T H E S I S
SERVICE SCIENCE PERSPECTIVE ON CUSTOMER SATISFACTION
FOR IMPROVING AIRPORT PERFORMANCE
(CASE STUDY: ADISUTJIPTO AIRPORT AND GOTEBORG LANDVETTER AIRPORT)
Submitted by : Rossi Danny Sakti
820712-T313
FACULTY OF ECONOMICS, COMMUNICATION AND IT KARLSTAD UNIVERSITY
SWEDEN 2010
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T H E S I S
SERVICE SCIENCE PERSPECTIVE ON CUSTOMER SATISFACTION
FOR IMPROVING AIRPORT PERFORMANCE
(CASE STUDY: ADISUTJIPTO AIRPORT AND GOTEBORG LANDVETTER AIRPORT)
A Thesis Submitted in partial fulfillment of the requirement for the Double Degree Master Programme in Transport System and Engineering and
in Transport Service Management
Submitted by : Rossi Danny Sakti
820712-T313
iii
iv
DECLARATION
I hereby declare that the work described in this thesis, except where
v
“For you make me glad by your deeds, LORD;
I sing for joy at what Your hands have done.
How great are Your works, LORD, how profound your thoughts!”
(Psalm 92 : 4 – 5)
“Life is a game, no matter and how many you fail, just do with your brave and have fun with it” (Honji)
“Do What you can do with your best, there is no chance to second opportunity”
I dedicate my works for My Grandma For Her Blessing My father and Mother For Their Prayer My Sister and My Brother For Their Support
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ACKNOWLEDGEMENTS
Praise and Worship to The Almighty Jesus Christ, The Saviour for His light that guidance the writer accomplish this thesis as a partial fullfillment of the requirements for the degree of Master of Science in Transport System and Engineering in Gadjah Mada University and Transport Service in Karlstad University.
The author would like to express his gratitute to those who have contributed in this thesis as mention in following :
1. Prof. Dr. Ir. Siti Malkhamah, M.Sc as Director of Master Programme in Transport System and Engineering, Gadjah Mada University and as the main supervisor for all the advice, guidance and assistance in this thesis.
2. Prof. Lars Hoglund as a bitr professor, for guidance and assitance in this thesis and for allowing me to study in Karlstad University.
3. Pattrick Gottfridson, Ph.D as the main supervisor in Karlstad University for all the advice, correction, guidance and assistance that make the thesis more colourful.
4. Ir. Djoko Murwono, M.Sc and Ir. Wardhani Santoso, M.Sc as the thesis examiner for their evaluation.
5. Board of Education and Training, Ministry of Transportation under the Indonesia for endowing financial support, so the author can enroll Master Programme at University of Gadjah Mada and Karlstad University.
vii 6. Director of Air Transport and his Deputy of Air Transport, Ministry Of Transportation, for his approval and enable the writer to study and reach Master Programme in Gadjah Mada University and Karlstad University.
7. General Manager of Adi Sutjipto Airport and his staff, for giving permittion, so the author could have information for this thesis.
8. Lectures, Staffs and Friends at Gadjah Mada University and Karlstad University, for giving the author more knowledges, share the time together for good and bad time.
9. All of My Big Family for encouragement and support that make the this thesis done.
10. Friends, for encouragement and for wonderful moments and time.
The author realize that this thesis still need improvement, so the author with openness heart could receive any suggestions from readers as an input to refine this for further research.
Yogyakarta, December 2010
Rossi Danny Sakti 08/275818/PTK/5159
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Table of Contents
Title ... ... i
Abstract ... xiii
Table of Contents... viii
List of Figures... xi
List of Tables... xii
I. INTRODUCTION... ... 1
A. Background... 1
B. Practical Problems... 2
1. Theoretical and Conceptual Views of The Problems... 5
C. Research Questions... 7
D. Objective... . 7
E. Limitation... 8
F. Thesis Outline... 8
II. THEORETICAL FRAMEWORK... 11
A. Customers and Services... 11
B. The Way of Services... 15
1. Customer Oriented... 15
2. Customer Involvement... ... 15
3. Service Development Logic... ... 19
4. Service Standard... 19
5. Dimension Of Service... 21
6. Value in Customer’s Perspective... 22
C. Customer Satisfaction... 25
1. Customer Satisfaction in Service Quality and Expectancy Disconfirmation.... 29
2. Theoretical Framework as A Guidance of The Research... 30
III. RESEARCH METHODOLOGY... 32
A. Research Approach ... 32
1. Case Study Research... 34
2. Data Collection... 35
B. Design Of The Questionnaire... 36
C. The Practical Data Collection... 39
D. Data Analysis... ... 40
E. Validity... 42
IV. EMPIRICAL STUDIES... ... 43
A. General Term of Airport as A Part of Air Transportation... 43
B. Air Transportation and Airport in Indonesia... .... 45
C. PT. ANGKASA PURA 1 as a State-owned Enterprises Airport Company... 46
ix
D. Adisutjipto Airport In Yogyakarta... 47
1 .General Description About Adisutjipto Airport... 47
2. Adisutjipto Airport Design and Traffic... 48
3. Adisutjipto Airport Operations... 51
E. Sweden and Swedavia As A State – Owned Company... 52
1. Sweden on A Customer Satisfaction Perspective Side... 52
2. Swedavia As A State – Owned Company... 53
V. RESULTS AND DISCCUSSIONS ... 56
A. Internally Qualitative Findings ... 58
1. Internally Discussion Phone Call with The Official of Angkasa Pura, Ltd... 58
2. Internally Regulation Findings... 59
3. Internally E-mail Correspondence... 60
4. Internally Summarize Analysis... 60
B. Externally Qualitative Findings... 61
1. Externally Discussion Findings from Customers Questionnair using CIT Technique... 61
1.1 Externally Summarize Findings Results From Customer Questionnair using CIT Technique ... ... 79
2. Traffic Flow Analysis based on Customers Questionnaire... 80
2.1 Traffic Flow Summarize ... 85
3. Externally Phone Interview with Official of Swedavia – Sweden Airport... 85
