SERVICE QUALITY AND CUSTOMER SATISFACTION OF AIR EXPRESS CARGO OPERATORS: BASIS FOR LOGISTICS ACTIVITY MODEL

This study examined the service quality and customer satisfaction of Air Express Cargo Operators (AECO) in Western Visayas, particularly in Iloilo, and assessed the significance and extent of their relationship. Using a descriptive-correlational design, data were collected from 91 respondents during the third quarter of 2024. The findings revealed that respondents rated AECO's service quality as "very important" based on the SERVQUAL dimensions. Customer satisfaction, measured in terms of expectations, was rated as "Satisfied," while satisfaction based on customer perceptions was rated as "very satisfied". Notably, the study found a positive, very high, and statistically significant relationship between the empathy dimension of AECO’s services and customer satisfaction with reliability in terms of expectations. A similarly strong correlation was found between AECO's assurance dimension and customer satisfaction with assurance in terms of perceptions. Additionally, a high and significant association was observed between AECO's tangibility dimension and customer satisfaction with empathy in terms of perceptions. This finding suggests the need for technological upgrades and the proposed model for AECO to improve service efficiency and customer satisfaction.