THE IMPACTS OF CUSTOMER SERVICE QUALITY ON PASENGER SATISFACTION PDF

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THE IMPACTS OF CUSTOMER SERVICE QUALITY ON PASENGER SATISFACTION A CASE STUDY OF CUSTOMER SERVICE UNITS IN THE TERMINALS OF KOTOKA INTERNATIONAL AIRPORT DISSERTATION SUBMITTED TO THE DEPARTMENT OF GEOGRAPHY AND RURAL DEVELOPMENT, KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY IN PARTIAL FULFILLM...

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THE IMPACTS OF CUSTOMER SERVICE QUALITY ON PASENGER SATISFACTION A CASE STUDY OF CUSTOMER SERVICE UNITS IN THE TERMINALS OF KOTOKA INTERNATIONAL AIRPORT

DISSERTATION SUBMITTED TO THE DEPARTMENT OF GEOGRAPHY AND RURAL DEVELOPMENT, KWAME NKRUMAH UNIVERSITY OF SCIENCE AND

TECHNOLOGY IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF ARTS (HONS) DEGREE

BY

TECHIE-MENSON JEFFREY

MAY 2014 1

DECLARATION I hereby declare that this dissertation is the result of my own research and that I accept to be liable to any errors and omission in it. This dissertation has never been presented in part or in whole to any institution for the reward of a certificate or diploma or degree. However, all references consulted have been duly acknowledged.

…………………………………… TECHIE – MENSON JEFFREY

…………………………… DATE

4529010

SUPERVISOR’S DECLARATION I declare that I have supervised the student in undertaking the study submitted herein and I confirm that the student has the permission to present it for assessment.

………………………….

………………..…………..

MS ESI AKYERE-MENSAH

DATE

(SUPERVISOR)

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DEDICATION To My Dear Parents, Mr and Mrs Techie-Menson and to the entire Techie-Menson family

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ACKNOWLEDGEMENT I wish to acknowledge with heartfelt gratitude, the support and assistance provided by a number of personalities in bringing this work to a completion. First of all, all glory and honour be to the Most High God for His protection and guidance throughout the conduct of this study, without Him I would not have come this far. This work was aided under the strict and effective supervision of my supervisor Ms Esi AkyereMensah, to her I wish her the good Lord‟s blessings in all her endeavours in life. I would also like express my sincere gratitude to Gertrude Poku a teaching assistance in the department of geography and rural development for her invaluable assistance and encouragement. I would also like to extend much gratitude to Madam Naa Adjeley Doku a terminal operations supervisor at the Kotoka International Airport for her immense assistance towards this study. Again, my heartfelt appreciation goes to all staff and passengers of Kotoka International Airport who aided in this study to make it a success. Finally to all my fellow colleagues and course mates with whom I shared knowledge and also contributed in diverse ways to the completion of this work, I say Ayekoo.

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TABLE OF CONTENTS DECLARATION......................................................................................................................................... i DEDICATION ............................................................................................................................................ ii ACKNOWLEDGEMENT ....................................................................................................................... iii LIST OF TABLES .................................................................................................................... vii LIST OF FIGURES .................................................................................................................. viii ABSTRACT ................................................................................................. Error! Bookmark not defined. CHAPTER ONE......................................................................................................................................... 1 GENERAL INTRODUCTION ................................................................................................................ 1 1.0 Introduction .......................................................................................................................................... 1 1.1 Problem statement ............................................................................................................................... 3 1.2 Objectives ............................................................................................................................................. 4 1.3 Research questions .............................................................................................................................. 5 1.4 Significance of the study..................................................................................................................... 5 1.5 The scope of the study......................................................................................................................... 6 1.6 Delimitations and Limitations of the study ...................................................................................... 6 1.7 Chapter organization ........................................................................................................................... 7 CHAPTER TWO........................................................................................................................................ 8 LITERATURE REVIEW .......................................................................................................................... 8 2.0 Overview of the Airport Industry ...................................................................................................... 8 2.1 Service Quality at Airports ............................................................................................................... 10 iv

2.2 Perception of customer service at airports ...................................................................................... 11 2.3 Customer Satisfaction at Airports.................................................................................................... 12 2.4 Importance of service quality at airports ........................................................................................ 13 2.5 Theoretical Framework of Airport Service Quality ...................................................................... 14 2.6 The SERVQUAL Model .................................................................................................................. 15 2.7 Conceptual Framework for the Study ............................................................................................. 18 CHAPTER THREE.................................................................................................................................. 22 RESEARCH METHODOLOGY ........................................................................................................... 22 3.1 Profile of Study Area ......................................................................................................................... 22 3.2 Brief overview of Ghana Airports Company Limited .................................................................. 28 3.3 Sources of Information and Data ..................................................................................................... 30 3.4 Sampling Technique .......................................................................................................................... 30 3.5 Sample Size Determination .............................................................................................................. 32 3.6 Research Design................................................................................................................................. 35 3.7 Chapter Summary .............................................................................................................................. 37 CHAPTER FOUR .................................................................................................................................... 38 DATA ANALYSIS, DISCUSSION AND INTERPRETATION OF RESULTS ........................... 38 4.1 INTRODUCTION ............................................................................................................................. 38 4.2 KEY DEMOGRAPHIC CHARATERISTICS OF RESPONDENTS (PASSENGERS) ........ 39 4.3 FACTORS THAT INFLUENCE CUSTOMER SERVICE AT GHANA AIRPORTS (KIA) 47 v

