Predictors of Corporate Reputation through Service Quality: A Study of Air Asia Customers Perspectives
Abstract
Hospitality and tourism industries have become one of the pivotal industry that contribute to the growth of the nation's economy. However, less studies actually pay attention to the aviation industry where this industry has faced a lot of challenges and crisis in the past decade. Hence, this study aims to examine the predicting factors of service quality on corporate reputation of AirAsia in Malaysia. The study utilized SERVQUAL model to guide the study. A quantitative (survey) research design was employed wherein a total of 200 completed questionnaires was obtained from the Malaysian’s customers of AirAsia, through purposive sampling. Based on the correlation analysis, tangibility, reliability, responsiveness, assurance has a positive and moderate relationship with corporate reputation, while empathy has a positive and high relationship with corporate reputation. In addition, multiple regression analysis showed that responsiveness, assurance, and empathy were the contributing factors to corporate reputation. However, tangibles and reliability were not the predictors of corporate reputation. Conclusion, implications, and suggestion for future study were also discussed.
Downloads
Article Analytics Summary
References
Agyapong, G. K. Q. (2011). The effect of service quality on customer satisfaction in the utility industry: A case of Vodafone (Ghana). International Journal of Business Management, 6(5), 203-210. DOI: https://doi.org/10.5539/ijbm.v6n5p203
Ahn, T. H, & Lee, T. J. (2011). Service quality in the airline industry: Comparison between traditional and low-cost airlines. Tourism Analysis, 16(5), 535-542. DOI: https://doi.org/10.3727/108354211X13202764960582
Aliaga, M., & Gunderson, B. (2002). Interactive statistics. Thousand Oaks: Sage Publication.
Ali, M., & Raza, S. A. (2017). Service quality perception and customer satisfaction in Islamic banks of Pakistan: The modified SERVQUAL model. Total Quality Management & Business Excellence, 28(5/6), 559-577. DOI: https://doi.org/10.1080/14783363.2015.1100517
Archana, R., & Subha, M. V. (2012). A study on service quality and passenger satisfaction on Indian Airlines. International Journal of Multidisciplinary Research, 2(2), 50-63.
Babbie, E. R. (2015). The practice of social research (14th ed.). Cengage Learning.
Beavers, G. A., Iwata, B. A., & Lerman, D. C. (2013). Thirty years of research on the functional analysis of problem behaviour. Journal of Applied Behaviour Analysis, 46(1), 1-21. DOI: https://doi.org/10.1002/jaba.30
Chan, T. J., & Goh, M. L. (2019). Determinants of service quality and customer satisfaction of retail clothing company. Journal of Business and Social Review in Emerging Economies, 5(2), 295-304. DOI: https://doi.org/10.26710/jbsee.v5i2.840
Chilembwe, J. M. (2014). Evaluation of service quality, value and satisfaction of air transportation in Malawi: Case study of Air Malawi. International Journal of Social Sciences and Entrepreneurship, 1(11), 236-266.
de Leeuw, E. D. (2008). Choosing the method of data collection. In de Leeuw, E. D., Hox J. J., & Dillman D. A. (Eds.), International Handbook of Survey Methodology (pp. 113-135). New York: Lawrence Erlbaum Associates.
Delbari, S. A. (2016). Key competitiveness indicators and drivers of full-service airlines operating in Malaysia. Unpublished doctoral dissertation. Universiti Putra Malaysia. DOI: https://doi.org/10.1016/j.jairtraman.2015.12.004
Esen, E. (2013). The influence of corporate social responsibility (CSR) activities on building corporate reputation. In Gonzalez-perez, M. A. and Leonard, L., (Eds.), International Business, Sustainability and Corporate Social Responsibility (Advances in Sustainability and Environmental Justice), Emerald Group Publishing Limited, 133-150. DOI: https://doi.org/10.1108/S2051-5030(2013)0000011010
Famiyeh, S., Kwarteng, A., & Dadzie, S. A. (2016). Corporate social responsibility and reputation: Some empirical perspectives. Journal of Global Responsibility, 7(2), 258-274. DOI: https://doi.org/10.1108/JGR-04-2016-0009
Fauzi, A. A. (2018). Electronic service quality on mobile application of online transportation services. Jurnal Manajemen Indonesia, 18(1), 13-27. DOI: https://doi.org/10.25124/jmi.v18i1.1256
Felix, R. (2017). Service quality and customer satisfaction in selected banks in Rwanda. Journal of Business & Financial Affairs, 6(1), 246-257. DOI: https://doi.org/10.4172/2167-0234.1000246
Fombrum, C. J., Gardberg, N. A., & Sever, J. M. (2000). The reputation quotientSM: A multi-stakeholder measure of corporate reputation. Journal of Brand Management, 7(4), 241-255. DOI: https://doi.org/10.1057/bm.2000.10
Gilbert, D., & Wong, R. (2003). Passenger expectations and airline services: A Hong Kong based study. Tourism Management, 24(5), 519-532. DOI: https://doi.org/10.1016/S0261-5177(03)00002-5
Gupta, H. (2018). Evaluating service quality of airline industry using hybrid best worst method and VKOR. Journal of Air Transportation Management, 68(C), 35-47. DOI: https://doi.org/10.1016/j.jairtraman.2017.06.001
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2018). Multivariate data analysis (8th ed.). Cengage Learning EMEA
Hapsari, R., Clemes, M., & Dean, D. (2016). The mediating role of perceived value on the relationship between service quality and customer satisfaction: Evidence from the Indonesian Airline passengers. Procedia Economics and Finance, 35, 388-395. DOI: https://doi.org/10.1016/S2212-5671(16)00048-4
Hasim, M. A., Shamsudin, M. F., & Ishak, M. F. (2018). Customer satisfaction and purchasing intention in airline service quality: A case study of Malaysia Airlines. International Journal of Engineering & Technology, 7(4.29), 150-153.
