EXPLORATION OF CUSTOMER SATIFICATION ON AIR TRANSPORT SERVICES IN A CASE OF CORPORATION (ATCL) AND PLC.

By

BUNDALA KATE

A dissertation Report submitted in Partial/fulfillment of the Requirement for the Degree Master of Science in Marketing Management (MSc – MKT) of Mzumbe University

DECEMBER, 2020 CERTIFICATION

We, the undersigned, certify that we have ready and hereby recommend for acceptance by the Mzumbe University, a dissertation/thesis entitled Exploration of customer satisfaction on air transport services in Tanzania: The case of ATCL and Precision Air Plc., in partial/fulfillment of the requirement for award of the degree of Master of Science in Marketing Management of Mzumbe University.

______Major Supervisor

______Internal Examiner

______External Examiner

Accepted for the Board of MUDCC

______DEAN/DIRECTOR, FACULTY, / DIRECTORATE BOARD

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DECLARATION AND COPYRIHGT

I, Bundala Kate, declare that this thesis is my own original work and that it has not been presented and will not be presented to any other University for a similar or any other degree award.

Signature ------

Date------

©2020

This dissertation report is a copyright material protected under the Berne convention, the Copyright Act 1999 and other international and national enactments, in that behalf, on intellectual property. It may not be reproduced by any means in full or in part, except for short extracts in fair dealings, for research or private study, critical scholarly review or discourse with an acknowledgement, without the written permission of Mzumbe University, on behalf of the author. ii

ACKNOWLEDGEMENT

This Report is composed as a prerequisite for Master's assessment to at the Mzumbe University, Campus Collage. Composing this exposition has broadened my insight to lead investigations of this nature. The positive compellation of this errand was conceivable with the help, motivation, help and help from different people who gave their time tremendously to carryout and encourage to greatness of work

Subsequently, I might want to offer my genuine thanks first to the Almighty God for the security and quality all through the investigation. My next thankfulness goes to my dear Supervisor Dr. Newa Makawa for her help, direction, tolerance and expert touch with which she guided me through this examination. She gave me consolation, bearing and valuable proposals which contributed massively to the nature of this work. If you don't mind acknowledge my unassuming appreciation.

I can't overlook the help from Mr. Faustine Masunga, Mr. Francis Muya and others who in one manner or the other contributed a great deal in my investigation.

In conclusion, I compassionately thank the station Administrator and recognized staff of ATCL and Precision Air Plc. for their consideration and backing in a remarkable way. I be obliged you an innumerable conclusion of appreciativeness.. .

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ABSTRACT The point of this study is to explore customer satisfaction with Air transport services in Tanzania; a contextual analysis of ATCL and Precision Air Plc. utilizing American Customer Satisfaction Index (ACSI) model which coordinate client saw esteem, desire, client care related item includes methodology, administration quality, customer loyalty and devotion. Utilizing purposive inspecting and accommodation testing strategy, essential information were gathered from a sum of 75 clients from two organizations (ATCL and Precision Air Plc.) at Julius Nyerere International (JNIA). The collected data were broke down through Smart PLS. the discoveries uncovered that consumer loyalty is essentially affected by client seen, service quality administration; client support related item includes procedures, and service quality measurement.

For ATCL and Precision Air, customer perceived value found to be a powerful indicator for customer satisfaction, followed by service quality management, then service quality dimensions, and customer service-related product features strategies found to be the least important factor for customer satisfaction. Based on the findings, it was suggested that both ATCL and Precision Air should gain more information about traveller‟s attitudes and develop plans to improve the weak point. As per study findings, managers should try in customer perceive value and technical quality first. Completing a trip accurately, punctuality in departure and cost benefit is what the passengers expect in the first. It is highly desirable that ATCL and Precision reduced delay, technical faults, unrealistic pricing, and security.

The study also suggests that Precision Air needs some investment in tangible feature. Providing modern variety and choices of in-flight entertainment facilities are inevitable. It is suggested to use multiple tools and programs to entertain passengers including broadcasting music, showing films, giving puzzle and various magazine and Newspapers. This study adopted ACSI model to measure customer satisfaction with Air Transport Services in Tanzania. It was much interesting if other studies can be conducted by using the same model in other different industries. This study took at Airline

iv customer satisfaction by evaluating services generally. It is suggested further studies to be conducted more focused on specific and different parts or areas of Airline services such as check-in services, ticketing, in-flight services, Customer services- related product features, etc. several limitations of the study should be observed.

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LIST OF ABBREVIATIONS AND ACRONYMS

ACSI American Customer Satisfaction Index model

AFRAA Africa Association

ATCL Air Tanzania Company Limited

ATR Average True Range Aircraft Manufacturer

AVE Average Variance Extracted

CLV Customer Perceived Value

CPV Customer Perceived Value

CSRF Customer Services Related Product Features

EDP Expectancy Disconfirmation Paradigm

FAQ Frequently Asked Questions

IATA International Air Transport Association

IPMA Importance Performance Map Analysis

JNIA Julius Nyerere

JRO Kilimanjaro Airport

KLM KoninklijkeLutchvaartMaatschappij

LVC Latent Variable Correlation

PLC Public Limited Company

PLS Partial Least Square

PLS-SEM Partial Least Square – Structural Equation Modelling

PW Precision Air Plc.

QFD QualityFunction Deployment

QM Service Quality

SAA Airways

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SARS Severe Acute Respiratory Syndrome

SD Service Dimensions

SERVEQUAL Service Quality Modal

SPSS Statistical Package for Social Science

TQM Total Quality Management

US United States

VIF Variance Inflation Factor

ZNZ

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LIST OF TABLES

Table 4. 1:Participant‟s Frequency ...... 39 Table 4. 2: Marital Status of Respondents ...... 39 Table 4. 3: Highest Education Qualification ...... 40 Table 4. 4: Type of Customer...... 40 Table 4. 5: Length of time of using Air Transport Services ...... 41 Table 4. 6: Gender of respondents ...... 41 Table 4. 7: Age range of respondents ...... 42 Table 4. 8: Collinearity Statistics (VIF)...... 44 Table 4. 9: T-Statistics and P Value for convergent validity of constructs ...... 46 Table 4. 10: Total effects ...... 49

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LIST OF FIGURES Figure 2. 1: Conceptual framework model ...... 24

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TABLE OF CONTENTS

CERTIFICATION ...... i

DECLARATION AND COPYRIHGT ...... ii

ACKNOWLEDGEMENT ...... iii

ABSTRACT ...... iv

LIST OF ABBREVIATIONS AND ACRONYMS ...... vi

LIST OF TABLES ...... viii

LIST OF FIGURES ...... ix

TABLE OF CONTENTS...... viii

PROBLEM SETTING ...... 1

1.0 Introduction ...... 1

1.1 Background of the study ...... 1

1.1.2 Air Tanzania Corporation Limited (ATCL) ...... 5

1.1.3 Precision Air PLC ...... 6

1.2 Problem statement...... 7

1.3Research Objectives ...... 10

1.3.1 Main Objective ...... 10

1.3.2 Specific Objectives ...... 10

1.4 Research Questions ...... 10

1.4.1 Main Question ...... 10

1.4.2 Specific Questions ...... 10

1.5 Purpose of the Study ...... 11

1.7 Scope and Delimitation of the Study ...... 12

1.8 Limitations...... 12

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CHAPTER TWO ...... 14

LITERATURE REVIEW ...... 14

2.1 Introduction ...... 14

2.2 Theoretical review ...... 14

2.2.1 Definition of terms ...... 14

2.2.1.1 Customers ...... 14

2.2.1.2 Customer Satisfaction ...... 14

.2.2.1.3 Air Transport ...... 15

2.2.1.4 Customer Perceived Value (CPV) ...... 15

2.2.1.5 Customer Profitability ...... 16

2.2.1.6 Quality Management ...... 16

2.2.2The ACSI Model ...... 16

2.2.3The Expectancy Disconfirmation theory ...... 17

2.2.4The Equity Theory ...... 19

2.2.5 The Performance Theory ...... 20

2.3Empirical Review ...... 21

2.5 Conceptual Framework ...... 23

2.5.1 Description of the Conceptual framework ...... 25

2.6 Research Gap ...... 27

CHAPTER THREE ...... 29

RESEARCH METHODOLOGY ...... 29

3.1 Introduction ...... 29

3.2 Research Approach ...... 29

3.3 Research Design ...... 30

3.4 Study Area and Population ...... 30

3.4.1 Study Area ...... 30

.3.4.2 Study Population ...... 31

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3.4 Sampling and Sampling Procedure ...... 31

3.4.1 Sample size ...... 31

3.4.2 Sampling Techniques ...... 31

3.4.2.1 Simple Random Sampling ...... 32

3.4.2.2 Convenient Sampling ...... 32

3.4.4 Judgmental Sampling (Purposive Sample)...... 32

3.5 Data Collection ...... 33

3.5.1 Primary Data ...... 33

3.5.1.1 Interview ...... 33

3.5.1.2 Questionnaires ...... 33

3.5.2 Secondary Data ...... 34

3.5.2.1 Documentary review ...... 34

3.5.2.2 Internet Sources ...... 34

3.6 Data Analysis and Processing ...... 35

3.6.1 Data Analysis ...... 35

3.6.2 Data processing ...... 35

3.6.3 Data Presentation ...... 35

3.7 Construct Reliability and Validity ...... 36 3.7.1 Internal Reliability ...... 36 3.7.2 Discriminant Validity ...... 36 3.7 Ethical consideration ...... 36

3.8 Conclusion ...... 36

CHAPTER FOUR ...... 38

PRESENTATION OF FINDINGS ...... 38

4. Introduction ...... 38

4.1 Descriptive Findings and Results ...... 38

4.1.1 The Sample‟s Participants Frequencies ...... 38

4.1.2 Marital Status...... 39

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4.1.3 Highest Education Qualification ...... 39

4.1.4 Type of Customer ...... 40

4.1.6 Gander ...... 41

4.1.7 Age range ...... 41

4.2 Measurement Model ...... 42

4.2.1 Construct Reliability and Validity ...... 42

4.2.2 Discriminant Validity ...... 43

4.3 Structural Model ...... 44

4.3.1 Collinearity Assessment ...... 44

4.3.2 The coefficient of determination (R2) ...... 44

4.3.3 Path coefficients ...... 45

4.4 Importance - Performance Map analysis...... 46

4.4.1 IPM for Customer Perceived Value on Air Transport Services in Tanzania ...... 47

4.4.2 IPM for Customer Service Related Programs features (CSRF) ...... 47

4.4.3 IPM for service Quality management ...... 48

4.4.4 IPM for the eminence of Service Dimension ...... 48

4.4.5 IPMA for Customer Satisfaction ...... 48

CHAPTER FIVE ...... 50

CONCLUSION, DISCUSSION AND RECOMMENDATION ...... 50

5.1 Introduction ...... 50

5.2 DISCUSSION ...... 50

5.2.1 To investigate the upshot of external perception ...... 50

5.2.2 To examine the eminence of Air Transport service ...... 53

5.2.3 To analyze customer perceived value (CPV) ...... 56

5.2.4To evaluate the effectiveness of customer ...... 60

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CHAPTER SIX ...... 63

SUMMARY, CONCLUSION, AND POLICY IMPLICATIONS ...... 63

6.1 Summary and Conclusion ...... 63 6.1.1 Summary ...... 63 6.1.2 Conclusion ...... 63 6.2 Recommendation and policy implications ...... 63 6.2.1 Recommendation ...... 63 6.2.2 Implications for future researches...... 66

REFERENCES ...... 67

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CHAPTER ONE

PROBLEM SETTING

1.0 Introduction The present chapter elucidates background of the study. It includes the statement of the problem that gives a credit to general and specific objectives whereby this is essential for providing information to solve the problem. Also research questions generated from the basis of research objectives followed with significances of this study on different aspect, as well as limitations, scope and delimitations were explained in this chapter.

1.1 Background of the study Air transport has become one of the world‟s most significant industry as a foremost direct and indirect employer that facilitates the growth of world‟s trade and offers opportunities for travel and tourism. Kathleen (2010) stated that the historical development of air transport can be traced back to the dream of flying, in the 18th century with the development of the hot air balloon. The evolution of early Air Transport industry covers the most important advancement in a physically based approach of flying, initial from Da Vinci and his drawings of flying vehicles, over the Montgolfier‟s hot air balloon, the principles of flying in 1896. This was tailed with the technically based approach that covers the different attempts from Clement Ader, Otto Lilienthal up to the Wright brothers, who finally in 1903 managed to fly with a vehicle heavier than air. Then proceeded with the commercial air transport in Europe and US between the two World Wars.

After World War II, explicitly in North America, there was a blast by and large flying, both private and business, as a huge number of pilots were discharged from military help and numerous reasonable war-surplus vehicle and preparing airplane opened up. Manufacturers, for example, Cessna, Piper, and Beech craft extended creation to give light airplane to the new white collar class advertise (Upham et el, 2003).The growth of Air Transport was significantly accelerated by the development

1 of civil jets in1950s;with first broadly used passenger jet namely . This commercial jet was much more economical than other aircraft at that time.

