This document contains a term paper on airline services that was prepared for a marketing professor. It includes sections on group profile, letter of transmittal, acknowledgements, contents, literature review, objectives, methodology, hypotheses development, proposed model, and results of regression analysis. The key findings are that service quality, value, and customer satisfaction have a significant positive impact on customer behavioral intentions, while customer sacrifice has a negative impact. The study aims to analyze factors affecting customer purchase decisions and develop a model showing the relationship between explanatory and dependent variables related to airline service usage.

1. 1
Term paper
On
Airlines Services
Prepared For
Shehely Parvin
Associate Professor
Department of Marketing
Faculty of Business Studies
University of Dhaka
Prepared By
DIVERGENT
Sec A
19th Batch
Department of Marketing
Faculty of Business Studies
University of Dhaka
28th November 2016

2. 2
Group Profile
DIVERGENT
Section: A, 19th Batch
SL. No Name Roll
01. G.M. Fahim 13
02. Afroza Khatun 23
03. Anika Aftab Chowdhury 59
04. Md. Nur Hossan 107
05. Mohsin Uddin Ahmed 125
06. Mousumi Hossain Mou 169
07. Md. Kamal Hossain 175
08. Munkasir Mushfiq 179
09. Farhana Tasneem 185
10. Amina Noor Mimi 197

3. 3
Letter of Transmittal
28th November 2016.
Shehely Parvin
Associate Professor
Department of Marketing
Faculty of Business Studies
University of Dhaka
Subject: Submission of a term paper.
Dear Mam,
It is our pleasure to submit the term paper on “Airlines Services through SPSS software” as a part
of Services Marketing, Course no. 421 of our BBA program.
We have put our best effort to prepare this term paper which enriched our practical knowledge on
Services Marketing. We tried to reflect the practical operational aspects of these which are related
to sectors.
We are pleased to provide you with this term paper with necessary notes, remarks, tables,
references and we shall be available for any clarification if required.
Sincerely Yours,
Group: DIVERGENT
Section: A, 19th Batch
BBA 8th Semester
Department of Marketing,
Faculty of Business Studies
University of Dhaka

4. 4
Acknowledgement
We would like to express our gratitude to the most Omnipotent and Omnipresent Almighty Allah,
whose invisible guidance helped us to complete this Term paper.
We would like to thank our course instructor Shehely Parvin Mam for his inspiring guidelines,
valuable suggestions, constructive criticism and constant help throughout the work and in
preparation of this paper.
Besides we are also grateful to the authors, researchers and article writers whose books and reports
have helped us to prepare our Term paper successfully.
Finally, we would like to take the opportunity to express our wholehearted gratitude to our fellow
friends, near and dear ones who offered encouragement, information, inspiration, and assistance
during the course of constructing this paper.
We thank them all from the core of our heart.

5. 5
Contents
Abstract.............................................................................................................................................6
Introduction .......................................................................................................................................6
Literature Review...............................................................................................................................7
Impact of service quality on the behavioral intention of customers .....................................................7
Impact of value on the behavioral intention of customers...................................................................8
Impact of customer satisfaction on their behavioral intention .............................................................8
Impact of sacrifice on the behavioral intention of customers ..............................................................9
Relationship between the three four variables and behavioral intentions ...........................................10
Objective of the study.......................................................................................................................11
Methodology....................................................................................................................................11
Hypotheses Development..................................................................................................................12
The Proposed Model.........................................................................................................................13
Results of Multiple Regression Analysis ............................................................................................13
Interpretation of Result .....................................................................................................................13
Implications for International Marketing ............................................................................................14
Limitations.......................................................................................................................................16
Conclusion.......................................................................................................................................16

