Customer Satisfaction In Building Customer Royalty On Singapore Airline 1 Customer Satisfaction In Building Customer Royalty On Singapore Airline 1 Customer Satisfaction In Building Customer Royalty O

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Running head: Customer satisfaction in building customer royalty on Singapore airline
Customer satisfaction in building customer royalty in Singapore Airline
Name of the student
Name of the university
Author’s note

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Table of Contents
Chapter 1 Introduction...............................................................................................................3
1.1 Introduction......................................................................................................................3
1.2 Background of the company............................................................................................4
1.3 Justification of the research topic:....................................................................................5
1.4 Research aim....................................................................................................................5
1.5 Research objectives..........................................................................................................6
1.6 Research hypothesis.........................................................................................................6
1.7 Significance of the study..................................................................................................6
1.8 Research structure............................................................................................................6
Chapter 2 Literature Review......................................................................................................8
2.0 Introduction......................................................................................................................8
2.1 Customer loyalty is customer royalty..................................................................................8
2.2 Customer satisfaction...........................................................................................................9
2.3 Service quality................................................................................................................11
2.4 Service recovery.............................................................................................................13
2.5 Management and training of employees........................................................................14
2.6 Customer retention.........................................................................................................15
Chapter 3 Research Methodology............................................................................................17
3.1 Research purpose...........................................................................................................17
3.2 Quantitative and qualitative approaches........................................................................17

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3.3 Data collection...............................................................................................................18
3.3.1 Primary data collection...........................................................................................19
3.3.2 Secondary data collection.......................................................................................20
3.4 Data analysis..................................................................................................................20
Reference list............................................................................................................................21

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Chapter 1 Introduction
1.1 Introduction
The aviation sector is known to grow rapidly in the last 25 years. The growth of the
airline industry provides opportunities and challenges to the business entities in this industry.
Customer satisfaction is one of the main objectives in the marketing activity. The customer
satisfaction if very crucial since it is known to have a positive impact on the profitability of
the organization. For this reason, both the customer satisfaction as well as dissatisfaction
needs to be considered properly for optimum productivity. There is also a presence of
positive correlation between royalty, retention as well as customer satisfaction. For this
reason, these following aspects are very important for the organization to be successful.
It is also suggested that good forms of human and technicalaspects of the service
quality can lead to a rise in the customer satisfaction. For this reason, it can be said that the
customer satisfaction will help in enhancing the customer loyalty (Singh, 2015). The human
aspects are known to be much more important than the tangible aspects of the service quality
which is known to impact the satisfaction of the customer that will help in promoting and
enhancing the loyalty of the customers. In order to maximize the satisfaction of the customer,
the firms should be selling ideas after the completion of necessary documents. The
satisfaction of the customers is affected by specific products and perception of quality. It is
also one of the key features for creating a long termrelationship with the customers.Customer
loyalty on the other hand is the result of the organization which creates a benefit for thee
customers so that they can increase their purchase from the company.
The airline industry is highly competitive in nature where the customers are the most
essential factor of the process of travelling along with increasing the quality of the service
and flight safety. For this reason it can be said that the customer satisfaction is one of the

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most essential strategy of the airlines. The complaints of the customers usually serve as one
of the critical dimension of the quality of the service and the customer satisfaction. The
complaint of the customers offers the organization a chance for correcting their mistakes.
There have been huge number of cases which suggest that customer satisfaction is known to
have a direct relation to the response of the company which in the end will be affecting the
future behaviour of the customers (Jung, Han & Oh, 2017). The customer satisfaction is also
termed as CSAT that is used in marketing quite frequently. It is a measure that is known to
measure how the products and services are supplied by an organization meet and also surpass
the expectation of the customers.
1.2 Background of the company
Singapore Airlines Limited (SIA) is known as the flag carrier airline of Singapore
where its main hub is located at Changi airport of Singapore. The Singapore airlines is also
ranked as the world’s best airline since the year 201. It has been nominated as the Best first
class service provider, Best Airline in Asia and the Best first class airline seat. The fleet size
of SIA is 122where more than 14 thousand employees work for it. The Airbus A380 of SIA
had been the world’s largest passenger aircraft. The Singapore Airlines had been named best
for customer service by Australian travellers. It has also won the Roy Morgan July
International Airlines Customer Satisfaction Award where its customer satisfaction rating
had been more tan 88 percent. It have also been found out that Singapore Airlines will be
using blockchain based digital wallet for its loyalty program.
As customer loyalty program, there have been special deals, exclusive partner offers
and flying perks for the loyal customers. Singapore Airlines known to have found its business
on world class service quality in the industry of airlines. For converting a new potential
customer to a loyal customer, Singapore Airlines are paying for customization flexibility. The

