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Technology in Society 43 (2015) 219e230

Contents lists available at ScienceDirect

Technology in Society
journal homepage: www.elsevier.com/locate/techsoc

Services innovation impact to customer satisfaction and customer


value enhancement in airport*
James K.C. Chen*, Amrita Batchuluun, Javkhuu Batnasan
Asia University, Taichung, Taiwan

a r t i c l e i n f o a b s t r a c t

Article history: Public transportation service is a crucial issue in every country; especially air transportation. It requires
Received 1 January 2015 convenient, fast, comfortable, and reliable service from air companies. This research paper aims to create
Received in revised form an evaluation model for service innovation impact, customer satisfaction and customer value
15 May 2015
enhancement in an airport. This paper uses means-end theory to investigate service innovation factors
Accepted 19 May 2015
and examines influence to the relationship between customer satisfaction and customer value. 300
Available online 2 July 2015
samples of data were collected through online survey and questionnaire within two months periods. The
result shows that customer value was influenced by customer satisfaction and service innovation. This
Keywords:
Customer satisfaction (CS)
study conducted analysis on innovative services such as self-check-in kiosk, X-ray, social media
Customer value (CV) communication, and micro-hotels in an airport. Result indicates all four services revealed a positive
Airport service moderation effect. The security check was the most important evaluation factor in an airport service.
Service innovation (SI) © 2015 Elsevier Ltd. All rights reserved.

1. Introduction Xerfi report, the United States of America leads the global airport
industry with the highest number of airports. Most airports in the
Air transport plays an important role in moving people and/or world are located in European countries, North America and Asia
the transportation of products from one location to another, [7]. According to the World Factbook [8], there are a total of 43,794
whether domestic or international travel. Additionally, air trans- airports in the world. The top 10 airports by passenger volume are
port can be crucial when the origin and final destination are stated in Table 1:
separated by difficult landscape. A country's economy gains large The air transport industry efficiently improves the economic
amount of incomparable benefits from airport industry. The airport activity of other businesses that enables a catalyst for world trade;
and air transport promote an improved quality of life and help positively influencing domestic and international tourism, and
improve living standards. The most important contribution of the contributes to global productivity. Moreover, it increases the effi-
air transport industry is its impact on business growth in the global ciency of the supply chain, facilitates access to international and
and national economy. domestic markets and investments, and stimulates innovation by
The worldwide market for airport services exceeded $102 billion providing consumer welfare benefits.
in 2012, as recorded 3% annual growth during four preceding years Many scholars highlight customer value and its management,
according to market line reports. Market volume increases almost which is the next source of competitive advantage for modern
2% over the same four-year period. Entry and exit costs are high in companies [1e3]. In accordance to, this paper focuses on the
this market, and at the national level, only a few large companies following research questions (1) what are the most influential
dominate and concentrate to the airport industry. According to the factors to gain customer satisfaction? (2) what is the relationship
between customer satisfaction and customer value? (3) what is the
moderating effect of service innovation impact to enhance
* customer value?
The authors thank the peer-reviewers, Arch G. Woodside, Boston College, and
two Technology in Society reviewers, for their valuable comments of an early Highlighting the customer perception in the airport industry
version of this manuscript. provides competitive advantages for airports to increase service
* Corresponding author. Department of Business Administration, Asia University, innovation. Zeithaml [4] stated that the means-end model and
Taichung 41354, Taiwan.
synthesis of evidence examine consumer perceptions of price
E-mail addresses: kcchen@asia.edu.tw (J.K.C. Chen), amrita_mn@yahoo.com
(A. Batchuluun), javhuu@gmail.com (J. Batnasan). quality and value. This paper uses means-end theory to investigate

http://dx.doi.org/10.1016/j.techsoc.2015.05.010
0160-791X/© 2015 Elsevier Ltd. All rights reserved.
220 J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230