4.4 EXPECTATIONS OF PASSENGERS IN TERMINAL ............................................................. 58 4.5 RELATIONSHIP BETWEEN SERVICE QUALITY DELIVERED AND PAASENGER EXPECTATIONS .................................................................................................................................... 69 4.6 CHALLENGES OF CUSTOMER SERVICE AT KIA ............................................................... 71 4.7 PASSENGER SATISFACTION AND STRATEGIES FOR SERVICE DELIVERY AT KIA .................................................................................................................................................................... 73

4.8 QUALITATIVE ANALYSIS .......................................................................................................... 75 4.9 SUMMARY OF KEY FINDINGS ................................................................................................. 76 CHAPTER FIVE ...................................................................................................................................... 82 CONCLUSION AND RECOMMENDATIONS ................................................................................. 82 5.1 INTRODUCTION ............................................................................................................................. 82 5.2 CONCLUSION .................................................................................................................................. 82 5.2 Recommendations.............................................................................................................................. 82 REFERENCES ......................................................................................................................................... 85 APPENDIX A ........................................................................................................................................... 92 APPENDIX B ........................................................................................................................................... 96 APPENDIX C ......................................................................................................................................... 100

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LIST OF TABLES Table

Page

Table 3.1 Sample Size Determination…………………………………………………………...32 Table 4.1 Gender Distribution Of Passengers…………………………………………..…..……36 Table 4.2 Age Distribution Of Respondents……………………………………………………..38 Table 4.3 Educational Level Of Respondents……………………………………………………39 Table 4.4 Average Time Spent By Customers At The Customer Service Desk……..…...…….41 Table 4.5 Staff Attitude Towards Passengers……………………………………………………43 Table 4.6 Response Level To Customers Needs And Wants(Passengers)………..……………45 Table 4.7 Availability of Customer Complaint Outlets…………………….……………….…..46 Table 4.8 Lodging Customer Complaints (Passengers).........................................................…..46 Table 4.9 Number of Complaints per Day…………………………………………………….…47 Table 4.10 Passenger Expectations…………………………………………………….……...…49 Table 4.11repeat Visits and Customer Loyalty………………………………………………….53 Table 4.12expectation of Terminal Facilities……………………………………………………54 Table 4.13 Facilities That Need Improvement…………………………………………………..54 Table 4.14 Staff Interaction with Customers ………………………………………………..….59 Table 4.15 Challenges Faced By Passengers….………………………………………………...60 Table 4.16 Passenger Satisfaction……………………………………………………………….61 Table 4.17 Customer Service Training………………………………………………………….61 Table 4.18 Strategies for Service Delivery……………………………………….……………..62

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LIST OF FIGURES Figure

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Figure 2.1: Preliminary conceptual model of passenger satisfaction.............................….. 18 Figure 3.1: A map of the study area in national context …….................. ......................... 24 Figure 3.1: A map of the study area, Kotoka International Airport (KIA)............................ 25 Figure 3.3: Gacl Organogram…………....…………………………………..................….. 29 Figure 4.1 Passengers Spending Time at the Customer Service Desk…………………….. 49 Figure 4.2 Front View of Complaint Card……………………………….………………… 62 Figure 4.3 Back View of Complaint Card ………………………………………………… 62 Figure 4.4 Out-Of-Order Escalator…………………………………………………...……. 68 Figure 4.5 Out-of-Order Charging Unit…………………………………………………..... 68 Figure 4.6 Out-of-Order Air-conditioner………………………………………………....... 68 Figure 4.7 Out-of-Order Air-conditioner……………………………………………......... 68 Figure 4.8 Terminal Space Layout…………………………………………………….……69

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ABSTRACT Service quality in airports terminals today has gained much importance since it is a major determinant of passenger satisfaction. All passengers expect service quality during their airport experience in order to gain the satisfaction they desire. This satisfaction desired by passengers of KIA warranted the study which focused on the impacts of service quality on passenger satisfaction in the terminals of KIA. Data on the research was collected from primary and secondary sources. The research found out that there were expedient efforts by management of KIA to improve service quality in order to enhance passenger satisfaction. Nonetheless there were a host of defects in customer service such inadequate facilities which made passengers feel uncomfortable in the terminal and therefore tempered with the airport experience they desired. Most of the machines or facilities in the terminal were in deplorable state which created discomfort in the terminal and also tempered with customer service. To enhance service quality in order to achieve full passenger satisfaction, facilities and equipment that are used in the delivering of customer service should be modern and properly working to ensure seamless airport experience of passengers. It was recommended that there should be the availability of complaint outlets easily accessible and suggestion boxes visible to passengers to lodge complaints as well as provide suggestions. It was again recommended that there should be an expansion of KIA which would include the extension of the terminal, thereby ensuring that the airport‟s ambiance, interior setting, and layout meet the expectations of their passengers, and also play an influential role in shaping satisfaction of passengers in the terminal.