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manager of SIA states that this particular Airline wants to create the “wow effect” which the
customers will not be able to enjoy until they come to experience it.
KrisFlyer is the frequent flyer programme introduced by Singapore Airlines which is
mainly designed for rewarding the loyal customers. With the KrisFlyer membership
programme, the customers can enjoy various privileges according to the memberships. They
can get free bonus miles, priority check-in, lounge access, boarding as well as baggage
handling and a lot more. There are three tiers of the membership which are krisFlyer,
KrisFlyer Elite Silver and KrisFlyer Elite Gold. In case of The PPS Club membership,
customers are provided with extra privileges and personalized service which makes most of
the journey convenient.
1.3 Justification of the research topic:
By taking into account the global business development, customer awareness including
their happiness is the main factor affecting the passengers travelling by SIA and the primary
strategy of the airline industry is to maintain growth by providing superior customer service
and maintaining global standards when it comes to service quality. Therefore, it is essential to
enforce innovative measures for retaining existing passengers and attracting new customers.
This makes it necessary for the management of SIA to evaluate and understand the wants and
expectations of the customers from the organisation and whether it is able to match the
passenger expectations and importance of service quality, its determinants and dimensions
along with a tool to gauge customer satisfaction in the service sector.
1.4 Research aim
This particular study is known to investigate the customer satisfaction in building
customer loyalty in case of Singapore Airlines. The research also aims to find out the factors

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which leads to customer satisfaction in the airline industry. The paper also states about the
various loyalty programme offered by Singapore Airlines in the first chapter.
1.5 Research objectives
The research objectives of the paper are:
 To find out the responses on customer satisfaction towards the service quality offered
by Singapore Airlines.
 To determine the relationship between customer satisfaction and customer loyalty.
 To identify the main factors which will help in improving customer satisfaction in the
airline industry.
 To identify how trained employees positively affects customer satisfaction.
1.6 Research hypothesis
After taking into considerations the above research objective’s and aims, the study
needs to form research hypothesis in order to form a clear proposition of the outcomes.
H0: Customer satisfaction has a huge impact on customer loyalty.
H1: Customer satisfaction does not affect customer loyalty
1.7 Significance of the study
This particular research work is quite important for SIA, to the researcher as well as it
can also be used as guidance for future work. The reason behind this is that this
particularstudy will help those who implement the factors hat can affect the customer
satisfaction and the company image.
1.8 Research structure
The following paper is organized in this particular framework:

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The first chapter provides the introduction of the paper customer satisfaction in
building customer loyalty in Singapore Airlines. The first chapter also provides the
background of the Singapore Airlines and states about the various loyal;;ty programmes
offered by them. The second chapter provides the literature review. This part of the paper
provides previous studies related to the customer satisfaction in Singapore Airlines. It
statesabout the customer loyalty, customer service, customer loyalty, training of employees
and customer retention. The third chapter is about the research methodology. The fourth
chapter includes data analysis and lastly chapter five states about the conclusion and
recommendation of the paper.

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Chapter 2 Literature Review
2.0 Introduction
The literature review had been conducted about the customer loyalty, customer
satisfaction, service quality, customer retention and educating employees. The researcher had
identified and highlighted the essential variables from the previous research that will help in
providing proper theoretical framework for the study.
2.1 Customer loyalty is customer royalty
The customer loyalty includes the loyalty behaviour, which is the act of customers
making repetitive purchase of the current brands rather than choosing from the competitor
brand. Therefore, it can be said customer loyalty mostly takes place as a result of the positive
emotional experience, physical attribute basedsatisfaction with a perceived value of the
experience. The loyalty of a customer typically relies on the customer interest for maintaining
a relationship with one organization (Chen, 2016). For making the customers loyal, the
company should be focussing in some of the most significant things. Many of the researchers
have agreed to the fact that customer loyalty is a very important aspect for any organization,
which is providing a service.
According to Hussain, Al Nasser and Hussain (2015), the attachment of the customers
to a certain brand or products over quite a long period of time is termed as loyalty. The
customers can express their loyalty by continuously purchasing their products and also
providing positive word of moth referrals. Some of the studies have also stated the fact that
there is a presence of positive relationship be tween the customer loyalty and the brand image
of the organization. The customer satisfaction is known to be considered as one of the
important part who affects customer loyalty (Farooq et al., 2018). Customers are also known