Table 1 Opportunities can be defined as the potential for interaction and


TOP 10 airport by passenger volume. exchange. Accessibility can be defined in terms of potential or in
Airports Passengers terms of activity (opportunities that are reached). Even people who
1. Atlanta (ATL) 95,672,104
don't currently use a particular form of access to the airport may
2. Beijing (PEK) 81,908,740 value having it available for possible future use (called option
3. London (LHR) 70,051,902 value). Access is the goal of the most transport activities, except the
4. Tokyo (HND) 67,824,747 small portion of travel for which mobility is an end in itself (e.g.,
5. Chicago (ORD) 67,124,607
jogging, cruising, leisure train rides). Airport accessibility (AA) in
6. Los Angeles (LAX) 63,849,335
7. Paris (GDG) 61,478,475 this paper will be discussed as how passengers rate the ease of
8. Dallas/Fort Worth (DFW) 58,887,570 leaving a terminal and dropping off passengers in front of a ter-
9. Dubai (DXB) 58,392.171 minal; overall parking; the direction of traffic flow on airport
10. Jakarta (CGK) 57,839,056
grounds and the attractiveness of airport grounds [9].
Source: The World Factbook [8]. Airport terminals sometimes have difficult or complicated ac-
cess by public transit, particularly for people carrying heavy loads,
people with children, or even people with disabilities. Also, it is
suitable products and services innovation to achieve the customer often difficult to obtain accurate information on alternative modes
satisfaction and customer value at the airport. According to the for access. However, different countries have different regulations
definition given by Van Der Haart, Kemp, & Omta [5], the customer on transport accessibility. Some countries have their own regula-
value concept assesses the value of a product or service, which is tions or norms to encourage disabled people to access particular
offered to a customer while taking its tangible and intangible fea- destinations easily. Due to this difference, accessibility of the
tures into account. Every airport management requires under- building by disabled travelers varies.
standing the nature of customer satisfaction and customer value to Airport accessibility can include phone numbers, e-addresses,
improve the quality of service at the airports, which as “what is bus service, inter-terminal buses, car rentals/courtesy vehicles,
received and what is sacrificed by a customer” [6]. taxicabs/shuttle services, airport parking, elevators in terminals so
A survey-based quantitative research method was used to on. Within the airport itself, disabled travelers should have ease of
collect data. A total of 300 passengers were involved in the survey, access between check-in counters, the security check points and
who received served in different airports. This study explores the the boarding terminals. This is usually accommodated through lift
relationship between certain factors (airport accessibility, the se- and ramp access.
curity check and terminal facilities), customer satisfaction and the
effect or influence of moderating variable, service innovation, on 2.2. Security check
the relationship between customer satisfaction and customer
value. The structural equation model (SEM) was employed to Gkritza et al. [10] point out that an airport security check (SC)
analyze relationships between variables and examine the hypoth- refers to techniques and methods used in protecting passengers,
esis testing. staff and the aircraft from accidental or malicious harm, crime and
This article has the following structure. Section 2 provides the other threats. Every day, large numbers of people pass through
theoretical background for support of this research. Section 3 de- airports that may cause them to be potential targets for terrorism
scribes the research method and process. Section 4 presents data and other forms of crime just because of the number of people
analysis and discussion. Section 5 concludes and offers recom- gathered in a particular location. Similarly, the high concentration
mendations for future research. of people in a large airline may cause a potential high death rate
because of attacks on the aircraft, and/or hijack of an airplane. A
2. Theoretical background lethal weapon may provide the means for terrorism, regardless of
whether or not they succeed, due to the documentation of their
Scholars dig deeper into the essence of customer-focus, so that high profile following various attacks and attempts around the
the obvious questions have emerged as follows: What do we need globe. Airport security can be evaluated by passengers and how
to address to increase the number of customers at the airport [7]? they rate the amount of time required for a security check, the
and, How can we win customers in the competitive business professionalism of a security staff, and confidence in the security
environment [3]? These questions lead to discussion, which results process to make the passengers feel safe.
in the concepts of customer satisfaction and value. Yet, its versa- Airport security attempts to prevent any threats or potential
tility and diverse interpretations to this day remains a relatively dangers from arising or entering the country through the airport. If
fragmented topic in management and marketing literatures of airport security screening is high, then chances of any dangerous
airport services. An airport must increase its customers' trust situations, illegal items or threats entering into an aircraft, an
through a few distinctive issues, which are airport accessibility, the airport and country are greatly reduced. Therefore, airport security
security check, and terminal facilities both for arrival and departure serves several purposes: to protect the airport and country from
terminals that reflect customer satisfaction and customer value any threatening events, and to reassure the safety of all traveling
[10e13]. Moreover, investigation effects of service innovation people.
concerning suitable products/services at the airport is useful for Despite these fact, passengers may still find it hard to accept
customer experience. It is based on a key paper “innovation as the delays at the airport security screening checkpoints. There still
core competency of a service organization [13]”. These innovation remains a clear correlation between customer satisfaction, wait
events include services of self-check-in kiosk, X-ray, social media times and perceived quality in security [10]. Passenger satisfaction
communication, and micro-hotels. reports were reviewed to identify the crucial issues that passengers
consider when determining whether their service experience by
2.1. Airport accessibility the airport was satisfactory. The sources of passenger satisfaction
data are airline and airport passenger opinions based on the World
Accessibility refers to the ease of reaching goods, services, Airport Awards and the North America Airport Satisfaction Study.
activities and destinations, which together are called opportunities. “Queues at curbside, check in, and security” are common issues that
J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230 221