C. Innovation Findings Analysis ... 91
1. Innovation on Swedavia, Ltd – Sweden... 91
2. Another Innovations from Public Transports Company... 94
D. Comparison Summary Analysis based on Qualitative Data Findings... 95
E. Quantitative Findings Analysis... 96
1. General Quantitative Analysis... 96
2. Respondent Scoring Analysis... 96
3. Mean Scoring Analysis... 98
VI. INTERPRETATION... ... 101
A. Interpretation based on The Prioritized Dimension of Service... 101
1. Interpretation in Operational – Infrastructure Area... 101
2. Interpretation in Policy Area... 104
B. Another Interpretation based on Another Qualitative Analysis... 105
1. Another Interpretation in Operational-Infrastructure Area... 105
2. Another Interpretation in Policy Area... 107
C. Innovations for Improvement... 108
VII. CONTRIBUTION... ... 111
A. Conclusion... 111
B. Research Obstacles... 114
C. Suggestions for The Next Research... 115
x
References... 116
Appended Material Research... ... 120
Appended Material for Chapter 1... ... 138
Appended Material for Chapter 3... 140
Appended Material for Chapter 4... 140
Appended Material for Qualitative Data Findings... 148
Appended Material for Quantitative Data Findings... 159
Appended Material for Picture in Adisutjipto Airport... 162
xi List of Figures
Figure 1.1 Airport Service Charge Complaint ... 138
Figure 1.2 Comment From Forums... 139
Figure 1.3 Flowchart Diagram of The Thesis ... 139
Figure 2.1 The Molecular Model... 14
Figure 2.2 Value as A Trade-off in Consequences... 24
Figure 2.3 The Expectancy disconfirmation with performance model... 26
Figure 2.5 Customer Assessment of Service Quality... ... 29
Figure 2.6 Customer Assessment of Satisfaction to Improve Service Quality... 30
Figure 2.7 Theoretical Framework Flow Chart... 31
Figure 3.1 The Framework Design of Customer Satisfaction ... 37
Figure 3.2 Practical Research Design ... 140
Figure 4.1 Organizational Structure on PT. Angkasa Pura I... 46
Figure 4.2 Existing Terminal Layout... 49
Figure 4.3 Airport Facility Arrangement ... 50
Figure 4.4 Existing Traffic Condition on Adisutjipto Airport on 2004, 2006-Sept,2009.. 51
Figure 4.5 The industry trends enlightening Swedish Quality Index 1989 – 2009... 53
Figure 4.6 The Swedavia Management Structure... 54
Figure 4.7 The Airport Existing Layout... 146
Figure 4.8 Sweden on EPSI... 146
Figure 4.9 Location on Swedavia Airports... 147
Figure 5.1 Analyse Certain Process Link Between Government, Operator and Customers 60 Figure 5.2 The Existing Traffic Flow when Entering to The Airport... 80
Figure 5.3 The Existing Traffic Flow when Leaving The Airport... 83
Figure 6.1 The Example Concept of Special Airport Busses... 110
xii List of Table
Table 2.1 Historical Definition Of Service... .. 13
Table 2.2 A Comparison between Customer Value and Customer Satisfaction... 24
Table 3.1 The Design of Questionnaire... 37
Table 3.2 SKEP 284 based on Services Directly on Customer... 149
Table 4.1 Passenger Handling System Processes... ... 44
Table 4.2 National and International Traffic in Indonesia... 46
Table 4.3 Arrival and Departure Passenger on Adisutjipto Airport... 50
Table 4.4 Routes and Airlines which are served in Adisutjipto Airport... 51
Table 4.5 The Facts on Goteborg Landvetter Airport... 55
Table 4.6 The Information about Indonesian Airport... . 141
Table 4.7 Technical Data of Adisutjipto Airport, Yogyakarta... 144
Table 4.8 The Traffic on Swedavia Airports... 147
Table 5.1 Comparison between SKEP 91 and SKEP 84... 59
Table 5.2 Raw Material from Respondent Questionnaire... 71
Table 5.3 Summarize problems from CIT questionnaires... 79
Table 5.4 Comparison Analysis between Adisutjipto Airport Vs Goteborg Landvetter Airport ... ... 95
Table 5.5 Rank in Respondent Questionnaire... 98
Table 5.6 Quantitative Data Findings... 159
Table 5.7 Scoring on Questionnaire... ... 160
Table 5.8 Mean Scoring on Questionnaire... 161
Table 6.1 Interpretation in Operational – Infrastructure Area... 102
Table 6.2 Interpretation in Policy Area... 104
Table 6.3 Interpretation in Operational – Infrastructure Area... 105
Table 6.4 Another Interpretation in Policy Area... 107
Table 6.5 Innovations for Improvement... 108
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ABSTRACT
Serving public needs in transport is crucial in every country, especially for air transport which is needed by people because of its advantage for fast, comfort, and reliable. Airport todays, does not only discharge the passengers, but for serve the passengers in business via service development logic, except for just build many facilities, it is important to know “what really happens” from customers perspective and mixed with conceptual and practical view to improving airport performance.
This research was done by combining qualitative and quantitative method. The qualitative method including CIT Technique using questionnaire by involving the customer to find the problems and gathering the ideas, discussing via Phone Call with Gotebord Landvetter Airport Manager and Angkasa Pura II,Ltd to compare what should Airport Company do due to improve their performance and learn from many public transportation in Sweden by literature and field study to making innovation which could be done in Indonesia. Quantitative method is needed to formulated the worst problems and prioritized the solution by making rank in dimension. It is not only one method but by combining the two methods to get deep analysis, fruitful ways to get rich information and could see many perspectives and solutions to improve airport performance.
The results of this research which are expected to offer the solution to fix the infrastructure that affect the airport operational, change or build a new policy in airport performance that encourage the airport to build its services policy and making innovations to improving airport performance.