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to get divided according to their loyalty degree. There are many groups of customer loyalty
which can be termed as the completely loyal or somewhat loyal.
According to Li, Ma and Zhou (2017), loyalty is the deep help commitment for
rebuilding and re-patronizing a preferred product or the service in the future despite of the
situational influences that can have the potential that will be causing the switching
behaviours. The loyalty building requires the company for focussing the value of its product
as well as services. The organization also needs to show that it is very much interested for
fulfilling the desire of building healthy relationship with the customers. The loyal customers
will also be encouraging other people to use their services and will think twice before
changing their mind for moving to other services (Hapsari, Clemes & Dean 2017).
The customer loyalty is known to be constructed through the design decisions and
through sourcing. The designing for the loyal customers needs customer centred approaches
that is known to recognize the want as well as interest of the service recover. Maintaining a
healthy relationship with the customers is very important for customer loyalty and for this the
organization needs to work a lot in that context which will extend beyond itself as no other
company can be world class at everything (Akamavi et al., 2015). Designing for customer
loyalty also needs approaches which are customer centred and will be recognizing the want
and interest of the service receiver.
2.2 Customer satisfaction
Every organization in the business is dependent on the customer satisfaction.
Whenever the business will come “first”, customers will always be coming first and then
comes profit. The customer satisfaction had been always one of the top tools for a business to
succeed. It can also be stated that it is one of the most essential component of the business
strategy and for customer retention (Hwang & Hyun, 2017). In order to maximize the

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satisfaction of the customer, the firms should be selling ideas after the completion of
necessary documents. The satisfaction of the customers are affected by specific products and
perception of quality. It is also one of the key features for creating a long-termrelationship
with the customers. It has been found out that more than 80 percent of the satisfied customers
will be doing business again when they will be having a positive experience. According to
Ali, Dey and Filieri (2015), customer satisfaction is known to be one of the objectives of the
marketing activity which are linked to the process of purchasing as well as consumption with
the post purchase phenomena. Satisfying the customers is an essential element in the
marketing concept. The customer satisfaction can be categorised into two categories where
the first category is known to measure the level of guest satisfaction. It can be stated that he
quality of service provided and the perceived value are the essential factors for satisfaction of
customers.
A customer satisfaction is important since a loyal customer is a treasure for any
company as it is one of the factors which will be helping the consumers in standing out of the
competition. The satisfied customers will be sharing the content more across the social
media; therefore it will be taking the brand places (Hussain, Al Nasser & Hussain, 2015).
Both customer loyalty as well as customer royalty is crucial for the business in the modern
day mainly because customers satisfaction can be easily obtained from the old customers than
the new ones. The other reason is that both the customer royalty as well as satisfaction of
consumers will be having positive impact on the profitability reneges of the firms (Prentice &
Loureiro, 2017). Jiang and Zhang (2016) stated that customers who are usually satisfied with
the service tend to be quite faithful in nature and will repeat its purchase which will help in
increasing the company profitability.
In many industries, it have been found out that the satisfied customers means that the
company will be receiving comparatively fewer complaints and therefore it will reduce the

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cost of handling failures. The researchers have also found out that the satisfied customers are
more willing to pay for the benefits they receive and will also be more tolerant of the
increased price. By satisfying the customers, the organizations can improve the profitability
when their business will expand which will also help the in gaining a higher market share
(Jung, Han & Oh, 2017). The satisfaction of the consumers is also known to serve as an exit
barrier that will be helping the firms for retaining its customers.
2.3 Service quality
There is a presence of great relationship between the customer satisfaction and service
quality. The service quality is known to be an achievement in terms of customer service. It is
known to reflect the service encounter (Kim, Kim & Hyun, 2016). The service industries are
known to contribute highly to the gross domestic product as well as employment in most of
the countries. Although it can be said that delivering high service quality is known to
become a marketing priority for the service-based firms for achieving success.
In terms of service quality, one of the important models of service quality is the
SERVQUAL model, which stresses on the following attributes:
 Reliability
 Responsiveness
 Competence
 Courtesy
 Access
 Credibility
 Security
 Communication
 Tangibles