had a positive or negative effect from a number of passengers on requirements of the access system architecture. The integration of
their airport experience. different functions, such as electronic payment, digital signature
Airport check-in uses service counters at commercial airports can enable electronic transactions that allow “one-stop-services or
for air travel. The check-in is normally handled by an airline com- non-stop-services”.
pany or a handling agent working on behalf of an airline company. When consumers used a self-service transaction process [26],
Passengers usually first hand over baggage that they do not wish or they felt spontaneous and enjoyed being spontaneous. However,
are not allowed to carry on an aircraft's cabin and then receive a for other consumers, the service technology transfer process
boarding pass before they can proceed to board their aircraft. brought their anxiety and doubts; so that consumers consider the
Check-in is usually the first procedure for a passenger when emotional cost of new technologies, and whether it is worthwhile
arriving at an airport, as airline regulations require passengers to or not [27]. There are many studies of self-service technology [24],
check-in by certain times prior to the departure of a flight. The time which mostly focused on the self-service technology attributes of
between check-in and departure spans from 40 min to 4 h, the service quality performance, the impact of service providers,
depending on the destination and the airline. During this process, and the impact factors of the performance of self-service technol-
the passenger can request seating preference, inquire about flight ogies (SSTs).
or destination information, make changes to their reservations,
accumulate frequent flyer program miles, or pay for upgrades [11]. 2.3.2. X-ray
X-ray scanners take time, as they need to set up the passenger in
2.3. Services innovation an appropriate position, capture the image, have the image read by
remote security personnel, and then relay results back to personnel
There are several definitions for the concept of service innova- at the security checkpoint. For any given individual, this does not
tion (SI) and all of them relate to performance improvement and take long time, but in major airports during peak travel times, it
capacity strengthening of the firm to compete with other firms. In could lead to major delays. Many airports have already found their
many cases, provision of service can be more valuable to the security checkpoints overwhelmed with a concern that additional
company than the selling products since products tend to become delays could increase pressure on security personnel and make
commodities at a faster pace [12,13]. Service innovation means them less effective. Backscatter X-rays used in security checkpoints
something new and beneficial for targeted groups [14,15] that are much weaker than medical x-rays. These rays don't go through
create values for current and future customers [16]. The concept flesh and bones. Instead, they penetrate clothing and about an inch
can encompass a variety of areas and different levels of interactivity into the body, where the body tissues scatter and ricochet the rays
in the development of the whole service process [17]. Conse- back toward the sensor.
quently, to be considered successful in service innovation, all
engaged parties must be efficient, since bottlenecks or barriers in 2.3.3. Use of social media by airports
certain areas of the process can undermine the effectiveness of the Airports are increasingly embracing social media as a means of
service innovation. Studies related to service innovation were un- communication [28] and there are now numerous examples of
dertaken by Refs. [18], embedding various ways of looking at ser- airports offering the opportunity to ‘Like’ them on Facebook,
vice innovation, such as procedures to manage service innovation ‘Follow’ them on Twitter and ‘View’ videos and photos about them
[19], processes for implementing service innovation [20] and on YouTube and Flickr. In recent years, a number of airports have
user-involvement in innovating services [21]. broaden the use of social media. And yet, it still appears to be biased
Customer orientation is a strategy directly related to the concept towards larger airports and airports that are located in North
of level of service (LOS) at the airport [22]. Although the use of the America or Europe [30]. There may also be differences according to
concept is established in the private sector, the researcher believes, the way in which an airport is owned and operated because the use
it is necessary that state-owned airports also use it since their of social media is to some extent a reflection and a driver of the
mission is to serve the population well. Customer-focused com- business transformation [29].
panies are always looking to create a continuous flow of customer Social media can be defined as “the group of Internet-based
value [23], without disregarding the user's perspective [24], a applications that build on the ideological and technological foun-
framework that is equally relevant to state-owned airports. There is dations of Web 2.0, and that allow the creation and exchange of
service innovation events in the airport as follows: user-generated content” [29,31]. During the last decade, the growth
of social media usage has been remarkable. According to the
2.3.1. Kiosk respective sites, the number of users in 2013 exceeded 800 million
The adoption of self-service is gaining importance for two main on Facebook, 200 million on Twitter and 100 million on LinkedIn.
reasons, which are to increase efficiency and to reduce costs and YouTube has 490 million unique users worldwide per month with
labor. Self-service puts control into the hands of customers. It has about 92 billion page views each month.
been observed that customers are more open to experiment with Most social media applications are traditionally designed for,
kiosks [24,25]. Other industries such as retail, finance, hotels are and used by, friends or people with mutual interests, as a means of
considering use self-service kiosks. Even libraries use self-service connecting, communicating and interacting with each other [32].
technologies to loan books. Customers are ready to handle bigger However, an increasing number of businesses have a social media
transactions with kiosks, thus many self-service models have been presence, offering direct links from their corporate websites, and
tested [25]. use it to promote their brands and support the creation of brand
There is a new technology called self-service technology (SST). A communities [31]. Worldwide expenditure of businesses on online
self-service technology is an object which allows customers to social network advertising, including building and maintaining a
interact with self-service software (SSS). Such kiosks can be found social media presence, is estimated to have reached US$6 billion in
in various locations, and they typically employ software in a hard, 2011. This includes general social networking sites where social
protective case. A self-service kiosk (SSK) is also a computer placed networking is the primary activity. Facebook alone have attracted
at a table or desk in an accessible area for customers to use. Self- US$4 billion [33].
service access that is internet-based must meet specific re- Academic literature increasingly calls for a need to investigate
quirements of information technology as well as the general how best to manage the social media mix and whether it provides a
222 J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230

return on investment [34]. There have also been a number of high Situated in Terminal One of the Dubai International Airport,
profile examples of misuse by businesses and/or their employees. snooze cube offers compact and soundproof rooms complete with
For instance, Belkin was caught offering money to anybody who bed, touch screen TV and internet access. All snooze cubes are
posted a 100% positive review of their products on Amazon. Hon- connected to the airport's flight information system to ensure that
da's manager of product planning was caught secretly posting passengers do not miss their flights [35].
positive reviews about one of their new cars on Facebook stating
that he would “get this car in a heartbeat”. 2.4. Customer satisfaction

In many cases, satisfaction is known to be a great value in un-


2.3.4. Airport micro hotels derstanding customer's perception and evaluation [36]. Many
Airports are no place to sleep, as any weary traveler who has scholars try to make definition and theoretical framework about
tried to grab a few minutes shut eye during a layover can attest [35]. how services should be performed and how to delivery service
However, it may be changing, thanks to a new breed of short-stay, quality to improve customer satisfaction (36e40). Customer satis-
pay by the hour micro-hotels popping up in airport terminals faction (CS) is customer's feeling on received products and services
around the world. Based loosely on the concept of the Japanese [36,40]. This feeling can be a reaction to an immediate use situation
“capsule hotel,” these cabins and boxes allow sleepy travelers to or an overall reaction to a series of use situation experience.
seal themselves off from the surrounding commotion for a 30 min Satisfaction is strictly tied to the customer's perception or product
power nap or a solid night's sleep without having to leave the performance. Next, perceived product (or service) performance is
terminal for a hotel. Some even contain toilets and showers. compared with a standard representing the service performance
Moreover, they are spreading beyond the airport terminal. Yotel, that the customer expected [39].
which operates short-stay “cabins” in airports in London and It is said that “The expectancy disconfirmation with perfor-
Amsterdam, has also opened a hotel in Manhattan based on a mance (EDP) framework [36] is one of the most common theories
similar concept, while Sleep-box, which has a demonstration of consumer satisfaction”. A basic assumption is that satisfaction or
model in Moscow's Sheremetyevo Airport, will open 60 of its units dissatisfaction results from a comparison of expectations with
in downtown Moscow in a matter of weeks. Here are five of the best actual performance. The disconfirmation effect, which is separated
micro-hotels proving that size is not everything. to the effect of expectations and performance, has been described
as the subjective difference between expectation and performance.
(a) Yotel Confirmed or disconfirmed expectations affect whether one feels
satisfied or dissatisfied with the service and implies an evaluation
Yotel has operated its pod hotels in London's Heathrow and of better or worse than expected. Thus, satisfaction often starts
Gatwick airports since 2007 and in Amsterdam's Schiphol since with the expectations a person has. Expectations seem to be based
2008. Yotel also operates a hotel based on a similar concept in New on and influenced by personal needs, word-of-mouth communi-
York City, with 669 slightly larger rooms. Yotel marketing director cation, and past experiences [36,39,40].
Jo Berrington said the airport cabins had very high occupancy rates, The comparison of perceived performance can be compare with
and the company planned to roll out its operations in other airports the comparison of the standard result in disconfirmation, or the
soon [35]. difference between what was expected and what was received [37].
It means that an area immediately surrounding the comparison
(b) Napcabs standard is labeled the “zone of indifference”. This zone indicates
that, the customer's perspective, there may be some latitude within
Napcabs are 4-square-meter, self-service booths operating in which product or service performance may vary but will still be
Terminal two of Munich Airport. Six cabins are currently in oper- evaluated as “meeting expectations”.
ation, with plans to add more in the coming months. They contain a
bed, desk, air conditioning, internet access and a TV program [35]. 2.5. Customer value

