A Study On Service Quality And Customer Satisfaction In Domestic .

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International Journal of Science and Research (IJSR)ISSN (Online): 2319-7064Index Copernicus Value (2015): 78.96 Impact Factor (2015): 6.391A Study on Service Quality and CustomerSatisfaction in Domestic Aviation Sector withReference to Air India Limited, MumbaiC. Murugesan1, Dr. R. Perumalsamy21Ph.D.Research Scholar, Sri Subash College of Arts and Science, Pollachi, Tamil Nadu, India2Principal,Sri Subash College of Arts and Science, Pollachi, Tamil Nadu, India.Abstract: Air Transport is the most recent mode of transport. It is the gift of the twentieth century to the world. The two world warsgave a great impetus to the development of air transport in almost all the countries of the world. Aviation creates large number of jobs,every million passenger transported fashion thousand jobs directly at the airports and a further enlargement in the national economy.However the outrageous rates have made it the mode of travel of the rich or of the business community for whom time is more affluentthan air travel. The success of an any airways fully depends on quality of service delivery and customer satisfaction. The main objectiveof the present study is to find out the customer satisfaction in airways in various objects like, quality, service, fare etc.Keywords: Airline Booking, Service, Quality, Passengers Satisfaction, Tangibility, Reliability, Assurance, Responsiveness and Empathy1. IntroductionIndia (AI) domestic careers service quality and its influenceon customers satisfaction.SERVQUAL was presented as a multidimensional constructand in their original formulation, Parasuraman et al. (1985)indicated ten components of SERVQUAL, namelyreliability, responsiveness, competence, access, courtesy,ility, security, understanding/knowingcommunication, credibility,the customer and tangibles. In 1988, (see Parasuraman et al.,1988), these components were conceptualized into fivedimensions; reliability, assurance, tangibles, empathy, andresponsiveness. They developed 22-item instruments tomeasure customer expectations and perceptions (E and P) ofthe five dimensions of SERVQUAL. Four or five items wereused to measure each dimension. The instruments wereadministered twice in different forms, first to measureexpectations, and second to measure perceptions. Customersatisfaction can be conceptualized as either transactionspecific satisfaction or cumulative satisfaction. Transactionspecific satisfaction is a customer’s evaluation of her or hisexperience and reactions to a specific company encounter.Cumulative satisfaction refers to customers overallevaluation of patronage experience from inception to date.In the airline industry context the problem is whethermanagement can perceive correctly what passengers wantand expect. Moreover, expectations serve as standards orreference points for customers. In evaluating service quality,passengers compare what they perceive they get in a serviceencounter with their expectations of that encounter.Assessing passenger expectations is not a static exercise aspassengers are becoming increasingly sensitive to quality.There are many breakdowns of services in airlines industry.They can be divided into four main areas which arepassenger services, baggage or cargo services, engineeringservices and catering services. Even there are manypassenger carriers in India such as AirAsia India, GoAir,IndiGO, Jet Airways and Spice Jet, Air India gains themaximum credibility among passengers and therefore theresearch is to investigate the passenger perception of the Air2. Review of LiteratureArash Shahin (2007) evaluated the concept of servicequality and the model of service quality gaps. The authorstudied the SERVQUAL approach and its role in theanalysis of the customer expectations and perceptions withsupport example. An outcome of the study outlined the factthat although SERVQUAL could close one of the importantservice quality gap associated with external customerservices, it could be extended to close other major gaps andtherefore, it could be developed in order to be applied forinternal customers. Thus, it is necessary to consider a serviceprovider as a major element to measure service quality inairline services.Girish Prayag (2007) assessed the service quality of smallairlines at Air Mauritius, by using the SERVQUAL modeland determined the relative importance attributed to servicequality dimensions by international tourists. Around 140samples were collected from international airline passengerswho are travelling essentially for a leisure trip. The paperfound that service quality structural dimensions are contextand culture specific. Four factors