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Trans. Planning Journal

Title Employee Satisfaction and Customer Loyalty of Airlines — Exploring from the Viewpoint of Service Behavior
Author Cheng-Min Feng, Kung-Yeun Jeng
Summary   Employee satisfaction is an important factor that affects customer loyalty and this understanding has been verified by many scholars. However, few studies have explored how the employee service behavior affects customer loyalty and how much that is affected by employee satisfaction. This research takes U domestic airlines in Taiwan as a study case. The service behavior, which was divided into in-role behavior and extra-role behavior, was regarded as an intermediate variable to analyze how both behaviors are affected by employee satisfaction and how both behaviors affect customer loyalty. This research takes Linear Structural Relations (LISREL) as the tool to test and verify the fitness of the model. The customer survey surveys the passenger of those who took U airways and depart from the domestic terminals, and there are 1,002 valid passenger questionnaires returned. The employee survey surveys the workers who are the frontline staff of U airways, and there are 386 valid employee questionnaires returned. Results show that service behavior, as an intermediate variable, has a significant influence on customer loyalty, while the influence of extra-role behavior is more significant than that of the in-role behavior. Employee satisfaction positively affects their in-role behavior as well as extra-role behavior. Based on the outcomes of the study, suggestions were provided for airline management to increase employee satisfaction, to improve employee service behavior performance, and to strengthen customer loyalty.
Vol. 35
No. 2
Page 191
Year 2006
Month 6
Count Views:410
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