Keyword : Service science, Service, Airport, Airport Performance
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I. INTRODUCTION
A. Background
Serving public needs in transport is crucial in every country (Hensher and Button, (2003)). Constrastly, people are always demanding a better service every time, but at the same time, the classical problem still exists every year such as poor on time public transport performance, poor accessibility to and go from destination and poor general public transport services. The same situation is also experienced with air transportation. Traffic factors such as passengers, bags, post and routes, also deregulations influence directly or indirectly in the demand itself (Hensher and Button, (2003).
Since in the beginning, the customers want to use the air transportation because of its benefits rather than any public transports, so that years by years, it was proven that the traffic for air transportation always tend to positive increasing rather than any public transports and then the deregulation role that made a positive traffic progress which bring good and bad side if it could not be carefully maintained.
The passengers or customers, seen fro smervice science perspective, have unique characteristic in how they evaluate and decide what kinds of services they want (Woodruff & Gardial, 1996). That is why the customers as the one of the biggest factor could influence directly to public transportation. If the public transport organization can not response to “what are really happen” about passengers, they can lose it or as Wayland & Cole (1997, p. 131) say "As customers change, learn, and evolve in response to the pressures they face,
2 businesses that serve them must change with them or lose out”. Like two side of a coin if the services run well, they will probably be satisfied or if the services run worst, they will probably be dissatisfied and choose another services.
In globalisation context and with very fluctuative market challenges in the world which forces many companies to improve their services, it has became a important issues how the company could identify the customers and their needs and their problem and to be able to provide a solution together with the customers in order to improve the service providers.
All of the studies both qualitative and quantitative researches including airport services case in Indonesia, especially in Yogyakarta are conducted to reveal the problems which clearly affected the passenger satisfaction while they were at the airport and to identify the steps to create solutions.
B. Practical Problems
A basic problem is defined that there is an indication of low, or poor, service quality which offers imbalance with the the passenger’s willingness to pay. People believe that they should be given more worthy service since they pay the charges that also increases every year (see : appendix), it means that the company still could not understand how to satisfy the customers and how to deal with the customers through the services.
Lack of capacity has existed ever since the implementation of air transport deregulation in Indonesia in 1998. Due to this deregulation, many airlines came in and compete, and due to that there is not enough capacity when it comes to, so that nowadays, the better improvement is needed to fix this problem.
3 Based on Indonesia Statistic Agency (BPS) data, the people who travelled (deplaned) in 1999 were 10.970 and in 2008, there were 43.442 people, and it will increase yearly, so that it has significantly increased 396 %. The airport facility, services and airport regulation. This fact is clear since the today capacity in Adisutjipto is 1 million traveller/ year and it is not enough since the passenger traffic in Adi Suciptjo airport that reach 3millions traveller / year, even there are now planning to increase the capacity to 2.5millions/ years (Tender Indonesia, 2010) .
It means that the lack of capacity occured because of the imbalance between passenger and airport capacity, facility, services and passengers traffic in airport itself, for that, it makes gap that affect the customers feeling (satisfy or dissatisfy) which the facts could be found on appendix chapter 1.
Another fact revealed that passenger were disappointed about parking charge which is not suitable for parking standard, even more expensive than
“middle-up or up” classified airport, poor road parking environment, unadequate security and unadequate passenger seats (Batavia, co.id , 2010). The critics are also raised because there are no really service standards among all the airports, while at the same time, the airport priorities are to make money rather than improve their services to passenger (Investor daily, 2009). All of the facts are strengthed by the fact that Indonesian Minister of Transport told has asked the airport authority to focus on passenger traffic management, the airport’s cleanness and their poor environment in Soekarno Hatta Airport Which is the Indonesia’s Main Airport (Gafeksi Magazine, 2009).
4 Other problem which still dominating poor organization’s transparency and accountability are people’s behaviour in Indonesia in which most of them ignored their rights to complain, because most of them think that is useless for complaining and the authority will not respond seriously about it and another opinion tells that they don’t want to questioned about a little things such as toilet, or cleanness of the airport even they know there is something wrong about that.
But, even there were a investment which began to built more “comfortable” toilet, still there are some people complain about the toilets and their unpleasant staff behaviour because sometime they asked the passenger to give the souvenir especially for abroad passenger which have been arrived in the airport (Gatra, 2000).
So that, many people believed the indication of main problems are defined that the airport authority ignored the passenger services, late respond to make better services , and pretend to making money in their business. For this case, the performance of airport is really important and innovations is still needed to anticipate that problems.
Discussing about performance that affected to passengers/customers satisfaction means how customers view an organization’s products or services in light of their experiences with that organization (or product), as well as by comparison with what they have heard or seen about other companies or organizations (Kogan Page, 2005).
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1. Theoretical and conceptual view of the problems
Improvement of public transport services, especially airport which is a part of air transportation must be considered not just only to balance supply and demand and provide with quantitative infrastructure, it is also about to know
“what happen there” and what the customer need and want. To answer that, knowing the customer’s need, finding the gap, between customer and company by measuring the satisfaction level performance and all of the process, the customers must be involved.
However, It should be noted that customer satisfaction comes from the customers that only them could judge the quality of the service delivered as
‘good’ but they may not have had satisfaction from the experience (Randall and Senior, 1996). Rather than service quality are just the attributes of the service itself (Crompton and MacKay, 1989), but they are always connected and interdepent to measure the satisfaction.
Discussing about the customer, the company should know itself in positioning to offer services by knowing :
a. Who is Our Customers?
b. What are our Customers legitimate?
c. How well the company serve our customer’s need?
(Alan Tripper, 1999)
6 a. Knowing : who is our customers?
By knowing the customer, it can be identified how to assess the gap between the customers and company, basically there are three characteristic that usually founded in customers (Joe Tidd and Frank M. Hull , 2003) :
(1) Things are not being done for customer which inhibit their ability to get a desired outcome.
(2) Things are being done badly for the customer, which impedes the seamless experience that leads to a desired outcome.
(3) Things are being done by customers themselves-with concomitant cost in time, money, effort and overall hassle – and which could either better by the provider, or be done in an integrated fashion to minimize customer costs.
b. What are Our Customers legitimate?
