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IMPACT OF SERVICE QUALITY

ON CUSTOMER SATISFACTION OF
BANDARANAIKE INTERNATIONAL
AIRPORT (BIA)

D.G.E.K.P.K Dambagolla
COM 4623: Independent Study

MC-79549
CPM-14439

A research report submitted to the Department of Commerce in partial


fulfilment of the requirements for the Bachelor of Commerce (Special)
Degree at the University of Sri Jayewardenepura, Sri Lanka.

Department of Commerce
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura

September 2019
I hereby recommend that the research report titled “Impact of Service Quality on
Customer Satisfaction of Bandaranaike International Airport (BIA)” prepared by
Dambagolle Gedara Eranga Kasun Pushpakumara Dambagolla under my supervision,
be accepted in partial fulfillment of the requirements for the Bachelor of Commerce
(Special) degree.

…………………………………………………..
Senior Lecture Dr. (Mrs.) Ayoma Sumanasiri

……………….
(Date)

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ACKNOWLEDGEMENT

This research study owes its existence to the help, support and inspiration of several
people. Firstly, I would like to express my sincere gratitude and appreciation to my
academic supervisor Senior Lecturer Dr. (Mrs) Ayoma Sumanasiri and subject
coordinator Senior Lecturer Dr. (Ms.) K.M.V. Sachithra Department of Commerce,
Faculty of Management Studies and Commerce, University of Sri Jayewardenepura
who provided me with an excellent support, motivation, guidance, enthusiasm and
immense knowledge in completing my research report on titled “Impact of Service
Quality On Customer Satisfaction of Bandaranaike International Airport (BIA).

I would also like to thank all the responders who participated with my research by
completing my questionnaire and the people who introduced their relatives and friends
to join with my questionnaire. Finally, I would like to offer my heartiest gratitude to
my parents, brother and all of my friends who went through hard times together and
cheered me on and all the people whose names are not appeared but their untiring
effort was very much crucial to make this study success throughout this work.

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Table of Contents
INTRODUCTION....................................................................................................1
1.1 Chapter Introduction ........................................................................................... 1
1.2 Background of the study ..................................................................................... 1
1.3 Problem Statement .............................................................................................. 2
1.4 Research Questions ............................................................................................. 3
1.5 Research Objectives ............................................................................................ 4
1.6 Significance of the study ..................................................................................... 4
1.7 Limitations of the study ...................................................................................... 5
1.8 Organization of the chapters ............................................................................... 5
1.9 Chapter summary ................................................................................................ 5
LITERATURE REVIEW .......................................................................................6
2.1 Introduction ......................................................................................................... 6
2.2 Ground Service Quality ...................................................................................... 6
2.3 Factors of Ground Service Quality ..................................................................... 6
2.4 Passenger Satisfaction ......................................................................................... 7
2.5 SERVQUAL Model ............................................................................................ 8
2.6 Identify the SERVQUAL dimensions ................................................................. 8
2.7 Identify the relationship between SERVQUAL dimensions and customer
satisfaction .............................................................................................................. 12
2.8 Customer expectations and facility upgrading in airports ................................ 13
2.9 Airports in Sri Lanka ......................................................................................... 14
2.10 Bandaranaike International Airport History and Development ...................... 14
2.11 Available Facilities of Bandaranaike International Airport ............................ 15
2.12 International Aircraft Movements of Bandaranaike International Airport ..... 16
2.13 Chapter Summary ............................................................................................ 19
2.14 Summary Table of Literature Review ............................................................. 19
METHODOLOGY ................................................................................................22
3.1 Chapter Introduction ......................................................................................... 22
3.2 Novelty and the contribution of the study ......................................................... 22
3.3 Conceptual framework of the study .................................................................. 23

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3.4 Hypothesis Development .................................................................................. 24
3.5 Research Design ................................................................................................ 24
3.6 Population and Sample of the Study ................................................................. 25
3.7 Operationalization ............................................................................................. 26
3.9 Data Analysis .................................................................................................... 29
3.10 Chapter summary ............................................................................................ 29
DATA ANALYSIS .................................................................................................30
4.1 Introduction ....................................................................................................... 30
4.2 Descriptive Statistics ......................................................................................... 30
4.3 Factor Analysis ................................................................................................. 34
4.4 Hypotheses Testing ........................................................................................... 42
4.5 Regression Analysis .......................................................................................... 43
4.6 Summery of the findings ................................................................................... 45
4.7 Chapter Summary ............................................................................................. 49
DISCUSSION AND CONCLUSION ...................................................................50
5.1 Introduction ....................................................................................................... 50
5.2.Discussion for Findings .................................................................................... 50
5.3 Limitations of the Study .................................................................................... 57
5.4 Contribution of the study .................................................................................. 57
5.5 Conclusion ........................................................................................................ 58
5.6 Recommendations ............................................................................................. 59
5.7 Implications ....................................................................................................... 61
5.8 Suggestions for Future Research ....................................................................... 62
5.9 Chapter Summary ............................................................................................. 62
REFERENCES.......................................................................................................63
ANNEXURE / APPENDIX ...................................................................................69

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List of Tables

Table 2.1:Summary Table of Literature Review......................................................... 19


Table 3.1.Operationalization Table ............................................................................. 26
Table 4.1 Gender of responders .................................................................................. 30
Table 4.2: Age group of the responders ...................................................................... 31
Table 4.3: Passenger type of the responders ............................................................... 32
Table 4.4: Purpose of travelling via BIA .................................................................... 33
Table 4.5: KMO and Bartlett's Test for Reliability ..................................................... 35
Table 4.6: Component Matrix for Reliability ............................................................. 35
Table 4.7: KMO and Bartlett's Test for Responsiveness ............................................ 36
Table 4.8 Component Matrix for Responsiveness ...................................................... 36
Table 4.9: KMO and Bartlett's Test for Assurance ..................................................... 37
Table 4.10: Component Matrix for Assurance ............................................................ 37
Table 4.11: KMO and Bartlett's Test for Empathy ..................................................... 38
Table 4.12: Component Matrix for Empathy ............................................................. 38
Table 4.13: KMO and Bartlett's Test for Tangible ..................................................... 39
Table 4.14: Component Matrix for Tangible .............................................................. 39
Table 4.15: KMO and Bartlett’s Test Customer Satisfaction ..................................... 40
Table 4.16 Component Matrix for Customer Satisfaction .......................................... 40
Table 4.17: Reliability Test Summary ........................................................................ 41
Table 4.18: Result of correlations Analysis ................................................................ 42
Table 4.19: Results of Regression Analysis ................................................................ 43
Table 4.20: Regression Analysis (ANOVA Table)..................................................... 44
Table 4.21: Regression Analysis (Coefficient Table) ................................................. 44
Table 4.22: Results of Hypothesis Testing ................................................................. 45

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List of Figures

Figure 2.1: Aircraft Movements of BIA ..................................................................... 16


Figure 2.2: Freight Traffic Pattern of BIA .................................................................. 17
Figure 2.3: Transit Passenger Movement ................................................................... 18
Figure 2.4: Passenger Movement ................................................................................ 18
Figure 3.1: Conceptual Framework ............................................................................ 18
Figure 4.1: Descriptive Analysis for Gender .............................................................. 31
Figure 4.2 Descriptive analysis for Age Group .......................................................... 32
Figure 4.3: Descriptive Analysis for the Passenger Type ........................................... 33
Figure 4.4: Descriptive analysis for Purpose of Travelling via BIA........................... 34

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ABSTRACT

Being the major international airport in Sri Lanka, Bandaranaike International Airport
(BIA) is considered as very important part of the Sri Lankan service industry., BIA
has its main focus on customer satisfaction, which can be described as the overall
evaluation of customer experience about the service quality of services as per their
expectations. with this expectation this study aims to explore the Impact of Service
Quality On Customer Satisfaction of Bandaranaike International Airport. Hence the
main objective of this research was to identify the factors influencing service quality
on customer satisfaction about the services offered by BIA.

Although there is ample research available exploring service quality and passenger
satisfaction on Airports, in Sri Lanka there is limited research available exploring in
the Sri Lankan context. The findings of this study could be used by passengers,
researchers, service providers, civil aviation authority, mangement of the BIA and
other decision makers for their decision-making purposes. A Quantitative approach
was used and questionnaire were distributed through electronic method using
facebook, messenger, whatsapp, viber and e mail who had used BIA and less amount
of data was collected through personally adimistrated questionnaire on paper version
in by hand method. The selected sample of this study was 150 passengers of BIA and
five point lickert scale questionnaire developed for this study based on the
SERVQUAL model to analyse the influence of five dimensions (reliability
responsiveness, assurance empathy and tangible) in service quality of BIA
environments on customer satisfaction.

The literature highlights SERVQUAL dimensions having a positive influence on


customer satisfaction. Collected data was analysed using SPSS Version 23. According
to the correlation analysis, reliability, responsiveness, assurance, empathy and tangible
have positive relationship and also according to the regression analysis, tangible,
assurance and empathy, were significant in contributing customer satisfaction. with
95% confidence level, while reliability and responsiveness was the not significant
about the customer satisfaction on services offered by BIA.

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This study creates a novel contribution to the to the literature on the Air Ports sector.
Findings would be useful to maintain a high service quality which can make customer
satisfied to achieve its goals. And that findings also will be useful in the field of
marketing and customer relationship management related to customer satisfaction.

Keywords: Customer Satisfaction, BIA - Sri Lanka, Service Quality, SERVQUAL


Model Dimensions (Reliability, Responsiveness, Assurance, Empathy and Tangible)

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CHAPTER 01

INTRODUCTION

1.1 Chapter Introduction

This chapter deliberates with the introduction part of the research. Therefore, base for
the research is discussed. The research background, problem statement, research
questions, research objectives and expected out comes are discussed in this chapter.

1.2 Background of the study

Airports are vital national resources. They serve a key role in transportation of people
and goods and in regional, national, and international commerce. They are where the
nation’s aviation system connects with other modes of transportation and where
responsibility for managing and regulating air traffic operations intersects with the role
of state and local governments that own and operate most airports (Transportation
Research Board of the National Academies, 2019).

In world airport arena, the best rated airports are Hamad International Airport Doha-
Qatar, Tokyo International airport, Athens International Airport, Afonso Pena
International Airport Brazil, Singapore Changi airport, Incheon International airport,
Munich airport and Hong Kong International airport (AirHelp Score, 2019).

BIA is the main international gateway of Sri Lanka renowned for its tourism with wide
range of attractions on offer and specially the warm hospitality blended with the
culture. Tourism service quality begins at the airport as it is the first place which
tourists interact with local people when they enter to a country. So, airport acts as the
first impression builder of any country, and for Sri Lanka it is BIA.

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BIA was established under Airport and Aviation Services (Sri Lanka) Ltd (AASL)
which is under the Ministry of Civil Aviation. Its vision is to become the most efficient
and friendliest aviation hub in the Asian region by making a passenger tourist hub of
Asia region by increasing transit passenger ratio to 1:4 by 2016. (Airport & Aviation
Services(Sri Lanka)Limited, 2015). As well as the BIA terminal expansion project of
US$ 560Mn was started in 2014 September.

Apart from that BIA has initiated resorts and associated property development projects
in collaboration with the China Harbour Engineering Company Limited to construct a
resort of 250 rooms. This will include a conference facility, meeting rooms and
amusement area. In addition, a shopping arcade is planned with segregated shopping
facilities in the new acquired land opposite arrival terminal. A new air traffic
management system is also introduced to BIA.

The national carrier of Sri Lanka, Sri Lankan Airlines also has taken several measures
to enhance the satisfaction of the passengers served by BIA. Sri Lankan Airlines have
joined “one world” alliance in July 2014, this enhance the product accessibility of the
passengers and offer passengers the opportunity to fly over 1800 one world
destinations worldwide on a single ticket (Airport & Aviation Services(Sri
Lanka)Limited, 2014).