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 Customer knowledge
In case of airline industries delivering high service quality is known to become a
necessary factor for marketing when the competitive pressure increases. Although it have
been found out that low cost airlines generally do not offer very high quality services to its
customers (Li, Ma & Zhou, 2017). For delivering better services, airlines should understand
the needs and expectations of the customers since the customer’s expectations will be
providing a standard against which they should be judging their performance. Service quality
is usually acknowledged as one of the essential factors of the brand loyalty (Leong et al.,
2015).
It is also used as a strategy for success as well as survival of any business organization
since it will be influencing the customer purchase behaviour and performance of the
organization (Prentice & Loureiro, 2017). For achieving higher level of customer satisfaction,
most of the researchers have suggested that high level service quality needs to be delivered
by the service provider as service quality is an important determinant. The service quality is
the consumer’s overall impression of the superiority of the organization as well as its
services. As nowadays more and more people are awarded of the service quality, many
researchers have worked in this topic. The organizations should be always concerned with the
service quality issue since it is also related to the customer loyalty (Migacz, Zou &Petrick,
2018).
The service quality is always considered to be artificial factor of competitiveness. It
can be said that providing excellent service quality along with high satisfaction of consumers
can be a challenging factor for the industries. The huge development of the service quality in
case of both developed as well as in developing countries has made it quite important for the
organizations for measuring and evaluating the service quality (Nikookar et al., 2015). The

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airlines started to focus on how the service quality improvement will be affecting the
profitability for examining whether service quality is the main driver of customer satisfaction.
Jiang and Zhang (2016) stated that in order to achieve high level of satisfaction, high standard
of standard quality needs to be delivered by the service provider.
2.4 Service recovery
According to Jiang and Zhang (2016), without proper recovery of service, the
unsatisfied customers tends to label the company as no good which might lead to bad mouth
to mouth promotion of the brand. The service recovery is known as the planned process of
returning the dissatisfied customers to a state of satisfaction with a company. Various
research have showed that a good recovery is known to have a positive effect on the
satisfaction, word of mouth and loyalty. Effective recovery of service can help in eliminating
the loss of service failure but also helps in improving higher service satisfaction without any
kind of service failure. Therefore, it can be stated that service recovery is an extra service
which can be used for compensating the customers as a result of service failure that will
convert the defect customers into loyal customers. The service recovery also acts as an
important part in the relationship marketing. In the article “The Impact of service Recovery
on Customer Satisfaction: Case of Iran”, it states that failures in providing proper services is
usually unavoidable in many cases because of many mistakes (Saleem, Zahra & Yaseen,
2017). When such failures take place it leads to customer dissatisfaction. The results have
shown that satisfaction with the service recovery is very much related to trust.
Where there is service failure, the recovery of service is the main process of the firm
which can help the company to retain customers and also minimize the costs related to
customer defection. The factors which are related to the service recovery are cost and brand
image (Seo & Park, 2018). The performance of service recovery is known to have merged as
an essential topic for the researchers presently. Some of the researchers have described the

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role of service recovery performance is crucial for enabling the organizations in order to
create customer satisfaction since the service is usually done by the frontline employees that
serve the customers directly (Seo & Park, 2018). Andreassen defined service recovery as the
actions which the company takesin for seeking out dissatisfaction as a response to the poor
quality of the service.
The other factors which are known to influence the service recovery are employees, strategies
and specially the customers. One of the main factors which is known to affect the service
recovery performance are the frontline employees (So et al., 2017). There had been many
strategies which are usually made by the firms for enhancing the performance of service
recovery. One of the effective strategies was the strategy of thanking customers. The
experience of customers in selling as buying the business transactions can affect the
satisfaction level as well as the performance of service recovery (So et al., 2016).
The performance of the service recovery is essential since based on that the customers
will be repurchasing it. For this reason, it can be stated that the performance of service
recovery is essential for the business and should be meeting up with the customer’s
expectation. Lastly, it can be stated that when the company will be able to set the service
recovery at the correct place, it will be making sure that there is improvement in the
reputation of the brans that will be help in raising the profitability (Vilkaitė-Vaitonė &
Papšienė, 2016).
2.5 Management and training of employees
From the point of service recovery it can be said that excellent services are known to
provide satisfaction to the customers. Without the existence of proper employees, the ability
of performing great services is not possible. Therefore, it is very essential that the right
people should always be chosen for performing the job and train them so that they can