The customers legitimation are the basic customer’s need when they measure their experience with “what happen” when the company offer the service.
The previous research infered that the lens of customers when travelling include in some criteria such as accessibility, esthetics, sitting comfort, electronic, equipment and cleanliness (Wakefield and Blodgett, 1996).
c. How well the company serve our customer’s need?
Paternoster (2007) said that it is difficult to manage the airport (serve our customer’s need) because there are a lot of infrastructures, systems, workers and regulation which are affected directly or indirectly with (customers).
Furthermore, she mentioned airport management need to take serious
7 consideration on strategic and holistic approach to customer service and airport branding. Positive experience of airport passenger was significantly improved airport net revenue. It is can be tracked from direct relationship between passenger satisfaction and airport revenue. The approach key uses synergy which is created when their offering met with customer’s need an expectation. Responsibility for customers complains, services, facilities , procedures, systems and standards are crucial to built and met the standard of customer’s need.
Overall, performance of airport in Indonesia is not good enough compared to the customer’s expectation. Many problems occurred because of lack of poorly airport management to serve customers, over capacity rather than passengers traffic, lack of customer’s need such as security and comfortness should be concerned to improve customers satisfaction (Kompas, 2009).
C. Research Questions
The research wants to questioning about:
1. What are major problems which influenced the customers related to satisfaction?
2. What are the alternative solutions including the service mechanism and design that can met customer’s need according to satisfy or dissatisfy of airport services?
D. Objective
The problems which is stated in the chapter above explain all of the real conditions that still occur until now, it means that there are indications of lacking
8 airport management and dissatisfy from the customers. Based on this statement, the objective of this research are :
1. To find out “what really happens” when people ever experiences while using airport services
2. To investigate and formulate the problems behind airport services.
3. To offer the solutions for airport authority especially limited in Adisutjipto Airport as a learning point to another airport authorities in Indonesia how should the company view and run the services based on customer’s perspective.
E. Limitation
The comparison of Adisutjipto Airport, Yogyakarta - Indonesia and Gotebord Landvetter Airport – Sweden was taken for this research which is concerning about customer satisfaction and the land side research area for the main research study in Airport. The research is only concerned on about the customers satisfaction and find out the dissatisfy variable on research questionnaire and use it with qualitative and quantitative method.
F. Thesis Outline
The outline of thesis is used to give the guidance for reader the sequence works and steps in this research and gives a quick overview and understanding of this research.
9 The thesis outline which is presented in detail on appendix begin in Chapter 1 which is identified the background and problems on the research area including some practical or theoretical view, then when the problem can be identified, the research should find the objective based on the problems and questioning that the researcher should do on this research with some limitation and using the data.
Chapter 1, Introduction and research problem will presented the background, problems and objective.
Chapter 2, Theoretical Framework will give the theories which support this research as a basis of the analysis.
Chapter 3, Empirical Studies present about the case on Airport condition in Indonesia, especially in Adisutjipto and studies in Goteborg Landvetter Airport Chapter 4, Research Methodology present about how the research will run in this thesis
Chapter 5, Discussion will give analysis deeply about qualitative and quantitative research.
Chapter 6, Interpretation will give an recommendation, solutions and innovation practically for airport company.
Chapter 2 describes the theories to support the research by using the literature, books, journals and giving some definitions and method how to the
10 research works in structure way, and Chapter 3, focus on the case based on the data, giving the real condition about customer’s need and perception according to customers satisfaction. Chapter 4, focused on how the research will conduct in qualitative and quantitative, then give an further explaination the foundation of the research. Chapter 5 gives the analysis based on chapter 3 and how to interpret the data on the field , and also on the literature and previous studies, comparing the situation in Adisutjipto Airport, Indonesia and Goteborg Landvetter Airport, Sweden. Chapter 6 is the solution how to overcome that kind of problems occurred, and gives some feedback, recommendation to Adisutjipto Airport, Indonesia and some recommendation about the future research, also it prescribes some important thing to know base on the customer’s.
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II. THEORETICAL FRAMEWORK
Based on the purpose of the research above, this chapter describes clearly the foundation of the research by asking “how should the company view and run the services based on customer’s perspective”, so that the company not lose their direction.
It is important to discuss about the customer as a important and critical person that can or should be involved in the business process.
Beside this, Understanding the services as a logic part for develop the business, so that the company know how to create the service standardize based on the service dimensions is also very important.
By creating framework based on customers, services and their involvement in the innovation and solution process give a possibility to create a deep understanding about and paradigm in services logic: how should services must be delivered to customers.
However, this chapter also will be a guidance how to use this framework for the research to improve the company performance via customer satisfaction research.
A. Customers and Services
In the modern era, many companies and experts believe if they want to win the business competition and make profits, they must know, listen and understand the customer (Wooddruff and Gradial, 1996).
12 According to Zeithamal et. al (1990), L.L. Bean- the successful direct-mail marketer says
“What is a customer? A customer is the most important person even in this office... in a person or by mail. A customer is not dependent on us-we are dependent on him. A customer is not an interruption of our work... he is the purpose of it. We are not doing a favor by serving him... he is doing us a favor by giving us the opportunity to do so. A customer is not someone to argue or match wits with.
Nobody ever won an argument with a Customer. A Customer is a person who brings us his wants. It is our job to handle them profitably to him and to ourselves”.
According to Johnson (1998), the term customers’ is used to include any individual, group, or organization that purchases and consumes a product and/ or service offering.
Some experts make a definition of customer by using a correlation between willingness to pay and perceived satisfaction with service. According to Blumberg (1991), there are at least three types of customers in the market place with regard of price :
1. Price – sensitive customers. There is a class of customers who are extremely price – sensitive.
2. Price – quality customers. A large percentage of the marketplace (approximately 50%) tends to make a balance trade-off between price and quality.
13 3. Time and quality-sensitive customers. The third class of customers is extremely sensitive to time and service quality and is relatively price sensitive.
Based on understanding of customer above, basically it is about serving the customer and focuses on serving the customer, regardless of whether its core product is a physical good or an intangible (Joby John 2003).
