Using system dynamic modeling approach for improving service quality on Saudi Arabian Airlines

Introduction

Transport by air is considered the transportation service of both scheduled as well as non-scheduled passengers, transport, and freight of mail with commercial objectives. The aviation industry of Saudi Arabia has been advancing at a rapid rate for the past decade. Moreover,  the development in the technological aspects has led to further growth of the airline industry because of its significance in the assistance Of international trade, tourism activities, and international investment. Due to the significant role Saudi Arabia’s airline industry has in the world, this industry of the country is considered to be the center of globalization the country. The developing airline industry facilitates scope along with challenges to the entities of business in the country(Alotaibi, 2015).  The opportunities are created because of the growing demand for services in this industry. Growing demands of the consumers, as well as the increased level of competition, have resulted in the availability of opportunities in the airline service  The aviation industry has been under the direct control of government regulation. The government enterprise, Saudi Airlines, has been regulated in Saudi Arabia under the protection of the country’s government with no existing competitor. However, in the process of the reforms, the Saudi government made the decision to provide opportunities in the industry to various foreign airline companies.

Overview

The research paper encompasses a system dynamics model for the improvement of service quality in the airlines of Saudi Arabia. Various simulation scenarios were used for the determination of the service quality in Saudi Arabia for the satisfaction of the consumers. The research sampling was devised on the sampling method of the luster. The sources for the secondary data collection encompassed the internal; sources from the database and records. The confirmation of the system dynamic model was validated by the use of authentic data in the past two years. The outcomes of the research study recognized various factors for the success of quality management that significantly affected the service quality of the airline industry of the country(Deal & Schunk, 2004).

Aims and objectives

The aim of the research paper is to find out the satisfaction of the customers by providing high-quality service by Saudi Airlines. A structured questionnaire has been used and distributed for the effective collection of data(Ekanayake et al., 2003). The objective of the research paper has been to simulate all the parts of the service quality of audio Arabia airlines through the system dynamics model which encompasses the satisfaction of the customers and the quality of services.

Rational/motivation for research

The fundamental rationale for this proposal is to reflect on the improvement of the quality of service in Saudi Arabian airlines.  The discussion of the effectiveness of the system dynamics modeling approach is also the motivation for the purpose of the research proposal

Research questions

For data collection for the research paper, a structured questionnaire had to be prepared. The questionnaire assisted in deriving information regarding the effectiveness as well as the satisfaction of the consumers in the airline industry of Saudi Arabia. The questions that were asked to the customers as well as the individuals belonging to the airline industry had to be tested from the results.  The questions that were included in the research paper are stated below:

  • Are the customers satisfied and happy with the availability of tickets on Saudi Airlines?
  • Are the customers happy with the price of the airline service which includes the price of airline tickets in Saudi Arabia?
  • Are the customers satisfied with the charges for cancellation of the tickets of the airlines of Saudi Arabia?
  • Are the customers satisfied with the charges for the rerouting of their airline tickets to Saudi Arabia?
  • Are the customers satisfied with the services of the domestic travel agencies of the country?

Literature review

Delivering service of high quality to the customers is the main strategy for survival in an industry that is highly competitive  Transportation service through airlines is one of them. The quality of services has significant implications on the competitive advantage over the businesses by keeping maintaining customer patronage increase the share in the market.  It is fact that service quality has a direct implication on the behavioral intention of their line customers or has an indirect implication on the customer’s intention through the satisfaction of the customers. Thus, the quality of service affects the level of satisfaction of the customers and the customer behaviors n aspects of positive promotion repeated purchases, and feedback of the customers(Ismail, Muscarinic & Elsamadicy). The service quality of Saudi airlines and the satisfaction of the customers are parallel.  The research study has encompassed the identification of the level of satisfaction of the customers of Saudi Airlines with the quality of service. This has been understood in the research paper through the use of system dynamics which is a simulation approach. This approach facilitates integrative, structured frameworks for dynamic and complex systems. System dynamics is a varying approach that encompasses the computer and the cognitive simulation tools for the comprehension of complex management issues (Khatib, 1998). Further, there is a widely scaled belief that the system dynamics is basically used to model issues from a strategic point of view. The resultant is the capacity growth dynamics is a set of prominent loops (Zhou, Liang & Rogers, 1996). It is further noted that the information of the delivery date has very insignificant implications whereas the loop that associates the sale in the Saudi airlines has significant implications on the dynamics to a great extent. The method for the identification of vital information flows by the application of the model of system dynamics. The basic premise of the methodology in regards to the system dynamics the structure of the system determines the behavior By using the method of the analysis of the loop, the structure of the feedback loop of the system of the supply chain is evaluated(Kollikkathara, Feng & Yu, 2010). The postponement strategy proposes a framework that integrates various considerations that are relevant to the international supply chain in the industry of Saudi Airlines. Postponement is crucial in such a context as it is vital to apply to consider the tariff and international transfers.  Moreover, it is further very important to consider the account of implications of the postponement on the entire costs in Saudi Airlineswhich is important to provide enhanced service quality to the customers (Khan & Iqbal, 2005).