are perceived asinfluencing perceptions of service. Service efficiency andaffect is being the most important, while servicepersonalization, reliability and tangibles are the leastimportant. Empathy as a service dimension is valued morethan assurance. Customer satisfaction and willingness torecommend the airline is primarily dependent on serviceefficiency and affect. The starting-point for serviceimprovements at Air Mauritius is better management ofservice reliability. The company is able to create highperceptions of service using tangible cues. The generation ofa vision of excellence supported by contact employees‟empowerment should improve perceptions of service.There is potentially a link between expectations of serviceVolume 6 Issue 2, February 2017www.ijsr.netLicensed Under Creative Commons Attribution CC BYPaper ID: ART20179421538

International Journal of Science and Research (IJSR)ISSN (Online): 2319-7064Index Copernicus Value (2015): 78.96 Impact Factor (2015): 6.391levels at destination and tourists‟ expectations from the flagcarrier. The smaller airline companies have to resort tostrategic alliances and service differentiation to survive inthis globally integrated industry. The paper fulfiled the gapin the existing literature on service quality management insmall airlines.3. Statement of the StudyService quality is a evaluation of Expectation (E) about aservice with the Performance (P) SQ P-E. An establishmentwith high service quality will fulfill its customer needs at thesame time remains reasonably economical and competitive.Airline Transport firms are admitting that service quality canoperate as an intentional measure to increase the “Value” ofthe “total transport service offering” in the eyes ofcustomers, to differentiate the service offering from that oftheir competitors and to promote customer satisfaction. Veryfew studies are conducted concerning to service quality andcustomer satisfaction in developing countries. Theresearcher attempts to examine the importance of servicequality expected and perceived by the domestic passenger ofAir India Limited in Mumbai and their level of satisfactionbased on the serviced provided by Air India.The higher expectations of the passengers and toughcompetition from the private sector Airline companies whoalso exhibit themselves with novel marketing techniques andstrategies have significantly influenced the customers whichforced the Public Sector Airlines to perform well and avoidset backs in the Airline Transport Business. Therefore thepresent study is conducted to understand whether theperformance and expectation gap is bridged with the specificdimensions such as Tangibility, Reliability, Responsiveness,Empathy and Assurance and whether the satisfaction level isIndia Limited inachieved by the domestic passengers of Air IndiaMumbai.4. Objectives of the Study1) To examine gap between expectation and perception onservice quality leading to Satisfaction.2) To evaluate the influence of demographic variables onsatisfaction towards service quality.5. Hypotheses1) There is a significant relationship between demographicsof the respondents and their level of satisfaction towardsservice quality2) There is a significant relationship between ServiceQuality dimensions and Satisfaction6. MethodologyThe research is descriptive in nature. For the present study,the data were collected by distributing the questionnairesdirectly to the AIL domestic passengers who agreed to fill-inthe questionnaire. 2250 questionnaires were distributedconsidering minimum three domestic journey by thepassengers of Air India Ltd. Although, questionnaires weredistributed only to those passengers who agreed toparticipate, only 765 questionnaires from the distributed2250 were returned which comprises 34% of the responserate. After carefully scrutinizing the data 630 were retainedfor analysis. Relevant statistical tools used are PercentageAnalysis, Gap Analysis and Chi-Square Test.7. Demographic VariablesThe demographic variables of the Air India Ltd passengersconsidered to determine the Perception and Expectation ofService Quality leading to Satisfaction classified by theirage, gender, marital status, educational qualification,occupation, monthly family income which are theindependent demographic variables for the study.Table 1: Demographic Variables of the RespondentsSl. No.Demographic Variables630 Respondents (100 %)1.Age30 and below20532.531 to 5034354.451 and l StatusMarried42968.1Unmarried20131.94.Educational QualificationFormal Education (H.Sc.