THE IMPACT OF ELECTRONIC SERVICE

QUALITY DIMENSIONS ON CUSTOMER

SATISFACTION

S. Van Der Merwe

209030450

Research proposal submitted towards partial fulfillment of the requirements for

the degree

Magister in Business Management

in the

Faculty of Business and Economic Sciences

of the

Nelson Mandela Metropolitan University

November 2010

Promoter: Dr. Oren Dayan

 DECLARATION

I, Samantha Michelle Van Der Merwe, hereby declare that:

The work in this paper is my own original work;

All sources used or referred to have been documented and referenced to the best of my
knowledge;
This paper has not been previously submitted in full or partial fulfillment of the
requirements for an equivalent or higher qualification at any other recognised educational
institution.

_____________________________
Samantha Michelle Van Der Merwe
Port Elizabeth
November 2010
 ACKNOWLEDGEMENTS

The successful completion of this study would not have been possible without the assistance and
support of the following parties, which I would like to thank in particular:

My promoter, Oren Dayan, for his assistance, guidance, knowledge, patience and
encouragement. One could not ask for a better supervisor.

My fianc, Francois, for his tireless patience, support, kindness, understanding and love.

My parents Nick and Joan Dad, for your endless encouragement, motivation, support
and love. Mom, for all your support, help and love.

Cecil Arnolds, for his statistical calculations and knowledge.

Azad Cassim, Port Elizabeths International Airport manager, for allowing me to

distribute questionnaires to passengers.

Elmarie Brown for her assistance at Port Elizabeth International Airport.

Luella Van Wyk from the NMMU Business Unit

Francine DuPlesiess for her time and effort in distributing questionnaires to passengers
at P.E International Airport.

Francois Esterhuizen, Joan Van Der Merwe, Nick Van Der Merwe, Natalie May, Marlene
Heppes, Kirsten Arnold, Christelle Krieggel, Francois Benade and Chermel Upfold who
assisted immensely by getting co-workers/colleagues to complete questionnaires.

All the respondents who took the time to complete the questionnaire.

Lastly, to my beloved late Jasmine.

Samantha Van Der Merwe

Port Elizabeth
November 2010
 TABLE OF CONTENTS

CHAPTER 1
SCOPE OF THE STUDY

1.1 INTRODUCTION .................................................................................................................................. 1

1.2 PROBLEM STATEMENT ..................................................................................................................... 2
1.2.1 Background to the study .................................................................................................................. 2
1.2.2 The problem and its setting .............................................................................................................. 9
1.2.3 Behavioural Intentions ..................................................................................................................... 9
1.2.4 Purchase Intentions and Actual Purchase Behaviour ..................................................................... 12
1.3. RESEARCH OBJECTIVES ................................................................................................................ 14
1.3.1 Primary objective ........................................................................................................................... 14
1.3.2 Secondary objective ....................................................................................................................... 14
1.3.3 Research design objectives ............................................................................................................ 15
1.3.4 Hypotheses ..................................................................................................................................... 15
1.3.5 The Theoretical Model ................................................................................................................... 16
1.4 RESEARCH METHODOLOGY.......................................................................................................... 20
1. 4.1 Sampling method .......................................................................................................................... 20
1.4.2 Measuring instrument .................................................................................................................... 20
1.4.3 Data Analysis ................................................................................................................................. 21
1.5 OUTLINE OF THE STUDY ................................................................................................................ 21
1.6 CONCLUSION ..................................................................................................................................... 21

CHAPTER 2

SERVICE QUALITY

2.1 INTRODUCTION ................................................................................................................................ 23

2.2 THE IMPORTANCE OF SERVICE QUALITY ................................................................................. 23
2.3 MEASURING SERVICE QUALITY .................................................................................................. 23
2.3.1 Tangibles ........................................................................................................................................ 28
2.3.2 Reliability....................................................................................................................................... 28
2.3.3 Responsiveness .............................................................................................................................. 29

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 2.3.4 Assurance ....................................................................................................................................... 29
2.3.5 Empathy ......................................................................................................................................... 30
2.4 A SERVICE QUALITY MODEL .................................................................................................... 30
2.5 CUSTOMER SATISFACTION ........................................................................................................... 36
2.5.1 Perceived Customer Value ............................................................................................................. 36
2.5.2 Service Satisfaction Framework .................................................................................................... 37
2.6 BEHAVIOURAL INTENT .................................................................................................................. 38
2.6.1 Word-of-mouth .............................................................................................................................. 38
2.6.2 Repurchase intention ...................................................................................................................... 39
2.6.3 Feedback to the service provider ................................................................................................... 40
2.7 ELECTRONIC SERVICE QUALITY ................................................................................................. 43
2.7.1 Dimensions of e-service quality..................................................................................................... 48
2.8 SERVICE QUALITY IN THE AIRLINE INDUSTRY ....................................................................... 49
2.9 CONCLUSION ..................................................................................................................................... 51

CHAPTER 3
THE SIX DIMENSIONS OF SERVICE QUALITY

3.1 INTRODUCTION ................................................................................................................................ 52

3.2 INFORMATION .................................................................................................................................. 53
3.3 EASE OF USE ...................................................................................................................................... 56
3.4 DESIGN/GRAPHICS ........................................................................................................................... 60
3.5 RELIABILITY...................................................................................................................................... 63
3.6 SECURTIY/PRIVACY ........................................................................................................................ 65
3.7 INTERACTIVITY/PERSONALISATION .......................................................................................... 67
3.8 CONCLUSION ..................................................................................................................................... 72

CHAPTER 4
RESEARCH METHODOLOGY

4.1 INTRODUCTION ................................................................................................................................ 73

4.2 RESEARCH METHODOLOGY.......................................................................................................... 73

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4.3 PILOT STUDY ..................................................................................................................................... 75
4.4 THE MEASURING INSTRUMENT ................................................................................................... 76
4.5 RELIABILITY OF THE MEASURING INSTRUMENT ................................................................... 82
4.5.1 Test re-test method ......................................................................................................................... 82
4.5.2 Split-halves method ....................................................................................................................... 82
4.5.3 Internal consistency method........................................................................................................... 83
4.5.4 Cronbach Alpha Coefficient .......................................................................................................... 83
4.6 VALIDITY OF THE MEASURING INSTRUMENT ......................................................................... 83
4.6.1 Content validity.............................................................................................................................. 84
4.6.2 Face validity ................................................................................................................................... 84
4.6.3 Criterion validity ............................................................................................................................ 85
4.6.4 Construct validity ........................................................................................................................... 85
4.7 INTERNAL RELIABILITY OF MEASURING INSTRUMENT ....................................................... 85
4.8 DATA COLLECTION ......................................................................................................................... 87
4.8.1 Sample............................................................................................................................................ 87
4.8.2 Questionnaire distribution .............................................................................................................. 88
4.9 DEMOGRAPHIC DATA ..................................................................................................................... 88
4.10 DATA ANALYSIS ............................................................................................................................. 93
4.11 RESPONSE RATE ............................................................................................................................. 93
4.11.1 Potential Reasons for Low Response Rate .................................................................................. 94
4.12 CONCLUSION ................................................................................................................................... 95

CHAPTER 5
PRESENTATION AND INTERPRETATION OF THE EMPIRICAL ANALYSIS

5.1 INTRODUCTION ................................................................................................................................ 96

5.2 THE EMPIRICAL RESULTS .............................................................................................................. 96
5.3 SERVICE QUALITY AND SATISFACTION .................................................................................... 97
5.4 SERVICE QUALITY AND BEHAVIOURAL INTENT .................................................................. 101
5.4.1 Relationship between Information and Behavioural Intent ......................................................... 103
5.4.2 Relationship between Ease of Use and Behavioural Intent ......................................................... 103
5.4.3 Relationship between Design and Behavioural Intent ................................................................. 104

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 5.4.4 Relationship between Reliability and Behavioural Intent ............................................................ 104
5.4.5 Relationship between Security/Privacy and Behavioural Intent .................................................. 104
5.4.6 Relationship between Interactivity/Personalisation and Behavioural Intent................................ 106
5.5 BEHAVIOURAL INTENT AND SERVICE QUALITY .................................................................. 106
5.6 SERVICE QUALITYS INFLUENCE ON BEHAVIOURAL INTENTIONS ................................. 106
5.7 CONCLUSION ................................................................................................................................... 107

CHAPTER 6

CONCLUSIONS AND RECOMMENDATIONS

6.1 INTRODUCTION .............................................................................................................................. 108

6.2 MANAGERIAL IMPLICATIONS .................................................................................................... 108
6.2.1 Influence of service quality on satisfaction.................................................................................. 109
6.2.1.1 Reliability .............................................................................................................................. 110
6.2.1.2 Availability ........................................................................................................................... 111
6.2.1.3 Interactivity/Personalisation.................................................................................................. 112
6.2.2 Influence of the six electronic service quality dimensions on behavioural intent ....................... 113
6.2.2.1 Information ........................................................................................................................... 113
6.2.2.2 Ease of Use ........................................................................................................................... 114
6.2.3 Influence of service quality on behavioural intent and behavioural intentions ............................ 114
6.3 LIMITATIONS AND SUGGESTIONS FOR FURTHER RESEARCH ........................................... 115
6.4 CONCLUSIONS ................................................................................................................................ 117

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 TABLE OF FIGURES

FIGURE 1.1: RELATIONSHIPS BASED ON HYPOTHESES ................................................. 16

FIGURE 1.2: ILLISTRATION OF RELATIONSHIPS (HO1 & HO2) ..................................... 19

FIGURE 1.3: ILLUSTRATION OF RELATIONSHIPS (HO2 &HO4) ..................................... 19

FIGURE 2.1: CUSTOMER ASSESSMENT OF SERVICE QUALITY .................................... 27

FIGURE 2.2: SERVICE QUALITY MODLE ............................................................................ 31

FIGURE 2.3: CUSTOMER PERCEPTIONS OF QUALITY AND CUSTOMER

SATISFACTION .......................................................................................................................... 35

FIGURE 2.4: SERVICE SATISFACTION FRAMEWORK ...................................................... 37

FIGURE 2.5: THE BEHAVIOURAL AND FINANCIAL CONSEQUENCES OF SERVICE

QUALITY ..................................................................................................................................... 42

FIGURE 4.1: QUESTIONNAIRE DISTRIBUTION .................................................................. 88

FIGURE 4.2: QUESTIONNAIRE RESPONSE RATE .............................................................. 90

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 LIST OF TABLES

TABLE 1.1: THE DIFFERENT SCALES FOR MEASURING ELECTRONIC SERVICE

QUALITY ....................................................................................................................................... 7

TABLE 2.1: STUDIES CONDUCTED TO MEASURE E-SERVICE QUALITY ..................... 45

TABLE 3.1: STUDIES CONDUCTED TO MEASURE E-SERVICE QUALITY ..................... 70

TABLE 4.1: PILOT STUDY RELIABILITY RESULTS ............................................................ 76

TABLE 4.2: AMENDED NETQUAL QUESTIONNAIRE ....................................................... 78

TABLE 4.3: CRONBACH ALPHA COEFFICIENT VALUES OF MEASURING

INSTRUMENT ............................................................................................................................. 86

TABLE 4.4: RELIABILITY RESULTS OF DISTRIBUTED QUESTIONNAIRE .................... 86

TABLE 4.5: CHARACTERISTICS OF STUDY SAMPLE ........................................................ 89

TABLE 4.6: RESPONDENTS ONLINE ACTIVITY CHARACTERISTICS ............................ 91

TABLE 5.1: CORRELATION ANALYSIS................................................................................. 98

TABLE 5.2: REGRESSION ANALYSIS (SQ-SAT) .................................................................. 99

TABLE 5.3: REGRESSION ANALYSIS (SAT-SQ) ................................................................ 101

TABLE 5.4: EGRESSION ANALYSIS (SQ-BI) ....................................................................... 102

TABLE 5.5: REGRESSION ANALYSIS (BI-SQ) .................................................................... 107

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 LIST OF APPENDICIES

APPENDIX A : QUESTIONNAIRE ..........................................................................................143

APPENDIX B : WEBSITE LONG LOADING TIMES .................................................................. 152
APPENDIX C : UP TO DATE WEBSITE ........................................................................................ 154
APPENDIX D : DESTINATION SELECTION ............................................................................... 156
APPENDIX E : DATE SELECTION ................................................................................................. 158
APPENDIX F : DISPLAY OF SECURITY FEATURES................................................................ 160
APPENDIX G : WEBSITE MAINTENANCE ................................................................................. 162

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 CHAPTER 1

SCOPE OF THE STUDY

1.1 INTRODUCTION

Online purchasing is becoming increasingly common as a purchasing mode. At the onset of e-

commerce it was thought that success was guaranteed merely by being present on the internet
and offering low prices. Currently customer service has proved itself to be a key element for
achieving good results in a website (Zeithaml, Parasuraman & Malhotra, 2002b). In this context,
the study of commercial website quality has emerged as an area of strategic importance. As in
traditional stores, service quality and customer satisfaction seem to play vital roles in the success
and survival of Internet sites.

Traditional viewpoints for examining how consumers evaluate services rely heavily on the
personal aspects of the service encounter. It is a current trend for services to be delivered in a
non-traditional fashion, such as the internet, without any person to person interaction occurring
(Long & McMellon, 2004). Therefore, particular characteristics of Internet sales outlets
differentiate them from traditional sales modes. Impulsive buying is a significant proportion of
sales in many areas of traditional retailing but impulsive purchasing on the Internet, faces many
obstacles (For example, lack of sensory stimulation and concerns about security and privacy). As
Madharavan and Laverie (2004) suggest, website effectiveness or quality elements can influence
impulse purchasing behaviour. If the Internet is to succeed as a major distribution channel, a key
factor will be the utilisation use of its potential to satisfy customers by delivering high service
quality and to stimulate impulsive buying.

The purpose of this study is to identify the dimensions of service quality in an online context. It
aims at investigating how these dimensions contribute to customers satisfaction and behavioural
intent.

1
1.2 PROBLEM STATEMENT

The main objective of this study is to identify the service quality dimensions in an online context
and to understand how these dimensions can contribute to or influence customer satisfaction and
behavioural intent through the investigation of: how airlines perform in terms of the electronic
service quality dimensions; which, if any, of the service quality dimensions are more significant
in achieving service quality; which, if any, of the service quality dimensions are more significant
in influencing buying intent; if behavioural intentions are positively or negatively influenced
through electronic service quality; if electronic service delivery of airlines is lacking by
identifying service quality gaps and lastly to investigate how electronic service quality can be
improved.

1.2.1 Background to the study

Website quality has emerged as an area of strategic importance. Service quality, customer
service and customer satisfaction play a vital role in the success and survival of Internet sites and
are key elements for achieving good results on a website. Online purchasing is becoming
increasingly common as a purchasing mode and if a website is to succeed, it must satisfy
customers and deliver high quality service to increase online buying. The purpose of this study
is to identify the dimensions of service quality in an online context and to try to understand how
these dimensions contribute to customer satisfaction and behavioural intent. Additionally, the
study aims at determining which specific dimensions of electronic service quality and consumer
satisfaction best promotes buying impulses in customers.

Aspects of traditional service quality (For example, dimensions, related variables) have been
studied extensively over the past two decades; however, the study of the electronic service
quality of websites is still in its early stages. While traditional service quality is defined by
Parasuraman, et al. (1988: 15) as an overall evaluation or an attitude relative to the superiority
of the service, Zeithaml, Parasuraman and Malhotra (2002a) defined electronic service quality
as the extent to which a website facilitates efficient and effective shopping, purchasing, and
delivery of products and services. Evaluation of transactional quality entails an assessment of

2
pre- and post-service experiences. Comparisons can then be made to traditional service quality
to clarify the similarities and differences. Due to the intangibility of services it is far more
difficult for customers to evaluate. However, one element should be present in both online and
offline transactions and that is that service cues should be present both in pre- and post-
transactions (Zeithaml et al., 2002a).

The most important and probably the most evident differences between traditional and electronic
service quality is the replacement of interpersonal interaction with human-machine interaction.
This distinction raises many questions concerning the types of dimensions that can or must be
considered to assess service quality in the e-commerce context. With no human interaction
present when online transactions take place, certain applicable dimensions must be present in
order to accurately assess the service quality on a web site (Madu & Madu, 2002). Websites
need to be effective in the sense that they should have accurate product related information
available for internet shoppers as this could lead to a purchase. Likewise, if information is
insufficient, purchases could be lost.

The specific characteristics of online commerce make direct application of the dimensions of
service quality developed in other environments inappropriate. These dimensions cannot be
expected to capture all of the subtitles of the evaluation of service quality of commercial
websites (Parasuraman, Zeithaml & Malhorta, 2005). Online and offline purchase environments
create different shopping experiences, even when the same products are being purchased. Online
shopping is more impersonal, more automated, supplies fewer direct sensory stimulations and
immediate bonuses, and contains more legal uncertainties and opportunities for fraud or abuse
(Bressolles, Durrieu & Giraud, 2007). Due to the nature of online commerce and the differences
between an online and offline purchasing environments, the usual dimensions used to measure
service quality such as tangibility, reliability, responsiveness, assurance and empathy are
unsuited. Online shopping can be regarded as more impersonal as the customer will not
experience any human interaction, however they can more easily compare alternatives than
offline customers. Online shopping can alter customer expectations about services as they will
have access to more information, they will be able to better determine what type of service they
will be receiving and will less likely be dissatisfied with the service received. Online
environments could decrease a customers satisfaction when it comes to a perceived lack of

3
privacy and financial security, perceived lack of human contact and poor interface design
(Meuter, Ostrom, Roundtree & Bitner, 2000).

In addition to other factors, such as stiff competition among rivals and entrenched customer
shopping habits, failure of online retailers is primarily due to poor quality services rendered to
their customers (Zeithaml, 2002). To survive in fierce industry competition, many practitioners
in the service quality field have focused on improving their online services to attract potential
customers and retaining current customers. Zeithaml, et al. (2002a) have emphasised that
companies should focus on online service encompassing all cues and encounters that occur
before, during and after the transaction and if properly utilised the internet can be a powerful
service-offering tool. Researchers have also pointed out that service quality is one of the key
determinants of online success (Zeithaml et al, 2000b) and this is based primarily on the
following two reasons: Firstly, the service quality of online retailers greatly influences customer
satisfaction and the intention to shop online in the future. Secondly, online retailers service
quality is critical in attracting potential customers (Cai & Jun, 2003). So therefore to attract and
retain customers, online retailers or airlines, need to have a clear understanding of what internet
users expect for service quality.

Airline websites are designed to provide a one-stop service and be not only informative, but also
functional, in that they allow internet users to book flights online, make hotel and car
reservations, register for package tours and carry out other key functions (Chu, 2001). In
response to the fast pace information age, many airlines have worked hard to develop their own
websites to facilitate e-commerce transactions. In terms of online purchasing versus offline
purchasing, online purchasers benefit by receiving information directly from the website without
having to seek out a sales person (Zeithaml, Parasuraman & Malhorta, 2002a). Internet users
make use of the web in order to minimise their search costs, which have been identified as one of
the key benefits of online shopping (Ariely, 2000; Lynch & Ariely, 2000). A large amount of
freely available information - if well organised and easily accessed - is frequently mentioned by
consumers as an important reason to purchase on the internet (Vanitha, Lepkowska & Tao,
1999). Wolfinbarger and Gilly (2001) state that the availability of information is one of the most
important aspects of online purchasing. Therefore, when an airline website is designed, ample,
correct and relevant information should be available to customers to enable them to compare

4
products so that they can make an informed decision / choice. Customers will not be making an
informed decision if the website contains insufficient information.

Long & McMellon (2004) have measured both expectations and perceptions of online service
quality and revealed that consumer expectations are not being met on the internet and found that
without person-to-person interaction the technical and logical aspects of an online transaction
take on a heightened importance for the customer (Long & McMellon, 2004). This could lead to
a decline in customer satisfaction and could eventually affect sales as there is no human
interaction when an online transaction takes place which makes it even more vital that
organisations ensure that their website is efficient as mentioned before. For example, if
information is not readily available to the customer, no comparisons from other web sites will be
possible, which could result in the user abandoning the transaction/sale.

There are numerous factors that might be fuelling passenger growth, but according to Bamford &
Xystouri (2005) and Rhoades & Waguespack (2005, 2008) there is no doubt that service quality
plays a critical role in the success of the airline industry. Numerous studies show that
profitability is linked to service delivery (Bates, Bates & Johnston, 2003) and to the general
importance of quality service in organisations (Gustafsson, Nilsson & Johnson, 2003; Di Mascio,
2007).

Parasuraman and Grewal (2000) underline the existence for specific dimensions for the
evaluation of perceived quality of service interactions mediated by technology. The five classic
dimensions of traditional service quality are tangible elements, reliability, reactivity, assurance,
and empathy of the service provider (Zeithaml, Parasuraman, & Berry, 1990). To date, however,
there is no agreement concerning the dimensions of electronic service quality (see table 1.1),
although some proposed dimensions reappear fairly systematically: quality and quantity of
information, ease of use, Website design, reliability, security/privacy, and
interactivity/personalisation (Yoo & Donthu 2001; Barnes & Vidgen, 2002; Wolfinbarger &
Gilly 2003; Parasuraman et al., 2005; Bressolles 2006). For a website to be successful certain
elements must be present: quality and quantity of information, ease of use, design, reliability,
security, privacy and finally, interactivity and personalisation (Bressolles, 2006). If these

5
elements are not present, it could cause frustration and dissatisfaction for the customer and the
organisation could loose sales which will negatively impact on their revenue.

6
 Table 1.1: The different scales for measuring electronic service quality

Scale Authors No. of Dimensions Consequences Sample

items
Attitude toward site
Sitequal Yoo and 9 Ease of use 94 students were asked to visit and
Donthu (2001) Site loyalty interact with three Internet
Aesthetic design
Site equity shopping sites of their own
Processing Speed
Purchase intention selection.
Security
Site revisit intention
Site quality

Webqual (4) Barnes and 22 Usability 380 questionnaires on 3 online

Vidgen (2002) Information bookshops filled by students.
Interaction

Satisfaction
eTailQ Wolfinbarger 14 Website design Online survey on 1013 customer
and Gilly Attitude toward site members of a panel.
Fulfillment/
(2003) Loyalty intentions
reliability
Global quality
Security/Privacy
Customer service
Perceived value
e-S-Qual Parasuraman, 22 Efficiency A respondent has to have visited the
Zeithaml and Loyalty intentions site at least three times during the
Fulfillment
Malhotra System Availability past three months and made at least
(2005) Privacy three purchases from the site during
that period www.amazon.com [653
respondents] and
www.walmart.com [253
respondents.
e-RecS-Qual Responsiveness
Compensation
Contact

7
 Scale Authors No. of Dimensions Consequences Sample
items
Overall quality
NetQual Bressolles 18 Information 855 customers of 2 commercial
(2006) Satisfaction Websites [travel and electronic
Ease of use
Attitude toward site goods]
Reliability/Fulfillmen
t
Site design
Security/Privacy
Interactivity/
Personalisation

8
1.2.2 The problem and its setting

Internet consumer loyalty is difficult, costly and requires a level of quality service that satisfies
the consumer (Van Riel, Liljander & Jurriens, 2001). The literature on service marketing
includes much research on the service quality satisfaction relationship, in both the traditional and
online contexts (Wolfinbarger & Gilly, 2003). Satisfaction is an ex post evaluation of a
customers experience with a service, and is captured as a positive, indifferent, or negative
feeling. Oliver (1997) defines satisfaction as the perception of pleasure fulfillment of a service
and loyalty as deep commitment to the service provider. Customer satisfaction need not be
viewed in the same light as service quality. Service quality does not necessarily lead to customer
satisfaction and customer satisfaction is not necessarily an antecedent of service quality
(Gardiner, 2004). Furthermore Gardiner (2004) adds that customer satisfaction is a short-term
transaction-specific measure, whereas service quality is a long-term overall evaluation of a
service. Hence the perception of service quality by a customer is formed over time through a
number of dealings during which either satisfaction or dissatisfaction was achieved (Hoffman &
Bateson, 2002).
In the e-commerce context, Wolfinbarger and Gilly (2003) identify a positive link between six
electronic service qualitys dimensions (information (SQ1), ease of use (SQ2), design/graphics
(SQ3), reliability (SQ4), security/privacy (SQ5), interactivity/personalisation (SQ6)) and
customer satisfaction. The following hypothesis can be formulated:

HO: Service quality exerts no influence on satisfaction which comprises of the six sub-
dimensions of electronic service quality (information, ease of use, design, reliability,
security/privacy & interactivity/personalisation)

1.2.3 Behavioural Intentions

The quality of websites has become a key indicator of how well a company is likely to satisfy its
customers. Another new challenge is the rapid increase in expectations and level of
sophistications of the e-customers. In recent years, research efforts have been directed at
understanding how e-customers perceive the quality of e-service as well as how these

9
perceptions translate into customer satisfaction and behavioural intentions. Adding to the
challenges of managing e-customers, it has become crucial to understand how individual
customer differences in terms of information technology (IT) skills influence their online
experience, behaviour and attitudes (Udo, Bagchi, & Kirs, 2008).

