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Transportation quality, customer satisfaction and financial performance

Belaynesh, T., Dow, K. E., Askarany, D., Wong, J. and Shen, Y. ORCID: https://orcid.org/0000-0002-2943-6022 (2021) Transportation quality, customer satisfaction and financial performance. Advances in Management Accounting, 34. ISSN 1474-7871 (In Press)

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Abstract/Summary

This paper examines the relationship between transportation quality, customer satisfaction and profitability. Specifically, this study examines the simultaneous and asynchronous effect of quality of transportation services on customer satisfaction and financial performance and then performs the same examination in relation to the effect of customer satisfaction on financial performance. The partial least squares approach to structural equation modelling is used to examine longitudinal data from 1995-2018 from the US airline industry. Our findings suggest that low services quality in transportation has adverse effects on customer satisfaction and financial performance, while the impact of customer satisfaction on financial performance in the US Airline transportation industry is mixed. We found that the impact of customer satisfaction on financial performance is significant in full-service airlines but not in low-cost airlines. Surprisingly, we found no significant direct relationship between transportation quality and financial performance in the US airline industry.

Item Type:Article
Refereed:Yes
Divisions:Henley Business School > Business Informatics, Systems and Accounting
ID Code:101497
Uncontrolled Keywords:Transportation quality, customer satisfaction, US airline industry and financial performance
Publisher:Emerald Publishing Limited

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