-UG)10015.9PG / cupationPrivate Sector44170.0Government Sector6310.0Business12620.06.Monthly Family IncomeBelow Rs.500,00029947.5Rs.5,00,001 to 10,00,00019430.8Above Rs.10,00,00113721.7Source: Computed from Primary DataTable-1 shows that more than half (54.4%) of therespondents are in the age between 31 and 50 years, while32.5% of the respondents belong to the age below 30 yearsand the remaining 13% of the respondents are in the agegroup above 51 years. It is clear that majority (85.4%) of therespondents are male and 14.6% of the respondents arefemale. It is understood that most (68.1%) of therespondents are married and 31.9% of the respondents areunmarried. It is clear that less than half (45.4%) of therespondents having qualified with formal education(H.Sc./UG), while 45.4% of the respondents qualified withPost Graduation / M.Phil., 25.4% of the respondents areprofessionally qualified and the remaining 13.3% of therespondents are having other qualifications. It is understoodthat majority (70%) of the respondents are working inprivate sector, while 20% of the respondents are engaged inBusiness and the remaining 10% of the respondents areworking in Government sector. It is evident that less thanhalf (47.5%) of the respondents are having income belowRs.5,00,000, while 30.8% of the respondents are havingVolume 6 Issue 2, February 2017www.ijsr.netLicensed Under Creative Commons Attribution CC BYPaper ID: ART20179421539

International Journal of Science and Research (IJSR)ISSN (Online): 2319-7064Index Copernicus Value (2015): 78.96 Impact Factor (2015): 6.391monthly family income between Rs.5,00,000 andRs.10,00,000 and the remaining 21.7% of the respondentsare having monthly family income above Rs.10,00,000.8. Gap AnalysisManagement of service quality largely focuses on managingthe gaps between expectations and perceptions of customers[9]. The goal of the firm is to minimize the gap between (P)and (E). Rowley [10] pointed out that previous researcherssuch as Lehtinen and Lehtinen [11] and Gronroos [12] alsoapplied gap principles similar to that proposed byParasuraman et al. [1].GAP ANALYSIS-test results, the comparison between expectationsBased on t-testand perceptions rated by the Air India Limited domesticcommuters on all five service quality dimensions(tangibility, reliability, assurance responsiveness and((p 0.01) for threeempathy) indicated a significant gap (p 0.01)categories.Expectations and Perceptions onTable 2: Comparison of ExpectationsService QualityQuality enessEmpathyExpectationMean SD16.85 4.3923.24 3.9017.98 4.6516.95 3.7814.05 3.70PerceptionMean SD18.50 4.8222.60 4.5617.91 4.4017.18 4.8215.19 2.91Source: Computed from Primary DataGap (P-E)Mean-1.650.640.06-0.23-1.13As shown in the Table 2 the highest difference in the meanwas observed between expectation and perception of servicequality was from Tangibility with the mean difference of 1.65 followed by Empathy perspective with the meandifference of -1.13. While there is a marginal impact withrespect to Responsiveness perspective with the meandifferenrence of -0.23. On the other hand, the least meandifferences were observe positive with respect to Reliabilityperspective (0.64) and Assurance Perspective (0.06).Therefore, to prove the statistical significance consideringthe satisfaction factor with the service gap attributesregression analysis is conducted hereunder.9. Multiple RegressionTo examine the relationship between the service qualityattributes and satisfaction among passengers of Air IndiaLtd. in Mumbai, it was explained with the ce,Responsiveness, and Empathy) that have significant effecton the dependent factor (Satisfaction towards ServiceQuality) and this is explained through Multiple Regression.It is clear from the Table that the co-efficient of multipleA gap is the difference, imbalance or disparity which isdetermined to exist between customers’ perception of firmperformance and their prior expectation. Service quality(SQ) perceived by customers is therefore as a result of acomparison of customers’ expectation (E) of services thatthe organization should offer versus their perception of theperformance (P) delivered by the service organization.regression based on the predictor variables in which thecorrelation was found to be 0.418 which reveals moderatelevel of correlation between the service quality attributesand satisfaction of AIL passengers in Mumbai and the R2shows 17.4 percent of variation explained by theindependent variables to that of the dependent variable.When this R2 was tested for its significance by usingANOVA, F value (26.365) was found to be highlysignificant at 1 percent level.It is evident that out of five service quality attribute whichare the predictors measured to find the level of satisfactionamong AIL passengers in Mumbai which showed that thereis a significant relationship only with three service qualitydimensions (Reliability, Assurance and Responsiveness) andthere is no