The functional relationship between quality, customer satisfaction and loyalty in the airline industry in Iran

Abstract

The main purpose of this study is to develop a new model to investigate the antecedents of airline relationship quality from the customer’s perspective. This survey examines the relative impact of trust, customer orientation, expertise, communication and service recovery on relationship quality, and explores the effects of relationship quality on customers satisfaction and loyalty. The new model of relationship quality based on literature was developed and tested empirically among 1853 airline passengers (Shiraz, Iran). The questionnaires used in this study were taken from the relevant literature, contained 42 questions addressing all the variables. A face-to-face interview of passengers waiting for their flights was administered at Shiraz airport in April 2011 for a period of two weeks. Factor and multivariate analyses techniques were used to process the data. The findings of the study supported all of the eight hypothesized relationships. The research found a significant positive relationship between trust, customer orientation, expertise, communication, service recovery and relationship quality. The findings suggest that relationship quality most influenced by trust (33%), customer orientation (22%), expertise (20%), communication (14%) and service recovery (11%). Besides, this study shows that the most impacts of relationship quality are on customer satisfaction (64%) and customer loyalty (36%). Also customer loyalty most influenced by customer satisfaction (52%). The relationship marketing underpinnings can predict relationship quality well. Airlines can build and maintain quality customer relationship through trust, customer orientation, expertise, communication, and service recovery. The outcome of the study can help airlines in developing effective strategies for enhancing the quality of firm-customer relationships and training programmes that would enable airline employees and managers to function effectively as relationship builders and managers in service settings. It has been suggested that, in order to keep customers satisfied, firms should constantly improve overall relationship quality. By comparing the levels of contributions of the relationship marketing underpinnings, airlines are now able to decide on the level of attention and effort to be assigned to each, based on their importance. Key words: Trust, customer orientation, expertise, communications, service recovery, relationship quality, customer satisfaction, customer loyalty, Shiraz Airline.