Moreover, turboprop drive was started for littler voyager planes, making it conceivable to serve little volume courses in more extensive scope of climate conditions. Planes stage in common air transport began with a fiasco of Comet, however all exercises gained from these air mishaps encouraged different organizations to begin effectively new kinds of stream jets in common air transport, which are as yet flying today. This formed airplane plan boundaries of speed, range, size and eco-friendliness which consequently routed to extricate the guidelines and the development of the present air transport framework. A short audit of the aircraft augmentation follows with the case of KLM. It follows a short air terminal survey, where the air terminal broadening of Atlanta, the greatest air terminal today is followed (Crouch, 2008). The greater part of significant aircrafts was banner transporters in 1970s, whereby a large portion of them were supported by their services and profoundly shielded from rivalry. From that point forward, open skies understandings have brought about augmented rivalry and decision for purchasers, attached with falling costs for carriers. The mix of high fuel costs, low tolls, significant compensations, and emergencies, for example, the September 11, 2001 assaults and the SARS pestilence have driven a few more seasoned aircrafts to government-bailouts, chater or mergers. Simultaneously, ease transporters, for example, Ryan air, Southwest and WestJet have thrived (Wensveen 2015).

.In Tanzania, Air transport is the most favored method of transport used to access for global guests and, along these lines, the part has demonstrated to be both essential and seriously depended upon. The absolute number of air travelers in Tanzania expanded by 62% in the previous 5 years, from 2.1m in 2010 to 3.5m in 2015. There are 58 air terminals and in excess of 300 private airstrips claimed by mining organizations and tourist services providers. There are at present three worldwide air terminals in Tanzania: the Julius Nyerere International Airport (JNIA) in Dar Es Salaam, the business capital, the Kilimanjaro International Airport (JRO) close 2

Arusha, and the AbeidAmaniKarume International Airport (ZNZ) in Zanzibar (TCAA (2016).

Earlier in 1990‟s most of the native Airline in Tanzania enjoyed certain level of guard with essentiallynegative rivalry from overseas Airlines. State-run maintained Airline Company (Air Tanzania Company Limited- ATCL) provides indistinguishable Air transport services with customer having slight or no selection. Air Transport reforms in Tanzania implemented by the Government of the United Republic of Tanzania during 1990‟s to date and also relatively high Air Transport regulatory policies in the country operates by recallingitslicensing of native and overseas Airline companies from East Africa Countries like Air, Airways; also Airlines from Europe and Far East Countries like , Fly , Fast jet, , Tropical Airway, Ethiopia Airway, and the alike.

Nevertheless, aviation sector in Tanzania witnessed more developments and quicken the quantity of Airline Companies shot up to 21 Airlines operating at the Julius Nyerere International Airport (JNIA), and make Tanzania Aviation Air transport the most preferred method of access in to Tanzania for international Visitors. on other hand,Air Transport services in Tanzania faces several challenges but also equal measure of opportunities in the aviation industry that if well addressed, could make the country‟s air transport vibrant to contribute to the mission of achieving the middle-income status by 2025 (TCAA,2016).

In 2016, the Tanzania Government under the leadership of Tanzania‟s President had expressed a desire to revamp the national airline, Air Tanzania Corporation Limited (ATCL), through the acquisition of new aircrafts to compete with other commercial lines currently flying in the country. ATCL was operating with only one leased plane and maintenance costs are at around USD 1.3 million per year. This was accompanied by the improvement of other Air transport facilities including construction of across the country(TCAA, 2016).

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Tanzania has encountered a steady development in air transport since in the ongoing years the global travelers' traffic has been developing at a normal of 7.27% per annum, it is still a long way from normal developments from other creating areas as Asia and Pacific with 8.6% recorded in 2015, Latin America 10% and Middle-East 10.3% in a similar period as indicated by the International Air Transport Association (IATA). As to travelers the scene is diverse since in Tanzania it has been developing at a pace of 17.93% per annum in the ongoing years while in other creating nations as China, India and Russia it recorded developments of 12.8%, 17.60% and 10.3% in 2015 individually. Consumer loyalty is unavoidable to keep up as well as increment this consistent development in air (TCAA, 2016). Customer satisfaction has been a subject of great interest to organizations and researchers alike. The principal objective of organizations is to maximize profits and to minimize cost. Profit maximization can be achieved through increase in sales with lesser costs. One of the factors that can help to increase sales is customer satisfaction, because satisfaction leads to customer loyalty (Wilson et al., 2008), recommendation and repeat purchase.

Armano, 2009 brought up that Customer turned out to be essential in business during the promoting time of the 1950s after organizations delivered what they can sell and not simply selling what they can create as it was during the creation time frame. From the earliest starting point of the utilization age in showcasing, the attention on clients has expanded more as the utilization age likewise moves to post-utilization; where associations are satisfied to deliver more administrations notwithstanding what they give as offers to their clients

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Truth be told, consumer loyalty's is the most critical instrument that guides to expand deals and make benefits in the business condition. In addition, the significance of consumer loyalty and administration quality has been affirmed applicable to help improve the all-out presentation of associations (Magi and Julander, 1996)

1.1.2 Air Tanzania Corporation Limited (ATCL)

Below is information about ATCL as provided by ATCL website, 2020.

Air Tanzania Company Limited (ATCL) is the national carrier of Tanzania situated in Dar es Salaam with its center point at Julius Nyerere International Airport. The Company was set up in 1977 after the disintegration of and has been an individual from the African Airlines Association (AFRAA) since its establishment.

After its establishment, ATCL felt various changes in its structure and ownership as a result of the Government's efforts to ensure that the country owns a strong national airline. In 2002 the Government decided to enter in partnership with South Africa Airways (SAA) after reducing its shareholding to 51 percent as a partial privatization of ATCL. However, in 2006 the partnership ended after the Government repurchased SAA shares to regain its 100% ownership of ATCL.

As the Government recaptured full ownership of ATCL, it invested seriously in the ATCL operations' systems to empower ATCL operate efficiently again. The efforts to restructure ATCLcontinued up to 2016 when the Government developedinexplicit program for restoring ATCL. The ATCL reestablishing program included buying of six new airplane somewhere in the range of 2016 and 2018, installment of obligations and arrangement of Startup capital, redesigning and revival of business frameworks. To execute this system, the Government bought six air creates which incorporate three Bombardier DASH8 Q400, whereby two airplane conveyed in September 2016 and one in June 2017; two -300 and one Boeing 787

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Dream liner conveyed among May and December 2018. This made ATCL to work the armada successfully with seven airplane

With improved fleet, ATCL is assertive to recover its reputation and position as a thoughtful competitor in the air transport market. The current ATCL fleet and network expansion program include destinations in Africa, Europe, Asia, and US. The company is operating with a mission “To provide a working environment for our employees to excel through constant training & development and supported by an effective reward and recognition program”.

1.1.3 Precision Air PLC Below is information about Precision Air Plc. as provided by Precision Air Plc. website, 2020.

Exactness,Precision Air Services Plc. was set up in 1993 as a Tanzanian private business carrier based at Julius Nyerere International Airport in Dar es Salaam. The aircraft is presently works booked service provider to more than 17 destinations inside and outside Tanzania. The Airline began as a private contract air Transport Company working a five-seater flute player Aztec airplane. Its beginning line of business for the most part included giving associations with sightseers visiting the rich characteristic attractions of , Ngorongoro Crater, in northern Tanzania, the Zanzibar Island in the Indian Ocean and different pieces of the nation from town as its base.

The huge idea of Tanzania attached with an expanding interest for air transport services as the nation in progress to grasp a free market economy drove Precision Air snared on working booked flights maintaining Arusha as its base. The organization began with the principal planned flights including a seven-seater one motor Cessna 207, one seven-seater Cessna 402, two eleven-seater Cessna 404s and the nineteen- seater LET 410 until mid-1990s when the aircraft introduced the greater and increasingly agreeable ATR armada. Exactness Air is working with of "Being the

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Airline of decision" and a crucial "Create and Provide Superior Air Transport Services that surpasses Customer desires."

The researcher chooses Precision Air PLC as a case study of this research due to various reasons which make this Airline Company to be relevant in conducting this study. First is due to the airline‟s main services which include; scheduled flights, chartered and cargo air services which are growing at an impressive rate. Besides is because of its services activity( self-dealing with and ground taking care of tasks) allowed in May 2009, by Tanzania Civil Aviation Authority (TCAA), a self-taking care of permit and ground taking care of tasks began toward the start of November, likewise an outsider ground taking care of permit from TCAA which demonstrates its endeavors to meet and surpass its client desire.

1.2 Problem statement Air transport has gotten one of the world's most huge industry as a principal immediate and circuitous boss that encourages the development of world's exchange and offers open doors for movement and the travel industry. Kathleen (2010) expressed that the verifiable improvement of air transport can be followed back to the fantasy about flying, in the eighteenth century with the advancement of the sight- seeing balloon. The development of early Air Transport industry covers the most significant headway in a genuinely based methodology of flying, starting from Da Vinci and his drawings of flying vehicles, over the Montgolfier's tourist balloon, the standards of flying in 1896. This was followed with the in fact based methodology that covers the various endeavors from Clement Ader, Otto Lilienthal up to the Wright siblings, who at long last in 1903 figured out how to fly with a vehicle heavier than air. At that point follows the start of business air transport in Europe and US between the two World Wars.

Air Transport has moved away from being very managed, government – claimed and sponsored method of transport run as open utility, towards an industry financial market. In light of this, the normal traveler air Transport has been developing at insignificant of 5 and 6 percent in the course of the most recent 40 years (ATAG, 7

2002). This development sway upon various regions, for example, expanded blockage at Airports and the need to extend the current limit, likewise operational issues, for example, flight-way the executives and air traffic the executives frameworks, client relations issues and emergencies, and the same which call a noteworthy difference in Airline Companies to fulfill its objective customers

Air Transport Service companies such as Airline companies are underneath persistent and forceful change while customers are becoming less loyal and more price sensitive and discerning; this situation is taken as a global trend and challenge in Aviation Air Transport service in today‟s business worldwide (Shaw, 2011).

On other hand customer dissatisfaction with the Airline industry has reported with high passenger complaint categories comprising flight problems, reservations and ticketing issues, ineffective services, flight fares, over sales, reimbursement/refunds, issues, customer service, smoking, matters related to credit, tour services, and alike (Stainer,2016)

The survival of any business entity is highly being subject to its customers because of their centrality and significance as taken as the lifeblood of any business oriented companies. Due to their significance and implication, customers perceived to have the right and power to demand high quality service to meet and/ or exceed their expectation. Inline to this, airlines performance was given greater publicity which led to increased customer awareness regarding airline quality and the means to file complaints.

Besides, passengers are presently aware of the results of other Airline companies just as the combination of air transport administration offered to them. Kotler and Armstrong (2001) saw that clients will in general worth the pointless consideration given to their requirements. They likewise welcome the endeavors made by specialist co-ops to meet their uncommon solicitation, this sign it is favorable for an association to find out about their clients since the more they know them; the better

8 they may be at serving them. The manner in which the client is dealt with can empower the association succeed or fall flat since clients hold the budgetary reason required by the organizations to endure. This directed most organizations to submit their restricted assets to scramble and go after clients.

TCAA (2016) noticed that Currently the quantity of Airline Companies in Tanzania expanded up to 21 Airlines working at the Julius Nyerere International Airport (JNIA), 58 Airports and in excess of 300 private airstrips in Tanzania held by mining and visit administrators as the result of new speculation happen in Tanzania Civil Aviation which quickens an expansion in travelers traffic by 62% in the previous five years, from 2.1m in 2010 to 3.5m in 2015 and make Tanzania Air transport the most wanted method of access in to Tanzania for worldwide guests and, in this manner the segment to be demonstrated both significant and vigorously depended upon.

By reviewing the need of the Aviation Air Transport Services in the nation, the Government of the United Republic of Tanzania took purposeful measures to improve air transport foundations including Airports, and reclamation the national Airline, Air Tanzania Corporation Limited (ATCL), through the securing of new air artworks to contend with other business lines as of now flying in the nation and figure out how to meet as well as surpass client needs. Tanzania Civil Aviation Authority (TCAA) has called attention to that the development in worldwide traveler's traffic has announced a normal of 7.27% per annum in the ongoing years while residential travelers have been developing at a pace of 17.93% per annum during a similar period. In this manner, so as to make this industry progressively dynamic in the nation, both key players are attempting to guarantee absolute consumer loyalty.

Therefore, this study explored customer satisfaction with Air transport Services in Tanzania by assessing and analyzing using ACSI Model. Two selected Aviation Air transport service companies (ATCL and Precision Air Plc.) were used as a case study to generalize the findings.