significant relationship with the qualitydimensions (Tangibility and Empathy).Table: Coefficient of determinants showing relationshipbetween Service Quality Attributes and their relationshipwith Satisfaction of AIL PassengersAttributesUnstandardized StandardizedCoefficientsCoefficientsBStd. nce.115.044.0962.625.009Responsiveness 07.314 .000Dependent Factor: SatisfactionThe statistical significance is explained based on the resultsof the Beta Coefficient and Critical Values viz. Reliability(t 6.821, Sig.0.000), followed by Assurance (t 2.625,Sig.0.009) and finally Responsiveness (t 3.602, Sig.0.000)which are found to be significant at 5% levels. Whereasthere is no statistical significance with respect to Tangibilitywith the t 0.260, Sig.0.795 and Empathy (t -0.216,Sig.0.829) which are found to be insignificant at 5% level.10. Chi-Square TestAn association between demographic characteristics of therespondents and their Satisfaction towards Service Qualityin their domestic travel with Air India Limited, chi-squaretest was used to test the hypothesis and the results arepresented in the Table.Volume 6 Issue 2, February 2017www.ijsr.netLicensed Under Creative Commons Attribution CC BYPaper ID: ART2017942Sig.1540

International Journal of Science and Research (IJSR)ISSN (Online): 2319-7064Index Copernicus Value (2015): 78.96 Impact Factor (2015): 6.391Table 4: Demographics of the respondents and satisfaction towards Service QualityDemographicCalculated 2 ValueAge28.095Gender1.372Marital Status41.564Educational Qualification37.665Occupational Role63.507Monthly Income32.689Source: Computed from Primary DataIt is clear that the calculated Chi-Square value (28.095,Sig.0.000) is more than the table value (9.488) which revealsthat “age of the respondents” and “Level of Satisfactiontowards Service Quality” are having significant relationship.Therefore, the null hypothesis is rejected. It is understoodthat the calculated Chi-Square value (1.372, Sig.0.504) isless than the table value (5.991) which reveals that “genderof the respondents” and “Level of Satisfaction towardsService Quality” are having insignificant relationship.Therefore, the null hypothesis is accepted. It is evident thatthe calculated Chi-Square value (41.564, Sig.0.000) is morethan the table value (5.991) which revealed that “maritalstatus of the respondents” and “Level of Satisfaction towardsService Quality” are having significant relationship.Therefore, the null hypothesis is rejected. It is clear that thecalculated Chi-Square value (37.665, Sig.0.000) is morethan the table value (12.592) which revealed that“Educational Qualification of the respondents” and “Levelof Satisfaction towards Service Quality” are havingsignificant relationship. Therefore, the null hypothesis isrejected. It is inferred that the calculated Chi-Square value(63.507, Sig.0.000) is more than the table value (9.488)which revealed that “Occupational Role of the respondents”and “Level of Satisfaction towards Service Quality” arehaving significant relationship. Therefore, the nullhypothesis is rejected. It is clear that the calculated ChiSquare value (34.423, Sig.0.000) is more than the tablevalue (9.488) which revealed that “Monthly Family Incomeof the respondents” and “Level of Satisfaction towardsService Quality” are having significant relationship.Therefore, the null hypothesis is rejected.11. Summary off the Results It is clear that maximum respondents are in the agebetween 31 and 50 years, while majority of therespondents are male and most of the respondents aremarried. It is also clear that less than half (45.4%) of therespondents having qualified with formal education(H.Sc./UG), majority (70%) of the respondents areworking in private sector and finally, it is understood thatless than half (47.5%) of the respondents are havingincome below Rs.5,00,000. It is observed that the highest difference in the mean wasobserved between expectation and perception of servicequality was from Tangibility with the mean difference of 1.65 followed by Empathy perspective with the meandifference of -1.13. While there is a marginal impact withrespect to Responsiveness perspective with the meandifferenrence of -0.23. On the other hand, the least meandifferences were observe positive with respect toReliability perspective (0.64) and Assurance Perspective(0.06). Therefore, to prove the statistical significanceD.F Table emarks0.000Significant0.504 Not gnificant0.000Significantconsidering the satisfaction factor with the service gapattributes regression analysis is conducted hereunder. It is evident that the association between specific qualitydimensions such as Reliability, Assurance andResponsiveness having significant association withSatisfaction among AIL