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Journal of Professional Services Marketing

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Service Quality in the Airline Industry

a
Kevin M. Elliott & David W. Roach
a
Assistant Professor, School of Business, Arkansas Tech University, Russellville, AR, 72801
Published online: 05 Nov 2010.

To cite this article: Kevin M. Elliott & David W. Roach (1993) Service Quality in the Airline Industry, Journal of Professional
Services Marketing, 9:2, 71-82, DOI: 10.1300/J090v09n02_06

To link to this article: http://dx.doi.org/10.1300/J090v09n02_06

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 Service Quality in the Airline Industry:
Are Carriers Getting an Unbiased
Evaluation from Consumers?
Kevin M. Elliott, PhD
David W. Roach, PhD

ABSTRACT. This article identifies a phenomenon that may be in-

fluencing passengers' evaluation of airline carriers. The results of
this study suggest that consumers may systematically distort their
evaluation of airlines. Perceptions about service quality attributes are
seemingly influenced more by factors internal to the individual than
by the actual attributes available for observation. Implications are
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also identXed that may aid airline executives to address the com-
plex, yet critical issue of "systematic distortion."

INTRODUCTION

Human perception may be guided by preexisting cognitive struc-

tures known as schema (Fisk and Taylor 1984). Schematic process-
ing, however, may lead to systematic bias and perceptual errors
(Kozlowski and Hirsch 1987). One type of error occurs when an
individual distorts hisher evaluation of another person due to lim-
ited or erroneous information. For example, a person may bias
hisher evaluation of another individual by distorting interrelation-
ships among various behavioral characteristics. A person who is

Kevin M. Elliott is Associate Rofessor in the Department of Marketing,

Mankato State University, Mankato, MN 56002-8400. David W. Roach is Assis-
tant Professor, Department of Business & Economics, Arkansas Tech University,
Russellville, AR 72801.
Journal of Professional Services Marketing, Vol. 9(2) 1993
O 1993 by The Haworth Press, Inc. All rights reserved 71
 72 JOURNAL OF PROFESSIONAL SERVICES MARKETING

viewed as considerate may also be viewed as honest, simply be-

cause of a preexisting belief that consideration and honesty go
together.
Thus, humans are not perfect in their evaluation of individual
characteristics or behavior. They do make errors, and these errors
are not random but systematic. Moreover, these systematic errors
appear to be caused by conceptually misguided inferences (Shwed-
er 1980; Kozlowski and Hirsch 1986).

PURPOSE OF STUDY

If people bias or distort their evaluation of human characteristics

and behaviors, then it seems logical that consumers may bias or
distort their evaluation of service quality attributes. It is reasonable
to assume that many of the processes that affect person perception
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may also affect service quality perception. Elliott and Roach (1991)
concluded that consumers may distort their evaluation of automo-
biles on the basis of beliefs about how certain automobile attributes
should go together.
This study seeks to evaluate the extent to which a consumer's
evaluation of various service attributes is affected by that consum-
er's schematic representation of the service attributes. Specifically,
this study investigates airline carriers in an attempt to determine if
and to what extent consumers tend to bias their evaluation of airline
carriers by distorting interrelationships among service attributes.

THE AIRLINE INDUSTRY

The high price of fuel and the competitive nature of the airline
industry have caused many airlines to search for ways to cut over-
head costs. One strategy has been for some airlines to eliminate or
at least stream-line services delivered (Gourdin 1988). However,
this has seemingly resulted in an increase in consumers voicing
their irritation, frustration, and general dissatisfaction with the qual-
ity of service currently being provided by the airline industry. A
 Kevin M.Elliott and David W.Roach 73