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1.3Research Objectives

1.3.1 Main Objective The study explored customer satisfaction with Air transport services in Tanzania.

1.3.2 Specific Objectives

i. To examine the eminence of Air Transport service quality dimension on customer satisfaction with ATCL and Precision Air Services ii. To investigate the upshot of external perception of Service Quality Management of internal products and services on customer satisfaction with ATCL and Precision Air Services. iii. To evaluate the effectiveness of customer Service – related product features strategies employed by ATCL and Precision Air Plc. to improve and promote satisfaction level among passengers. iv. To analyze customer perceived value (CPV) and profitability on ATCL and Precision Air Services

1.4 Research Questions

1.4.1 Main Question At what extent customer are satisfied with Air transport services in Tanzania?

1.4.2 Specific Questions i. What are the eminence of Air Transport service quality dimension on customer satisfaction with ATCL and Precision Air Services? ii. What are the upshot of external perception of Service Quality Management of internal products and services on customer satisfaction with ATCL and Precision Air Services?

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iii. To what extent customer Service – related product features strategies employed by ATCL and Precision Air Plc. are effective to improve and promote satisfaction level among passenger? iv. What is the customer perceived value (CPV) and Profitability in ATCL and Precision Air Services?

1.5 Purpose of the Study The purpose of this study was to explore the extent of customer Satisfaction by assessing and analyzing using American Customer Satisfaction Index (ACSI) model the quality of services on Air transport Services in Tanzania. The study also seeks to employ the specific objectives of this study to apprise the Airlines management and staff knowledge and skills on customer satisfaction.

1.5 Significance of the study According to the nature of research problem, there advantages of this research in several aspects which makes development of knowledge and succession to the organization. The following are significance of the research in different aspect The study enabled the researcher to apply conceptual knowledge attained from the classroom into practical manner. Therefore, it had facilitated to acquire new potential knowledge regarding the topic at hand. However, the study enlarged knowledge on how to conduct, write and present a research work in meaningful and suitable manner. Furthermore, this study has been used as a fulfillment for the award of Master of Science in Marketing Management from Mzumbe University. . This study can be used as a reference to other researchers who might conduct researches of the same and/ or related topic. The finding of this study is therefore providing a contribution to the existing body of knowledge on the subject of study. This study provides a clear understanding of customer satisfaction issues in Air transport services in Tanzania. Therefore the study help management, staff and other key players in the Air transport industry to acquire knowledge on how to retain their customers and even turn non-users of their services into users of their services. The study also provide the best practices and strategic ways of meeting and exceeding

11 customer expectations when offering Air transport services to create a long-term relationship with customer with a favorable corporate image.

Since the research was touched the organizations which are state owned, then it is important for the Government to look upon it to get better result for governing these organizations for the aim of serving people Finally, this study added theoretical knowledge with key explanations and justifications about customer satisfaction on Air Transport services especially in Tanzania context with a suggested model of studying customer satisfaction on macro.

1.7 Scope and Delimitation of the Study The study explored customer Satisfaction using ACSI model assessing the perceived quality, customer expectation, and perceived value of services on Air transport Services in Tanzania. The study was limited to the two selected Airlines (ATCL and Precision Air Plc.) located in Dar Es Salaam, Tanzania at Julius Nyerere International Airport (JNIAA) as their main hub.

1.8 Limitations Some respondents did not return the questionnaire despite one or two reminder; this situation affected the study negatively Furthermore, the data collection methods used on assessing customer satisfaction at the two selected Airline companies (ATCL and Precision Air PLC) had some margin of error. Robson (2002) pointed out that there four dangers to trustworthiness; first is a subject or participant error. For instance questionnaire accomplished at dissimilar times of the week may produce different results. The threat to reliability is the subject or participant bias. For example interviewees may be saying what they think about a particular aspect basing on what their boss want them to say. Third threat to reliability may have been observer error, and finally is the issue of observer bias with respect to the dissimilar ways of interpreting replies received from the study respondents. All of these threats to reliability may affect this study.

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To overcome these problems in this study, the researcher was engaged respondents in an interview at one time and administer a questionnaire at a different time to establish consistency in their respondent. Also, in order to avoid subject or participant bias, the researcher kept the anonymity of the study responds. Also to address the issue of observer error, the researcher introduced high degree of structure to interview guide. All of mentioned limitations much more depend on kind of research problem and the case study. Furthermore the issue of observer bias was addressed by standardizing the structure for interpreting replies from the study respondents. Lastly, the target sample size for this study was delimited to a sizeable seventy five (75) respondents. The researcher distributed more questionnaire than the sizeable sample in order to acquire the selected sample size.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction This chapter provides review of literature related to the study.It comprised of empirical reviews and theoretical review whereby definitions of different terms and concepts provided, and theories described and also provided studies related to customer satisfaction in airline industry. Finally, the conceptual framework generated from the independent variables towards dependent variables.

2.2 Theoretical review

2.2.1 Definition of terms

2.2.1.1 Customers These are individuals or group of people who buy and/or use goods and services offered; are the one who evaluates and ranks the products or services offered by the producer or service provider. Most of business relied upon its customers because are the source of revenues as a result if the company is not doing well on meeting and/exceeding its customer expectation, then customers attentiveness on its products or services offered diminishes. When the conditions are worthy, the company can manage to make greater profits and provides utmost attention to its customers, through matching the customer requirements in every way possible.

2.2.1.2 Customer Satisfaction

Consumer satisfaction involves the capacity of an association to meet or outperform clients' desires. It is a level of how products and services offered by an organization meet or outperform client desire. Customer satisfaction is likewise signifies the quantity of clients, or level of all out clients, whose affirmed involvement in a firm,

14 its items, or its services (evaluations) meet or surpasses expressed fulfillment objectives

Kotler (2003) contended that organizations need to screen and improve customer satisfaction. The higher the clients fulfilled, the higher the maintenance. This because of the way that acquiring new clients can cost five to multiple times more that the cost engaged with fulfilling and holding current clients

.2.2.1.3 Air Transport

Aircraft incorporates fixed-wing and rotating wing types, morph able wings, wing- less lifting bodies, just as lighter-than-air specialty, for example, inflatable‟s and carriers. There is an unmistakable monetary and, frequently social requirement for air transport. Air transport, once in a while known as Aviation alludes to the exercises including common flying performed by the certificated air transporters and general flight. This method of transport comprises

2.2.1.4 Customer Perceived Value (CPV)

Customer perceived value (CPV) is the contrast between the possible client's assessment of the considerable number of advantages and all the expenses of a contribution and the apparent other options. It is grounded on the change between what the client gets and what the individual gives for various possible decisions. The client gets benefits and accept costs. The advertiser can build the estimation of the client offering by some blend of levitation practical or enthusiastic advantages as well as decreasing at least one of the different kinds of expenses. The client who is choosing between two worth contributions, Value one (V-1) and worth two (V2), was analyze the proportion V1 :V2 and favor V1 if the proportion is bigger than one, favor V2 if the proportion is littler than one, and was uninterested if the proportion rises to one.

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2.2.1.5 Customer Profitability Kotler (2001) characterized a productive client as an individual, family, or organization that after some time yields an income stream that surpasses by a worthy sum the organization's cost stream of pulling in, selling, and adjusting that client.

Note that the accentuation is on the lifetime stream of income and cost, not on the benefit from a specific exchange. Client productivity can be evaluated independently, by advertise fragment, or by channel. Albeit numerous organizations measure consumer loyalty, most organizations neglect to gauge singular client productivity.

2.2.1.6 Quality Management Quality management involves an association wide procedure to unendingly refining the nature of all the association's practices, items, and administrations. The mission to abuse consumer loyalty controlled a few firms to embrace quality administration standards as quality is turning into the center confirmation of client faithfulness just as most grounded resistance against rivalry, and the main strategy to continued turn of events and profit. The push to create products that are more noteworthy and act in world markets made a few nations and gatherings of nations to perceive or grant prizes to organizations that speak to the best quality practices. Item and administration quality, consumer loyalty, and friends benefit are personally associated. More elevated levels of value bring about more significant levels of consumer loyalty, which bolster more significant expenses and (regularly) lower costs.

2.2.2The ACSI Model The ACSI model was developed at the university of Michigan Business School National Research center. The model uses a tested multi equation system to construct indices for customer expectation, perceived value, perceived quality, customer complaints, customer satisfaction, and customer loyalty (Johnson (1998).

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The ACSI model described that customer satisfaction has three antecedents; overall perceived quality should positively affect satisfaction. Similarly, customer‟s perception of the value they receive from products and services (service received relative to price paid) should positively affect satisfaction..

These expectations capture a firm‟s quality image on the basis of its past history performance, which anchor customer‟s evaluation of satisfaction in the vicinity of expectation. The predicted positive relationships from expectation to both perceived quality and perceived value capture a customer‟s ability to predict quality and value. The positive relationship from quality to value recognizes that quality is the major component of value and captures the degree to which customers equate or distinguish between the constructs(Bitner, 1990).

On the consequence of this model, Johnson (1998) pointed out that the primary effect of increased satisfaction should be a decrease in customer complaints and an increase in customer loyalty. An increase in customer loyalty and subsequent retention generally increases revenue and decreases costs over time, which increase profits. The estimated effect of customer complaints on customer loyalty provides important diagnostic information. Furthermore, a positive relationship suggests that a firm‟s or entire industry‟s complaints management systems effectively handle customer complaints to increase loyalty. But a negative relationship suggests that complaints handling is ineffective and opens the door for customer exit.

2.2.3The Expectancy Disconfirmation theory The hope disconfirmation hypothesis clarified that fulfillment increments as execution surpasses desires (a positive disconfirmation or hole) and diminishes as execution falls beneath desires (a negative disconfirmation or hole). This model perspectives consumer loyalty as how much saw items or administration execution affirms or disconfirms desires (Porter (2005).

These exchange explicit holes are collected into a general degree of consumer loyalty. As desires increment (holding execution steady), there is a positive

17 disconfirmation of desires and fulfillment increments. As desire expands (holding execution steady), there is a negative disconfirmation of desire and fulfillment diminishes. This involves more prominent execution of item offered whether are products or administrations make a positive disconfirmation while on other hand, lackluster showing of merchandise or administrations came about on negative disconfirmation..

Bodet (2008) brought up that to figure the holes; one essentially takes away the normal desires rating from the normal execution rating for every fulfillment driver just as the composite. Positive holes are relative satisfiers, and negative holes are relative disappoints. Along these lines, it is indispensable to take note of that there are fundamentally two different ways of investigating disconfirmation of desires. Initially, the surmised approach (subtractive methodology) and second the immediate methodology (abstract methodology). The subtractive methodology includes the calculation of the contrast among desires and assessments of execution. The gathered (subtractive) disconfirmation expect that the impacts of a post-experience correlation on fulfillment can be communicated as an element of numerical contrast between item execution and a relative norm. Tse and Wilton (1988) report that the subtractive methodology has discovered extensive help from concentrates in intellectual psychological research where mental factors communicated as numerical guidelines have been found to speak to human data forms over a wide assortment of circumstances. The abstract methodology then again, requires the utilization of synopsis critical scales to quantify disconfirmation, for example, superior to expected to more regrettable than anticipated. The computation of the distinction scores by the scientist was maintained a strategic distance from as the respondents can be Customer Satisfaction: Conceptual Issues asked straightforwardly the degree to which the administration experience surpassed, met or missed the mark concerning desires.

This hypothesis has been applied by advertising scientists in different investigations which inspect buyer's fulfillment levels. It is critical to remind that, the ACSI

18 method, used by certain scientists in evaluating customer's fulfillment), utilizes a comparable methodology to that of the disconfirmation approach.

2.2.4The Equity Theory As demonstrated by the Equity Theory, satisfaction exists when buyers see their yield/input extent as being sensible (upham et el, 2003). According to this speculation, whether or not an individual feels reasonably remunerated or not may depend upon different points of view including the cost paid, the favorable circumstances got, the time and effort depleted during the trade and the experience of past trades (Johnson 1998). This induces relating standard may take various contrasting structures. This speculation gives similarities to the Comparison Level Theory which suggests that bases of assessment used by purchasers in satisfaction choices may be some different option from wants. Worth theory of clients satisfaction is apparently not exactly equivalent to various theories, in that satisfaction is evaluated near with various social affairs (people) in an exchange and the consequences of all get-togethers having a comparable experience are considered. Lovelock et el. (2007) fought that esteem theory can offer much wealthier depiction of customer satisfaction in conditions that may not be discovered using traditional satisfaction models Clarified into Air Transport setting, the Equity hypothesis recommends that travelers look at apparent information yield (gains) in a social trade: if the traveler's benefit is not exactly their info (time, cash, and different costs), disappointment results (Shaw, 2011). Fulfillment is in this way, "a psychological condition of being adequately or inadequately remunerated" (Upham et el, 1998).

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The correlation may take different structures. The yield/input proportion for an assistance experience might be contrasted with the apparent net addition of some others, (for example, companions) who have encountered a similar offer (Kotler, 2004). As indicated by this hypothesis, fulfillment is viewed as a relative judgment that thinks about both the characteristics and advantages got through a buy just as the expenses and endeavors borne by a shopper to get that buy. Wensveen (2015) contended that if shoppers are less fulfilled and will in general have a more negative disposition toward an organization when they heard that different clients got a superior value arrangement and preferable assistance over them. At the end of the day, their impression of evenhanded treatment by the organization converted into fulfillment decisions and even influenced their future desires and buy aims. Value hypothesis utilized to consumer loyalty/disappointment has gotten acknowledged as an elective method to conceptualize how examinations work (Upham et el 1998).

