UTMUTMUNIVERSITI TEKNOLOGI MALAYSIA

A STUDY OF SERVICE QUALITY FROM THE PERSPECTIVE OF CUSTOMERS OF AIR ASIA,

AT SULTAN ISMAIL INTERNATIONAL AIRPORT, JOHOR

By: Sangeetha a/p Balasubramaniam

• Chapter 1 – Introduction Background of the Study Problem Statement Research Questions Purpose of the Study Objective of the Study Scope of the Study Significance of the Study Limitation of the Study Conceptual Definition

2

CONTENTSCONTENTS

• Chapter 2 – Literature Review Customer Satisfaction Service Quality Service Quality Models Ten Service Quality Dimensions• Chapter 3 – Research Methodology Research Design Selection Instrumental Collection of Data Sampling Data Analysis

3

CHAPTER 1

INTRODUCTION

4

5

• Essential for the airline company to ensuring the delivery of high service quality

• The providers may not know what service features are important to passengers and may influence the level of service quality.

• Delivering each customer service quality component is as essential as the component itself

• Attributes important to one group may not be critical to another and it differs accordingly to the customer’s perception.

Background of the StudyBackground of the Study

6

• Competition between airline companies has been keen

• Passengers do make their decisions about airline based on the quality of service and facilities of an airline company

• low price alone is not enough for an airline company to compete in the airline market.

• SKYTRAX have officially ranked Air Asia as 3rd Ranking of Products and Service Quality

• reflect inconsistent standards of Staff Service/ Product delivery in either Onboard or Airport environments.

Problem StatementProblem Statement

7

• What is the level of customer expectation towards the service quality provided by Air Asia?

• What is the level of customer satisfaction towards the service quality provided by Air Asia?

• Which is the attribute that influence customer satisfaction?

Research QuestionsResearch Questions

8

• To identify the level of customer expectation towards the service quality provided by Air Asia

• To identify the level of customer satisfaction towards the service quality provided by Air Asia

• To discover the attribute that influence customer satisfaction

Objective of the StudyObjective of the Study

9

• Air Asia airline at Sultan Ismail International Airport, Johor Bahru

• Domestic passengers of Air Asia • Identified the level of service quality of Air

Asia by using SERVQUAL model• Measure customers’ expectation of service

quality and customers perception of service performance

• Identify the attribute that influence the customer satisfaction

Scope of the StudyScope of the Study

10

• Helpful for airline strategic planning in mapping out the strategies in improving customer’s service quality

• Enable to assist management knowledge in better understanding customer’s perception regarding service quality

• Enhance the current knowledge of perceived service quality attributes in addressing the global competitive edge

Significance of the StudySignificance of the Study

11

• Conducted only to Air Asia domestic passengers at Sultan Ismail International Airport, Johor

• Time frame to complete the study and the generalization of the study

• Reliability of the findings is subject to sincerity and truthfulness

• Social study- argument and discussion are subjective

• Customer’s habit and behavior changes according to their mood and situation

Limitation of the StudyLimitation of the Study

CHAPTER 2

LITERATURE REVIEW

12

13

• Good customer satisfaction has an effect on the profitability and reputation of nearly every business

• Customers who perceive poor services will typically relate their dissatisfaction to between fifteen to twenty others

• Satisfied customers improve business and dissatisfied customers impair business

• Customer satisfaction is an asset that should be monitored and managed just like any physical asset

Customer SatisfactionCustomer Satisfaction

14

• Hoffman & Bateson (2001) defines service quality as an attitude “formed by a long-term, overall evaluation of a performance”. Attitude is defined as “a consumer’s overall, enduring evaluation of a concept or object, such as a person, a brand, or a service.” (Arnauld et al, 2002)

• service quality attributes applicable in the transportation industry and in particular the airline would be responsiveness, reliability, friendliness, security and safety, and the list can be un-exhaustive.

Service QualityService Quality

15

• Gap Model

This model offers an integrated view of the consumer-company relationship. It is based on substantial research amongst a number of service providers. In common with the Gronroos model it shows the perception gap (Gap 5) and outlines contributory factors.

Service Quality ModelsService Quality Models

16

Service Quality ModelsService Quality Models

17

Service Quality ModelsService Quality Models

•Rater

A complementary analysis of the perception gap is the RATER model also produced by Zeithaml (1990). RATER identifies the 5 key areas which together form the qualities of a service offering from a customer perspective.

18

Service Quality ModelsService Quality Models

Dimension Description Relative importance

Reliability Ability to perform the promised service dependably and accurately

32%

Responsiveness Willingness to help customers and provide prompt service

22%

Assurance Knowledge and courtesy of employees and their ability to convey trust and confidence

19%

Empathy Caring individualised attention the firm provides its customers

16%

Tangibles Appearance of physical facilities, equipment, personnel and communication materials

11%

RATER dimensions sorted by relative importance (Zeithaml 1990)

19

Service Quality ModelsService Quality Models

• Kano’s Two Factor Model

In 1984 the Japanese quality guru, Professor Noriaki Kano, introduced a two-factor quality model, commonly known as "Kano's Curve“. The curve illustrates the difference between must-be, attractive, and linear quality elements. The horizontal axis describes customer satisfaction that can move from "very dissatisfied" to "very satisfied". The vertical axis describes the existence or non-existence of a quality element, ranging from "not available" to "high degree of availability".

