Exploring the Relationship among Service Quality, Customer Satisfaction and Customer Loyalty after Post Pandemic Era

Abstract

Introduction: Taiwanese airline brands’ profits have increased since 2010. With the increase in demand of air traffic, air transportation has affected national or international economies. Considering the Taiwan aviation industry for example, the factor of customer satisfaction comes from two types of airlines which are Low-Cost Carriers (LCCs) and Full-Service Carriers (FSCs). In other words, these two types of airlines are moderated to service quality and customer satisfaction. There are two specific service quality dimensions: airline tangibles and quality of personnel. This study aims at the research on two types of airlines in Taiwan, that moderate two variables, which are service quality and customer satisfaction.

Literature review/research gap: According to the literature review, service quality, customer satisfaction and customer loyalty have positive impacts. Furthermore, this research takes the airline types as a moderating variable. The main research gap of this study is to understand the interference effect of the airline type for customer satisfaction and customer loyalty. And moreover, the main objectives of this study are to understand the development trends of Taiwan airlines in the aviation industry and to provide China Airlines with some suggestion about the marketing and management strategies through the results of this analysis.

Research method: This study measures the quality of service, customer satisfaction and customer loyalty in three variables. In addition, this study took airline types as a moderating variable between service quality and customer satisfaction. In order to measure the airline type with other variables, the framework is based on the literature. According to the framework, this study establishes the following hypotheses: H1: There is a significant effect between service quality and customer satisfaction; H2: There is a significant effect between customer satisfaction and customer loyalty; H3: There is a significant effect between service quality and customer loyalty; H4: Airline types moderate an effect between service quality and customer satisfaction.

Findings: The purpose of this study is to investigate the relationship of service quality, customer satisfaction and customer loyalty. This study also adapts airline type as moderating to investigate the impact on service quality and customer satisfaction. From the data analysis, this study has made some managerial implications. The short-term strategy is that China Airlines should be to cooperate with other tourism industry and provide more promotions; the medium-term strategy is that China Airlines should enhance reputation of Taiwan’s Tiger Airlines by using unique Taiwanese culture; the long-term strategy is that China Airline should provide opportunities for customers to participate in charity activities. And finally the future expectation is that China Airlines should offer more business strategies that contribute to customers.

Theoretical and practitioner implications: (1) Short-term strategies: China Airlines should be to cooperate with other tourism industry and provide more promotions. (2) Medium-term strategies: China Airlines should enhance Tiger Airlines Taiwan’s reputation by unique Taiwan culture. (3) Long-term strategies: China Airline should provide opportunities that customer can participate in charity activities.