2.2.5 The Performance Theory As indicated by Shaw (2011) desires are basically like a client's picture of an item or administration, which catches the degree of execution they can expect based on the past experience. This previous experience incorporates a client's own buy and utilization encounters just as wellsprings of data over which chiefs have more straightforward impact. Through different correspondence and advancement methodologies, clients can be educated, convinced, and even reminded about relevant execution data and likely item or administrations use setting. In spite of the fact that desires are significant, the essential predecessor or driver of fulfillment is seen execution. It was affirmed by (Wensveen, 2015) that when the item figure out how to offer all out utility to clients dependent on their requirements or needs can significantly quicken consumer loyalty which consequently help the organization to hold its clients henceforth amplify benefits.

At long last, estimating consumer loyalty, this exhibition impact must be separated into a lot of perceptible distinction and cost or cost components called fulfillment drivers. The suggestion is that assessment of consumer loyalty is kept up in the

20 region of desires. The presentation model likewise remembers a beneficial outcome of desire for impression of execution. This speaks to principally the capacity of desires or past execution data to foresee current execution levels. The impact additionally includes the capacity of solid desires to influence impression of execution Chon and Olsen (1991).

2.3Empirical Review The examination directed by Amoah and Nkurmah-Arkoh, (2017), entitled "Consumer loyalty with Service Delivery in the engine Insurance" the reason for this investigation was to survey the condition of consumer loyalty with administration conveyance, the component of administration conveyance, and recommended approaches to improve administration conveyance. To accomplish this reason, a contextual investigation configuration was utilized by including an engine protection firm by the analyst.

The findings revealed that consumer loyalty with quality conveyance can be thought as satisfactory. For the most part, clients are happy with reasonable period and terms of died strategy recharges, working hours, sound reliability programs, custom-made client consideration, understanding client needs and saying 'sorry' for bother to customers. Moreover, the investigation discoveries show that offering an incentive for cash is the component of administration conveyance and generally fundamental to customers. At last, to improve client care conveyance, players in the business need to receive the correct blend of strategies rehearsed in the propelled nations. The examination additionally proposes that organizations must train and prepare the offices or connection workplaces well and check material deficiencies to upgrade consumer loyalty.

Be that as it may, the examination led by Susana Amankwah and WasiamOhene-Adu (2011) entitled "Appraisal and Analysis of service quality and Customer Satisfaction" A contextual investigation of National Investment Bank Kumasi, Ghana. The reason for the investigation was to survey and dissect utilizing

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SERVQUAL model the nature of administrations and the degree of consumer loyalty's with the financial administrations. Scientists utilized a subjective examination approach, information was gathered through survey and meeting. Information introduction and examination were done in the understanding with the exploration questions and the casing of reference. At long last, discoveries and end were drawn with the suitable suggestions.

The discoveries of this examination uncovered that the quality execution of all tried quality measurements demonstrated to strongly affect consumer loyalty. Be that as it may, compassion, physical assets and affirmation were seen as of extraordinary criticalness to clients. The investigation recommended that esteem banking and development of administration portfolio to incorporate increasingly electronic financial items were the new assistance expected to improve consumer loyalty.

Besides, the investigation led by Mohamed Ahmed (2018) entitled "service Quality in Accounting Firms: its consequences for customer Satisfaction and Loyalty. A quantitative report dependent on the Swedish Listed Companies. The investigation looks to assess the service quality gave by banking firms in Swedish and decide the circumstance of its measurements, just as to investigate their immediate effect on the customer fulfillment and dedication. To accomplish this reason, a deductive and quantitative methodology with logical reason whereby the information was gathered through online survey from 450 recorded organizations bringing about an example of 58 respondents. The examination applied SERVPERF model to gauge the administration quality's measurements.

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Findings of the investigation uncovered that the nature of administrations is crucial part in any help industry. It was recommended that upgrading the nature of the administration creates consumer loyalty and unwaveringness thus that was permitting the specialist organization to address the progressions and difficulties in its business condition. Besides the investigation uncovered that because of expanding rivalry and expanding number of bookkeeping outrages, the specialist organizations in bookkeeping industry have strived to offer prevalent nature of administration to hold current clients and increasing new customers.

2.5 Conceptual Framework Figure 1 Conceptual framework developed to show the relationship and type of relationship between the independent and dependent variables of this study.

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Figure 2. 1: Conceptual framework model

INDEPENDENT VARIABLES DEPENDENT VARIABLE

Service Quality Dimension

 Reliability

 Empathy  Assurance  Responsiveness

 Tangibility

Customer Customer Perceived value satisfaction s  Preferential fare  Maximum stay conditions  Minimum Stay conditions  Advanced Purchase  fare

Service Quality management  Check-in  Punctuality  Cabin crew  Food and drink  Cabin environment

Customer Service- related product features strategies  Point - of – sales  Airport Services

 Communication services  In- flight services Source (Researcher, 2020)

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2.5.1 Description of the Conceptual framework The designed outlines show the relationship and sort of the relationship among factors to be examines.

From the model created, the general help quality ought to emphatically influence fulfillment decidedly. So also, customer's view of the worth they get from Air Transport services (quality got comparative with cost paid) ought to decidedly influence fulfillment. The general impact of significant worth versus quality on fulfillment demonstrates the significance of cost in customer's assessment of fulfillment. The anticipated positive connections from desire to both saw quality and saw esteem catch a customer's capacity to foresee quality and worth. The positive relationship from quality to esteem perceives that quality is the significant part of significant worth and catches how much clients compare or recognize the develops (Bitner, 1990).

Bodet (2007) contended that in service business, the clients and the front – line administration representative coordinates to make satisfaction. Successful communication, reciprocally, be dependent upon the aptitudes of cutting edge administration workers and on the service methodology backing these representatives. In this way fruitful assistance organizations concentrate on both their clients and their workers; they comprehend the administration benefit chain, which connections administration firm benefits with representative and consumer loyalty.

In this way, arriving at administration benefits and development objectives starts with dealing with the individuals who deal with clients. Kotler and Keller (2001) contended that a chain unbelievable for its remarkable client care, is likewise an amazing for its propelled and fulfilled representative (as workers are treated as the main clients of the administration gave); it is additionally accepted that glad clients starts with upbeat, committed, and enthusiastic workers.

A large portion of Air Transport Company's business is driven by word – of - mouth and client associations with organization workers, for example, ground dealing with officials, lodge teams or potentially Air hostless, client care officials and others.

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Along these lines keeping client glad truly requires keeping worker upbeat. It begins by enrolling the correct individuals and preparing them completely in client fundamentals. This makes the way of life that underlines on fulfilling and satisfying occupation obligations which in result makes consumer loyalty.

Greatness of Service Quality Dimensions

Reliability – Entails the ability to play out the guaranteed administration constantly and precisely. This measurement is made up with five ascribes to be measure, these traits comprises with, offering support as guaranteed, trustworthiness in taking care of clients' administration issues, likewise comprises with performing administrations right the first run through, offering types of assistance at the guaranteed time, and keeping up mistake free records

Responsiveness - Willingness to support clients and offer brief assistance. So as to gauge administration quality and pinpoint the degree of consumer loyalty in Air transport administrations, four traits are considered including keeping clients educated, offer brief support of clients, eagerness to support clients and status to react to clients' solicitations Assurance – Entails the information and kindness of representatives and their capacity to pass on trust and certainty. Four ascribes are essentially considered to gauge this component of administration. These properties incorporates workers who give trust in clients, causing clients to feel safe in their exchanges, representatives who are reliably affable, and workers who have the information to address client questions.

Tangibles – This measurement comprises with Physical offices, gear, and presence of staff. Specialist utilized four ascribes to gauge this component of administration quality offered including modern gear, outwardly engaging offices, employees who have a flawless, proficient appearance just as visually engaging materials related with the administration

Empathy - Involves mindful, individualized consideration the firm gives its clients. So as to inspect this component of administrations quality, five traits which incorporates giving clients singular consideration, likewise having representatives 26 who manage clients in a mindful style. Moreover, having the client's wellbeing on a basic level, Employees who comprehend the requirements of their clients, without overlooking advantageous business hours.

For every component of organization quality above, ACSI measures both the longing and impression of the organization. By then, all of the five estimations were weighted by customer importance, and the score for every estimation copied by the weighting. Following this, the Gap Score for every estimation is controlled by removing the Expectation score from the Perception score. A negative Gap score shows that the authentic help (the Perceived score) was not as much as what was ordinary (the Expectation score). Using ACSI, pro centers can get an indication of the level of nature of their tasks game plan, and highlight domains requiring improvement.

2.6 Research Gap Most examinations show that more elevated level of consumer satisfaction prompts more noteworthy client unwaveringness, which in turns bring about better organization execution. Different researchers, for example, Kotler and Keller (2001, Tayler and Baker, 1995) clarified increasingly about client relationship the board with its suggestions in client fulfillments by reviewing business organizations in different ventures however not examining in subtleties the part of consumer loyalty in Air Transport services.

Moreover, different examination contemplates directed by various specialists had generally centering to survey the condition of consumer satisfaction with service conveyance, the component of service conveyance, and proposed approaches to improve administration conveyance. These investigations were incredibly investigating consumer loyalty in assembling kind of business industry, money related industry and protection industry yet not giving any knowledge in the Aviation Air Transport Services.

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All things considered, various speculations illuminate the ideas of customer satisfaction and gives different suggestions on how organizations can make customer satisfaction, the significance of client fulfillments in business, and the deciding variables of consumer loyalty. These hypotheses have not clarifying progressively about consumer loyalty in Air Transport industry basing on its determinants, measurements and service benefit chain in Air Transport Service.

Thusly, this examination is expecting to investigate the degree of customer loyalty by evaluating and breaking down utilizing ACSI model the nature of services on Air transport Services in Tanzania. The investigation likewise looks to utilize the particular goals of this examination to advise the Airlines the executives and staff information and aptitudes on customer loyalty.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction This chapter presents the structure of the research study whereby it contains research design, different techniques including sampling; population of the study, sample size data collection and data analysis shows the frame work of the entire research at stage of findings

3.2 Research Approach This study utilized a mixed method of both quantitative and qualitative approaches. Quantitative approach is based on the measurement of quantity or amount. This approach provide statistic through the use of large scale surveys research using methods like questionnaire, structured interviews and observation ( Kothari, 2004). This approach was useful in this study because it enabled the researcher to reach large number of people, hence relevant information was easier obtained as expected. To make this approach more effective in this study, the approach was done through two ways, first the descriptive statistics describing the nature of the population and the second, the inferential statistics where statistical tests were applied. The purpose of using inferential statistics in this study was to form a data base from which to infer characteristic or relationships between explanatory and explained variables. This means the researcher was survey the sample of population to be studied, questioned or observed to determine its characteristics, and then to be inferred the population of the same characteristics. In addition, quantitative methodology depends on the estimation of amount or sum. This methodology give measurement using huge scope overviews research utilizing strategies like poll, organized meetings and perception ( Kothari, 2004). This approach was helpful in this examination since it empowered the researcher to arrive at enormous number of individuals, henceforth significant data was simpler acquired true to form. To make this methodology increasingly compelling in this examination,

29 the methodology was done through two different ways, first the clear insights depicting the idea of the populace and the second, the inferential measurements where factual tests were applied. The motivation behind utilizing inferential insights in this investigation was to frame an information base from which to induce trademark or connections among logical and clarified factors. This implies the scientist was overview the example of populace to be examined, addressed or seen to decide its qualities and afterward to be deduced the number of inhabitants in similar attributes. Qualitative research design embodies a view of social reality as an external objective reality (Bryman and Bell, 20015).The study problem also requires listening and observation hence qualitative research was appropriate to this study

3.3 Research Design Research design is a plan of action involving the methods and procedures for the collection, measurement and analysis of data, Kothari (2004).In this study the researcher was employ cross-sectional Research design, a case study design whereby ATCL and Precision Air Plc. studied.

3.4 Study Area and Population

3.4.1 Study Area This investigation was directed at JNNIA (Julius Nyerere International Airport) with the two chose Airlines Companies in particular Air Tanzania Corporation Limited (ATCL) and Precision Air PLC, Temeke Municipal, Dar es Salaam, Tanzania. The rules for choice depends on simple openness of information on the grounds that the two chose Airline organizations are mostly worked at JNNIA (Julius Nyerere International Airport) as their fundamental center point in offering Air Transport service in Tanzania. Along these lines the scientist was advantageously have the option to reach focused on respondents effectively for information assortment

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.3.4.2 Study Population

A population is a gathering of people, articles or things from which tests are taken for estimation. It comprises whole gathering of individual or components that share in any event one for all intents and purpose (Bryman and Bell, 2015). The number of population in this examination comprised current and potential Customers utilized flight administrations inside his two closest years, as indicated by TCAA (2020) the all-out customers were 3,500,000 clients of Air Transport Services from ATCL and Precision Air PLC, Customer Services Agents, and key players in Air transport administrations in Tanzania.