1.3 Problem Statement

Though above-mentioned measures are taken by the regulatory bodies to ensure


customer satisfaction, a study done by Air Transport Research Society (ATRS) on
productivity has rated BIA as a low efficient airport in the Asian Region. BIA was
ranked 25th out of 37 Asian airports surveyed. The airport productivity index is
measured under outputs aircraft movement, passenger, cargo tonnage, non-aeronautical
revenue output. Labour, other non-capital inputs and runways, terminal size as well as
number of gates are considered as inputs. This study did not treat service quality
differentials across airports because of research resource constraints. We know
passenger satisfaction has become the most critical factor that the success and
wellbeing of airport operations. Airport passengers come from different countries, it is
difficult for airport management to recognize what kind of service qualities that
passengers expect. Therefore, BIA has to identify clearly what passengers want in each
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service quality sector and how they perceived the actual service qualities. To the best
of the author’s knowledge there are several studies done on the international context
but in Sri Lankan context researches done on airport service quality are rare but on
other sectors are some researches. That is also a problem. Hence this study aims,

“To examine the service quality factors influencing the customer satisfaction for
BIA facilities and the impact of each service quality factor on customer
satisfaction about the services offered by BIA”

1.4 Research Questions

Primary research question


1. What are the service quality factors influencing customer satisfaction about
the offered by BIA?

Secondary Research Questions


1. What is the relationship between reliability and customer satisfaction
about the offered by BIA?
2. What is the relationship between responsiveness and customer satisfaction
about the offered by BIA?
3. What is the relationship between assurance and customer satisfaction
about the offered by BIA?
4. What is the relationship between empathy and customer satisfaction about
the offered by BIA?
5. What is the relationship between tangible and customer satisfaction about
the offered by BIA?

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1.5 Research Objectives

In order to reveal answers to research questions the objectives of this study are to,

• Identify the service quality factors influencing customer satisfaction about the
services offered by BIA
• Identify the relationship between reliability and customer satisfaction about
the services offered by BIA
• Identify the relationship between responsiveness and customer satisfaction
about the services offered by BIA
• Identify the relationship between assurance and customer satisfaction about
the services offered by BIA
• Identify the relationship between empathy and customer satisfaction about the
services offered by BIA
• Identify the relationship between tangible and customer satisfaction about the
services offered by BIA

1.6 Significance of the study

Now a days Service organization became as the most leading income generated
industry in worldwide. And also, customer perception of service quality helps to
develop strategies which lead to customer satisfaction. (Saravanan & Rao, 2007). Since
airport is the leading place which foreign tourists interfere with when they enter to a
particular country, through this study the researcher can recognize the satisfaction level
on service quality of both local and foreign passengers served by BIA which will
directly influence on the first impression of the destination and the beginning level of
the tourism quality in the perspective of foreign passengers. Hence Sri Lanka is still a
developing country recognizing the most important service quality factors will let the
regulatory bodies prioritize and get involve the resources in a way that passenger
satisfaction is maximized with the best efficiency of resources as well as obtaining the
attributes of service quality drivers from the view of passengers will let the facilities
handle and maintain at its best by the management and employees.

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1.7 Limitations of the study

1. This research only focused on service quality and customer satisfaction about the
services offered by Bandaranaike international Airport. (BIA) Therefore, customer
satisfaction level regarding the BIA will not relevant to the customer satisfaction of
other airports.
2. Under this research only discussed about the 05 service quality dimensions as the
independent variables. but it may have more than five independent variables which
influences customer satisfaction about the services offered by Bandaranaike
international Airport. (BIA).

1.8 Organization of the chapters

This research will mainly consist with five chapters. In first chapter includes the
background of the study, problem statement and objectives, significance of the study,
research questions, and limitations. The second chapter will be included literature
review which consist with theoretical and empirical studies. But in this research,
researcher expected to include only empirical review because there were no any
theories regarding the passenger satisfaction and service quality available at particular
airport. Methodology is the third chapter, novelty and contribution of the study,
conceptual framework, hypothesis development, research design, population and
sample of the study, operationalization, data collection method and brief explanation
regarding the data analysis. In chapter four will be included about research findings.
Chapter five will represent a brief summary of the, research objectives research
questions and methodology adopted in the analysis and the key findings.

1.9 Chapter summary


This chapter provided an introduction to the research. The chapter starts briefly
discussion about contribution of airport and service quality for passengers (Both local
and Foreign). It then narrows the research focusing to the special area by drawing
attention to the crucial condition of the service quality of BIA. Furthermore, the chapter
discusses comprehensively on the nature of the research problem while providing a
rationale for the choice of this topic. Furthermore, it describes the significance of the
study, main problem of this study, and the objectives which are to be achieved by this
study.

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CHAPTER 02

LITERATURE REVIEW

2.1 Introduction

The purpose of this chapter is to provide a broad definition regarding the passenger
satisfaction, on the facilities available (service quality) at BIA. As well as This chapter
includes a critical review of the literature of the study.

2.2 Ground Service Quality

Ground service quality can quickly identify the problems and expectations of
customers. And also, according to this concept it always tries to improve their
service.as well as it considers about perceived expectations and perceived performance
of a service.

2.3 Factors of Ground Service Quality

SERVQUAL method is one of the most popular and best method, to measure the
service quality.it was founded by Parasuraman, Zenithal, and Berry in 1985.It can be
used to airport operators to identify the perceived perceptions and expectations of the
passengers quickly against which have been provided. This method has 5 measuring
tools such as reliability, responsiveness, assurance, empathy, and tangibles. According
to Some of literatures regarding the perceived performance, perceived service,
passenger satisfaction, and service quality, are defined as a belief about the services
that be experienced. (Tjiptono, Chandra, Fandy, & Gregory, 2016). When it comes to
another study it has discussed about quality outcomes, satisfaction and other intangibles
of airport expectations, along with facilities and more tangible aspects of airports'
physical settings. (Fodness & Murray, 2007) . In addition to that, providing the data for
development of preliminary conceptual bases for passengers' expectations of airport
service quality and perception can be identified as a process of user can select, organize
and describe something that is accepted as a complete perspective. (Schiffman &
Kanuk, 1997). Peoples’ perceptions are different from each other By the same

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indication, someone's perception of something that may be different to the perceptions
of others, because their needs, values, and expectations are not same.

2.4 Passenger Satisfaction

Customer satisfaction can be identified as an emotional response. In this scenario


customer will compare his expected values, needs and outcomes with particular object
or service. (Westbrook & Reilly, 1983). If a customer pleased regarding some specific
product or service that can also be known as satisfaction. And also, an individual’s
feeling of pleasure comes through comparing actual result with certain product or
service. (Kotler & Keller, 2009). When considering the airline industry, passenger
satisfaction explains, passengers fulfil their expected needs from the particular aviation
business. It considers how customers are getting happy through their overall experience
from the airline service quality.

With the rapidly growing scope of tourism and accelerating pace of competition in this
industry, it is becoming essential for countries to improve customer satisfaction with
each aspect of the industry. Therefor there should be a need for understanding which
air travel factors should be considering as passenger dissatisfaction and which factors
serve as enhancers of passenger satisfaction (satisfiers) in a global context. (Vanja,
Bogicevic, Yang, & Bujisic, 2013).

And also, delivering quality of airline services to passengers is essential for airline
survival, since passengers are becoming increasingly sensitive to quality or many
countries, tourism has become an important source of business activity, employment
income and surplus in the balance of trade in services. (Namukasa, 2013) . In tourism,
as in other service industries, the emergence, survival, development and failure of
ventures depend heavily upon customer satisfaction. In so far as satisfaction means the
intent to purchase again and the high probability that the satisfied customer will
recommend the goods or services to others (Collier, 1994). Increasing customer loyalty
can lead to higher profitability (Anderson, Fornell, & Lehmann, 1994).

Customer Satisfaction is a critical factor in developing long term relations between


tourist businesses and customers. (Shocker, Srivastava, & Ruekert, 1994). If tourists
are not fully satisfied by the quality of the services and products provided, it is highly
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unlike that they visit the same destination again. This reaction is normal if one considers
the lack of refunding opportunity for the tourist’s potential dissatisfaction (Vassiliadis
, Siomkos , Vassilikopoulou , & Lytras, 2004).

2.5 SERVQUAL Model

SERVQUAL model is a multidimensional study tool intended to capture a service


consumer,expectations and perceptions along the five dimensions that are thought to
reflect the quality of service. A group of American writers, who were Parasuraman,
Valarie , Zeithaml , & Leonard created the service quality model in 1985. commonly
known as the gap’s mode, in a systematic study program conducted between 1983 and
1988. The model defines the main dimensions (elements) of service quality; proposes
a service quality measurement scale (SERVQUAL) and indicates possible causes of
service quality issues. This method has 5 measuring tools such as reliability,
responsiveness, assurance, empathy, and tangible. According to this method it
generally deals with customers’ perceptions regarding the given service delivery and
customer's expectations regarding the given service delivery.

2.6 Identify the SERVQUAL dimensions

• Reliability: The capacity to execute service consistently and precisely

Generally, reliability means the feature of being accurate or reliable. Reliability shows
that staff are prepared to deliver services correctly, continuously and reliably.
(Parasuraman, Valarie , Zeithaml , & Leonard , 1985), (Leblanc & Nguyen, 1997).
Reliability also implies that the services are properly conducted and described as the
consistency of the results of the services. Furthermore, reliability implies that the
organisation keeps its commitments, trustworthiness towards the quality of the
workers’ services to prevent anything goes wrong. It acts as a main element in the
product and service industry that will affect customer behaviour towards brand image
and thus on their buying intention. Therefore, distinct services supplied to customers
will give distinct levels of customer satisfaction depending on the services supplied by
the product (Yuksel, 2001). And also, reliability is the one of the most significant
factors in ensuring the satisfaction and discontent of both clients. (Parasuraman et al.,
1985).
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This believed that managers and employees required to provide a reliable service and
reduce unreliable customer service in order to achieve a high level of customer
satisfaction. (Parasuraman et al., 1985). And argued in 1990 that service reliability is
one of the most important factors in the SERVQUAL model. As a consequence, most
organisations are likely to include problems of reliability in setting their mission
statement and the service standard to be delivered (Agarwal & Malhorta, 2005).When
the brand image of an organisation connected with reliability services of excellence is
regarded as one of the means of attracting the intention of purchasing clients through
a healthy brand image. So, reliability has the greatest effect on consumer judgement
as one of the five determinants of service quality (Parasuraman et al., 1985), (Malik,
Danish, & Usman, 2014), (Ham & Hayduk, 2003). As well as Hishamuddin Fitri Abu
Hassan again demonstrated that philosophy in the year of 2008.

• Responsiveness: Willingness to assist and react to consumer desires

Another independent variable that affects customer perceptions of service quality is


responsiveness. The significance of responsiveness is the desire to assist customers,
provide timely and good customer service, resolve problems when customers
confronted, and handle complaints (Reichheld & Sasser, 1990). According to
Parasuraman et al., (1985) states responsiveness should be extended because this
variable is very essential. In addition, excellent customer service is component of the
responsiveness. The responsiveness of employees takes customer service a step further
(Lovelock, 1983). By using technology, including websites, email and telephone
systems, it allows clients to rapidly obtain the data they need is one of the
responsiveness aspects (Lovelock, 1983). A responsive service will fulfil the
appropriate requirements or objectives of customers. The objectives can be many and
diverse based on the customer and the situation (MCDougall & Snetsinger, 1990). They
may include broad-level requirements, such as status requirements, stimulation,
belonging, or individuality, therefore responsiveness can identify as an essential
dimension for all staff members of organization to providing a best service quality for
customers.