Several studies on service quality in physical encounters concluded that some factors are
responsible for customers perceptions of quality which are likely to lead to customer satisfaction
and which, in turn, may lead to behavioural intentions to purchase. Some authors (Zeithaml,
Berry & Parasuraman, 1996; Zhang & Prybutok, 2005) found in their studies that behavioural
intentions may predict behaviour, implying that behavioural intention constructs are relevant to
customer service. Given that satisfied customers are more likely to stay with a company for long
periods, service quality has an effect on customer satisfaction and a companys profitability
(Anderson, Fornell, & Lehmann, 1994). Hence, quality service dimensions can affect a
customers satisfaction which determines whether or not they will return to the same company
for their future business.

After a considerable period in which consumers were assumed to make largely rational decisions
in purchase behaviour, marketing scholars are increasingly examining the influence of emotions
evoked by marketing stimuli (Laros & Steenkamp, 2004). Emotions are responses to causal-
specific stimuli that are generally intense and more enduring, especially if emotional traces are
stored and retrieved (Cohen & Areni, 1991) The distinction between feelings and emotions is
important since feelings are also responses to causal-specific stimuli, yet less intense and more
fleeting when compared to emotions (Agarwal & Malhotra, 2005).
According to Chatzigeorgiou, Christou, Kassianidis, and Sigala, (2009) customers can be
classified into emotionally satisfied and rationally satisfied. Both types of customers are
extremely satisfied with the products or services a company may provide, however, there is a
distinctive element between the two, which is the emotional connection of customers.
Emotionally satisfied customers can have a strong emotional attachment to a company, while
rationally satisfied customers, in contrast, lack the above mentioned emotional attachment.
Furthermore, emotionally satisfied customers tend to spend more money at a company and
become repeat consumers of the same brand while rationally satisfied customers behave in a

10
similar manner to a dissatisfied customer (Chatzigeorgiou, Christou, Kassianidis, & Sigala,
2009).

Emotions can be divided into positive and negative ones (Tu, 2004). People tend to consider
negative emotions to be those that influence the thinking process without realising that positive
emotions have a possible impact on thought processes. Negative emotions derive from three
sources: the consumer (shame, guilt), other behaviour (anger, hate) and situational causes (fear,
sadness) (Oliver, 1993). Customers who experience negative emotions attributed to other
agencies such as staff, have lower levels of satisfaction than those whose negative emotions
attribute to the customer or specific situations (Sigala, 2003; Tu, 2004). Positive emotions,
however, do not have the same effect as negative ones. If emotions such as happiness, interest or
enthusiasm remain unchanged throughout the service provision, the customer is more likely to
positively evaluate the experience regardless of the emotional source of origin (Pham, 1996).
Therefore, customers tend to evaluate a service positively when they are happy and negatively
when they are sad, regardless of whether the specific information about a service is favourable or
unfavourable (Adaval, 2003).

Research on online customer behaviour suggests that website satisfaction is fundamental to

establish long-term relationships with customers and to ensure long-term profitability of online
operations (Chiou & Shen, 2006). A companys website is the primary medium available to
persuade online customers during their initial visit. The initial visit gives customers the
experience with a new web-based service provider when making a transaction and website
satisfaction is crucial for a successful transaction. A customers initial transaction is important
for the following two reasons:

Firstly, the initial transaction can be influenced primarily by the customers response to the
website, whereas subsequent transactions will be influenced by the actual delivery and
consumption of the product/service relating to the initial transaction. Secondly, acquisition costs
are significantly higher than retention costs (Reichheld & Schefter, 2000).

As such, converting first time visitors into actual buyers is a major challenge for a web-based
service provider (Ranaweera, Bansal, & McDougall, 2008). Fransi and Viadiu (2007) also state
that reaching a new customer is not enough; it is also necessary to retain them and earn their

11
loyalty. A report by Healey & Baker consultancy (Global e-tailing 2000, 2000) noted that a
significant proportion of attempts by customers to purchase via the internet actually fail.
According to the report 46% of transactions are cancelled, and in some countries such as Spain,
this failure rate can be as high as 75%. The causes of these extraordinary failure rates are likely
due to problems such as technical, which results in the deficiencies of the vendors
communication networks or the consumers connection. Another example of which is a personal
problem, including a lack of experience in the use of internet by the customer (Fransi & Viadiu,
2007).

Without a strong emotional bond, satisfaction is meaningless (McEwen & Fleming, 2003). Most
people have a sense that can affect their moods, feelings and emotions which can influence their
decisions and thought process under certain circumstances. However, it is usually assumed that
such influence is irregular or unusual; that only strong and infrequent feelings could have such
an effect and that most often only negative feelings such as anger, sadness or fear would have an
impact on the thinking process. Furthermore, most people assume that when affect plays a role
in their decision process, such influences are disruptive and tend to make their decisions
irrational and less appropriate (Adaval, 2003; Christou, 2003).

HO: The six sub-dimensions of electronic service quality exerts no influence on behavioural
intent.

1.2.4 Purchase intentions and actual purchase behaviour

Various studies, for example, Parasuraman, Zeithaml and Berry (1988, 1994); Boulding, Kalra,
Staelin, & Zeithaml (1993); Zeithaml, Berry and Parasuraman (1996); and Liu, Sudharshan, and
Hamer (2000), have found perceived service quality to have had an effect on several types of
behavioural intentions.
The difference in purchase intentions between online and offline channels serve to indicate a
channel-switching tendency. Consumers tend to switch to online channels if their online
purchase intentions are higher than their offline purchase intentions. Essentially, consumers
express preference (stated purchase intentions) based on utility maximisation in terms of the
costs and benefits of the retail formats presented to them (Alba et al., 1997). Thus, the utility

12
obtained from on-line shopping needs to be greater than the utility provided by the traditional
format in order to cause the consumer to switch to an online environment.

The theory of reasoned action (TRA) asserts that behavior is influenced by behavioral intentions
(Ajzen & Fishbein, 1980). Research in social psychology suggests that intentions are the best
predictor of behavior because they allow each individual to incorporate all relevant factors that
may influence actual behavior (Fishbein & Ajzen, 1975). Several studies have examined the
relationship between intentions and purchase behaviour for durable and non-durable goods,
revealing that the relationship between intentions and purchase is generally positive and
significant. Since Internet shopping behaviour shares the vokitional nature of the phenomena
that TRA tries to explain and predict (Jarvenpaa, Tractinsky & Vitale, 2000), the degree to which
people express their intentions to purchase should be a reasonable predictor of their actual
purchase behaviour. Therefore, following different online and offline purchase intentions should
be a reasonable indicator of a tendency to swich from offline to online channels. In other words,
offline purchase intentions can be used as a point of reference for assessing a consumers
tendency to switch to online channels. Customer satisfaction is viewed as influencing repurchase
intentions and behaviour, which, in turn leads to an organisations future revenue and profits.
Understanding the interaction between customer satisfaction and customer behavioural intentions
is important, because it increases the customers tendency to return to the same service provider,
whereas ineffective service may reinforce the customers dissatisfaction with the service.

HO: Service quality exerts no influence on behavioural intent.

Service quality can also be defined as the difference between a customers expectation for
service performance prior to the service encounter and their perceptions of the service received
(Asubonteng, McCleary & Swan, 1996). Customers evaluations of service quality are critical to
service firms that aim to improve their marketing strategies (Cronin & Taylor, 1992; Ofir &
Simonson, 2001; Jain & Gupta, 2004). Firms that provide superior service quality have a more
satisfied customer base (Aaker & Jacobson, 1994; Gilbert, Veloutsou, Goode, & Moutinho,
2004; Gilbert & Veloutsou, 2006). However, more and more companies are compelled to assess
and improve their service quality in an effort to attract customers (Gilbert & Veloutsou, 2006).

13
With Internet and technology development, the web site has replaced the physical business unit.
Perceived web site usability and new electronic environment is a very significant part of the
corporate image and can affect shopping behaviour (Cristobal, Flavin & Guinalu, 2007).

HO: Service Quality exerts no positive influence on customers behavioural intentions.

1.3. RESEARCH OBJECTIVES

The objectives of this study are to explore to what extent the dimensions of electronic service
quality that are applicable and deemed important in the airline industry. Secondary objectives
will be investigated to assist in achieving the primary objective.

1.3.1 Primary objective

The purpose of this study, is therefore, to identify and investigate the dimensions of service
quality in an online context and to try to understand how these dimensions can contribute to
customer satisfaction and behavioural intent. The functional nature of behavioural intent (buying
behaviour) is introduced as a moderator.
The objective here is to determine which specific dimensions of electronic service quality the
consumer satisfaction best promotes buying impulses among functional buying customers.

1.3.2 Secondary objective

To achieve the primary objective, the following secondary objectives will be pursued:

to investigate how Airlines perform in terms of electronic service quality dimensions

to investigate which, if any, of the service quality dimensions are more significant in
achieving service quality
to investigate which, if any, of the service quality dimensions are more significant in
influencing Buying Intent

14
 to investigate if behavioural intentions are positively or negatively influenced through
electronic service quality
to investigate if electronic service delivery of airlines is lacking by identifying service
quality gaps
to investigate how electronic service quality can be improved.

1.3.3 Research design objectives

The remainder of this paper is organised as follows: The next section of the paper presents a
review of relevant literature concerning service quality and electronic service quality, its
dimensions and characteristics. Based on the secondary literature review, a questionnaire was
constructed to collect primary data on electronic service quality dimensions. The questionnaire
was piloted to test for reliability and validity which returned favourable results. An electronic
version of the questionnaire was then distributed to a larger base of individuals who had booked
and purchased their airplane tickets online. The data retrieved from respondents questionnaires
was captured on Microsoft Excel and an analysis of the captured data was analysed with the use
of the STATISTICA software program. The findings were interpreted and lastly, conclusions
and recommendations were made on electronic service quality and the improvement thereof
accordingly.

1.3.4 Hypotheses

To address the above-mentioned research questions, the following hypotheses were formulated:

H0: Service Quality exerts no influence on satisfaction which comprises of the six sub
dimensions of electronic service quality (information, ease of use, design, reliability,
security/privacy & interactivity/personalisation) and make up the satisfaction dimension.

HO: The six dimensions of electronic service quality exert no influence on behavioural intent.

HO: Service quality exerts no positive influence on customers behavioural intentions.

15
HO: Service quality exerts no influence on behavioural intent.

1.3.5 The Theoretical Model

Quality and the quantity of information are elements frequently mentioned as important reasons
for online shopping (for example, Barnes and Vidgen, 2003; Wolfinbarger and Gilly, 2003) but
have not been investigated directly in evaluations of traditional service quality. The absence of
physical contact with the service provider during the online purchase strengthens the need for
clarity and precision of information presented online. This dimension measures the perceptions
of the Internet user concerning the quality and the quantity of the commercial or technical
information on products and services, the service provider, or the sale contract. (Refer to figure
1.1)

Figure 1.1 depicts the overall relationships based on hypotheses.

16
 Transactions using the Internet can seem complex and can intimidate consumers; therefore, the
ease of use of a website is an important dimension of the quality of electronic service (Eighmey
1997). Ease of use was, for a long time, called usability in the Internet context (Vanitha, et
al., 1999). Usability makes reference, in the physical world, to the structure of the shop and to
the design and ease of navigation in the shop (Lohse & Spiller, 1999). On a website, usability
refers to the way the Internet user perceives and interacts with the site: Is it easy to navigate
on the Website? (Nielsen, 1999).

The design or the graphic style of a website refers to the integration of colours, graphics, the use
of images, icons, animations and video, together with the appropriate size of the web page &
other elements (Santos, 2003). These elements contribute to create the virtual atmosphere of the
website. As in the traditional world, reliability and respect for commitments are linked to the
capacity of the online retailer to satisfy its promises and to respect the terms of the exchange.
This will include delivering the product ordered, specified by quantity, price, and description, to
offer the desired service and to respect promised dates for delivery (Zeithaml, Parasuraman &
Berry, 1990).

Security implies protection of the user from fraud and financial losses. Privacy concerns
personal data protection and the promise not to share or resell such data collected about
customers. This dimension appears to be particularly relevant in the context of online business
(Yoo & Donthu, 2001).

Interactivity and personalization are dimensions that refer to the consumers ability to define and
design themselves a product or service most adapted to their needs, to have a relation privileged
with the brand, and to modify the contents and shape of the environment in real time (Steuer
1992). Internet communication can be very impersonal and mass-oriented, as the level of
individulisation and interactivity is very low (Mohammed, Fisher, Jaworski, & Paddison, 2003).
When a relationship is developed, a level of interactivity is created through the use of interactive
applications (Rowley, 2001), which enhances information exchange between parties and
increases the range over which goods and services can be personalised (Bitner, Brown & Meuter,
2000)

17
Figure 1.2 depicts that the six sub-dimensions make up the satisfaction dimension which is
labeled as SAT. Also illustrated (HO) it is hypothesised to be no relationship between SAT and
Service Quality. Figure 1.3 depicts that the six dimensions of Service Quality are thought to
influence Behavioural Intent (HO). Additionally, that Behavioural Intent is a result of Service
Quality and Satisfaction which positively influences a customers Behavioural Intentions (HO +
HO).

18
Figure 1.2: Illustration of relationships (HO1 & HO3)

Figure 1.3: Illustration of relationships (HO2 & H04)

19
1.4 RESEARCH METHODOLOGY

The main research paradigm used in this study was the positivistic paradigm. The positivistic
paradigm deals with the causes of social phenomena, with little or no regard to the subjective
aspects of human activity (Collis & Hussey, 2003: 52).

1. 4.1 Sampling method

The probability sampling method selected for the purpose of this study was stratified sampling.
Stratified sampling overcomes the problem of some members of the population being over- and
under-represented (Collis & Hussey, 2003). The main advantages of stratified sampling is that
all essentional sub-groups are included in the investigation, it is time saving as fewer people are
required for the study and can be directed towards a georaphical location and relevant
individuals. Sampling is cost effective as fewer people and less time are required to collect and
analyse data.

1.4.2 Measuring instrument

To determine the impact of service quality dimensions on satisfaction and buying impulse, an
online questionnaire was administered during September, October & November of 2010 to
customers of leading Airlines sought through their Facebook pages. The researchers interest is
in the complete online purchasing experience, not just the interaction with the website, so
respondents who had made their bookings/payments online were sought after. The initial
measuring instrument was adopted from a study conducted by Professor Gregory Bressolles in
2006 entitled NetQual: The proposition for an electronic service quality measurement scale and
moderating effects. NetQual was tested to be reliable and valid through an exploratory
qualitative study, findings from a literature review and three quantitative data collection stages
(Bressolles, 2006). Additional variables were added to each of the six dimensions namely:
information, ease of use, design, reliability, security and interactivity. The amended instrument
was then piloted to determine successful adoption and returned excellent results proving to be
valid and reliable.

20
1.4.3 Data Analysis

The questionnaire was piloted to test for reliability and validity. The pilot study provided
favourable results and therefore an electronic version of the questionnaire was sent out to a larger
base of individuals who had booked and purchased their airplane tickets online. Data retrieved
from the respondents questionnaires was captured on Microsoft Excel and was analysed with
the use of STATISTICA software program. The findings were interpreted and lastly,
conclusions and recommendations were made on electronic service quality and the improvement
thereof accordingly.

1.5 OUTLINE OF THE STUDY

The treatise is presented in six chapters in which the theoretical background, methodology,
results, conclusions and recommendations are structured. The first chapter outlines the scope of
the study, the problem statement, the objectives of the study and research methodology. In
chapter two, the nature, importance, benefits, and advantages and disadvantages of electronic
service delivery in the airline industry is discussed. Chapter 3 describes the theoretical model,
which indicates the relationships between various variables that have been empirically
investigated in this study. In chapter four, research methodology has been discussed, as well as
the results of the validity and reliability assessments of the proposed measuring instrument that
have been used in the study. In chapter five, the empirical results of the study are interpreted,
analysed and summarised. The implications are also discussed. Chapter six, the final chapter,
includes recommendations for future research arising from the results presented.

1.6 CONCLUSION

Chapter one introduces service quality and electronic service quality to the reader. The purpose
was to explain that with services and products now being delivered in non-traditional ways, for a
website to be a successful and have a positive effect on a customers buying behavior, service
quality and customer satisfaction are extremely important and need to be present in the form of

21
the six quality dimensions (information, ease of use, design/graphics, reliability, security/privacy
and interactivity/personalisation). A brief overview of a range of authors views on the topic of
e-service quality dimensions and the various measuring instruments created to measure
electronic service quality was also discussed. Chapter two addresses the theoretical aspects of
service quality, electronic service quality, customer satisfaction, behavioural intent and service
quality in the airline industry.

22
 CHAPTER 2

SERVICE QUALITY

2.1 INTRODUCTION

The aim of this chapter is to analyse and present the findings of a literature review that
determines the factors that influence service quality, the advantages and disadvantages of service
quality and the importance of service quality. Many empirical studies have investigated the
relationships among the constructs of service quality, customer satisfaction, and behavioural
intentions in a variety of industries and cultures. These include studies of the lodging industry in
the USA (Olorunniwo, Hsu & Udo, 2006), the audit industry in Malaysia (Ismail, Haron,
Ibrahim & Isa, 2006), the banking industry in Taiwan (Lee & Hwan, 2005), the recreation
industry in the USA (Tian-Cole, Crompton, & Willson, 2002; Lee, Graefe, & Burns, 2004), the
health care industry in South Africa (Boshoff & Gray, 2004), and the airline industry in Korea
(Park, Robertson & Wu, 2004).

2.2 THE IMPORTANCE OF SERVICE QUALITY

The contribution that a high level of service quality can make to business performance is
unquestioned. An organisation needs a strategy to be successful. Strategy is defined as an
integrated and coordinated set of commitments and actions designed to exploit core
competencies and gain a competitive advantage (Hitt, Ireland & Hoskisson, 2005:7). The key
to develop an effective strategy is to understand how to add value for clients. Value is added
through competitive priorities that are selected to support a strategy. The competitive priorities
are (Davis & Heineke, 2005):

cost organisations need to provide low-cost products and services

quality organisations need to provide high-quality products and services
delivery organisations need to provide products and services quickly
flexibility organisations need to provide a wide variety of products and services
23
 service organisations need to focus on how products and services are delivered and
suported

Efforts in defining and measuring quality have come largely from the goods sector. According
to the prevailing Japanese philosophy, quality is zero defects doing it right the first time
(Crosby, 1979). Knowledge about goods quality, however, is insufficient to understand service
quality. Three well documented characteristics of services must be acknowledged for a full
understanding of service quality. They are: intangibility, heterogeneity and inseparability.
Firstly, most services are intangible because they are a performance rather than an object.
Secondly, services, especially those with a high labour content are heterogeneous in that their
performance varies from producer-to-producer, from customer-to-customer and from day-to-day.
Consistency of behaviour from service personnel cannot be assured due to the fact that what the
firm intends to deliver may be entirely different from what the consumer receives. Thirdly, the
production and consumption of many services are inseparable, meaning that services cannot be
counted, measured, tested or verified before a sale to ensure that quality is delivered. Therefore,
service quality is more difficult for consumers to evaluate than goods quality. Service quality
perceptions result from the consumers comparisons of the thier expections with the actual service
performance. Evaluations of quality are not made solely on the outcome of a service; they also
involve the evaluation of how the service is delivered (Parasuraman, et al., 1985).

Service quality defined by Zeithaml, et al. (1990:19), is the extent of discrepancy between
customers expectations or desires and their perceptions. Quality is also often defined as
conformance to specifications, however, this phrase can be midleading. Quality is conformance
to a customers specifications and it is the customers definition of quality that counts (Berry,
Parasuraman & Zeithaml, 1988; 1994). Customers assess service quality by comparing what
they want or expect to what they actually get or perceive they are receiving. In order to earn a
reputation for excellent service quality, an organisation must meet or exceed their customers
expectations. Because cutomers have increasing expectations it is necessary for companies to
continuously improve their quality and hence customers experiences with the company.
Customers do not experience only one aspect of a company or organisation, but a whole range of
aspects. Some of these aspects are concerned with the way customers experience the company

24
itself, the way customers experience the physical product and lastly the way customers
experience the service the company offers (Van Iwaarden, Van der Wiele, Ball & Millen, 2003).

2.3 MEASURING SERVICE QUALITY

Comparing customers expectations and their perceptions of actual performance can be done by
making use of the service quality scale (SERVQUAL) created by Berry, Parasuraman and
Zeithaml (Zeithaml, et al., 1990) which was specifically designed for use in the service sector.
The SERVQUAL research instrument is a relationship survey, which was developed to capture
customer perceptions of service quality. This relationship survey comprises of twenty two
multidimensional questions about all facets of the relationship of the customer with the service
(Zeithaml & Bitner, 2000). Respondents were asked to rate their level of agreement or
disagreement with the given statements on a seven-point Likert scale. A consumers perceptions
are based on the actual service they receive, while consumer expectations are based on past
experiences and information received (Melisidou & Theocharis, 2010). The SERVQUAL tool
has received some criticism, but has been used to measure service quality in a variety of
industries with much success. One criticism about the SERVQUAL dimensions was related to
more fundamental methodological and conceptual issues, for example, the presence of
conceptual inconsistency in the dimensions.

Tangibles and responsiveness are completely different concepts. Tangibles are deemed to be
part of a service, but are not a quality dimension. The quality of the Tangibles (For example,
availability, operating characteristics) influences the perceived quality as much as the quality of
the personnel (For example, appearance, competence). Tangibles, like personnel, are not a
quality dimension, but are rather a crucial quality determining element which influences
dimensions such as reliability, credibility and others. Originally there were ten determinents or
components of service quality. Zeithaml, et al. (1990) described these ten determinants of
service quality as:

Access: The accessibility of the service and its delivery within a minimium waiting
period, which implies that the service should be easily accessible by telephone; the

25
waiting time to receive the service is not excessive; and that there are convenient
operation hours.
Communications: The firm need to effectively communicate what services are provided
by them, by explaining the service itself and its cost; the trade- offs between the service
and the cost; and assurance that problems will be resolved.
Competence: The personnel need to possess the necessary skills and knowledge to
perform the service.
Courtesy: The personnel of the service provider must be polite, respectul, considerate,
friendly and courteous to clients.
Credibility: The service provider must be honest and trustworthy. This partnered with
contact personnels personal characteristics contributes to the reputation of the company.
Reliability: The ability of the service provider to perform the promised service
dependably and accurately. For example, providing accurate billing and performing the
service when the organisation says they will peform it.
Responsiveness: The willingness of the personnel of the service providers to assist
clients with their specific problems, for example providing prompt service and returning
a customers call immediately.
Security: The service needs to be free from danger and risk, and may involve physical
safety, financial security and confidentiality issues such as Is a customers credit card
safe from unauthorised use?.
Tangibles: This includes the physical evidence of the service and covers. For example,
the appearance of physical facilities and personnel; the tools and equipment used to
provide the service and the physical representation of the service (a printed copy of a
booking confirmation).
Understanding and knowing the client: The amount of effort the firm spends to know
and understand the needs of their clients such as providing individualised attention and
getting to know the specific requirements of the client

26
 Figure 2.1: Customer assessment of service quality
(Zeithaml, Parasuraman, & Berry, 1990:23)

Figure 2.1 illustrates the above mentioned ten determinants of service quality and were found to
not necessarily be independent of one another (Zeithaml, et al., 1990). Zeithaml, et al. (1990)
discovered a high degree of correlation between communication, competence, courtesy,
credibility and security and combined them into one new dimension which they called assurance.
Additionally, the same was found for access and understanding and they were put in the empathy
dimension. These general criteria were then narrowed down to a total of five service quality
dimensions and are as follows:
Tangibles: Appearance of physical facilities, equipment, personnel, and communication
materials.

