IDEAS home Printed from https://ideas.repec.org/a/eco/journ3/2020-04-20.html
   My bibliography  Save this article

Relation of Service Quality, Load Factors and Tariff on Bus City of Bandung

Author

Listed:
  • Dwi Novirani

    (Department of Industrial Engineering Itenas Bandung, Institut Teknologi Nasional Bandung. West Java Indonesia)

  • Hari Adianto

    (Department of Industrial Engineering Itenas Bandung, Institut Teknologi Nasional Bandung. West Java Indonesia)

Abstract

The purpose of this study is to discuss the relationship between satisfaction with service quality, by determining the number of vehicles and the ideal tariff for passengers. This research was conducted on consumers who use the Bandung City Bus. The relationship between satisfaction and service quality with passenger loyalty using the Structural Equation Modeling (SEM) method, the ideal tariff is seen from the Ability and Willingness To Pay passengers compared to vehicle operating costs, the break-even load factor method is used to calculate the number of vehicles that consider passenger needs, revenue, and operational costs. The results of the calculation of service quality on satisfaction is 6,731, proving that service quality has a significant and positive influence on customer satisfaction. One of the dimensions of service quality is tangible include physical evidence has the higest correlation with satisfaction factors on the service quality dimension affecting passenger loyalty. Service satisfaction is obtained from vehicles are load factors, and tariffs, which are calculated from six non-toll routes in Bandung, with the Ability to Pay vehicle suitable tariffs, only route 6B shows the Willingness to Pay customers below the current tariff.