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• Assurance: Employee's capacity to inspire trust and loyalty

Assurance can be identified as another dimension of SERVQUAL model. Assurance


demonstrates the understanding of the staff and how they convey trust and loyalty
(Parasuraman et al., 1985). Also known as the organisation provides its clients with a
reliable and safe service (Donnelly, Wisniewski, Dalrymple, & Curry, 1995).
According to the Parasuraman et al., (1985) study results, ten dimensions consisted of
five dimensions of the quality of service. There are three initial determinants in those
five dimensions that are tangible, responsive and reliable, while another two
determinants were Assurance and empathy extracted from the other seven aspects of
quality of service. Assurance derives from the service's competence, courtesy,
legitimacy and safety. This is because these four dimensions have overlapped, and the
fresh dimension of certainty is formed according to that study results. Another study
results proved that there is an important connection between customer perception of
service quality and brand image and assurance has a beneficial effect on the picture of
the brand. (Aydin & Ozer, 2005). Through the trust and loyalty of employees , that
express the quality of service (Athanassopoulos, Gounaris, & Stathakopoul, 2001).

• Empathy: The level to something that individualized service is provided

Empathy is one of the aspects generated and derived from the availability, interaction
and comprehension of the five dimensions of the SERVQUAL model. According to
Parasuraman et al., (1985) empathy stems from the approachability, interaction and
understand ability of the ten dimensions of the quality of service as well as the vital
care provided to the person and the customer care. In addition, accessible services
supplied by organizations are also known as empathy in meeting or identifying
particular customer requirements (Donnelly, Wisniewski, Dalrymple, & Curry, 1995).

Faithful customers ' value perceptions are usually associated with empathy and honesty
because they are dedicated to establishing a feeling of interactive fairness (Bowman &
Narayandas, 2001).The organization's individualized attention to the needs of the
customer is also considered as empathy (Salvador-Ferrer, 2010), (Shoeb, 2011).
Summarized that the organization's readiness to listen to what clients have said is the

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empathy services given by the organisation to individuals, both pleasantly and
personally, by treating and respecting them well. Empathy services can be said to be
concerned with the attitude and behaviour of staff towards customers. According
another study demonstrates that empathy with satisfaction has a substantial connection
(Raza & Nawaz, 2011).This implies that empathy reflects how the organisation treats
and looks after its requirements and expects everyone to receive fair treatment by
offering the same services.

• Tangible: Availability of physical facilities, equipment and staff


appearance

Tangible is another dimension of SERVQUAL model. It can be described as the


service industry's physical proof (Parasuraman et al., 1985). It is the physical
installations and machinery, the appearance of staff, physical service depictions and
the physical environment. And also, the physical environment will have a major impact
on the opinions of customers about service quality. (Wakefield & Blodgett, 1999).
Tangible can be said to have an important effect on the attitudes of customers towards
brand image. Services are intangible, so customers can only see and experience from
the company's tangible services, such as facilities and machinery, as well as workers’
appearance. The "clues" are those of the concrete services (Parasuraman et al., 1985).
The "clues" are the company's skills and the environment's quality. The way tangible
services are managed will have a direct impact on customer satisfaction because these
tangible services are critical components in shaping the picture of the service quality.
(Parasuraman et al., 1985). Tangible is linked to the company's physical features. This
variable acts as a main component in attracting more and more clients and thus gaining
competitive advantage over the rivals. In addition to that, this dimension can produce
direct and indirect results on the picture of the brand. As a consequence, most
businesses are now likely to formulate and execute policies that are helpful in capturing
prospective customers and retaining present customers through the use of eye-catching
physical constructions and offering a distinctive and comfortable atmosphere for the
services supplied. (Kayaman & Huseyin , 2007).

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2.7 Identify the relationship between SERVQUAL dimensions and customer
satisfaction

Since customer satisfaction is regarded to be based on the customer's experience of a


specific service meeting. It is associated with the reality that service quality is a
determinant of customer satisfaction, because service quality comes from services
offered by service suppliers in organisations. (Cronin, Steven, & Taylor, 1992). And
also, to attain a high level of customer satisfaction, most scientists recommend that the
service provider should deliver a high level of service quality. Because, service quality
is usually considered an obvious meaning of customer satisfaction (Anderson, Fornell,
& Lehmann, 1994) , (Cronin et al., 1992).Therefore, we can understand if service
quality items such as, reliability, responsiveness, assurance, empathy, tangible can
provide high quality services for customers, definitely they will satisfy regarding that
service. According to the lot of service quality and customer satisfaction researches
proved there is a positive relationship between all the SERVQUAL model dimensions
(Reliability, Responsiveness, Assurance, Empathy, Tangible) and customer
satisfaction. For an example, “An Empirical Investigation of Service Quality and
Customer Satisfaction in Professional Accounting Firms: Evidence from North
Cyprus” which was done by Mehmet Aga Okan Veli Safakli, A study on relationship
between service quality and customer satisfaction. An empirical evidence from
Pakistan telecommunication industry, which was done by Muhammad Ishtiaq in 2011
as well as Michael D. Cleme’s research which was done in 2016 regarding the empirical
analysis of customer satisfaction in international air travel”. These all researches
proved there was a positive relationship with reliability and customer satisfaction,
responsiveness and customer satisfaction, assurance and customer satisfaction,
empathy and customer satisfaction and finally tangible and customer satisfaction.
Therefore, according to this study, researcher also expected there will be a positive
relationship with SERVQUAL model dimensions and customer satisfaction.

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2.8 Customer expectations and facility upgrading in airports

Airports world over make huge investments on capacity improvement and facility
upgrading to meet the growth forecasts in passenger and cargo movements.
International Civil Aviation Organization (ICAO) and other leading aircraft
manufacturers predict the highest growth indices to emerge in Asia (Jayalath &
Bandara, 2001).

In many cases airport is the first place that tourist see when the plane lands. No one
disagrees that the first impression is very important, hence airport and its facilities
should have a positive effect on people who are coming to the city or country for the
first time, while travellers who come and leave from the country should get a good
impression before their plane takes off. This happens only if the traveller was satisfied
with the services offered at the airport. (Chumkova, 2014).Appliance and quickness of
an airport having a direct effect on perceived image, perceived value and passenger
satisfaction and behavioural intention of passengers (Singh, 2015).

“Customer satisfaction measurement is now considered as the most reliable feedback,


taking into account that it provides in an effective, direct, meaningful and objective
way the customers’ preferences and expectations (Grigoroudis E. & Y. Siskos, 2010).
And It is generally accepted that tourists have expectations after selecting a destination
for a holiday and that their satisfaction levels during and after their holiday period are
functions of their expectations (Huh, Uysal, & McCleary, 2006).

As well as, that there should be a friendly staff relationship with the passengers.
(Popovic, Kraal, & Kirk, 2009). Not only that, Passenger behaviour and expectations
of the airport experience depend on the type of traveller, purpose of trip and his or her
circumstances. (Fodness & Murray, 2007). The main principles of continuous
improvement require the development of a specific customer satisfaction measurement
process. In this way, any improvement action is based on standards that take into
account customer expectations and needs. (Grigoroudis E. & Y. Siskos, 2010).

13
2.9 Airports in Sri Lanka

Sri Lanka has mainly four airports, such as Bandaranaike International Airport, Mattala
Rajapaksa international airport, Colombo (Rathmalana) airport, and Batticaloa Airport.
But Bandaranaike International Airport and Mattala airport are only doing the
international passenger and cargo movements. BIA is located in Katunayeke in
Colombo district 30 kilometres north from the Colombo City. Mattala airport is located
in Hambantota district. This airport is the second international airport of Sri Lanka.
Rathmalana and Batticaloa airports are only doing the domestic airlines (Airport &
Aviation Services (Sri Lanka) Limited, 2019). Among all of this air ports BIA is the
major and largest airport in the Sri Lanka.

2.10 Bandaranaike International Airport History and Development

BIA has opened as a Royal Air Force airfield in 1944. Prime minister S.W.R.D
Bandaranaike removed all British military airfields from Sri Lanka in 1957. And
handed over to Royal Ceylon Air force. In 1970 this airport was named as
Bandaranaike airport. It was renamed Katunayake international airport in 1977, but
again that was named as Bandaranaike international airport in 1995. (Airport &
Aviation Services (Sri Lanka) Limited, 2019) .

The first Boeing 747 landed to this airport in 7th of November in 1971. That flight came
from Frankfurt of German with German tourists. When it comes to Airport enlargement
projects eight aero bridges has been opened in 2005, under the Stage 1 Phase 2
Expansion project. As well as a new terminal and new additional 8 gates are proposed
to build under next stage. That project will be completed by 2020. BIA airport is used
by Emirates airline as their alternative emergency for its Airbus 380 aircraft. First
airbus landed at BIA in 9th of January in 2012 and that also operated under Emirates
(Airport & Aviation Services (Sri Lanka) Limited, 2019).

14
2.11 Available Facilities of Bandaranaike International Airport

According to ENO centre for Transportation (some kind of non-profit independent


think tank in America) 53 every airport can be identified as one of the best places for
fulfilling the various spatial and other requirements and act as an exchange point for
people and goods.as well as any airport mainly can be divided in to two zones such as
air side and land side.

Airport is identified as a business card of a country, because it makes unforgettable


memories in each users’ mind. Mainly those users can be identified as passengers,
airport personnel, airport administration, airline companies and of course the country
itself. (Edwards & Sarah, 2005). These users also common for BIA. Each airport has
two terminals and that can be recognized as passenger terminal and cargo terminal.
(ENO Foundation for Transportation 1986,) This terminal is also can be seen in BIA.

According to the opinion of Edwards & Sarah (2005) terminal buildings of an airport
should be consisted with seven different zones for departure such as entrance
concourse, flight information, bars and restaurants, passport control, departure lounge
and duty-free shops and pier and gate to plane and four zones on arrival (arrivals
lounge, baggage reclaim, customs and immigration control) as well as different
services are offered in customer terminal. mainly we can see entertainment services
including with shops with duty free, restaurant, cafes, bars, tourist information, waiting
rooms, children rooms, lost and found services, medical services, post services, banks,
ATM, luggage office services. These all kind of facilities can be seen in BIA.

When it comes to available facilities of BIA context, it can be mainly categorized under
passenger guide services, shopping, dine and relax services, aviation security, bank and
money exchange, mobile communication, medical Services, pet assistance and other.
In Bandaranaike International Airport every passenger including foreigners can get the
information through airport guide office and website of the airport mainly regarding
the arrival information, including with procedures, immigration, customs, baggage,
other arrival services, departure information, getting around information such as lobby
rates, parking, to and from airport, things to do and transit services as airline lounges
services, transit hotel services and etc. Under shopping dine and relax services Ceylon
15
tea products, handicrafts, electrical and electronic household appliances, wines,
whiskeys, perfumes, can be purchased from the duty-free shops which are located in
Arrival and Departure terminals for foreigners with resident visa. Any passengers
including foreigners can get the service from approximately 8 restaurants. BIA provide
24 hours “Banking services “through various banks. And it provides “Mobile
Communication” through various mobile phone operators. Specially it is very useful
for foreigners. BIA has excellent and international level medical centre with qualified
staff, and it provides medical services for passengers. Due to this reason it creates very
good image regarding the country, Specially in foreigners’ mind. BIA facilitates for 30
airline services around the world. Due to this reason it provides huge service for both
local and foreign passengers.

2.12 International Aircraft Movements of Bandaranaike International Airport

According to the Airport and Aviation Services of Sri Lanka; BIA handled 67,308
international flight movements, 279,560 MT cargo movements, as well as 10,883,904
passenger movements in year 2018. Based on above mentioned data we can understand
the importance of BIA for Sri Lankan economy and society. Specially passenger
movements via BIA is very significant area for this research. According to the Civil
Aviation Authority 2019 can be explained the growth of aircraft movements
statistically as follow.

Figure 2.1: Aircraft Movements of BIA

Aircraft Movements

(Source: (Airport & Aviation Services (Sri Lanka) Limited, 2019))

16
According to this graph it indicates air crafts movements of BIA has been increased
annualy, since 2013 to 2018 aircraft movements has been grown up approximately by
16,000.Therefor this increased aircraft movements display the siginficancy of BIA as
a transportation hub of Sri Lanka.

Figure 2.1: Freight Traffic Pattern of BIA

(Source: (Airport & Aviation Services (Sri Lanka) Limited, 2019))

When analysing above graph it indicates the contribution for Freight traffic pattern has
been grown up by annually specially after the 2015. But according to this research
researcher only concerned the Service quality and customer satisfaction (passengers’
satisfaction) about the services offered by BIA, following figure will be explained the
passenger movements of BIA.