domestic passengers whereas,there is no significant relationship between Tangibilityand Satisfaction as well as Empathy and Satisfaction thatneeded improvement. It is summarized that the demographic characteristics ofthe respondents and their Satisfaction towards ServiceQuality in their domestic travel with Air India Limited theprobabilities predicted using Chi-Square test revealed theresults that out of six demographic variables such as Age,Gender, Marital Status, Educational Qualification,Occupational Status and Monthly Income shows that fivevariables except gender were found to be significantlyrelated with the level of satisfaction towards servicequality.12. Suggestions and RecommendationsIt is observed that out of the five service quality dimensionsthree dimensions were found to have significant impact viz.Reliability, Assurance and Responsiveness which arejustifying the perception and expectation levels of thedomestic passengers of Air India Ltd., however there is awide gap observed with respect to Tangibility and Empathywhich needs significant improvement by Air India Ltd. byimproving the physical aspects like appearance and attitudeof the employees, to enhance the cleanliness, to make betterthe check-in and boarding and luggage handling mechanisminand also by providing quality in-flightcuisine. It is alsorecommended to improve the hospitality by giving due careand concern for frequent flyers.It is observed that there is a positive significant impact inthe satisfaction level on service quality among domesticpassengers of Air India Limited, irrespective of the age,gender, education, occupation and income which showsoptimistic outcome of the study. However, based on theService Quality Perception and Expectation aspects,however, it is recommended that significant improvementneeded from Air India Limited to achieve greater heights inthe years to come.13. ConclusionQuality is generally regarded as being a key factor in thecreation of worth and in influencing customer satisfaction.SERVQUAL was presented as a multidimensional constructand in their original formulation, Parasuraman et al. (1985)indicated ten components of SERVQUAL, namelyVolume 6 Issue 2, February 2017www.ijsr.netLicensed Under Creative Commons Attribution CC BYPaper ID: ART20179421541

International Journal of Science and Research (IJSR)ISSN (Online): 2319-7064Index Copernicus Value (2015): 78.96 Impact Factor (2015): 6.391reliability, responsiveness, competence, access, courtesy,communication, credibility, security, understanding/knowingthe customer and tangibles. Customer satisfaction is apersonal feeling of either pleasure or disappointmentresulting from the evaluation of services provided by anorganization to an individual in relation to expectations. Thepresent study is conducted to understand the performanceand expectation gap from which the it is observed from theresults wide gap existing in the Service Quality aspects suchas Tangibility and Empathy which needs immediateattention by the management of Air India Ltd. while thelevel of satisfaction by the customers irrespective of theirdemographic characteristics revealed significant statisticalresults, however, it is recommended that significantimprovement needed from Air India Limited to achievegreater heights in the years to come.References[1] Parasuraman V.A., Zeithaml A., Berry L. A ConceptualModel of Service Quality and Its Implications for theFuture Research. Journal of Marketing. 1985. Vol. 49,pp.41-50.[2] Zeithaml V.A., Parasuraman A., Berry L.L. Deliveringquality service: Balancing customer perceptions andexpectations. The Free Press. New York, 1990.:[3] Kotler P., Amstrong G. Principles of Marketing, 11thEd., New Jersey, Pearson Prentice Hall 2006.[4] Girish Prayag and Kiran Dookhony – Ramphul,“Clustering Passengers Expectations and Perceptions ofService Quality in Air Maurititus. Paper presented at theBAI International Conference, Singapore, 2006, 12-14,pp. 1-22.[5] Arash Shahin “SERVQUAL and Model of ServiceQuality Gaps. A Framework for Determining andPrioritizing Critical Factors in Delivering QualityServices,” 4th International Conference on QualityManagement, University of Isfahan, Iran, 2007,Vol.2.No.7, pp. 3297-3304.Volume 6 Issue 2, February 2017www.ijsr.netLicensed Under Creative Commons Attribution CC BYPaper ID: ART20179421542

specific satisfaction or cumulative satisfaction. Transaction-specific satisfaction a customer'sis evaluation of her or his experience and reactions to a specific company encounter. Cumulative satisfaction refers to customers overall evaluation of patronage experience from inception to date. In the airline industry context the problem is whether

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