Elevating brand loyalty: Deciphering the impact of airline service quality and customer satisfaction in Bangkok’s aviation industry: Case study low-cost airlines

Sipnarong Kanchanawongpaisan, Fei Zhou, Betty Wan Niu Voon, Liangyan Lu, Rachel Sing-Ee Tan

Article ID: 5619
Vol 8, Issue 8, 2024

VIEWS - 229 (Abstract) 89 (PDF)

Abstract


This research investigates the relationship between the quality of airline services, customer satisfaction, and brand loyalty with low-cost airlines in Bangkok’s aviation business. It uses structural equation modeling (SEM) to examine the replies of 521 passengers. The study demonstrates a robust and favorable correlation between the quality of service and customer satisfaction, with a direct impact coefficient of 0.961. Furthermore, service quality directly (0.708) and indirectly (0.284) impact brand loyalty. These impacts are mediated by customer satisfaction, which directly affects brand loyalty with a correlation of 0.296. The model explains 92.3% and 99.0% of the variation in customer satisfaction and brand loyalty, respectively, suggesting a robust and reliable match. The demographic study reveals that the predominant group of participants consists of well-educated, middle-income women who regularly use airline services. These results highlight the importance of service quality in improving customer satisfaction and promoting brand loyalty among travelers. Airlines should emphasize the ongoing enhancement of service quality and customer satisfaction to sustain their competitive edge. This research enhances the existing body of knowledge by emphasizing the intermediate function of customer satisfaction and presenting detailed observations relevant to Bangkok’s aviation industry, providing guidance for infrastructural development and investment. It also offers practical suggestions for managing service quality and implementing customer retention strategies.


Keywords


service quality; low-cost airlines; brand loyalty; infrastructural development

Full Text:

PDF


References


Ahmad, W., Waheed, A., Arif, F., et al. (2023). Exploring the linkage between service quality and customer satisfaction in the Chinese air industry during the COVID-19 pandemic. International Journal of Electronic Customer Relationship Management, 14(1), 1. https://doi.org/10.1504/ijecrm.2023.131076

An, M., & Noh, Y. (2009). Airline customer satisfaction and loyalty: Impact of in-flight service quality. Service Business, 3(3), 293–307.

Arslan, Y., Aksoy, T. M., & Yavuz, M. (2020). The impact of inflight service quality on customer satisfaction and loyalty: Evidence from the US airline industry. Journal of Air Transport Management, 87, 93–106.

Azhari, N. F. B., bin S Senathirajah, A. R., & Haque, R. (2023). The role of customer satisfaction, trust, word of mouth, and service quality in enhancing customers' loyalty toward e-commerce. Transnational Marketing Journal, 11(1), 31–43.

Bachwich, A. R., & Wittman, M. D. (2017). The emergence and effects of the ultra-low-cost carrier (ULCC) business model in the U.S. airline industry. Journal of Air Transport Management, 62, 155–164. https://doi.org/10.1016/j.jairtraman.2017.03.012

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Berry, L. L., Zeithaml, V. A., & Parasuraman, P. A. (1990). Five Imperatives for Improving Service Quality. Sloan Management Review, 31(4), 9–38.

Bhasin, H. (2022). The Servqual Model—Definition, Dimensions, Gaps and Advantages Service. Available online: https://www.marketing91.com/servqual/#:~:text=Servqual%20Service%20Conclusion-,What%20is%20the%20SERVQUALs%20model%3F,between%20customer%20expectations%20and%20needs (accessed on 22 May 2024).

Brady, M. K., & Cronin, J. J. (2001). Some New Thoughts on Conceptualizing Perceived Service Quality: A Hierarchical Approach. Journal of Marketing, 65(3), 34–49. https://doi.org/10.1509/jmkg.65.3.34.18334

Brown, R. M., & Mazzarol, T. W. (2009). The importance of institutional image to student satisfaction and loyalty within higher education. Higher Education, 58(1), 81–95. https://doi.org/10.1007/s10734-008-9183-8

Chen, F. Y., & Chang, Y. H. (2005). Examining airline service quality from a process perspective. Journal of Air Transport Management, 11(2), 79–87. https://doi.org/10.1016/j.jairtraman.2004.09.002

CNN. (2020). Delta announces new cleaning measures for planes and airports amid coronavirus. Available online: https://www.cnn.com/travel/article/delta-air-lines-cleaning-measures-coronavirus/index.html (accessed on 22 May 2024).

Doganis, R. (2006). The Airline Business. Routledge.

Dunford, D., Dale, B., Stylianou, N., et al. (2020). Coronavirus: The world in lockdown in maps and charts. Available online: https://www.bbc.com/news/world-52103747 (accessed on 22 May 2024).