(c) Sleep-box Value to the seller is realized when a transaction is finalized, i.e.
value equals the money paid for the product. This is well-reflected
The cozy, 4-square-meter sleepbox contains a maximum of in Porter's definitions of value: “In competitive terms, value is the
three bunk beds, bedside tables, electrical outlets, and reading amount buyers are willing to pay for what a firm provides them”
lamps and can be equipped with a television and alarm clock. A [38]. Value in management literature can, on a general level, be
model Sleepbox was installed in the Aeroexpress terminal of divided into three categories: shareholder value, stakeholder value
Moscow's Sheremetyevo Airport in August, and will be put into and customer value. From these values, customer value has been
commercial use in coming weeks when 60 are installed for use in argued and shown to be the fundamental source of the other two
downtown Moscow. The Sleepbox's designers envisage the units value forms [41e43]. Even though maximizing shareholder value
will also be used in train stations, shopping malls and exhibition has been the axiom of financial economists as the basis for success,
centers [35]. the fundamental value is created in the relationship to the
customer. In the end, shareholder value is derived from profitable
(d) Minute suites customer relationships [12], not from the stock market.
Customer value success is a concept of continuing interest in the
Minute Suites provides private rest spaces for travelers to relax, academic world and a plethora of research, which has emerged
nap or work inside the security areas at two U.S. airports. Atlanta's highlighting its importance in driving success as well as its rela-
HartsfieldeJackson International Airport has hosted the micro- tionship to other central concepts, such as customer satisfaction,
rooms since late 2009. Philadelphia International Airport also loyalty and retention [46]. Currently, there is no widely accepted
installed 13 suites in 2011. way of pulling the diverse views together and build a solid ground
to further develop the research upon [44,45]. The use of the concept
(e) Snooze cube of value across different fields further complicates finding a
J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230 223

consistent definition “value as a concept is used in e.g. finance, In general, customer perceived value consists of two di-
management, economics, ethics, justice, aesthetics and marketing, mensions: product oriented perceived value and relationship-
and further within marketing in connection to pricing, CRM and oriented perceived value. Product oriented value, which is charac-
consumer behavior” [46]. Ulaga [47] aptly stated “The fundamental teristic of the goods-dominant logic (GDL), limits the value trade-
question of how to conceptualize value still merits further inves- off to the transaction. Product oriented perceived value may thus
tigation”. A further issue that may complicate the discussion of be the difference between perceived quality and price, but may also
customer value is when the concepts “value” and “values” become be extended to include the difference between intrinsic indicators
mixed. To start off, the researcher will define the concept of inherent to the product itself. Relationship-oriented perceived
“values” and clearly differentiate it from our notion of “value”. value broadens the scope to service-dominant logic (SDL) to
include the relationship, the process and the risk components of
the offering [51]. According to Ravald and Gro € nroos [53] these
2.5.1. Scholarly concepts of customer value components become more important the longer the customer
Customer value (CV) are identified by some central, generally supplier relationship endures, and must be included in the evalu-
agreed characteristics surrounding value need to be clarified. Value ation of the transaction as benefits and sacrifices of preserving the
agreed in management literature [3,4,44,46,48,49] is as follows: relationship.

* Subjective: Customer value cannot be determined in one exact 3. Research methodology


figure or amount, since “beauty is always in the eyes if the
beholder.” 3.1. Research framework and hypotheses
* Customer focused: Customer value is determined by the cus-
tomer's perception in the market place, not by the supplier's Based on literature review, the conceptual framework (Fig. 1)
assumptions in the factory. below is constructed as follows: (1) dependent variables are
* Evolving over time: The customer's perception of value may customer value (CV) and customer satisfaction (CS); (2) moderating
change over time both in terms of the value elements included variables is service innovation (SI); and (3) independent variables
as well as in terms of the relative value given to different are airport accessibility (AA), the security check (SC) and terminal
elements. facilities (TF), to test significance of relationships among their
* Contextual: Customer value is linked to the use of some product, theoretical statements in airport passengers.
service or solution. Based on this theoretical framework and the purpose of this
study, five hypotheses are developed to answer research questions.
There are two contrasting scholar's opinionsethe view that The hypotheses are summarized in Table 2.
defines value as consisting of what the recipient receives, and the
view that sees value as a trade-off between what is received and 3.2. Research design
what is given up. What the customer receives (e.g. cost savings) are
the named benefits, and what the customer gives up (e.g. price) In accordance with the developed hypothesis the questionnaire
sacrificed. Even though these scholars continue to debate over constructed by referring to the previous research which focused on
what the definition of customer value should be, they discuss in customer value through customer satisfaction. The questionnaire's
essence, two completely different things. purpose is to identify factors that influence customer satisfaction
Customer value, as perceived by academic thought, can be toward the airport. Questionnaire developed with a total of 38
described as “the value a product offers to a customer, taking all its questions, of which 5 questions for airport accessibility as
tangible and intangible features into account” [50]. The scholar's AA1eAA5, 6 questions for security check SC1eSC5, 9 questions for
defines “value as whatever the consumer wants in a product” with terminal facility TF1eTF7, 5 questions for customer satisfaction
value being built from all the benefits the product can contribute to CS1-SC5, 8 questions for customer value CV1eCV8, and 5 questions
a specific customer [45]. This sort of value is also called “utility for service innovation SI1eSI5, respectively as Appendix Table 1. A
value” by some researchers. Value, as a sum of benefits, is also pre-test of the questionnaire was done to verify the reliability of the
widely named “customer desired value”. Customer desired value scale items.
focuses on what the customer wants to have from a product or The main study questionnaires were collected. This study used a
service offering in a specific use situation in order to achieve the quantitative research design to: (1) investigate the most influential
customer's desired goals [50]. As customer desired value seeks to factors in gaining customer satisfaction, (2) investigate the rela-
explain the customer's needs, wants and desires in an offering [51], tionship between customer satisfaction and customer value, and
researcher have used means-end theory as the theoretical back- (3) investigate the effect of service innovation in relationship be-
ground for interpreting customer value [52]. Means-end theory tween customer satisfaction and customer value. The factors of this
seeks to explain how the customer attempts to achieve the desired research were airport accessibility, the security check and terminal
end-state or goal (end) by choosing products or services (means) facilities.
that enable achieving this [4,46,52]. The theory assumes that the
customer behaves rationally and strives to minimize undesirable 3.3. Data collection and sampling
consequences and maximize desirable outcome [51].
The second major academic thought chooses to include the The target population of this study were passengers from
sacrifice side of the interchange between customer and supplier, i.e. various Asian countries. Data was collected through online and
the time and effort needed to purchase and use the product, pur- asking respondent questionnaires for two months. A survey was
chase price, etc. Rust and Oliver [6] explained the idea in a simple conducted between 5th October to 2nd December 2013 and the
way as “value integrated with received and sacrificed to customer questionnaires were filled out by respondents. First, the survey was
perceived value”. This view of value is called “customer perceived posted on Google Docs and linked to the researcher's Facebook
value” i.e. the perception of net value achieved considering all pages with a message asking any passenger of an airport in an Asian
relevant benefits and sacrifices involved in purchasing and using country for their cooperation. Second, in order to reach a higher
the offering [2,51]. response rate from participants, the researcher has sent private
224 J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230

