THE IMPACT OF AIRLINE RESPONDS TO SERVICE FAILURE TOWARDS CUSTOMERS’ SATISFACTION AND LOYALTY IN THE AIRLINE INDUSTRY

• Main Author: Tay, Adelina
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/76062
• Institution: Institut Teknologi Bandung

This study explores the relationship between airline responses to service failures and customer’s satisfaction and loyalty in the airline industry. Using a framework that includes various airline response categories derived from a service blueprint such as overbooking, flight delays, cancellations, lost or damaged luggage, inflight service issues, customer service failures, and security issues, this study investigates the relationship between these factors and customer satisfaction, as well as the resulting impact on customer loyalty. A mixed approach which includes qualitative and quantitative has been used alongside by using nonprobability sampling that will be use in this study includes snowball sampling and convenience sampling. Upon collected data through survey, the result is then being regressed linearly in SPSS. The analysis of data reveals that effective and timely handling of service failures, as well as considerate handling of complaints, play a significant role in determining customer satisfaction. In addition, customer satisfaction influences customer loyalty positively, highlighting the significance of service recovery in nurturing long-term customer relationships. The findings emphasize the need for airlines to prioritize efficient service recovery processes, such as transparent communication and adequate compensation for service failures. Future research recommendations include investigating the role of technology in service recovery efforts and other service failure scenarios. This study contributes to the existing body of knowledge on service recovery in the airline industry and offers insights for marketing strategies to increase customer satisfaction and loyalty.