Methodology

The obtainment of data from the service users of Saudi Airlines can be conducted through a close-end, self-administered questionnaire.  The closed-end questionnaire can be translated into Arabic for the convenience of the respondents in obtaining the answers in a short duration of time. The entire method has to be processed in complete anonymity.  The questionnaire can be divided into two key sections(Wei et al., 2008).  Section I can comprise the basic and conventional questions which would encompass the travel class, nationality, and travel destination. On the other hand, section II consisted of 6 questions that would represent the basic services of Saudi Airlines, and an assessment of the service quality can be done(Ota et al., 2003). The areas that can be focused on are as follows: ticket prices, availability of the air ticket,  ticket cancellation, travel agencies’ services, ticket charges for rerouting, along with the AlFursan ( a loyalty program of  Saudi Airlines).  The use of the Five-point Likert Scale can be done for the evaluation of the satisfaction intensity as the service quality can be done(Papageorgiou, 1990).

In order to structure the system dynamic model in accordance with the service quality that is offered to the customers of Saudi Airlines, the following steps are to be considered:

  • Categories the industry into various sections. In this case, the sale flow can be divided into three parts that are:  cash flow, customers, and orders.
  • Is the determination of the different variables state the association between them regarding service quality?

This framework is stimulated in Saudi Arabia Airlines which is creating 3 varying parts.

  • The rate of communication is denoted as the communication rate between the already existing customers of Saudi Arabia airlines and the potential customers.
  • The potential communication rate with the customers refers to the total communication of Saudi Airlines among the potential customers.
  • The communication between the individuals who have the potential to be the customers of Saudi Airlines and the existing customer of Saudi Arabia airlines. This refers to the varying number of potential customers who are associated with the company. This factor affects the order rate and has implications for the potential rate of communication.

Research Philosophy

The contribution of the research proposal is regarding the improvement of the quality of service that is imparted by Saudi Airlines through the integration of the system dynamics modeling in its frameworks(Pereira et al., 2003).

Research approach

The approach that has been used in the research proposal is regarding the identification of the various factors and dimensions of airline services determined by the stages of facilitation of enhanced services to the customers(Rumbaugh et al., 1991). The approach will also encompass various loyalty assessments that would encompass the behavioral and attitudinal aspects of loyalty which will be developed and applied for the evaluation of the loyalty level suitability for the research(Wang & Mills, 2006).

Research strategy

The data can be analyzed by using different types of sofa statistical techniques. Analysis of factors can be used for the identification of the key factors of the both service quality of the airline as well as the loyalty of the passengers. The segmentation of the passengers using the Saudi airline along with the psychographic techniques can be performed by using techniques of cluster analysis(Semwanga, Nakubulwa & Adam, 2016).

Data collection methods

In order to have proper administration of the research, convenient sampling can be done. The respondent group can include individuals who are working in the airline industry of Saudi Arabia along with pursuing degree courses in different institutions through distance learning and bachelor’s degree(Sarimveis et al., 2008).  The researchers can personally administer the structured questionnaire to the selected respondents.

Sampling

In order to evaluate the use of the system dynamics model for the provision of enhanced quality of service, the sampling for the research can be done on the sampling method of the cluster random. The method of random cluster sampling can be selected by the technique of probability sampling. The respondents will be selected randomly for the evaluation of the service quality that is provided by Saudi Airlines by the integrating system dynamics modeling approach(Tangkitsiri et al., 2013).

Conclusion

The contribution of the research in the service quality along with the satisfaction of the customers by the use do system dynamic modeling is evaluated together with the contribution to the airline of Saudi Arabia. There is good potential for the conductions of the proposal in the future of Saudi Arabia Airlines. Hence, it can be stated that the service quality of Saudi Airlines can be enhanced through the integration of the system dynamics modeling.

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