27
 Reliability: Ability to perform the promised service dependably and accurately.

Responsiveness: Willingness to help customers and provide prompt service

Assurance: Knowledge and courtesy of employees and their ability to convey trust and
confidence.

Empathy: Caring, individualised attention the firm provides its customers.

2.3.1 Tangibles

Tangible aspects are considered even more important in e-business as there is no face-to-face
contact between the customer and employee. The visual aspects of the equipment, namely
websites, are the only visual contact that a customer has with an organisation. Therefore, there is
a need to have a well-functioning and top quality website. There are a great number of
customers who abandon their shopping carts on the Internet because they get frustrated with the
technology or the design and layout of the website interface (Hager & Elliot, 2001). The visual
aspects of websites are also judged differently by people of different age. While young people
may be attracted to flashy graphics, sounds and a high-speed interface, older people do not want
blinking texts that are hard to read or animations that distract from the use of the website
(Houtman, 2002).

2.3.2 Reliability

Some of the aspects in the reliability factor have to do with what is promised and doing it at the
promised time. While many organisations believe the primary reason for consumers shopping
online is due to lower prices, this is not always true. There are many customers who shop online
due to convenience (Riseley & Schehr, 2000). If customers cannot trust an organisation to do
what they ask, then those customers will be dissatisfied (Van Iwaarden, Van der Wiele, Ball &
Millen, 2003).

28
2.3.3 Responsiveness

An aspect in the responsiveness factor is giving prompt service. The responsiveness factor can
also be defined as effective handling of problems and returns through the site (Parasuraman,
Zeithaml & Malhotra, 2005: 8). Responsiveness measures the online retailers ability to provide
appropriate problem solving information to customers, having mechanisms for handling returns,
and providing online guarantees. When a customer has a problem, the process of contacting a
customer service agent is vital. Previous research has stressed the negative impact on attitudes
towards a website caused by unprompted or delayed customer inquiry services (Wolfinbarger &
Gilly, 2003).

Convenience and the saving of time have been frequently considered as important reasons to
shop online (Ranganathan & Ganapathy, 2002). Difficulty in searching and slow download and
display time can lead consumers to leave those sites and visit other sites.

2.3.4 Assurance

The factor knowledge to answer questions pertains to customers being able to find everything
they want on a website (Bressolles, Durrieu & Giraud, 2007). In a bricks and mortar store,
people feel comfortable with a limited inventory, however on the internet, people are not
satisfied if they cannot find what they are looking for. Web-shops need to have great depth of
inventory and rich and relevant product information (Dayal, French & Sankaran, 2002). Other
aspects in the assurance factor include employees being trustworthy and customers feeling safe
carrying out their transactions (Van Iwaarden, 2003). Website users consider it risky to share
personal information with organisations with whom they do not shop. Aspects in the assurance
factor that are important in e-business include: availability of a formal privacy and
confidentiality policy on a website, secured access to the website that customers are prompted to
acknowledge, general reputation of the supplier, certifications or guarantees of assurance, and
reports of experiences of other customers. Certifications and guarantees of assurance are
important in e-business and organisations are more frequently trying to obtain certification as
they are becoming more aware of the advantages of such certification in relation to their
customers trust in their organisation.

29
2.3.5 Empathy

In the dimension of empathy there are numerous aspects which are not found on the web site due
to the fact that there is no human interaction. Web sites normally do not offer personal attention,
but to achieve this, a number of websites have a design that can be personalised by the users of
these sites, so that people can have their own version of the Web site. This is aimed at giving
consumers the experience of personal attention.

2.4 A SERVICE QUALITY MODEL

The Service Quality model (Zeithaml, Bitner & Gremler, 2009) originally (Zeithaml, et al.,
1990) focuses on deficiencies within organisations that contribute to poor service quality
perceptions by customers. Organisations do not always meet the expectations of their customers
and the differences between the expected and perceived service are referred to as gaps. If an
organisation for some reason fails to meet their customers expectations, it does not always result
in a dissatisfied customer. Figure 2.2 portrays a Conceptual Service Quality Model created by
Zeithaml, et al. (1990) which is also found in Zeithaml, Bitner & Gremlers updated 5th edition
(2009).

Gaps demonstrated in Figure 2.2 are narrowed through closing the provider gaps (Zeithaml, et
al., 1990; Zeitham, et al., 2009). These include:

Gap 1 (Positioning gap) - this pertains to managements perceptions of consumers

expectations and the relative importance consumers attach to the quality dimensions.
This can be translated into not knowing what the customer wants.

Gap 2 (Specification gap) - this is concerned with the difference between what
management believes the consumer wants, and what the consumers expect the business to
provide. This translates into not selecting the right service designs and standards.

30
Gap 3 (Delivery gap) this is concerned with the difference between the service provided
by the personnel of the organisation and the specifications set by management. This
translates into not delivering to service standards.

Gap 4 (Communication gap) exists when the promises communicated by the business
to the consumer do not match the consumers expectations of those external promises.
This translates into not matching performance to promises.

Gap 5 (Perception gap) is the difference between the consumers internal perceptions
and expectations of the services (Zeithaml et al., 1990).

Figure 2.2: Service quality model

(Zeithaml, Parasuraman & Berry, 1990:46)

31
The factors that contribute to Gap 1 through Gap 4 are as follows (Zeithaml, et al., 1990;
Zeithaml, et al., 2009):

Gap 1 is the difference between what customers expect and what management perceives they
expect. This Gap occurs because companies overlook or underestimate the need to fully
understand their customers expectations. Many companies miss the mark by thinking inside out
they think that they know what customers want and then deliver that rather than outside in.
When this occurs companies provide services that do not match customers expectations, such as
leaving out important features and providing inadequate t levels of performance on features.
Zeithaml, et al. (1990) research found that various factors contribute to Gap 1. They are: a lack
of marketing research orientation, which includes insufficient marketing research, research not
focused on service quality, inadequate use of research findings, and a lack of interaction between
management and customers; an inadequate upward communication from contact personnel to
management; and too many levels of management which separates contact personnel from top
managers (Zeithaml, et al., 1990).

Once managers understand what customers expect, they face a second critical challenge of using
this knowledge to set service quality standards for the organisation, as depicted in Gap 2.
Managers may not be able or willing to put systems in place to match or exceed a customers
expectations. A variety of factors, such as resource constraints, short-term profit orientation,
market conditions or management indifference could account for Gap 2 (Zeithaml, et al., 1990)
which is the discrepancy between a managers perceptions of customers expectations and the
actual service quality specifications that they set out for obtaining service delivery. Gap 2 is a
wide gap in many companies today and some managers are reluctant to change the company
systems of service delivery to enhance customers perceptions. To do so would require altering
the process by which work is accomplished and investing in costly new equipment and
technology (Zeithaml, et al., 1990).
Additionally change requires a willingness to be open to different ways of structuring, calibrating
and monitoring the service that is provided. This then necessitates an aligning of executives
from different parts of an organisation to collectively understand the bigger picture of service
quality, and to additionally understand it from the customers point of view. There are four
conceptual factors which were found to be the main reasons for Gap 2, namely: inadequate

32
commitment to service quality including poor, vague and undefined service design, lack of
perception of feasibility, inadequate standardisation of tasks, and the absence of goal setting
(Zeithaml, et al., 1990).

In some cases management does understand customers expectations and does set appropriate
specifications (either formally or informally), and still the service delivered by the organisation
falls short of what their customers expect. Gap 3 entails the specification of service quality with
regards to service delivery. The difference between service specifications and the actual service
delivery is the service performance gap, which is when employees are unable and/or unwilling to
perform the service at the desired level. Again, this service performance gap is common in
service businesses. Service organisations are highly interactive, labour intensive and perform in
multiple locations and are especially vulnerable to Gap 3. There are opportunities for mistakes
and misunderstandings when providers and customers interact with one another as both
customers and providers experience and respond to each others mannerisms, attitudes,
competencies, moods and language. Service quality suffers when employees are unwilling or
unable to perform a service at the level required. Maintaining service quality then, depends on
not only recognising customers desires and establishing appropriate standards, but also on
maintaining a work force of people both willing and able to perform at specified levels. In light
of this, seven key conceptual factors contribute to Gap 3; namely: role ambiguity, role conflict,
poor employee job fit, poor technology-job fit; inappropriate supervisory control systems that
lead to an inappropriate evaluation/compensation system which creates difficulty in controlling
quality and consistency, lack of perceived control on the part of employees, and lack of
teamwork (Zeithaml et al., 1990).

Gap 4 is the gap between what a firm promises about a service and what it actually delivers
(Zeithaml et al., 1990). Accurate and appropriate company communications, such as advertising,
personal selling and public relations that do not overpromise or misrepresent are essential to
deliver a service that customers perceive as high quality. The potential for service companies to
overpromise is high. Service companies promise what people will offer, however, unlike
machinery, people cannot be controlled and therefore, communication about the service must be
appropriate and accurate. It is the responsibility of both the marketing and operations

33
departments to communicate the service to customers. Marketing must accurately reflect what
the service encounter entails, while operations, in turn, must deliver what marketing has
promised in their communications. If the communication medium such as advertising, personal
selling or any other external communication method is used, it sets up unrealistic expectations
for customers; the actual encounter can be a disappointment to the customer. Gap 4 can also
occur when companies neglect to inform customers of any special quality assurance efforts that
are not visible to customers as customers are not always aware of everything done behind the
scenes to serve them. Customers who are aware that the firm is taking concrete steps to serve
their best interest are likely to perceive a delivered service in a more favourable way. There are
two key contributing factors that contribute to Gap 4, namely: inadequate horizontal
communications which include inadequate communication between advertising and operations,
inadequate communication between sales people and operations, inadequate communication
between human resources, marketing and operations, and differences in policies and procedures;
and a propensity to overpromise (Zeithaml, et al., 1990).

This Conceptual Model of Service Quality helps organisations to understand measure and
improve their service quality. Expectations differ between service quality and customer
satisfaction. The terms satisfaction and quality are used interchangeably, but researchers
have attempted to be more precise about the meaning and measurement of the two. Although the
two are different in terms of their underlying causes and outcomes they have things in common.
Satisfaction is generally viewed as a broader concept, whereas service quality focuses
specifically on dimensions of service. Based on this, perceived service quality is a component of
customer satisfaction. Figure 2.3 illustrates the relationship between these two concepts.
Service quality is a focused evaluation that reflects the customers perception of reliability,
assurance, responsiveness, empathy and tangibles. Satisfaction is more inclusive as it is
influenced by perceptions of service quality, product quality, price, as well as situational and
personal factors (Zeithaml, et al., 2009).

34
 Figure 2.3: Customer perceptions of quality and customer satisfaction
(Zeithaml, Bitner & Gremler, 2009:103).

Expectations are customers beliefs about service delivery that serve as standards or reference
points against which performance is judged. Expectations are reference points against which
service delivery is compared. Furthermore, the levels can vary widely depending on the
reference point the customer holds (Zeithaml, et al., 2009). Oliver (1981:33, as cited by
Parasuraman, et al., 1988:17) stated that it is generally agreed that expectations are consumer-
defined probabilities of occurrence of positive and negative events if the consumer engages in
some behaviour. Expectations in service quality literature are viewed as the desires or wants of
the customers and what customers feel the service provider needs to offer, opposed to what firms
will offer (Parasuraman, et al., 1988). Customer expectations are influenced by a variety of
factors, being: a customers desired expectations are influenced by personal needs, lasting
service intensifiers, explicit service promised, implicit service promised, word-of-mouth
communication, and the customers past experience (Zeithaml, et al., 2009). It is therefore safe to
say that the Service Quality Conceptual Model is not applicable to customer satisfaction, but
only to service quality.

35
2.5 CUSTOMER SATISFACTION

The difference between service quality and customer satisfaction has been introduced and briefly
discussed. Satisfaction is a response to a perceived discrepancy between prior expectations and
perceived performance after consumption. However, customer satisfaction is a biased concept
because expectations differ from customer-to-customer.
Any firm that wants to assess its performance needs to distinguish between measuring the
following (Van Looy, Gemmel & Van Dierdonck, 2003):

perceived service quality

client satisfaction and
technical quality

2.5.1 Perceived Customer Value

Parasuraman (1988) found that consumers have different conceptions in respect to perceived
customer value. However, according to Guertin and Nantel (2007: 4) perceived value can be
defined as the consumers overall assessment of the utility of a product based on perceptions of
what is received and what is given. Essentially, value represents a trade off of significant get
and give components which are perceived as benefits and sacrifices for any given product or
service (Guertin & Nantel, 2007).

According to Woodruff (1997:142), customer value is a customers perceived preference for

and evaluation of these product attributes, attribute performance, and consequences arising from
use that facilitate [or block] achieving the customers goal and purpose in use situations.
Different customers may view the value of the same purchase differently on the Internet, even if
they value the item purchased identically. One buyer may feel that shopping online is too
complicated and they may find online shopping impersonal, whereas another buyer may find
online shopping convenient and quick (Keeney, 1999).

36
2.5.2 Service Satisfaction Framework

Satisfaction and dissatisfaction are at either end of a continuum, while the actual position is
defined by a comparison between expectations and outcome (Van Looy, et al., 2003). A service
satisfaction framework is presented in Figure 2.4 and it contains the following concepts:
satisfied client: this occurs when the outcome of the perceived service quality meets
expectations
delighted client: this occurs when the perceived service quality exceeds the expectations
dissatisfied client: this occurs when the perceived service quality is below expectations

Figure 2.4: Service satisfaction framework

(Van Looy, et al., 2003: 126)

It can be deduced from this framework that only a certain percentage of clients who are
dissatisfied make their complaints heard. Customer satisfaction and complaint management are
crucial parts of an organisations strategy to increase loyalty in customers and ultimately increase
their profits. This is achieved when firms minimise client defections and have effective service
recovery strategies that maximise repeat business. Organisations can achieve service through
measuring their customers satisfaction and managing complaints effectively (Van Looy, et al.,
2003).

37
2.6 BEHAVIOURAL INTENT

Perceptions of service quality influence behaviours and intentions. Good perceived service
quality and bad perceived service quality would not lead to the same behaviours and intentions.
Both Parasuraman, et al. (1988) and Zeithaml, et al. (1996) stated that a positive relationship
exists between perceived service quality and behavioural intentions. Behavioural intentions can
be defined as a customers biased possibility of acting in a certain way (Fishbein & Ajzen,
1975). In this regard, three behaviours in particular have been associated with profitability and
the market share of a firm; these customer behaviours are:
word-of-mouth
repurchase intention; and
feedback to the service provider

2.6.1 Word-of-mouth

Word-of-mouth is the flow of information regarding a product, service, or company from one
customer to another. Therefore, it is safe to say that word-of-mouth is a trusted external source
of information that customers can use to evaluate a product or service. The empirical research
that has investigated the relationship between customer satisfaction and word-of-mouth has not
been consistent. Some researchers have found a positive relationship with satisfied customers
who engage in more word-of-mouth and have intentions of returning (Holmes & Lett, 1977;
Swan & Oliver, 1989; Oliver, 1997; Ganesh, Arnold & Reynolds, 2000; Antanassopoulos,
Gounaris & Stathakopoulos, 2001; Bowen & Chen, 2001; Davidow, 2003; Wangenheim &
Bayon, 2004; Brown, Barry, Dacin & Gunst, 2005; Babin, Lee, Kim & Griffin, 2005). Other
researchers have found negative relationships resulting in dissatisfied customers who engage in
more negative word-of-mouth (Bearden & Teel, 1983; Westbrook, 1987; Hart, Heskett, &
Sasser, 1990; Singh, 1990; Keaveney, 1995; Smith & Bolton, 1998; Cronin, Brady & Hult, 2000;
Huefner & Hunt, 2000; DeWitt & Brady, 2003; Lewis & McCann, 2004). Other studies have not
found any significant relationships between the two (Engel, Kegerreis & Blackwell, 1969;
Bettencourt, 1997). Additionally, more studies have reported a weak or negative relationship
between satisfaction and word-of-mouth, mainly due to the interaction of satisfaction with other

38
variables, such as affect and commitment (Nyer, 1997; Brown et al., 2005). Even though there
are mixed findings about the details of these relationships, there is general agreement about the
valence, positive or negative, of the word-of-mouth which is that satisfied customers generate
positive word-of-mouth (Bitner, 1990; Ranaweera & Prabhu, 2003; Babin, et al., 2005;
Reichheld, 2006), whereas dissatisfied customers generate negative word-of-mouth (Richins,
1983; Weun, Beatty & Jones, 2004; Reichheld, 2006).

Even though studies have concluded that satisfaction is a necessary condition for positive word-
of-mouth to take place, it is not always sufficient (Wirtz & Chew, 2002), however, it has been
agreed that positive feedback has always been driven by satisfaction. Researchers have claimed
that positive word-of-mouth is based on satisfaction and negative word of mouth on
dissatisfaction (Richins, 1983; Goldenberg, Libai, Moldovan & Muller, 2007). In particular,
positive word-of-mouth has been clearly associated with superior service quality. Bitner, Booms
and Tetreault (1990) also found that perceived service quality influences behavioural intentions
in terms of word-of-mouth and repurchase intention, and that service quality is an antecedent of
customer satisfaction (Cronin & Taylor, 1992; Bitner & Hubbert, 1994; Caruana, 2002;
Sureshchandar, Rajendran, & Anantharaman, 2002; Tam, 2004; Yi & La, 2004). Similarly,
Dabholkar, et al. (1996) also found a positive association between perceptions of service quality
and the likelihood of recommending a product or service.

2.6.2 Repurchase intention

Researchers have found a positive association between quality, satisfaction and repurchase
intentions (Bitner, et al., 1990; Cronin & Taylor, 1992; Jones & Suh, 2000; Castro, Armario, &
Ruiz, 2007). However, other studies have not confirmed such a relationship (Sivadas & Baker-
Prewitt, 2000). In an attempt to explain the above confliction, Rust and Zahorik (1993)
suggested that a satisfied customer might switch to an alternative supplier with a view to increase
their present satisfaction level, whereas a dissatisfied customer might remain with an existing
supplier because no better alternatives are available to them.

39
2.6.3 Feedback to the service provider

Feedback or customer feedback refers to the communication of negative (complaints) or positive

(compliments) information to providers about their services. Information such as this is very
useful for providers in that it allows them to identify areas in which adjustments of performance
are required. Sderlund (1998) concluded that dissatisfied customers are significantly more
likely to provide negative feedback than satisfied customers providing positive feedback, and
that customers who provide negative feedback are seeking to achieve some form of
compensation for unmet quality of service.

Furthermore, in their study of the links between service quality and behavioural intentions,
Parasuraman and his associates (e.g., Parasuraman, et al., 1994; Zeithaml, et al., 1996) identified
the five dimensions of behavioural intentions: loyalty to the company, propensity to switch,
willingness to pay more, external response to problem, and internal response to problem.
Studying the influence of service quality on the five behavioural intention dimensions, they
found positive effects with regards to loyalty to a company and a willingness to pay more.
Negative effects included a tendency to switch an external response to a problem, and no
significant effects with internal response to problems (Parasuraman, et al., 1994; Zeithaml, et al.,
1996). In another study (Bloemer, de Ruyter & Wetzels, 1999), the same items were used as by
Zeithaml, et al. (1996) and different dimensions for behavioural intentions were found, namely:
repurchase intentions, word-of-mouth communication, price sensitivity and complaining
behaviour. They also found that relationships between service quality and behavioural intentions
had notable differences across industries.

According to Zeithaml, et al. (1996) behavioural intentions can also be captured by such
measures as repurchase intentions, word-of-mouth, loyalty, complaining behaviour, and price
sensitivity. High service quality, as perceived by the customer, often leads to favourable
behavioural intentions, while a low service quality tends to lead to unfavourable behavioural
intentions. Zeithaml, et al. (1996) further emphasised that behavioural intentions are relevant to
a customers decision to remain with or leave a company. When consumers are loyal to a
company they are then willing to say positive things about the organisation to others (Srinivasan,
Anderson & Ponnavolu, 2002). Loyalty to a company and positive word-of-mouth are both

40
favourable behavioural intentions. A propensity to switch from providers, negative word-of-
mouth, and complaining are unfavourable behavioural intentions (Shaw-Ching Liu, Furrer &
Sudharshan, 2001). Other researchers (Richins, 1983; Scaglione, 1988; Singh, 1988) have
indicated that when consumers perceive to have experienced worse service performances than
expected, they are likely to complain to a third party which is an example of negative word-of-
mouth.

Most of the early studies linking either service quality or customer satisfaction to behavioral
intentions used a uni-dimensional measure of behavioural intentions (e.g., Woodside, Frey &
Daly, 1989; Cronin & Taylor, 1992; Anderson & Sullivan, 1993). These studies found a
significant positive relationship between overall customer satisfaction and loyalty or repurchase
intention. More recent studies have investigated the effect of customer satisfaction and
perceived service quality on various kinds of behavioural intentions, such as loyalty, positive
word-of-mouth (Boulding, et al., 1993), intentions toward repeat patronage, and intentions
toward communication to others (Shaw-Ching Liu, Sudharshan & Hamer, 2000).

Behavioural intentions have been studied as intervening variables between service quality and
financial performance (Zeithaml, et al., 1996). Several studies indicate that upset customers may
tell on average 10-20 people about their negative experiences. Shaw-Ching Liu, et al. (2001:
119) stated/predicted that with the increasing use of the Internet, communication among
customers will soar. Shaw-Ching Liu and his colleagues could not have been more precise.
With service quality websites such as HelloPeter.com, customers can state/share their
complaints or compliments online. The reality of this is that negative service received from an
organisation, spreads speedily on the internet as well as through word-of-mouth. Websites such
as HelloPeter.com have led practitioners to place a renewed focus on customer complaint
behaviour and customer complaint management. Some organisations listed on HelloPeter.com
have taken the opportunity to renew their focus on customer complaint behaviour and customer
complaint management by responding to complaints listed by registered users of the website.
When customers report on the service of a company who responds (not all companies on the
website respond to complaints made) 48 hours after they submit their report, customers are then
requested to rate the organisations response to their complaint and are given the option to change
their complaint to a compliment.

41
Behavioural intentions of customers are an important predictor of the profitability of service
organisations (Reichheld & Sasser, 1990; Anderson, Fornell, & Lehmann, 1994; Slater &
Narver, 1995). There is a strong link between customer loyalty and organisations profitability
(Rust & Zahorik, 1993; Loveman, 1998; Gupta, Lehmann & Stuart, 2004; Ho, Park & Zhou,
2004; ). It has been difficult to demonstrate the exact nature of the relationship between the
perceptions of customers and their future behaviour (Mittal & Kamakura, 2001; Sun, Wilcox, &
Zhu, 2004). Both costs and the revenue of organisations are affected by repeat purchases,
positive word-of-mouth and customer feedback. Moreover, there is strong evidence that service
quality has either a direct influence on the behavioural intentions of customers and/or an indirect
influence on such intentions, mediated through customer satisfaction (Zeithaml, et al., 1996;
Cronin, et al., 2000).

Figure 2.5: The behavioural and financial consequences of service quality

(Zeithaml, Berry & Parasuraman, 1996:33)

Given these relationships, it is important for service organisations to measure and monitor
service quality and satisfaction with the aim of influencing the behavioural intentions of their
customers. Mittal and Kamakura (2001) have contended that customers who display different

42
personal characteristics also display differences in their future behaviour despite having similar
levels of satisfaction with a provider.