Today, when the concept services already are implemented, it had been argued that the term services is still not used in a consistent way (Cowell 1985).
The summary of service in different perspective can be described in Table 2.1 (Walter & Bergiel 1982).
Table 2.1 Historical Definition of Service Historical Definition Of Service
The Physiocrats (c. 1750) All activities other than agricultural production Adam Smith (1723 – 90) All activities that do not end in tangible products J.B. Say (1767 – 1832) All non-manufacturing activities that add utility to goods Alfred Marshall
(1842 – 1924)
Goods (services) that pass out of existence at the moment of creation
Western Countries (1925 – 60)
Services do not lead to a change in the form of a good
Contemporary An activity that does not lead to a change in the form of a good
American Marketing Association (1960) define the services as those separately identified , essentially intangible activities which provide want- satisfaction, and that are not necessarily tied to the sale of a product or another service. To produce a service may or may not require the use of tangible goods.
14 However when such use is required, there is no transfer of title (permanent ownership) to these tangible goods.
In transport view, there are some definitions that categories transport as services :
1. Foote and Hatte (1953) suggest a further classification of transport in
‘Quaternary’ level.
2. Whiteman (1981) defines Transport - both goods and passengers, by bus, rail , air and sea but excluding private motoring.
3. Shostack (1977) stress the importance of intangibility as a fundamental characteristic of services including in transportation. In Airline (or Air Transportation), it cannot be physically possessed, only experienced. The inherent benefit is a service (Figure 2.1).
Figure 2.1 The Molecular Model
Based on the figure 2.1, the transport plays important and fundamental factor that connect every part of intangible and tangible elements. But otherwise,
Service Frequency
Vehicle
In-Flight Service
Food and Drink Pre and
post flight service
Transport Distribution Price
Marketing Positioning (weighted toward evidence)
KEY
Tangible Elements Intangible Elements
15 it could be said that the tangible elements could be a part of the services and represent about that services itself.
B. The Way of Services
Understanding and defining the customer and the services as one whole package is not enough to define what is the customers like as an individual and their needs. So that it is really important to understand the general perception on the customer’s need , involving then to get new perspective and innovation, so that it could be seen how service development logic could work in business.
1. Customers oriented
How the company runs in business always consider about customers, when they can define the customers and how to deal their customer in their services, it is time to consider to focusing what the customers want needing in customer’s perspective to make the services more competitive and acceptable for customers.
According to Kotler (1987, p. 41) A customer orientation holds that the main task of the organization is to determine the perceptions, needs, and wants of target markets and to satisfy them through the design, communication, pricing, and delivery of appropriate and competitively viable offerings.
2. Customers involvement
When the customers talked about many things – their expectation, their priorities and their experiences, manage and commitment to drive the company is not enough. Knowing what the customers expect is the first and possibly most
16 critical step in delivering the service quality. Being a little bit wrong can mean expending money, time and other resource on things that don’t count to customers. Being a little bit wrong can even mean not surviving in fiercely competitive market (Zeithamal et.al 1990).
According to Edvardsson et al., (2000), the services are one of the main bases for profitable business, today, In the service-driven economic, companies try to increase their competitiveness by introducing new products and services that create value for existing customers and then attract new customers.
To attract and create value-in use, the new service concept which is customer involvement that focused on customer orientation are developed. It means by involving existing or potential customers in new and fruitful ways during different phases of the service development process.
Customer involvement means "coming close to customers" in order to learn from and with them in new and fruitful ways using methods beyond traditional focus groups, questionnaires, and interviews. The perspective is thus value creation for, by, and with customers. The intensity of involvement may vary based on various aspects such as type of business, level of complexity, or simply the routine behavior of a company. For a through categorization of user involvement, (Alam 2002) and by a true understanding of the customer is the driver of competitive advantage in today's business environment. The service perspective consequently refers to a focus on business from a customer's point of view, focusing on how to create customer value when using or consuming the service and the other hand, the customer involvement means those processes, deeds, and
17 interaction where a product or service provider collaborates with current (or potential) customers at the program, project, and / or stage level of innovation, to anticipate customers' latent needs and develop new product or service accordingly.
The customer involvement has different purposes that can be linked to a specific stage in the service development process. In the beginning of the development process, the purpose of involving customers is to generate ideas or to help a company decide where to focus their business development.
The benefits for Customer involvement are a. Superior and differentiated service
With customer interaction, it is possible to develop a differentiated new service with unique benefits and better value for the customers. It is a key issue because today's customers are more sophisticated and demanding and search for superior value in a new service. According to Nicholas Donofrio , senior VP of IBM global services, "Our interaction with customers gives us a more refined process for identifying problems that will fulfill our purpose of providing competitive value faster.
b. Reduced Cycle Time
Customer interaction / involvement may help shorten development cycle time, also known as “time to market”. The process of customer interaction may yield the most up-to-date information about customer preferences and needs that are changing fast. This potentially reduces the need for alterations in service delivery process in the later stages, because a firm can collect and
18 process customer information for its New Service Development (NSD) projects on a concurrent basis.
c. Rapid diffusion
Customer involvement in the NSD process helps in rapidly diffusing innovation. This may help accelerate the market acceptance of a new service.
This "time to acceptance" is key success factor for many new services. One rationale for this assertion is that the interaction process may educate a customer about the specifications, attributes and use of a new service which in turn helps in building a quick support for the innovation. Customer interaction also provides crucial assistance in the diffusion of many technical oriented services mainly in the financial services industry.
d. Long-Term relationships
Providing potential customers with the experience of participation in the NSD process helps win their loyalty, and can improve a customer-service producer relationship. For example, the customer may feel that the firm listens to what he has to say and may decide to buy the new service or may even promote it to other users.
One of the technique that can be used for “problem solving” focus is a typical one-on-one interview probes a customer’s whole situation to discover both general and detailed needs of the customers (Griffin and Hauser, 1993).