Elliott, K. M., & Shin, D. (2002). Student Satisfaction: An alternative approach to assessing this important concept. Journal of Higher Education Policy and Management, 24(2), 197–209. https://doi.org/10.1080/1360080022000013518

Frost, J. (2023). Multicollinearity in Regression Analysis: Problems, Detection, and Solutions. Available online: https://statisticsbyjim.com/regression/multicollinearity-in-regression-analysis/ (accessed on 22 May 2024).

Garaus, M., & Hudáková, M. (2022). The impact of the COVID-19 pandemic on tourists’ air travel intentions: The role of perceived health risk and trust in the airline. Journal of Air Transport Management, 103, 102249. https://doi.org/10.1016/j.jairtraman.2022.102249

Gazi, M. A. I., Al Mamun, A., Al Masud, A., et al. (2024). The relationship between CRM, knowledge management, organization commitment, customer profitability and customer loyalty in telecommunication industry: The mediating role of customer satisfaction and the moderating role of brand image. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 100227.

Ghosh, S. P. (1958). A Note on Stratified Random Sampling with Multiple Characters. Calcutta Statistical Association Bulletin, 8(2–3), 81–90. https://doi.org/10.1177/0008068319580204

Gualini, A., Martini, G., & Porta, F. (2024). Are low cost carriers airfares still lower? A comparison with full service carriers in Europe. Journal of the Air Transport Research Society, 2, 100012. https://doi.org/10.1016/j.jatrs.2024.100012

Hair, J. F., Black, W., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis: A Global Perspective. Upper Saddle River.

Hu, Y., Dai, L., Fuellhart, K., et al. (2024). Examining competition among airline regarding route portfolios at domestic hubs under government regulation: The case of China’s aviation market. Journal of Air Transport Management, 116, 102567. https://doi.org/10.1016/j.jairtraman.2024.102567

Huang, P. L., Lee, B. C. Y., & Chen, C. C. (2017). The influence of service quality on customer satisfaction and loyalty in B2B technology service industry. Total Quality Management & Business Excellence, 30(13–14), 1449–1465. https://doi.org/10.1080/14783363.2017.1372184

Huang, Y. C. (2023). Low-Cost Airlines Not So Low-Cost—–Exploring the Relationships among Travel Motivation, Service Quality and Satisfaction: The Moderating Roles of Perceived Value. Research in Transportation Business & Management, 49, 101008. https://doi.org/10.1016/j.rtbm.2023.101008

Imroz, S. M., Curtis, T., & Ambrose, S. C. (2023). Perception of Crisis Management, Service Quality, and Loyalty Programs on Airline Travel Intention: What Roles Do Fear of COVID-19 and Risk Attitude Play? Sustainability, 15(18), 13753. https://doi.org/10.3390/su151813753

Klemenčič, M. (2014). Student power in a global perspective and contemporary trends in student organising. Studies in Higher Education, 39(3), 396–411. https://doi.org/10.1080/03075079.2014.896177

Kungwola, K. (2023). Airline’s COVID-19 preventive measures and air travelers’ perception during Covid-19 pandemic in Thailand. E3S Web of Conferences, 389, 05013. https://doi.org/10.1051/e3sconf/202338905013

Lawton, T. C. (2002). Cleared for Take-Off: Structure and Strategy in the Low Fare Airline Business. Ashgate Publishing.

Lee, J. M., & Kim, J. K. (2022). Effects of service quality of airline mobile application and individual characteristics on user satisfaction and intention to reuse. International Journal of Mobile Communications, 21(1), 134. https://doi.org/10.1504/ijmc.2023.127375

Likert, R. (1932). A Techinque for the Measurement of Attitude. Archives of Psychology, 22.

Limberger, P. F., Pereira, L. A., & Pereira, T. (2021). The impact of customer involvement in airline loyalty programs: a multigroup analysis. Tourism & Management Studies, 17(3), 37–49. https://doi.org/10.18089/tms.2021.170303

Lippitt, P., Itani, N., O’Connell, J. F., et al. (2023). Investigating Airline Service Quality from a Business Traveller Perspective through the Integration of the Kano Model and Importance–Satisfaction Analysis. Sustainability, 15(8), 6578. https://doi.org/10.3390/su15086578

Liu, H., Abdullah, N. H. B., & Lee, S. Y. (2024). A review of ancillary services in the airline industry. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2322018

Maneenop, S., & Kotcharin, S. (2020). The impacts of COVID-19 on the global airline industry: An event study approach. Journal of Air Transport Management, 89, 101920. https://doi.org/10.1016/j.jairtraman.2020.101920

Mantin, B., Gillen, D., & Delibasi, T. T. (2024). Measuring the impact of scheduling overlap and market structure on prices: Evidence from the airline industry. Transportation Research Part A: Policy and Practice, 183(1), 1–23. https://doi.org/10.1016/j.tra.2024.104044

Nasurdin, M. A., Panatik, S. A., & Saufi, A. M. (2020). Assessing customer satisfaction with airline service quality: Evidence from Malaysia. Journal of Air Transport Management, 86(1), 135–149.