3.4 Sampling and Sampling Procedure

A sample is a limited piece of a factual populace whose properties are concentrated to pick up data about the entire Bryman, (2004). When managing individuals, it tends to be characterized as a lot of respondents (individuals) chose from a bigger populace with the end goal of a review. This empowered researchers to assess some obscure trait of the populace.

3.4.1 Sample size In using PLS-SEM, sample can be selected by using rule of thumb which states that the minimum sample size should be ten times the maximum number of structural paths pointing anywhere from independent variable to dependent variable. Therefore the minimum sample size of this study was supposed to be 40 respondents as per the conceptual framework of this study, however the actual sample size selected for this study is contained 75 respondents from two selected Airlines.

3.4.2 Sampling Techniques Sampling procedure alludes to a procedure, or strategy of choosing a reasonable sample, or an agent part of a populace to decide boundaries or qualities of the entire populace, Kothari (2004). The fundamental Purpose of testing is to reach determination about populaces from tests. This investigation was utilized both

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Probability and Non probability procedures to choose the example size from the examination populace.

The researcher utilized probabilitymethods to the examination components or unit of the populace (or testing outline) to give an equivalent possibility of being chosen. This was utilized to the passengers. On other hand, a non-probability method was utilized to choose the sample which was not being founded on irregular inspecting, and the outcomes can't be summed up to the populace. The proposed examining method for this investigation comprises:-

3.4.2.1 Simple Random Sampling

This is a sort of likelihood examining, which includes the sample being drawn from enormous populace. In this technique every component has the equivalent possibility of being remembered for an example and is without predisposition. The examination component can't come twice as test and each individual is speaking to enormous segment of populace, Wilkinson and Bhandari (2002).This inspecting procedure was utilized to choose test from client assistance officials and other staff managing clients from the chose Air Transport Service Companies

3.4.2.2 Convenient Sampling This is a sort of non-probability sampling, which includes the sample being drawn from that piece of the populace which is near hand and is most promptly accessible to take part. The researcher utilizing such method can't logically make speculations about the all-out populace from this sample since it would not be agent enough, Kothari, (2004). This technique was used to select sample from Customers and/or passengers, customer Relations agents within Airlines Companies.

3.4.4 Judgmental Sampling (Purposive Sample) Wilkinson and Bhandari (2002) noted that in Judgmental sampling, the sample elements are chosen purposely just because it is expected that they can serve the research propose. This sampling technique was used in this study to select the sample 32 from Marketing Managers and or officers, as well as members of the management from the selected Air Transport services companies.

3.5 Data Collection

3.5.1 Primary Data

These are first and fresh data gathered in order to help in solving the problem at hand. The Researcher washas collected the data from the respondents and with the response of sample selected; the data was drawn from them as the first hand data. This type of data was collected through the following data collection techniques.

3.5.1.1 Interview

The interview technique includes addressing or talking about specific issues or topic with individuals. This technique includes introduction of oral-verbal improvements and answer as far as oral verbal reaction. This technique utilized through phone or individual meeting (Kothari, 2004). In this study, a structured interview was utilized to gather the information. The researcher was set up a rundown of explicit inquiries and poses to the sources such arrangement of inquiries and check boxes basing on their reactions. Besides, the researcher was painstakingly utilized this strategy as a decent method of getting to individuals' discernment, meaning of circumstances and development of the real world. The interview technique was material to gather information from the individuals from customers or potentially officials, and key players from the Air Transport industry.

3.5.1.2 Questionnaires

A questionnaire comprises of various questions printed or composed in an unequivocal request on a structure or a lot of structures. A poll can be sent or circulated to respondents who are required to peruse, comprehend, and record an answer. The researcher utilized this technique since it was give a space to arrive at the objective respondents helpfully. Besides, the researcher used questionnaire to 33 gather information from the passengers since it empowers to cover enormous questions requiring little to no effort, they are liberated from predisposition and gave respondents satisfactory opportunity to offer all around considered responses and just on the grounds that these inquiries requests to be replied by any individual who realizes how to peruse and compose.

3.5.2 Secondary Data

Kothari (2004) defined secondary data as information that already exists, having been collected for other purposes by other Researchers. In this study, secondary data was gathered through the following method.

3.5.2.1 Documentary review

This includes strategy for experiencing association records, for example, encircled letters, reminders, magazines, diaries, and handouts, FAQs, fliers, business reports and whatever other records that accommodated the vital data that seen to be applicable to the examination, Kothari (2004). The degree of Customer fulfillment on Transport Services dependent on organizations distributions, (for example, reports, sites, and open explanations which recommend the organizations perceive the pattern towards higher social interest from general society, and that they are effectively seeking after a socially capable picture to meet and surpass client desire.

3.5.2.2 Internet Sources It consists with the use of online sources on gathering information relating to the topic of study from reputable organizations or firms. This includes websites for example website of Tanzania Civil Aviation Authority (TCAA), Air Tanzania Corporation) ATCL) website, IATA website, National Bureau of Statistic and so on.

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3.6 Data Analysis and Processing

3.6.1 Data Analysis The analysis of data requires a number of closely related operations such as establishment of categories. However, analysis may therefore be categories as descriptive analysis and inferential analysis, Wilkinson and Bhandari (2002).The researcher used statistical method, grouping of data according to accuracy, date of collection and the sources used. In order to get best results the researcher was categorize the obtained data according to number and percentages by use of tables. Answers to in-depth interviews were analyzed by identifying key statements from the interviews, and common characteristics and attitudes identified. Then researcher tabulated the data and develops frequency distributions. Finally data was analyzed by using PLS-SEM (Partial Least square, a structural equation modeling) technique for modeling the relationship between variables. The ACSI model was used to predict the value of one variable (the dependent variable) on the basis of other variables (the independent variables) of this study.

3.6.2 Data processing

Data handling is the control of information into progressively helpful structure. Information preparing incorporates numerical figuring as well as activities, for example, the grouping of information and the transmission of information starting with one spot then onto the next, (Kothari, 2004). As a rule, this investigation applied worthy tasks frameworks performed by some kind of machine or PC, notwithstanding some of them could likewise be done physically. Information preparing framework alludes to the gear or gadgets and methods by which the outcome is accomplished. The researcher utilized SPSS and Smart PLS 3 to process gathered information.

3.6.3 Data Presentation The study applied tabulation on presenting the data from the study. Tabulation is a part of technical procedure whereby the researcher put the classified data into the

35 form of tables. The unwieldy data was carefully condensed into a few manageable groups and tables for effective and clear presentation. On other hand, graphs and pie charts was used to present the data. Finally, percentages and semantic explanation was used to present analyzed data of this study.

3.7 Construct Reliability and Validity

3.7.1 Internal Reliability Cronbanch‟s alpha and composite reliability were used to measure internal reliability. Composite reliability was used to test the reliability of the construct, and cronbach‟s alpha was used to test the reliability of the items. Wong (2003) argued that cronbach‟s alpha provides a conservatives outcome for PLS-SEM; also researchers suggested composite reliability as an alternative measure and a satisfactory reliable value is between 0.60 and 0.95.

3.7.2 Discriminant Validity The discriminant validity was tested by taking the square root of AVE, which should be larger than the latent variable correlations (LVC). Both cross-loading and Fornell- Lacker criterion were used, should for cross loading examination, each indicator loading to its latent constructs should be higher than constructs.

3.7 Ethical consideration

Morals have been delicate issue in research so as to guarantee there is no further unsafe or enduring results to anybody associated with research forms (Wilkinson and Bhandari, 2002).Subsequently the investigation was consider moral thought by beginning with clarifying the advantage the examination to respondents; guaranteeing respondent secrecy and acquiring respondent's educated assent particularly if there should be an occurrence of vis-à-vis meet that needs consent.

3.8 Conclusion These systematic procedures was deliberately utilized and followed by the researcher as the guide and approach to get significant information, decipher such information in a satisfactory way so as to come out with genuine discoveries. The methodology 36 under this part helped the scientist to direct the investigation accurately and keep away from any indication of mistakes during the examination.

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CHAPTER FOUR

PRESENTATION OF FINDINGS

4. Introduction This chapter provides an over view of the empirical data collected from 75 respondents and calculated by SMART PLS 3 program. The overall findings are presented through various statistical tools such as frequency tables and descriptive statistical. This study also presents the results based on four study objectives separately.

4.1 Descriptive Findings and Results Descriptive statistic help researcher to obtain a brief and comprehensive overview of the collected data. This Descriptive findings presents the demographic results of the participants in this study N=75.

4.1.1 The Sample’s Participants Frequencies

Table 1 presents the frequency of the sample‟s participant in Air Transport Services. Based on table 1 there are 75 participants. Most of them are customers who used Air Transport Services in Tanzania and can accurately evaluate customer satisfaction from the Airline Companies namely Air Tanzania Company (ATCL) and Precision Air Plc.

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Table 4. 1:Participant’s Frequency

Marital Highest Type of Length of time Gender Age Status Education Customer of using Air range Qualification Transport Services Valid 75 75 75 75 75 75 N Missing 0 0 0 0 0 0

Source: Researcher, (2020)

4.1.2 Marital Status.

Table 2 presents the marital status of the respondents of this study. Most of the respondents are married who constituted 46.7% of the total sample size. 22 (29.3%) are Single, 10 (13.3%) are in a long term relation, 5(6.7%) are divorced, and 3(4%) are widow. Table 4. 2: Marital Status of Respondents

Frequency Percent Valid Percent Cumulative Percent Married 35 46.7 46.7 46.7 Single 22 29.3 29.3 76.0 Widow 3 4.0 4.0 80.0 Valid Long term Relation 10 13.3 13.3 93.3 Divorced 5 6.7 6.7 100.0 Total 75 100.0 100.0

Source: Researcher, (2020)

4.1.3 Highest Education Qualification Table 3 presents the highest education qualification of respondents. Study findings indicates that most of the respondents 26(34.7%) are degree holders, 19(25.3%) are Post-graduate degree holders, 16 (21.3%) are Diploma/Highest Diploma holders, 10(13.3%) are Secondary/ Technical Vocation, and 4(5.3%) are primary school holders. 39

Table 4. 3: Highest Education Qualification

Frequency Percent Valid Percent Cumulative Percent Primary 4 5.3 5.3 5.3 Secondary/ Technical 10 13.3 13.3 18.7 Vocation Valid Degree 26 34.7 34.7 53.3 Diploma/Highest Diploma 16 21.3 21.3 74.7 Post-graduate Degree 19 25.3 25.3 100.0 Total 75 100.0 100.0

Source :Researcher, (2020)

4.1.4 Type of Customer Table 5 presents the type of customers who responded on the study questionnaire. In this study, 50(66.7%) respondents were individual or consumers of Air Transport Services in Tanzania, and 25(33.3%) respondents were business customers (industrial customers).

Table 4. 4: Type of Customer

Frequency Percent Valid Percent Cumulative Percent Individual 50 66.7 66.7 66.7 Valid Business 25 33.3 33.3 100.0 Total 75 100.0 100.0

Source: Research, (2020)

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4.1.5 Length of Using Air Transport Services Table 5 presents the length of using Air Transport service of the participants of this study. Most of the participants 35(46.7) used Air Transport service within 1-4 years, 18(24%) used Air Transport services longer than 8years, 11(14.7) used Air Transport Service within 5-8 years, and 11(14.7%) used Air Transport less than a year.

Table 4. 5: Length of time of using Air Transport Services

Frequency Percent Valid Percent Cumulative Percent Less than 1 Year 11 14.7 14.7 14.7 1-4 Years 35 46.7 46.7 61.3 Valid 5-8 Years 11 14.7 14.7 76.0 Longer than 8 Years 18 24.0 24.0 100.0 Total 75 100.0 100.0

Source: Researcher, (2020)

4.1.6 Gander Table 6 presents gender of respondents where by 53 (70.7%) respondents are male and 22(29.3%) respondents are female Table 4. 6: Gender of respondents

Frequency Percent Valid Percent Cumulative Percent Male 53 70.7 70.7 70.7 Valid Female 22 29.3 29.3 100.0 Total 75 100.0 100.0

Source: Researcher, (2020)

4.1.7 Age range Table 7 presents age range of respondents whereby 27(36%) respondents aged between 26-35 years old, also 23(30.7%) respondents aged between 36-45 years old,

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15(20%) aged between 46-55 years old, 9(12%) respondents aged between 18-25 years old, and 1(1.3%) respondent aged between 56-65 years old.

Table 4. 7: Age range of respondents

Frequency Percent Valid Percent Cumulative Percent 18-25 9 12.0 12.0 12.0 26-35 27 36.0 36.0 48.0 36-45 23 30.7 30.7 78.7 Valid 46-55 15 20.0 20.0 98.7 56-65 1 1.3 1.3 100.0 Total 75 100.0 100.0

Source: Researcher, (2020)

4.2 Measurement Model In this study, the model is run for the indicators and constructs reliability and validity under the estimation model. At that point way coefficients of the second – request develops is checked under the basic model. Becker et all. (2012) called attention to detailing pointer loadings, AVE, composite dependability, discriminate legitimacy, for first intelligent builds, and indicators loads, the importance of loads, multicollinearity of pointers for the second – request developmental builds.