17
Figure 2.2: Transit Passenger Movement

Transit Passenger Movement

(Source: (Airport & Aviation Services (Sri Lanka) Limited, 2019))

Figure 2.3: Passenger Movement

Passenger Movement

(Source: (Airport & Aviation Services (Sri Lanka) Limited, 2019))

By analysing the above graph, we can understand passenger movements through BIA
was grown up by year and year specially after the war period of Sri Lanka in 2009.
Based on this data we can understand Bandaranaike international airport (BIA) is very
important transportation hub for Sri Lanka and powerful income generated hub for Sri
Lankan economy.
18
2.13 Chapter Summary

This chapter included with 13 subtopics with summary. This chapter discussed
literature studies on airport services and other sectors’ service quality and customer
satisfaction. This chapter analysed the airport service quality (facilities) through the
perspective of service experience of passengers. In this scenario researcher has selected
the SERVQUAL method for quality measurements. Under this chapter researcher
discussed introduction, ground service quality, factors of ground service quality,
passenger satisfaction, SERVQUAL model, Identify the SERVQUAL dimensions,
Identify the relationship between SERVQUAL dimensions and customer satisfaction,
customer expectations and facility upgrading in airports, airports in Sri Lanka, BIA
history development, available facilities of BIA, international aircraft movements of
BIA and finally summary of the chapter.

2.14 Summary Table of Literature Review

Table 2.1:Summary Table of Literature Review

No Authors/ Title Objectives Methods Findings


published year
01 (Westbroo k & Value percept Understanding the Simple Need for
Reilly, 1983) Disparity: An theory of customer random continued effort to
Alternative to the satisfaction improve the
Disconfirmation measurement of
of Expectations constructs
Theory of theorized to
Consumer determine
Satisfaction consumer
satisfaction.

19
02 (Fodness & Passengers' Contribute to the Simple Passengers'
Murray, 2007) expectations of development of a random expectations of
airport service conceptual model of airport service
quality service quality in quality are a
airports by conducting multidimensional,
an empirical hierarchical
investigation into construct that
passengers' includes three
expectations for this key dimensions:
service industry. function,
interaction and
diversion.
03 (Bogicevic, Airport service Considering the Simple Pleasant
Yang, & quality drivers of complexity of the random environment is
Bilgihan, 2013) passenger airport industry key satisfiers
satisfaction service palette and factors,
Explain most
frequently mention
attributes of airport
service quality
04 (Namukasa, The influence of Examine the Simple Passenger
2013) airline service influence of airline random satisfaction
quality service quality on method different from
on passenger passenger person to person
satisfaction and satisfaction and as some were
loyalty loyalty more interested in
off board
facilities, others
on board, others
in the quality of
food while others
wanted more
extra luggage.

20
05 (Singh, 2015) Modelling Examine the Conceptual Passengers’
passengers’ future interrelationship framework satisfaction on
behavioural between service is was found to
intentions in quality and passenger developed have a direct
airline industry satisfaction and based on influence on
using SEM influence of passenger previous passengers’
future behaviour studies. future
intention And that Behavioural
model is intention.
tested using
structural
equalling
model
approach
06 (Popovic, Kraal, Passenger Understand the full An activity Airports should
& Kirk, 2009) experience experience regarding centred also consider
at airport the passengers when approach how well staff
they passed through socially interact
the airport and how with passengers,
passengers spent their and how well the
non-processing time passenger is
prepared for good
passenger
experience.
07 Customer To Identify whether the Simple Passengers will
(Chumkova, satisfaction on customers are satisfied Random get a good
2014) facility services in with the services method impression
terminal 2 of offered by the airport regarding the
Tampere relevant country,
Airport if airport provide
satisfied services
and facilities.

21
CHAPTER 03

METHODOLOGY

3.1 Chapter Introduction

The aim of this research was to evaluate passenger satisfaction with the facilities
(service quality) available at Bandaranaike International Airport. This chapter aims to
illustrate the research methodology. This chapter deals with the research methodology
for the choice of samples, the use of questionnaires to collect primary data and the use
of techniques to solve each item. The researcher considered SERVQUAL model
dimensions (Reliability, Responsiveness, Assurance, Empathy and Tangible) as
independent variables and passenger satisfaction as dependent variables according to
the available literature. Statistical package for social sciences (SPSS) and Microsoft
excels used for the data analysis. So, this chapter overview with the novelty and
contribution, conceptual framework of the study, hypothesis development, research
design, population and sample of the study, operationalization, data collection and data
analysis method use in the study.

3.2 Novelty and the contribution of the study

Even though there are several researchers in international context had researched
regarding service quality and passenger satisfaction on Airports, in Sri Lanka there are
so few such attempts to addressed to this research problem in a proper manner. So, this
study conducted to provide an answer to those questions in the sense of the Sri Lankan
context. passengers, researchers, service providers, civil aviation authority,
management of the BIA and other decision makers can use this study for their decision-
making purposes. This study is to disclose the relationship between the service quality
and passenger satisfaction about the services offered by BIA. Relationship between the
service quality and passenger satisfaction of BIA or airline industry researches has not
been done by scholars in Sri Lanka. Therefore, this study is an attempt to fulfil that
gap.

22
3.3 Conceptual framework of the study

Figure 3.1: Conceptual framework

Independent Variables

Service Quality
Dimensions

Reliability

Dependent
Variable
Responsiveness

Customer
Assurance Satisfaction

Empathy

Tangibles

Source: (Developed by the researcher based on literature)

23
3.4 Hypothesis Development

H1: There is a positive relationship between service quality and Customer Satisfaction.

H2: There is a positive relationship between Reliability and Customer Satisfaction.

H3: There is a positive relationship between Responsiveness and Customer Satisfaction.

H4: There is a positive relationship between Assurance and Customer Satisfaction.

H5: There is a positive relationship between Empathy and Customer Satisfaction.

H6: There is a positive relationship between Tangible and Customer Satisfaction.

3.5 Research Design

Research design can be identified as a blue print to measure and analyse the data based
on research questions of the study. Therefore, the main target of this context is to
illustrate briefly overall methodology of the study. This report adopted a survey
research design. This study used survey study because of the methodological choice
of samples and rigorous statistical approach as well as this study used quantitative
approach to analyse data. The researcher used the 5-point Likert Scale method to
examine the service quality and customer satisfaction of Bandaranaike international
airport (BIA), which is situated in Katunayeke in Colombo district. And also, Data
collected by using self-administrative questionnaires as a primary data collection
method.

According to the questionnaire of this research containing 31 questions with mainly


three parts as general information, service quality dimension and customer
satisfaction. That service quality dimension had 5 dimensions such as reliability,
responsiveness, assurance, empathy and tangible. Under that Service quality
dimension (Independent Variable) questionnaire contained with 22 items for
measuring the service quality perceptions: Four items for reliability, responsiveness,

24
assurance, and empathy and six items for tangible were included. As well as the
remaining dimension customer satisfaction (Dependent Variable) had 4 items and
measuring scale was five – point Likert type scale ranging from strongly agree (1) to
strongly disagree (5).

The pilot test study of this research had been done by researcher by using 33 BIA
customers’ responses by using the SPSS 23.0 version package. So, based on SPSS
data Reliability and validity of the study was tested and could be confirm the accuracy
of that questionnaire. Because validity and reliability tests done successfully.

3.6 Population and Sample of the Study

Bandaranaike international airport is the Sri Lankan most premium and major airport
for both passenger and cargo movements. According to this study, researcher focused
only the passenger movements due to measure the customer satisfaction regarding the
service quality of BIA. Due to BIA is the major airport of the Sri Lanka., It had huge
population. According to the Airport & Aviation Services (Sri Lanka) Limited,
approximately it was 10,883,904 populations in 2018. And also, here the researcher
has used the convenience sampling method and selected 150 sample for the study by
providing self-administrated questionnaire as a google form and physically available
questionnaire, because of population was too huge for sampling purpose

25
3.7 Operationalization

Table 3.1.Operationalization Table

MEASUREMENT
VARIABLES SOURCE
ITEMS
1. INDEPENDENT VARIABLE
1.1 RELIABILITY 5-point Likert
1. When Passengers have problems, they show Scale
great interest for solving that problems Comfort, 5-point Likert
2. Staff will perform the service right the first time Convenience and Scale
3. When they promise to do something in defined Confidence 5-point Likert
time period, they do so Scale
4. When providing the service, they always try to 5-point Likert
continue the error free records Scale

1.2 RESPONSIVENESS
5-point Likert
1. Employees are always willing to help
Scale
passengers
5-point Likert
2. Employees provide prompt services for Comfort,
Scale
customers Convenience and
5-point Likert
3. Staff members of BIA never too busy to Confidence
Scale
passengers’ requests
5-point Likert
4. Employees have sincere interest to minimize
Scale
the long queues of passengers by providing the
proper and efficient service.
1.3 ASSURANCE
5-point Likert
1. Employees of BIA have enough and updated
Scale
knowledge to answer the passengers’
5-point Likert
questions. Comfort,
Scale
2. Behavior of employees of BIA are polite to Convenience and
5-point Likert
customers Confidence
Scale
3. Passengers feel safe in their transaction with
5-point Likert
staff members of BIA.
Scale
4. Employees indicate professionalism, when
providing the services for passengers

26
1.4 EMPATHY 5-point Likert
1. Understand the Specific needs of their Scale
customers(passengers) 5-point Likert
2. Operating hours of BIA are convenient to Comfort, Scale
passengers. Convenience and 5-point Likert
3. BIA provide personal attention for their Confidence Scale
passengers 5-point Likert
4. BIA provides adequate facilities for its Scale
passengers.
1.5 TANGIBLE Cleanliness
5-point Likert
1. Virtually attraction of Physical facilities Space
Scale
2. Employees are well dressed and appear neat Comfort and
5-point Likert
3. Physical environment of the BIA is clean and convenience
Scale
safety Interior
5-point Likert
4. Parking facilities of BIA Safety
Scale
5. There are proper signboards directing to the Signage
5-point Likert
passengers.
Scale
6. Availability of restaurant facilities
1. DEPENDENT VARIABLE
2.1 SATISFACTION ON THE FACILITIES
Happiness feeling 5-point Likert
regarding the airport Scale
1. Say positive things about the airport to other
people. 5-point Likert
Recommendation to
2. Encourage friends and relatives to others Scale
recommend the BIA. 5-point Likert
Preference for
3. Intend to continuously choose the BIA as a Scale
choose again
transport hub. 5-point Likert
4. Have strong preference on this airport. Strong preference Scale
regarding the airport
service quality.

(Source: developed by the researcher)

27
3.8 Data Collection Method

The data collection method should be aligned with the research objectives, questions
and the sample, to make a success study. There are two types of data collection sources
such as primary data sources and secondary data sources. There are so many methods
available to collect primary data for both quantitative and qualitative studies such as
interviews, observations, questionnaires. In this study researcher has used the self-
administrative questionnaire as a primary data collection method and used the
convenience sampling to collect the data.

The questionnaire was prepared based on the prior studies and it was provided to
selected sample by hand and by using a google form. According to the study, the
questionnaire has been included with 3 main sections which are background
information (general information), service quality, customer satisfaction experienced
in BIA and in addition to that there was a sub section as any comments regarding the
overall experience of BIA.The first section of the questionnaire was used to collect the
demographic data from the responders including gender, age group, purpose of
travelling via BIA and passenger type. The second section asked from the responders
about the variables of interest in this study, which were reliability, responsiveness,
assurance, empathy, tangible and third section consisted with four items regarding the
customer satisfaction. All the items measured using a five-point Likert scale, ranging
from strongly disagree to strongly agree.