Gallup poll conducted for the American Society for Quality Control
surveyed 1,005 consumers and found that the percentage of passen-
gers who experienced poor airline service almost doubled from
1985 to 1988 (Fried 1989).
As a result of deregulation in 1978, airlines had to begin to
differentiate themselves from their competitors through service and
price. However, it became apparent very quickly that price was the
primary criterion many customers used to select an airline. In order
io rem& competitivein air fares, airlines sought to lower operating
costs. Initial strategies used to control costs were: (1) the establish-
ment of self-feeding hub-and-spoke systems served by smaller,
fuel-efficient aircraft, (2) reduction in the overall work force, and
(3) labor agreements incorporating lower, nonunion wage scales
(Gourdin 1988).
Additional measures to cut costs were also needed by most air-
lines. As fuel costs began to rise, a further burden was placed on an
already financially weak industry. Airlines then turned io the reduc-
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tion or elimination of a number of customer services that had been

expected by the flying public in the past. Services such as checked
baggage, in-flight meals, movies, and frm drinks'were either elimi-
nated or reduced. This resulted in a gradual reduction in service
quality as airlines continued to emphasize low fares at the expense
of services delivered.
Common complaints directed at airlines today revolve around
baggage handling, delayed flights, missed connections, reservation
handling, oversales, problems with refunds, and endless lines at
airport ticket counters and gate areas (Bolton and Chapman 1989).
Much of the complaints concerning baggage handling and delayed
flights are related to the hub-and-spoke method of operation which
concentrates most aircraft activity into a limited time period during
the day (Gourdin 1988). Most of the delayed flights at major hubs
result from scheduling too many flights during the same time period
in an attempt to meet customer demand. In addition, the hub-and-
spoke system means that baggage must be transferred from one
plane to another, which tends to increase the likelihood of loss or
damage.
Bolton et al. (1989) identified three dimensions of customer
complaint behavior in the airline industry. The three complaint
 74 JOURNAL OF PROFESSIONAL SERVICES MARKETING

dimensions appear to reflect distinct ways in which the customer

interacts with the airline service providers. One dimension involves
"operational problems" such as flight cancellations and delays,
oversales, and problems with reservations, boarding, baggage, and
customer service. These problems atise during the standard service
contact (flight).
A second dimension reflects "marketing problems" such as in-
formation on fares and other advertising. These problems concern
facilitating services and generally occur prior to &e flight. The third
dimension reflects "special situation uroblems" such as denial of
credit and availabilitymoftour packages. The special situations con-
cern services in nonstandard service contacts.

SYSTEMATIC DISTORTION HYPOTHESIS

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The "systematic distortion" hypothesis states that under difficult

memory conditions (i.e., situations where limited information is
known), respondents on interpersonal checklists, personality inven-
tories, and behavior rating questio~airessystematically distort
their evaluations of other people. This distortion is due to: (a) pre-
existing ideas of "what goes with what," (b) retrieving conceptual-
ly affiliated memory items which are easier to remember than indi-
vidual memory items, or (c) both. (Shweder and D'Andrade 1979).
Figure 1illustrates the b&c assumption of systematic distortion.
An individual rating/recalling the behavior of another is influenced
by two types of informationr(1) the actual behavior of the person,
and (2) the observer's own implicitly held theories or conceptual-
izations concerning what types of behaviors "go together." The
systematic distortion hypothesis predicts that the latter will have the
greater influence on human perception.
As Figure 1depicts, the systematic distortion hypothesis predicts
a high correlation between rated behavior and conceptual similarity
of behavior. By contrast, a low correlation is hypothesized between
actual behavior and rated behavior. Moreover, a low correlation is
also hypothesized to exist between actual behavior and conceptual
similarity of behavior.
The systematic distortion hypothesis suggests that perceptions
 Kevin M . Ellio~tand David W.Roach 75

PIQURe 1
SYSTEMATIC DIQTORTION
Conceptional S i m i l a r i t y
o f Behavioral Characteristics

Releted Behsvior Lou C o r r e l a t i o n L s t u a l Behavior

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are influenced more by factors internal to the observer than by the

actual data available for observation. Rated behavior is almost en-
tirely under the influence of preexisting conceptual schemas. More-
over, rated behavior corresponds to actual behavior only to the
extent that preexisting conceptual schemas happen to coincide with
actual behavior. Hence, to the extent that the correlations among
variables derived from memory-based ratings are highly correlated
to the pattern of conceptual similarity judgments, but not highly
correlated to the pattern of correlations derived from actual data, the
systematic distortion hypothesis is supported (Shweder 1975).

