ABSTRACT
Air transportation plays a vital role in the socio-economic life of many people especially in the developing countries. The provision of air transport services in Ghana is done by AWA and STARBOW airline transport companies. This study set out to investigate customer satisfaction in the local airline industry using a total quality management approach. Using the customer satisfaction index, the study investigates customer satisfaction of the two airlines using the five dimensions of service quality. A key finding of this study is that the dimensions of service quality contribute significantly to the customer satisfaction in the local airline industry. It is revealed that both AWA and STARBOW airline transport companies seem to be on course in practicing the service quality dimensions in diverse ways. This study also discovered that the dimension of reliability is the highest contributor to customer satisfaction in the airline industry.
CHAPTER ONE
- INTRODUCTION
This chapter begins with a background of the study. It continues with the problem statement, research objectives and research questions. The section then continues with the significance of the study, literature review, methodology, scope, limitation of the study and the chapter outline.
Background of the Study
History records that the transport system has exerted a profound effect on the development of travel from ancient times (Kaul, 1985). For example, in Roman Times, Pompeii and Herculaneum were popular retreats for the citizens of Rome escaping the capital’s summer heat (Theobald, 1994). The movement of these early travelers from origin to destination was made possible by well-engineered road systems, organised road transport based on horse and cart teams, organised sea travel in the Mediterranean and a hospitality sector. In more recent times the development of the steam train followed later by the car and the plane has added to humanities’ ability to undertake travel to even the remotest corner of the globe.
The airline industry plays an important role in the global economy. It is a vital component of the travel and tourism industry and remains essential to the conduct of international business (Tiernan et al., 2008). The airline industry is known to be the major catalyst for the socio-economic development of emerging economies such as ours (Ghana), (GACL, 2012). Air transport allows for personal mobility and for the speedy movement of goods. It is a large global industry that carries millions of passengers a year. The air transport industry in Africa also shows a strong growth of 11.4% which has been sustained since 2007 (GACL, 2012).
Air transport has many benefits for any country and Ghana is no exception. The industry provides employment for people, generate revenue for governments and reduce the pressure on other means of transport such as road, rail and water. According to Hoyle (1988), airline transport is important in the local transport industry where road, rail and water transports are poor in most parts of Ghana.
The bad nature of road network coupled with the bad nature of roads in Ghana make travelling by road challenging. Because of the bad road network, and the bad roads there are always heavy traffic in major parts of the cities. This has made travelling by road through intercity very stressful and hectic, because a journey that could have taken you some few hours can take you the whole day. Ghana also has a poor railway system. Most of the railways are in bad shape and there are also few trains. This does not make the rail system a major option for travelling. Travelling by water in Ghana is also poor. These challenges in the various forms of transport in Ghana makes intercity air transport an important mode of travelling.
Customer satisfaction represents a measure of company performance according to customer needs (Hill et al. 2003). Customer satisfaction is becoming one of the most essential objectives which any firm seeking for long- term relationship with customer considers as the top priority. Customer satisfaction is described as the result of a comparison of the customers‟ expectations and his or her subsequent perceived performance of service quality (Herington & Weaven, 2009). A service is an activity or series of activities of more or less intangible nature. It normally, but necessarily, takes place in interactions between customers and service employees and/or physical resources or goods and /or systems of the service provider (Shahin, 2006). Total service quality is the ability of the organization to meet or exceed customer expectations (Parasuraman et al, 1985 and Ziethaml et al, 1996). The difference between expected service and perceived service is called a gap. Total service quality gap is defined as the difference between customer expectations and perceptions of service (Shahin and Samea, 2010). Total service quality gap can be negative, positive or zero. Customers measure service quality by comparing the actual performance of the firm with their own
expectations, shaped by experience, word of mouth communications, and/or memories (Tsoukatos and Mastrojianni, 2010). One of the main elements determining customer satisfaction is the customer’s perception of service quality. In retail banking context where the contacts with customers are one of the most core business processes, customer satisfaction is becoming the key for success (Belas & Gabcova, 2014; Belas, Cipovova & Demjan, 2014; Chavan & Ahmad, 2013). In the airline industry, Saha and Theingi (2009) found a significant relationship between airline service quality and passenger satisfaction, meaning that the higher the perceived service quality, the higher was the passenger satisfaction (Lau et al., 2011). Han et al. (2008) confirmed the antecedent role of total service quality with respect to customer satisfaction in the airline industry and found out that service quality is an antecedent of customer satisfaction.
Statement of the Problem
Notwithstanding the benefits and importance of the air transport industry, the growth rate in the domestic airlines in Ghana is stagnated recently (GACL 2014).
Apparently, because of the great contribution of airline transport to the economy of Ghana (GACL 2014), governments, both past and present, have much interest in the air transport development. The government of Ghana in June 2017, reduced the price of aviation fuel by 20% and that was to give a boost in their operations and to reduce cost in the aviation industries . In 2017, the government
has also set up a new ministry purposely for the aviation sector. Despite all these efforts, the domestic airline transport industry has been struggling since its inception. In Ghana, Airline
companies like West Africa airlines, West Africa Air Cargo, Transafrican Air Cargo, Southern Aviation, Pioneer
Air Charter Services, Phonenix Aviation, Muk Air Ghana, Johnson Air, Jason Air, Imperial Cargo Airlines which started domestic transport in the 1990s did not survive in the airline industry. Then companies like Alfra Airlines, Alra Citylink, Aerogem Aviation, Air Link 2000 (Ghana Airlink), Antrac Air Ghana, Ashanti Airline Aviation, CiTylink Airlines also started operating in the early 2000s but also could not survive. These airlines companies operated for some
years and ceased operation.
Currently the airline transport companies that operate in Ghana include; Starbow Airline, Africa World Airlines, Air Ghana, and Airlift International Ghana also started operating from 2008 airlifting and landing passengers and freight from various airports in both Ghana and Africa domestic flights and the passenger movement from 2007 to 2015.