6. 6
Factors Affecting Consumers’ Behavior Intention: Development of a RegressionModel
Abstract
We are living in a period where practically every part of our life is being digitalized. Thus, Airlines
benefit business has turned out to be endlessly well known we have looked into the effects that
quality, esteem, and consumer loyalty have on purchaser conduct goal while making aircraft
administrations buys. We have connected different relapse examination as the factual device to
distinguish and comprehend the variables influencing a buyer's airline's services purchases pattern.
The explanatory variables according to their importance in explaining the dependent variable are
customer sacrifice, service quality, and service value and customer satisfaction.
Introduction
Modern business is ever-changing. The concept of a boundary-less market has made the
competition fierce. The perishability and inseparability of services have raised the bar in this case.
The airline's service is a sensitive and conservative industry in Bangladesh. Once, there was only
Biman Bangladesh serving the nation with aviation services. With the change of time, some other
companies have joined the poll like US-Bangla Air, Novoair etc. They strive to keep themselves
updated with the detailed customer database. Customers’ opinion and feedback have become
crucial for airlines services as the companies continuously work on service improvement.
In this study, we tried to figure out the relationship between service qualities, the value they offer
and the level of satisfaction derived from them. In addition, we identified the impact of these
variables on the purchase behaviour of those customers. We worked on the leading and most used
airlines companies in this country. As services are intangible, their value or use cannot be judged
afterwards. However, there are some determinants of purchase decisions like price, time and effort
to acquire the service; reliability, consistency, and dependability; employee behaviour and skills;
the environment of the aircraft; timeliness and availability of service etc. The absence of
internationally recognized airline brands also plays a significant role in choosing these companies.
However, the study was run on economic class. Therefore, price played the most significant role
in determining the purchase decision.

7. 7
Literature Review
Understanding the prerequisite and outcomes of customer satisfaction is crucial for gaining long-
term success in the services business. This study shows the effect of service quality, the sacrifice
required getting the service, the amount of value the service provides, and the overall satisfaction
customers get using the service on the behaviour of the customers. The research model was
examined with the empirical approach with data collected from one hundred users of airline
services available in Bangladesh. The results show that the three variables, which are value,
satisfaction, and quality, have a significant and positive impact on the post-purchase behaviour of
customers. Again, the variable, satisfaction, is negatively related to behavioural intentions. The
period of research was 2005 – 2016.
The rapid development and competition of air transport services, in both developed and developing
countries, has made it important for companies to measure and evaluate the quality, value as well
as the satisfaction of service encounters. During the past two decades, service quality has become
a major area of attention to practitioners, managers, and researchers because of its strong impact
on business performance, lower costs, and return on investment, customer satisfaction, customer
loyalty and gaining higher profit.
Impact of service quality on the behavioural intention of customers
While regulation envisages increased safety of passengers and improved sustainability of full-
service international airlines, compliance adds to the total cost of operations. It is a cost that airlines
must bear on their own - without passing on to passengers. Since new regulations are given for the
global airline's industry, airlines must engage in a compliance program that can optimize business
processes and transform operations (Lovelock, 2007).
The dimension of reliability and customer service, convenience and accessibility and in- flights
services had a positive effect on the airline image which also shows that the passengers of airlines
were quite satisfied with the quality of the service under these dimensions. They are most likely
also to form a strong image of that airline. Notably, the airline image formed from the service
quality dimensions also had a significant positive influence on behavioural intentions. This implies
that passengers who form a positive overall impression of the image of the airline are more likely