METHODOLOGY
In order to test the systematic distortion hypothesis with respect
to consumer evaluation of service quality of airlines, the ten largest
U.S. airline carriers were selected to be evaluated. The ten carriers
selected were Delta, Southwest, American, United, Northwest, US-
Air, TWA,Continental, Pan Am, and Eastern.
Since the systematic distortion hypothesis states that individuals
 76 JOURNAL OF PROFESSIONAL SERVICES MARKETING

bias their evaluations in situations where limited information is

known, respondents who have flown on a limited basis would ap-
pear to be ideal. Given these sampling requirement, college students
were deemed appropriate respondents.
Two different questionnaires were administered to 176 under-
graduate business administration students at an upper midwest mi-
versity. Both questionnaires used a seven-point scale. In the first
questionnaire (See Appendix A), respondents were asked to rate the
ten airline carriers with regard to six service attributes. Attribute
selection was based upon previous research by BoLton et al. (1989)
and Consumer Reports, (July 1991). The six attributes selected are
identified below:
1.On-time performance-(arriving at final destination within 15
minutes of schedule).
2. Baggage handling-(experiences with waiting for luggage and
lost or damaged bags).
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3. Food quality-(taste and variety of food provided).

4. Seat and leg room-(roominess of seats and isles).
5. Check-in service-(experiences with waits at the check-in
counter, obtaining flight information, and being bumped).
6. In-flight sewice-(friendliness and competence of flight atten-
dants and pilots).
The second questio~airewas used to measure the perceived
conceptual similarity of the six service attributes of airlines (see
Appendix B). Each question concerning pairs of attributes was
asked twice, with the order of the attributes alternating. For exam-
ple, one set of questions consisted of: (1) "If an airline carrier has
excellent on-time performance, how likely is it also to have excel-
lent check-in service?" and (2) "If an airline carrier has excellent
check-in service, how likely is it also to have excellent on-time
performance?" The mean conceptual similarity rating for each of
the 15 possible combinations for the six service attributes was then
calculated to determine an average response rating of the two ques-
tions.
Actual assessment of the six service attributes for the ten airline
carriers was obtained from Consumer Reports, (July 1991). More
than 140,000 respondents provided data to Consumer Reports on
 Kevin M . Elliott and Dovid W.Roach 77

approximately 250,000 domestic flights between January 1989 and

May 1990. Consumer Reporis then compiled ratings of airlines
across various service attributes. The ratings, therefore, were not
based on actual testing of the various service attributes by Consum-
er Reports, but rather on experiences as reported by 140,000 pas-
sengers.
In order to determine the amount of systematic distortion that
resulted from the evaluation of the airline carriers, correlation anal-
yses were used. One correlation coefficient measured the extent to
which the array of actual service attributes co-varies with the array
of rated service attributes. Another correlation coefficient measured
the extent to which the array of actual service attributes co-varies
with the array of conceptual similarity of service attributes. The
third coefficient measured the extent to which the array of con-
ceptual similarity of service attributes co-varies with the array of
rated service attributes.
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RESULTS

The resulting correlation coefficients of the three variables (actu-

al, rated, and conceptual similarity) are shown in Figure 2. The
results show a very strong positive correlation (.704)between con-
sumer rating of a&butes-&d the perceived ~ o n & ~ t " asimilarity
l of
those attributes. Bv contrast. the two remaining correlations are low
and nonsignificak The corkation between &ual and conceptual
similarity ratings was - .008. A similar negative and nonsignificant
correlation ( - .031) was found to exist between actual and rated
similarity of attributes.
The fmdings indicate that a respondent's evaluation of airline
service attributes may be biased by preexisting ideas as to what
attributes tend to go together. A respondent's rating of the six ser-
vice attributes has a much higher correlation to the conceptual
similarity of the attributes than to the actual attributes. Therefore, a
respondent's evaluation of an airline carrier appears to have been
influenced more by conceptually misguided inferences than by the
actual data available for observation. As hypothesized, respondents
systematically distorted their evaluations of airlines.
 78 JOURNAL OF PROFESSIONAL SERVICES MARKETING