4.2.1 Construct Reliability and Validity Cronbanch‟s alpha and composite reliability is used to measure internal reliability. Composite reliability is used to test the reliability of the construct, and cronbach‟s alpha is used to test the reliability of the items. Wong (2003) argued that cronbach‟s alpha provides a conservatives outcome for PLS-SEM; also researchers suggested composite reliability as an alternative measure and a satisfactory reliable value is between 0.60 and 0.95.

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Table 4.8 presents the results of the internal reliability of this reflective constructs. All study reflective constructs have a value above 0.7 that confirms strong internal reliability.

Cronbanch’s Rho_A Composite Average Variance Alpha Reliability Extracted(AVE) CPV 0.874 0.878 0.905 0.613 CS 0.876 0.878 0.903 0.538 CSRF 0.871 0.877 0.901 0.565 QM 0.942 0.946 0.950 0.612 SD 0.095 0.019 0.104 0.249

Source: Researcher, (2020)

4.2.2 Discriminant Validity The discriminant validity was tested by taking the square root of AVE, which should be larger than the latent variable correlations (LVC). Both cross-loading and Fornell- Lacker criterion were used, should for cross loading examination, each indicator loading to its latent constructs should be higher than constructs.

Table 4.9 shows the cross-loading of all indicator items with each construct. The items loading of the constructs have higher value that loading on other constructs. Both of these findings confirm the strong discriminant validity of the reflective constructs.

CPV CS CSRF QM SD CPV CS 0.864 CSRF 0.588 0.751 QM 0.752 0.693 0.722 SD 0.714 0.485 0.621 0.682 Source: Researcher, (2020)

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4.3 Structural Model The structural modal was evaluated to draw the conclusion. In this study, three things was evaluated namely collinierity, coefficient of determinants (R2), and the path coefficient between the constructs.

4.3.1 Collinearity Assessment Variance inflation factor (VIF) was used to assess Collinearity, for which the value of 5 or above indicates problem. Also a maximum VIF should be below 10, but for a more rigorous test should be below 3.30. in this study, collinearity assessment of our model shows that the construct values of independent variables are below 3.30.

Table 4. 8: Collinearity Statistics (VIF)

CPV CS QM CSRF SD CPV 1.928 CS CSRF 1.850 QM 2.594 SD 1.069

Source: Researcher, (2020)

4.3.2 The coefficient of determination (R2) R2 value of 0.25, 0.50, and 0.70 are referred to as weak, moderate, and strong coefficient of determination, respectively. In this study, customer Perceived value (CPV) can explain 55.8% of variation of customer satisfaction in Air Transport Services. Customer service related programs explains 36.3% of customer satisfaction in Air Transport Services. Service Quality explains 1.8% of customer satisfaction with Air Transport services. The eminence of Service Dimension explains 0.02% of customer satisfaction with Air Transport services in Tanzania.

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Figure 4. 1: IPM PLS Model results

Source: Researcher, (2020)

4.3.3 Path coefficients

Path coefficients in the PLS-SEM are checked for the relationship between constructs and significance level. Table 11 shows that quality service (QM) strongly affects the degree of customer satisfaction (β = 0.120, t = 0.151, p < 0.880); however,

45 customer perceived value (CPV) has strong significant effect on customer satisfaction (β = 0.121, t = 4.617, p < 0.000). Service dimensions (SD) has significant effect on customer satisfaction (β = 0.090, t = 0.026, p < 0.979); and customer service related programs (CSRF) has a strong significant effect on customer satisfaction (β = 0.086, t = 0.4.239, p < 0.000).

Table 4. 9: T-Statistics and P Value for convergent validity of constructs Original Sample Standard T Statistic P Values Sample mean Deviation CSRF 0.363 0.386 0.086 4.239 0.000 CS QM 0.018 0.007 0.120 0.151 0.880 CS SD 0.002 0.063 0.090 0.026 0.979 CS CPV 0.558 0.540 0.121 4.617 0.000 CS

Source: Researcher, (2020)

4.4 Importance - Performance Map analysis

Importance MapAnalysis (IPMA) is otherwise called significance - execution examination, or need map investigation. It is valuable devices in PLS-SEM to recognize the predecessor builds‟ relative significance in forming a specific objective construct. All the more explicitly, for a focusing on develop, the IPMA contrasts the forerunner builds' relative significance (all out impacts) and the normal estimations of the idle variable scores (execution) to feature huge territories of enhancements for directors. For this study model, the researcher has done five IPMA; first one for the expectation of service quality (QM), second one for the customer perceived value (CPV), third one for service dimensions (SD), fourth one for customer service related programs (CSRF), and last one for satisfaction.

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4.4.1 IPM for Customer Perceived Value on Air Transport Services in Tanzania Figure 1 shows that Customer perceived value (CPV) indicators have relatively higher performance. These variables have high importance effects (total effects) whereby Truthfulness in minimum stay condition (total effect =0.824), truthfulness of Advanced purchase (total effect =0.789), truthfulness of maximum Stay Condition (total effect = 0.793), advantage on standby fare (total effect = 0.786), remedial procedures for delayed or missing baggage (total effect =0.788), and efficiency of preferential fare (total effect = 0.713) on customer satisfaction with Air Transport Services in Tanzania. Customer perceived value (CPV) as a higher order construct of customer Satisfaction performs higher with more effects (total effects = 0.558) on customer satisfaction with Air Transport services in Tanzania.

4.4.2 IPM for Customer Service Related Programs features (CSRF)

Study findings on Figure 1 shows that all indicators of Customer services related programs designed (CSRF) have reasonably higher performance on customer Satisfaction with Air Transport Services in Tanzania. These variables have high importance effects (total effects) whereby Ticketing programs and efficiency of Sales point-of-sales program (total effect =0.794), Customer communication program (total effect =0.665), providing visually appealing process (total effect = 0.807), Having travel related partners such as car rental, travel insurance, hotels (total effect = 0.773), variety and choice of in-flight entertainment facilities (total effect =0.728), modern facilities and frequent cabin service rounds by flights attendants (total effect = 0.771), and knowledgeable and skillful provision of service with sound loyalty program to recognize frequent customer( total effect = 0.765) on customer satisfaction with Air Transport Services in Tanzania. On the contrary, Customer Service Related Programs (CSRF) as an order construct of customer Satisfaction performs higher with further effects (total effects = 0.363) on customer satisfaction with Air Transport services in Tanzania.

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4.4.3 IPM for service Quality management Figure 1 shows that all Air Transport service quality indicators perform higher (performance = 0.880). In terms of punctuality of departure (total effect =0.773), easy of locating check-in (total effect = 0.715), overall food and drinks (total effect = 0.759), seat comfort (total effect 0.745), frequent cabin service rounds by (total effect = 0.737), cleanliness of toilets (total effect =0704), legroom (total effect = 0.842), efficiency of check-in process and courtesy of check-in staff (total effect 0.726), cabin temperature (total effect = 0.788), variety and quantity of in-flight alcoholic drink choice (total effect = 0.818), politeness, friendliness and attitudes of employee (total effect =0.842). The findings of this study divulge that service quality (SD) construct has positive effects and perform with a total effect of 0.018 on customer satisfaction.

4.4.4 IPM for the eminence of Service Dimension

Figure 1 shows that all Air Transport service dimension indicators perform more or less higher (performance = 0.002). Based on image (total effect =0.884), followed by reliability (total effect = 0.442), tangibles (total effect = 0.125), and responsiveness (total effect 0.024). service dimension construct has less effects and performance (total effect = 0.002) on customer satisfaction with Air Transport Services in Tanzania.

4.4.5 IPMA for Customer Satisfaction

Table 12 shows that all construct perform more or less high (performance ≊ 0.558). However based Customer Perceived value (CPV) (total effects =0.558), followed by Customer Service Related programs (CSRF) (total effects = 0.363), then Service quality (SD) (total effects = 0.018), and eminence of Service dimensions (SD) (total effects = 0.002).

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Table 4. 10: Total effects

CPV CS QM CSRF SD CPV 0.558 CS CSRF 0.363 QM 0.018 SD 0.002

Source: Researcher, (2020

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CHAPTER FIVE

CONCLUSION, DISCUSSION AND RECOMMENDATION

5.1 Introduction The main issue addressed in this study is an exploration of customer satisfaction with Air transport services in Tanzania. The results of this present study is discussed as per specific objectives and by recalling customer Satisfaction measurement model

5.2 DISCUSSION

5.2.1 To investigate the upshot of external perception of Service Quality Management of internal products and services with customer satisfaction in ATCL and Precision Air Services. The result of external perception of service quality management of internal products and services with customer satisfaction of the present study for ATCL and Precision Air, affirm the theory that more substantial levels of nature of product or/and service prompts more significant level of customer satisfaction (Johnson, 1998) in light of the fact that the customer give higher level of fulfillment and higher level of understanding that Airline organization offered quality service; along these lines finishing the affirmation to the way that, connection between customer satisfaction and service quality was certain from ATCL and Precision Air results.

Check-in services, food and drink quality and quantity, punctuality, cabin crew services, and cabin environment were the attributes substituted on external perception of service quality management of internal products and services with customer satisfaction in this present study for ATCL and Precision Air. The Cronbanch‟s alpha and composite reliability results in table 8 explained in customer satisfaction is 0.942. This means that the model is able to explain 94.2 percent of reliability and variation in satisfaction across passengers of ATCL and Precision Air Plc. This relatively high performance can be traced to several aspects of the Measurement system and model.

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The estimated impacts for the substituted drivers are illustrated on figure 1. As far satisfaction and service quality, the performance measures are presented on 0 to 100 points indices and the impact score represent effect size and the level is weighted index of the attribute values. The communication services has by far the largest impact on satisfaction (0.862), followed by cabin environment (0.818), easy check-in process (0.788), punctuality in departure (0.773), seat comfort (0.745), cabin crew services (0.737), legroom (0.726), efficiency of check-in (0.715), and cleanliness of toilets (0.704). In contrast, performance is highest on the quality of communication services (86.2) followed by cabin environment (81.8)easy check-in process (78.8), punctuality in departure (77.3), seat comfort (74.5), cabin crew services (73.7), legroom (72.6), efficiency of check-in (71.5), and cleanliness of toilets (70.4). Therefore, quality of communication services, cabin environment, easy check-in process, and punctuality are the primary drivers of satisfaction. The remaining drivers had also greater effect, hence ATCL and precision Air must classify them into strategic satisfaction matrix and set priority for improvement. This requires managers to make judgments using the information provided.

The cabin crew is a relative strength for ATCL and Precision Air (moderate impact, high performance). Check in, food and drinks, punctuality, cleanliness of toilets and legroom all are classified as relatively inconsequential. Money used to improve these benefits would not be well spent. Punctuality is more curious in this regard than check- in and foods and drinks. It may be the case that customers attribute the causes of punctual or late departure to being beyond ATCL and Precision Air control.

The cabin environment is more essential to improve. The estimation reveal that, of the five key attributes used to measure the cabin environment , seat comfort carries the most weight, cleanliness of toilets receive the least weight and the other attributes receive a middle weight. Rated attribute performance is higher for cleanliness of the toilets and lowest for cabin temperature, with the other three attributes in the middle. Therefore, from the implementation stand of point, ATCL and Precision Air has important information on how to go about improving the cabin environment; improve seat comfort, and keep the cabin temperature at a more comfortable level.

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Cost consideration is critical here, as managers must then decide which improvements are implementable. Whereas cabin temperature may be easier to monitor and control, improving seat comfort may require costly infrastructure changes.

ATCL and Precision Air recognize that its customer‟s satisfaction measurement system, while providing important insights and directions for quality improvements, needed to be improved. This result conformed to the theory that perceived service quality is a part of customer satisfaction (Kotler and Armstrong, 2001) and the meaning of customer satisfaction which involves the capacity of an organization to meet or surpass clients' desires. It is a proportion of how product and services offered by an organization meet or outperform client desire; since service quality has a most elevated rate as purpose behind satisfaction of passengers at ATCL and Precision Air Plc.

The results of the current study additionally affirm different investigations that there is a connection between customer satisfaction and service quality. They additionally conform to the proposal of (Upham (2003) and Johnson (1998) that customer satisfaction depends fair and square of service quality that is given by the specified organization. As confirmed to the clarification, the results of the current investigation about the upshot of the perception of service quality management of internal product with customer satisfaction affirm to the findings of Amankwah and WasiamOhene- Adu (2011) that there is certain connection between service quality and customer loyalty since when seen service quality is high then it was lead to increment in customer satisfaction. Passengers of the whole two chose Airline had most elevated level of "Equivalent to Expected" as an assistance quality rating which connote the end result of service quality management on customer satisfaction.

In wide-ranging sight of the situation, it could be seen that there outstanding weighty translation process to bridge customer‟s external perception of quality and satisfaction with internal product and service development and maintenance processes. The present study provides guidelines for how to go about improving quality internally by recalling ACSM model. The attribute weights, which again 52 capture the degree to which improvement on particular product or service attributes, enhance performance on key customer benefits (Upham et el, 2003).

