Relationship between Airline's Distribution Services SNS Content and Customer Satisfaction

Abstract

This study aims to examine the impact of characteristics of SNS content provided by airlines on customer satisfaction and to explore the effect of the personal characteristics of the customers which have a modulating effect on the relationship between content characteristics of SNS and customer satisfaction. The data were collected over a period of April 21. 2019. to July 21. 2019. for three months from the people who have experience using SNS provided by airlines. 225 samples were selected and used as final samples from a collection rate of 93.4 percent. Findings suggest that the characteristics of airline's SNS content which include a promotion, information, and communication showed a positive impact on customer satisfaction. The analysis of a modulating effect of individual characteristics on the relationship between the airline's SNS content characteristics showed that diversity pursuit propensity, innovation propensity, and information-seeking propensity control the relationship between characteristics of airline's SNS content which are publicity, information and customer satisfaction. And it was found that all three personal characteristics do not control the relationship between communication and customer satisfaction. Thus, airlines should use SNS more effectively to generate customer satisfaction and present marketing measures to help generate profits through consumer purchasing behavior. It is expected that the findings of this study will help airlines to utilize marketing implications for effective and practical marketing methods.

1. Introduction

According to the Korea Media Panel Survey, an annual sample tracking survey conducted by the Media Statistics Portal (KISDISTAT) since 2010, Out of the total 9,426 individual respondents surveyed, 4,546 said they were using SNS, and 48.2% which is an increase of 2.4% compared to the previous year, was using SNS. As the result shows, the rate of SNS usage continues to increase, and as of 2019, one out of two respondents is found to use SNS., Also, SNS usage has continued to grow among middle-aged people in their 30s and 60s since 2014.

Purchasing airline’s products and service through travel agencies used to be a general way for existing airlines, but recently, due to the generalization of mobile devices and the development of IT networks, consumers are purchasing directly through applications. In the past, travelers have used package tour to avoid any hassles from planning an itinerary, airline tickets, accommodation, and tours. But nowadays, there is an increasing number of independent travelers who are willing to make reservations and purchase their airline tickets, accommodation and make their itinerary.

Obar and Wildman (2015) defined SNS as a computer technology that can share and express various forms of information, ideas and interests with other SNS users using virtual communities and networks. Airlines also provide relevant information, such as route information and ticket promotions to consumers through SNS, affecting the decision-making process of consumers' willingness to buy (Dolan & Shahbaznezhad, 2017).

This study seeks to find out how content characteristics of SNS used by airlines as a marketing tool affect customer satisfaction and focus on how personal characteristics control the relationship between SNS content characteristics and customer satisfaction.

Based on this study, we would also like to present airlines with better SNS marketing directions that can improve SNS content quality and drive customer satisfaction control the relationship between SNS content characteristics and customer satisfaction.

Based on this study, we would also like to present airlines with better SNS marketing directions that can improve SNS content quality and drive customer satisfaction.

2. Theoretical Background

2.1. SNS (Social Network Service) Content Characteristics

Muntinga, Moorman and Smit (2011) and Villanueva, Yoo and Hanssens (2008) argued that SNS content approach consumers more strongly than traditional facilitated mixes such as advertising. Kim, Spiller and Hettche (2015) defined three types of SNS content. First, public relations content aimed at generating profits for the company, second, information content that provides information about the products or service the company produces, and lastly communication content that the company needs to interact with consumers.

Cvijikj and Michahelles (2013) classified the types of SNS content into information and interest to compare how users react and by using images such as photographs. The results revealed that the use of images has a positive effect on users.

Low cost carriers with low cost, high efficiency management principles are also paying attention to SNS marketing as it can have a huge impact on marketing at low-cost.

SNS has become an essential tool for consumers to participate online, and a growing number of companies are using SNS as a marketing tool (Dipietro, Crews, Gustafson & Strick, 2012).

As new airlines continue to emerge, consumers are taking the initiative in choosing the airlines. The changes show that price competition, which was the only marketing tool for early airlines, will not give them a market edge (Park & Park, 2017). This study comprised the components of SNS content characteristics in promotion, information and communication based on prior studies by Cvijikj and Michhaeles (2013) and Kim, Spiller and Hettche (2015).