SYBTEMATIC DIBTORTION MODEL:

AIRLINE BEWICE PERCEPTION
~ -

Conceptual Bimilarity
Of sentice Attributes
Time 3.22
Bag 3.56 4.95
Plight 4.68 4.32 4.30
Check 3.27 5.32 5.02 4.67
Room 3.58 3.26 3.28 4.11 3.21
Food Time Bag Flight Cheok
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Rated Attribute Actual Attribute

Bimilarity Bimilarity

Time .461 Time .579

Bag -405 .779 Bag .667 - 7 2 5
Plight -499 .547 .555 Blight .444-.089 .a29
Cheok .458 , 6 4 9 .698 .a55 Cheek .373 . 5 9 8 ,639 , 0 0 1
Room ~51 6- 5 3 2 .SO6 .522
-569 Room .250 a535 ,286-.167 .559
Food Time Bag Plight Cheok Pond Time Bag Plight Chenk
'significant at the .O1 level
 Kevin M . Elliott and David W.Roach

MAGNITUDE OF DISTORTION
OF ATTRIBUTE RELATIONSHIPS
Further data analysis was conducted in order to determine the level
of distortion among interrelationships of the six service attributes for
the ten airline carriers. Table 1 identifies the absolute differences be-
tween rated and actual similarity of the six service attributes. Correla-
tion coefficients are compared to examine which attribute xelationships
appear to be distorted the most. The results indicate that relationships
between some airline services m severely distotted.
As shown in Table 1, the relationship between on-time perfor-
mance and in-flight service was distorted by respondents. The rated
similarity was a positive and moderately strong correlation (-547).
However, the actual similarity indicates a weak and negative cor-
relation (- .089). The resulting absolute difference in correlation
coefficients was .636, which represents a fairly high magnitude of
distortion. Respondents felt that airlines which provided good on-
time performance also provided good in-flight service. The actual
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ratings from Consumer Reports indicate a different relationship

may exist between this two service attributes. Airlines that provide
good on-time performance do not generally also provide good in-
flight service and vice versa.

TABLE 1
LEVEL OF DISTORTION
OF AIRLINE SERVICE ATTRIBUTES
eervioe Rated Actual Absolute
Attributes similarity similarity Differenaee
 80 JOURNAL OF PROFESSIONAL SERVICES MARKFTNG

A similar distorted perception was found to exist between in flight

service and roominess of the seats and isles. The absolute magnitude
of difference in rated and actual correlation coefficients was .689.
Likewise, a .854 difference was found to exist between the rated and
actual correlation coefficients of check-in service and in-flight ser-
vice This relationship was found to be the most distorted. There is
v b a l l y no relationship between quality of check-in service and
quality of in-flight service (.001). Respondents, however, perceived a
very strong relationship (355) between this two attributes.

DISCUSSION AND IMPLICATIONS

The fiidings of this study suggest that consumers may distort
their evaluation of airline carriers on the basis of their beliefs about
intemlationships of service attributes. Perceptions about service
quality attributes are seemingly influenced more by factors internal
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to the respondent then by the actual attributes available for observa-

tion. If systematic distortion is in fact occurring, it is critical that
airline executives seek to understand thii phenomenon. Consumer
perceptions may impact future sales, market shares, and profit for
airline caniers.
Consumer evaluations of airlines ideally should be based upon
unbiased information. Airlines may be well advised to stop and
consider many consumers, who fly only periodically and have l i i -
itcd information to draw upon, evaluate carriers with respect to
service quality. A logical first step would be to survey passengers to
dcte.rmine if systematic distmion exists. If results indicate that
passengers may be biasing their evaluations, then carriers should
seek to minimize this distortion through informative advertising and
other promotional tools.
It would be remiss, however, not to suggest that systematic dis-
tortion may actually help some airlines. In fact, some airlines may
even seek to encourage and enhance distorted perceptions of their
service provided. For example, passengers may intuitively associate
check-in service and in-flight service as having a strong positive
relationship. The results of this study, however, suggest that there is
virtually no relationship between these two service attributes. Air-
l i i may reinforce passengers' misconceptions of the relationship
 Kevin M. Elliott and David W.Roach 81