Service Innovation
Airport (SI)
Accessibility (AA)
H1
H5

H2 Customer Customer Value


Security Check
(SC) Satisfaction (CS) (CV)
H4

H3
Terminal
Facilities (TF)

Fig. 1. Conceptual framework.

Table 2 reliability. Descriptive statistics are procedures used to summaries


Summary of research hypothesis. large volumes of data. The role of descriptive statistics is to provide
Hypothesis Describe hypothesis the reader with an understanding of what the data looks like by
using a few indicative or typical values. The general objectives of
H1 AA has a statistically significant influence on CS.
H2 SC has a statistically significant influence on CS.
the principle component analysis is to provide simple summaries
H3 TF has a statistically significant influence on CS. about the sample and the observations. Once data was collected, it
H4 CS has a statistically significant influence on CV. was necessary to employ statistical techniques to analyze the
H5 SI has a moderating effect on the relationship between
CS and CV.

Table 4
Rotated component matrix for exploratory factor analysis (EFA).
messages to random active members from the previously
Component
mentioned social networking. We gained of response 323 samples
Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6
and 23 samples were defused from parent population. The total
useful sample size was 300 passengers. AA 1 .800
AA 2 .822
AA 3 .797
3.4. Pilot test AA 4 .710
AA 5 .775
A pilot test was done to assess the reliability of the attributes, SC 1 .906
and to ensure that the wordings of the questionnaire was clear. SC 2 .903
SC 3 .900
Thirty questionnaires were completed by the passengers in the
SC 4 .898
presence of researcher. The purpose of pilot test questionnaire was SC 5 .901
to determine if the factors that influenced customer satisfaction TF 1 .762
were important. The result of pilot test questionnaire described the TF 2 .781
important factors of customer satisfaction, in general. Based on the TF 3 .742
TF 4 .782
results of Cronbach's alpha and exploratory factor analysis (EFA) TF 5 .760
that has 3 items were deleted from questionnaire. The following TF 6 .782
table represents the deleted questionnaire items and the reasons TF 7 .703
why they were deleted (Table 3). CS 1 .723
CS 2 .814
CS 3 .817
3.5. Data analysis and tools CS 4 .723
CS 5 .731
The method of analysis of the sample was the quantitative SI 1 .687
SI 2 .748
method. This was chosen as the best method in order to draw
SI 3 .726
conclusions utilizing techniques that emphasize validity and SI 4 .646
SI 5 .625
CV 1 .889
Table 3 CV 2 .892
Deleted questionnaire items and reasons. CV 3 .887
CV 4 .892
# Variables Deleted items Reason
CV 5 .883
1 Terminal facilities TF 5 Low itemetotal correlation (.231) CV 6 .891
2 Terminal facilities TF 6 Low itemetotal correlation (.167) CV 7 .896
3 Security check SC 4 Low itemetotal correlation (.432) CV 8 .873
J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230 225

Table 5
Reliability and validity.

Variable Code Communalities EFA loading CFA loading Cronbach's a KMO Variance AVE CR

AA AA1 .65 .80 .68 .84 .82 61.57 .49 .83


AA2 .69 .82 .81
AA3 .65 .80 .67
AA4 .52 .71 .63
AA5 .61 .78 .74
SC SC1 .90 .91 .93 .97 .92 90.30 .52 .84
SC2 .90 .90 .93
SC3 .92 .90 .95
SC4 .91 .90 .94
SC5 .90 .90 .93
TF TF1 .64 .76 .74 .91 .91 63.96 .88 .97
TF2 .69 .78 .78
TF3 .60 .74 .70
TF4 .65 .78 .73
TF5 .63 .76 .76
TF6 .70 .78 .83
TF7 .59 .70 .74
CS CS1 .60 .72 .71 .87 .88 65.67 .58 .91
CS2 .72 .81 .80
CS3 .72 .82 .79
CS4 .64 .72 .75
CS5 .63 .73 .74
SI SI1 .58 .69 .71 .87 .81 59.39 .57 .87
SI2 .64 .75 .69
SI3 .66 .73 .74
SI4 .56 .65 .74
SI5 .56 .63 .69
CV CV1 .85 .89 .90 .97 .95 84.78 .83 .97
CV2 .86 .89 .91
CV3 .85 .89 .91
CV4 .85 .89 .91
CV5 .84 .88 .91
CV6 .85 .89 .91
CV7 .86 .90 .92
CV8 .83 .87 .90
Total 0.91 0.92 72.14