O’Connell, J. F., & Williams, G. (2005). Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines. Journal of Air Transport Management, 11(4), 259–272. https://doi.org/10.1016/j.jairtraman.2005.01.007

Octaviani, R. D., Rusdianto, B. N., Nuralifah, D. A., et al. (2023). The Effect of Service Failures and Service Quality on Customer Loyalty and Repurchase Intentions: A Case Study of Lion Air Group During the COVID-19 Pandemic. In: Proceedings of the 2023 KnE Social Sciences/International Conference on Advance & Scientific Innovation (ICASI).

Office of Secretary. (2023). Students Statistics. Ministry of Higher Educations, Science, Research and Innovation.

Oliver, R. L. (1980). A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions. Journal of Marketing Research, 17(4), 460–469. https://doi.org/10.1177/002224378001700405

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A Conceptual Model of Service Quality and Its Implications for Future Research. Journal of Marketing, 41–50.

Parasuraman, P. A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL A Multiple-item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 64(1), 12–40.

Rahn, A., Schuch, M., Wicke, K., et al. (2024). Beyond flight operations: Assessing the environmental impact of aircraft maintenance through life cycle assessment. Journal of Cleaner Production, 453, 142195. https://doi.org/10.1016/j.jclepro.2024.142195

Reuters. (2020). Delta Air Lines to require all passengers wear masks starting Monday. Available online: https://www.reuters.com/article/us-health-coronavirus-delta-airlines/delta-air-lines-to-require-all-passengers-wear-masks-starting-monday-idUSKBN22H1MN (accessed on 22 May 2024).

Schumaker, R. E., & Lomax, R. G. (2010). A beginner’s Guide to Structural Equation Modeling. Taylor and Francis Group.

Spence, M. (1978). 18—Job Market Signaling. Uncertainty in Economics, 283–306.

Sultan, P., & Wong, H. Y. (2010). Service quality in higher education—a review and research agenda. International Journal of Quality and Service Sciences, 2(2), 259–272.

Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2), 203–220.

Tajfel, H., & Turner, J. (1979). An integrative theory of intergroup conflict. In: Austin W., Worchel, S. (editors). The Social Psychology of Intergroup Relations. Brooks/Cole.

The Point Guy. (2020). JetBlue Is Blocking Middle Seats Through July. Available online: https://thepointsguy.com/news/jetblue-blocking-middle-seats/ (accessed on 22 May 2024).

WHO. (2020). This statement is no longer maintained. An updated version was published on 29 June 2020. Available online: https://www.who.int/news-room/detail/27-04-2020-who-timeline---covid-19 (accessed on 22 May 2024).

Wongcharoenkul, S., & Suntrayuth, S. (2023). Tourism Service Management and Senior Foreign Travelers’s Behavior in Thailand. Rajabhat Chiang Mai Research Journal, 24(1), 52–71. https://doi.org/10.57260/rcmrj.2023.260674

Wu, S., Kremantzis, M. D., Tanveer, U., et al. (2024). Performance evaluation of the global airline industry under the impact of the COVID-19 pandemic: A dynamic network data envelopment analysis approach. Journal of Air Transport Management, 118, 102597. https://doi.org/10.1016/j.jairtraman.2024.102597

Zach. (2019). A Guide to Multicollinearity & VIF in Regression. Available online: https://www.statology.org/multicollinearity-regression/#:~:text=Multicollinearity%20in%20regression%20analysis%20occurs,and%20interpreting%20the%20regression%20model (accessed on 22 May 2024).

Zahraee, S. M., Shiwakoti, N., Jiang, H., et al. (2023). A study on airlines’ responses and customer satisfaction during the COVID-19 pandemic. International Journal of Transportation Science and Technology, 12(4), 1017–1037. https://doi.org/10.1016/j.ijtst.2022.11.004

Zeithaml, V. A. (1988). Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing, 52(3), 2–22. https://doi.org/10.1177/002224298805200302




DOI: https://doi.org/10.24294/jipd.v8i8.5619

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Sipnarong Kanchanawongpaisan, Fei Zhou, Betty Wan Niu Voon, Liangyan Lu, Rachel Sing-Ee Tan

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.