between check-in service and in-flight service through omission by

not taking action to dispel the distorted perception. This, in turn,
may help airlines which emphasize excellent check-in service at the
expense of in-flight service.
This study has dealt only with airline carriers. Additional re-
search is needed to investigate other professional services with
respect to systematic distoflion. It is hoped that this study will
provide a framework for additional research and discussion on the
topic of systematic distortion. Increased understanding of systemat-
ic distortion of service attributes should aid companies in develop-
ing strategies that will allow consumers to evaluate and select pro-
fessional services from a more informed perspective.

REFERENCES
Bolton, Ruth N. and Randall G. Chapman (1989). "The Structure of Customer
Complaint Behavior in the Airline Industry," Developments in Marketing
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Science, 12,546-551.
Consumers Reports, July 1991, Mount Vernon, NY: Consumers Union of United
States, Inc., 462-469.
Elliott, Kevin M. and David W. Roach (1991). "Are Consumers Evaluating Your
Products The Way You Think and Hope They Are," Journal of Consumer
Marketing, 8, (Spring), 5-14.
Fisk, S.T., and S.E. Taylor (1984), Social Cognition. New York: Random House.
Fried, Lisa L (1989). "Continental A i r l i i : Shooting For The Ultimate Service,"
Management Review, (May), 46-52.
Gourdin. Kent N. (1988), "Bringing Quality Back to Commerciai Air Travel,"
Transportation Journal. (Spring), 23-29.
Kozlowski, Steve, and Michael H i h (1986), "Job Knowledge, Rate Familiarity,
Conceptual Similarity and Halo Error: An Exploration." Journal of Applied
Psychology 71: 45-49.
and (1987), "The Systematic'Distortion Hypothesis, Halo,
and Accuracy: An Individual-Level Analysis." Journal of Applied Psychology
72: 252-261.
Shweder, Richard A. (1975), "How Relevant Is An Individual Difference Theory
of Personality." Journal of Personality 43: 455-483.
and Roy G. D'AnQade (1979), "Accurate Reflection or Systematic
Distortion? A Reply to Block, Weiss, and Thome." Journal of Personality and
Social Psychology 37: 1075-1084.
(1980). "Pacton and Fictions in Person Perception: A Reply to Lamiell,
Foss and Cavenee." Journal of Personality 48: 74-81.
 82 JOURNAL OF PROFESSIONAL SERVICES MARKETING

Appendix A
AIRLINE CARRIER EVALUATION
(Abbrnviated)
Please rate UNITED AIRLINEB on each of the following service
characteristics by placing an X on the appropriate blank.
Poor On-time 1 2 3 4 5 Excellent On-time
Reliability - - - - - - Reliability
6 7

Poor Baggage Excellent Baggage

Handling -- - - - - Handling
Poor Seat & Excellent Seat 6
-g Room - - - - - - - Leg Room
Poor Quality Excellent Quality
of Food -- - - - - of Food
Poor Check-in Excellent Check-in
service ------ service
Poor In-flight Excellent In-flight
- - - ---
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service service
A total of 10 airline carriers were rated by respondents.
Appendix B
AIRLINE CARRIER EVALUATION
(Abbreviated)
Please evaluate how "likely" the following relationships of airline
aerviae characteristics are by placing an "X" on the appropriate blank.
1. If an airline has excellent check-in service, how likely
is it also to have excellent baggage handling procedures?
1 2 3 4 5 6 7
very Very
Unlikely --- - -- Likely
2. If an airline has excellent in-flight service, how likely
is it also to have excellent quality of food?
1 2 3 4 5 6 7
very Very
Unlikely ------- Likely
3. If an airline has excellent on-time performance, how likely
is it also to have excellent seat and leg room?
1 2 3 4 5 6 7
Very Very
Unlikely ----- - Likely
The complete questionnaire included 3 0 statements (15 paired
comparisons asked twice with order of attributes being reversed).