In the name Jetstar Pacific Airlines Joint

In the last 30 years, the
aviation industry has been growing rapidly. In addition to its development of
technology, the growing of airline industry due to its important roles as
supporting the world trade, international investment, and tourism activities (Hanlon,
2007). With that growing has been creating opportunities as well as challenges
to this industry. The opportunities arise due to the increasing demand for the
airline services. While the challenges arise not only because of high level of
competition between the airlines, but also because of high demands for better
service.

There are two main types
of airline industry including full service airlines and low-cost airlines. A
low-cost airlines or low-cost carrier popularly known as a no-frills, discount
or budget airline, which has up to 200 seats offering generally low fares. For
the full-service airlines, which supports large, complicated operations with
thousands of staffs and different types of aircraft with flights to domestic as
well as international destinations and offer various incentives that low-cost
airlines did not such as frequent flyer program, passenger lounge, meals and
drinks on board, etc. Jetstar Pacific, the first pioneer in low-cost airlines
of Vietnam, was established in 1990 under the name Jetstar Pacific Airlines
Joint Stock Aviation Company. In 2012, Vietnam Airlines bought a 70% stake in
the company. In the stage of economic development, demand of using aviation
service has been growing rapidly, not only with domestic flights but also with
international flights. Therefore, Vietnam is a potential market in tourism
industry. In the other hand, when applying “open skies” policy and joining
World Trade Organization (WTO), many foreign airlines have launched their
flights to Vietnam and with the launch of many domestic airlines has been
putting pressure on the airline industry become stronger. There must be
effective measures for Jetstar Pacific to enhance and ensure the effectiveness
of business operations.

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To remain its
competitiveness and stability, Jetstar Pacific must render quality service to
their customers. One of the most critical factor in airline industry is
passenger satisfaction and it is an important part to ensure the business
success in competitive world nowadays (S. Askoy, 2003). The purpose of this study
is to 1) analyzing the impacts of service quality on passengers’ satisfaction
of Jetstar Pacific, 2) identifying what factors affect perceived service
quality in airlines service industry and effect on satisfaction of Jetstar
Pacific passengers.

 

LITERATURE REVIEW

 

1.     
Customer
satisfaction

In
the dynamic and fast-growing market, customer satisfaction has been playing a
vital part in the success and prosperity of one business. According to Oliver
(1997), satisfaction is the consumer’s fulfillment response. It is a judgement
when product or service was provided, a pleasurable reaction and unpleasant
reaction from customer receiving that service. Satisfaction is an “overall
customer attitude towards a service provider” (Levesque & McDougall, 1996)
or according to Zineldin (2000) an emotional reaction is the difference between
customers want and what they are delivered. When products or services that they
are received is not as they desired, customers tend to feel dissatisfied and
more likely to go elsewhere (Heskett et al., 1994), vice versa, when customers
are satisfied, they are more likely to return. Therefore, it is very important
for airline industry to maintain what customers want and what they experience.

2.     
Service quality

Service
quality is considered as a critical dimension of competitiveness (Lewis, 1989),
which service meets or exceeds customer needs and expectation (Lewis and
Mitchell, 1990; Dotchin and Oakland, 1994). Service quality is an indispensable
strategy for any business to success and survival, as it influences customer’s
behavior willing to purchase products and services and performance of business
(Zeithaml, Berry, & Parasuraman, 1996). It also has significant impact on
business performance, customer satisfaction customer loyalty and gaining higher
profit. Therefore, it has profound influence on an airline industry to approach
customer satisfaction.

3.     
The relationship
between service quality and satisfaction

Service
quality and customer satisfaction were highly related (Sureshchandear et al.,
2002). To achieve a high level of customer satisfaction, service provider
should deliver a high level of service quality as it is considered an
antecedent of customer satisfaction (Cronin, Brady, and Hult, 2000; Anderson et
al., 1994). Therefore, the quality has become an aspect of customer
satisfaction. They both have certain things in common, while customer
satisfaction is a broader concept, service quality generally focusses on
customer satisfaction. However, it can be concluded that service quality had
strongly influences on customer satisfaction.

4.     
On-Ground Service

Providing
good on-ground services can bring initially strong impression on passengers
when they first using the airlines to travel or before on board. According to F.
Y. Chen & Y. H. Chang (2005), activities of these services include information
about airport, airlines, flights; reservations and ticket purchases; airport
check in process; baggage handling; lounge services; food and drink catering.
On-ground services are also playing a critical role that affects service
quality and cannot be ignored in aviation context.

From
the definition mentioned above, this study hypothesizes that:

H1:
Factors of on-ground services and services provided affect perceived service
quality.

H2:
Factors of on-ground services and services provided affect passengers’
satisfaction.

H3:
Perceived service quality affects customer satisfaction.

 

METHODOLOGY

 

1.     
Sampling selection

The population of this study was passengers who had
been using Jetstar Pacific to travel. This research using quantitative approach
with respondents amounted to 300 were selected in Ho Chi Minh city. The data
was collected by using self-administered questionnaire.

2.     
Data collection    

A construction of questionnaire was designed basing on
main concepts which were drawn from literature review. Customer satisfaction
was anchored by satisfaction of service, quality and quantity of product such
as food and beverage. All of the variables were measured with five Likert scale
which is equivalent to “1 = strongly disagree”, “2 = disagree”, “3 = neutral”,
“4 = agree”, and “5 = strongly agree”.