Suggested Citation

  • Dwi Novirani & Hari Adianto, 2020. "Relation of Service Quality, Load Factors and Tariff on Bus City of Bandung," International Review of Management and Marketing, Econjournals, vol. 10(4), pages 152-160.
    • Handle: RePEc:eco:journ3:2020-04-20
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/irmm/article/download/9867/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/irmm/article/view/9867/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Delgado, Felipe & Munoz, Juan Carlos & Giesen, Ricardo, 2012. "How much can holding and/or limiting boarding improve transit performance?," Transportation Research Part B: Methodological, Elsevier, vol. 46(9), pages 1202-1217.
    2. Joseph F. Hair & G. Tomas M. Hult & Christian M. Ringle & Marko Sarstedt & Kai Oliver Thiele, 2017. "Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 616-632, September.
    3. Wu, Z. & Guo, F. & Polak, J. & Strbac, G., 2019. "Evaluating grid-interactive electric bus operation and demand response with load management tariff," Applied Energy, Elsevier, vol. 255(C).
    4. Deb, Kaushik & Filippini, Massimo, 2011. "Estimating welfare changes from efficient pricing in public bus transit in India," Transport Policy, Elsevier, vol. 18(1), pages 23-31, January.
    5. Alan C. Acock, 2013. "Discovering Structural Equation Modeling Using Stata," Stata Press books, StataCorp LP, number dsemus, March.
    6. Berry, Leonard L. & Parasuraman, A. & Zeithaml, Valarie A., 1988. "The service-quality puzzle," Business Horizons, Elsevier, vol. 31(5), pages 35-43.
    7. Leiva, Carola & Muñoz, Juan Carlos & Giesen, Ricardo & Larrain, Homero, 2010. "Design of limited-stop services for an urban bus corridor with capacity constraints," Transportation Research Part B: Methodological, Elsevier, vol. 44(10), pages 1186-1201, December.
    8. Franz J. M. Salzborn, 1972. "Optimum Bus Scheduling," Transportation Science, INFORMS, vol. 6(2), pages 137-148, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ibarra-Rojas, O.J. & Delgado, F. & Giesen, R. & Muñoz, J.C., 2015. "Planning, operation, and control of bus transport systems: A literature review," Transportation Research Part B: Methodological, Elsevier, vol. 77(C), pages 38-75.
    2. Suman, Hemant & Larrain, Homero & Muñoz, Juan Carlos, 2021. "The impact of using a naïve approach in the limited-stop bus service design problem," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 45-61.
    3. Gabriel E. Sánchez-Martínez & Nigel H. M. Wilson & Haris N. Koutsopoulos, 2017. "Schedule-free high-frequency transit operations," Public Transport, Springer, vol. 9(1), pages 285-305, July.
    4. Herbon, Avi & Hadas, Yuval, 2015. "Determining optimal frequency and vehicle capacity for public transit routes: A generalized newsvendor model," Transportation Research Part B: Methodological, Elsevier, vol. 71(C), pages 85-99.
    5. Li, Shukai & Liu, Ronghui & Yang, Lixing & Gao, Ziyou, 2019. "Robust dynamic bus controls considering delay disturbances and passenger demand uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 123(C), pages 88-109.
    6. Harasis, Salman & Khan, Irfan & Massoud, Ahmed, 2024. "Enabling large-scale integration of electric bus fleets in harsh environments: Possibilities, potentials, and challenges," Energy, Elsevier, vol. 300(C).
    7. Sánchez-Martínez, G.E. & Koutsopoulos, H.N. & Wilson, N.H.M., 2016. "Real-time holding control for high-frequency transit with dynamics," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 1-19.
    8. Janina Isabel Steinert & Lucie Dale Cluver & G. J. Melendez-Torres & Sebastian Vollmer, 2018. "One Size Fits All? The Validity of a Composite Poverty Index Across Urban and Rural Households in South Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 51-72, February.
    9. Boud Verbrugge & Mohammed Mahedi Hasan & Haaris Rasool & Thomas Geury & Mohamed El Baghdadi & Omar Hegazy, 2021. "Smart Integration of Electric Buses in Cities: A Technological Review," Sustainability, MDPI, vol. 13(21), pages 1-23, November.
    10. Keen, Christian & Lescop, Denis & Sanchez-Famoso, Valeriano, 2022. "Does coopetition support SMEs in turbulent contexts?," Economics Letters, Elsevier, vol. 218(C).
    11. Wang, Siqi & Cheah, Jun-Hwa & Lim, Xin-Jean & Leong, Yee Choy & Choo, Wei Chong, 2022. "Thanks COVID-19, I'll reconsider my purchase: Can fear appeal reduce online shopping cart abandonment?," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    12. Salgado, Stéphane & Hemonnet-Goujot, Aurelie & Henard, David H. & de Barnier, Virginie, 2020. "The dynamics of innovation contest experience: An integrated framework from the customer’s perspective," Journal of Business Research, Elsevier, vol. 117(C), pages 29-43.
    13. Lussier, Bruno & Philp, Matthew & Hartmann, Nathaniel N. & Wieland, Heiko, 2021. "Social anxiety and salesperson performance: The roles of mindful acceptance and perceived sales manager support," Journal of Business Research, Elsevier, vol. 124(C), pages 112-125.
    14. David Giauque & Frédéric Cornu & Karine Renard & Yves Emery, 2023. "Opportunity to Use New Ways of Working: Do Sectors and Organizational Characteristics Shape Employee Perceptions?," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    15. Daniel Martínez-Cevallos & Alejandra Proaño-Grijalva & Mario Alguacil & Daniel Duclos-Bastías & David Parra-Camacho, 2020. "Segmentation of Participants in a Sports Event Using Cluster Analysis," Sustainability, MDPI, vol. 12(14), pages 1-15, July.
    16. Anita Ciunova-Shuleska & Nikolina Palamidovska & Marija Grishin, 2013. "An empirical assessment of service quality in the context of travel agencies in the Republic of Macedonia," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 25(1), pages 21-36.
    17. Dehghani, Milad & William Kennedy, Ryan & Mashatan, Atefeh & Rese, Alexandra & Karavidas, Dionysios, 2022. "High interest, low adoption. A mixed-method investigation into the factors influencing organisational adoption of blockchain technology," Journal of Business Research, Elsevier, vol. 149(C), pages 393-411.
    18. Iliriana Miftari & Rainer Haas & Oliver Meixner & Drini Imami & Ekrem Gjokaj, 2022. "Factors Influencing Consumer Attitudes towards Organic Food Products in a Transition Economy—Insights from Kosovo," Sustainability, MDPI, vol. 14(10), pages 1-14, May.
    19. Sadia Afrin & Muhammad Asyraf Bin Mohd Kassim & Mohd Faizal Yusof & Md. Sharif Hassan & Md. Aminul Islam & Khairun Nisa Binti Khairuddin, 2023. "Investigating the Determinants of Employee Performance for Sustainability: A Study on the Bangladesh Insurance Industry," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    20. Wang, David Z.W. & Nayan, Ashish & Szeto, W.Y., 2018. "Optimal bus service design with limited stop services in a travel corridor," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 70-86.

    More about this item

    Keywords

    Service Quality; Customer Satisfaction; Load Factors; Tariff;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L8 - Industrial Organization - - Industry Studies: Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ3:2020-04-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.