Service quality and customer satisfaction in the airline industry in Tanzania: a case of Air Tanzania Company Limited

Abstract

This study aimed to assess the influence of service quality on customer satisfaction within Air Tanzania Company Limited (ATCL) in Dar es Salaam, with a specific focus on the influence of tangible elements, personal services, and airline image. The study adopted a theoretical framework based on the Expectancy Disconfirmation Theory and the AIRQUAL Model for understanding the relationship between service quality and customer satisfaction. To achieve the study’s objectives, a cross-sectional research design was employed, allowing for the collection of data from a diverse sample of ATCL customers. The sample was selected using a combination of simple random sampling and purposive sampling techniques. A total of 302 ATCL customers and 8 supervisors from ATCL participated in the study, providing valuable insights into their perceptions of service quality and its effect on their overall satisfaction. Data collection was primarily conducted through structured questionnaires and face-to-face interviews. The data was analyzed using Binary Logistic Regression in IBM SPSS Statistics 23, allowing for the identification of significant relationships between service quality dimensions and customer satisfaction. The analysis of perceived service quality dimensions showed that customers' perceptions of ATCL’s service quality fell short of their expectations, with negative scores across all dimensions. This suggests a general dissatisfaction among customers with the service quality provided by ATCL. Specifically, the rankings indicated that airline image was the top contributor to dissatisfaction. The overall index score for service quality further supported these findings, registering at -0.3996. The binary logistic regression results indicated significant positive relationships between all three dimensions (tangible elements, personal services, and airline image) and customer satisfaction. To maintain service quality standards, collaboration between policymakers and ATCL management is crucial to establishing guidelines as well as conducting regular audits, allocating enough resources for tangible improvements and investing in employee training for better customer interactions.