Hou, A. C. Y., & Shiau, W. L. (2019). Understanding Facebook to Instagram migration: A push-pull migration model perspective. Information Technology & People, 33(1), 272-295. DOI: https://doi.org/10.1108/ITP-06-2017-0198
IATA.org. (2019). Pressroom Pages of Facts & Figures. Retrieved from International Air Transport Association (IATA).org: https://www.iata.org/pressroom/facts_figures/fact_sheets/Documents/fact-sheet-industry-facts.pdf
Kandampully, J., Zhang, T., & Bilgihan, A. (2015). Customer loyalty: A review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management, 27(3), 379-414. DOI: https://doi.org/10.1108/IJCHM-03-2014-0151
Lee, C. Y., Chang, W. C., & Lee, H. C. (2017). An investigation of the effects of corporate social responsibility on corporate reputation and customer loyalty: Evidence from the Taiwan non-life insurance industry. Social Responsibility Journal, 13(2), 355-369. DOI: https://doi.org/10.1108/SRJ-01-2016-0006
Lohmann, M. (2016). Corporate reputation in the digital age: A systematic comparison of antecedents and consequences for multi-channel retailers and pure players. Unpublished Master's Thesis. University of Twente. Retrieved from https://essay.utwente.nl/70243/1/Lohmann_MA_BMS.pdf
Lu, Y., Abeysekera, I., & Cortese, C. (2015). Corporate social responsibility reporting quality, board characteristics and corporate social reputation: Evidence from China. Pacific Accounting Review, 27(1), 95-118. DOI: https://doi.org/10.1108/PAR-10-2012-0053
Mayr. T. & Zins, A. (2012). Extensions on the conceptualization of customer perceived value: Insights from the airline industry. International Journal of Culture, Tourism and Hospitality Research, 6(4), 356-376. DOI: https://doi.org/10.1108/17506181211265086
Mohd Ayob, N., & Masron, T. (2014). Issues of safety and security: New challenging to Malaysia tourism industry. SHS Web of Conferences, 12, Retrieved from https://www.shs-conferences.org/articles/shsconf/pdf/2014/09/shsconf_4ictr2014_01083.pdf DOI: https://doi.org/10.1051/shsconf/20141201083
Mun, W. K., & Ghazali, M. (2011). Branding satisfaction in the airline industry: A comparative study of Malaysia Airlines and Air Asia. Journal of Business Management, 5(8), 3410-3423.
Munusamy, J., Chelliah, S., & Pandian, S. (2011). Customer satisfaction delivery in airline industry in Malaysia: A case of low cost carrier. Australian Journal of Basic and Applied Sciences, 5(11), 718-723.
Musa, G., & Wong, K. M. (2011). Branding satisfaction in the airline industry: A comparative study of Malaysia Airlines and Air Asia. African Journal of Business Management, 5(8), 3410-3423.