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become the assets of the company instead of liabilities (Hapsari, Clemes & Dean, 2016).
When the employees are trained perfectly, it influences the motivation of the workers towards
the work which then reflects in the service quality. The well trained employees are the
satisfied employees which also increases the customer satisfaction. Therefore, it can be said
that employee training is the key of customer satisfaction (Wang Kao & Ngamsiriudom,
2017).
The staffs should be trained in such a way that can answer basic questions and are
also fluent with communication. Recent research shows that the organization success mainly
depends on the human resource quality (Wang Kao & Ngamsiriudom, 2017). Presently, the
educated employees act as one of the key competitive advantages. For this reason it can be
said empowering employees is the key feature of the modern style of management. The
employees are known to have important role for strategizing the customer satisfaction
especially in case of service organization. It has been found out that there is a presence of
positive relationship between the satisfaction of employees and customer satisfaction (Wang
Kao & Ngamsiriudom, 2017).
2.6 Customer retention
The customer retention is referred to the actions and activities that the organizations
take in order to reduce the customer defections. The main objective of the customer retention
programs is to help the companies retain as many customers as possible which can be
achieved with the customer loyalty or through the brand loyalty initiatives (Wang Kao &
Ngamsiriudom, 2017). It has been found out that some of the some of the companies spends a
larger sum of money on customer acquisition since it can be an effective way to increase the
revenue. However, selling the customers with whom the company already has relationship
can be a much more effective way of growing revenue. SIA have taken many strategies
which works for customer retention plan (Wang Kao & Ngamsiriudom, 2017). Singapore

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Airlines is known to utilize the technological advantage for boosting the efficiency ofthe
customer retention strategy.
There is a presence of correlation between customer satisfactions as well a customer
retention plan. It should be kept in mind that the customers are the most valuable assets
which should be properly kept satisfied. According to Hapsari, Clemes Nand Dean (2017),
the more satisfied the customers are the more they will be retaining. There the fundamental
goal of the firm is to seek to manage and increase the satisfaction of the customer at least in
the era of the competitive global marketing. The retention and attraction of the new
customers are used as drivers for increasing the revenues as well as market shares. For
retaining the customers, it should be kept in mind that whom to satisfy and how effectively
the customers need to be satisfied. One of the main benefits of customer retention is that, it
will positive effect the revenue of the company (Wang Kao & Ngamsiriudom, 2017). The
major benefit which the existing customers provide is that they can help in increasing the
revenue of the company.
There is a presence of correlation between customer satisfactions as well a customer
retention plan. It should be kept in mind that the customers are the most valuable assets
which should be properly kept satisfied. It has been found out that some of the some of the
companies spends a larger sum of money on customer acquisition since it can be an effective
way to increase the revenue (Wang Kao & Ngamsiriudom, 2017). When the customer will be
using the service before and will be having a great customer experience, they are more likely
to come back in the future. The loyal customers might also explore the brand further. There
are presence of various strategies which helps in customer retention. It should also be kept in
mind that gaining a new customer is always expensive than retaining the exiting one (Wang
Kao & Ngamsiriudom, 2017).