Figure 2.5 is a conceptual model created by Zeithaml, et al. (1996) that depicts the behavioural
consequences of service quality as intervening variables between service quality and the
financial gains or losses from retention or defection of customers. The left portion of the model
is at the level of the customer and proposes that service quality and behavioural intentions are
related and therefore, that service quality is a determinant of whether a customer will remain
with or leave a company. The customers assessment of service quality and posits when service
quality assessments are high, the customers behavioural intentions are favourable, which also
strengthens their relationship with the company (Zeithaml et al, 1996). When service quality
assessments are low, the customers behavioural intentions are unfavourable and the relationship
is more likely to be weakened.

2.7 ELECTRONIC SERVICE QUALITY

Both concepts of e-service and e-quality have become increasingly important issues in research.
E-service is different from traditional service, which is based on interactive information flow
between customers and service providers. Companies are attempting to establish a competitive
edge by interacting with their customers over the web. E-service quality has been regarded as
having the potential of not only delivering strategic benefits, but also enhancing operational
efficiency and profitability (Cronin, 2003; Zeithaml, 2000). Companies are using the web to
enhance communications with their customers, to sell more products and services through an
alternative channel, and to reduce costs associated with interacting with customers. E-service is
becoming even more critical for companies to retain and attract customers. The most
experienced and successful companies using the web are beginning to realise that the key
determinents of success or failure are not merely web presence or low price, but instead to center
on delivering electronic service quality. To encourage repeat purchases and build customer
loyalty, companies must split their focus to e-service and all cues and encounters that occur
before, during and after the transaction (Zeithaml, 2002).

43
E-service quality (e-SQ) can be defined as the extent to which a website facilitates efficient and
effective shopping, purchasing and delivery (Zeithaml, 2002). Most e-service quality scales are
developed based on the SERVQUAL instrument by Parasuraman, et al. (1985, 1988). The
SERVQUAL instrument has been used to measure service quality across service industries, and
some studies have applied the SERVQUAL model to measure e-service quality and have simply
reworded its items. However, the employing the the SERVQUAL scale by merely rewording the
items seems to be inefficient in the context of e-service quality Parasuraman, et al., 2005) and the
generic dimensions of the SERVQUAL model need to be reformulated in order to be used
meaningfully in the context of e-service, since e-service is quite different from traditional
service, with three aspects standing out:

absence of sales staff: in e-service, there is no service encounters between the cusomers
and the sales staff as in the traditional service
absence of traditional tangible element: in e-service, service process is almost completed
in the virtual environment with some intangible elements
self-service of customers: in e-service, customers conduct self-service in purchasing and
realise control in the business process

Given the differences between traditional service and e-service, the SERVQUAL model is not
appropriate for measuring e-service quality (Bressolles & Nantel, 2004). Some studies have
been conducted aiming at developng measurement scales that are appropriate to measure e-
service quality.

44
 Table 2.1: Studies conducted to measure e-service quality

Author[s] Dimensions Context

Dabholkar website designs, reliability, delivery, ease of use, enjoyment e-service

and control
(1996)

Yoo and Donthu efficiency, reliability, fulfillment, privacy, responsivness, online retailing
compensation, and contact
(2001)

Cox and Dale website appearance, communication, accessibility, credibility, online retailing
understanding and availabiltiy
(2001)

Yang website design, security and information online retailing

(2001)

Wolfinbarger and website design, reliability, security and customer service online shopping
Gilly sites
(2002,2003)

Zeithaml, et al, security, communication, reliability, responsiveness and e-service

delivery
(2002b)

Madu and Madu performance, features, structure, aestheticd, reliability, e-service

sercieability, security and system integrity, trust,
(2002)
responsiveness, service differentiation and customisation, web
store police, reputation, assurance and empathy

Loiacono, et al. information, interactivity, trust, response time, website design, online retailing
intuitiveness, flow, innovativeness, integrated comminication,
(2002)
business process and substitutability

Yang and Jun website design, security, reliability, responsiveness, online retailing
accessibility ad customisation
(2002)

Surjadaja, et al. security, interaction, responsiveness, information, reliability, e-service

deliver and customisation
(2003)

Santos ease of use, appearance, linkage, structure, content, efficiency, e-service

reliability, communication, security, incentive and custoer
(2003)
support

Yang, Peterson and responsiveness, credibility, ease of use, reliability, online retailing
Cai convenience, communication, access, competence, courtesy,
personalisation, collaboration, security and aesthetics
(2003)

45
 Author[s] Dimensions Context

Yang, Jun and reliability, responsiveness, competence, ease of use, security online shopping
Peterson and product portfolio sites
(2004)

Field, et al. website design, reliability, security and customer service e-service
(2004)

Kim and Stoel web appearance, entertainment, information, transaction online retailing
capability, responsiveness and trust
(2004)

Yang and Fang responsiveness, reliability, credibility, cometence, access, e-service

courtesy, communication, information, responsiveness and
(2004)
website design

Gounaris, et al. website design, information, trust, responsiveness and online retailing
reputation
(2005)

Parasuraman, et al. efficiency, availability, fulfillment, privacy, responsiveness, e-service

compensation and contact
(2005)

Lee and Lin website design, reliability, responsiveness, trust and online retailing
personalisation
(2005)

Kim, et al. efficiency, fulfillment, system availability, privacy, online retailing

responsiveness, compensation, contact, information and
(2006)
graphic style

Fassnacht and Koese graphic quality, ayout, attractiveness of selction, information, e-service
ease of use, techical quality, reliability, fuctional benefit and
(2006)
emotional benefit

Cristobal, et al. website design, customer service, assurance and order e-service
management
(2007)

Sohn and Tadisina trust, speed of delivery, reliability, ease of use, customised online financial
communication, website content and functionality service
(2008)

With an increase of e-commerce within organisations, the importance of measuring and

monitoring e-service quality has been recognised. Some studies have been conducted aiming at
developing scale which is adapted to e-service quality field, such as e-service, online reailing,
online shopping and online financial service. Most of the studies take a combination of

46
traditional service quality dimensions and web interface quality dimensions as a point of
departure. Dabholkar (1996) conducted a study on the measures of e-service quality and focused
on web design, and argues that there are seven basic parameters in the judgement of e-service
quality (Dabholkar, 1996). Yoo and Donthu (2001) developed a four-dimensional scale called
SITEQUAL to measure online website quality (Yoo & Donthu, 2001). Cox and Cox and Dale
(2001) set up a six-dimensional scale to measure online retailing service quality . Loiacono,
Watson & Hoodhue (2002) developed a scale called WEBQUAL that measured online retailing
service quality, which composed of twelve dimensions. (Lee & Lin, 2005). Wolfinbarger and
Gilly (2002) developed an e-service quality scale that focuses on online shopping, which they
initially titled COMQ and later it was developed to eTailQ Wolfinbarger & Gilly, 2002; 2003).
Sohn and Tadisina (2008) developed a six-dimensional model for e-service quality assessment,
which they based on their empirical study on online financial institutions (Sohn & Tadisina,
2008).

There is also growing recognition of different variability in the outcome of e-service quality
studies in terms of the measure of e-service quality (Waite, 2006; Kim, Kim & Lennon, 2006)
and recent studies on e-service quality show different dimensions in e-service quality (Loiacono,
et.al., 2002; Santos, 2003; Surjadaja, Ghosh, & Antony, 2003; Field, Heim & Sinha, 2004; Kim
& Stoel, 2004; Gounaris, Dimitriadis & Stathakopoulos, 2005; Fassnacht & Koese, 2006; Kim,
et al., 2006; Cristobal, et al., 2007; Sohn & Tadisina, 2008). Madu and Madu (2002) developed
a 15- dimensional scale of e-service quality, which is built on better understanding of customers
and providing services to meet the needs and expectations of customers (Madu & Madu, 2002).
Santos (2003) argues that both active dimensions and incubative dimensions are important in e-
service quality and that both should be taken into account in e-service quality evaluations, as
well as being put forward on a scale consisting of eleven sub-dimensions (Santos, 2003). Field,
et al. (2004) developed a process model for assessing and improving service quality by
identifying e-service system entities and transactions between those entities and mapping key
quality dimensions onto them (Field, et al., 2004). Gounaris, et al. (2005) suggested that
different dimensions of perceived e-service quality are influenced by different antecedents
(Gounaris, et al., 2005). Yang and Jun (2002) identifies the differentiation among dimensions
between online purchaser and non-purchaser (Yang & Jun, 2002). Yang and Fang (2004) further
examine the differentiation of dimensions to online service satisfaction and dissatisfaction. They

47
argue that there are four significant quality dimensions leading to both satisfaction and
dissatisfaction, including responsiveness, reliability, ease of use and competence (Yang & Fang,
2004). As mentioned earlier, Parasuraman, et al. (2005) developed the dimensions for core
service delivery and recover services delivery in e-service quality (Parasuraman, et al., 2005).
Kim, et al. (2006) extended these dimensions into a nine-dimension scale in e-service quality to
evaluate the service quality of websites in the apparel retailing industry (Kim, et al., 2006).

Oliveir, Roth & Gilland (2002) suggest that companies can achieve competitive capabilities by
offereing good e-services to customers (Oliveira, Roth & Gilland, 2002). Service quality has a
strong impact on customer satisfaction and on the performance of companies. Improving e-
service quality to satisfy and retain customers is becoming a challenging issue.

2.7.1 Dimensions of e-service quality

According to Zeithamls (2002) study, e-SQ has seven dimensions that formed two scales: a core
e-SQ scale and a recovery scale. The core scale includes efficiency, reliability, fulfillment and
privacy and can be used to measure cusomer perceptions of service quality.
Efficiency refers to the ability of the customers to get to the website, find their desired
product and information associated with it, and check out with minimal effort.
Fulfillment incorporates accuracy of service promises, having products in stock and
delivering the products in the promised time.
Reliability is associated with the technical functioning of the site, particularly the extent
to which it is available and functioning properly.
The privacy dimension includes assurance that shopping behaviour data is not shared and
that credit card information is secure.

Zeithaml called this the core e-SQ because she found that these are the main dimensions that
consumers want in shopping on the internet (Zeithaml, 2002). Three other dimensions that make
up the recover scale were found to be significant when online customers ran into problems and
they include responsiveness, compensation and contact.

48
 Responsiveness measures the ability of a company to provide appropriate informaton to
customers when a problem occurs, have mechanisms for handling returns and providing
online guarantees.
Compensation is the dimension that involves receiving money back, return shipping and
handling.
Contact points to the need of customers to be able to speak to a live customer service
agent online or through the phone.

2.8 SERVICE QUALITY IN THE AIRLINE INDUSTRY

The airline industry plays an important role in the global economy. It is a vital component of the
leisure/tourism industry and remains essential to the conduct of international business. The
airline industry represents one of the biggest industries worldwide with global airline revenues
exceeding $12.9 billion in 2006 (International Air Transport Association, 2007). This industry has
also experienced unprecedented and sustained levels of demand (one exception to this is the
September 11th attacks) that is putting a strain on the existing aviation infrastructure (Reed,
2007).

Deregulation and liberalisation in the airline industry has transformed competition and allowed a
variety of new entrants into the airline industry. Restrictions on fares have been removed, as
well as legislative and regulatory changes to encourage new entrants, have contributed to an
altered competitive landscape and allowed for new Low Cost entrants such as Ryanair and
Easyjet (Tiernan, Rhoades & Waguespack, 2008).

Prior to deregulation of the airline industry, service quality was a matter of conforming to the
standards set by a countries designated Civil Aviation Authority or Board. As deregulation and
liberalisation spread throughout the international airline industry, the issue of service quality
took on a new focus as well as the measuring of service quality (Rhoades & Waguespack, 2008).
A number of studies have addressed service quality issues. The mainstream research has been
based on the notion that quality of service is perceived and evaluated by customers (Grnroos,

49
1990). The most widely used customer-perceived service quality model is the SERVQUAL
model developed by Parasuraman, et al. (1985) as previously mentioned.

According to Young, Cunningham & Lee (1994) in the pre-deregulation era airlines service
quality was assessed with respect to industry and managerial variables such as flight frequency,
load factors, transit times and aircraft type (Jordan, 1970; Douglas & Miller, 1974). However, in
the post-deregulation and liberalised environment the provision of superior service quality has
been accepted as an important source of customer retention and loyalty, which may ultimately
lead to superior competitive performance (Parasuraman, Berry & Zeithaml, 1991a; Berry, et al.,
1994; Zeithaml, et al., 1996).

According to Parasuraman, Berry & Zeithaml (1991b), customer loyalty can be achieved by
organisations that display consistency, reliability and fairness in the provision of their service.
They further argue that organisations making realistic promises about delivery are more likely to
capatalise on superior service delivery. Only a few studies have attempted to integrate a scale
such as SERVQUAL or SERVPERF into the airline service research (Fick & Ritchie, 1991;
Chang & Yeh, 2002). SERVQUAL was also the chosen scale used for an airline context in 1994
(Sultan & Simpson, 2000). Sultan & Simpson found the SERVQUAL factor of reliability (For
example, excellent airlines will provide their services at the time they promise to do so) was the
most important dimension among air passengers. Young, et al. (1994) also used the
SERVQUAL scale on a sample of 105 respondents and found that reliability was the
predominant predictor of satisfaction, while both reliability and empathy were found to influence
customer retention. However, there has been no longitudinal perceptual study on airline service
quality published in the academic realm. This lack of follow-up study or an update of the work
done, is common in much of marketing research, not just airline service quality research
(Tiernan, et al., 2008).

Several travel-related organisations have conducted international surveys of quality. Two of the
most well-known organisations are Frequent Flyer and Conde Nast. Typically, these
organisations survey a cross section of frequent flyers to develop a ranking of airlines based on
selected and differing areas of customer satisfaction. In general, these surveys indicated that
airline service quality is driven by these key factors: online performance, airport check-in,

50
schedule/flight accommodations, seating, comfort, gate location, aircraft interior, flight
attendants, post-flight service, food service, and frequent flyer programs (Glab, 1998).

Although service quality can be one of the key factors in attracting and retaining loyal customers,
airlines often find it difficult to offer appropriate service attributes. The Airline Quality Rating
Report, 2005, indicated that air travel services have declined and airlines have failed to deliver
their self-policed promise to do better in the customer service area (Gursoy, Chen & Kim, 2005).

2.9 CONCLUSION

This chapter presents the findings of the literature review and further introduces the importance
and measurement of service quality to the reader. Also introduced in this chapter are the topics
of customer satisfaction and behavioural intent, electronic service quality and service quality in
the airline industry. Chapter three further introduces the reader to and elaborates on the six
electronic service quality dimensions.

51
 CHAPTER 3

THE SIX DIMENSIONS OF SERVICE QUALITY

3.1 INTRODUCTION

The value of Internet-based transactions is growing quickly and is estimated to grow twenty-fold
over the next five years, reaching $11 trillion by 2010 (Mullaney, 2000). This chapter presents
dimensions to measure the quality of an airline website as perceived by customers. As Internet
shopping gradually moves from a novelty to a routine way of shopping, the quality of Internet
sites will play an important role in differentiating sites. High quality sites will be able to attract
more browsers and shoppers than competing low quality sites because quality builds sustainable
competitive advantage. Internet shopping sites can be defined as web retail sites in which
customers can browse, evaluate, order and purchase a product or service (Yoo & Donthu, 2001).
In short, Internet shopping sites are online versions of physical retail stores where all transactions
and their relevant activities take place in online cyber spaces. NETQUAL which is designed to
capture the perceived quality of a web retail site.

Literature on the quality of traditional retail stores confirmed that consumers use store quality as
an indication about the quality of the stores products (Dodds, Monroe & Grewal, 1991).
Similarly, high quality Internet sites will attract more attention and visits from consumers by
implying that their products are of a high quality. In addition, when consumers are satisfied with
a high quality Internet site, they stimulate active and positive word-of-mouth communications
for the site. Little research has attempted to develop a sound instrument to measure the
perceived quality of an Internet shopping site. The lack of a measure has been a barrier to
tracking and improving site quality, and investigating the relationships between customer
satisfaction and behavioural intentions (Yoo & Donthu, 2001).

The measurement of website quality is in its early stages and there is no amply accepted and
tested scale (Zeithaml, et al., 2002a). Several measuring instruments have been developed with
the objective of assessing the quality of websites (Loiacono, et al., 2001; Yoo & Donthu, 2001;
Aladwani & Palvia, 2002; Barnes & Vigden, 2002; Wolfinbarger & Gilly, 2002; Zeithaml, et al.,

52
2000, 2002b). Zeithaml, et al. (2002a) provides an excellent review of most of these studies and
summarises the main dimensions of website quality as information availability and content
(information quality), ease of use, privacy/security, graphic style and fulfillment.

3.2 INFORMATION

The Internet is an innovative form of information technology, yet most commercial websites
function as well-defined information systems. Information system quality can be divided into
systems and information quality. System quality refers to software development, while
information quality embraces accuracy, timeliness, currency, precision, completeness,
conciseness, relevance, understandability, meaningfulness, comparability and reliability of
information (DeLone & McLean, 1992; 2003).

The concept of information quality is becoming more important as information becomes the very
livelihood of organisations today. The operational, tactical, and strategic performance of
organisations is tied directly to the quality of their information (Redman, 1998; Gattiker &
Goodhue, 2005; Nelson, Todd, & Wixon, 2005). Poor information quality can wreak havoc in
organisations by resulting in customer dissatisfaction, increased costs, reduced levels in the
effectiveness of decision making, and a diminished ability to plan, implement, and execute
organisational strategies (Redman, 1998). For example, poor information quality may result in
customers getting charged for products or services that they did not purchase or products being
shipped to the wrong addresses. Poor information quality may be the single biggest obstacle to
developing sound business strategies (Redman, 1998).

Information is thought to be a multidimensional concept (Fisher & Kingma, 2001; Lee, et al.,
2002; Nelson, et al., 2005). Wang and Strong (1996) found four dimensions that are important to
customers when they are searching for information. They proposed a framework which included
the following: 1) the information must be accessible, 2) the information must be interpretable, 3)
the information must be relevant, and 4) the information must be accurate. These four
dimensions were labeled as intrinsic information quality, contextual information quality,

53
representational information quality, and accessibility information quality. Intrinsic information
relates to the accuracy, believability and reputation of the information supplied

Contextual information quality highlights the requirement that information quality must be
considered within the context of the task at hand; that is, information (data) must be relevant,
timely, complete, and appropriate in terms of amount so as to add value (Wang & Strong,
1996). The representational information quality dimension includes both the format of the
information and the meaning of the data. The information quality attributes for this dimension,
including interpretability, ease of understanding, representational consistency, and concise
representation. In the study by Wang and Strong (1996), this dimension is tied to the output of a
computer system. The two previous dimensions of information quality, intrinsic and contextual
are independent of computer systems and could have resulted from any source.

The last dimension in the typology and accessibility information quality is related to how
accessible the information is to find or to discover on a website, given its security features.
Before the widespread use of websites, researchers did not consider accessibility as an aspect of
information quality because information was disseminated in hard-copy format; thus, getting to
the data was not a problem. However, with the use of computers, Wang and Strong (1996)
pinpointed accessibility as a major concern. This issue is also related to the ownership of
information and how information gatekeepers manage and distribute that information to others
(Redman, 1998). This user-friendly information is also based upon the capture of the information
in digital format that is accessible to those who need it in a comprehensive format (Angst &
Agarwal, 2009). The principal goal of information systems service is to enable customers to
function independently and to conduct numerous transactions on their own. In addition,
consumers often seek desired product and service information through websites (Yang, Jun, &
Peterson, 2004).

Therefore, designers should take care of the information quality related to the products and
services supplied on the e-stores website (Huizingh, 2000) and should offer any additional
information that could be useful for the consumer (Lohse & Spiller, 1999). Searching for
information about products and services is one of the most performed activities that users carry
out through the internet (European Interactive Advertising Association, 2007).
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Therefore, offering accurate information could be a source of obtaining potential users and
customers. Quality information is essential information and must be provided timeously to the
customer, because information that is provided after an important decision is made is of no use
(Shin, 2004). If information is not relevant enough for individuals when they need to make their
decision, individuals will not use it (Lohse & Spiller, 1999). Information made available by
websites has been widely accepted as a key component of perceived service quality (Novak,
Hoffman, & Yung, 2000; Zeithaml, et al., 2002a; Kim & Lee, 2004). In order to maximize the
extent to which the context attached to transferred knowledge is understood, information must be
easy to read and comprehendible (Lee, Strong, Kahn, & Wang, 2002; Ong & Lai, 2007), as
incomprehensible information for users is neither reliable nor relevant. Furthermore, the
meaningfulness of information is critical to information quality. Therefore, the content of
information quality should be measured as timelines, relevance, understandability and
meaningfulness (DeLone and McLean, 1992; Beverly, Diane, & Richard, 2002; Lee, Strong,
Kahn, & Wang, 2002; Wu & Wang, 2006; Michnik & Lo, 2009).

Information is an important dimension of online service quality, and the information related to
the shopping process has been empasised as another critical aspect in order to achieve an
effective e-commerce website (Schubert & Selz, 1999; Wolfinbarger & Gilly, 2003). This is
particularly true for online apparel retailers because online shoppers cannot try on the garment to
check fit, texture, or colour so they rely heavily on the information available to them on the
website to aid them in their purchase decision. Hence, unless necessary information for an online
purchase is available, online shoppers will exit the site and visit a competitors web site (Song &
Zinkhan, 2003).

In addition, there are no sales people to answer a shoppers questions; as a result it is especially
critical for online retailers to have necessary information available on the website (Kim & Stoel,
2004). Lynch and Ariely (2000) found that the ability to find necessary information on a website
especially about; price and quality, positively influenced satisfaction with the online shopping
experience, the product purchased, and patronage intention. It has been proposed that the higher
the quality of information, the more online customers would select that website for online
shopping (Lee & Kozar, 2006). The matter of whether the quality of information carried on the

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websites meets the needs and expectations of users is therefore crucial. Based on past research
information, quality can be measured using information relevance, currency and
understandability. Information relevance includes relevant depth and scope, and completeness of
information. Currency includes updating of the information. Understandability comprises of
ease of understanding and clearness of the information. The significant effects of information
relevance, currency and understandability on increasing information quality have been exhibited
in previous studies (Eighmey & McCord, 1998; Nielsen, 2000; McKinney, Yoon & Zahedi,
2002). Other common criteria for assessing information content includes: accuracy, timeliness,
its concise nature and completeness (Jeong & Lambert, 2001; Perdue, 2001; Madu & Madu,
2002).

Novak et al (2000) argues that information quality contributes to delivering a compelling

experience, while Francis and White (2002) found that adequate information or product
description enhances a customers intention. The quality of information that is delivered is a key
factor which affects a websites success; hence website information quality must be relevant, up-
to-date and easy to understand to significantly influence online customers attitude, satisfaction
and their purchase intentions (Feindt, Jeffcoate & Chappell, 2002).

Prior studies have argued that information quality has had a positive impact on perceived ease of
use and perceived usefulness (Chang, Li, Hung & Hwang, 2005; Ahn, Ryu & Han, 2007) Lin
(2007) argued that information quality is a valuable predictor of perceived ease of use and
usefulness. Chang, et al. (2005) found that information quality has had a significant relationship
to perceived ease of use and usefulness, and Ahn, et al. (2007) also indicated that information
quality has had a positive influence on user perception of ease of use and usefulness in the
context of online retailing.

3.3 EASE OF USE

Ease of use is defined as the degree to which a person believes that using an information system
would be free of effort (Al-Momani & Noor, 2009), as well as how easy it is for customers to

56
conduct external searches in cyberspace and internal navigations within the website. External
searches refer to the extent to which customers can easily find a website on the Worldwide Web.
This dimension contains three aspects. Firstly, navigation deals with how easily users can search
for information within a website. It is regarded as the essence of the multidimensional construct
of e-travel service quality (Kaynama & Black, 2000). Without interaction with personnel, online
customers need to locate information and merchandise by themselves. If they frequently get lost
or confused during the search process, they are likely to quit. The design and presentation of a
website involving a navigation mechanism affects the relevancy and efficiency of the outcome of
searching (Perdue, 2001). It is suggested that navigation plays a dominant role in delivering
satisfactory services.