8. 8
to fly the airline again and recommend the airline to other passengers. Quality is the prime factor
that customers seek when buying a product.
Impact of value on the behavioural intention of customers
In the airline industry, Virgin Atlantic has set the standard for excellent customer care.
The value concept exists only to a limited extent in the marketing literature. After having studied
the theories of several consumer behaviour researchers, we found that “value” is constantly used
in a context meaning values of consumers. However, discuss another meaning of value –the value
or utility the consumers receive when purchasing a product. Monroe defines customer-perceived
value as the ratio between perceived benefits and perceived sacrifice.
In-flight entertainment has headed the agenda; with individual TV screens provided for all
passengers are an added value.
In the field of airline services, soft factors were considered to have significant importance because
of the emotional dimension of travel. The evaluation of service elements and perceived customer
value can be considered to be affected by socio-demographic and contextual demographic
variables. In the evaluation of soft versus hard service elements, cultural background and travel
experience have significant impacts (Wang and Pizam, 2011).
Service quality has become a major issue in the airline industry. Major developments in customer
service have taken place since the early 1930s: the introduction of flight attendants, the continuous
improvement of airline catering, the introduction of different classes, improvement of ground
services, and the introduction of airport lounges. However, entering the 1990s we saw airlines
place emphasis on cost reduction and cutting back in-flight services. In the new millennium, we
saw a renewed focus on product features and service quality, especially in business class and first
class (Kozak and Andreu, 2010).
Impact of customer satisfaction on their behavioural intention
According to the educational level, the expectation of the customer differs. The gap between
customer's expectations and perceptions in airline service attributes help top managers to
understand which services are important to customers and which services are consistent to
customers’ perceptions. In the Airlines industry customer complains plays a vital role in customer
satisfaction. There are two types of complaint, controlled complaint are those which is under

9. 9
control such as fare related problems, flight delays, misbehaviour by staff, etc. and uncontrolled
are those such as weather problems, technical fault, etc. So for solving these problems, trained
staff is required who can effectively minimize or handle these problems (Beritelli, 2000). Where
the existing literature relates to organizational culture and customer satisfaction, those links are
either theoretical or indirect.
Customer satisfaction also depends on how companies are maintaining a relationship with the
customers. How the staffs are behaving with the customer, entertainment facilities, timing plays a
key role in customer satisfaction in the Airlines Industry (Brassington, 2007).
One of the main developments in the current aviation industry is the growing popularity of low-
cost airline with high-quality service. It has been noticed that customers are getting attracted
towards the intangible service where monetary value is less than the services being provided.
(McDaniel and Gates, 2012).Cabin appearance Staff should be trained well. They should also give
importance to build effective communication in all locations.
Impact of sacrifice on the behavioural intention of customers
Companies need to turn the question inside out. Instead of asking how we did, companies need to
ask what the customer, want. That means understanding what we call customer sacrifice: the gap
between what customers settle for and what he wants exactly.
There are negative reviews we see about time issues in getting airline services. The Aggeliant Air
gets ahold of anyone at the call centre, minimum wait times on hold are 30 minutes and I've sat on
hold for over an hour, about a flight they cancelled only to have the call ended...and call back in
and wait again. You will also be treated with an "oh well, we don't care" attitude that they have
messed up your plans or trip (Pike, 2008).
Some customers find it an efficient use of their money. As long as you are aware of baggage costs
and rules, as well as seat reservation fee, you will be pleasantly pleased with your experience. The
best part is a fast, non-stop direct flight at a good price (Sweeney, 2014).

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The relationship between the three-four variables and behavioural intentions
The behavioural intention has been defined as the customers’ subjective probability of performing
a certain behavioural act. In this regard, three A study of low-cost airline carriers 353 behaviours,
in particular, have been associated with profitability and the market share of a firm; these customer
behaviours are (1) word-of-mouth; (2) repurchase intention; and (3) feedback to the service
provider.
Word-of-mouth refers to a flow of information about products, services, or companies from one
customer to another. As such, word-of-mouth represents a trusted external source of information
by which customers can evaluate a product or service. Some researchers have found a direct
positive relationship – with satisfied customers engaging in more word-of-mouth (Eugene, Jamie
and Baker, 2005). With regard to the second behaviour (repurchase intention) noted above, many
researchers have found a positive association between satisfaction and repurchase intention.
Research suggested that a satisfied customer might switch to an alternative supplier with a view to
increasing the present satisfaction level whereas a dissatisfied customer might remain with the
existing supplier because no better alternatives are available. And it is more probable if the
competitor maintains an online customer base (Jayaraman and Puvaneswary 2009).
The third behaviour noted above – customer feedback – refers to the transmission of negative
information (complaints) or positive information (compliments) to providers about the services
used. Such information can be useful for providers in identifying areas in which adjustments of
performance are required. Derlund did conclude that dissatisfied customers are significantly more
likely to provide negative feedback than are satisfied customers to provide positive feedback. It is
presumed that customers who provide negative feedback are seeking to achieve some form of
compensation for unmet quality of services; in contrast, the provision of positive feedback is often
perceived by customers as not being rewarded (Hoffman, 2006).