This questionnaire was developed using google forms and was distributed using
electronic method using Facebook, Messenger, WhatsApp and Viber. Majority of
Data could be selected from that method and less amount of data was collected through
personally administrated questionnaire on paper version. The answers which were
collected using google form directly were exported to a Microsoft Excel workbook
and manually entered the answers which were given through personally administrated
questionnaire on paper version. After that all the data had been imported to IBM SPSS
(statistical package for social sciences) analysis tool version 23 on Microsoft
Windows. The data were collected from both local and foreign passengers, a total of
163 passengers responded to this survey, but researcher selected only 150 passengers’
responses as the sample size for the final data analysis.

28
3.9 Data Analysis

There are several techniques for examining and analyzing the collected data. The
relationship between service quality and customer satisfaction and its influence can be
proved by many statistical tools such as simple regression analysis, correlation, mean,
median, mode, skewness, and standard deviation. The collected data were analyzed by
entering into Statistical Package for Social Sciences (SPSS 23.0 version package).

The demographic information of the responders was analyzed by the descriptive


statistics such as frequency distribution and percentage. The frequency distribution is
exhibited by pie charts. As well as through Statistical Package for Social Sciences
(SPSS 23.0 version package) researcher analyzed the factor analysis, correlation
analysis and the simple regression analysis.

3.10 Chapter summary

This chapter discussed the research methodology used for this research study, it
included novelty and contribution of the study, conceptual framework, hypotheses
development, research design. Then, population and sampling and questionnaire,
development, operationalization for each construct and the methods of data collection,
methods of data analysis were discussed in detail at the end of the chapter.

29
CHAPTER 04

DATA ANALYSIS

4.1 Introduction

This chapter is discussed about research findings. Collected data was analysed in order
to achieve the objectives of this study. In this research study, service quality dimensions
used as an independent variable (Reliability, Responsiveness, Assurance, Empathy, and
Tangible) as well as customer (passenger) satisfaction used as dependent variable. In
this research, the researcher has presented the data using graphical representations
which makes it easy to understand and make decisions. Statistical tools such as
descriptive analysis, factor analysis reliability analysis, correlation and regression
analysis are used to test the variables and objectives taken in the study. The data was
analysed by using SPSS 23 version.

4.2 Descriptive Statistics

According to the sampling method, 150 valid inputs were taken as the sample size of
the study. With regarding to descriptive data analysis, a demographic analysis based
on gender, age group, passenger type and the purpose of travelling via BIA.

4.2.1 Gender
Table 4.1 Gender of responders
Frequency Percent Valid Percent Cumulative Percent
Valid Female 66 44.0 44.0 44.0
Male 84 56.0 56.0 100.0
Total 150 100.0 100.0

Based on the demographic data collected through the questionnaire, most of the data
which has been used in this research has been collected from male responders, which
represents 56 % from the selected sample and responders of female which represented
44 %. There were 84 participants who were male and 66 participants as female. That
details are represented as pie chart as follow.

30
Figure 4.1 Descriptive Analysis for Gender

GENDER
Male Female

Female
44%
Male
56%

4.2.2 Age Group

Table 4.2: Age group of the responders

Cumulative
Frequency Percent Valid Percent Percent
Valid 18-25 years 56 37.3 37.3 37.3
26-35 years 51 34.0 34.0 71.3
36-49 years 26 17.3 17.3 88.7
Above 50 years 17 11.3 11.3 100.0
Total 150 100.0 100.0

According to the 4.2 table, there were four age categories as 18-25 years, 26-35 years,
36-49 years and Above 50 years. There were 56 responders who were 18-25 years
which represented 37.3% of the sample. It is the age group, which indicated maximum
number of responders the in this sample. In the age group between 26-35 there were
51 responders and it represented as 34.0% of the sample size. There were 26 responders
in the age group of 36-49 category and it represented as 17.3% of the sample. The age
group, above 50 years is the age category, which represented minimum number of
participants for this study as 17 participants and it indicated the 11.3% in the sample
size. Following pie chart shows the age distribution of the age group.
31
Figure 4.2: Descriptive analysis for Age Group

Age Group

11%

17% 38%

34%

18-25 Years 26-35 Years 36-49 years Above 50 Years

4.2.3 Passenger Type

Table 4.3: Passenger type of the responders

Frequency Percent Valid Percent Cumulative Percent


Valid Local 128 85.3 85.3 85.3
Foreign 22 14.7 14.7 100.0
Total 150 100.0 100.0

The 4.3 table shows the passenger type of the responders and it has identified basically
two categories as local and foreign customers (passengers). There were 128 responders
who were local passengers and it represented 85.3% of the sample. There were 22
participants who are foreign passengers, and which represented 14.7% of the sample.
Above details can be represented as a pie chart.

32
Figure 4.3: Descriptive Analysis for the Passenger Type

Pasenger Type

15%

85%

Local Foregien

4.2.4 Purpose of travelling via BIA

Table 4.4: Purpose of travelling via BIA

Cumulative
Frequency Percent Valid Percent Percent
Valid Tourism 89 59.3 59.3 59.3
Education 30 20.0 20.0 79.3
Business 22 14.7 14.7 94.0
Others 9 6.0 6.0 100.0
Total 150 100.0 100.0

According to the 4.4 table, shows the purpose of the travelling via BIA. There were 89
responders who were tourism purpose and it represented 59.3% of the sample. There
were 30 responders who were education purpose and it represented 20% of the sample.
There were 22 responders who were business purpose and it represented 14.7% of the
sample. Also, there were 9 responders who were other purpose and it represented 6%
of the selected sample. Distribution of purpose of travelling via BIA can be shown as
a pie chart as follow.

33
Figure 4.4: Descriptive analysis for Purpose of Travelling via BIA

Purpose of travelling via BIA

6%
15%

20% 59%

For Tourism For Education For Business Other

3.3 Factor Analysis

The questions in the questionnaire were quoted to be valid and reliable to measure the
constructs of the phenomena that they intend to represent. Validity and reliability are
concepts concerned with the extent to which an instrument actually measures. (Sitzia,
1999). According to the Sitzia (1999) “Validity testing is an attempt to support the
measurement instrument are a clear representation of the concept under study”.
“Validity determines whether the research truly measures that which it was intended to
measure or how truthful the research results are. (Smith, , Fischer, & Fister, 2003).

34
4.3.1 Factor analysis for Reliability

Table 4.5: KMO and Bartlett's Test for Reliability

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .737


Bartlett's Test of Approx. Chi-Square 220.200
Sphericity Df 6

Sig. .000
According to 4.5 table of the KMO and Bartlett’s test, has been performed and figure
shown 0. 737, which is more than 0.5, significance value is 0.000<0.05, the sample is
adequate to run the factor analysis.

Table 4.6: Component Matrix for Reliability


Component Matrixa
Component
1
05.BIA Provides services on time
.794
06.BIA insists on error free records
.761
07.BIA has sincere interest in solving problems
.829
08.BIA performs the services right first time
.840

Extraction Method: Principal


Component Analysis.
a. 1 component extracted

The component matrix of the reliability has been performed as above component matrix
table and according to that 4.6 table of the component matrix, since values are greater
than 0.5, each question were validated.

35
4.3.2 Factor analysis for Responsiveness

Table 4.7: KMO and Bartlett's Test for Responsiveness

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling Adequacy .680
Bartlett's Test of Sphericity Approx. Chi-Square 248.104
df 6

Sig. .000

According to 4.7 table of the KMO and Bartlett’s test, has been performed and figure
shown 0. 680, which is more than 0.5, significance value is 0.000<0.05, the sample is
adequate to run the factor analysis.

Table 4.8 Component Matrix for Responsiveness

Component Matrixa
Component

1
09.Employees try to minimize the long queues of passengers .807

10.Employees of the BIA provide prompt service for me .812

11.Employees of the BIA always willing to help me .803

12.Employees of the BIA never too busy to respond my requests .795

Extraction Method: Principal Component Analysis.


a. 1 component extracted.

The component matrix of the responsiveness has been performed as above component
matrix table and according to that 4.8 table of the component matrix, since values are
greater than 0.5, each question were validated.

36
4.3.3 Factor analysis for Assurance

Table 4.9: KMO and Bartlett's Test for Assurance

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .749
Bartlett's Test of Approx. Chi-Square 251.692
Sphericity df 6
Sig. .000

According to 4.9 table, of the KMO and Bartlett’s test, has been performed and figure
shown 0. 749, which is more than 0.5, significance value is 0.000<0.05, the sample is
adequate to run the factor analysis.

Table 4.10: Component Matrix for Assurance


Component Matrixa
Component
1
13.The behaviour of staff members of BIA create confidence in
my mind .817

14.Employees of BIA have proper and updated knowledge to


answer my questions .803

15.Employees of BIA indicate professionalism with me .812

16.I feel safe in my transactions with BIA .854

Extraction Method: Principal Component Analysis.


a. 1 components extracted.
The component matrix of the assurance has been performed as above component matrix
table and according to that 4.10 table of the component matrix, since values are greater
than 0.5, each question were validated.

37
4.3.4 Factor analysis for Empathy

Table 4.11: KMO and Bartlett's Test for Empathy


KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .761
Bartlett's Test of Approx. Chi-Square 249.122
Sphericity df 6
Sig.
.000

According to 4.11 table, of the KMO and Bartlett’s test, have been performed and
figure shown 0. 761, which is more than 0.5, significance value is 0.000<0.05, the
sample is adequate to run the factor analysis.

Table 4.12: Component Matrix for Empathy

Component Matrixa
Component
1
17.BIA provides individual attention to me .821

18.BIA provides adequate facilities for me .806

19.Operating hours of BIA are convenient for me .813

20.Employees of BIA understand my needs .852

Extraction Method: Principal Component Analysis.


a. 1 component extracted.

The component matrix of the empathy has been performed as above component matrix
table and according to that 4.12 table of the component matrix, since values are greater
than 0.5, each question were validated.

38
4.3.5 Factor analysis for Tangible

Table 4.13: KMO and Bartlett's Test for Tangible

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .858
Bartlett's Test of Approx. Chi-Square 548.806
Sphericity Df 15
Sig.
.000

According to 4.13 table, of the KMO and Bartlett’s test, have been performed and figure
shown 0. 858, which is more than 0.5, significance value is 0.000<0.05, the sample is
adequate to run the factor analysis.

Table 4.14: Component Matrix for Tangible


Component Matrixa
Component
1
21.BIA provide proper parking facilities .852

22.Physical premises of the BIA is clean and safety .806

23.Interior of the BIA is pleasant for me .825

24.Employees of BIA are smartly dressed, neat and appealing .851

25.There are proper signboards directing me in the airport .782

26.BIA has good restaurant facilities .807

Extraction Method: Principal Component Analysis.


a. 1 components extracted.

The component matrix of the tangible has been performed as above component matrix
table and according to that 4.14 table of the component matrix, since values are greater
than 0.5, each question were validated.

39
4.3.6 Factor analysis of Customer Satisfaction

Table 4.15: KMO and Bartlett’s Test Customer Satisfaction


KMO and Bartlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .717
Bartlett’s Test of Approx. Chi-Square 271.233
Sphericity Df 6
Sig. .000
According to 4.15 table, of the KMO and Bartlett’s test, has been performed and figure
shown 0. 717, which is more than 0.5, significance value is 0.000<0.05, the sample is
adequate to run the factor analysis.

Table 4.16 Component Matrix for Customer Satisfaction


Component Matrix
Component
1
27.I have a positive impression about BIA to say others .867

28.I recommend BIA for my friends and relatives .844

29.As a BIA passenger I have strong preference regarding this


airport .831

30.I prefer to choose BIA as a transport hub again .749

Extraction Method: Principal Component Analysis.


a. 1 components extracted.

The component matrix of the tangible has been performed as above component matrix
table and according to that 4.16 table of the component matrix, since values are greater
than 0.5, each question were validated.

40
4.3.7 Reliability Test Summary

Reliability is “an assessment degree of consistency between multiple measurements of


a variable” (Hair, Celsi, Money, Samouel, & Page, 2011). Generally, Cronbach’s alpha
is being used to measure the internal consistency and if a particular scale has
Cronbach’s alpha value (α) greater than 0.6, then that scale is considered as reliable.
According to the Table 4-17, the Cronbach’s alpha of all the variables are greater than
0.6 which indicates that the reliability has been established in the study as follow. As
well as researcher attached that reliability analysis tables in the annexures.