The second aspect, website access, refers to the ability users have to access resources ,including
travel-related information and service features, on airline websites, and it is related to the ease of
connection and speed of downloads (Cox & Dale, 2001). It is likely that online users will quit
and click on to other sites because it took too long for them to access a website or download
information from the site. Therefore, website access is an important component related to
service performance.

The third part of this dimension is the transactional functions, which allow customers to feel that
the website is intuitive, simple and user-friendly for completing transactions (Novak, et al., 2000;
Kim & Lee, 2004). Several components, including easy ordering, easy payment, and easy
cancellations indicate the degree to which customers believe that of the use of the website would
involve little or no effort (Armstrong & Hagel, 1996).

Usability is a tool for measuring the quality of a website (Ranganathan & Ganapathy, 2002).
Therefore, the ease of use of a system could improve a more complex learning performance and
a higher ability to anticipate how that system will perform. More specifically, usability improves
a better understanding of the contents and tasks needed for the achievement of a goal (For
example, placing an order). This reduces the probability of error and improves the levels of trust
(Muir & Moray, 1996).

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A website must not only have a good and attractive design but must also provide not only beauty
and appeal, but also high levels of usability, since it influences the affective states of the user
(Desmet & Hekkert, 2007). Thus, a well designed website should ensure a high level of usability
(Cristobal, 2006). An attractive design can evoke feelings of pleasure during the use of a website
(Flavian & Gurrea, 2008). As a consequence, an adequate degree of usability, related to a
comfortable atmosphere, could create a positive bias in the consumer. A good level of perceived
usability could lead to higher levels of satisfaction, trust and loyalty towards a specific website
(Flavin, Guinalu, & Gurrea, 2006; Kim & Eom, 2002; Chen, Wigand, & Nilan, 1999). Two
central issues for usability are information organisation and site navigation. Navigation describes
a users ability to find information efficiently with few barriers. If users cannot quickly
understand the nature or structure of a site, they may become frustrated and leave. Users are
likely to return to a site that they perceive to include a well-designed navigation scheme (Krug,
2000). Similarly, users need to be able to quickly determine the nature of the information
presented at a site, how the information is organised, and how they can locate the information
that they seek. Central to website navigation is the need to let users know where they are, where
they can go, how they can get there, and where they have been (Nielsen, 2000). When clickable
images are informative, they act as navigational cues that communicate all of these usability
messages.

An indicator of a sites overall quality is how easy the site is to use (Boonghee & Donthu, 2002).
Usability issues revolve around how easy a system can be learnt (Mills, et al., 1986). Usability is
measured by the speed at which a user can accomplish specific task on a site, the number of
errors a user makes when navigating a site, and the overall satisfaction the user expresses with
the site.

Early conducted research on the adoption of computers has shown that the extent of a users
experience with technology has an influences on the attitude and behaviour towards that
technology (Kraemer, Danzinger, Dunkle, & King, 1993; Thomson, Higgins, & Howell, 1994),
more specifically the perceived usefulness of the technology (Venkatesh & Davis, 1996;
Venkatesh, 2000). Since the internet is a comparatively new technology, not all consumers are
equally familiar with it; even when they mostly use it for seeking information rather than online
purchasing (Anckar, 2003; Eurostat, 2004). Furthermore, its particular characteristics and the

58
skills needed to use it will have an impact on how Website users perceive electronic service
quality. For example, a novice may experience greater difficulty in using a site and rate the sites
performance lower than an experienced person. Bruner and Kumar (2000) suggested that the
higher the level of a consumers experience with the Internet, the more positive their attitude
would be towards websites. Similarly, Vrechopoulos, Siomkos, & Doukidis (2001), conducted a
study on Internet adoption in Greece and found that consumers with little familiarity of
purchasing from the Internet, had different attitudes towards an e-shop than frequent e-buyers.

Past research on consumer adoption of online services found perceived ease of use is a critical
antecedent determining the users adoption of new web technology (Pikkarainen, Pikkarainen,
Karjalouoto & Pahnila, 2004; Wu, Chen & Lin, 2007).

The Technology Acceptance Model (TAM) is one of the most widely used models for predicting
and explaining end user behaviour, system use and information technology adoption (King &
He, 2006; Venkatesh & Bala, 2008). In other words, it is used to determine whether a firm or
individual accepts new technology. It is based on the Theory of Reasoned Action (TRA) which
was proposed by Ajzen and Fishbein (19780. The TAM model is an extension of the TRA
model and can be explained by two salient beliefs: perceived usefulness and perceived ease of
use. Perceived usefulness and perceive ease of use are related to the attitude towards acceptance
of the new technology, which, in turn affects a customers acceptance, intention and
consequently, their behaviour. Perceived usefulness and perceived ease of use are considered
instrumental in achieving valued outcomes, and thus reflect the useful aspects of information
technology usage.

Perceived ease of use is defined as the degree to which the prospective user expects or believes
new technologies or systems to be free of effort. Perceived usefulness refers to the prospective
users personal likelihood that the use of the new technology or system will increase or enhance
performance (Davis, 1989). Perceived usefulness assesses the extrinsic characteristics of
technology, such as how technology assists users in achieving task related objectives such as task
efficiency and effectiveness. Perceived ease of use examines the intrinsic characteristics of
technology, such as ease of use, flexibility and clarity of the user interface (Jun & Mohammed,
2007). TAM shows that perceived ease of use has had a direct influence on perceived

59
usefulness. The easier a system is to use, the less effort will be required to accomplish certain
tasks (Kuo & Lee, 2009).

TAM has been tested widely with different samples in different contexts and has proved to be a
valid and reliable model which explains new technology system acceptance (Mathieson, 1991;
Adams, Nelson, & Todd, 1992; Taylor & Todd, 1995; Venkatesh & Davis, 1996; Legris,
Ingham, & Collerette, 2003). Many recent studies have applied TAM when studying the
acceptance if Internet-related technologies, such as email (Gefen & Straub, 1997), web (Chen, et
al., 2002; Kim, et al., 2008; Shin, 2008), virtual store (Chen, et al., 2002; Gefen, Karahanna &
Straub, 2003; OCass & Fenech, 2003) and electronic commerce (Cheng, et al., 2006;; Ahn,
2007; Chu & Lu, 2007; Cyr, et al. 2007;) found that perceived usefulness had a stronger
influence on intention to use and be loyal to online websites. This is supported by Lee (2005),
who agrees that perceived usefulness significantly affects intentions towards an online retailer.

3.4 DESIGN/GRAPHICS

Multi-media capabilities are non-verbal cues or features about the product and services that
enhance a customers feeling of preference for a web site. Graphics, video clips, audio clips and
animation used to demonstrate products are examples. Graphic style is an important service
dimension for retail websites as they can fulfill individuals information needs, create trust and
facilitate a better learning experience (Chen, 2001). Graphic style is defined as the tangible
aspects of the online environment that reflects the look and feel or perceived attractiveness of a
website, which can be the offline equivalent of a traditional retail stores atmosphere (Lohse &
Spiller, 1999), and includes colour, layout, print size, number of photographs, graphics and
animation. Researchers have found that graphic styles influence and have an effect on consumer
perceptions of online shopping, as well as play an important role in attracting, sustaining and
retaining customers at the site (Raney, Arpan, Pashupati & Brill, 2003; Nitse, Parker,
Krumwiede, & Ottaway, 2004). Non-text elements also enhance communication by helping
visitors find or interpret the information presented (Cao, Zhang & Seydel, 2005), however, the
downside to this is that the more multi-media content on the site, the longer the content will take

60
to download. Thus, designers must find a balance between an attractive design and providing
information which is not always easy to read (Huizingh, 2000). Hudson, Keasey & Littler (2000)
state that it is unadvisable to go overboard with elaborate graphics that add no more information
to the website. People may use the same site frequently and initially graphics may seem
impressive when they are first viewed, but quickly become tiresome when they have been
viewed many times over (Hudson, Keasey, & Littler, 2000).

In the context of a mock apparel retail website, Eroglu, Machleit and Davis (2003) found that
aspects of graphic style affected satisfaction with the site and concluded that an aesthetically
pleasing website design may attract customers if it generates pleasurable feelings which are
associated with the online experience. Previous research has found that poor graphic design
elements and presentation styles can confuse and negatively affect consumers willingness to
browse or buy through an online channel (Hoque & Lohse, 1999; Nielsen, 1999. Therefore, the
perceived attractiveness of a website should be positively associated with online service quality
perceptions.

Website design is crucial for online stores (Than & Grandon, 2002). Website design describes
the appeal that user interface design presents to customers (Kim & Lee, 2002). The influence
of website design on e-service performance has been studied extensively. Design refers to the
presentation of a websites content and information, such as simple, clear and consistent layout,
good use of frame, provision of a site map that allows users to skip sections that are of no
interest, clear listed menus and the companys logo presented on each page (which is said to
also enhance branding), proper use of colour, graphics, images and animations, together with the
appropriate size of the web page. The design or appearance of a website is usually the first
determinant observed by the user. Website design must assure a high level of usability, which is
a high degree of ease of use of different elements. As well as text, information is also provided
by appropriate use of graphics. Users do not want to see graphics that they do not need, but they
appreciate the opportunity to download larger pictures and different angles of pictures that they
would want to see (Wolfinbarger & Gilly, 2001).

Elements of visual design deal with balance, emotional appeal, aesthetics and uniformity of the
websites overall graphical look. This included colours, photographs, shapes, or font type

61
(Garrett, 2003). In some research, a relationship between the aesthetic beauty of a website and
trust was established (Karvonen, 2000), while in other studies visual design of the website did
not significantly impact trust (Wang & Emurian, 2005). Furthermore, website aesthetics was
considered related, to the overall enjoyable user experience (Tarasewich, 2003). When a
webpage is designed, one must take into consideration different internet servers, operating
systems, navigators, resolutions and versions.

Colour is a common differentiator by culture and holds different meanings (Barber & Badre,
2001; Simon, 2001). Red means happiness in China but danger in the United States. Users from
collectivist cultures such as China have strong preferences for visuals, whereas users from more
individualistic cultures like Germany prefer a logical and structured page layout (Baron &
Kenny, 1986). In a study that compared Canadian, U.S, German and Japanese users, Japanese
favoured a more visual approach, which also appeals to a users emotions (Cyr, Bonanni, Bowes
& Ilsever, 2005).

Navigation design refers to the navigational scheme used to help or hinder users as they access
different sections of a website (DeWulf, Schillewaert, Muylle, & Rangarajan, 2006; Garrett,
2003). Navigation tools, such as: menus, directories, frames, buttons, site maps, subject trees, a
search engine, image maps and colours (Clyde, 2000) should help users to maintain a mental
map of where they are, and how various sections/pages are related to each other. Hudson et al
(2000) states that it is helpful to have a site map that web site users can use to see the layout on a
particular site and to maneuver around it. Clyde (2000) suggested one way to mitigate this
problem is to include a search engine on the site. Yoon (2002) found navigation design resulted
in website satisfaction. It is expected that for multiple countries, users expect to effectively
navigate a website and in so doing, experience trust and satisfaction.

According to Kotler (1974), atmospheric cues such as colours, graphics and design produce
certain emotional effects on the consumer that enhance purchase probability. In a similar vein,
Ko and Rhee (1994) suggested that displaying products can lure consumers into making impulse
purchases. Montoya-Weiss, Voss & Grewall (2003) found that graphic styles of websites
influence online channel use and overall satisfaction by reducing security risk perceptions.

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Attractiveness relates to whether a webpage is fun to read and individually pleasing. Watson,
Akselsen & Pitt, (1998) coined the concept of attractors. They used the metaphor to label/group
websites into different potential attractors (For example, entertainment parks and clubs). They
argued that the overall appeal is a key component of website quality. No matter how well the
content is portrayed or how reliable and easy the website is to search, if users do not find the site
appealing they wont spend their time there (Smith & Merchant, 2001). Watson, et al. (1997)
also suggested that online users seek gratification in escape, entertainment and interaction, which
suggests that there is a need for web designers to cultivate pleasure in site design by motivating
customers to participate, promoting customer excitement and concentration, and to include
charming features to attract customers and to help them enjoy the visit (Liu & Arnett, 2000).
This will then lead to an increase in customer activities (Schmidt, 1996).

3.5 RELIABILITY

Reliability has proved to be more significant within e-commerce based platforms than in more
generic interfaces, which do not use the Internet as a direct platform for conducting transactions
or sales (Jun & Yang, 2008). Reliability refers to the ability to perform the promised service
accurately and consistently, including: frequency of updating the website, prompt replies to
customer enquiries, and accuracy of online purchasing and billing, prompt deliveries and keeping
personal information secure (Parasuraman, et al., 1988; Van Riel, Semeijm & Janssen, 2003;
Janda, Trocchia & Gwinner, 2002; Kim & Lee, 2002; Lee & Lin, 2005). For companies that
offer online shopping facilities, the accuracy of online purchasing and billing is important. This
element is noted by Yang (2001) as being a determinant of reliability for online service quality.
The importance of reliability has been emphasised by the information technology-based service.
Moreover, Zhu, Wymer and Chen (2002) argued that reliability dimension has a direct positive
effect on perceived service quality and customer satisfaction. Online stores must provide
mistake-free services and secure online transactions to make customers feel comfortable using
online shopping (Lee & Lin, 2005).

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Availability refers to the extent to which the services provided by the website can be obtained
and used, and the correct technical functioning of the site ,Parasuraman et al., 2005). This
dimension deals with the extent to which online information resources are equipped for
providing customers with the wanted products/services that are easy to locate. These services
also take the difficulty out of linking web pages, and facilitate the making of purchasing
decisions (Jeong & Lambert, 2001; Madu & Madu, 2002). However, according to Fram and
Grady (1995), technical software issues are problems related to purchasing on the internet. When
consumers use a website for browsing or purchasing, functional problems such as missing links
and non-working buttons leads to frustration and exiting from the site (Fram & Grady, 1995),
and as a result the online retailer looses a valuable opportunity to build customer loyalty
(Wachter, 2002). According to Santos (2003), the avoidance and elimination of broken links and
links to websites that no longer exist or that are under construction are related to total e-service
quality.

The variety of information and the comprehensiveness of its coverage are considered to be
primary indicators (Wan, 2002). One of e-commerce challenges on the web is when users
experience intolerably long waits for a websites page to load. Researchers have studied the
significance of waiting time in service evaluations of websites (Roslow, Nichollas, & Tsalikis,
1992) but Weinberg (2000) concludes that in terms of the waiting time on the internet, it is best
if the homepage loads relatively fast, and that efforts exerted towards achieving this will be
rewarded.

Delivery fulfillment refers to a websites success in delivering products/services and its

willingness to correct mistakes that occur during transactions. It overlaps to some extent with
the reliability dimension of Zeithaml, et al. (2002b), which has been identified as an important
factor in e-service quality. Wolfinbarger and Gilly (2003) places emphasis on error-free ordering
process and on-time delivery of an order for online customers. A website that makes an effort to
minimise the dissatisfaction with the services provided will receive a higher level of quality
evaluation from its customers. Fulfillment is one of the most crucial factors related to judgments
concerning the quality of an online site (Wolfinbarger & Gilly, 2003).

According to Zeithaml, et al. (2002a), having products in stock, delivering the products within
the time frame promised, and the accuracy of service promises are incorporated into this

64
dimension and are of importance. Yang and Fang (2004) indicated that accurate order fulfillment
and keeping service promises are primary service quality elements which lead to customer
satisfaction and dissatisfaction. Research conducted by Kim and Lennon (2004) showed that
when shoppers are notified about stock that has sold out after selecting an item to purchase, they
exhibit stronger negative emotions and lower purchase intent than when notified before the
selection. Lee & Lin (2005) have ascertained that reliability has a direct positive effect on
perceived service quality and customers satisfaction.

3.6 SECURITY/PRIVACY

This dimension deals with how a website proves to be trustworthy for its customers. Trust is a
commonality within the security/privacy dimension and is based primarily in industries using e-
commerce platforms that incorporate online transactions (Van Riel, et al., 2003). The privacy
dimension is defined as the degree to which the site is safe and protects customer information
(Parasuraman, et al., 2005). The issue of privacy has been a critical issue in online retailing and
consumers are very weary in this regard due to the dangers and risks of releasing personal
information to unknown sources (Van Riel, et al., 2003; Sharma & Sheth, 2004). As a result of
risk-related misuse of personal information, many people are still unwilling to purchase products
from the Internet and due to these heightened concerns with privacy, online retailers are now
more aware of the importance of providing consumer privacy policies (Ranganathana &
Ganapathy, 2002). The security/privacy dimension has been rated most critical when influencing
non-purchasers perceptions of service quality and has also been shown to have a strong impact
on a customers intention to purchase (Loiacono, et al., 2002; Van Riel, et al., 2003), satisfaction
(Szymanski & Hise, 2000), and over all site quality (Yoo & Donthu, 2001). While security
addresses the technical specifications of a websites security and payment methods, this
dimension also incorporates company reputation, confidence and general confidentiality among
consumers and those operating from within the company, engaging in the communication
process (Shaohan & Minjoon, 2003; Van Riel, et al., 2003).

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Trust has been labeled as a fundamental ingredient of the relationship between a seller and a
buyer (Gounaris, Dimitriadis & Stathakopoulos, 2005). This dimension is defined as
trustworthiness, believability and honesty of the service provider and alludes to the idea that
the online party will behave with integrity and will fulfill its promises (Jun, Yang, & Kim,
2003). Trust is believed to set the tone in the consumers mind around the reliability of the
companys website, privacy and security issues, the brand name, customer relationships and
loyalty, company reputation and ultimately the performance of the company. Consumers are
highly concerned about the levels of privacy, security and anonymity within the online
environment, and when the principles of a company with regards to this are not clearly
announced, consumers become increasingly weary (Jun & Yang, 2008). Madu and Madu (2002)
suggest that online services are delivered and operated in a highly reliable and dependable
manner in order to build trust and convey confidence to customers. However, due to the lack of
a physical entity and interpersonal contact while purchasing online, customers are especially
concerned with the transactions safety (Gounaris, Dimitriadis & Stathakopoulos, 2005).
Consumers cannot be sure as to the existence, credibility and trustworthiness of the company
behind an online interface, especially when brand awareness around the company is low as it can
play an important role in mitigating issues around trust and security.

Privacy has received considerable academic attention in online retailing (Yoo & Donthu, 2001;
Loiacono, et al., 2002; Madu & Madu, 2002). Although privacy and security have been found
by some not to influence perceptions of website quality significantly (Wolfinbarger & Gilly,
2003) or satisfaction with a website (Kim & Stoel, 2004), there has been much research that does
support the importance of security/privacy in online retailing (Barnes & Vidgen, 2000;
Szymanski & Hise, 2000; Ranganathan & Ganapathy, 2002; Santos, 2003). Security is
perceived to be a critical dimension in terms of service quality or satisfaction, and is unique to
the Internet environment (Szymanski & Hise, 2000; Yoo & Donthu, 2001). A lack of assurance
of security has been regarded as the main barrier preventing customers from shopping online as
was also found by Ranganathan and Ganapathy (2002), where privacy and security were found
to have a significant impact on purchase intent. Moreover it has been proven that trust in the
company and the e-service quality environment positively influences both service quality as a
whole and customer satisfaction (Lee & Lin, 2005).

66
Security also refers to the attributes of privacy that are imperative for making transactions online
(Zeithaml, et al., 2002b). Customers may worry that their personal and transactional information
can be accessed or used over the Internet by third parties and this has been shown as major
consumer concerns in previous studies (Hoffman, Novak, & Peralta, 1999). Privacy is a theme
that has been picked up by a variety of authors such as Zeithaml, et al. (2002b) and they describe
privacy as one of the key dimensions that consumers use to evaluate the quality of a website (or
quality of e-service). In a similar vein, Stewart and Pavlou (2002) recognised concerns about
privacy/security as being crucial for thinking about the effectiveness of interactive media
(Parasuraman & Zinkhan, 2008). The ease of use of a website will affect a users intention in
spite of a perceived increase in risk (Stem, Royne, Stafford & Bienstock, 2008). For example, to
protect a users password from not being stolen, a company may ask users to set their password
by mixing numerals and letters, in addition to changing their password regularly. This may
however, increase the difficulty for users and deter their use intention (Arning & Ziefle, 2007;
Hasan & Ahmed, 2007).

There is much academic discourse surrounding security, promise fulfillment, and confidence
(Lynch & Lundquist, 1996; McCole, 2002; McKinsey & Co, 2002). Wilson (2000) found that
many consumers consider that lack of security is the main inhibiting factor to adopting online
purchase behaviour. Studies suggest that e-buyers trust is based upon their confidence in the
relationship with the exchange partner (Morgan and Hunt, 1994; Urban, et al., 2000). Online
retailers should stress the importance of the security and privacy concerns along the commercial
transactions (Torkzadeh & Dhillon, 2002; Ranganathan & Ganapathy, 2002). Thus, it is natural
to conclude that security is a crucial component of quality when considering online transactions.

3.7 INTERACTIVITY/PERSONALISATION

Interactivity relates to how the website responds to their customers in an online environment
(Kaynama & Black, 2000; Madu & Madu, 2002; Zeithaml, et al., 2002a). For example, how
queries or questions from customers are answered; be it quickly and efficiently. How can

67
customers needs and complaints be responded to via e-mail in a courteous way?
Responsiveness can be defined as effective handling of problems and returns through the site
(Parasuraman, et al., 2005), as well as the willingness to help online customers. It can be
measured by the time taken before replying to a customers inquiry (Watson, et al,, 1998).
Responsiveness measures online retailers ability to provide appropriate problem solving
information to customers, having mechanisms for handling returns and providing online
guarantees. Advances in the internet and computer technology leave little excuse for any delay in
responding (Wan, 2000). Wan (2000) believes the issue of responsiveness can be seen in two
ways: load time and search time. Search time mostly relies on the size of a database. Load time
can be a problem, and most designers take this into consideration when designing web pages.
Responsive website proves to be highly important to end-users and consumers expect online
stores to respond to their inquires promptly (Robbins & Stylianou, 2003). Responsiveness
describes how often an online store voluntarily provides services that are important to its
customers (Parasuraman, et al., 1988; Yang, 2001; Kim & Lee, 2002).

Loiacono, et al. (2005) found that interactivity also predicts intentions and that it creates a
dialogue between the customer and the website. Interactivity can be defined as the extent to
which users can participate and modify the form and content of a mediated environment in real
time (Steuer, 1992:84), and keeping customers informed and communicating with them in a
language in which they understand (Santos, 2003). In other words, the extent to which a website
can tailor-make services to fit individual customers needs or the extent to which the customised
content of the website can provide a user with the relevant and up-to-date information that will
meet the specific needs. This customisation dimension could involve individual designs for
clients in accordance with their pattern of consumption and preferences which also results in an
optimum online service, saves the customer time and increases their perception of service quality
(Madu & Madu, 2002; Srinivasan, Anderson, & Ponnavolu, 2002). As well as activities such as
e-mail, live customer services are available through chat, co-browsing and page pushing, as well
as conventional channels such as telephone, fax and postal communications (Santos, 2003;
Shaohan & Minjoon, 2003).

There is a lack of real-time interaction in the e-service environment. Personalisation or

customisation results in media that better creates a virtual experience and stronger attitude; in

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addition, interactivity and vividness are strong predictors of telepresence, an antecedent of flow,
productivity and satisfaction (Coyle & Thorson, 2001; Mathwick & Rigdon, 2004). Examples of
personalisation could involve sending post purchase e-mails and creating a personalised
interactive environment online for each individual customer. Other aspects of personalisation
involve means of customer interaction such as message boards and customer hotlines (Lee &
Lin, 2005).

Personalisation is becoming more important to online service quality. Personalisation can be

understood as the empathy dimension of SERVQUAL (Zeithaml, et al., 2002a). Giving
customers personal attention, understanding the specific needs of customers, and providing
service related to convenience can be considered as personalisation. Another aspect of the
importance of information to customers involves the interactivity of some e-commerce sites. For
instance, when making plane reservations, online buyers feel that they can more fully investigate
options than they can offline. In addition, information can be printed out and saved, something
that cannot be done based on a phone conversation with a travel agent (Wolfinbarger & Gilly,
2001).