11. 11
The objective of the study
Our aim was to figure out –
 The list of values individual companies provide to convince them to purchase the service
from them.
 The gap between expectation and perception in the airline service in Bangladesh.
 The quality and value addition required to reach the international level of services.
 The influence of different explanatory variables on dependent variables.
 Developing a model to determine the intensity of the relationship between dependent and
independent variables.
 Identifying the importance of different explanatory variables.
 Addressing the impact of price on economy class customers’ purchase decision.
Methodology
The study utilized both primary and secondary data. Hypothetical part of the article incredibly
utilized secondary sources, for example, an audit of insightful journals, though the quantitative
discoveries and interpretations are on the premise of primary data.
The means in inspecting outline process were as per the following:
Target population: Our study cantered the people as testing components, who settle on buy
choices and have their own pay, as wards will be less capable to judge value utility textures, mark
name and COO suggestions, and general predispositions for procurement. Our testing unit got to
be business workplaces, where all representatives and customers are acquiring individuals and
most conceivably settle on buy choices and who prefer economic class. We considered just the
official level representatives as a result of their pay level textures with the airline's services
purchases. Also, business workplaces can have a more noteworthy exhibit of differentiated social
foundations and along these lines can produce more extensive perspectives. The degree of the
study was Dhaka city (real business territories); abroad and time was September 2016.
Sampling technique: It was a customer entered the study on those, who generally have the limit
and propensity to buy and expend the administrations in connection to carriers in a standard
premise. By and large, we recognized the general population who are the present purchasers of

12. 12
airlines services. After that, on the premise of unique holding number, methodical examining
strategy connected and 125 forthcoming respondents distinguished and 80% of them discovered
fitting as respondents. Among the 125 respondents at long last 100 were considered as a result of
irregularities in reactions.
Primary data was collected through a structured questionnaire where the dependent variable was
‘purchase or consume airlines services in a regular basis (regular basis), which was measured by
interval scale using five points where ‘5’ denoted strongly agree and ‘1’ denoted strongly disagree.
Independent variable was additionally measured by five points interim scale as like a dependent
variable. We utilized various regression analyses, utilizing SPSS program, to get the desired
results.
Hypotheses Development
We have developed the hypotheses based on the insights gained from the related literature review.
The independent variables have been developed by considering the factors that directly impact the
dependent variable. The hypotheses are consecutively mentioned and the variable names are
specified in parentheses after hypotheses in the following:
H1: It is hypothesized that Customer Satisfaction will change in Behavior Intentions. (Customer
Satisfaction)
H2: It is hypothesized that Customer Sacrifice has a significant effect on Behavior Intentions.
(Customer Sacrifice)
H3: It is hypothesized that Service Quality and Behavior Intentions are positively co-related.
(Service Quality)
H4: It is hypothesized that Perceived Service Value has an effect on Behavior Intentions to gain
competitive advantage. (Service Value)
H5: It is hypothesized that there is a co-relation among Consumer Buying Intention, Service
Quality, and Service Value. (Behavioral Intention)