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3. Service development logic
In traditional way, the company see the customer as a part of goods, when the company produce goods/ infrastructure (GDL) to identify the customers’
satisfaction, but Gronroos (2000) view of a service perspective on all business and the "service - dominant logic (SDL)" championed by Vargo and Lusch (2004a). In this sense, it is talked about service development which view the goods element as an integral part of an offering, rather than view goods and services as two separate types of marketing (Edvardsson et al. 2006).
Vargo and Lusch (ibid.) argue that a service-centred view of the relationship between supplier (providers) and customers implies that ‘value’ must be defined by and co-created with, customers- rather than being embedded in notions of output, defined products, or services attributes. This ‘value’ is perceived by the customer in terms of ‘value-in-use’.
Further, the goods – dominant logic (GDL) focused on value in exchange, contrast with the service-dominant logic that emphasizing value-in-use and value- in-context (Vargo and Lusch, 2004).
4. Service standards
Many people believe that services are difficult to measure because the services are too intangible. When these things happen, all the activities are vague and they can loose standard setting with little or no measurement or feedback (Zeithamal et.al 1990). Zeithamal argued that in reality, many service tasks are routine (such as cleaning a toilet, security inspection, spraying lawn for insects),
20 and for these spesific rules and standards can be fairly easily established, measured and effectively executed.
According to Harvard’s Ted Levitt, a long-time of service industries, standardization of service can take three form:
a. Substitution of hard technology ;
Hard technology can simplify and improve customer service, particularly by handling routine, repetitious tasks and transactions. Customer-service employees can then spend more time on the personal and possibly more essential portions of the job.
b. Improvement in working methods or soft technology;
Standardizing some aspects of the services process is often desirable in providing consistent service quality. It can reduce time and keep same level of services to keep customer satisfaction.
c. Combinations of these two methods.
Another important advantage of standardizing routine transactions is that the firm can free the resources to personalize and improve service to its best customers.
In another definition, Service Standard is a fixed minimum or maximum value of a specific performance or other indicator that should not be exceeded (Giannopoulos 1989).
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5. Dimension of service
Zeithamal et. al. (1990) said that the only criteria that count in evaluating the service quality are defined by customers. He founded ten general criteria or dimensions based on their research, they are
a. Tangible: Appearance of physical facilities equipment, personnel and communication materials
b. Reliability: Ability to perform the promised service dependably and accurately c. Responsiveness: Willingness to help customers and provide prompt service d. Competence: Possession of the required skills and knowledge to perform the
service
e. Courtesy: Politeness, respect, consideration, and friendliness of contact personnel.
f. Credibility: Trustworthiness, believability, honesty of the service provider.
g. Security: Freedom from danger, risk or doubt h. Access: Approachability and ease of contact
i. Communication: Keeping customers informed in language they can understand and listening to them
j. Understanding the customer: Making the effort to know customers and their needs.
In the context of public transport, Stradling et.al (2007) found that satisfaction with bus services depends on a variety of non-instrumental factors such as cleanliness, privacy, safety, conveniences, stress , social interaction and scenery. Attributes in Service Dimension like reliability, frequency, comfort,
22 information, driver (staff) behavior, and cleanliness are shown to be key elements of public transport user satisfaction (Bates et al. 2001, Beirao & Cabral 2007, Friman & Garling 2001, Hencher et al. 2003).
On the other hands, the report from SAMOT (Service and Market Oriented Research Group) at Karlstad University ( 2009 ), identify the public service dimension on four basic factors: safety/security, system (with supply and reliability items), comfort and staff behavior (refers to the authors or to (SAMOT, 2009).
According to Felleson & Friman (2008), in spite of many differences on service dimension and without going into details regarding the critique against the generic models and ensuing debate, it makes sense to apply the idea of generic service quality dimensions with some care. Even within the same industry, there are might be considerable differences in how the service is perceived by the customers, due to various ways of producing the actual service and due to customer differences.
6. Value in customer’s perspective
Words in value terms have different meaning in many perspectives, but when the value which is related to customers has a few meaning. According to Joby John (2003), customer value is what the customer thinks he or she is getting in return for what the customer has to be a part with, reflecting an implicit comparison akin to “give and receive”. Further, Customer values are :
a. Is what the customer believes that a product or service provides in a certain use situation.
23 b. Is an implicit comparison between what the customer receives from the provider and what the customer provide in time, effort and money. It is not only just the price, but also the ease and convenience in the acquisition and use the product (service) and the whole interactive experience the customer has with the firm.
c. Is the customer’s rather than the provider’s perspective.
d. Is dynamic, in that it can change over time before, during, and after the purchase, the use, over repeated use of the product, and during all the various stages in the relationship with the providing firm.
e. Can vary over different use situation
f. Can be shaped by attitudes, opinions, and behaviors of others, such as friends, family, media, and the the providing firm.
g. Determines customer satisfaction.
h. Is hard to measure and keep track of. Customers may find it hard to articulate all the different dimensions of customer value and firms may find it a rather onerous task to keep track of all the manifestations of customer value.
In other hands, Woodruff and Gardial (1996) view the customer value as the customers’ perception of what they want to have happen (i.e, the consequences) in a specific use situation, with the help of a product of service offering, in order to accomplish a desired purpose of goal. There are three important elements of this definition : (1). The purpose of the products/services use can be broadly classified as value-in-use, (2). The outcomes that are experienced by the customer, (3) The
24 customers’ judgements in value which is highly influenced by and best determined within the constraints of a particular use situation.
The ability of customers to attain their desired purposes or goals is determined by the consequences of product use which are outcomes that are experienced by the customer as a result of product (service) use. (Figure 2.2).
Considering that value as the result of the trade-off between positive and negative consequences of services / products use as perceived by the customer, service providers must keep in mind that customers will receive multiple consequences as a result using a product/service and that it would be highly unusual for these consequences to be all positive or all negative (Woodruff and Gardial 1996). So that, by improving the positive consequences (benefit), it will affect how the customers perceived value, and it will be improve the satisfaction.
When we see the value and satisfaction, it seems the same but they have different perspective. Table below which can describe in holistic perspective about value and satisfaction difference.
Table 2.2 A Comparison between Customer Value and Customer Satisfaction Customer Value is.... Customer Satisfaction is...