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Chapter 3 Research Methodology
3.1 Research purpose
The initial step in research is researching the reason behind the conduction of the
study. It includes identification of the research purpose and setting the stage for the remaining
research program, as it allows all in the study outcomes to know the general project principles
and the development of urgent sense of research (Kumar, 2019). Based on the research
justification and literature review, the research purpose includes a survey on the customers of
SIA researching the reason they choose SIA for travelling to places and the elements that
made them feel satisfaction and dissatisfaction. Depending on the research purpose,
quantitative method has been chosen as the research method.
The study has focused on researching customer satisfaction level of SIA to
development customer loyalty. Therefore, formulating the questionnaire online has been
deemed to be suitable for conducting the same. For going deep into the people using SIA for
travelling places, more authentic data could be accessed from the internet, since it could be
more powerful. In this manner, the data have been highly authentic and effective.
3.2 Quantitative and qualitative approaches
Marketing research is generally of two types, which quantitative research approach
and qualitative research approach.
Quantitative methods Qualitative methods
 Focus on verification and testing
 Emphasis on facts
 Controlled measurement (Mackey &
Gass, 2015)
 Critical and logical approach
 Focus and emphasis on understanding
 Rational approach and interpretation
 Measurements and observations in
natural settings
 Objective “insider view” closer to

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 Hypothetical- deductive
 Result-oriented
 Analytical and particularistic
 Generalisation by population
membership
 Objective “outsider view” far from
data
data
 Process-oriented
 Explorative orientation
 Generalisation by contexts of
individual organisation and contrast
of properties (Taylor, Bogdan &
DeVault, 2015)
 Holistic perspective
After considering the above-mentioned points, it has been identified that the most
suitable approach for the research is the quantitative method. SIA is an airline company
providing travelling facilities to its passengers; the most suitable data is to prove whether it is
successful in terms of number of customers (Flick, 2015). The customers have been extracted
randomly from the online sources and accordingly, the questionnaire survey has been
designed by analysing the response rate for making realistic and objective assessment to the
services offered by SIA. The researcher has emphasised on the facts and outcomes, since the
data have been more exact and persuasive compared to interview. This has been the
foundation and significant primary stuff for the research.
3.3 Data collection
Data collection is defined as the technique of collecting information. Data could be
collected in a variety of ways like telephone, personal interviews, internet and e-mails. It is a
group of survey methodologists as well specialising in the utilisation of quantitative and
qualitative research methods for improving quantitative enquiry and promoting sound
practice (Neuman & Robson, 2014). Since the research is conducted on an airline company,

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the feelings of the customers are the most crucial aspect. Therefore, the questionnaires have
been sent to the customers having experiences on SIA or know something about SIA before.
3.3.1 Primary data collection
For assuring that data collection is necessary for research purpose, the initial step of
collecting primary data is the design of questionnaire (Quinlan et al., 2019). Based on the
research questions and theoretical framework, certain questions have been produced. Some
questions are designed as follows, the data information which obtained from the questions
have been highly beneficial and crucial for the research:
1. The reasons that you choose Singapore Airlines?
2. When you are booking flights on SIA, which components are you concerning about?
3. What drives you to visit again to SIA?
4. What type of deficiencies does SIA have?
5. Do you think the individual service of SIA is effective?
6. Do you think SIA provides better services than the other airlines?
Method of primary data collection and sampling:
After designing the questionnaire, the researcher has started to search the respondents
capable of becoming the possible respondents. The researcher has sent the questionnaire to
the potential respondents via internet and the respondents have been selected randomly. For
selecting the respondents, the researcher has used probability sampling method in the form of
simple random sampling, since it provides equal opportunities to all respondents of being
chosen in the survey process (Choy, 2014). For this research, the researcher has sent the
questionnaire to 100 respondents, out of which 30 customers of SIA have been chosen for
fulfilling the research purpose.

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3.3.2 Secondary data collection
Mainly, the auxiliary data are from printed sources like magazines, books, trade
newspapers and periodicals and electronic sources like online services or packages, CD-ROM
encyclopedias and the internet. The books are the general resources for the research
associated with theoretical support (Walliman, 2017). Daily information could be obtained
from the journals, which could provide valuable resources. By using the journals, the
researcher has obtained the latest views coupled with research and development in particular
areas. In terms of data collection, internet is deemed to be valuable, especially for few
professional websites. The secondary data obtained from magazines, textbooks and the
internet are used for supporting the background of the research organisation, case studies and
literature review.
3.4 Data analysis
For evaluating the collected data, the researcher has used Microsoft Excel application.
By using this tool, the researcher has converted the responses into meaningful graphs, tables
and charts for better understanding of the readers. In addition, the researcher has used the
statistical tools present in the application like regression analysis.

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