13. 13
The ProposedModel
In the previous section, we have proposed the independent variables that may influence the
dependent variable ‘ behavioural intention’. Now we are proposing a linear relationship between
the explanatory variables and dependent variable according to the CLRM (Classical linear
regression model).
Y(behavioral intention) = α +β1(sacrifice) + β2(service performance) + β3(service value) +
β4(satisfaction)+ε
Where,
Y indicates the dependent variable ‘ behavioural intention’ α is the constant term, β1, β2…β4are
the coefficients of explanatory variables and ε is the error term.
Results of the Multiple RegressionModel
The table of the model summary indicates that the adjusted R-square is -.017. As we have more
explanatory variables than observations in our regression formula, so the result of adjusted R-
square is negative.
The ANOVA table shows the significance is greater than F-value, so the null hypothesis is rejected.
As a result, the alternative hypothesis is accepted.
In the table of coefficients, the values of beta are close to each other. So, the values are inflated.
Interpretation of Result
In the model summary coefficient of determination ( R2 ) is2.4% which indicates that sale will be
increased if the variables pose positive reaction, as well as this statement, is slightly supported by
the positive correlation of the variables (R) is 0.157. And the adjusted R2 also supports the value
of R2 with a percentage of 1.70%. The standard error of the estimation is insignificant in this
regard.

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Table 2 explains the dependability of the model as the F statistic showed very high value with no
significance level.
Table 3 provides explanatory variables that have a contribution to the dependent variable. It
provides each explanatory variable with the level of contribution to explain the dependent variable
(y).
According to the unstandardized beta (β) coefficient and standardized beta (β) coefficient, we can
arrange them according to their importance in explaining the dependent variable (Y). The impact
of ‘sacrifice’ became most important as its unstandardized beta (β) coefficient and standardized
beta (β) coefficient are 0.27 and 0.27 respectively. The next important explanatory variable is
‘service quality’, having the unstandardized beta (β) coefficient of 0.195 and standardized beta (β)
coefficient of 0.195. The third important contribution made by ‘service value’, because its
unstandardized beta (β) is 0.358 and standardized beta (β) is 0.195. The last one is "satisfaction"
its unstandardized beta (β) is 0.366 and standardized beta (β) coefficient is 0.366. The revised
model after the analysis is shown below:
Y (Behavioral Intention) = α +β1 (Sacrifice) + β2 (Service Quality) + β3 (Service Value) +β4
(Satisfaction) + €
Implications for International Marketing
Bangladeshi Airlines have a highly significant potential market when it comes to international
marketing. As a developing country, Bangladesh has been facing some major issues in Airline
services in case of keeping pace with the quality and services like those of other foreign Airline
services companies. The result that we have come across throughout this survey and analysis holds
that Bangladeshi Airline will have major importance in the international market in terms of quality,
value, economic significance.
The significance of the branding and re-branding: The State airline of Bangladesh “Biman
Bangladesh Airlines’’ has been struggling to survive. A major reform in air transport occurred in
2007 when the state-owned Biman Bangladesh Airlines became a public limited company. As an
immediate measure aimed at cutting costs and increasing efficiency, its workforce has been
reduced by 44 percent and loss-making international and domestic destinations have been closed

15. 15
down. However, it seems unlikely that it can be rescued or sold to private investors since its assets
are virtually exhausted. A more rewarding approach for Government efforts may be to aid the
Bangladeshi private carriers to acquire Biman’s route operating rights and to negotiate royalties
with foreign carriers wishing to fly into Dhaka. (Bangladesh Transport policy Note by world
bank).In fact in order to attract economically targeted consumers of Bangladesh worldwide or even
in the domestic flight routes, Bangladeshi govt. needs to brand its Airline in a more prudent way.
The subsequent branding and re-branding of Biman Bangladesh can immediately attract all those
airline services using customers who want to have quality and value-added service as well as lesser
prices from Bangladeshi Airlines.
The other airline services operating in Bangladesh, for example, US-Bangla Airlines, Novo Air,
Regent Airways, and United Airways have already placed specific positions in the minds of the
airline services consumers of Bangladesh in domestic routes. Though they have already started
operating airline services in international market too, they also need to keep sustaining in the
international market by providing value-added services with pra ice cost limitations for their
prospective consumers of international flight routes.
Mutually Beneficial Transit Co-operation with South Asia Neighbours: This type of mutually
beneficial transit co-operation can prove to be a great profit for a country like Bangladesh and its
emerging privately owned and hardly sustaining state airline services. It will have the benefit of
quality services from both the joint ventured/licensing companies, almost the same type of
behavioural intentions from consumers because of being South Asians and other immediate cost
benefits.
Consideration of Foreign Airline Services: Bangladeshi consumers have a predilection for
foreign airline services companies which can be generalized from every point of view. But in the
case of buying local airline services, they consider the price fact and quality of local airlines. The
quality services with less cost benefit from the local airline's companies in case of foreign routes
are still not/less available. Thus, it can be said that there is still enough room for new competitors
and improvements by the local airline companies and more should be done to increase and change
the current impressions of Bangladeshi Airline services.