Table 4.17: Reliability Test Summary

Variables Cronbach’s Alpha Value (α) No of Items

Reliability 0.819 4

Responsiveness 0.818 4

Assurance 0.839 4

Empathy 0.841 4

Tangible 0.902 6

Customer satisfaction
0.839 4
(Dependent variable)

According to the table 4.17 Cronbach’s Alpha value for five dimensions of the
independent variables are, Reliability alpha value is 0.819, Responsiveness alpha value
is 0.818, Assurance alpha value is 0.839, Empathy alpha value is 0.841 and tangible
alpha value is 0.902. Dependent variable or customer satisfaction on service quality
alpha value is 0.839. All of the item’s Cronbach’s alpha values were more than 0.6.
Therefore, above all dimensions (Reliability, Responsiveness, Assurance, Empathy,
Tangible) can be identified as providing good support to the Customer satisfaction.

41
4.4 Hypotheses Testing

Result of correlations Analysis


According to the Pearson Correlation can shows strength of the relationship. Pearson
correlation value is spread between the value (+01) and (-01). Significant value
describes the significance of the relationship between dependent and independent
variables. In 99% confidence level its value must be a below 0.01 and also in 95%
confidence level its value must be a below 0.05

• 99% confidence level = <0.01

• 95% confidence level = <0.05

Table 4.18: Result of correlations Analysis


T SQ CS
RL R A E

Pearson
Reliability

1 .805** .806** .782** .791** .898** .718**


Correlation
Mean

Sig.
.000 .000 .000 .000 .000 .000
(2-tailed)
Pearson
1 .896** .798** .849** .934** .780**
siveness
Respon

Correlation
Mean

Sig.
.000 .000 .000 .000 .000
(2-tailed)
Pearson
1 .858** .889** .958** .819**
Assurance

Correlation
Mean

Sig.
.000 .000 .000 .000
(2-tailed)

Pearson
1 .844** .921** .783**
Empathy

Correlation
Mean

Sig.
.000 .000 .000
(2-tailed)
Pearson
1 .941** .819**
Correlation
Tangible
Mean

Sig.
.000 .000
(2-tailed)
Pearson
1 .843**
Correlation
Quality
Service
Mean

Sig.
(2-tailed) .000

**. Correlation is significant at the 0.01 level (2-tailed).

42
The table 4.18 represents the Pearson Correlation and the significance of the
relationship of considered independent and dependent variables. According to that
table it indicates strong correlation between the variables. Specially there is a strong
positive correlation between the Service quality and customer satisfaction

4.5 Regression Analysis

Regression analysis is a powerful and flexible procedure for analysing associative


relationships between a metric dependent Variable and one or more independent
Variables. (Sekaran & Roger, 2003). Therefore, regression analysis was used to
identify the impact of independent variables on the dependent variable of the study.
Customer satisfaction is the dependent variable and dimensions of reliability,
responsiveness, assurance and empathy, tangible are the independent variables. Table
4.18 presents the summary of the model.

4.5.1 Results of regression Analysis

Table 4.19: Results of Regression Analysis

Model Summaryb
Std. Error of the
Model R R Square Adjusted R Square Estimate
1
.850a .722 .712 .38211

a. Predictors: (Constant), Mean Tangible, Mean Reliability, Mean Empathy,


Mean Responsiveness, Mean Assurance
b. Dependent Variable: Mean Customer satisfaction

The R Square value is 0.722, it means 72.2% of the factors affecting on dependent
variable (Customer satisfaction) can be explained by the, Reliability, Responsiveness,
Assurance, Empathy and Tangible.

43
4.4.2 Regression analysis (ANOVA Table)
Table 4.20: Regression Analysis (ANOVA Table)
ANOVAa
Mean
Model Sum of Squares df Square F Sig.
1 Regression 54.539 5 10.908 74.706 .000b
Residual 21.026 144 .146
Total 75.565 149
a. Dependent Variable: Mean_Customersatisfaction
b. Predictors:(Constant),Mean_Tangible,Mean_Relibility,Mean_Emapthy,
Mean_Responsiveness, Mean_Assurance

According to the above table, significance value of above relationship in between


service quality dimensions and customer satisfaction about the services offered by
BIA was 0.000, which is less than 0.05. Therefore, researcher concluded that there is
an impact of service quality on customer satisfaction of BIA with 95% level of
confidence. Then, researcher can conclude this model is overall significant.

4.5.2 Regression Analysis (Coefficient Table)

Table 4.21: Regression Analysis (Coefficient Table)

Coefficientsa
Unstandardize Standardized
d Coefficients Coefficients
Std.
Model B Error Beta t Sig.
1 (Constant) .683 .182 3.748 .000
Mean Reliability .023 .079 .023 .284 .777
Mean Responsiveness .108 .102 .113 1.067 .288
Mean Assurance .230 .115 .253 1.999 .047
Mean Empathy .174 .088 .186 1.987 .049
Mean Tangible .301 .099 .322 3.037 .003
a. Dependent Variable: Mean Customer Satisfaction

44
According to the result indicated in the table 4.18, there is a positive relationship
between all independent (Reliability, Responsiveness, Assurance, Empathy, Tangible)
and dependent variables (Customer satisfaction). When determining mostly
influencing Service quality factors to determine the customer satisfaction, only Three
factors are significant at 95% confidence level such as assurance, empathy, and
tangible because it was demonstrated by the table 4.20 under the regression analysis.
within these three variables tangible is the most significant variable which influences
to customer satisfaction because its significant value indicates the nearest value for 0.
Reliability and responsiveness are not significant at 95% confidence level, and also
Those are not most influencing factor which influences to the Customer satisfaction
on the services offered by BIA.

4.6 Summary of the findings

Table 4.22: Results of Hypothesis Testing

Correlation Regression
analysis analysis
Hypoth Hypothesi
Variable/ Pears
esis s
on Signi Signi
Dimensions
Corr fican test Beta fican test
elatio ce ce
n

H1: There is a
relationship
between service Positive
0.843 0.000 - - -
quality and Accept
customer
satisfaction of BIA

45
H2: There is a
Positive
relationship
Positive
between Reliability 0.718 0.000 0.023 0.777 (Insignificant)
Accept
and customer
satisfaction of BIA

H3: There is a
relationship Positive
between Positive
0.780 0.000 0.113 0.288 (Insignificant)
Responsiveness and Accept
Customer
Satisfaction of BIA

H4: There is a
relationship
Positive Positive
between Assurance 0.819 0.000 0.253 0.047
Accept Accept
and Customer
Satisfaction of BIA

H5: There is a
relationship
Positive Positive
between Empathy 0.783 0.000 0.186 0.049
Accept Accept
and Customer
Satisfaction of BIA

H6: There is a
relationship
between Tangible Positive Positive
0.819 0.000 0.322 0.003
and Customer
Accept Accept
satisfaction of BIA

46
H1: There is a positive relationship between Service Quality and Customer
Satisfaction of BIA.

The Pearson correlation between the two variables was 0. 843.Therefore that indicates
Positive relationship between service quality and customer satisfaction. This
relationship was statistically significant as the correlation was at 0.01 levels(2-tailed).
The associated significant value (p) is less than 0.05. Therefore, hypothesis can be
accepted.

H2: There is a positive a relationship between Reliability and Customer


Satisfaction of BIA.

The Pearson correlation between the above dimension and variable was 0.718.
Therefore, that indicates a Positive relationship between reliability and customer
satisfaction. This relationship was statistically significant as the correlation was at 0.01
levels (2-tailed). The associated significant value (p) is less than 0.05. Therefore,
hypothesis can be accepted.

According to the regression analysis, there is a positive relationship between reliability


and customer satisfaction, but such relationship is insignificant. Because of p value is
0.777 and it is higher than 0.05. (Beta= 0.023, p>0.05). So, it indicates a positive but
insignificant relationship between reliability and customer satisfaction.

H3: There is a Positive relationship between Responsiveness and Customer


Satisfaction of BIA.

The Pearson correlation between the above dimension and variable was 0.780.
Therefore, that indicates a Positive relationship between responsiveness and customer
satisfaction. This relationship was statistically significant as the correlation was at 0.01
levels (2-tailed). The associated significant value (p) is less than 0.05. Therefore,
hypothesis can be accepted.

47
According to the regression analysis, there is a positive relationship between
responsiveness and customer satisfaction, but such relationship is insignificant.
Because of p value is 0.288 and it is higher than 0.05. (Beta= 0.0113, p>0.05). So, it
indicates a positive but insignificance relationship between responsiveness and
customer satisfaction.

H4: There is a Positive relationship between Assurance and Customer Satisfaction


of BIA

The Pearson correlation between the above dimension and variable was 0.819.
Therefore, that indicates a positive relationship between Assurance and customer
satisfaction. This relationship was statistically significant as the correlation was at 0.01
levels (2-tailed). The associated significant value (p) is less than 0.05. Therefore,
hypothesis can be accepted.

According to regression analysis, there is a positive relationship between assurance


and customer satisfaction, and that relationship can be acceptable because of p value
is 0.047 and it is less than 0.05. (Beta= 0.253, p<0.05). So, it indicates a positive and
significance relationship between assurance and customer satisfaction.

H5: There is a Positive relationship between Empathy and Customer Satisfaction


of BIA.

The Pearson correlation between the above dimension and variable was 0.783.
Therefore, that indicates a positive relationship between Empathy and customer
satisfaction. This relationship was statistically significant as the correlation was at 0.01
levels (2-tailed). The associated significant value (p) is less than 0.05. Therefore,
hypothesis can be accepted.

According to regression analysis, there is a positive relationship between assurance


and customer satisfaction, and that relationship can be acceptable because of p value
is 0.049 and it is less than 0.05. (Beta= 0.186, p<0.05). So, it indicates a positive and
significance relationship between empathy and customer satisfaction.

48
H6: There is a Positive relationship between Tangible and Customer Satisfaction
of BIA

The Pearson correlation between the above dimension and variable was 0.819.
Therefore, that indicates a positive relationship between Empathy and customer
satisfaction. This relationship was statistically significant as the correlation was at 0.01
levels (2-tailed). The associated significant value (p) is less than 0.05. Therefore,
hypothesis can be accepted.

According to regression analysis, there is a positive relationship between Tangible and


customer satisfaction, and that relationship can be acceptable because of p value is
0.003 and it is less than 0.05. (Beta= 0.186, p<0.05). So, it indicates a positive and
significance relationship between tangible and customer satisfaction as well as it shows
tangible is the most important factor which influences to the customer satisfaction
within these five dimensions.

4.7 Chapter Summary

This chapter was included data presentation and analysis. Both demographic factors
and the factors involeved independend and dependent variables were analysed.
Reliability of the dimensions was the required level. Regression analysis revealed the
impact of the relationship between the variables.Correlation analysis revealed that there
is a positive relationship between service quality and customer stisfaction about the of
services offerd by BIA.

49
CHAPTER 05
DISCUSSION AND CONCLUSION

5.1 Introduction

This chapter represents a brief summary of the, research objectives research questions
and methodology adopted in the analysis and the key findings. Based on the analysis,
findings have also been summarized along with the research objectives. Finally, some
recommendations, implications and suggestions for new for future researches have
been given based on the findings.

5.2. Discussion for Findings

The objectives of this study were to identify the service quality factors which influenced
to customer satisfaction about the services offered by BIA and examine the relationship
between service quality dimensions and customer satisfaction services offered by BIA.

The researcher carried out the correlation analysis and regression analysis with the aim
of achieving the objective of the current study. The correlation analysis and regression
analysis ware carried out to discover the relationship between service quality
dimension (Reliability, Responsiveness, Assurance, Empathy, Tangible)
and customer satisfaction.

In this study researcher has selected 150 responders as the sample and first part of the
data analysis chapter presented the information regarding demographic factors. The
sample of the research consist of majority with male (84) customers and there were 66
participants as the female responders.

There were six objectives of the study and the researcher has concluded the research
findings according to the objectives as follow.