information, as this study is quantitative in nature. Descriptive (32 ¼ 10.7%), Vietnamese (23 ¼ 7.7%), Japanese (17 ¼ 5.7%), Korean
analysis adopted the use of statistical software SPSS 20. (14 ¼ 4.7%) and other miscellaneous countries (46 ¼ 15.3%). Most of
the respondents were from Asian countries.
Respondents divided into fours levels of education: under-
4. Data analysis and discussion graduate or less, graduate, master and doctoral were contributed.
149 of the sample were (49.7%) graduate, 114 of the sample were
4.1. Data analysis (38%) with master's degree, followed by 30 of the sample were
(10%) undergraduate students and other 7 of the sample were
This study collected 323 respondents and there were 300 us- (2.3%) doctoral program respondents.
able, complete questionnaires with an overall response rate of 92%. The data analysis include the determination of descriptive sta-
The demographic data included information on gender, age, edu- tistics, frequency distribution analysis, and testing of reliability and
cation, income, occupation, and nationality. Also, the researchers validity. Structural equation modeling (SEM) was applied to test
asked the respondents their frequency of usage of the airport per validity and the proposed hypotheses. SEM is particularly appro-
year. The gender for the sample was 148 male (49.3%) and 152 fe- priate for the study of multiple dependent relationships, which is to
male (50.7%) respondents. In terms of nationality, the majority of investigate in the present research. SEM used to determine if the
the respondents were Mongolians (68 ¼ 22.7%), then Taiwanese estimated population covariance matrix of the proposed model was
(56 ¼ 18.7%), followed by Chinese (44 ¼ 14.7%), Indonesian consistent with the observed covariance matrix. This research used
a user friendly AMOS statistical package in a SEM software
program.
Table 6
SEM goodness-of-fit statistics.

GOF Index Good fit Acceptable fit Structural model 4.2. Exploratory factor analysis (EFA)
2
X (chi-square) 770.146
df (degrees of freedom) 540 Exploratory factor analysis (EFA) is an important tool for re-
X2/df <2 2.0e5.0 1.4262
searchers. It can be useful for refining measures, evaluating
Probability .000 .050 .000
NFI >.90 .85e.90 .917 construct validity, and in some cases testing hypotheses. An
CFI >.90 .85e.90 .973 exploratory factor analysis was conducted to identify the un-
GFI >.90 .85e.90 .872 dimensionality of all variables under investigation which were
TLI >.90 .85e.90 .971 customer value, airport accessibility, the security check, terminal
RMSEA <.06 .06e.08 .038
facilities, customer satisfaction and service innovation (Table 4).
226 J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230

However, the result of KaisereMeyereOlkin (KMO) and the Bar- were tested for the sample. The first-fit index for the structural
tlett's Test of Sphericity needs to be considered as satisfactory model indicated an acceptable fit (x2 ¼ 770.146; df ¼ 540; p-
before the factor analysis could proceed. value ¼ .000; RMSEA ¼ .038; CFI ¼ .973; GFI ¼ .872; TLI ¼ .971)
(Table 6).
4.3. Reliability and validity Among the five hypothesis proposed, four paths were supported
(airport accessibility to customer satisfaction; security check to
Hair et al. [54] suggest that a reliability test should be performed customer satisfaction; customer satisfaction to customer value) and
before an assessment of its validity. “Reliability is an assessment of one paths (terminal facilities to customer satisfaction) was not
the degree of consistency between multiple measurements of a supported Fig. 2 and Table 7 present the results of the structural
variable” [54]. According to Cronbach's Alpha, it is the most model test.
commonly reported estimate of reliability and also, Cronbach's
Alpha values provide evidence for reliability. The reliability of the 4.8.1. Hypothesis 1
construct should be greater than .7. In this study, Cronbach's Alpha Airport accessibility has a statistically significant and positive
values was .91 which is higher than .7 (Table 5). influence on customer satisfaction. Based on standardized esti-
mates of .15 and the associated p-value of .02 this hypothesis was
4.4. Confirmatory factor analysis accepted (p < 0.05). It implies that most passengers feel access to
airport is one of the barriers for using the airport. More languages
Confirmatory factor analysis (CFA) is another factor analytic should be written to direct passengers and give other important
strategy, and it is used to confirm an expected factor structure information. Other additional services, like a free shuttle bus or a
rather than to determine a structure [55]. In a departure from shuttle bus timetable should widely and visually publicized.
exploratory factor analysis, the desired factor structure needs to be
explicated in confirmatory factor analysis. Confirmatory factor 4.8.2. Hypothesis 2
analysis provides an indication of how well the actual data conform The security check has a significant influence on customer
to the specified factor pattern [55]. Confirmatory factor analysis is a satisfaction. Based on the standardized estimates of .45 and the
theory-testing model, as opposed to a theory-generating method, associated p-value of .000 this hypothesis was accepted (p < 0.001).
like exploratory factor analysis. In confirmatory factor analysis, the Based on hypothesis test, it appears the security check has a posi-
researcher begins with a hypothesis prior to the analysis. This tive and statistically significant influence on customer satisfaction.
model, or hypothesis, specifies which variables will be correlated Previous studies concluded that security related issues were the
with other variables. The hypothesis is based on a strong theoretical most prioritized issues for passengers and this study was consistent
and/or empirical foundation [56]. with these priors studies. It means passengers are willing to be
more patient in order to follow security check procedures and are
4.5. Fit statistics more satisfied with an airport that has high security check pro-
cedures. It also was the most influential factor for customer
As stated previously, the fit statistics test how well the satisfaction.
competing models fit the data. Examples of these statistics include
the chi square/degrees of freedom ratio, the Bentler comparative fit 4.8.3. Hypothesis 3
index (CFI) [57], the parsimony ratio, and the goodness-of-fit Index Based on standardized estimates of .08 and the associated p-
(GFI) [58]. The good-of-fit index “is a measure of the relative value of .158 this hypothesis was rejected. Based on the hypothesis
amount of variances and covariances jointly accounted for by the test, it appears that terminal facilities have not a positive influence.
model” [58]. The GFI gives an indication of the relative amounts of However, the terminal facilities influence on customer satisfaction
the covariances among the latent variables that are accounted for was revealed to be insignificant in this study. That means that
by the model [59]. customers think terminal facilities have not influenced their satis-
faction because they are indifferent to it as a factor in their travel
4.6. Root mean square error of approximation (RMSEA) purposes. For example, business travelers are too busy to enjoy
other facilities in the airport. It reflects that a terminal facility does
Root mean square error of approximation (RMSEA) is a measure not greatly influence the customer satisfaction.
of approximate fit in the population [60]. The RMSEA has a value
close to zero indicating perfect fit with values increasing as the 4.8.4. Hypothesis 4
model fit deteriorates. RMSEA values that are lower than .05 can be Value is some combination of what is received and what is
considered as a good fit, with values between .05 and .08 as an sacrificed. Customer satisfaction has significant influence on
adequate fit, and values between .08 and .10 as a mediocre fit, customer value. Based on the standardized estimates of .51 and the
whereas values >.10 are not acceptable [61]. associated p-value of .000, this hypothesis was accepted. Based on
the hypothesis test, it appears that customer satisfaction has a
4.7. Confirmatory factor analysis in measurement model positive and significant influence on customer value. Based on this
result, we can conclude that the experience obtained after using a
Confirmatory factor analysis (CFA) was performed to examine certain airport was valuable for these customers.
the relationship between the items and their respective latent
variables using AMOS 20. Relationships between the constructs and 4.9. Hypothesis 5 and moderating analysis
their latent variables were specified in the measurement model.
In general terms, a moderator is a qualitative or quantitative
4.8. Structural model testing variable that affects the direction and/or strength of the relation
between an independent or predictor variable and a dependent or
The framework model for this research was tested using AMOS criterion variable. Based on Baron and Kenny [62] the moderating
20. The following table shows of the results of the structural effect was tested in this hypothesis. For hypothesis 5, the following
equation model. The hypothesis (H1~H5) of the proposed model variables were measured for the study. The independent variable is
J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230 227