Improvement in these concrete attributes for ATCL and Precision Air must still be translated into internal design requirement and parts characteristics, process operations, and production or service requirement. This confirm the idea of Johnson (1998) that Quality function deployment (QFD) and its house quality as an important decision logic transcends the priority setting process in both satisfaction modeling and QFD resources must be deployed to improve those attributes, characteristics, or internal process that are important to improve customer satisfaction and on which a product or service‟s performance is poor.

5.2.2 To examine the eminence of Air Transport service quality dimension on customer satisfaction in ATCL and Precision Air Services .The study results shows that customers of ATCL and Precision Air Plc. were less satisfied with Air Transport Services because of service quality dimensions. The findings indicates a distinctive meaning for service quality dimensions in the two selected Airline Companies which were linked to the ACSImodelconfirming the theory that customer satisfaction is a result of service quality dimension that reflects customer‟s perception of assurance, empathy, reliability, and tangibles” Johnson (1998)

Reliability was an attribute that was applicable in the two selected organization in this study. The found result displayed in figure 1 indicates that reliability had a significant relationship with service quality and customer satisfaction at ATCL and Precision Air Plc. Reliability alludes to the capacity to play out the guaranteed administration constantly and precisely (Wensveen, 2015); the attributes that were substituted for reliability in this study such as “performing the services right the first time”, “on-time performance of scheduled flight “ and courtesy of check-in staff” explain reliability be meaningfully related to service quality and customer satisfaction for ATCL and Precision Air Plc. This means that reliability is a valid and compulsory attribute in Air Transport services which ATCL and Precision Air

53 can employ effectively to make customers use and get satisfied with their services offered.

Responsiveness was another attribute valid to the two selected Airline companies in this study (Figure 1). The study findings revealed that responsiveness had a substantial affiliation with customer satisfaction for ATCL and Precision Air Plc. Services. Based on the definition of responsiveness which means the willingness to help customers and provide prompt services (Wensveen, 2015); the attributes that were substituted for responsiveness from the two selected Airlines including “transfer services and efficiency at departure”, “providing ground handling/ in-flight services consistently”, and convenient flight scheduling for both ATCL and Precision Air explain that responsiveness has substantial affiliation with customer satisfaction.

The result indicates that the two Airlines had designed supportive ground handling and or in-flight services consistently which make more customer to meet their expectation. Furthermore, convenient flight scheduling made more customers be less satisfied with Air Transport Services offered by the two selected Airlines because the findings indicates that majority customers were not happy with flight scheduling.

This could mean that customers see it as an essential attribute to make them use Air Transport Services at ATCL and/or Precision Air Plc. Also Transfer services and efficiency of departure had seen as an important reason for satisfaction according to the customers; moreover, politeness, friendliness and attitudes of employee such as Cabin crew is the basic key to meet and exceed customer expectation

Empathy was also among the attributes that was applied to the two selected Airline companies in this study. As a valid attribute, empathy had a substantial affiliation with customer satisfaction at ATCL and Precision Air Plc. Going back to the delineation of empathy which means caring individual attention, the firm provides to its customers (Wensveen, 2015); then the shared attribute substituted to empathy which were “sincere and responsive attitude to passenger”, sincerity and patient in solving customers problem” “ spontaneous care and concern for passenger‟s needs” and employee confidence to passengers made more customers to be satisfied. The

54 finds also revealed that most of the customers were not had negative feeling about the staff.

.Assurance was a service dimension applied to both selected Airline companies in this study and it was found a valid attribute for both ATCL and Precision Air Plc.; and had a substantial affiliation with customer satisfaction. Evoking back the demarcation of assurance that entails knowledge and courtesy of employee and their ability to inspire trust and confidence (Wensveen, 2015); the attributes substituted for assurance were “competent and skillful staff to deal with customer issues” as well as “safety performance of Airline”; all this explains that customer treated this attribute as a compulsory and necessary to use Air transport service.

Tangibility was a service dimension applied on ATCL and Precision Air for this investigation. Unmistakable was discovered a legitimate variable for both chose Airline (ATCL and Precision Air) and had a huge relationship with customer satisfaction. Recalling back a definition of tangibles which referred to physical facilities, equipment and staff appearance (Wensveen, 2015); the attribute that was substituted for tangibles were “appearance and uniform of employees”, cleanliness of cabin, “superior technology in its in-flight services”, cabin temperature, and cleanliness of toilets. The findings indicate that attractive appearance and uniform of staff was highly preferred by many customers and became the highest percentage given as a reason for satisfaction followed by cleanliness of cabin and toilets.

According to some past studies, this investigation likewise .utilized the guidance given by Ahmed (2018) that all help measurements (Empathy, Assurance, Responsiveness, Reliability, and Tangibles) contribute higher on customer loyalty thus it is critical to apply them in assessing service quality and customer loyalty of any service advertised. Different investigations uncovered that dependability is essential to support quality, compassion was found altogether identified with both customer loyalty and service quality (Amoah et el .2009). Besides, this study affirm the ramifications of ACSI model as expressed by Lovelock and Wirtz (2007) whereby a few explanations behind fulfillment which conforms to the determinants of customer satisfactionwere brought up by this examination. Among the reasons is 55 service quality, saw esteem dependent on cost, other client service related projects and individual circumstances.

5.2.3 To analyze customer perceived value (CPV) on ATCL and Precision Air Services The study results show that customer perceived valued (CPV) is a valid construct and had a substantial affiliation with customer satisfaction of ATCL and Precision Air plc. Services offered. Customers were satisfied with Air Transport Services because of perceived value they benefit from ATCL and Precision Air. The findings indicates a distinctive meaning for Customer perceived value in the two selected Airline Companies which were linked to the ACSI model confirming the theory that customers‟ perception of the value they receive from products and services (quality received relative to price paid) should positively affect satisfaction in line with pricing setting variables Shaw (2015)

Reviewing back a meaning of customer perceived value (CPV) which alluded to the contrast between the imminent client's assessment of the considerable number of advantages and all the expenses of a contribution and the apparent other options (Kotler 2001); the attributes that were substituted for perceived value was „preferential fare, standby fare, Advanced purchase, Remedial, maximum stay condition, and minimum stay condition „for both ATCL and Precision Air explain that Perceived value has substantial affiliation with customer satisfaction.

Maximum stay conditions was an attributed applied to both ATCL and Precision Air in this study. As a substantial characteristic, Maximum stay condition had a huge relationship with customer satisfaction at ATCL and Precision Air Plc. Returning to the meaning of Maximum stay condition which involves a characterized most extreme time allotment that travelers can remain at their goal and still get back utilizing a less expensive limited fare; in the event that they remain longer than the specified greatest 45 or multi day terms have been regular, they need to pay a full passage to return (Shaw, 2015).The study findings revealed that more customers are less satisfied because of the way ATCL and Precision Air Plc. consider this this

56 attribute and even tried to decline the use of maximum stay condition practices to benefit their customers and meet their expectation. Maximum stay condition also had no effect on the cost of carrying a discount fare passenger for ATCL and Precision which made more customers who have been travelling on a business contract, in which case their employer may have been paying the fare complain against them.

Minimum stay condition was another attribute applied to both ATCL and Precision Air in this study. Minimum say condition was a valid attribute and had a substantial affiliation with customer satisfaction as indicated on figure 1. Wensveen (2015) brought up that minimum stay condition involves a characterized least time span generally seven days that travelers can remain at their goal, and still get back utilizing a less expensive rebate toll; in the two cases, travelers can return early in the event that they wish to do as such, yet was need to pay a full passage for the arrival leg of the outing.

For this situation, passengers had less satisfied by this conditions and contended that this condition have been intended to limit the business voyager's opportunity of activity; on long stretch, most business excursions require just a short remain in any one spot. Surely, these airlines find that their trips on the evening prior to the end of the week starts are completely, however on Sundays by and large burden factors are a lot of lower. Accordingly a condition that empowers probably a few travelers to postpone their arrival may have the valuable impact of reducing the power of the pinnacle, while lower cost may create extra outings at off-top periods that was fill in any case void seat at lower, yet, gainful costs

Both ATCL and Precision Air plc. had withdrawn this condition and even sometimes made it significantly more flexible purposely to lockdown new competitors to invade an established airline‟s markets by offering fares at the same level as those requiring minimum stay without such restrictive condition being attached to them, but in return offer less beneficial effect to customer and resulted on less customer satisfaction..

Advanced purchase was also an attribute substituted on customer perceived value (CPV) to both ATCL and Precision Air in this study. The study findings in figure 1

57 indicate that advanced purchase is a valid attribute and had a positive upshot on customer satisfaction. Going back to the definition which mean that passengers must book and pay for their ticket a defined minimum period in advance; and they must also accept that there was a substantial penalty if they wish to alter or cancel a booking once they have made it(Wensveen, 2015); the condition bring airlines a number of advantages including improved cash flow, easy the task of capacity management, and they make it difficult for a business traveller to use a discount fare. Even when they can be, business people often cannot accept the limits on their flexibility that a cancellation or rebooking penalty was cause. More customers were satisfied with advanced purchase though sometimes due to competitive pressure some condition were not enforced, with the low fares being offered to passengers nearer to flight departure time than the minimum advanced purchase.

Standby fare was another attribute substituted on customer perceived value to both ATCL and Precision Air in this study. The study findings in figure 1 revealed that standby fare was a valid attribute and had a significant relationship with customer satisfaction.(Wensveen, 2015); called attention to that Standby fare can be booked whenever. They don't, however, ensure the traveler a seat on a specific flight. Rather, they should report for a flight and pause; if there is a vacant seat, they can travel. On the off chance that there isn't, on the grounds that the customer is full with higher yielding interest, the backup traveler might not be given a seat. Rather, they can have their cash discounted, or was need to hang tight for a later flight. In this examination, it was uncovered that standby fare had more impact on customer loyalty and prompted a truly cost related lower passage, in that they can be supposed to be gainful as long as the charge paid surpasses the carrier's traveler related expense of filling an in any empty seat.

The study result confirm that for Airlines using „a La Carte‟ pricing, carrying a standby passenger bring additional revenue as a result of any payments made by the passenger for the carriage of hold baggage or for the purchase of food and drink on board their flight (Upham et el, 2003). Furthermore, if protected, standby fare brings more beneficial effects to the passenger because it offer chances to a passenger

58 holding a standby ticket for a specific flight with an encouragement to contact the Airline to make extra booking confident and was offered a seat. This made more customers benefit and became satisfied with Air Transport services offered by ATCL and Precision Air Plc.

Lastly, a preferential fare was an attribute substituted on customer perceived value to ATCL and Precision Air in this study. The finding in figure 1 indicates that preferential fare was a valid attribute and had a positive affiliation with customer satisfaction. These fares are occasionally called discriminatory fare. Evoking back the implication of preferential fare which involves kinds of cheaper fare that are only offered to named group of passengers such as stage-of-life fares example include the low fares offered to children( which have little or no cost justification), young people, senior citizen; and special fare which comprises fare set to seamen, military personnel and diplomat(Wensveen, 2015); both ATCL and precision Air offers preferential fare to named groups and often find that they offered to a wider range of their passengers and tends to act as a motive factor against customer satisfaction. is thus based on the difference between what the customer gets and what he or she gives for different possible choices. The customer gets benefits and assumes costs. ATCL and Precision Air can increase the value of the customer offering by some combination of raising functional or emotional benefits and/or reducing one or more of the various types of costs to meet and exceed customer expectation.

Customer perceived value is in this way dependent on the contrast between what the customer gets and what the individual gives for various potential decisions. ATCL and Precision Air can build the estimation of the client offering by a blend of raising utilitarian or passionate advantages as well as decreasing at least one of the different kinds of expenses to meet and surpass client desire

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5.2.4To evaluate the effectiveness of customer Service – related product features strategies employed by ATCL and Precision Air Plc. to improve and promote satisfaction level among passengers . .The study result of the effectiveness of customer Service – related product features strategies employed by ATCL and Precision Air Plc. to improve and promote satisfaction level among passengers confirm the theory that customer service Related features including point-of-sales, reservation and overbooking, airport services, and inflight services are major driving factors for customer satisfaction in Air transport services(Wensveen, 2015); all the attributes substituted to customer services-related product feature strategies were valid and had a significant relation with customer satisfaction from ATCL and Precision Air results.

Point of sales, reservation and overbooking, airport services, in-flight services, and visually appealing process were the attributes substituted on customer services- related product feature strategies with customer satisfaction in this present study for ATCL and Precision Air. The Cronbanch‟s alpha and composite reliability results in table 8 explained in customer satisfaction is 0.871. This means that the model is able to explain 87.1 percent of reliability and variation in satisfaction across passengers of ATCL and Precision Air Plc. This relatively high performance can be traced to several aspects of the Measurement system and model.

