Literature review depicted that Scandinavian Airlines System was structured as per the demands and the recommendations of the customers, instead of those of the company and its management. “One of the key issues in the paper is the way SAS has chosen to develop the new services, namely to allow the passengers to define the process as op posed to defining it from the company perspective.” (Gustafsson, Ekdahl & Edvardsson, 1999) the literature review also indicated that variations in the services provided to the customers and the high degree of customization has differentiated effects on the satisfaction level of the customers.

Results of the study depict that “the relationship between process variation and customer dissatisfaction is contingent upon a company’s average performance with regard to each process. Consistency is at least as important as average performance for high performers, while it has limited impact for low performers.” (Tsikriktsis & Heineke, 2004)

Davidson (1978), discussed in his research the importance of managing customer contacts specifically in the service industries. The reason that was provided for managing the contacts was to increase customer loyalty, promote repeat purchase of the services as well as to create a position for the company in the market specific to the perceptions of the customers about the company and is service quality standards. Another research by Oyewole in 2002 also highlighted that moods and quality of life can also greatly influence the satisfaction level of the customer. The moods of the customer as well as the quality of life “tend to have significant influence on the level of satisfaction with services in the airline industry. However, some elementary services tend to be more influenced than others by these affective states of the consumer.” (Oyewole, 2002) As a result the airlines, specifically Singapore Airlines tries to improve the mood of the customers with specially designed in fight facilities and services.

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Literature review on Airline Industry
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