Fig. 2. Standardized structural model.

customer satisfaction; the moderator variable is service innovation; customer value. In addition to that, the moderating effect of service
and the dependent variable is customer value. innovation was examined. A total of five hypothesis were devel-
In this study, service innovation as a moderator has a significant oped and tested using SEM. The results demonstrated as follows:
impact between relationship of customer satisfaction and customer First, demographic characteristics of respondents were sum-
value. All the innovative items have increased the influence of marized using descriptive statistics, respectively. Majority of the
customer satisfaction on customer value. Table 8 presented the respondents in this study claimed that they worked in both the
total effect of service innovation items and this result showed that public and private sector. In terms of frequency usage of the airport,
these items together have a strong influence on customer value most respondents used airport 1e5 times a year (45%).
(.65, p < 0.001). The findings state that service innovation play a Secondly, analysis of the findings reveals that the most influ-
moderating effect on the relationship of customer satisfaction and ential factor on airport customer satisfaction was the security check
customer value, therefore hypothesis 5 was accepted. (b ¼ .45, p < 0.001). Previously, the safety and security dimension of
air travel has the most influential impact on customer satisfaction
4.10. Discussion on the result of the research analysis over other factors of assurance, convenience, comfort, and meals.
This result was consistent with previous studies [63,64]. It means
This part will explain the result of the research analysis. The passengers are willing to be patient for security related airport
objective of this study was to find the most influential factor in service procedures that have high quality and reliable service,
airport customers' satisfaction. In light of previous literature, the partly because traveling by air sometimes considered as a life-or-
present study used three items, which were airport accessibility, death experience with many accidents happening at the airport.
the security check, and the terminal facilities to study relationships Therefore, passengers are more likely to obey security related is-
between customer satisfaction and finally, its influence on sues and be satisfied that security means service. The next

Table 7
Standardized coefficient with standard errors.

Hypothesis Standardized estimate Standard error P

H1: Airport accessibility / Customer satisfaction .147 .048 *


H2: Security check / Customer satisfaction .446 .039 ***
H3: Terminal facilities / Customer satisfaction .083 .088 .158
H4: Customer satisfaction / Customer value .510 .074 ***
H5: SI has moderating effect on between CS & CV .650 .072 ***

***p < 0.001 **p < 0.01 *p < 0.05.


228 J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230

Table 8
Moderating analysis result.

Testing step Path Predictor Moderator Outcome Std b Geographical display


:51
Step 1 a CS No CV .51*** CSƒ!CV
:25
Step 2 b SI5 No CV .25*** SI5ƒ!CV
:65
Step 3 c CS*SI5 CV .65*** Mod5ƒ!CV

