Transportation Quality, Customer Satisfaction and Financial Performance

Advances in Management Accounting, 34. ISSN 1474-7871 (In Press)

The University of Auckland Business School Research Paper Series

34 Pages Posted: 10 Feb 2022 Last revised: 21 Jun 2022

See all articles by Belaynesh G/mariam

Belaynesh G/mariam

Nottingham University

Kevin Dow

University of Auckland Business School

Davood Askarany

University of Auckland Business School

Jeffrey Wong

University of Nevada, Reno - Department of Accounting and Information Systems

Yun Shen

University of Nottingham, Ningbo

Date Written: 2021

Abstract

This paper examines the relationship between transportation quality, customer satisfaction and profitability. Specifically, this study examines the simultaneous and asynchronous effect of quality of transportation services on customer satisfaction and financial performance and then performs the same examination in relation to the effect of customer satisfaction on financial performance. The partial least squares approach to structural equation modelling is used to examine longitudinal data from 1995-2018 from the US airline industry. Our findings suggest that low services quality in transportation has adverse effects on customer satisfaction and financial performance, while the impact of customer satisfaction on financial performance in the US Airline transportation industry is mixed. We found that the impact of customer satisfaction on financial performance is significant in full-service airlines but not in low-cost airlines. Surprisingly, we found no significant direct relationship between transportation quality and financial performance in the US airline industry. Full paper available at https://centaur.reading.ac.uk/101497/

Keywords: Transportation quality, customer satisfaction, US airline industry and financial performance

Suggested Citation

G/mariam, Belaynesh and Dow, Kevin and Askarany, Davood and Wong, Jeffrey and Shen, Yun, Transportation Quality, Customer Satisfaction and Financial Performance (2021). Advances in Management Accounting, 34. ISSN 1474-7871 (In Press), The University of Auckland Business School Research Paper Series, Available at SSRN: https://ssrn.com/abstract=4024733

Belaynesh G/mariam (Contact Author)

Nottingham University ( email )

199 Taikang East Rd.
Ningbo, 315100
China

Kevin Dow

University of Auckland Business School ( email )

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand

Davood Askarany

University of Auckland Business School ( email )

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand

Jeffrey Wong

University of Nevada, Reno - Department of Accounting and Information Systems ( email )

1664 N. Virginia St
Reno, NV 89557
United States

Yun Shen

University of Nottingham, Ningbo ( email )

199 Taikang East Road
Ningbo, Zhejiang 315100
China

HOME PAGE: http://www.nottingham.edu.cn

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
12
Abstract Views
118
PlumX Metrics