Keywords: Service quality, Passenger satisfaction, Customer service, Terminal, KIA

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CHAPTER ONE GENERAL INTRODUCTION 1.0 Introduction The growth in global tourism today has been facilitated, in major part by a high increase in accessibility at many tourists‟ destinations (Duval, 2007). The recent developments in transportation infrastructure and technology allowed greater numbers of tourists to travel to far away destinations around the globe. Also, at the center of this development is the air transportation system. Air transport has become the fundamental cog in the global tourism interaction sphere (Duval, 2007). Kasseter, (2013) noted that in 2012, the United Nation World Tourism Organization (UNWTO) recorded an all-time high in international tourist arrivals with over 1 billion arrivals in just one year, in which majority of this number patronized air transport. Thus, understanding the state of the air industry has become very important today, as it could single-handedly shape tourist flows where air access is the dominant network provision for accessibility and connectivity (Widarsyah, 2013). The service business per contra is always closely associated with service quality and satisfaction, (Mansor, N. et al, 2012). Murasiranwa, et al, (cited by Parasuraman et al., 1985), 2012, posits that concept of service quality has emerged as a major strategic theme in services marketing research and since its inception in the late 1970s the philosophy of service quality has been the subject of many conceptual and empirical studies. Service quality is a significant concept that companies must understand if they want to remain competitive and grow. In today‟s competitive environment delivering high quality service is the key for a sustainable competitive advantage (Angelova & Zekiri, 2011:1).

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As the Airports Council International information brief (2008) asserts, “Excellent customer service is one of the greatest assets for an airport in today‟s competitive environment. There are many factors that can help an airport to build its customer base, and customer service can be a determining factor in the success of an entire operation.” In today‟s competitive environment delivering high quality service is the key for a sustainable competitive advantage. Customer satisfaction has high positive effect on every organization‟s profitability. Satisfied customers form the foundation of any successful business because customer satisfaction leads to repeat purchases, brand loyalty, and positive word of mouth. There are numerous studies that have looked at the impact of customer satisfaction on repeat purchases, loyalty and retention. Many researchers point out the fact that satisfied customers share their experiences with other people to the order of perhaps five or six people. On the contrary, dissatisfied customers are more likely to tell another ten people of their experience with product or service. Customer satisfaction is the outcome felt by those that have experienced a company‟s performance that have fulfilled their expectations. Many researchers and academicians highlight the importance of customer satisfaction. Many researchers see that customer satisfaction has a positive effect on organization‟s profitability. Much empirical evidence also shows the positive connection between customer satisfaction, loyalty and retention. Nowadays all companies are realizing the significance of delivering and managing service quality, which leads to customer satisfaction. Service quality that is delivered can meet or exceed customers‟ expectations are mainly influenced by customer‟s prior expectations. According to Hansemark and Albinson (2004) “satisfaction is an overall customer attitude towards a service provider, or an emotional reaction to the difference between what customers anticipate and what they receive, regarding the fulfillment of some needs, goals or desire”. Customer loyalty on the other hand refers to a

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deeply held commitment to re-buy a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior (Oliver, 2000). The perception of success of such interactions will be dependent on employees "who can adjust themselves to the personality of the guest," according to Solomon (2007). From the point of view of an overall sales process engineering effort, customer service plays an important role in an organization's ability to generate income and revenue. From that perspective, customer service should be included as part of an overall approach to systematic improvement. A customer service experience can change the entire perception a customer has of the organization. 1.1 Problem statement According to Paternoster (2008) all customers have needs, wants and expectations of products and services which they uphold and desire satisfaction. Passenger satisfaction service arises when a company can provide passengers with benefits that exceed passengers‟ expectation and this is considered value-added. Ghana for instance, has only one international airport in the name of Kotoka International Airport (KIA), however, it is also in competition with other international airports. It is against this backdrop that passenger satisfaction at KIA is paramount in order to gain a competitive edge over its competitors. The KIA for several years has made tremendous efforts into achieving passenger satisfaction to it‟s cherish customers both domestically and internationally. Typical amongst the major inroads by the management of KIA in ensuring passenger satisfaction over the yea...