1.1.1 Introduction to the Topic

In modern business, environment organizations are striving hard to meet customer expectations (Lai et al. 2014). These customer expectations are supercilious in nature thus organizations are forced to be quick to respond. Being global is the key to organizational growth especially for the aviation industry. For supporting this global approach in a sustainable manner and gain leadership position, it is a mandate for airline companies to outshine satisfaction level of customers by providing them with quality services, which their competitors fail to.

In airline industry, which is essentially a service business format, quality of customer service perceived and provided drives customer satisfaction (Chen & Chang 2005). Thus, companies need to be exceptional in this area for gaining competitive advantage. Airline companies continually design innovative services for not only meeting customer expectation but also achieve organizational goals.

1.1.2 Introduction to the Company: Etihad Airways

Etihad Airways, founded in the year 2003 by Royal (Amiri) Decree. Its  headquarters are in Abu Dhabi, United Arab Emirates (Bloomberg Businessweek 2015). Since then the airways is striving to gain a leadership position within air transport industry not only in the Middle East but in international arena too (Etihad 2015). Etihad Airways has marked a strong presence in countries from areas like Middle East, Africa, Europe, Asia, Australia, and North America thereby connecting a larger part of the world within a short span of 12 years (Bloomberg Businessweek 2015).

 

Along with core-air transportation service, Etihad also offers ground services, especially to those availing limousine and lounges. These services are made available in selected cities namely London, Abu Dhabi, Manchester, Frankfurt, Paris, Dublin, and Washington, D.C (Bloomberg Businessweek 2015). Further Etihad also offers training and development for local people categorized as Emiratis through programs related to cadet pilots, technical engineering, and management development. Global Traveller Awards have accredited Etihad with a number of awards in the year 2014 in categories related to Airline of the Year, Best Airline in the Middle East and Best Airport Staff / Gate Agents (Etihad Airways 2014). In 2014 approximately 14.3 million Revenue passengers availed the air transport services by Etihad Airways (Etihad Airways 2014).

1.1.3 Brief Introduction to Literature Review

For the purpose of this research, understanding the concepts of decision making in a consumer based on services quality was the most important aspect.. The impact of consumer satisfaction or dissatisfaction level is understood decisions taken by the same through purchase decision-making process  (Kardes et al. 2010).

The decision making process in a consumer as considered for this research is the Engel-Blackwell-Miniard Model (Masterson and Pickton, 2014). Selection of this model is considered as it concentrates more in an amalgamated ways of understanding service related factors that influence the decision-making approach in a consumer. The basic points analysed in a consumer, by this model are – need recognition, search of information (internally & externally), evaluation of alternatives, purchase, post purchase reflection and divestment (Masterson and Pickton, 2014).

In terms of service quality, a number of models have been proposed for measuring services quality, out of which SERVQUAL is the most crucial and comprehensive one. In accordance to Zeithaml et al. (2010) SERVQUAL is a complete model that aids in identification and analysis of varied perspectives of service provider and customer about a particular service and its quality. With the help of this model, organizations can efficiently categorize varied gaps that are present in service delivery process which affects customer satisfaction. Based on the analysis and identification of unique requirements measures can be taken accordingly to overcome gaps and thereby augment service quality levels. As per Seth et al. (2005) it is one of the most suitable models for determining service quality as it helps in determining the discrepancies present in customer service expectations and that provided by organizations.

 

1.1.4 Brief Introduction to Research Methodology

The research methodology was designed using an amalgamation of both qualitative and quantitative approaches, which implies usage of mixed method. As the method supports in undertaking a holistic research and thus has been adopted (Martins & Martins 2014). The data get collected through both primary and secondary sources for supporting achievement of research objectives. For making the study more comprehensive, primary data has been collected through 100 customers from Etihad and 100 from Emirates, making 200 in total.  Moreover, 8 managers (4 from each company) from customer service department are contact for interviews of the related companies. Secondary data was collected from varied reliable and authentic published sources (Collis & Hussey, 2014).

1.2 Problem Statement

In modern day environment, airline companies are striving to not only retain their existing customers but also attract new ones to gain sustainable business amidst intense competitive pressures. With new players entering the industry and existing competitors resorting to innovative practices, the only option left with companies like Etihad is to endow customers with satisfaction. Today, partially due to augmentation in technology and partially due to emergence of globalization the opportunities for satisfying customers have also increased.

Irrespective of this fact, due to intense competitive pressures from companies like Emirates and other constraints, Etihad is unable to benefit from its customer service strategies adopted to provide customer satisfaction. Consumer behaviour too is highly dynamic which further aggravates the problem for Etihad. Thus, this research paper attempts not only to understand the varied customer satisfaction related issues faced by Etihad and the remedial strategies used by the company in comparison to its competitors but also provide for measures through which customer satisfaction can be augmented.

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