To Study on the Service Quality on Passenger Satisfaction in the

Indian Aviation Industry.

By

MD MOZAMMIL (21BAT1067)

AAKANSHA SAHU (21BAT1091)

SURYANSHU KUMAR (21BAT1034)

SUMAN KUMAR (21BAT1090)

Department of Airlines & Airport Management

Chandigarh University (Mohali, Punjab, India)

INTRODUCTION
In several industries, like public transportation, hotels, and the airline industry, service quality is
crucial since it has a big impact on customers' perceptions, levels of satisfaction, and overall brand
perception. Its significance in influencing passenger behaviour and business outcomes is supported by
research.

An important result of outstanding service quality is passenger happiness. Passenger satisfaction

grows when services meet or surpass expectations, directly correlating service quality to emotional
wellbeing. These increases repeat business and support for the service. (Parasuraman, 1988)

Passenger satisfaction is significantly impacted by service quality, which has an impact on how they
perceive and react to services and eventually shapes how satisfied they are. This complex link has
been thoroughly studied, and studies in the airline sector show that even a small 5% improvement in
customer retention can result in profitability benefits of up to 95%. Satisfied customers increase a
service provider's revenue and frequently tell others about their pleasant experiences, which is
consistent with social psychology research that highlight the power of advertisement through word-of-
mouth. (Reichheld & Sasser, 1990; Katz & Lazarsfeld, 1955)

Poor customer service, however, can be harmful since dissatisfied customers might complain both
offline and online. A single negative occurrence reported on social media sites like Twitter or
TripAdvisor may rapidly harm a service provider's reputation in the age of social media. This
emphasizes how critical it is to uphold good service standards in order to reduce the possibility of
harm to your reputation. (Dijkmans et al., 2015)

A connection between service providers and customers have an important effect on customer
loyalty and everlasting relationships, the emotional component of service quality is essential.
The total experience is improved by courteous personnel, individualized services, and
effective procedures that create trust and comfort. (Bitner, Booms, & Tetreault, 1990)

Anderson and Sullivan (1993) found that consistently high-quality services allow enterprises
to charge greater fees. Passengers are frequently willing to pay a premium for great
experiences, validating the notion that investing in service quality can boost profitability.

Perceived high service quality correlates with increased satisfaction levels. Industries like airlines,
hospitality, and public transportation have shown that efficient and courteous service, minimal delays,
and responsive staff lead to higher passenger satisfaction. (Cronin & Taylor, 1992)
Passenger happiness is moderated by service quality. Airlines that provide consistent and
quick services, clear communication, and a sense of security promote pleasant passenger
experiences, resulting in greater satisfaction rates. (Sureshchandar et al., 2002)

Service quality has an impact on passenger loyalty and repeat business. Customers who are satisfied
with a service provider are more likely to make repeat purchases and switch providers. This
emphasizes the financial impact, as frequent passengers and favorable word-of-mouth add to the
bottom line.. (Zeithaml et al., 1996)

Poor service quality, on the other hand, leads to unhappiness and unfavorable views. Negative
experiences, such as delayed flights or unhelpful staff, can have a substantial influence on passenger
satisfaction, potentially leading to negative reviews and reputational harm. (Oliver, 1981)

Passengers benefit from improved service quality in a variety of ways, including increased
satisfaction, loyalty, positive word-of-mouth, and financial gains. Poor service quality, on the
other hand, can have negative consequences, such as reputational harm and disgruntled
consumers. Delivering extraordinary experiences becomes increasingly important as
industries appreciate its value in developing favourable passenger views and guaranteeing
long-term profitability.

CONCEPTUAL BACKGROUND

When it comes to the aviation industry, service quality, customer satisfaction, and customer
loyalty are indeed crucial factors that researchers and industry professionals often focus on.
These dimensions are closely tied to an airline's success and profitability. The work of
Karamata et al. (2017) highlights the significance of customer satisfaction as a benchmark for
quality and organizational excellence. Similarly, Heymann (2019) emphasizes the well-
known principle that "The customer is always right." In line with this, Hutahayan and
Wahyono (2019) provide a definition of service quality as the fulfillment or enhancement of
customer needs. By exploring these concepts, researchers aim to better understand the impact
of service quality on passenger satisfaction in the aviation industry.

The Service Quality scale, known as SERVQUAL, holds a prominent position within the
realm of service management literature. Its substantial impact on customer satisfaction, and
subsequently on fostering customer loyalty (Clemes et al. 2008), has led to its widespread
adoption and citation in various research studies (Carman 1990, Saleh & Ryan 1991, Atilgan
et al. 2003, Martinez Caro & Martinez Garcia 2008, Chand 2010, Ryan & Cliff 1997). With
the intensification of competition among airlines since the 1990s, service providers have been
compelled to prioritize customer needs to establish a devoted customer base. Power (2017)
underscores the heightened focus on customer happiness in the aviation industry over the past
five years. Furthermore, manufacturers of air carriers are under pressure to assist businesses
in their endeavors to secure and retain customer loyalty (Chen et al. 2011).

As Law (2017) points out, service quality, particularly within the aviation sector,
encompasses a customer's overall perception of a company, whereas satisfaction is an
immediate reaction to the consumption of services. In the digital age, Prentice et al. (2017)
observe that opinions of both content and dissatisfied passengers spread rapidly, with content
customers contributing to profitability and dissatisfied ones potentially harming an
organization's reputation and financial standing. Previous research (Kim, Lee, and Yoo 2006)
suggests that satisfied customers not only display loyalty but also recommend positive
experiences to their peers. Given the industry's strong emphasis on customer service, it
becomes imperative to identify and examine the key factors that enhance customer
satisfaction in the aviation domain. In this context, understanding the factors from the
customer's perspective is crucial (Ringle et al. 2011).

Back in 2017, the concept of loyalty was defined as an individual's inclination to consistently opt for a
specific service or product. This connection between customer loyalty and satisfaction is especially
prevalent in environments where top-notch services are offered. Notably within the airline industry,
customer satisfaction plays a pivotal role, as it cultivates customer loyalty by means of word-of-
mouth marketing (Chow & Tsui 2017). Given the interconnected nature of service quality, customer
satisfaction, and customer loyalty, research in this domain is built upon a foundational model of
hypotheses.

To conclude, the aviation industry places significant importance on comprehending and

enhancing service quality, customer satisfaction, and customer loyalty due to their intricate
connections with economic prosperity. Numerous research studies and viewpoints contribute
to the ongoing exploration and analysis of the dynamic relationships among these elements in
the airline sector.
LITERATURE REVIEW