The estimated impacts for the substituted drivers are illustrated on figure 1. As far customer service –Related product features strategies and satisfaction, the performance measures are presented on 0 to 100 points indices and the impact score represent effect size and the level is weighted index of the attribute values. Airport services (visually appealing process) has by far the largest impact on satisfaction (0.807), followed by efficiency of point-of-sales especially ticketing services (0.794), skilled and knowledgeable staff to deal with customer needs (0.765), modern facilities (0.771), customer information (0.665), entertainment facilities (0.728),andtravel partners (0.723). In contrast, Airport services (visually appealing process) has by far the

60 largest impact on satisfaction (80.7), followed by efficiency of point-of-sales especially ticketing services (79.4), skilled and knowledgeable staff to deal with customer needs (76.5), modern facilities (77.1), customer information (66.5), entertainment facilities (72.8),and travel partners (72.3). Therefore, Airport services (visually appealing process), efficiency of point-of-sales especially ticketing services, modern facilities,travel partners and entertainment facilities are the primary drivers of satisfaction. The remaining drivers had also greater effect; hence ATCL and precision Air must classify them into strategic satisfaction matrix and set priority for improvement.

The Airport services (visually appealing process) and efficiency of point-of-sales especially ticketing services are a relative strength for ATCL and Precision Air (moderate impact, high performance). The remaining modern facilities,travel partners and entertainment facilities all are classified as relatively inconsequential. The results confirm the theory(Wensveen, 2015) that Airline decision about the level of airport services they offer to their customers was a reflection of their overall business strategy to meet and exceed customer expectations.

In-flight services are more crucial to be improved. The estimation reveal that, of the three key attributes used to measure in-flight services wherebyin-flight modern facilities carries the most weight, followed by in-flight entertainment facilities, and in-flight communication services receive a middle weight. Rated attribute performance is higher for in-flight modern facilities and lowest for in-flight communication services, with the remained attributes in the middle. Therefore, from the implementation stand of point, the study provides detailed information to ATCL and Precision on how to go about improving the in-flight services.

The results of the current study also confirm various studies that a customer service- related product features strategies has positive effects on customer satisfaction. They also comply with the suggestion of Amankwah and Ohene-Adu (2011) that customers are satisfied with service delivery, convenient period and terms of expired policy renewals, operating hours, sound loyalty programs, individualized customer

61 attention, understanding customer needs and apologizing for inconvenience to clients.

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CHAPTER SIX

SUMMARY, CONCLUSION, AND POLICY IMPLICATIONS

6.1 Summary and Conclusion

6.1.1 Summary Based on the problem discussed, the purpose of this study was to explore customer satisfaction with Air Transport Services in Tanzania; a case study of ATCL and Precision Air Plc.As referenced in past chapters, the customer satisfaction is obtained through service quality, perceived value, and an effective customer service-related product feature strategies and this study used ACSI model to measure customer satisfaction. As noted earlier, Airline companies need to meet and exceed customer expectations to stay alive in the industry. Knowing precisely what clients like, fruitful organizations can give clients precisely what they need by altering the product or service to astound and charm them and to make a core capability to defeat their rivals (Bodet, 2008).

6.1.2 Conclusion Problem discussion reveals that both performance drivers and customer expectation in Air Transport Service features were positively affect this cumulative satisfaction; thus it is important to be applied effectively by ATCL and Precision Air for customer satisfaction and profitability of the companies due to the fact that an effective implementation of these features had a significant effect on customer satisfaction. Literature review shortlists service quality, perceived value and customer service related product features strategies to customer satisfaction in Air Transport services and the findings related that customer satisfaction is a major link in the path from production to profitability.

6.2 Recommendation and policy implications

6.2.1 Recommendation ATCL and Precision Air should acquire data about passenger‟s attitudes and create plans to improve the powerless point. According to study findings, administrators

63 should attempt in client see worth and specialized quality first. Finishing an outing precisely, promptness in takeoff and money saving advantage is the thing that the travelers expect in the first. It is exceptionally alluring that ATCL and Precision scaled down deferral, specialized flaws, unreasonable valuing, and security Both Airlines needs some interest in unmistakable component. The study revealed that old and absolute facilities comprise an exhausting environment. On other hand, giving current assortment and decisions of in-flight amusement facilities are unavoidable. In this manner making a charming occasion for travelers is essential, rather than making an exhausted environment which cause travelers to invest a greater amount of their energy sleeping in the event that they fly alone. It is recommended to utilize numerous instruments and projects to engage travelers including broadcasting music, indicating films, giving riddle and different magazine and Newspapers.

Both ATCL and Precision Air should focus on Reliability by getting ready solid procedures to meet and surpass client desires. This remembers proficiency of registration (check-in), simpler check-in process, transfer services, effectiveness at takeoff Airport, on-time departure of planned flight, remedial procedures for delayed or missing things, giving ground or in-flight administration reliably, and playing out the services right the first run through. Every one of these components has more noteworthy impact on fulfilling travelers for ATCL and Precision Air Plc. it is proposed that both ATCL and Precision Air should expand their controlling, observing, ordering and cording to achieve a positive result. From now on, productivity is the thing that ATCL and Precision Air need and it very well may be accomplish by getting things done in the correct manner as recommended

In lieu of Assurance, both ATCL and Precision Air should prepare its workers and assess their presentation consistently. Representative ought to have the capacity and ability to manage client relations exercises adequately. It comprises earnestness and tolerance in settling traveler's concern, educated and capable arrangement of administrations; representatives ingrain certainty to travelers, proficient workers to

64 respond to client question, and genuine and responsive demeanor to travelers can be gotten through learning and practice. Learning is the endless procedure which includes improvement and alteration of musings and practices. Hence, by giving training, prizes and disciplines to workers and reliably giving instructive input on representative's employees can help both ATCL and Precision Air to improve its representative's presentation and increment traveler's satisfaction.

ATCL and Precision Air ought to plan and execute significant client related item includes techniques which endeavor to support travelers and offer brief types of assistance. These procedures should assist these Airlines with having the ability to react to cancelled or deferred flights, understanding the particular needs of the travelers, and brief react of representatives of the Airline to ask for or complain. To be responsive in Airline industry, both ATCL and Precision Air must guarantee that all representatives need to perform customer relations activities and the client is the center of the business entity. Corporate picture is excessively significant and has noteworthy effect on customer purchasing dynamic. In this way ATCL and Precision Air needs greater commercial, network contribution projects and appear in the general public and to focus on its center skills for building an exceptionally amazing picture. Besides, improve service quality and spotlight on traveler's needs and demeanor to communicate that ATCL as well as Precision Air worries about traveler's feeling essentially. . To improve compassion in ATCL and Precision Air, marketing managers should consider their target market exactly and perceive client traits and requests. Must comprehend what their client truly need and how they can be fulfilled. Advantageous flight planning, food and drinks, various and simple to-utilize tagging channels are the principal thing that travelers anticipate from the Airline; anyway on-line ticketing is the best arrangement. Unconstrained consideration and worries for traveler need and regular in-flight services round by the airline steward can expand satisfaction. Having sound devotion and mileage program to perceive visit clients can bring an

65 upper hand for ATCL and Precision Air Plc. this was help to transform visit client into loyal clients. Likewise, both ATCL and Precision Air ought to make a solid and powerful vital alliance and joint venture to have other travel related accomplices, for example, vehicle rentals, lodgings, and travel protection. This can help to grow and raise the market share. ATCL and Precision Air can define and utilize a few discounts and allowances for loyal customers who use their partner‟s services. These programs have mutual benefit and increase satisfaction among passengers.

6.2.2 Implications for future researches. This study took at Airline customer satisfaction by assessing services for the most part. It is proposed further investigations to be directed progressively centered around explicit and various parts or regions of Airline services, for example, food and savors, check-in services, tagging, in-flight benefits, Customer administrations related item includes, and so on a few impediments of the examination ought to be watched.

First this investigation was constrained to two Airlines (ATCL and Precision Air). Further specialist ought to research comparable targets for various Airlines. More prominent concern ought to be taken on the sampling, test size, and territory of study for better result results.

Second, satisfaction of customers has been estimated for ATCL and Precision Air and is substantial and solid for just these Airlines. It is recommended to direct another investigation with various case (Airline) which is like ATCL and Precision Air and attempt to analyze the outcomes.

This investigation received ACSI model to gauge customer satisfaction with Air Transport Services in Tanzania. It was a lot of fascinating if different examinations can be led by utilizing a similar model in other various ventures.

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Appendix 1: Airline Service Questionnaire Dear Respondents,

My name is Kate Bundala, Pursuing PhD in Marketing Management from Mzumbe University – Dar Es Salaam Campus. I am currently conducting a research titled “Exploration of Customer Satisfaction on Air Transport Services in Tanzania. A case Study of Air Tanzania Corporation (ATCL) and Precision Air Plc.

This study questionnaire is designed to collect data for academic purposes only. Any information provided was treated with the strictest confidence it deserves. Kindly, I am requesting you to fill this study questionnaire with respect to study questions and provided instructions.

Please circle where appropriate for each question.

1 Gender Male Female 1 2 2 Age Range 18- 25 26 – 35 36 – 45 46- 55 56 – 65 65 – 75 76+ 1 2 3 4 5 6 7 3 Marital Status Married Single Widow Long-term Divorced 1 2 3 Relationship 5 4 4 Highest Primary Secondary/ Degree Diploma/Higher Post-graduate Educational Technical Diploma Degree Qualification Vocation 1 2 3 4 5 5 Type of Customer Individual Business 1 2 6 Length of time Less than 1 Year 1-4 Years 5 – 8 Years Longer than of doing 8 Years business/ using Air Transport 1 2 3 4 Services

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Provide Brief and/or short answers on the following questions

1. How Many Airplane trips have you taken in the last twenty four months------2. What Airline Company, if any, did you use most often…………………………………… 3. In the last twenty four months, approximately how many times did you use the Airline you mentioned……………………………………………………………………… ………

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Please indicate the extent to which you agree or disagree with the following statements regarding the Air Tanzania Corporation (ATCL) and/or Precision Air Plc. you use most frequently by circling the appropriate number.

S/N Statements Much Worse Equal to Better Much Worse than than Expected than better Expected Expected Expect than ed Expected 1 In- flight modern and clean facilities 1 2 3 4 5 2 Variety and Quality of in - flight 1 2 3 4 5 meals 3 Appearance, Attitudes and 1 2 3 4 5 Uniforms of employees 4 Variety and choices of in-flight 1 2 3 4 5 entertainment facilities 5 Efficiency of the check-in process 1 2 3 4 5 6 Providing Visually appealing 1 2 3 4 5 process 7 On-time Performance of 1 2 3 4 5 scheduled flights 8 Transfer services and efficiency at 1 2 3 4 5 departure airports 9 Remedial procedures for delayed 1 2 3 4 5 or missing baggage 10 Performing the services right the 1 2 3 4 5 first time 11 Providing ground/in-flight service 1 2 3 4 5 consistently 12 Prompt attention to passenger‟s 1 2 3 4 5 specific needs 13 Capable to response to emergency 1 2 3 4 5 situations 14 Keeping customer informed about 1 2 3 4 5 when service was performed 15 Understanding the specific needs 1 2 3 4 5

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of passengers 16 Capacity to respond to cancelled 1 2 3 4 5 or delayed flights 17 Sincerity and patience in solving 1 2 3 4 5 passenger‟s problems 18 Prompt respond of employees of 1 2 3 4 5 the Airline to your request or complaint 19 Safety performance of Airline 1 2 3 4 5 20 Probability of flight breakdowns 1 2 3 4 5 21 Knowledgeable and skillful 1 2 3 4 5 provision of services 22 Sincere and responsive attitude to 1 2 3 4 5 passenger complaints 23 Having other travel related 1 2 3 4 5 partners such as travel insurance, hotel, car rentals 24 Employees instil confidence to 1 2 3 4 5 passengers 25 Having sound mileage program 1 2 3 4 5 26 Employees are consistently 1 2 3 4 5 courteous 27 Having a sound loyalty programs 1 2 3 4 5 to recognize you as a frequent customer 28 Knowledgeable customers to 1 2 3 4 5 answer customer questions 29 Frequent cabin service rounds by 1 2 3 4 5 flight attendants 30 Spontaneous care and concern for 1 2 3 4 5 passengers‟ needs. 31 Convenient flight scheduling 1 2 3 4 5 32 Numerous easy to use ticketing 1 2 3 4 5 channels 33 It has a good reputation 1 2 3 4 5 34 It is sacksful to complete a travel 1 2 3 4 5

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35 It is a reliable company to use its 1 2 3 4 5 services 36 It has a superior technology in its 1 2 3 4 5 flight services 37 It is sincere to its passengers 1 2 3 4 5 38 It is a successful company in Air 1 2 3 4 5 Transport Industry 39 Pilot has technological knowledge 1 2 3 4 5 and skills

Basing on the image of the Airline Company you frequently use, please prioritize the following attributes in order of importance to you

(1 = the most important, 7= the least important)

1. Tangibles (physical facilities, equipment, appearance of personnel) ……………………. 2. Reliability (Ability to perform service dependably and accurately) …………………… 3. Responsiveness (wasingness to help customers and provide prompt services)………….. 4. Assurance (knowledge and courtesy, ability to inspire trust and confidence)……………. 5. Technical quality (Success to complete a trip)…………………………………………… 6. Empathy (caring, individualize attention)……………………………………………….. 7. Image (the public perception about image of the Airlines) …………………………

Thank you for your time in completing this questionnaire

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