Namukasa, J. (2013). The influence of airline service quality on passenger satisfaction and loyalty. The TQM Journal, 25(5), 520-532. DOI: https://doi.org/10.1108/TQM-11-2012-0092
News Straits Times. (2015). Airlines in Malaysia losses nearly doubles on MH370 impact. Retrieved from nst.com.my: https://www.nst.com.my/news/2015/08/airlines-losses-nearly-doubles-mh370-impact
Özkan, P., Süer, S., Keser, İ. K., & Kocakoç, İ. D. (2019). The effect of service quality and customer satisfaction on customer loyalty: The mediation of perceived value of services, corporate image, and corporate reputation. International Journal of Bank Marketing, 0265-2323. DOI: https://doi.org/10.1108/IJBM-03-2019-0096
Parasuraman, A., Zeithaml, V., & Berry, L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
Parasuraman, A., Zeithaml, V., & Berry, L. (1991). Perceived service quality as a customer-based performance measure: An empirical examination of organizational barriers using an extended service quality model. Human Resource Management, 30(3), 335-364. DOI: https://doi.org/10.1002/hrm.3930300304
Ping, C. Y. (2012). Mastering research methods. Shah Alam: McGraw Hill Companies.
Raza, S., Jawaid, S., & Hassan, A. (2015). Internet banking and customer satisfaction in Pakistan. Qualitative Research in Financial Markets, 7(1), 24-36. DOI: https://doi.org/10.1108/QRFM-09-2013-0027
Saunders, M., Lewis, P., & Thornhill, A. (2015). Research Methods for Business Students (7th ed.). Pearson Education Limited.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach (7th ed.). New Jersey: John Willey and Sons, Inc.
Siddiqi, A. F. (2014). An observatory note on tests for normality assumptions. Journal of Modelling Management, 9(3), 290-305. DOI: https://doi.org/10.1108/JM2-04-2014-0032
Shamma, H. (2012). Toward a comprehensive understanding of corporate reputation: Concept, measurement and implications. International Journal of Business and Management, 7(16), 151-169. DOI: https://doi.org/10.5539/ijbm.v7n16p151
Tourism Malaysia. (2019). Malaysia's Tourism Industry Registers Positive Growth for Jan-Sep 2019-Media Release. Retrieved from https://www.tourism.gov.my/media/view/malaysia-s-tourism-industry-registers-positive-growth-for-jan-sep-2019
Walker, K. (2010). A systematic review of the corporate reputation literature: Definition, measurement and theory. Corporate Reputation Review, 12(4), 357-387. DOI: https://doi.org/10.1057/crr.2009.26
Walsh, G., & Beatty, S. (2007). Customer-based corporate reputation of a service firm: Scale development and validation. Journal of the Academy of Marketing Science, 35(1) 127-143. DOI: https://doi.org/10.1007/s11747-007-0015-7
Walsh, G., Beatty, S., & Shiu, E. (2009). The customer based corporate reputation scale: Replication and short form. Journal of Business Research, 62(10), 924-930. DOI: https://doi.org/10.1016/j.jbusres.2007.11.018
Wang, Y., Lo, H., & Hui, Y. (2003). The antecedents of service quality and product quality and their influences on bank reputation: Evidence from the banking industry in China. Managing Service Quality: An International Journal, 13(1), 72-83. DOI: https://doi.org/10.1108/09604520310456726
Wepener, M., & Boshoff, C. (2015). An instrument to measure the customer-based corporate reputation of large service organizations. Journal of Services Marketing, 29(3), 163-172. DOI: https://doi.org/10.1108/JSM-01-2014-0026
Wilson, N. (2018). The impact of service quality on brand image toward customer loyalty in the Indonesian airlines industry. Jurnal Manajemen Indonesia, 18(3), 222-234. DOI: https://doi.org/10.25124/jmi.v18i3.1734
Chong, L. W., Low, K. K., Tai, G. H., Tan, L. L., & Tan, S. C. (2015). Factors influencing customer loyalty in airline industry in Malaysia. Unpublished Bachelor's Project paper, Universiti Tunku Abdul Rahman. Retrieved from http://eprints.utar.edu.my/1802/1/BAC-2015-1206820-1.pdf
Young, C., Cunningham, L., & Lee, M. (1994). Assessing service quality as an effective management tool: The case of the airline industry. Journal of Marketing Theory, 2(2), 76-95. DOI: https://doi.org/10.1080/10696679.1994.11501652
Copyright (c) 2020 Then Moliy Virappan, Tak Jie Chan

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
CSRC Publishing and JBSEE adhere to Creative Commons Attribution-Non Commercial 4.0 International License. The authors submitting and publishing in JBSEE agree to the copyright policy under creative common license 4.0 (Attribution-Non Commercial 4.0 International). Under this license, the authors published in JBSEE retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially. All other authors using the content of SBSEE are required to cite author(s) and publisher in their work. CSRC Publishing and JBSEE follow an Open Access Policy for copyright and licensing.