THE EFFECT OF SERVICE QUALITY ON CUSTOMER SATISFACTION: THE CASE OF ETHIOPIAN AVIATION GROUP

A B S T R A C T The purpose of this research is to evaluate the quality of service offered by Ethiopian Aviation Group (EAG) and its effects on overall customer satisfaction. This study used a convenience sample strategy to obtain data from 280 respondents using a self-administered questionnaire based on the AIRQUAL scale’s five components. The data was obtained from passengers of Ethiopian Airlines while they were waiting for their next flight. The research employed, Cronbach’s Alpha (α) which tests the degree to which the replies are consistent in all qualities of the dimensions to gauge its consistency of reliability. Correlation and regression analysis were also used to investigate the significance of various aspects of the service quality attributes. The result of Importance-Performance Analysis (IPA) depicts in four quadrants. ‘Image’ under Q1 having highest importance and satisfaction scoring 0.396; which is fine; ‘Personnel Services’ under Q2 having low importance and high satisfaction scoring 0.212; which need improvement; ‘Airline and Terminal Tangibles’ under Q3 having high importance but low satisfaction scoring 0.086 and 0.135 respectively; which much performance for a non-important issue; ‘Empathy’ under Q4 having low importance and satisfaction scoring 0.148; which doesn’t matter and no performance. The result of the regression analysis reveals that four of the five elements of AIRQUAL scale, namely Terminal Tangibles (β =, p < .05), Personnel Services (β =, p < .05), Empathy (β =, p < .05), and Image (β =, p < .05) have a positive, direct, and significant influence on Ethiopian Aviation Group customer satisfaction. But Airline Tangibles (β =, p > .05) do not have a significant effect on customer satisfaction. This study investigated to look into the effects of service quality parameters on customer satisfaction in the Ethiopian Aviation Group (EAG). According to the findings, Ethiopian Aviation Group (EAG) should focus on terminal tangibles, personnel services, empathy, and image which have a significant effect on customer satisfaction. A positive dimensions of service quality metrics, but a specific emphasis should be given on personnel services and image of the carrier, in order to improve customer satisfaction. It is believed that the outcomes of this study would assist other airlines in better understanding for the function of various dimensions of service quality in increasing customer satisfaction, relationship and loyalty.