CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

The need for customer satisfaction is one of the most discussed issues in the airline industries in Nigeria. Customer satisfaction according Seth, (2001) could be defined as the pleasure from product and service utility, fulfillment of expectation. It is obvious that customers are important stakeholders in organizations and their satisfaction is a priority for management.

According to Agbor, (2011) stated that customer satisfaction has been seen as a subject of great interest to most organizations in Nigeria and researchers alike. In recent years, organizations are obliged to render more services in addition to their offers. The quality of service has become an aspect of customer satisfaction. Customer Satisfaction can provide you with major competitive advantages, which can directly lead to increase in profitability and growth of business (Sheth, 2001).

Customer satisfaction is a significant element in service delivery because understanding and satisfying customers’ needs and wants can engender increased market share from repeat purchases and referrals (Barsky, 2002). Overall contentment felt by the customer results from the ability of the service to fulfill the customer’s desires, expectations and needs in relation to the service. Customer satisfaction is rated highly as a strategic end in and of itself, as it affects customer retention and profits directly (Jones and Sasser, 2005; Reichheld, 2006). Customer satisfaction will affect future repeat purchase intentions and the customers will share their positive experiences with other consumers.

Customer satisfaction can generate positive comments and feedback which affects repeat purchases from consumers. Customer loyalty depends to a great extent on customization of service (Ball et al., 2006) and making the customer enjoy a particular service in the airline sector in Nigeria (Agbor, 2004). That is why customer satisfaction and loyalty are very important to most of the organization in Nigeria; be it the service sector or the manufacturing sector. The study in this regard desire to investigate on the factors affecting customer satisfaction of airline passengers using the Dana Air, Nigeria as the case study.

1.2 STATEMENT OF THE PROBLEM

The Nigeria airline industry has contributed significantly to the transportation sector thus leading to growth in economic development in Nigeria. However there are some challenges faced by this sector; one of the most pressing challenges is on the areas of customer satisfaction.

         Customer satisfaction should be the watchword of every organization that wishes to experience growth and development. According to Sheth, (2001) stated that customer Satisfaction can provide you with major competitive advantages, which can directly lead to increase in profitability and growth of business.

         Take Dana Air for instance; the quest for the achievement of customer satisfaction in this organization seem a far cry from the actualization of the organization objectives. This could be as a result of lack of effective ICT facilities in the organization; it could be as a result of low staff motivation in terms of prompt payment of salaries, poor promotion of employees and lack of time management and convenient for customers and finally the customer service delivery procedure in the Dana Air. Secondly there have been series of studies on customer satisfaction but not even a single study has been carried out on the factors affecting customers’ satisfaction of airline passengers in Dana Air, Nigeria.

1.3 AIM AND OBJECTIVES OF THE STUDY

The main aim of the research work is to determine the factors affecting customers’ satisfaction of airline passengers in Dana Air, Nigeria. Other specific objectives of the study are:

1.  to examine the effectiveness of customer service delivery in Dana Air

2.  to determine the loop holes in the service delivery of Dana Air, Nigeria

3.  to examine whether the availability of ICT facilities will influence customer satisfaction in Dana Air

4.  to determine the effect of good canteen and restroom on customer satisfaction in Dana Air

5.  to determine the effect of accurate timing for take offs on customer satisfaction in Dana Air

1.4 RESEARCH QUESTIONS

The study came up with research questions so as to ascertain the above stated objectives of the study. The research questions for the study are:

1.  Is the customer service delivery in Dana Air effective?

2.  What are the loop holes in the service delivery system of Dana Air, Nigeria?

3.  Does the availability of ICT facilities influence customer satisfaction in Dana Air?

4.  What is the effect of good canteen and restroom on customer satisfaction in Dana Air?

5.  What is the effect of accurate timing for take offs on customer satisfaction in Dana Air?

1.5 STATEMENT OF RESEARCH HYPOTHESIS

H0: customer service delivery in Dana Air is not effective

H0: the availability of ICT facilities does not influence customer satisfaction in Dana Air

H0: good canteen and restroom have no significant effect on customer satisfaction in Dana Air

H0: accurate timing for take offs does not affect customer satisfaction in Dana Air

1.6 SIGNIFICANCE OF STUDY

The study onthe factors affecting customers’ satisfaction will be of immense benefit to the airline passengers, members of staff of Dana Air, Nigeria in the sense that the study will educate the above population on the nature of service in Dana Air, the factors affecting customer service delivery and the management effectiveness in improving customer satisfaction in Dana Air. The study will serve as a repository of information to other researchers that desire to carry out similar research on the above topic. Finally the study will contribute the body of existing literature on the factors affecting customers’ satisfaction.

1.7 SCOPE OF STUDY

The study on the factors affecting customers’ satisfaction of airline passengers will be limited on the Dana Air, Nigeria because of their huge customer base and size.

1.8 LIMITATION OF STUDY

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

1.9 DEFINITION OF TERMS

Customer Service: This is the advice or assistance provided by a company to those people who buy their products or services.

Customer Satisfaction: This is a term that measures how a company’s goods or services meet their customers’ expectation.

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