The lack of real time interaction tends to prevent potential customers from purchasing through
online shopping (Yang & Jun, 2002). Personalisation involves individualised attention, personal
thank you notes from online stores, and the availability of a message area for customer questions
or comments (Yang, 2001). Previous studies have examined the influence of the customer
service provided by internet retailers on customer perceptions of service quality and satisfaction
(Wolfinbarger & Gilly, 2003), however it has been found that personalisation in an online
environment does not significantly increase overall e-service quality or customer satisfaction
which has been linked to the fact that people are wary of providing personal information online
for fears of it being used elsewhere. This has severely reduced the possibilities for
personalisation as increasing levels of personalisation will be seen without high levels of trust
(Lee & Lin, 2005). Table 3.1 below is illustrates the criteria which consists of particular points
for each dimension that should be adhered to in order to have a successful website in the airline
industry.

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 Table 3.1: Electronic service quality dimension criteria

Information Accurate

Timely

Current

Precise

Complete

Conscience

Relevant

Understandable

Meaningful

Reliable

Easily comparable

Value adding

Well presented

Accessible

Ease of Use High usability (easy to use)

Easy to connect

Easy to download

Speedily downloads

Simple

User friendly
- Easy ordering, payment & cancellations

Free of effort to use/navigate

Easy navigation within website

- Locate merchandise & information

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Design Graphic style
- Look and feel of the website

Aesthetically pleasing
- Colour
- Layout
- Print size
- Photographs
- Animation

Presentation of content and information

Reliability Performing promised service

- Accurately
- Consistently

Frequent updating of website

Prompt replies to customer enquiries

Mistake free service

- Accurate online purchasing & billing
- Correction of errors

Delivery fulfillment (prompt delivery)

Ensuring links & buttons function correctly

Security/Privacy Promote security and privacy

Provide secure security & payment methods

Operate reliably and dependably

Provide assurance and confidentiality

Be trustworthy, believable & honest

Protect customers information

Provide customer privacy policies

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Interactivity/Personalisation Responsive
- Quickly and efficiently responding to customers in an
online environment (generate online dialogue)

Communicating with customers to keep them informed in a

language that they understand

Tailor make services to fit customers individual needs

- Individual designs
- Personalisation of customers results
- Convenient service

3.8 CONCLUSION

Chapter three further elaborated on the six electronic service quality dimensions (information,
design, ease of use, reliability, security/privacy & interactivity/personalisation). If a website
wishes to be a success, they must ensure that all six of these dimensions are present for their
customers. There have been various studies conducted on electronic service quality that
emphasise that dimensions are important in one way or another. It is also important to note that
of the six dimensions, some could be deemed more relevant and important depending on the
industry. For the purpose of this study, elements deemed important and applicable in the airline
industry for each particular electronic service quality dimension, have been identified and
illustrated in Table 3.1.

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 CHAPTER 4

RESEARCH METHODOLOGY

4.1 INTRODUCTION

The previous chapter discussed the Service Quality Model and quality dimensions. This chapter
presents the research design followed, the hypotheses and the selection of the research
instrument used; its reliability and validity, sample choice, pilot study, data collection, response
rate and the analysis and interpretation of data collected.

4.2 RESEARCH METHODOLOGY

Science is defined by the Websters Comprehensive Dictionary as Knowledge as of facts,

phenomena, laws, and proximate caused, gained and verified by exact observation, organised
experiment, and correct thinking; also, the sum of universal knowledge. And also as an exact
and systematic statement or classification of knowledge concerning some subject or group of
subjects (Websters comprehensive dictionary, 1998:1127). Neuman (2000) added a dimension
by stating that science refers both to a system for producing knowledge and to the knowledge
produced from that system. This system has evolved over many years and is slowly but
constantly changing. It combines assumptions about the nature of the world and knowledge, an
orientation towards knowledge, and sets of procedures, techniques and instruments for gaining
knowledge. The outcome of scientific research, namely, scientific knowledge can be defined as
the body of propositions (factual statements, hypotheses, models, theories, laws) which, at a
specific time, is accepted by the scientific community as being valid and reasonably correct
(Mouton, 1996).

There are two main research paradigms used in academic research, namely the positivistic and
the phenomenological paradigm. The positivistic approach, also known as quantitative,
objective, scientific, experimentalist and traditionalist approaches, consists of establishing a
relationship between one or more variables, and then link the identified variables to theory, or

73
the findings of the empirical research (Collis & Hussey, 2003; De Vos, Strydom, Fouche, &
Delport, 2005). In terms of the quantitative approach, hypotheses are formulated about the
relationship/s between the variables. Data about these variables is collected through methods
such as questionnaires, focus groups, interviews, case studies and experiments (Dayan, 2003).
The relationships between the variables are measured by means of statistical methods such as
multiple regression analysis, structural equation analysis and correlation analysis (Struwig &
Stead, 2001)

The phenomenological paradigm, also known as qualitative, subjectivist, humanistic and

interpretivist approaches, is concerned with the understanding of human behaviour from the
participants own frame of reference, in other words, the study attempts to understand peoples
perceptions, perspectives and understanding of a particular situation or reality within them, and
therefore the act of investigating the reality has an effect on that reality. This qualitative
approach stresses the subjective aspects of human activity by focusing on the meaning, rather
than the measurement of a phenomenon (Collis & Hussey, 2003). Qualitative research methods
used under this approach are an array of interpretative techniques which seek to describe,
translate and otherwise come to terms with the meaning, not the frequency of certain more or
less naturally occurring phenomena in the social world (Van Maanen, 1983: 9). Qualitative
research concerns itself with approaches, such as ecological psychology, symbolic interactionism
and postmodernism, and employ statistical methods, such as observation, archival source
analysis, interviews, focus groups and content analysis (Struwig & Stead, 2001).

The research objective of this study was to identify and investigate the dimensions of service
quality in an online context and to try to understand how these dimensions could contribute to
customer satisfaction and behavioural intent. The two above mentioned research paradigms were
taken into consideration and the positivistic or quantitative approach was selected.

The methodology of this study is concerned with the following six main issues, namely: why
certain data was collected, what data was collected, from where was the data collected, when the
data was collected, how the data was collected and how the data will be analysed.

why certain data was collected: specific data was collected to address the studies research
objectives

74
 what data was collected the data collected was the respondents personal assessment or
rating of their chosen airlines website
from where the data was collected the data was collected from distributed
questionnaires (hardcopy and electronic copy) that were tested for reliability and validity,
as well as also ethically cleared by the Nelson Mandela Metropolitan University Ethics
Committee
when the data was collected data was collected during the months of September
November 2010
how the data was collected hard copies of the questionnaire were printed and
distributed to willing individuals (passengers) at the Port Elizabeth International Airport,
who were waiting to board their flight, to business individuals who fly regularly for work
purposes, as well as to individuals who are in the travel and tourism industry
how the data will be analysed the data collected will be analysed by way of statistical
analysis with the aid of the SPSS software program.

4.3 PILOT STUDY

The amended questionnaire was piloted to test for reliability and validity and was circulated to
20 individuals who included Nelson Mandela Metropolitan University MBA students, as well as
individuals known by the researcher who had recently purchased an airline ticket via an airlines
website. An e-mail was circulated with the help of Mrs. Luella Van Wyk the MBA course
coordinator at the NMMU Business School to MBA students. The e-mail had a brief message
requesting students who met the studys criteria to take a few minutes to complete the attached
questionnaire. Attached to the e-mail the students found a Microsoft Word and Adobe PDF
version of the questionnaire and were encouraged to make use of the version which best suited
them. For example, respondents who opted to make use of the Word document highlighted their
answers and returned the completed questionnaire and returned it to the researcher via e-mail.
The data collected from the 20 respondents was then entered into an Microsoft Excel spreadsheet
and calculations were conducted with the use of the SPSS software.

75
The reliability of the questionnaire was tested by the calculation of its Cronbach alpha
coefficients. The following Cronbach alpha coefficients were returned (also presented in Table
4.1), namely; information (0.91); design (0.92); ease of use (0.93); security/privacy (0.90);
interactivity/personalisation (0.75); reliability (0.89); satisfaction (0.98); and behavioural intent
(0.86). A few respondents who took part in the pilot study freely supplied some friendly
feedback on the questionnaires. The main topic that was highlighted was that it seemed as if
some of the questions asked the same thing, however in a different way. The researcher was
well aware of this fact, yet, in light of the Cronbach alpha results the amended measuring
instrument produced, did not feel that any further amendments were required.

Table 4.1: Pilot study reliability results

Dimension Alpha Mean Std Deviation

Information 0.913 27.31 5.54

Design 0.925 28.73 6.64

Ease of Use 0.933 29.21 6.47

Reliability 0.891 39.47 8.34

Security / Privacy 0.900 28.95 5.58

Interactivity / Personalisation 0.750 24.00 5.12

Satisfaction 0.982 24.36 5.57

Behavioural Intention 0.869 27.55 5.46

4.4 THE MEASURING INSTRUMENT

During the literature review, various measuring instruments were researched and reviewed.
However, in light of the nature of this study only one was found to be appropriate for use and

76
that was the NetQual measuring instrument, constructed to measure online service quality
created by marketing Professor Gregory Bressolles at the Bordeaux Management School in
France. The original NetQual instrument is made up of multiple scale items of which reliability
and validity were found to be high in numerous studies (Bressolles, 2006; Guertin & Nantel,
2007). The original questionnaire contained two sections. Section one comprised of 31
questions, which addressed the service quality dimensions, namely; information, design, ease of
use, security/privacy, interactivity/personalisation, reliability and satisfaction. Responses were
measured on a five-point likert scale ranging from 1=Strongly Disagree to 5= Strongly Agree.
Section two comprised of 15 questions that addressed and gathered various information on the
respondents internet and online purchasing behaviour, as well as other personal information,
such as gender, age, profession, marital status, nationality and annual income. Respondents were
requested to select the option which was most applicable to them.

Due to the nature of the study, various elements in the original questionnaire were not thought to
be applicable, such as offer, customer value and past experiences on a site, and were therefore
removed. A further dimension of buying intention was added. Each dimension varied with the
amount of questions it contained and on some valuable advice from her supervisor the researcher
ensured that each dimension contained at least eight questions. For the most part, this was
achieved, apart from the seventh dimension of buying intention of which there were only seven
questions and the satisfaction dimension of where two questions were added totalling six
questions for the satisfaction dimension. Section one of the amended questionnaire comprised of
64 questions which addressed the service quality dimensions, namely; information, design, ease
of use, security/privacy, interactivity/personalisation, reliability, satisfaction and behavioural
intention. Responses were measured in an anchored five-point likert scale ranging from
1=Strongly Disagree to 5= Strongly Agree. Respondents who fulfilled the studys criteria were
asked to indicate on the questions below the extent to which they honestly agreed or disagreed
with each statement, which addressed various elements related to website quality.

The amended section two was made up of eight questions that addressed and gathered various
information on each respondents internet and online purchasing behaviour, as well as very
limited personal information, such as gender, age, profession, marital status and education level.

77
Respondents were requested to select the option which was most applicable to them. The
amended measuring instrument is attached as Appendix A.

Table 4.2 illustrates the questionnaire items which were kept from the original NetQual
questionnaire, which items were adapted / modified from other studies, and the items that were
created by the researcher and her supervisor for this study.

Table 4.2: Amended NetQual questionnaire

Dimension Question Original/New Adapted / Modified

from:
item
Information This site provides detailed information about original item
the product/s or service/s offered

The information on this site is relevant original item

The information on this site is precise original item

The information on this site fulfils my needs original item

The information on this site is easy to original item

understand

The information on the site is easy to find new item Parasuraman, Zeithaml,
Malhotra, 2005
(modified)
The information on the site is always available new item

The information on the site is consistent new item Park & Kim, 2003

Design This site shows creativity original item

This site offers good illustrations of the original item

products (or services sold)

This site is visually attractive original item

The design is appropriate for this type of site original item

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 Dimension Question Original/New Adapted / Modified
from:
item
The user interface on the airline website has a new item
well-organised appearance

It is simple, easy and quick] to complete a new item Parasuraman, et al., 2005
transaction on the website

The site is pretty new item

The site is colourful new item Yoo & Donthu, 2001

Ease of Use This site is easy to use original item

It is easy to search for information on this site original item

It is easy to navigate and to find what you are original item

looking for on this site

The organisation and layout of this site makes it original item

easier to search for information

The layout of the site is clear and simple original item

It is easy to access the results of my search new item Guertin & Nantel, 2007

I can complete my transactions quickly new item Parasuraman, et al., 2005

The site enables me to get onto it quickly (loads new item Yoo & Donthu, 2001
fast) (modified)

Security/ I trust the overall security of the site original item

Privacy

This site offers functionality which makes it original item

more secure

I think that my private life and my financial original item

information are protected on this site

I trust this site not to misuse my personal original item

information

The site protects information about my new item Chiu, Chang, Cheng &
shopping behaviour Fang, 2009

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 Dimension Question Original/New Adapted / Modified
from:
item
The site provides detailed information about new item Park & Kim, 2003
security

I am afraid that my private information will be new item Park & Kim, 2003
used in an unwanted manner

I feel confident that goods/ services will be new item Parasuraman, et al.,
delivered as promised 2005(modified)

Interactivity / I can interact with this site to receive original item

Personalisation personalized information

This site has interactive functions which help original item

me to navigate

This site records my preferences and offers me original item

extra services or information based on these
preferences
I can contact the company easily through this original item
site

I have fun when interacting with the website new item Chiu, Chang, Cheng &
Fang, 2009

The website offers the ability to speak to a live new item Chiu, Chang, Cheng &
person if there is a problem Fang, 2009

The website tells me what to do if my new item Chiu, Chang, Cheng &
transaction is not processed Fang, 2009

The website has customer service new item Chiu, Chang, Cheng &
representatives available online Fang, 2009

Reliability This site provides information about delivery original item

dates

This site gives indications of product original item

availability (quantities in stock)

This site offers several types of delivery original item

This site explains the stages of the order process original item
in detail

This site provides the contact details for original item

customer services (e-mail, phone)

The information on the website is reliable new item

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 Dimension Question Original/New Adapted / Modified
from:
item
I feel safe logging on the website new item

The website is available for business new item Parasuraman, et al., 2005

The website launches and runs straight away new item Chiu, Chang, Cheng &
Fang, 2009

The website does not crash new item Chiu, Chang, Cheng &
Fang, 2009

The website has adequate security new item

Satisfaction Would you say that overall this site? original item

Would you recommend this site to a friend? original item

Would you like to visit the site again in the original item
future?

Would you like to purchase from this site original item

again?

I am satisfied with the product[s] and service[s] new item Guertin & Nantel, 2007
offered on this site

I strongly recommend that others use the online new item

website

Buying Intention If I could, I will continue using the website to new item Chiu, Chang, Cheng &
purchase product/s and service/s Fang, 2009

It is likely that I will continue to purchase new item Guertin & Nantel, 2007
products from the website in the future.

I intend to continue purchasing products from new item Guertin & Nantel, 2007
the website in the future

I will visit this website when I want to compare new item Dr. Oren Dayan, 2010
prices

I will visit this website when I want to purchase new item Dr. Oren Dayan, 2010
air tickets

I will consider this website to be my first choice new item Dr. Oren Dayan, 2010
for future transactions

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 Dimension Question Original/New Adapted / Modified
from:
item
I will do more business with this site in the new item Dr. Oren Dayan, 2010
coming months

4.5 RELIABILITY OF THE MEASURING INSTRUMENT

Reliability is concerned with the findings of the research and if the research findings can be
repeated, it is then considered to be reliable (Collis & Hussey, 2003). There are three common
methods used to test for reliability of questions in questionnaires, namely: the test re-test method,
the split-halves method and the internal consistency method.

4.5.1 Test re-test method

To determine the test re-test reliability of a measuring instrument, a single instrument is
developed and administered to members of a sample group on two or more occasions, with a
reasonable period of interval between the occasions. If the instrument is consistent, it will return
the same results and is then said to have test re-test reliability. The time that lapses between the
administrations should be long enough to ensure that respondents do not remember or cannot re-
call their initial answers given, however it should not be too long as to prevent any real and
permanent changes from taking place that will affect the measurement of the attribute (Welman,
Kruger, & Mitchell, 2005).

4.5.2 Split-halves method

To determine the split-halves reliability of a measuring instrument, a single instrument is
developed and then divided into two equal halves. Each half is administered to the same group
on different occasions and the scores of one half of the test are correlated with the scores for the
other half of the test. When the correlation coefficients are calculated and analysed, and the two
halves correlate highly with each other, the instrument is then said to have split-half reliability
(Welman, et al., 2005).

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4.5.3 Internal consistency method

Internal consistency is the extent of an instrument and the different items within that instrument
to measure the same variables. Every item was correlated with every other item across the entire
sample, and the average inter-item correlation was taken as the index of reliability. To determine
the reliability of a measuring instrument by using the internal consistency method, the test was
administered only once to a large representative sample. Data was analysed with Cronbachs
coefficient alpha, which is a measure of the internal consistency of a measuring instrument. The
purpose was to show the degree to which all items in the measuring instrument, measured the
same attribute. Although this approach is a popular method, the reliability of the results, where
questions have been used as the basis of the data collection method, requires substantial
computing facilities and software (Collis & Hussey, 2003; Welman, et al., 2005).

4.5.4 Cronbach Alpha Coefficient

Cronbachs Alpha Coefficient measures the reliability of an instrument. Reliability can be

expressed in terms of stability, equivalence, and consistency. Unlike other methods used to
determine stability, only a single test is needed for estimating internal consistency. Cronbach
Coefficient Alpha is a measure of squared correlation between true scores and observed scores

(Yu, 2001). The value of Alpha (can range from 0 and 1 and the closer Alpha is to 1, the
higher the internal consistency (Sekaran, 2003). The Cronbach Alpha Coefficient was used to
calculate the internal consistency of the measuring instrument in the present study.

4.6 VALIDITY OF THE MEASURING INSTRUMENT

Validity is the extent to which the research findings accurately represent what is really happening
in the situation, or if the data collected is a true picture of what is being studied. Positivistic
studies focus on the correctness of measurement and the ability to be able to repeat an
experiments outcome. So, if errors occur such as, faulty research procedures, poor samples and
inaccurate or misleading measurement occur, validity will then be low (Collis & Hussey, 2003).
Validity has two aspects: the instrument actually measures the concepts in question, and the

83
concept is measured correctly (De Vos, et al., 2005). There are various ways in which validity
can be measured and include, content validity, face validity, criterion validity and construct
validity.

4.6.1 Content validity

Content validity is concerned with the representativeness of the content of an instrument (De
Vos, et al., 2005), in other words content validity ensures that the items on/in the measuring
instrument fit or match with the aims or objectives of the study. According to Monette, Sullivan
and DeJong (2002), it has to do with whether the measuring instrument covers the full range of
meanings or forms that would be included in a variable being measured. In other words, a valid
measuring instrument would provide an adequate, or representative, sample of all content, or
elements, or instances of the phenomenon being measured (DeVos, et al., 2005). For the purpose
of this study content validity was used.

4.6.2 Face validity

Gravetter and Forzano (2008) suggested that face validity is the simplest and least scientific
definition of validity and it is concerned with the superficial appearance or face value of a
measurement method. Methodologists claim that face validity is not technically a form of
validation, since it does not refer to what an instrument actually measures but rather to what it
appears to measure, in other words it appears relevant to those who will complete or administer
it. Therefore, it is important to structure the measuring instrument so that it not only accurately
measures the attributes under consideration, but also appears to be a relevant measure of those
attributes (De Vos, et al. 2005). According to Gebeshuber (2008) there are certain elements that
enhance the measuring instruments face validity namely; correctness of language and grammar,
avoidance of unnecessary technical errors and ensuring that the measuring instrument is
professionally presented and reflects the subject matter under investigation. For the purpose of
this study face validity was used.

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4.6.3 Criterion validity

Criterion validity provides more objective evidence of validity (De Vos, et al., 2005). This
method involves comparing the results from the developed research instrument with other
research instruments used in previous studies that are known to measure the same concept being
studied. It is essential in this approach to validation that there be one or more external or
independent criteria against which the scores can be compared. If the same or similar results are
achieved when compared to the external criteria, then the instrument is said to have criterion
related validity.

4.6.4 Construct validity

Construct validity is perhaps the most difficult validity to establish because it involves
determining the degree to which an instrument successfully measures a concept or idea. It is
concerned with the meaning of an instrument, for example, what it is measuring and how and
why it operates the way it does. It involves not only validation of the instrument itself, but also
the validation of the underlying theory (De Vos, et al., 2005). To establish construct validity, the
meaning of the construct must be understood and that all items in the instrument taken together
are explicitly based on one or more theoretical frameworks that underpin the subject matter of
the investigation.

4.7 INTERNAL RELIABILITY OF MEASURING INSTRUMENT

Table 4.3 below shows the measuring instrument Alpha Coefficient values for the pilot study and
post pilot study. The lowest score returned was for the interactivity/personalisation dimension
and was 0.84. The Information dimension produced and Alpha Coefficient of 0.92; the design
dimension produced and Alpha Coefficient of 0.88 which is lower than the pilot study value of
0.92. The ease of use dimension returned an Alpha Coefficient of 0.91; the security/privacy
dimension returned an Alpha Coefficient of 0.89; the reliability dimension returned an Alpha
Coefficient of 0.87 and lastly; the satisfaction dimension returned an Alpha Coefficient of 0.89.

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 Table 4.3: Cronbach Alpha Coefficient values of measuring instrument

Measuring Instrument Dimensions Pilot study values Post pilot study values

information 0.91 0.92

design 0.92 0.88

ease of use 0.93 0.91

security/privacy 0.90 0.89

interactivity/personalisation 0.75 0.84

reliability 0.89 0.87

satisfaction 0.86 0.95

behavioural intent 0.98 0.89

The concepts of reliability and validity are important to understand and observe in the
development and the administration of an instrument, as the results of research can be rendered
useless and meaningless if the instrument used for data collection is not valid or reliable (in-text).

Table 4.4: Reliability results of distributed questionnaire

Dimension Mean Std Deviation Alpha Standardised Inter-Item

Alpha correlation

information 31.54 5.75 0.920 0.916 0.583

design 29.40 5.60 0.883 0.887 0.501

ease of use 34.25 6.42 0.913 0.915 0.552

reliability 40.58 7.34 0.870 0.878 0.405

security / 29.00 5.91 0.887 0.887 0.507

privacy

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 Dimension Mean Std Deviation Alpha Standardised Inter-Item
Alpha correlation

interactivity / 25.48 5.98 0.844 0.845 0.409

personalisation

satisfaction 24.23 4.92 0.953 0.954 0.782

behavioural 27.64 5.28 0.888 0.891 0.546

intent

4.8 DATA COLLECTION

Data collection was carried out in the form of a questionnaire survey addressing the electronic
service quality of airline websites. The pilot study testing was accomplished by administering
the questionnaire to MBA academics as well as individuals who were known to have recently
made use of an airlines website to book their ticket. Results obtained from the pilot study were
highly favourable, however, minor changes were made to the instructions given to the
respondents.

4.8.1 Sample

Based on the airline industries size and the entire passenger airline population, which according
to Flight International (2004) comprises of approximately 1 200 airlines, the sampling method
selected for the purpose of this study was stratified sampling. Stratified random sampling is
suitable for heterogeneous populations because it ensures the inclusion of smaller subgroups
(Van der Walt, 1984). Stratification consists of the population being divided into a number of
strata which are mutually exclusive, and the members of which are homogeneous with regard to
some characteristics such as gender, language and age (Glicken, 2003; Mitchell & Jolley, 2001).
Stratified sampling overcomes the problem of some members of the population being over-and
underrepresented (Collis & Hussey, 2003). The main advantages of stratified sampling include
that all essentional sub-groups are included in the investigation, it is time-saving , fewer people
are required to participate in the study, as well as it being directed towards particular georaphical
87
locations and individuals available. Sampling is cost effective as less time and fewer people are
required to collect and analyse data.