50
• Objective 01: Identify the service quality factors influencing customer
satisfaction about the services offered by BIA

As the first objective of this study researcher has identified the service quality factors
which affect to customer satisfaction about the services offered by BIA as “Reliability,
Responsiveness, Assurance, Empathy and Tangible”. As well as finally, the researcher
found the positive relationship between service quality and customer satisfaction.

When considering all the five dimensions together the relationship between customer
satisfaction and service quality has a positive correlation with value of 0.843. That
indicates higher positive relationship between service quality and customer
satisfaction. Within that five dimensions’ assurance, empathy and tangible indicated
positive and significant relationship with customer satisfaction about the services
offered by BIA. Even If reliability and responsiveness show positive relationship with
customer satisfaction that two variables do not indicates significant relationship with
customer satisfaction.
A study of relationship between service quality and customer satisfaction among
commercial bank customer, it was found that all the service quality dimensions had a
positive relationship with customer satisfaction. Specially , tangible, assurance and
empathy scored much higher than the other dimensions. (Aliata, Ojera, & Mise, 2016).
So according to this study researcher concluded there is a positive relationship between
all the service quality dimensions and customer satisfaction. And also, according to the
findings of this study researcher could conclude assurance, empathy and tangible are
the most important factor for customer satisfaction based on the data analysis.
Therefore, findings of both studies were very similar.

• Objective 02: Identify the relationship between reliability and customer


satisfaction about the services offered by BIA

According to this study researcher concluded that there is a positive insignificant


relationship between reliability and customer satisfaction regarding the services
offered by BIA. Because the Pearson correlation between the reliability and customer
satisfaction was 0.718. Based on that value it indicates the positive relationship
between above mentioned dimension and customer satisfaction (Dependent Variable).
This relationship was statistically significant as the correlation was at 0.01 levels (2-

51
tailed). The associated significant value (p) is less than 0.05. Therefore, hypothesis can
be accepted.

However according to the regression analysis of this study, it demonstrated there is an


insignificant relationship between reliability and customer satisfaction regarding the
services offered by BIA because of p value is 0.777 and it is higher than 0.05. (Beta=
0.023, p>0.05). So, it indicated a positive but insignificant relationship between
reliability and customer satisfaction. Reliability is the most significant factor in
ensuring the customer satisfaction and discontent of clients. (Parasuraman et al., 1985).
but, as per this study reliability is not significant factor which influences to customer
satisfaction based on the sample of responders.

According to the KMO and Bartlett’s test that has been performed 0.737 KMO value
for reliability and performing the services right first time in the component matrix of
the reliability variable performed 0.840 KMO value which means the customers feel,
having services right first time is the most important item to create reliability. BIA has
sincere interest in solving problems performed 2 nd most important item in the
reliability and its factor value was 0.829. According to the sample, providing services
on time became as the 3rd important item in the component matrix of reliability which
performed 0.794 factor value. Responders in this sample in related, having the error
free records is the less important item that creates reliability. Because, that has been
performed 0.761 KMO value in the component matrix of reliability as the lowest value
relatively other items in the component matrix.

• Objective 03: Identify the relationship between responsiveness and customer


satisfaction about the services offered by BIA

Responsiveness is the willingness to assist customers and to supply prompt service.


(Parasuraman et al., 1985). As per the results regarding responsiveness and customer
satisfaction researcher could conclude that there is a positive insignificant relationship
between responsiveness and customer satisfaction about the services offered by BIA.
Because the Pearson correlation between the reliability and customer satisfaction was
0.780. based on that value it indicates the positive relationship between above
mentioned dimension and customer satisfaction (Dependent Variable). This
relationship was statistically significant as the correlation was at 0.01 levels (2-tailed).
52
The associated significant value (p) is less than 0.05. Therefore, hypothesis can be
accepted.

But, in the regression analysis it has performed there is an insignificant relationship


between responsiveness and customer satisfaction regarding the services offered by
BIA because of p value is 0.288 and it is higher than 0.05. (Beta= 0.113, p>0.05). So
it indicated a positive but insignificant relationship between responsiveness and
customer satisfaction. Responsiveness should be extended because that variable is very
essential (Parasuraman et al., 1985). As well as, responsive services will fulfil the
appropriate requirements or objectives of customers. (McCollough & Berry, 2000) .
However, according to this study responsiveness did not have a significant influence
on customer satisfaction on services offered by BIA based on the responses of selected
sample.

When focus on the KMO and Bartlett’s test that has been performed 0.680 KMO value
for responsiveness. And also, employees of the BIA providing a prompt service for
passengers performed 0.812 KMO value as the highest KMO value in the component
matrix of the responsiveness variable, which means the customers think, having the
prompt services from the employees of the BIA is most important item in the
responsiveness variable. According to the sample of the study the 2 nd most important
item in the responsiveness is employees of the BIA try to minimize the long queues of
passengers and its factor value was 0.807. as per the study 3rd important item in the
component matrix of responsiveness is employees of the BIA always willing to help
passengers and it performed 0.803 factor value. The less important item of the
responsiveness is employees of the BIA never too busy to respond the passengers’
requests. Because, that has been performed 0.795 KMO value in the component matrix
of responsiveness as the lowest value relatively other items in the component matrix.

53
• Objective 04: Identify the relationship between assurance and customer
satisfaction about the services offered by BIA

According to this study, it has demonstrated there is a positive and significant


relationship between assurance and customer satisfaction about the services offered by
BIA. Because the Pearson correlation between the assurance and customer satisfaction
was 0.819 and based on that value it indicates the positive relationship between above
mentioned dimension and customer satisfaction (Dependent Variable). This
relationship was statistically significant as the correlation was at 0.01 levels (2-tailed).
The associated significant value (p) is less than 0.05. Therefore, hypothesis can be
accepted.

As well as according to the regression analysis of this study, it performed there is a


significant relationship between assurance and customer satisfaction regarding the
services offered by BIA. Because of p value is 0.047 and it is less than 0.05. (Beta=
0.253, p<0.05). So, it indicated a positive and significant relationship between
assurance and customer satisfaction. Assurance has important connection between
customer perception of service quality and brand image (Aydin & Ozer, 2005). And
also, assurance has a beneficial effect on the picture of the brand. In the eyes of clients,
employees express the quality of service ( Athanassopoulos et al.,2001). So, according
to this study assurance also performed significant relationship between that dimension
and customer satisfaction on the services offered by BIA.

When considering the KMO and Bartlett’s test that has been performed 0.749 KMO
value for assurance. In this variable, customers feel safe in their transactions with BIA
performed the most important item of the assurance by showing the highest KMO value
as 0.854. According to the sample of the study, the 2nd most important item in the
assurance is “The behaviour of staff members of BIA create confidence in customers’
mind” as its factor value was 0.817. As per the study 3rd important item in the
component matrix of assurance is employees of BIA indicate professionalism with
customers and it performed 0.812 factor value. The less important item of the assurance
is employees of the BIA have proper and updated knowledge to answer passengers’

54
questions. Because, that has been performed 0.803 KMO value in the component
matrix of assurance as the lowest value relatively other items in the component matrix.

• Objective 05: Identify the relationship between empathy and customer


satisfaction about the services offered by BIA

Based on the data analysis part researcher could conclude empathy has created positive
and significant relationship with customer satisfaction regarding the services offered
by BIA. Because the Pearson correlation between the assurance and customer
satisfaction was 0.819 and based on that value it indicates the positive relationship
between above mentioned dimension and customer satisfaction (Dependent Variable).
This relationship was statistically significant as the correlation was at 0.01 levels (2-
tailed). The associated significant value (p) is less than 0.05. Therefore, hypothesis can
be accepted.

As well as according to the regression analysis of this study, it performed there is a


significant relationship between empathy and customer satisfaction regarding the
services offered by BIA. Because of p value is 0.049 and it is less than 0.05. (Beta=
0.186, p<0.05). So, it indicated a positive and significant relationship between empathy
and customer satisfaction. All five SQ dimensions are significantly affected to
determine the passenger satisfaction in the Sri Lankan airline passenger bag handling
section (PBHS) services (Sandaruwan & Pathmini, 2016). And also identified Empathy
was the most significant SQ factor among all others which was affected to the
Passenger satisfaction of the PBHS in Sri Lankan airline. But according to this study
empathy also performed significant relationship with the customer satisfaction and it is
not the most significant SQ factor among all the independent variables. However, both
studies confirmed that there is a significant relationship between empathy and customer
satisfaction.

According to the KMO and Bartlett’s test that has been performed 0.761 KMO value
for empathy. The component matrix of empathy shows the most important item of that
dimension is employees of BIA understand passengers’ needs. Because that has been
performed 0.852 KMO value as the highest factor value among the items of empathy.
And also, according to the sample of the study, the 2nd most important item in empathy

55
is “providing the individual attention for passengers under the 0.821 factor value. As
per the study 3rd important item in the component matrix of empathy is Operating hours
of BIA are convenient for passengers and it performed 0.813 factor value. The less
important item of the empathy is providing adequate facilities for passengers. Because,
that has been performed 0.806 KMO value in the component matrix of empathy as the
lowest value relatively other items in the component matrix.

• Objective 06: Identify the relationship between tangible and customer


satisfaction about the services offered by BIA

The results of the study revealed that there is a positive and significant relationship
between tangible and customer satisfaction about the services offered by BIA. Because
the Pearson correlation between the tangible and customer satisfaction was 0.858 and
based on that value it indicates the positive relationship between above mentioned
dimension and customer satisfaction (Dependent Variable). This relationship was
statistically significant as the correlation was at 0.01 levels (2-tailed). The associated
significant value (p) is less than 0.05. Therefore, hypothesis can be accepted.

According to regression analysis, it has been realized there is a significant relationship


between tangible and customer satisfaction about the services offered by BIA. Because
of p value is 0.003 and it is less than 0.05. (Beta= 0.322, p<0.05). So, it indicated a
positive and significant relationship between tangible and customer satisfaction.
Tangibility is linked to the company's physical features. This variable acts as a major
and one of the significant component in attracting more and more customers and thus
gaining competitive advantage over the rivals. ( Kayaman & Arasli, 2007). So, this
study also revealed tangible has a significant relationship with customer satisfaction.

KMO and Bartlett’s test of the study regarding tangible has been performed 0.858
KMO value and it is the highest factor value among the independent variables of this
study. According to component matrix of tangible, that shows the most important item
of the tangible is providing the proper parking facilities. Because that has been
performed 0.852 KMO value as the highest factor value among the items of tangible.
And also, according to the sample of the study, the 2nd most important item of tangible
is “Employees of BIA are smartly dressed, neat and appealing under the 0.851 factor
value. As per the study, the 3rd important item in the component matrix of tangible is

56
Interior of the BIA is pleasant for passengers and it performed 0.825 factor value. BIA
has good restaurant facilities and Physical premises of the BIA is clean and safety
performed 0.807 and 0.806 factor values respectively. And also, the less important
item of the tangible is there are proper signboards directing passengers in the airport.
Because, that has been performed 0.782 KMO value in the component matrix of
tangible as the lowest value relatively other items in the component matrix.

5.3 Limitations of the Study

This study focused on the impact of service quality on customer satisfaction of BIA.
But there are 04 airports in Sri Lanka. Bandaranaike International Airport and Mattala
airport are only doing the international passenger and cargo movements. Rathmalana
and Batticaloa is doing some domestic passenger and cargo movements. However, this
study only concerned the service quality and customer satisfaction of BIA. Therefore,
based on the satisfaction level about services offered by BIA, researcher cannot get an
idea about service quality and customer satisfaction of other domestic and international
airports of Sri Lanka. As well as, due to Sunday eastern attack, time and other resource
constraints researcher had to use 150 responders’ responses as the sample size of the
study. Under this study, researcher used the SERVQUAL model and it discussed about
only 05 service quality dimensions as the independent variables. but it may have more
than 05 independent variables which influences to customer satisfaction.

