TRANSPORTATION QUALITY, CUSTOMER SATISFACTION AND FINANCIAL PERFORMANCE

Belaynesh Teklay, Kevin E. Dow, Davood Askarany, Jeffrey Wong, Yun Shen

Research output: Chapter in Book/Conference proceedingBook Chapterpeer-review

Abstract

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

Original languageEnglish
Title of host publicationAdvances in Management Accounting
PublisherEmerald Publishing
Pages63-82
Number of pages20
DOIs
Publication statusPublished - 18 Jan 2023
Externally publishedYes

Publication series

NameAdvances in Management Accounting
Volume34
ISSN (Print)1474-7871

Keywords

  • customer satisfaction
  • financial performance
  • service quality
  • structural equation modelling
  • Transportation quality
  • US airline industry

ASJC Scopus subject areas

  • Accounting
  • Business, Management and Accounting (miscellaneous)

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