4.8.2 Questionnaire distribution

The amended questionnaire was distributed to 185 respondents in total. Questionnaires

distributed at the Port Elizabeth International Airport were collected over the course of one day.
The handouts distributed to various parties, respondents at FNB, ABSA, Flight Center and
Virgin Active were collected over the course of four days. Online requests and friendly
reminders to relatives and friends were sent out via e-mail during the months of October and
November. Questionnaires had to be distributed by hand and electronically to individuals as
previous methods to obtain respondents were unsuccessful. Refer to figure 4.1.

Questionnaire Distribution
0%
8%
26%
Port Elizabeth Airport [122]
66% Online Questionnaires [48]
Printed Questionnaires [15]

Figure 4.1: Questionnaire distribution

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4.9 DEMOGRAPHIC DATA

Table 4.5 presents the demographic characteristics of the study sample. The sample population
had more females (52.43%) than males (47.56). The ages of the respondents ranged from 18 to
65+ years old and the largest category was from 25 34 years of age (36.21%), followed closley
by the catecory of 34 44 years of age which had a response of 32.43%.

With regard to respondent profession, 34.07% were currently in lower management, 27.37% of
respondents were retired and 18.99% of respondnets were staff. Six respondents did not indicate
their current profession. Education was the next category, and 35.13% of respondents had
completed their doctorates, 27.56% had completed their undergraduate studies, and 18.9% of
respondents had completed high school.

Of the total sample, 36.21% were single living with a child/children, and 23.78% of respondents
were living with their partner and child/children. 35.67% of respondents were currently residing
with their partners, while 4.32% of the respondents were presently single.

Table 4.6presents the respondents online activity data. 84.54% of respondents reported that they
had made use of the Internet for longer than five years, while 28.26% reported making purchases
over the Internet for the last four to five years. 23.91% reported making purchases over the net
for five to eight years, and 21.73% said that they had been making purchases online for over
eight years. One respondent did not indicate if, or for how long they had made use of the
internet to make any purchases online.

Table 4.5: Characteristics of study sample

Demographic Variable Category Number Percent %

Gender Male 88 47.56

Female 97 52.43

Missing 0 0

89
Demographic Variable Category Number Percent %

185 100 %

Age Under 18 0 0

18 24 7 3.78

25 - 34 67 36.21

34- 44 60 32.43

45 - 54 29 15.67

55 - 64 19 10.27

65 and over 3 1.62

Missing 0 0

185 100 %

Profession Staff 34 18.99

Lower management 61 34.07

Middle management 11 6.14

Higher management 16 8.93

Retired 49 27.37

Student 8 4.46

Missing 6 3.35

185 100 %

Education Level High School 35 18.91

Undergraduate 51 27.56

Graduate 9 4.86

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Demographic Variable Category Number Percent %

Postgraduate 15 8.10

Doctorate 65 35.13

Prefer not to say 10 5.40

Missing 0 0

185 100 %

Marital Status Single 8 4.32

Single with child/children 67 36.21

Living with partner 66 35.67

Living with partner and 44 23.78

child/children

Missing 0 0

185 100 %

Table 4.6: Respondents online activity characteristics

Demographic Variable Category Number Percentage

Internet Duration Less than 1 year 1 0.54

1 to 2 years 5 2.70

2 to 3 years 13 7.02

4 to 5 years 17 9.20

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Demographic Variable Category Number Percentage

More than 5 years 149 80.54

Missing 0 0

185 100 %

Purchase Duration Less than 1 year 10 5.43

1 to 2 years 19 10.32

2 to 3 years 19 10.32

4 to 5 years 52 28.26

5 to 8 years 44 23.91

More than 8 years 40 21.73

Missing 1 0.54

185 100 %

Internet Purchases 1 to 2 times 43 23.49

3 to 5 times 58 31.69

5 to 10 times 58 31.69

More than 10 times 24 13.11

Missing 2 1.09

185 100 %

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With regard to online purchases made in the last 12 months, two categories scored identical
results. 31.69% of respondents reported that they had made between three and five purchases
over the Internet in the last 12 months, while 31.69% of respondents reported that they had made
between five and 10 purchases over the Internet in the past 12 months. 23.49% of the sample
reported making between one and two online purchases in the 12 month period, while 13.11%
had made more than 10 online purchases in the past 12 months. Two respondents did not
indicate the amount of purchases, if any made over the 12 month period.

4.10 DATA ANALYSIS

Data retrieved from questionnaires was analysed in three ways. First, the response rate and
overall validity of the results was analysed. According to Collis and Hussey (2003) validity is
the extent to which the findings of the research accurately represent what is actually happening.
Secondly, an assessment of the internal consistency of the measuring instrument was conducted
using Cronbachs Alpha Coefficient Analysis. Reliability concentrates on the findings of the
research, and represents the trustworthiness of the findings. Therefore, research findings are
considered reliable if they can be repeated (Collis & Hussey, 2003). Thirdly, correlation and
regression analysis were performed on collected data.

4.11 RESPONSE RATE

The desired response rate sought was 1000 respondents. However, the initial methods employed
to obtain respondents turned out to be fruitless. Other distribution methods were employed and
200 questionnaires were printed and distributed. A total of 186 questionnaires were returned. Of
the 186 returned questionnaires, 185 were comprehensively completed and were usable for
statistical analysis. Figure 4.2 illustrates the response rate.

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4.11.1 Potential Reasons for Low Response Rate

The following are potential reasons as to why the response rate was lower than expected,
namely; that passenger and potential respondents who were approached were unwilling to
complete the questionnaire; passengers and potential respondents who were approached were
unable to complete the questionnaire as they did not meet the studys criteria by booking their
ticket online, potential respondents may have found the questionnaire to be too lengthy, potential
respondents, particularly respondents who were approached at the airport, may have been
pressed for time and lastly; the internet penetration rate in SA is low and therefore could be a
main contributing factor to why many travelers still make use of an agents service and not the
internet.

Response Rate

1%
7% Questionnaires completed
comprehensively and returned
[185]
Questionnaires not completed
comprehensively and returned
[1]
92%
Questionnaires not returned
[14]

Figure 4.2: Questionnaire response rate

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4.12 CONCLUSION

This chapter discussed the research methodology. More specifically, the processes employed
and the results of the pilot study, the validity and reliability of the distributed measuring
instrument as well as the data collection and analysis methods. The pilot study revealed strong
Cronbach Alpha Coefficient results which further established the measuring instruments
reliability and validity. Also presented in this chapter are the respondents demographic and
online characteristics. The empirical results are presented and discussed in Chapter 5.

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 CHAPTER 5

PRESENTATION AND INTERPRETATION OF EMPIRICAL RESULTS

5.1 INTRODUCTION

The aim of this study is to investigate and identify the dimensions of online service quality and
to understand how these dimensions contribute to customer satisfaction and behavioural intent.
To achieve this, hypotheses were formulated about the possible relationships between the
variables. The previous chapter discussed the methodology employed to test the formulated
hypotheses. In chapter 5, the empirical results are presented and analysed. The data collected
from respondents was thoroughly tested with SPSS in order to generate statistical results which
could then be easily analysed and interpreted. The main statistical methods used were the
determination of Cronbach Alpha Coefficients, Reliability Reports, Correlation and Regression
Analysis.

5.2 THE EMPIRICAL RESULTS

The first step taken to test the electronic service quality was to perform an item reliability
analysis. An item-reliability analysis is apt for testing of this nature as it gives the researcher a
clear indication of the internal reliability of the constructs and helps to ascertain whether the
variables are in fact all testing the same underlying construct. This is particularly important in
the field of exploratory research where models, concepts and constructs are to a large degree
previously untested. Included in this studies initial analysis, were all variables relating to the
constructs.

A correlation analysis was conducted to understand the relationships between the variables and
to assist in providing explanations for the regression analysis results. Lastly, a regression
analysis was used to test the formulated hypotheses illustrated on the theoretical model with the
use of SPSS computer software. The six electronic service quality sub-dimensions (information,

96
design, ease of use, reliability, security/privacy, interactivity/personalisation) were all grouped
together to make up the satisfaction (SAT) dimension. The reason for this was simple; the better
each sub-dimension was fulfilled, meaning that all important elements in that sub-dimension
were present, the more that particular sub-dimension would contribute to the overall satisfaction
experienced.

5.3 SERVICE QUALITY AND SATISFACTION

H0: Service Quality exerts no influence on satisfaction which comprises of the six sub
dimensions of electronic service quality (information, ease of use, design, reliability,
security/privacy and interactivity/personalisation) and make up the satisfaction dimension.

The hypotheses addressed the issue of whether a relationship exists between service quality and
customer satisfaction. To establish if this hypothesis is true or false a correlation analysis was
performed between overall service quality and satisfaction. The results illustrated in Table 5.1
indicate that there was a positive association between the two variables of service quality and
satisfaction. So the better the airlines online service quality, the more satisfied the consumer
would be. The correlation coefficient returned was 0.866, p < 0.05. Both Cai and Jun (2003)
and Zeithaml, et al. (2000) stated that service quality is one of the key determinants of online
success and bases it on the following: the service quality of online retailers greatly influencing
customer satisfaction and the intention to shop online in the future, and online retailers service
quality being crucial in attracting potential customers. Service quality and customer service and
satisfaction play a vital role in the success and survival of internet sites and are key elements in
achieving success. Wolfinbarger and Gilly (2003) also identified a positive link between
satisfaction and service quality.

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 Table 5.1: Correlation analysis

Dimension INFO EOFU DES RELB SEC INTER SAT SAT-SQ BINT

INFO 1.000 0.783 0.783 0.827 0.685 0.694 0.907 0.820 0.872

EOFU 0.902 1.000 0.880 0.845 0.700 0.754 0.943 0.853 0.856

DES 0.783 0.880 1.000 0.766 0.652 0.778 0.902 0.807 0.760

RELB 0.827 0.845 0.766 1.000 0.788 0.749 0.922 0.805 0.779

SEC 0.685 0.700 0.652 0.766 1.000 0.677 0.837 0.691 0.667

INTER 0.694 0.754 0.778 0.749 0.677 1.000 0.867 0.689 0.689

SAT 0.907 0.943 0.902 0.922 0.837 0.867 1.000 0.866 0.858

SAT-SQ 0.820 0.853 0.807 0.805 0.691 0.689 0.866 1.000 0.853

BINT 0.872 0.856 0.760 0.779 0.667 0.689 0.858 0.853 1.000

Mean 3.945 3.685 3.77 3.66 3.612 3.153 3.639 4.045 3.924

Std. 0.708 0.702 0.738 0.677 0.737 0.757 0.645 0.817 0.787
Deviation

Marked correlations are significant at p < . 0.05

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The results of the multiple regression analysis are illustrated in Table 5.2. The table shows that
service quality was significantly related to satisfaction (r = 0.997, p < 0.000). This regression
equation accounted for 99.5% of the variance of the dependent variable SAT-SQ. Two of the
independent variables, Reliability (p < 0.006) and Interactivity (p < 0.009), had a statistically
significant and therefore positive relationships with the overall service quality. This means that
if these two factors are emphasised more strongly, airline websites will achieve higher levels of
satisfaction. The null hypothesis (HO) that service quality exerts no influence on satisfaction is
rejected, while the hypothesis H1 is accepted as service quality influenced satisfaction which
comprises of the six sub dimensions of electronic service quality (information, ease of use,
design, reliability, security/privacy & interactivity/personalisation) which make up the
satisfaction dimension.
Table 5.2: Regression analysis (SQ-SAT)

Dependent Variable: SAT-SQ

Dimension R R Adjusted F Std Error t-value p-value

of Estimate
R

SAT-SQ 0.997 0.995 0.995 6.179 0.5013 8.92 0.000

To re-cap the reliability dimension is made up of three smaller sub-dimensions. Firstly,

reliability refers to the ability to perform the promised service accurately and consistently, which
includes frequently updating the website, prompt replies to enquiries and prompt deliveries as
well as keeping personal information secure (Janda, et al., 2002; Kim & Lee, 2002; Van Riel, et
al., 2003). It is imperative for companies that offer online shopping facilities to do two things.
Firstly, they must be accurate when it comes to billing, updating details of their website as well
as when dealing with customer enquiries. Secondly, to be prompt when delivering their service.
Online stores must provide mistake free service (billing for correct products ordered) and secure
online transactions in order to make their customers feel comfortable when making use of a
websites online shopping facilities which will encourage their return and re-use of the website
(Lee & Lin, 2005).

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The second element addresses Availability and refers to the extent to which the services provided
on or by the website can be obtained and used, as well as the correct technical functioning of the
site (Parasuraman, et al., 2005). This refers to how well equipped the website is in providing
customers with their wanted products/services that they are trying to locate through the use of
listing useful links to other webpages which will help facilitate the customers purchase decision.
Fram and Grady (1995) found that when customers are viewing a website for browsing or
purchasing purposes, missing links, non-working buttons and long waiting periods for a
websites page to load will lead to frustration (Appendix C). Weinberg (2000) found that when
a sites loading times exceeds the time that the web user is willing to wait, the user will then
redirect the web browser to another website or quit using the website all together.

The last sub-dimension refers to delivery fulfillment and is related to a websites success in
delivering products/services as well as its willingness to correct mistakes that occur during
transactions. When customers are notified that the item they have already selected is out of
stock, they will then display strong negative emotions and lower purchase intent than if they had
been notified before their selection (Kim & Lennon, 2004) so therefore the filling of orders
accrately and keeping service promises were primary service quality elements that lead to a
customer being satisfied as found by Yang & Fang (2004). An example of this would be to
indicate on the airlines website which flights have been sold out before the customer makes their
selection (Appendix D). Various studies have ascertained that Reliability has a direct positive
effect on customer satisfaction and service quality (Zhu, et al., 2002; Lee & Lin, 2005) therefore
adding more validity to the studies findings.

Interactivity relates to how the website responds to its customers in an online environment, so
how customers queries, questions and complaints are answered and dealt with in a courteous
manner as well as the degree to which a dialogue can be generated between the customer, the
website and company and the extent to which users can participate and modify the content of a
website in real time. (Kaynama & Black, 2000; Madu & Madu, 2002; Zeithaml, et al., 2002a). It
is important for users to be able to modify, tailor or customise services to fit their individual
needs for example a customer who purchases an airline ticket throught the airlines website
should be able to select the date and time that they wish to fly as well as a payment method

100
(Appendix E & F). Other options which are now made available to customers through airline
websites is the choice of booking rental cars or holiday packages at discounted rates. This
dimension overlaps to some extent with the respnsiveness dimension of Zeithaml, et al. (2002).
Robbins and Stylianou (2003) found that responsiveness is highly important to website users and
consumers and they expect online stores to respond to their inquiries promptly therefore
initiating interactivity which was found to predict customer intentions by Loiacono, et al. (2002).

The results of the regression analysis on customer satisfaction are displayed in Table 5.3. The
model explained a high 99.6% of the variance in service quality. The results of the regression
analysis shows that SAT (0.998, p < 0.000) positively affects service quality which provides
support in rejecting the hypothesis. This indicates that customer satisfaction is an important
element when one wants to achieve service quality.

Table 5.3: Regression analysis (SAT-SQ)

Dependent Variable: SAT-SQ

Dimension R R Adjusted F Std Error of t-value p-value

Estimate
R

SAT 0.998 0.996 0.996 1.184 0.414 234.53 0.000

Std of Std error

error of

0.998 0.004 0.996 0.004

5.4 SERVICE QUALITY AND BEHAVIOURAL INTENT

HO: The six dimensions of electronic service quality exert no influence on behavioural intent.

The results of the regression analysis are illustrated in Table 5.4. This regression analysis
explains 73.61% of the variance of the electronic service quality dimensions of satisfaction. A p-
value of 0.00 showed a strong relationship between the electronic service quality dimensions and
101
their influence on behavioural intent. Several studies on service quality in physical encounters
were identified and it was found that some factors are responsible for a customers perception of
quality which could be likely to lead to customer satisfaction which in turn could lead to
behavioural intentions to purchase (Zhang & Prybutok, 2005). Both Parasuraman, et al. (1988)
and Zeithaml, et al. (1996) found a positive relationship between service quality and behavioural
intentions. High service quality as perceived by customers was found to often lead to favourable
behavioural intentions while low service quality tends to lead to unfavourable behavioural
intentions (Zeithaml, et al., 1996). The more positive the customers experience, the more likely
the customers are satisfied with the service quality they receive, and the more likely they will re-
use the service (Zhang & Prybutok, 2005).

One dimension, ease of use scored considerably high (0.853) which indicated that this dimension
is particularly important when influencing behavioural intent. This makes sense and as reported
earlier, if customers find a website difficult to use or not user friendly, they will more likely
move on to another website. Another dimension which scored high and is therefore important
when influencing service quality was the information dimension (r = 0.820, p < 0.000).
Providing sufficient information is important because the more information the customer has, the
more able they are to make better informed decisions. The null hypothesis (HO) that the six
electronic service quality dimensions exerted no influence on behavioural intent is therefore
rejected, while the alternative hypothesis (H2) that the six dimension of electronic service quality
influences behavioural intent is accepted.

Table 5.4: Regression analysis (SQ-BI)

Dependent Variable: BINT

R R Adjusted F Std. Error t- value p-value

of Estimate
R < 0.000

SAT 0.858 0.737 0.736 (1.182) 0.404 22.61 0.000

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5.4.1 Relationship between information and behavioural intent

Poor information quality can wreck havoc in an organisation and result in a dissatisfied
customer. In a study conducted by Wang and Strong (1996), four dimensions were identified
that customers considered important when searching for information. They include: information
must be accessible, information must be interpretable, and information must be relevant and
accurate. Customers must be able to find and access information they are searching for as well
as be able to interpret and understand what they are reading. In the same light, information must
be relevant and accurate to the particular context. While adequate information enhances a
customers intentions (Francis & White, 2002) the quality of the information delivered is the
main key factor that affects the websites success through the positive influence of customers
behaviour intentions (Feindt, et al., 2002).

5.4.2 Relationship between ease of use and behavioural intent

Ease of use is the degree to which a person believes that using an information system is free of
effort (Al-Momani & Noor, 2009) as well as how easy it is for them to conduct external searches
in cyberspace and internal navigation within the airlines website. Ease of use has three aspects
namely, navigation, website access and transactional functions. Navigation deals with how
easily a user can search for information within a website and their ability to find information
efficiently. If users cannot understand the structure of the site and what they can find there, they
may become frustrated and leave the site altogether. A websites access relates to how easily the
user can connect to the site and its speed of download. If users have to wait due to long waiting
periods it is likely that they will quit and move to another website. Transactional functions give
customers the impression that the website is simple and user friendly when completing
transactions (Novak, et al., 2000; Kim & Lennon, 2004). A adequate degree of usability can
create a positive bias in a customer and higher levels of satisfaction (Chen, Wigand, & Nilan,
1999; Kim & Eom, 2002; Flavin, et al., 2006).

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5.4.3 Relationship between Design and Behavioural Intent

Design and graphics is an important dimension for websites as they can fulfill an individuals
information need by the presentation of a web sites content and information. The design or
appearance of a website is the first thing a user will observe and should be highly user friendly
which links to the ease of use dimension. Users do not want to see graphics that they do not
need to. Many graphics on a site could lead to frustration for the customer as they will have to
contend with long download periods. Cues such as colours, layout, print size, graphics and
design influence consumer perceptions of online shopping (Raney, et al., 2003; Nitse, et al.
2004) and the display of products can lead customers to make impulse purchases (Ko & Rhee,
1994).

5.4.4 Relationship between reliability and behavioural intent

Services promised must be performed accurately and consistently as reliability has a direct
influence on customer satisfaction which influences behavioural intent. The services that the
website is supplying must be easily obtainable and function correctly otherwise and as
mentioned earlier any function problems will lead to frustration and a loss in sale (Fram &
Grady, 1995).

5.4.5 Relationship between security/privacy and behavioural intent

The security/privacy dimension has been rated as most critical when influencing non-purchasers
perceptions of quality and has shown to have a strong impact on a customers intention to
purchase (Loiacono, et al., 2002; Van Riel, et al., 2003). Trust in an online transaction is related
to the buying and payment process, the reliability of the compnys website, privacy and security
issues, order fulfillment; after sales services as well as the brand name and reputation of the
company (Shankar, Urban & Sultan, 2002; Yoon 2002).

Trust is central to e-shopping intentions and security and privacy have been found to be closely
related to trust. Trust toward online companies is mentioned as a key factor or e-commerce
growth, of online success and competitiveness (Gefen, 2000; Jarvenpaa, et al., 2000; Urban,

104
Sultan & Qualls, 2000) The level of trust seems to be of particular importance to some
researchers given the fact that there is an absence of physical contact with the e-tailer when
online (Lynch, Kent & Srinivasan, 2001; Urban, 2002; Merrillees & Fry, 2003). Due to these
perceptions of risk, related to misuse of personal information, many people are still unwilling to
buy products from the internet (Kim, Kim & Lennon, 2006). Wilson (2000) found that many
consumers consider that lack of security as the main inhibiting factor preventing them from
adopting on-line purchase behaviour. The privacy dimension has been shown tohave a strong
impact on intentions to purchase (e.g. Loiacono, et al., 2002) satisfaction (Szymanski & Hise,
2000), and overall site quality (Yoo & Donthu, 2001).

Customers trust a website because of the cues that the site exhibits, such as privacy assurance,
thire-party seals of approval, customer referrals and testomonials (Appendix G) (Urban, et al.,
2000). Wolfinbarger and Gilly (2003) found that security and privacy were distinct factors that
represent the perceived security and confidentiality of personal data on a website. Kim,
Williams & Lee (2003) also found trust to be distinct site quality dimension with positive
correlation with attitude towad the site. Consumers are particularly sensitive to privacy and
security because of various fears ranging from spam to online identity theft (Wolfinbarger &
Gilly; 2003). Jarvenpaa, et al. (2000) and Lynch, et al. (2001) identified that trust increases
customers intentions to purchase a product from a company on the web. According to Koufaris
and Hampton-Sosa (2002), perceived company trustworthiness is positively associated with
customers intention to purchase and re-purchase from the same e-tailer.

Studies have emphasised the importance of online trust between customers and online stores
(McKnight et al., 2002; Grabner-Kruter & Kaluscha, 2003). As trust encourages online customer
purchasing activity and affects customer attitudes toward purchasing from an online store
(Gefen, 2000; Gefen, et al., 2003).

Many websites offer various forms of protection (in the form of user names, passwords and
credit card guarantees), however,some customers will still doubt the websites securtiy. Online
security is still perceived as a major obstacle for e-commerce, however, consumer confidence
can be increased and managed using encryption, digital signatures and online card guarentees
(Santos, 2003).

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5.4.6 Relationship between Interactivity/Personalisation and Behavioural Intent

With interactivity defined as the degree to which a dialogue can be generated between the
customer, website and the company interactivity also predicts intentions (Loiacono, et al., 2002).
There is a lack of real time interaction in the e-service environment and therefore personalisation
is becoming more important to online service quality. Giving customers personal attention,
understanding their specific needs and providing service related to convenience positively
influences their intentions.

5.5 BEHAVIOURAL INTENT AND SERVICE QUALITY

HO: Service quality exerts no influence on behavioural intent.

Table 5.5 show that service quality is significantly related to behavioural intent (r = 88.6, p <
0.000). This means that the more service quality is achieved by airlines, the more influence it
will have on behavioural intent which increases purchases. Therefore, the null hypothesis (HO)
that service quality exerts no influence on behavioural intent is rejected, while the hypothesis
(H3) that service quality influences behavioural intent is accepted.

5.6 SERVICE QUALITYS INFLUENCE ON BEHAVIOURAL INTENTIONS

HO: Service quality exerts no positive influence on customers behavioural intentions.

It is plain to see that if behavioural intent is as a result of service quality, then service quality has
an influence on customers behavioural intentions. Customers evaluations of the service
received are critical to service firms and those who provide superior service quality have more
satisfied customers who are more likely to display positive purchase intentions. This means that
the higher the service quality level offered, the more it will positively influence customers
behavioural intentions. The null hypothesis (HO) that service quality exerts no positive
influence on customers behavioural intentions is therefore rejected and the alternative

106
hypothesis (H4) that service quality positively influences customers behavioural intentions is
therefore accepted.