1. What the customer desires from the product or service
The customer’s reaction to or feeling about what he or she received
2. Exhibit a future orientation is independent of the timing of the
Tends to exhibit a historical orientation; is a judgement formed during or after product/
Perceived positive consequences (benefit or desired outcomes)
Perceived negative consequences (sacrifices or costs)
Value
Figure 2.2 Value as A Trade-off in Consequences
25 product use/ consumption service use or consumption
3. Exists independent of any particular product/service offering
Is an evaluation directed at a particular product / service offering
4. Provides direction for the organization: what they should do to create value
Provides a report card for the organization.
C. Customer Satisfaction
When someone angry and upset with unprofessional customer service officer, at the time he/ she needs help, it means that he dissatisfied with the service. In many cases, satisfaction is known to be a great value in understanding customers perception and evaluation (Oliver 1997). So that, many experts try to make definition and theoretical framework about how should services perform and how to delivery service quality to improve customer satisfaction.
According to Woodruff and Gardial (1996), customer satisfaction is a customer’s positive or negative feeling about the value that was received as a result of using a particular organization’s offering in specific use situations. This feeling can be a reaction to an immediate use situation or an overall reaction to a series of use situation experience. Further, Determining whether a product/ service is satisfying or dissatisfying is essentially an evaluation process. The customer is required to make a performance judgement. It should be noted that it doesn’t matter how the product/ service actually performed. Satisfaction is strictly tied to the customer’s perception or product performance. Next, perceived product (service) performance is compared with a standard representing the service performance that the customer expected.
3. Exists ...
26 In the same meaning, it said that The expectancy disconfirmation with performance (EDP) framework (Oliver, 1997) is one of the most common theories of consumer satisfaction. A basic assumption is that satisfaction or dissatisfaction results from a comparison of expectations with actual performance. Imagine a person using public transport in her everyday life. One day, she thinks about whether the service was as good as expected. Initial expectations are confirmed in some cases whereas actual performance is disconfirmed in other cases.
If a person has higher or lower expectations regarding performance than a service provides, disconfirmation beliefs will arise (called the disconfirmation effect). As illustrated in Figure 1, expectations and performance are linked by curved, double-headed arrow implying a correlation between expectations and performance. Oliver assumes that this correlation varies with the service being investigated. A positive relation between expectations and performance could emerge when perceiving oneself to be in control of performance, no relation when performance is completely outside one’s control and negative relation when, for instance, high expectations cause moderate performance to be weighted as poor.
Figure 2.3 The Expectancy disconfirmation with performance model (adapted from Oliver, 1997)
Expectations
Performance Outcomes
Disconfirmation Satisfaction/
Dissatisfaction
27 The disconfirmation effect, which is separated to the effect of expectations and performance, has been described as the subjective difference between expectation and performance. Confirmed or disconfirmed expectations affect whether one feels satisfied or dissatisfied with the service and implies an evaluation of better or worse than expected. Thus, satisfaction often starts with the expectations a person has. Expectations seem to be based on and influenced by personal needs, word-of-mouth communication, and past experiences (Oliver, 1997).
Also, Woodruff and Gardial (1996) said that the comparison of perceived performance with the comparison standard result in disconfirmation, or the difference between what was expected and what was received. A means that an area immediately surrounding the comparison standard is labeled the “zone of indifference”. This zone indicates that, the customer’s perspective, there may be some latitude within which product/ service performance may vary but will still be evaluated as “meeting expectations”.
Of great importance is what happen when the performance of the product or service deviates significantly from the standard of comparison and falls outside the zone of indifference. If the performance falls well short of expectations, the customer will experience what is known as “negative disconfirmation” - the expected product/ service performance is disconfirmed ( the product/ service did not meet the comparison standard goal) and the direction of the disconfirmation is negative (i.e., is significantly less than what was expected).
28 In other direction to the right of the zone of indifference is product performance that increasingly exceeds the comparison standard and thus represent superior or unexpectedly good product or service performance. This is known as
“positive disconfirmation” – while expected performance is not confirmed, the direction of the disconfirmation is positive, or better than what the costumer expected and then satisfaction is also the evaluation or feeling that result from the disconfirmation process.
In other hands, some experts say that to improve service performance, it is needed to know how company delivering the service quality. According to Zeithamal (1990), customer assessment of service quality has a dimension of services which is discussed on chapter 2.4 and factors that influencing expectation as a comparison in perceived service. There are several key factors that might shape customers’ expectation. First, what customers hear from other customers – word-of-mouth communications-is a potential determinant of expectations.
Second, personal needs of customers might moderate their expectation to a certain degree, Third, the extent of past experience with using a service could also influence customers’ expectation levels, and fourth, external communications from service providers play a key role in shaping customers’ expectations. The summary will be presented on Figure 2.5.
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1. Customer satisfaction in service quality and expectancy disconfirmation
From the expectancy disconfirmation with performance model (adapted from Oliver , 1997), it is generally assumed that satisfaction judgment originate in a comparison of the performance perceived by the person using some form of evaluative standard. Meanwhile, Zeithamal (1990) said to improve service performance by delivering service quality. But it is argued to know how to deliver the service quality if there are no customer assessment on customers satisfaction / dissatisfaction.
Firstly, it should know by measuring the result of customer’s perceived and expectancy and know the gap between expected service and perceived service which is service’s performance that company offer and then fixing the gap to improve service performance.
Gap Dimensions of
Service Quality:
Tangibles Reliability Responsiveness Competence Courtesy Credibility Security Access
Communication Understanding
Expected Service
Perceived Service / Performance Occur
Word of
Mouth
Personal Needs
Past Experiences
External Communications
Perceived Service Quality
Figure 2.5 Customer Assessment of Service Quality.
30 Figure 2.6 Customer Assessment of Satisfaction to Improve Service Quality
2. Theoretical frame work as a guidance for the research
As a guidance for the research, the theoretical framework which is summarized in figure 2.7 in order to support the research by giving a basic explanation about why the research involve the customers and why the research want to improve the airport service performance. It also gives a summary explanation process how should the company view and run the services based on customer’s perspective.