2.2. Customer Satisfaction

Franke and Piller (2003) classified and explained the causes of customer satisfaction in two forms. Customer satisfaction is determined, the moment when a product or service is purchased then used and during the process of obtaining a product or experiencing service. Verhoef et. all (2009) defined that customer satisfaction is the level of enjoyment consumers experience from the services to meet their needs and expectations. Customer satisfaction can lead to consumer purchase intentions and purchase intentions have a direct impact on purchase behavior. And if the degree of purchase intention is high, the probability of actual purchase behaviour increases, so a company that aims to pursue profits will need to do continuous research and make efforts to draw customer satisfaction.

2.3. Personal Characteristics

Devaraj, Easley and Crant (2008) defined personal characteristics as a whole of a sustained and consistent attribute that characterizes an individual and is a generic concept that refers to the non-environmental factors that determine an individual's attitudes, beliefs, cognition, and behaviour.

Based on the Prior research of Yang and Woo (2013), this study consisted of four personal characteristics elements: diversity pursuit propensity, innovation propensity, information seeking propensity, and self-fulfilling propensity.

Diversity pursuit tendency is a consumer's tendency to use a variety of products or brands to be stimulated by changes rather than selecting only specific products or brands when selecting products or brands.

Innovation propensity refers to an individual who is more open-minded to try new experiences or stimuli than others. They are not reluctant to accept new information or technology and make innovative decisions with their own subjective opinions, regardless of others' opinions (Oakey, 2013).

The higher the direction of information seeking propensity, the more active it is to exchange information with others, and actively try to acquire various information quickly by using SNS. (Kim, Sin & Tasi, 2014).

A self-fulfilling propensity is to find something that you think have greater desires or interest than others, such as social service, sports activities, painting, and literature creation activities. It is the desire to become a person you want to be.

3. Hypothesis

3.1. Relationship between Airline SNS Content Characteristics and Customer Satisfaction

A study by Niu and Lee (2018) on the impact of e-service quality on satisfaction at an online travel agency site showed that reliability, informality, and satisfaction were affected. Jeong, Bae and Yoon (2014), analyzed the impact of relationship between SNS marketing characteristics and purchasing intent, found that the higher the accessibility, interaction, and usefulness of SNS marketing, the higher the intention and reliability of use, and that the intention of continuous use has a positive relationship to purchasing intent. Wang, Lee and Kim (2014) studied that usefulness, interdependence and intimacy among the characteristics of SNS have a positive effect on tourism information dependence and said that the positive impact on reliance has a positive effect on tourism preferences.

Based on these prior studies, the following hypothesis 1 is proposed.

H1: Airline’s SNS content characteristics will have apositive impact on customer satisfaction.

H1-1: Promotion will have a positive impact on customer satisfaction.

H1-2: Information will have a positive impact on customer satisfaction.

H1-3: Communication will have a positive impact on customer satisfaction.

H1: Airline SNS content characteristics will have a positive impact on customer satisfaction.

H1-1: Promotion will have a positive impact on customer satisfaction.

H1-2: Information will have a positive impact on customer satisfaction.

H1-3: Communication will have a positive impact on customer satisfaction.

3.2. Relationship between Personal Characteristics and Customer Satisfaction

Consumers with positive personality traits are formed through various experiences with the business, which will affect the satisfaction of the consumer toward the company (Vazquez & Foxall, 2006).

Yang and Woo (2013) studied the effect of the individual characteristics of consumers using SNS on customer behavior, saying that the interaction, individual innovation and perceived enjoyment have a positive effect on customer behavior.

Based on these prior studies, H2 was established.

H2: Personal characteristics will control the relationship between Airline SNS content characteristics and customer satisfaction.

H2-1: Diversity pursuit propensity will control the relationship between promotion and customer satisfaction.

H2-2: Diversity pursuit propensity will control the relationship between information and customer satisfaction.