16. 16
Limitations
The research reflects the view of respondents who may have different income range and that
influence their purchase decisions and judgments. Many respondents didn’t want to participate in
the survey and many may not understand the questions very well, which is also a limitation.
Because of time and cost limitation, a sample of a hundred respondents is selected for the research
survey.
Conclusion
The consistent utilize items airlines services can have more significance in the general public in
view of its more extensive impact on family unit consumption examples. As our model turned out
to be factually huge with a balanced R2 of 0.24, we are endorsing the utilization of the model by
the specialists. We have dissected the ramifications of all the huge factors from the point of view
of advertising, more particularly universal showcasing.

17. 17
References
1. An, M. and Noh, Y. (2009). Airline customer satisfaction and loyalty: impact of in-flight
service quality. Serv Bus, 3(3), pp.293-307.
2. Chang-JuckSuh, and 강미라, (2008). Effects on Customer's Perception and Behavior
Intention of Airline Alliance Service. jounalofkoreaservicemanagementsociety, 9(3),
pp.69-87.
3. Etemad-Sajadi, R., Way, S. and Bohrer, L. (2016). Airline Passenger Loyalty: The Distinct
Effects of Airline Passenger Perceived Pre-Flight and In-Flight Service Quality. Cornell
Hospitality Quarterly, 57(2), pp.219-225.
4. Geraldine, O. (2013). Effects of airline service quality on airline image and passengers
loyalty: Findings from Arik Air Nigeria passengers. Journal of Hospitality Management
and Tourism, 4(2), pp.19-28.
5. Harris, J. and Uncles, M. (2007). Modeling the Repatronage Behavior of Business Airline
Travelers. Journal of Service Research, 9(4), pp.297-311.
6. Kagnicioglu, C. (2016). SERVICE QUALITY PERCEPTION IN SERVICE SECTOR:
AN APPLICATION IN AIRLINE CHECK-IN SERVICES. Pressacademia, 3(2), pp.156-
156.
7. Lerrthaitrakul, W. and Panjakajornsak, V. (2014). The Airline Service Quality Affecting
Post Purchase Behavioral Intention: Empirical Evidence from the Low-Cost Airline
Industry. International Journal of Trade, Economics and Finance, 5(2), pp.155-158.
8. Namukasa, J. (2013). The influence of airline service quality on passenger satisfaction and
loyalty. The TQM Journal, 25(5), pp.520-532.
9. Rhoades, D. and Waguespack, B. (1999). Better safe than service? The relationship
between service and safety quality in the US airline industry. Managing Service Quality,
9(6), pp.396-401.

18. 18
Table 2
ANOVAb
Model Sum of Squares Df Mean Square F Sig.
1 Regression 2.425 4 .606 .596 .666a
Residual 96.575 95 1.017
Total 99.000 99
Table 1
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
1 .157a .024 -.017 1.00825455

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Table 3
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
T Sig.B Std. Error Beta
1 (Constant) -1.388E-16 .101 .000 1.000
REGR factor score 1
for analysis 1
-.133 .136 -.133 -.981 .329
REGR factor score 1
for analysis 1
.185 .147 .185 1.257 .212
REGR factor score 1
for analysis 1
-.079 .119 -.079 -.668 .506
REGR factor score 1
for analysis 1
.059 .129 .059 .457 .649