Gap Dimensions of
Service Quality : Tangibles Reliability Responsiveness Competence Courtesy Credibility Security Access
Communication Understanding the customer
Expected Service
Perceived Service / Performan ce Occur Word of
Mouth
Personal Needs
Past Experiences
External
Communications
Customer Satisfaction Disconfirmation
Repeated Experiences
31 Figure 2. 7 Theoretical Framework Flow Chart
The first section that the company must do, is to define the customers and services based on theory and then mapping their bussiness by view and review their bussiness with service logic, the ways of services logic run is by understanding the service development perspective, service standard, customers involvement and dimension of service quality.
The second section is about research area that will be decribed on how to identify the problems and customer’s need by doing a research and then processing the data with qualitative and quantitative method to get innovations and solutions based on customer’s perspective.
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III. RESEARCH METHODOLOGY
In this chapter, the information about research and the approach of the research will be described and it will discussed about validity and reliability to get quality standard of the research.
A. Research Approach
Based the aim of the research to know “what really happen” with customers satisfaction while using the airport services , the approach used paralel both both qualitative and quantitative although they have diffferent purposes. The qualitative research using rich techniques to get the different perspectives and ideas from customers and the quantitative research using a statistic technique to make it more structuralize. The qualitative research was conducted by using internally findings from the officials from The Government and Angkasa Pura,Ltd, while at the same time, the externally findings from the passengers. The quantitative research also was taken from the passengers. (see : appendix).
Based on that findings, the result could be an evidences to improve the airport performance. But, basically, the foundation of this research could be divided into two data: qualitative and quantitative data. The quantitative data were gathered by conducted to rank and to know what is the most dissatisfy variable and then mixed it into the qualitative data (see : appendix for the model process of both practical approach research method).
33 This scenario using the two methods when the qualitative measures could be used to develop quantitative tools or to explain the qualitative results (Tashakkori and Teddlie, 1998).
More about qualitative and quantitative method, there are some technique that used for this research :
1. Qualitative Research Method a. In-depth Customer Interview
The Interview has structured questions with predetermined questions as a method for extensive service reviews. The set questions enabled comparisons to be made from one interviewee to another and from one review to another (Berry, 1995).
b. Critical Incident Technique
This technique has a simplistic way, citing the monitoring of customer complaints and the ability to identify when a customer is not satisfied with the service received as examples, and for public transports area, this technique can identify stated that customer dissatisfaction is caused by an event and suggested that the study of these occurrences will aid continuous improvement.
(Edvardsson, 1998 a&b), and by identifying and concentrating on managing critical incidents, organizations can begin the process of achieving continuous improvement (Williams, C. , 2003).
2. Quantitative Research Method Survey
Survey is a method for collecting data from people about who they are, how they think, and what they do. Survey usually take the form of a questionnaire that a person fill out alone or by interview schedule in person (Mark Balvanes and Peter Caputi, 2001)
34 Threre are three major reasons for conducting surveys in modern societies (Fink and and Kosecoff, 1985)
a. Planning a policy or programme
b. Evaluating the effectiveness of programme c. Assisting research and planning generally
1. Case study research
This research covered all of the previous research based on customer satisfaction even it was not in same object but, previous research can be compared to measure “what really happen” in customers need, the previous research also be taken in Europe ,especially in Sweden and Indonesia.
Qualitative method was used as a basic guidance to identify the customer’s experience, and what happen in real situation to make a solution, and Quantitative Method used to know satisfaction or dissatisfaction.
Yin (2003) stated that a case study could allow intensive research including holistic and meaningful characteristics of the research projects. According to this statement, the research involved customers in an intensive research and take steps to know spesifically about customers satisfaction without ignoring the basic criteria about human being’s satisfaction and taking an holistic solutions “what should to improve the airport performance base on customers satisfaction?”
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2. Data collection
Collect the data always useful for listing any customer’s dissatisfaction and the base guidance for making solutions how to improve airport services. In this thesis, the researcher use many approaches to get data.
There are :
a. Through official website/ user website/ internet forum and another user of Adisutjipto Airport to receive the satisfaction data on primary data.
b. Through interview from the Goteborg Landvetter Airport, Goteborg and requesting information from Airport Authority through PT. Angkasa Pura I or Adisutjipto Airport by phone call on primary data.
c. Through literature, book, articles and online internet materials on secondary data.
The questionnaire were given in mix qualitative method using Critical Incident Technique to get evidence of the customer’s experiences, idea and holistic understanding and quantitative method by asking their satisfaction or dissatisfaction, and via interview was created in the in-deep interview with open interview method,in an open interview the interview is allowed to proceed at its own pace, in a conversational style. Thus, the interview is guided, but also permitted and even encouraged by the interviewer to make detours (Johns and Lee-Ross, 1998).
Collecting the secondary data which is included the information needed by Airport Authority or Adi Suciptjo Airport, Yogyakarta – Indonesia and Gotebord Landvetter Airport - Sweden, any literatures, books, journals as long as supporting the research.
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B. Design of The Questionnaire
Based on chapter 2.7, the researcher developed the framework research design measurement based on mixed into SAMOT Research, Service Dimension on transport and previous studies. Service quality measurement is basically based on tangible, responsiveness, security, access (Zeithamal, 1990); Cleanliness, Safety (Stradling, 2007); comfort, information, staff behaviour (Bates et al. 2001, Beirao & Cabral 2007, Friman & Garling 2001, Hencher et al. 2003) and system and facility (Final report on Samot in Research Doing Satisfaction in Eight Cities).
The variables on the questionnaire were developed from nine basic service dimension into eighteen questionnaires, they are: accessibility to airport and out to airport, parking handling, traffic smoothness, securely, safely, seat availability, comfortness, cleanliness, staff behaviour, easiness to complain/ find staff related to problem, responsiveness, tools / facilities readiness for safety and security, information about safety and secureness, public information availability and integration with another modes, facility availability for disable/infant/ older people, technology information system purpose.