H2-3: Diversity pursuit propensity will control the relationship between communication and customer satisfaction.

H2-4: Innovation propensity will control the relationship between promotion and customer satisfaction.

H2-5: Innovation propensity will control the relationship between information and customer satisfaction.

H2-6: Innovation propensity will control the relationship between communication and customer satisfaction.

H2-7: Innovation propensity will control the relationship between promotion and customer satisfaction.

H2-8: Information seeking propensity will control the relationship between information and customer satisfaction.

H2-9: Information seeking propensity will control the relationship between communication and customer satisfaction.

H2-10: Self-fulfilling propensity will control the relationship between promotion and customer satisfaction.

H2-11: Self-fulfilling propensity will control the relationship between information and customer satisfaction.

H2-12: Self-fulfilling propensity will control the relationship between communication and customer satisfaction.

The data were collected over a period of April 21. 2019. to July 21. 2019. for three months from the people who have experience using SNS provided by airlines. A total of 241 copies of the samples were distributed, excluding surveys that were checked as having no experience using SNS and unreliable data, 225 samples were selected and used as final samples from a collection rate of 93.4 percent. In this study, statistical programs SPSS 22.0 and AMOS 18.0 were used after data coding to derive the statistical values of the collected samples.

4. Results

Table 1 presents the results of an analysis of the statistical characteristics of the respondents.

Table 1: Demographic Characteristics of the Respondents

In this study, a positive factor analysis was conducted to verify the validity of concentration for the construction of a structural equation model.

Table 2: Verification Factor Analysis

X²=849.443(df=558, p=.000), X²/df=1.522, RMR=.046, GFI=.877, AGFI=.844, NFI=.903, TLI=.966, CFI=.974, RMSEA=.048

***: p<.001

In this study, correlation analysis between each potential variable was conducted and shown in Table 3.

Table 3: Correlation Analysis

Verification of the detailed theory of H1 of Airline's SNS content characteristics will have a significant impact on customer satisfaction was shown in Table 4.

Table 4: Impact of Airline SNS Content Characteristics on Customer Satisfaction

X²=353.210(df=202, p=.000), X²/df=1.749, RMR=.041, GFI=.870, AGFI=.837, NFI=.906, TLI=.951, CFI=.957, RMSEA=.058

*** : p<.001, a : Critical Ratio, b : Squared Multiple Correlations

The effect of promotion on customer satisfaction was shown to be 2.30, and H1-1 was adopted.

The effect of information on customer satisfaction was shown as .395, so H1-2 was adopted. The effect of communication on customer satisfaction was shown as .461, so H1-3 was adopted.

First, to verify the effect of adjusting the personal characteristics in the customer satisfaction relationship of the Airline's SNS content characteristics with a hypothesis 2, based on the mean of diversity pursuit propensity, innovation propensity, information seeking propensity, and self-fulfilling propensity, the sub-factors of personal characteristics, the adjustment effect was verified by comparing with non-pharmaceutical models after dividing them into high and low groups and limiting their respective paths.

The results of the diversity pursuit propensity adjustment verification are shown in Table 4.

Table 5: Adjustment Effect of Diversity Pursuit Propensity

H2-1 and H2-2 were adopted, as diversity pursuit propensity was shown to control the influence relationship between promotion and customer satisfaction and information and customer satisfaction.

H2-3 was rejected because there was no significant difference in the effect of communication on customer satisfaction.

Second, the results of the innovative adjustment effect validation were shown in Table 6.

Table 6: Adjustment Effect of Innovation Propensity

H2-4 and H2-5 were adopted as it showed that publicity controls the relationship between customer satisfaction and information and customer satisfaction. However, H2-6 was rejected as it showed that the relationship of communication's impact on customer satisfaction was not adjusted.

Third, the results of the adjustment effect verification for information propensity were shown in Table 7.

Table 7: Adjustment Effect of Information Seeking Propensity

H2-7 and H2-8 were adopted as information seeking propensity are shown to control the relationship between public relations and informality's impact on customer satisfaction.