20

Service Quality ModelsService Quality Models

Kano’s revised curve

21

• Gronroos Perceived Service Quality Model

In Gronroos' Perceived Service Quality model, expectations are a function of market communications, image, word of mouth, and consumer needs and learning, whereas experience is a product of a technical and functional quality, which is filtered through the image.

Service Quality ModelsService Quality Models

22

Service Quality ModelsService Quality Models

23

• Parasuraman et al. (1986) concluded that regardless of the types of service, there are at least ten service quality dimensions in evaluating quality service. (SERVQUAL 1)

• Ten dimensions of the original service quality can be refined into five dimensions.

Ten Service Quality DimensionsTen Service Quality Dimensions

24

Ten Service Quality DimensionsTen Service Quality Dimensions

Dimensions (original) Dimensions (Revised)

Definitions

Tangibles Tangibles Appearance of physical things

Reliability Reliability Ability to perform the promised service

CompetencyCourtesyCreditabilitySecurity

Assurance The knowledge and courtesy of staff and employees in their ability to meet customer demand and needs

CommunicationAccess Understanding the customer

Empathy The caring and individualized attention to customers

Responsiveness Responsiveness Willingness to assist customers and give prompt services

CHAPTER 3

RESEARCH METHODOLOGY

25

26

• Selection and design of survey instrument• Data collection through field study• Editing of data and coding• Initial examining of the data for corrections• Data entry into computer software/

processing • Problems encountered during the field survey• Validation of data

Research DesignResearch Design

27

• QUESTIONNAIRE

i. Demographic

ii. Choice attribute

(E.g. Frequent flyer program, Quality of in-flight service, Convenient scheduling, Price of ticket, Shortest direct flight, Airline safety, Punctuality, etc)

iii. Gap Measurement Statements

The statements are design such that the overall customer’s expectation and perception can be measured by obtaining the gap. Expected Quality and Perceived Quality are measured by passengers using the Likert-scale as Strongly Disagree (=1) through Strongly Agree (=5) and taking the mean differences in order to measure the service gap.

Selection Instrumental Selection Instrumental

28

Condition (IF..) CS/DS Paradigm

Outcome

P = E Zero Neutral

P > E Positive Satisfaction

P < E Negative Dissatisfaction

CS/DS – Customer Satisfaction/ Dissatisfactio P - Perception E - Expectations

29

iv. In-flight Service Quality Attributes

This part consists of in-flight service attributes in various areas, such as amenities, cabin food service, in-flight sales and cabin condition. In this section the passengers are required to rate the overall service quality based on Likert system, with ‘Very Dissatisfied’ with value of (=1), ‘Dissatisfied’ (=2), ‘Moderately Satisfied’ (=3), ‘Satisfied’ (=4) and ‘Very Satisfied’ (=5) labels.

30

v. Ten Service Quality Attributes- Responsiveness- Reliability- Service Quality- Reputation- Economical- Good value for the money- Courtesy- Credibility- Competency- Overall service

31

Collection of DataCollection of Data

• Primary Data

- through questionnaire- data collected from the domestic passengers- random sampling format- loaded into a sampling bag for dispatch on the

respective domestic flights- the survey bags will be distribute by the flight

supervisor on board the respective flight- completed survey forms will be collected through

the normal channel after each flight

32

Collection of DataCollection of Data

• Secondary Data- data that have already been collected for some

purpose other than the problem at hand (Burns and Bush, 2003)

- taken from company’s own literature and records of past performance and data from past market research previously carried by various agencies such as and other airline sources

- books, journals, thesis and exploration through internet.

33

• Random sampling method• Probability sampling – known in advance• Sample size of survey only covers Air Asia

domestic flight passengers travelling from Sultan Ismail International Airport, Senai (Johor)

SamplingSampling

34

SamplingSampling

AIRBUS 320 – 186 seats

35

• Statistical Package for Social Science (SPSS) version 14.0

i. Descriptive Statistic- To identify the level of customer expectations

and satisfaction towards the service quality provided by Air Asia

- Through the mean value

Data AnalysisData Analysis

36

ii. Multiple Regression- helps us understand how the typical

value of the dependent variable changes when any one of the independent variables is varied, while the other independent variables are held fixed

- To determine the attribute that influence customer satisfaction

Data AnalysisData Analysis

37

iii. Factor Analysis- will be utilized to study the various

service quality attributes which relates to customer satisfaction level for Air Asia

- The basic assumption of factor analysis is that underlying factors in this study is the service quality attributes

- flight service quality attributes will be reduced according to the acceptable factors so that it will be simple for interpretation

Data AnalysisData Analysis

THANK YOU

Q & A

Section

38