Table 5.5: Regression analysis (BI-SQ)

Dependent Variable: BINT

R R Adjusted F Std. Error t-value p-value

of Estimate
R < 0.000

SAT-SQ 0.886 0.785 0.783 (2,181)=331.57 0.366 6.36 0.000

5.7 CONCLUSION

In this chapter, the statistical results were examined. This chapter has highlighted that various
factors, some more than others, must be present when a company wants to achieve service
quality improvements that positively influence a customers behavioural intentions. The
empirical results revealed the following, namely that service quality does have a positive
influence on customer satisfaction; the six Service Quality sub-dimensions do influence or
impact behavioural intent; service quality does influence behavioural intent and also positively
influences customers behavioural intentions.

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 CHAPTER 6

CONCLUSIONS AND RECOMMENDATIONS

6.1 INTRODUCTION

The final chapter examines the managerial implications of the empirical results of this study and
offers recommendations to airlines for their websites to help increase customer satisfaction. This
study contributes to a growing body of literature of service quality and behavioural intent,
however, the results are industry specific. The main objective of this study was to identify and
investigate the dimensions of service quality in an online context and to ascertain how these
dimensions contributed to customer satisfaction and behavioural intent. This study used an
amended NetQual questionnaire and data gathered was analysed by statistical means to
determine electronic service quality factors in the airline industry. Airlines can easily run a
survey to determine what factors their customers deem as important. Results obtained in this
study are therefore deemed only applicable to the airline industry in an online context.

6.2 MANAGERIAL IMPLICATIONS

Airline service quality is based largely on customers perceptions of what services should be and
how they should be delivered. Reed & Sasser (2007) suggests that airlines suffer from a
business culture in which the costs of fuel and labour are viewed as more important than happy
customers in determining profitability. Furthermore, it is suggested that airlines will never
rank at the average, and certainly not above the average, in customer satisfaction because of
some of the intrinsic factorsthat never change (Reed & Sasser, 2007: page). Comments such
as these indicate that airlines are not yet convinced that satisfaction is a key to their success, but
the growing list of competitive alternatives might change industry minds. If competition does

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not change hearts and minds, then the threat of government regulation might (Tiernan, Rhoades
& Waguespack, 2008).

There are several implications that can be derived from the findings of this study. The research
findings confirmed that there is a strong positive relationship between an airlines website
quality and their customers satisfaction. Service quality improvement initiatives should begin
with identifying the customers needs and preferences and their related quality dimensions (Jun,
Yang & Kim, 2004). If airlines understand what dimensions their customers use or view as more
important to judge quality, they can then take the correct actions to determine and enhance
performance in those dimensions.

This study identified six key online sub-dimensions, namely; information, ease of use, design,
reliability, privacy/security and interactivity/personalisation. Obviously in order to provide a
high level of overall service quality, airlines should pay attention to all of the six dimensions
which were identified in this study. However, in order to improve their online service quality
and in order to increase satisfaction, airlines should focus particularly on two dimensions-
reliability and interactivity/ personalisation, which are elaborated further in point 6.2.1. In the
case of airlines wanting to positively influence behavioural intent, they should focus primarily on
information and ease of use which is elaborated on in point 6.2.2. Just as each airline is
different, so are their customers -the results obtained for the purpose of this study might not be
the same for a study conducted in Cape Town or an international location for various reasons.

6.2.1 Influence of service quality on customer satisfaction

The findings emphasise that service quality does, in fact influence satisfaction. As service
quality is a key determinant of an airlines website success, a first step airlines should take is to
assess to what extent they are fulfilling the six electronic service quality sub-dimensions as the
more criteria meet in each of these dimensions, the better will be the level of service quality.
Furthermore, the empirical results highlighted two of the six sub-dimensions as being more
pertinent to individuals who make bookings online. These include reliability and
interactivity/personalisation. Therefore, it makes sense that managers should focus on meeting

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all the criteria (Table 3.1) for these two particular sub-dimensions as they are the biggest
influencers on customer satisfaction. It is recommended that airlines conduct their own surveys
to determine which sub-dimensions their customers view as imperative and take the necessary
steps to meet all the criteria for those sub-dimensions.

6.2.1.1 Reliability

Lack of reliability and trust online leads to a lack of trust in the airline itself. Airlines need to
make a point of focusing on and understand the elements that communicate trust to the users of
their website in order to help them feel more secure when conducting their online transactions.
For example, ensuring that all criteria are met in the reliability sub-dimension as this was one of
the sub-dimensions that was viewed as more important.

To fulfill the reliability sub-dimension, airlines must address the following, namely; ensuring
that their website is updated frequently, promptly replying to all enquiries as well as ensuring
prompt delivery, and keeping personal information secure. Prompt responses and delivery also
overlaps with availability of the airline.

Airlines have to frequently update their website information with regards to flight availability
(fights available for specified dates or flights sold out) to provide the user with the most accurate
and up-to-date information. If information is not accurate and up-to-date, for example, the
airline has over booked, users will be making their bookings based on incorrect information.
Customers will then have to be informed at a later stage that there were, in fact, no more seats
available and that the airline overbooked for that particular flight or date. This leaves customers
feeling negative about the airline due to their negative online experience, which leads to a lack of
trust. Since trust is based on the users experience, the more trustworthy the relationship is with
the airline, the easier it is for the airline to create a consistent relationship (Naidoo & Leonard,
2002). When an airline fails to deliver their product/service accurately it is often due to a lack of
synchronising online (sales and marketing) with offline (inventory and logistics) business
process. Therefore, airlines need to use a system that integrates both their online and offline
operations to improve the delivery of their products/services.

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Airlines must be prompt when delivering their service. In an online context this entails ensuring
that booking confirmations are delivered timeously via e-mail or fax. When customers have a
problem they must be given a prompt response from the airline as well as a reasonable and
acceptable solution.

Airlines generally do provide information about their privacy and security and this is definitely
crucial information to supply. Despite its availability, such information can be difficult to
understand due to it being written in very technical language. It is recommended that airlines
provide a brief, comprehensive but understandable version enabling customers to easily and
quickly understand the airlines policies. Airlines must ensure that transactions that take place
online, such as credit card payments, are secure by making use of and promoting their security
features to ensure that customers feel comfortable. Additionally, airlines should display the logo
that informs the user of which security options the company makes use. This also encourages
customers to return and re-use the airlines website in the future.

6.2.1.2 Availability

Many internet users make use of Internet Explorer, however there are other browsers which are
made use of and the airline must ensure that their website is compatible and operates correctly on
a variety of browsers. Unfortunately, this is not always possible. In light of this, airlines could
provide users with easy to locate information, explaining their websites minimum browser
requirements as a safety measure to prevent users from blaming the airline for a malfunctioning
website.

Airlines must ensure that their websites are always available in order for their users to make use
of the website to obtain information (Appendix H). If the website is unavailable for whatever
reason, the airline will be losing sales as customers will then make use of another airlines
website. If the airline needs to carry out system maintenance, such as in Appendix H, they need
to announce necessary maintenance in advance to users and have such information with a correct
time schedule available on their main page for viewing. Alternatively, a notice of maintenance
or a maintenance schedule can be e-mailed to individuals who have signed up to receive
communication from the airline. Additionally, maintenance should be scheduled at a time when

111
website traffic is slowest or non-existent, for example, in the early hours of the morning.
Additionally, airlines need to monitor dead links, non-working buttons and system availability.
This way the airline can also prevent any unnecessary financial loss.

Customers problems should be promptly responded to and airlines should list easily obtainable
contact information for customers to use. Most airlines have a FAQ page for users to view if they
have any queries; however, if their question is not listed there, airlines should consider
implementing a live help function to provide instant help to customers who might have
questions.

Availability also refers to how well and quickly customers are provided with the
products/services they are trying to locate. Airlines must provide a versatile search engine that
consumers can use to assist them in locating whatever it is that they are searching for, as well as
sitemaps so users can easily navigate the website and ensure that users will not have to contend
with missing links, buttons that do not work, sites freezing and crashing as well as long loading
times as these factors negatively influence customer satisfaction levels.

Airlines need to provide new and alternative ways to book and pay for flights. Examples
include: charging bookings to an individuals cell phone account or perhaps to another retail
account that they operate on such as an Edgars or Woolworths account.

6.2.1.3 Interactivity/personalisation

Interactivity relates to how the airlines website responds to its customers in an online
environment (how customers queries, question and complaints are dealt with). Consumers these
days expect airlines to respond to their inquiries promptly which also initiates interactivity.

Personalisation is when users can modify the websites content in real time, such as selecting their
own destination to which to travel, adding ancillary services. As websites do not offer the same
personal contact as agents would, a dialogue needs to be created or generated between the
customer and the airline through the use of their website. For an airline to achieve online service
quality users must be able to tailor or customise the service to best fit their individual needs, for
example the user must be able to select the preferred day of travel, as well as the time they would

112
prefer to travel. Additionally, they should have various payment methods available from which
to choose that might be considered convenient and suitable.

Other ways to increase satisfaction is to give customers personal attention, to understand their
specific needs and provide services related to those needs as this positively influences their
intentions. Airlines give customers personal attention, in a sense, by providing a number of
flights every day; departing at various times throughout the day. Additionally, customers have
the option to add on various ancillary services, such as car rentals and hotel accommodation.
This allows the customer to personalise the product/service to meet their individual needs and
shows that the airline understands that their customers have specific needs and that they are
providing options to satisfy those needs.

6.2.2 Influence of the six electronic service quality dimensions on behavioural intent

Numerous studies on service quality in physical encounters have been identified and certain
factors were found to be responsible for a customers perception of quality, which could be likely
to lead to customer satisfaction and in turn lead to behavioural intentions to purchase (Zhang &
Prybutok, 2005). The empirical results revealed that all six dimensions were relevant, however,
the most important dimensions applicable to influencing behavioural intent were found to be
information and ease of use.

6.2.2.1 Information

Information was found to be important when influencing behavioural intent. Airlines should
determine what information their customers will require and the airlines website should be
designed in such a way that their customers can access relevant information when needed.
Airline websites should contain adequate information on not only themselves, but also their
products and services offered on their website to reduce the perceived risks associated with
online purchases and to enhance customers intentions.

While providing adequate information is important, the quality of the information is also
essential. Customers must be able to easily find and access the information for which they are

113
searching, and on top of this, the information must be accurate, relevant and easily interpretable.
Many airline website users compare flight times, dates and prices on various airline websites
before making their purchase, but they must have correct and sufficient information on which to
base their decision. The more information supplied to the user, the lower the perceived risk
experienced.

6.2.2.2 Ease of Use

Ease of use was found in this study to be significant when influencing behavioural intent and
according to the literature relating to three factors, namely, navigation, website access and
transactional functions. Users should be able to navigate and locate information on airline
websites easily and they should be able to access the website at a reasonable download speed,
otherwise they will become frustrated and more than likely quit and move on to another website.
Lastly, airlines should organise their site content in a logical and consistent way to ensure that
customers view their website as simple and user-friendly.

6.2.3 Influence of service quality on behavioural intent and behavioural intentions

The empirical results revealed that service quality does have a positive influence on behavioural
intent and behavioural intentions. This means that the more service quality that is achieved by
airlines through fulfilling each sub-dimensions criterion, the more influence it will have on
behavioural intent which increases purchases. It is plain to see that customers behavioural
intentions are as a result of the service quality they have experienced; therefore, the level of
service quality provided does affect how a customers behavioural intention are influenced. A
customers evaluation of the service received is critical to service firms.

114
6.3 LIMITATIONS AND SUGGESTIONS FOR FURTHER RESEARCH

One major limitation was that the sample was relatively small and a larger sample will be needed
to further validate the findings of this study. A selected sample figure of 1000 respondents was
thought sufficient for this study. However, the researcher had to settle for a sample of 185
respondents even though it was considered to be too small when compared to the amount of
passenger traffic that takes place on a day-to-day basis. The initial method for obtaining
respondents was through the social network website Facebook. Requests for assistance in
completing the questionnaire were sent out to various airlines that have a Facebook page with
member listings into the thousands. This method has been and is still being employed by many
academics who have had more favourable results. Unfortunately, the researchers requests for
assistance were listed as a secondary page entitled Airline + others, and members would have
to specifically click on that tab to read other members posts.

The researcher then employed a more traditional and tedious method to obtain a reasonable
amount of respondents. Questionnaires were then printed up and administered by hand to
individuals at travel agents, banks and passengers at the Port Elizabeth International Airport.
Since the questionnaire was administered to any individual willing to take the time to complete
it, the results should be interpreted carefully. It is the researchers belief that if a larger sample
had been obtained, more significant statistical results would have been achieved. A future study
could further examine the listed relationships and in more depth by further testing the modified
measuring instrument with a larger and more diverse sample. Therefore, the study was
conducted mainly at a single domestic airport. A more extensive sample could have been
obtained if there were no time and financial constraints. Another limitation was that data was
mostly gathered in one specific geographic area, being Port Elizabeth, and the results might be
specific only for this area.

While the manual method of physically handing out surveys at the airport was sufficient in this
study, it is recommended that in the future alternative data collection methods also be explored.
Studies conducted in the future, if possible, should make use of an online web survey website,
such as the one employed by the NMMU. This is highly recommended as it is far more efficient
and effective than having to input data manually off hard copies of questionnaires.

115
Additionally, future studies could obtain the assistance and permission of airlines, where
researchers would be granted access to the airlines data base of individuals who have booked
their tickets online - e-mails containing a link to an online survey could then be sent to these
individuals. Alternatively the survey could be sent attached to the booking confirmation with the
aim of the customer seeing that it comes from the airline which is aware of the request being
made to customers to complete an online survey based on their opinions and experience of the
website. Alternatively, after the booking process has been completed, a link/button could be
displayed on the airlines actual website, asking if the customer would like to take part in an
online electronic service quality survey, based on their recent experience with the airlines
website.

An alternate suggestion would be to request permission from other tertiary education facilities to
circulate a link of the online survey and request their MBA and part time students to assist if they
book their tickets online; it is considered more likely that these individuals travel regularly for
work purposes.

A last recommendation for data collection would be to go the traditional route of printing copies
of the questionnaire and distributing them to willing passengers at airports. It is noted that this is
time and resource consuming. Vast amounts of time will be needed depending on the sample
size as questionnaires will firstly have to be distributed then collected, and secondly, data will
have to be input manually which also leaves room for errors.

It is recommended that future research should be conducted by broadening and extending the
sample size, sample demographic and geographical location, as the percentage of internet users
in South Africa is considerably lower when compared to other countries. South Africa has a
population of 49,109,107, of which 5,300,000 use the Internet. This makes up 4.8% of the total
Internet usage in Africa (Internet world stats, 2010). As the airline industry is constantly
improving their infrastructure and facilities, this studys topic can develop further, which will
make for interesting future research.

116
6.4 CONCLUSIONS

The main objective of this study was to identify and investigate the dimensions of service quality
in an online context and to ascertain how these dimensions contributed to customer satisfaction
and behavioural intent. The present study has contributed to the attainment of the above
objective by firstly, identifying the six electronic service quality dimensions which were found to
be: information, design, ease of use, reliability, security/privacy and interactivity/personalisation,
and by identifying pertinent factors in each dimension which should be taken into consideration
when creating an airlines webpage.

The secondary objective of the study was to ascertain if any of the electronic service quality
dimensions was more significant in achieving service quality, if any of the electronic service
quality dimensions was more significant in influencing behavioural intent; if any of the
electronic service quality dimensions was more significant in influencing buying intent, if
behavioural intentions were positively or negatively influenced by electronic service quality, and
lastly to investigate how electronic service quality in the airline industry could be improved.

The empirical results revealed that reliability and interactivity/personalisation were more
significant dimensions in achieving service quality within the airline industry, which positively
influences satisfaction. Results further revealed that information and ease of use were
considered as the significant dimensions to focus on when influencing buying intent.
Behavioural intentions can be either positively or negatively influenced through an airlines
electronic service quality. This will largely depend on to what degree each sub-dimension will
be focused on and integrated into the airlines website. While this study has its limitations, the
attempt to investigate the impact of electronic service quality dimensions on customer
satisfaction is of value.

117
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141
APPENDICIES

142
 APPENDIX A

DISTRIBUTED QUESTIONNAIRE

143
 THE IMPACT OF ELECTRONIC SERVICE
QUALITY DIMENSIONS ON CUSTOMER
SATISFACTION

S. Van Der Merwe

209030450

Research proposal submitted towards partial fulfillment of the requirements for

the degree

Magister in Business Management

in the

Faculty of Business and Economic Sciences

of the

Nelson Mandela Metropolitan University

October 2010

Promoter: Dr. Oren Dayan

Date of submission: November 2010

144
 Faculty of Business and Economic Sciences
Nelson Mandela Metropolitan University

28th October 2010

Dear Respondent

I formally introduce myself as a full time MBA student at the Nelson Mandela Metropolitan University.
My name is Samantha Van Der Merwe. You are being asked to participate in a research study by
completing a questionnaire which will measure an airlines website service quality, more particularly the
airline you make use of. Once completed, the analysis of collected data will assist in making
improvements in electronic service delivery within the airline industry.

This study is conducted in co-operation with the Bordeaux Business School in France and the outcomes
are hoped to be published in the European Marketing Academy conference 2011. Furthermore, this study
has been approved by the Research Ethics Committee (Human) of the NMMU University.

Please assist in completing the questionnaire and returning it as soon as possible. Should any clarification
be needed please do not hesitate to contact me. Communication via e-mail preferred.

E-mail: samanthavandermerwe@gmail.com
Fax: 086 690 4730
Tel: [041] 379-5190
Cell: 083 544 4158

Yours sincerely

Samantha Van Der Merwe

RESEARCHER

Section 1

145
Please select an airline through which you have recently purchased a ticket from their
website and answer the following questions. Indicate on the questions below the extent to
which you agree or disagree with each statement. For example, 1 = Strongly Disagree; 5 =
Strongly Agree. There are no right or wrong answers just give your honest evaluation of
the site.

Strongly Strongly
Disagree Agree
1. This site provides detailed information about the 1 2 3 4 5
product or service offered
2. This site shows creativity 1 2 3 4 5

3. This site is easy to use 1 2 3 4 5

4. I trust the overall security of the site 1 2 3 4 5

5. I can interact with this site to receive personalised 1 2 3 4 5

information
6. This site provides useful information about the 1 2 3 4 5
product and service delivery
7. I will continue using the web site to purchase 1 2 3 4 5
additional products and services in the future
8. The information on this site is relevant to me 1 2 3 4 5

9. This site offers good illustrations of the products or 1 2 3 4 5

services sold
10. It is easy to search for additional information on this 1 2 3 4 5
site
11. This site offers functions which gives me a secure 1 2 3 4 5
feeling
12. This site has interactive functions which I find 1 2 3 4 5
interesting
13. This site gives me indications of product availability 1 2 3 4 5
i.e. quantities in stock, seat availability
14. I enjoy visiting the website and will visit it again in the 1 2 3 4 5
future
15. The information on this site is precise 1 2 3 4 5

16. This site is visually attractive 1 2 3 4 5

17. It is easy to navigate and to find what you are looking 1 2 3 4 5

for on this site

146
 Strongly Strongly
Disagree Agree

18. I think that my private life and my financial 1 2 3 4 5

information are protected on this site
19. This site records my preferences and offers me extra 1 2 3 4 5
services or information based on these preferences
20. This site offers several types of delivery 1 2 3 4 5

21. I intent to continue purchasing products from this 1 2 3 4 5

web site in the future before looking at other websites
22. The information on this site fulfills my needs 1 2 3 4 5

23. This web design is appropriate for this type of site 1 2 3 4 5

24. The layout of this site makes it easier to search for 1 2 3 4 5

information
25. I trust this site not to misuse my personal information 1 2 3 4 5

26. I can contact the company easily through this site 1 2 3 4 5

27. The ordering process is easy to follow 1 2 3 4 5

28. I will visit this web site when I want to compare prices 1 2 3 4 5

29. The information given on this site is easy to 1 2 3 4 5

understand
30. The user interface on the airline website is organised 1 2 3 4 5
[i.e. appearance, usability]
31. The layout of the site is clear, clean and simple 1 2 3 4 5

32. Shopping behaviour patterns are protected by the 1 2 3 4 5

web site
33. I have fun when interacting with the website 1 2 3 4 5

34. This site provides contact details for customer 1 2 3 4 5

services [e-mail, phone]
35. I will visit this website when I want to purchase air 1 2 3 4 5
tickets
36. I can make a decision upon the information given to 1 2 3 4 5
me by the web site
37. It is simple [easy, quick] to complete a transaction on 1 2 3 4 5
the website
38. It is easy to access the results of my search 1 2 3 4 5

147
 Strongly Strongly
Disagree Agree

39. The site provides detailed information about security 1 2 3 4 5

[data security]
40. The website offers the ability to speak to a live person 1 2 3 4 5
if there is a problem
41. I trust the information on the website is reliable and 1 2 3 4 5
countable
42. I will recommend using this website to all my friends 1 2 3 4 5

43. The information on the site is always available to me 1 2 3 4 5

whenever I need it
44. The site has a unique design that urges me to travel 1 2 3 4 5

45. I can complete transactions quickly and efficiently 1 2 3 4 5

46. I am not worried that my personal details will be 1 2 3 4 5

violated or illegally exposed in any case
47. The website tells me what to do if my transaction is 1 2 3 4 5
not processed
48. I feel safe and secure providing my personal details on 1 2 3 4 5
the web sites system
49. I will do more business with this web site in the 1 2 3 4 5
coming months or a year
50. The information on the site is consistent 1 2 3 4 5

51. The site is colourful and interesting 1 2 3 4 5

52. The site enables me to get onto it quickly [loads fast] 1 2 3 4 5

53. I feel confident that goods/services will be delivered as 1 2 3 4 5

promised
54. The website has customer service representatives 1 2 3 4 5
available online to assist me
55. The web site is available for business at any time 1 2 3 4 5

56. All features of the websites are launched and run 1 2 3 4 5

straight away so I dont have to waste time
57. The web site has never crashed while I was online 1 2 3 4 5

58. The web site has adequate security for my 1 2 3 4 5

convenience

148
Would you say that overall this site? Did not Satisfied
satisfy you 1 2 3 4 5 you very
at all much
Would you recommend this site to a friend? Did not Satisfied
satisfy you 1 2 3 4 5 you very
at all much
Would you like to visit the site again in the Did not Satisfied
future? satisfy you 1 2 3 4 5 you very
at all much
Would you like to purchase from this site Did not Satisfied
again? satisfy you 1 2 3 4 5 you very
at all much
I am satisfied with the product[s] and Did not Satisfied
service[s] offered on this site satisfy you 1 2 3 4 5 you very
at all much
I strongly recommend that others use the Did not Satisfied
online website satisfy you 1 2 3 4 5 you very
at all much

149
 Section 2

Please tick or mark the items below that describe you

Your Internet and online purchase behaviour

1. How long have you been using the Internet?

Less than 1 year 1 to 2 years 2 to 3 years 4 to 5 years

More than 5 years

2. How long have you been making purchases on the Internet?

Less than 1 year 1 to 2 years 2 to 3 years 4 to 5 years

5 to 8 years More than 8 years

3. In the past 12 months, how many times have you made purchases on the internet?

1 to 2 times 3 to 5 times 5 to 10 times

More than 10 times

Some information to get to know you better

4. Are you ? Male Female

5. Please indicate which age range you fall into:

Under 18 18-24 25-34 34-44 45-54 55-64

150
 65 and over

6. What is your profession?

Staff Lower management

Middle Management Higher Management

Retired Student

7. What is your current level of education?

High School Undergraduate

Graduate Postgraduate
Doctorate Prefer not to say

8. What is your marital status?

Single Single with child/children Living with partner

Living with partner and child/children

Thank you for taking the time to complete this questionnaire.

151
 APPENDIX B

WEBSITE LONG LOADING TIMES

152
153
 APPENDIX C

KEEPING WEBSITE UP TO DATE

154
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 APPENDIX D

DESTINATION SELECTION

156
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 APPENDIX E

DATE SELECTION

158
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 APPENDIX F

DISPLAY OF SECURITY FEATURES

160
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 APPENDIX G

WEBSITE MAINTENANCE

162
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