5.4 Contribution of the study

Even though there are several researchers in international context had researched
regarding service quality and passenger satisfaction on Airports, in Sri Lanka there are
so few such attempts to addressed to this research problem in a proper manner. So, this
study conducted to provide an answer to those questions in the sense of the Sri Lankan
context. passengers, researchers, service providers, civil aviation authority,
management of the BIA, government of Sri Lanka and other decision makers can use
this study for their decision-making purposes. This study is to disclose the relationship
between the service quality and passenger satisfaction about the services offered by
BIA. Relationship between the service quality and passenger satisfaction of BIA or
airline industry researches has been very rarely done by scholars in Sri Lanka.
Therefore, this study is an attempt to fulfil that gap. As well as the researcher tested the
57
SERVQUAL model for developing country airport to measure the customer
satisfaction. That also was a new contribution for Sri Lankan context airport sector and
using the SERVQUAL model for service quality was another contribution because
there were several models to measure the service quality such as “SERPERF, Nordic
model, Multilevel model, Hierarchical model.” In this study researcher has developed
the questionnaire by using google forms and distributed that forms using electronic
method such as Facebook, Messenger, WhatsApp and Viber. Use of that electronic
method for data collection for this kind of study also may be a new contribution.

5.5 Conclusion

According to the analysis part it could be able conclude that there is a relationship
between service quality and customer satisfaction on the services offered by BIA.
Further it was found that the dimensions of service quality namely reliability,
responsiveness, assurance, empathy and tangibles are relating with customer
satisfaction of the services offered by BIA as well as there was a positive relationship
could be found between all the five dimensions and customer satisfaction. And also,
according to the correlation analysis, all the relationships were significant at the 0.01
significant levels. Therefore, it can be concluded that the service quality directly and
positively impacts on customer satisfaction of services offered by BIA.

With the results of this study the researcher could conclude tangible is the most
important service quality factor which influencing to customer satisfaction about the
services offered by BIA rather than other independent factors in the research model.
Because, findings of the study indicated that the highest significant association existed
between tangible and customer satisfaction under the 0.003 significant value.
Assurance and empathy also were the significant SQ factors affect to the customer
Satisfaction about the services offered by BIA as that factors performed 0.047 and
0.049 significant values respectively.

58
5.6 Recommendations

Study results recommended that tangible, assurance and empathy play a crucial role for
customer satisfaction about the services offered by BIA. within that factor’s tangible
can be identified as the most important factor which influences customer satisfaction.

Tangible: Specially involve indicators are proper parking facilities, clean and safety,
physical facilities visually appealing, smartly dressed, neat and appealing, restaurant
facilities and proper signboards. If BIA want to improve their service quality,
researcher can recommend following actions for them

• Always try to provide proper parking facilities for BIA passengers


• Should improve the cleanliness and safety of physical premises of BIA
• Encourage the employees of BIA are smartly dressed, neat and appealing
• Enhance the restaurant facilities of BIA premises
• Improve the proper sign board facilities in BIA

Assurance: Specially involve indicators of assurance are creating confidence in


customers’ mind, having proper and update knowledge for answer the passengers’
questions, indicate professionalism with passengers, create safe feeling with the
transactions of customers. If BIA want to improve their service quality, researcher can
recommend following actions for them.

• Researcher recommends that, BIA should improve the security of their customer’s
transactions.
• BIA staff should be developed their professionalism
• Try to enhance the awareness regarding the airport of BIA staff with providing the
proper and updated knowledge

59
Empathy: It has involved with individual attention, convenient operating hours,
understanding of customers’ needs and providing adequate facilities. According to
this study that has proved empathy also a significant factor which influences to services
offered by BIA. Therefore, researcher recommend BIA needs to get following actions
to improve this service quality factor.

• Pay individual attention for passengers of BIA carefully


• Always try to enhance the ability regarding the understanding of customers’
requirements as soon as possible
• Make sure the flight times are on time with the convenient operating hours
• Make sure, to provide the enough facilities in the BIA premises

Reliability and responsiveness also indicated the positive relationship with customer
satisfaction on services offered by BIA. But that relationship was not a significant
relationship. So, researcher recommend BIA should consider tangible as the most
important factor which influences to customer satisfaction on services offered by BIA
and should provide huge improvement on quality of tangible dimension. as well as
assurance and empathy also were the important factors which influences to customer
satisfaction on services offered by BIA. Therefor BIA should be developed that
particular service quality factors. While providing the improvements on tangible,
assurance and empathy BIA should enhance the quality of other factors such as
reliability and responsiveness because that service quality factors indicated the positive
relationship with customer satisfaction on services offered by BIA.

60
5.7 Implications

As an overall, passengers are satisfied with the services offered by Bandaranaike


International Airport it has revealed that the premises of BIA must be changed from
time to time in order to change the monotonousness of the environment. Specially that
promises of BIA must be changed with improving of tangible service quality dimension
because it was the most significant factor which influences customer satisfaction on
services offered by BIA.

Managers of BIA must concern, to develop the proper parking facilities as most
important item in the tangible dimension. Wash rooms and sanitary facilities must be
always maintained clean. They should concern the safeness and cleanliness of physical
premises of BIA. So, that airport can be converted to a more attractive place for
passengers by adding more plants to the passenger waiting areas because more plants
and green will bring liveliness to the areas. By adding those things, it will be a reason
for improving the pleasant interior for passengers. Employees of BIA having smartly
dressed, neat and appealing had the highest impact for customer satisfaction as the item
of tangible dimension. Therefor HRM division of BIA should encourage the
employees’ physical appearance with improving the smart dress code, neat and
appealing of staff members. Restaurant facilities also were the major item in tangible
dimension which affects to customer satisfaction of BIA. based on that findings of the
study management of the BIA should enhance service quality of restaurant facilities
with improving their quality of the foods and beverages, capacity and space of
restaurants or adding new restaurants for full fill the passengers’ requirements. Proper
signboards facilities also an important factor in tangible dimension. So, it will helpful
to passengers to identify the exact place and help them to get to the right place.
Therefore, management should make sure there are proper sign boards directing
passengers in the airport.

Assurance and empathy were also found to be other significant factors in overall
passengers’ satisfaction on services offered by BIA. because they could have a
determinant effect on customer satisfaction of BIA regarding the service quality. So,
this output is very essential to HR manager of BIA. Because HR manager should
execute the training and development programmes for employees of BIA; to enhance

61
the ability of making trust and loyalty on customers’ mind and ability of providing the
level of something that individualized services on behalf of customers regarding the
services offered by BIA. After, considering all of this situation’s management of the
BIA, government of Sri Lanka, Politicians, and other government authorities must
develop the items of service quality dimensions of tangible, assurance and empathy by
investing more capital and other resources to provide the better service quality for BIA
passengers.

5.8 Suggestions for Future Research

This research study is limited to the BIA and this research limited for 150 responders’
sample size area. the target sample is not enough to represent customer satisfaction
level of whole passengers of BIA. Therefor future researchers can use large sample
size to identify the impact of service quality on customer satisfaction of BIA.As well
as in this study there were only 22 foreign passengers as the responders of the sample.
But future researchers can adopt more foreign passengers for their sample. This study
has followed the SERVQUAL model to identify the relationship between service
quality and customer satisfaction and another future researcher can apply another
different model (SERPERF, Nordic Model, Multilevel Model, Hierarchical Model) or
different dimensions (7 dimensions of service quality,10 dimensions of service
quality) for the study. Future researchers can develop this research not only limited to
the Sri Lanka but also, they can try to compare with the foreign airports.

5.9 Chapter Summary

Accordingly, this chapter examined the analysis and discussion of the relationship and
impact between service quality and customer satisfaction about the services offered by
Bandaranaike International Airport (BIA). This study examined the tangible,
assurance and empathy are significantly and positively impact to the customer
satisfaction about the services offered by BIA according to the regression model.
Furthermore, this chapter provided the necessary evidence to prove the outcome of this
study from previous studies. It shows the evidences that the researcher achieved the
research objectives successfully.

62
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68
ANNEXURE / APPENDIX

01.Questionnaire

IMPACT OF SERVICE QUALITY


ON CUSTOMER SATISFACTION OF BANDARANAIKE
INTERNATIONAL
AIRPORT (BIA)
Dear Responder,

I am D.G.E.K.P.K. Dambagolla, a final year undergraduate of the Department of


Commerce, Faculty of Management Studies and Commerce, University of Sri
Jayewardenepura, following the Degree Program B. Com (Special). I am currently
engaged in a research study on assessing the “Impact of Service Quality on Customer
Satisfaction of Bandaranaike International Airport (BIA)”.

The purpose of this questionnaire is to get information of passengers, on the


perspective of analysing the passenger satisfaction. Information provided by you will
be treated strictly confidential and will be used only for academic purposes. I would
be very much grateful, if you could kindly spend your valuable time to fill in this
questionnaire which will take around 10-15 minutes.

Thank you.

D.G.E.K.P.K. Dambagolla
Department of Commerce
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura

69
1.General Introduction

Please mark the relevant answer.

1. Gender

Male

Female

2. Please indicate the age group that you fall in to following

18-25 years

26-35 years

36-49 years

Above 50 years

3. What passenger type do you belong?

Local

Foreign

4. What is the purpose of travelling via BIA?

For Tourism

For Education

For Business

Other

70
2.Service Quality

The following statements deal with the service quality experienced in BIA.
Please show the extent of the perceived service quality of BIA. Please mark the
relevant answer

1- Strongly Disagree
2-Disagree
3- Neutral
4- Agree
5-Strongly Agree

INDEPENDENT VARIABLE: SERVICE QUALITY

01.Reliability
5. BIA provides services on time
6. BIA insists on error free records
7. BIA has sincere interest in solving
problems
8. BIA performs the services right first
time
02.Responsiveness
9. Employees try to minimize the long
queues of passengers
10. Employees of the BIA provide
prompt service for me
11. Employees of the BIA always willing
to help me
12. Employees of the BIA never too busy
to respond my requests
03.Assurance

13. The behaviour of staff members of


BIA create confidence in my mind
14. Employees of BIA have proper and
updated knowledge to answer my
questions
15. Employees of BIA indicate
professionalism with me

71
16. I feel safe in my transactions with
BIA
04.Empathy

17. BIA provides individual attention to


me
18. BIA provides adequate facilities for
me
19. Operating hours of BIA are
convenient for me
20. Employees of BIA understand my
needs
05.Tangible

21. BIA provide proper parking facilities

22. Physical premises of the BIA is clean


and safety
23. Interior of the BIA is pleasant for me
24. Employees of BIA are smartly
dressed, neat and appealing
25.There are proper signboards directing
me in the airport
26. BIA has good restaurant facilities

DEPENDENT VARIABLE: CUSTOMER SATISFACTION

27. I have a positive impression about


BIA to say others
28. I recommend BIA for my friends and
relatives
29. I prefer to choose BIA as a transport
hub again
30. As a BIA passenger I have strong
preference regarding this airport

72
31. If you have any comments regarding the overall experience of BIA please
mention below.

………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
……………………………………………………………………………………....

THANK YOU!

73
02.Google Form

74
75
76
77
78
79
03. Reliability analysis tables for each variable.

Independent Variables (SERVQUAL Model Dimensions)

1. Reliability

Reliability Statistics
Cronbach's Cronbach's Alpha Based on
Alpha Standardized Items N of Items
.819 .820 4

2. Responsiveness

Reliability Statistics
Cronbach's Cronbach's Alpha Based on
Alpha Standardized Items N of Items
.839 .839 4

3. Assurance

Reliability Statistics
Cronbach's Cronbach's Alpha Based on
Alpha Standardized Items N of Items
.818 .818 4

80
4.Empathy
Reliability Statistics
Cronbach's Cronbach's Alpha Based
Alpha on Standardized Items N of Items
.841 .841 4

5.Tangible

Reliability Statistics
Cronbach's Cronbach's Alpha Based
Alpha on Standardized Items N of Items
.902 .903 6

6. Customer Satisfaction (Dependent Variable)

Reliability Statistics
Cronbach's Cronbach's Alpha Based
Alpha on Standardized Items N of Items
.839 .841 4

81
82

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