THE EFFECT OF SERVICE QUALITY ON PASSENGERS’ SATISFACTION: THE CASE OF ETHIOPIAN AIRLINES

Abstract

Today competition is not only rife, but growing more intense constantly. Companies must give keen attention to their competitors and must understand their customers. Airlines are suffering from each competition. Service quality is typically defined in terms of consumer satisfaction. The purpose of this study is to measure the service quality and its effect on customer satisfaction at Ethiopian airlines. To this purpose the researcher has studied the service quality of the airline using SERVQUAL model instrument developed by Parasuraman. SERVQUAL model has been applied in designing the questionnaire by using five dimensions of service quality: tangibility, reliability, responsiveness, assurance, and empathy. The findings of this study are based on the analysis of a sample of 320 respondents of Ethiopian airlines international passengers. The research design for this study was Descriptive and use mixed type of research approach. Convenience sampling technique was used in the study to take a sample from infinite population. Data collected from respondents are analyzed by using qualitative analysis, descriptive, correlation, and regression analysis. The study investigates the relationship between service quality and customer satisfaction and also investigates dimensions that have significant effect on customer satisfaction. The results revealed that passengers of Ethiopian airlines are not satisfied by the services of Ethiopian airlines because; passengers have highest level of expectation than perception in all five dimensions. The findings also showed that the dimensions of service quality such as, reliability, assurance and tangibility, are positively correlated to customer satisfaction. Responsiveness and empathy have insignificant relationship with customer satisfaction. Managers should train employees, improve visually attractive facilities and coordinate all stake holders. Finally, managers at EAL should measure passenger’s satisfaction and service quality seasonally to keep the services corresponded with customer’s expectation.