A novel approach to measure perceived customer centricity in the passenger airline industry: Index development and validation

Abstract

This study addresses a significant gap in current research by developing and validating a comprehensive index for measuring perceived customer centricity in the passenger airline industry. The index was derived using a rigorous scale development methodology based on three surveys with a total of 963 participants. The process involved construct definition, item generation, and item validation through exploratory and confirmatory factor analyses. The final measurement index comprises 19 items across four dimensions (Customer Care & Experience, Communication & Product, Sustainability, and Value) and demonstrates strong discriminant and convergent validity, providing a reliable tool for assessing customer perceptions. Therefore, this research introduces the first validated measure of perceived customer centricity specifically designed for the airline industry and offers practical insights for airline managers, enabling them to identify specific areas where customer perceptions fall short and to make targeted improvements. Additionally, the index serves as an alternative to the industry-wide adopted Net Promoter Score (NPS). It extends current literature by providing an industry-specific scale and offers a practical instrument for enhancing customer-centric strategies in real-world applications, thereby fostering long-term, mutually beneficial relationships. Additionally, it provides empirical evidence of the multidimensional nature of customer centricity and offers a validated tool that can be applied in future research to explore customer perceptions and their impact on airline performance, thus satisfying both practical and academic needs.