However, H2-9 was rejected as it was shown that the relationship of communication's impact on customer satisfaction was not regulated.

Finally, the results of the self-fulfilling propensity control verification among the sub-factors of personal characteristics were shown in Table 8.

Table 8: Adjustment Effect of Self-Fulfilling Propensity

H2-10 and H2-11 were rejected as sub-factors of the airline's SNS content characteristics showed that self-fulfilling propensity had no moderating effect in the relationship between public relations and informality on customer satisfaction.

H2-12 was adopted as the self-fulfilling propensity is shown to play a controlling role in the relationship of communication's impact on customer satisfaction.

5. Conclusion

The empirical results of this study can be summarized as follows. First, analysis of the impact of airline's SNS content characteristics on customer satisfaction shows similar results to those of Kim, Spiller, and Hettche (2015), a component of airline's SNS content characteristics, and the impact between information and customer satisfaction is similar to those of Cvijikj and Michhelles (2013). Second, analysis of whether individual characteristics control the relationship between the airline’s SNS content characteristics and customer satisfaction showed that diversity and innovation and information seeking propensity control the relationship between public relations, information and customer satisfaction, but the relationship between communication and customer satisfaction was not effected, and hypotheses 2-3, hypothesis 2-6, and hypothesis 2-9. Hypothesis 2-10 and 2-11 were rejected, as it appeared that only controls the relationship between communication and customer satisfaction.

In this study, several practical implications are presented to provide marketing strategies that can help airlines to use SNS more effectively to derive customer satisfaction and to help them to make profits through consumer purchasing behavior. First, the results of H1 show that public relations, information and communication, which are components of the airline's SNS content characteristics, all have positive effects on customer satisfaction. Airlines can drive customer satisfaction through content that includes information about special-price tickets they wish to promote, information about destinations, information about airlines, photos of airlines, etc. and improve the quality of content that communicates with consumers, such as encouraging participation, asking for feedback and responding inquiries.

In order communicate with customers the airline uploaded contents such as the videos of where the flight attendants personally experienced, recommended restaurants, tourist sites, how the crew grooms, destination information and actual videos of the passengers experiencing the airline and it had an enormous number of views and were able to see their positive response. Therefore, airline marketing practitioners will have to strive to create content that can attract consumers' attention by enhancing the quality of promotional, informative and communicative content and making it interesting and diverse to elicit customer satisfaction using SNS.

Second, the results of H2 show that diversity, innovation and information pursuit prosperity among the components of personal characteristics control the relationship between public relations and information performance, which are characteristics of airline SNS content, but not the relationship between communication and customer satisfaction. These results indicate that consumers who have a diversity pursuit prosperity to pursue a variety of brands or products and services, innovative consumers who are more willing to try to use new technologies or buy new products and services than others, will obtain a variety of information, feel satisfied through content that is promotional and informative. Thus airlines need to make the composition of promotional content that includes discounts, special-price ticket information, events, new services or product promotions, and information-based content that includes various information about airlines or services or campaigns sponsored by airlines more quickly and more interesting rather than communicating with them through communicative content. Among individual characteristics, self-fulfilling propensity only controls the relationship between communication and customer satisfaction. Therefore, consumers who want to fulfil their potential are satisfied with the promotional content and the interactive content that allows them to communicate more easily with airlines rather than the informational content that provides a variety of information. Therefore, it is important to create and provide more opportunities for communication, such as exchanging opinions through comments in real time using interactive features, which are characteristic of SNS, or checking responses using functions such as "like" and "sharing."

The limitations of this study and directional suggestions for subsequent research are as follows. Since this study has been conducted by integrating without selecting specific SNS channel, it has limitations in presenting specific marketing strategies according to SNS channels. However, several variables may exist, such as Instagram, YouTube, Facebook, Twitter, and Kakao Story, have different characteristics and types of information sharing methods. Proceeding with research by specifically classifying various SNS channels, each with its own characteristics it will be able to provide effective implications for establishing detailed marketing methods with differences according to the unique characteristics of various SNS channels that airlines use as marketing tools.