical value of 0.05. It can therefore be
concluded that pre-flight service quality has a positive significant effect on passenger
satisfaction. This is in line with findings by (Munusamy et al., 2011) whose results
showed that pre-flight service quality had a positive impact on customer satisfaction.
These results imply that if airline companies are to achieve a high level of customer
satisfaction, they should deliver a high level of service quality, as it is normally
considered an antecedent of customer satisfaction.
In addition to the w2-test, correlations of indicators of pre-flight service quality were
regressed against passenger satisfaction to confirm the results got from the w2-tests.
Regression results showed that there was a significant positive relationship between
pre-flight service quality and passenger satisfaction. Findings also indicated that from
among the measurable indicators of pre-flight service quality prompt response to
emergencies (r 0.434) and reliability of airlines web site (r 0.429) were among the
strongest contributors to passenger satisfaction compared to price charged (r 0.337) and
baggage allowance (r 0.122). Results therefore implied that improvement in the quality
of pre-flight services offered by airline companies would result into passenger satisfaction:
H2. In-flight service quality has a positive effect on passenger satisfaction.
From the respondents opinions, all the measurable indicators of in-flight service
quality had a positive significant effect on passenger satisfaction since they all
registered significant values of 0.000 that were less than the critical value of 0.05. This
concurs with the findings by Ng et al. (2011) who confirmed that in-flight services
offered by flight attendants affected customer satisfaction. The findings imply that inflight services are one of the key drivers of ensuring passenger satisfaction (Table III).
Additional analysis was performed were in-flight variables were cross-tabbed and
regressed against passenger satisfaction in order to confirm the results got from w2-tests.
Results from table below at 95 per cent confidence interval revealed that indeed in-flight
service quality had a significant effect on passenger satisfaction because all significant
values were 0.000 which was below the critical value 0.05 that is to say ( po0.05).
This therefore confirmed that there was a significant positive relationship between
in-flight service quality and passenger satisfaction. Amongst the in-flight variables,
comfort and cleanliness (r 0.460), safety (r 0.400) and quality of food (r 0.397) had
more impact on passenger satisfaction compared to employee appearance and crew
uniforms (r 0.268) This therefore implies that airlines should improve on their inflight services, for example, quality of food, safety measures and comfort of seats since
they have higher impact on passenger satisfaction (Table IV):
H3. Post-flight service quality has a positive significant effect on passenger satisfaction.
527
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4
5
6
Table III.
8
w2-test for in-flight service
quality and passenger
satisfaction
Note: *Critical value at 0.05 significance 26.296
w2
Df
Sign
Status
16
0.000
Significant
1.500E2*
16
0.000
Significant
1.192E2*
99.534*
16
16
0.000
0.000
Significant
Significant
1.296E2*
16
0.000
Significant
79.790*
16
0.000
Significant
89.575*
16
0.000
Significant
69.843*
16
0.000
Significant
R2
Significance
0.400
0.460
0.160
0.212
0.000
0.000
0.268
0.397
0.072
0.158
0.000
0.000
0.365
0.380
0.133
0.144
0.000
0.000
0.355
0.126
0.000
0.301
0.507
0.091
0.257
0.000
0.000
85.831*
From Table V, all the three post-flight indicators registered w2-values above
the table values of 26.296 and indicated significant values less than the critical
value (0.000o0.05). These results indicate that the quality of post-flight services
has a significant effect on passenger satisfaction. Oliver (1997) demonstrated that
extremely satisfied customers were much more likely to remain loyal to firm than
those who were merely satisfied. Therefore this implies that a company has
to create customer relationships that deliver value beyond those provided by the core
product (Table V).
Further analysis was performed to identify the causal relationship amongst these
variables were by indicators of post-flight service quality were regressed on passenger
satisfaction. Results indicated that there was a significant positive relationship
between the quality of post-flight services and passenger satisfaction. From the
indicators of post-flight services, passenger comments and concerns (r 0.503) had
Airline service
quality
529
Conclusion
In general the study findings have coincided with other studies that the quality of
airlines services has a significant influence on passenger satisfaction and loyalty.
Findings indicated that pre-flight, in-flight and post-flight services had a significant
effect on passenger satisfaction. In addition to that, passenger satisfaction as a mediating
variable also had a significant effect on passenger loyalty. The study results imply that
airline marketers should develop various strategies to improve service quality, for
example, meeting passengers desired service levels, improving the quality of in-flight
meals, solving service problems effectively, developing convenient reservation and
ticketing systems, making convenient schedules for passengers and reducing the effect
of service failures as these directly affect passenger satisfaction and loyalty.
Implications of the results to the various stakeholders
Managerial implications to the airline companies
The results of this study highlight to management that safety and security are the most
important in-flight service quality dimensions in international air travel as perceived
w2
df
Sign
Status
62.255*
66.676*
1.316E*
16
16
16
0.000
0.000
0.000
Significant
Significant
Significant
w2
df
Sign
Status
1.560E2
89.604
1.100E2
16
16
16
0.000
0.000
0.000
Significant
Significant
Significant
Table V.
w2-test results for
post-flight services and
passenger satisfaction
Table VI.
w2-test results for
passenger satisfaction
and passenger loyalty
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Zeithaml, V.A. and Bitner, M.J. (1996), Services Marketing, Tata McGraw Hill, New Delhi.
Corresponding author
Juliet Namukasa can be contacted at: jnamukasa@mubs.ac.ug
1. Blaise P. Waguespack, Dawna L. Rhoades. 2014. Twenty five years of measuring airline service quality
or why is airline service quality only good when times are bad?. Research in Transportation Business &
Management 10, 33-39. [CrossRef]