||Analysis of Service Quality and Cost Efficiency, and Its Influence on Customer Satisfaction in the Aviation Industry
||Master's Program, Department Of International Business
||Over recent years, airlines have been changing their business models and management approaches in order to adapt to the increasing competition and changing industry environment. In order to maximize profits and maintain strong reputations, airlines are eager to achieve service excellence and cost efficiency simultaneously. The studies referenced in this report generally conclude that service excellence and cost efficiency are crucial but contradictory to one another.
This research uses the literature review approach to describe the key dimensions including service quality, cost efficiency and customer satisfaction and elaborate the relationship among those dimensions. Through the analysis of the relationship between the balance of cost efficiency and service that impact on achieving customer satisfaction, the research seeks to minimize the impacts on both service quality and customer satisfaction caused by cost efficiency/cost reduction and find a possible way to achieve service excellence and cost efficiency simultaneously.
The research recommends that with appropriate service quality management, airlines can potentially reduce operational costs while also maintaining strong levels of service quality and customer satisfaction. In addition, it is provided a case study of Singapore Airlines (SIA) presented an example to prove the feasibility of dual strategy on service excellence and cost efficiency through a proper service quality management. Due to the success of dual strategy, SIA won many rewards about high customer satisfaction and service quality while achieving low operation cost among the same level airlines.
||Chapter 1 Introduction 1
1.1 Research motivation and objection 1
1.2 Research Scope and Framework 2
1.3 Research Methodology 4
1.4 Research restriction 4
Chapter2 Analysis of the Relationship between Service Quality and Cost Efficiency 6
2.1 Introduction of service quality 6
2.2 Dimensionality of service quality 8
2.3 The roles of service quality 10
2.4 Introduction of cost efficiency 13
2.5 The impact of cost efficiency on service quality 15
Chapter 3 The Impact Analysis of Service Quality and Cost Efficiency on Customer Satisfaction 21
3.1 Introduction of customer satisfaction 21
3.2 The relationship between service quality and customer satisfaction 22
3.3 The relationship between cost efficiency and customer satisfaction 24
3.4 Service quality management 26
Chapter4 Case study- Singapore Airlines 32
4.1 Airlines Industry Analysis 32
4.2 Singapore Airlines Introduction 33
4.3 Analysis of Singapore Airlines’ Business Model – High Quality Service Cost-effectively 35
4.4 Cost Reduction 40
4.5 Service Quality Management 42
4.6 Conclusion and Recommendation 46
Chapter 5 Conclusion 48
Appendix 1 List of frequent used operational KPI of call centre 60
Appendix 2 List of Reward on Singapore Airlines Annual Report 2011/2012 62
List of Figures
Figure 1-1 Research Framework of the research………………………………………….……………3
Figure 2-1 The framework of service quality……………………………………………………………..7
Figure 3-1 The framework of customer satisfaction…………………………………………………24
Figure 3-2 The summary of the section 3.4……………………………..………………………………26
Figure 4-1 The summary of the section 4.5………………………………………………………..……42
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