Effect of Service Quality on Customer Loyalty. Does Cultural Orientation Matter? Evidence from African Airlines
Abstract
The general objective of the study was to determine the moderation effects of cultural orientation and customer satisfaction on the relationship between service quality and customer loyalty among selected African airlines. This study was mainly informed by Expectation Disconfirmation and Hofstede's Cultural Dimensions theories. An explanatory survey research design was employed in the study. The study targeted 256,254 customers drawn from 9 Airlines in Africa which included Kenya Airways, Ethiopia Airlines, Egypt Air, Rwand Air, South African Airways, Mozambique Airlines, Air Zimbabwe, Air Tanzania and Air Namibia. Stratified and simple random sampling techniques were used to select a sample of 750 customers. This study used questionnaires to collect data relevant to the study. The reliability of the research instruments was computed using Cronbach alpha statistical tests. The study tested three hypotheses for direct, moderation and mediation effects; the first hypothesis was tested by Multiple Regression Analysis Model; the second by Hierarchical Linear Modelling (HLM), and the third was tested by the Sobel test using the four steps mediating models. The study concurred with the previous studies that all five service quality dimensions had a direct and significant effect on customer loyalty. The study findings showed that cultural orientation significantly moderated the relationship between service quality and customer loyalty (β=0.44, p<0.05). The study, therefore, concluded that high cultural orientation strengthened the relationship between service quality. The study recommends that African airlines must invest heavily in cultural orientation to foster identity, commitment, attitudinal, and behavioural loyalty and the future ability to regulate consumers' behaviour. The passengers should therefore be at the centre stage of the airline's operational strategies.
Keywords: Cultural Orientation, Customer Satisfaction, Service Quality, Customer Loyalty
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