SAGE Open (Mar 2022)

Options to Improve Service Quality to Enhance Value Co-Creation for Customers in the Aviation Industry in Taiwan

  • Kuo Cheng Chung,
  • Paul Juinn Bing Tan

DOI
https://doi.org/10.1177/21582440221079926
Journal volume & issue
Vol. 12

Abstract

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In recent years, domestic and international airlines alike have been faced with a number of challenges, including economic recessions, rising oil prices, and competition from other convenient travel alternatives, which have caused Taiwan’s various airlines to face substantial financial difficulties. In this study, a questionnaire was administered to examine the service quality of the aviation industry and strategies for aviation industry management were proposed from the perspective of customer value co-creation. The analytic network process approach was employed to elucidate the interactive relationships between evaluation criteria from the managers’ perspective. The entropy method was used to compute the cognitive gap between customers and managers while identifying the strategic means of diminishing these cognitive differences. The analysis results indicated that a company’s understanding of its customers can be enhanced through a four-dimensional (Dialogue, Access, Risk assessment, and Transparency) interactive model. The primary value of the present study is that it combines customers’ concepts regarding value creation with their perceptions of service quality. By doing so, it offers guidance to airlines regarding service quality that can assist them in developing sustainable competitive advantages.