***p < 0.001 **p < 0.01 *p < 0.05.

influential factor on customer satisfaction was airport accessibility service innovation in the airport are prerequisite for service
(b ¼ .15, p < 0.05). Access was defined as approachability and ease providers.
of reach. Scholars studied overall passenger perceptions of service
quality through seven airport service dimensions (access, services
5. Conclusion
and facilities, dining, shopping, service personnel, and security, the
environment, and immigration/customs). As a result, the airport
5.1. Research result
environment was revealed to be the most influential dimension of
airport service quality which was followed by access, dining, and
This study explores factor analysis, confirmatory factor analysis,
immigration/customs, which is supported in this study. In a per-
and structural equation modeling to examine the hypothesis.
son's day to day life, airport accessibility did not have that much
Chronbach's alpha was .906 which means that the data had strong
influence. Thus, it had only moderate significance on customer
internal consistency. Measurement validity was made upon
satisfaction (.15, p < 0.05). However, airports need to provide an
exploratory factor analysis and some items were deleted upon its
easy way to understandable direction or signs in different lan-
consistency and factor loading, while consistent factors were
guages, as well as special transit operations for those who need
retained in order to run the next statistics analysis. The confirma-
special care to increase the satisfaction level. Unlike previous
tory factor analysis was applied by the AMOS 20 version, showing
studies, this study concluded that the terminal facilities have not
that the outcomes of the CFA do not differ from the EFA. Thus, the
influenced customer satisfaction (.083, p > 0.05). Since passengers
study moved on to the next convergent validity test. The value of
do not spend much time at the airport, they do not care much about
each latent variable ranged from .83 to .97, indicated a strong
its facilities or they just consider terminal facilities a given
composite reliability. The average variance extracted (AVE) value of
expectation.
each latent variable ranged from .49 to .88, demonstrating strong
Third, we examined relationships between customer satisfac-
convergent validity. Discriminate validity of the variables ranged
tion and customer value. Some scholars indicated that airport ser-
from .96 to 4.01. The results for all the criteria were valid.
vice value resulted after experiencing the actual service by the
Before the hypotheses testing, the researcher checked the model
airport. Therefore, satisfaction can be a good antecedent to examine
fit indexes. For this step, all the fit indexes for the structural model
customer value. Based on the hypothesis test, it appears that
indicated an acceptable fit (x2 ¼ 770,146; df ¼ 540; p-value ¼ .000;
customer satisfaction has a positive and statistically significant
RMSEA ¼ .038; CFI ¼ .973; GFI ¼ .872; TLI ¼ .971; NFI ¼ .917). The
influence on customer value (.51, p < 0.001). As soon as customer
data indicated that the researcher could move on to the last anal-
satisfaction is enhanced, when customers' value is increased, the
ysis. Based on the result of structural equation modeling, the pro-
customers' intention is to use it again.
posed hypotheses were analyzed. The result of hypotheses tests
Fourthly, the moderating effect of innovation was examined in
were shown in Table 7.
relationships between customer satisfaction and customer value.
We have studied 4 main innovative airport services as moderator
which are the self-check-in kiosk, the X-Ray, social media and micro 5.2. Research finding
hotels. The self-check-in kiosk moderates the relationship between
customer satisfaction and customer value (b ¼ .60, p < 0.001). The Analysis of the findings reveals that the most influential factor
X-ray does exert a moderating effect on the customer satisfaction on airport customer satisfaction was the security check. This result
and the customer value relationship (b ¼ .62, p < 0.001). Service was consistent with previous studies [10]. It means that passengers
innovation (SI3 social media) has an effect on the relationship be- are willing to be patient for security related airport service pro-
tween customer satisfaction and customer value (b ¼ .53, cedures and expect it to provide more reliability and quality for
p < 0.001). Micro hotels do exert a moderating effect on the their safety. The result similar Handberg [65] point out creating
customer satisfaction and customer value relationship (b ¼ .56, transportation infrastructure is very important issues in state
p < 0.001). spaceport. The next influential factor on customer satisfaction was
At last, a fifth service innovation moderator (SI5) was analyzed. airport accessibility. As a result, the airport environment was
This indicates that above all, service innovations do exert a revealed to be the most influential dimension of airport service
moderating effect on the customer satisfaction and customer value quality, which was followed by access, dining and immigration/
relationship (b ¼ .65, p < 0.001). Like the above four moderators, customs, which was supported in this study. Unlike with previous
analysis of this item also resulted as statistically significant at all studies, this study found that terminal facilities did not influence
three steps. In the questionnaire, SI5 was asking about all of those customer satisfaction. In addition, the present study found there is
innovate services enhancing customer value, so in the end result, a strong positive relation between customer satisfaction and
we can say that all these 4 kinds service innovation, entirely customer value. The customers who benefit or receive an advantage
moderate the relationship between customer satisfaction (CS) and from the airport services tend to value the airport.
customer value (CV). Lastly, the moderating effect of innovation was examined in the
In summary, all those moderators revealed as significant influ- relationships between customer satisfaction and customer value.
ence and increased the direct relationship between customer We studied 4 main innovative airport services as moderators which
satisfaction and customer value. The findings indicated that these were the self-check-in kiosk, the X-Ray, social media and micro
hotels. All those moderators were revealed as significant and
J.K.C. Chen et al. / Technology in Society 43 (2015) 219e230 229

increased the direct relationship between customer satisfaction 5.5. Suggestions and recommendations
and customer value.
There are some suggestions for future researchers. First, in this
study, we used the following independent variables (accessibility,
5.3. Practical implication the terminal facility, and the security check) which are from
SERVQUAL dimensions and the wording has been modified to be
Based on the above findings and results, managers need to be more appropriate for the airport service industry. Future re-
concerned about the following issues: First, the research proves searchers may wish to use other questionnaire items from other
that the security check is the strongest significant factor influencing alternatives.
customer satisfaction. It implies that airports should be concerned Secondly, the researchers understand the culture and regulation
in the development and the process of enhancing the security difference in different countries, which is limitation of the paper.
check to increase customer satisfaction. The more they are satisfied, Thus future researchers may wish to study (a) involving a suffi-
the more they value the airports. ciently large sample size for entire industry, or (b) including specific
Secondly, the influence of airport accessibility was significant on target groups by geographic location or culture difference factors.
customer satisfaction. Therefore, ease of reach to the airport, such Finally, this research study used closed-ended questions to
as convenient transit service at the airport, frequent transportation examine the factors that influenced customer satisfaction, and the
service, or sufficient parking etc., is the next issue that airports relationships among the variables. Future researchers may wish to
should consistently enhance for airport customer satisfaction. use other methods for collecting data, such as interviews and open-
Thirdly, passengers just consider terminal facilities as a basic ended questions to have more extensive understanding. Further
requirement and it no longer influences passengers. Although, it studies could be carried out to develop and validate the models by
does not mean to decrease or assume less importance in consid- adding external constructs within a more specific context.
eration of the physical facilities of the airport, such as the internal
organization, seating and heating comfort, availability of banking
services, as well as facilities for the disabled and children. Airports Appendix A. Supplementary data
should make their policies and activities pleasing in the terminal
facilities. Supplementary data related to this article can be found at http://
Fourthly, some researchers indicated that airport service value is dx.doi.org/10.1016/j.techsoc.2015.05.010.
a result after the experience of the actual service. Therefore, satis-
faction can be a good antecedent in examining customer value.
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