Effects of service quality and customer satisfaction on customer loyalty in high-speed rail services in Taiwan

Service quality and customer satisfaction as perceived by 1235 passengers on high-speed rail (HSR) services in Taiwan were examined using structural equation modeling (SEM) to explain customer loyalty. The relationships among the constructs in the SEM model were tested, namely: service quality, customer satisfaction and customer loyalty. Results indicated that the five service quality attributes in HSR services with which passengers most agreed were car cleanness, followed by neat appearance of employee, employee service attitude, comfort of air conditioning, and on-time performance. Findings also revealed that service quality had a positive effect on customer satisfaction and customer loyalty, while customer satisfaction had a positive effect on customer loyalty. Theoretical and practical implications of the findings for HSR services are discussed.

[1]  Mar González-Savignat,et al.  Competition in Air Transport , 2004 .

[2]  Changwan Kim,et al.  Deploying effective service strategy in the operations stage of high-speed rail , 2011 .

[3]  Lawrence W. Lan,et al.  Performance Measurement for Railway Transport: Stochastic Distance Functions with Inefficiency and Ineffectiveness Effects , 2006 .

[4]  L. F. Cunningham,et al.  Sorenson Best Paper Award Recipient CROSS-CULTURAL PERSPECTIVES OF SERVICE QUALITY AND RISK IN AIR TRANSPORTATION , 2002 .

[5]  Sanjay L. Ahire,et al.  Development and Validation of TQM Implementation Constructs , 1996 .

[6]  Zhilin Yang,et al.  Customer perceived value, satisfaction, and loyalty: The role of switching costs , 2004 .

[7]  Jin-Woo Park,et al.  Modelling the Impact of Airline Service Quality and Marketing Variables on Passengers’ Future Behavioural Intentions , 2006 .

[8]  Chin-Shan Lu,et al.  Assessing Service Quality, Switching Costs and Customer Loyalty in Home‐Delivery Services in Taiwan , 2009 .

[9]  F. Witlox,et al.  The Effects of the Land Use System on Travel Behavior: A Structural Equation Modeling Approach , 2007 .

[10]  R. Oliver Satisfaction: A Behavioral Perspective On The Consumer , 1996 .

[11]  Rungting Tu,et al.  Managing passenger behavioral intention: an integrated framework for service quality, satisfaction, perceived value, and switching barriers , 2011 .

[12]  C. Grönroos A Service Quality Model and its Marketing Implications , 1984 .

[13]  F. G. Benitez,et al.  Determining a public transport satisfaction index from user surveys , 2013 .

[14]  Venkatesh Shankar,et al.  Customer value, satisfaction, loyalty, and switching costs: An illustration from a business-to-business service context , 2004 .

[15]  G. Özer,et al.  Customer loyalty and the effect of switching costs as a moderator variable A case in the Turkish mobile phone market , 2005 .

[16]  Mary Jo Bitner,et al.  Encounter Satisfaction versus Overall Satisfaction versus Quality: The Customer's Voice , 1994 .

[17]  P. Rietveld Six reasons why supply‐oriented indicators systematically overestimate service quality in public transport , 2005 .

[18]  C. Stein,et al.  Structural equation modeling. , 2012, Methods in molecular biology.

[19]  R. S. Fernández,et al.  Effects of service quality dimensions on behavioural purchase intentions , 2007 .

[20]  L. F. Cunningham,et al.  Methodological triangulation in measuring public transportation service quality , 2000 .

[21]  Wenming Chung,et al.  A model for market share distribution between high-speed and conventional rail services in a transportation corridor , 1997 .

[22]  A. Parasuraman,et al.  The Behavioral Consequences of Service Quality , 1996 .

[23]  Ching-Wen Li,et al.  Quality evaluation of domestic airline industry using modified Taguchi loss function with different weights and target values , 1997 .

[24]  Canming Cao,et al.  An Empirical Analysis of the Relationship Among the Service Quality, Customer Satisfaction and Loyalty of High Speed Railway Based on Strctural Equation Model , 2011 .

[25]  Jc Ko de Ruyter,et al.  On the relationship between perceived service quality, service loyalty and switching costs , 1998 .

[26]  X. Koufteros Testing a model of pull production: a paradigm for manufacturing research using structural equation modeling , 1999 .

[27]  H. Ismail,et al.  What drives customer loyalty: An analysis from the telecommunications industry , 2002 .

[28]  Zoe S. Dimitriades Customer satisfaction, loyalty and commitment in service organizations , 2006 .

[29]  J. Hair Multivariate data analysis : a global perspective , 2010 .

[30]  Mar González-Savignat,et al.  Will the high‐speed train compete against the private vehicle? , 2004 .

[31]  A. Caruana Service loyalty: The effects of service quality and the mediating role of customer satisfaction , 2002 .

[32]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[33]  Behzad Ghonsooly,et al.  A structural equation modeling approach , 2016 .

[34]  Jacob Cohen Statistical Power Analysis for the Behavioral Sciences , 1969, The SAGE Encyclopedia of Research Design.

[35]  Changwan Kim,et al.  A structural equation analysis of the QSL relationship with passenger riding experience on high speed rail: An empirical study of Taiwan and Korea , 2009, Expert Syst. Appl..

[36]  Yu-Chiun Chiou,et al.  Service quality effects on air passenger intentions: a service chain perspective , 2012 .

[37]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[38]  P. Kotler Marketing Management: Analysis, Planning, Implementation and Control , 1972 .

[39]  A. Parasuraman,et al.  Communication and Control Processes in the Delivery of Service Quality , 1988 .

[40]  E. Anderson,et al.  The Antecedents and Consequences of Customer Satisfaction for Firms , 1993 .

[41]  Mark A. Vonderembse,et al.  Concurrent engineering and its consequences , 2001 .

[42]  Ove C. Hansemark,et al.  Customer satisfaction and retention: the experiences of individual employees , 2004 .

[43]  D. Getz,et al.  Critical success factors for wine tourism regions: a demand analysis , 2006 .

[44]  Mar González-Savignat,et al.  COMPETITION IN AIR TRANSPORT : THE CASE OF THE HIGH SPEED TRAIN , 2001 .

[45]  G. Özer,et al.  The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market , 2005 .

[46]  T. C. Edwin Cheng,et al.  Application of structural equation modeling to evaluate the intention of shippers to use Internet services in liner shipping , 2007, Eur. J. Oper. Res..

[47]  Stephane Hess,et al.  Improving the quality of demand forecasts through cross nested logit: a stated choice case study of airport, airline and access mode choice , 2013 .

[48]  Eftihia Nathanail,et al.  Measuring the quality of service for passengers on the hellenic railways , 2008 .

[49]  Ahmet Usakli,et al.  Brand personality of tourist destinations: An application of self-congruity theory , 2011 .

[50]  B. Lewis,et al.  The antecedents of consumer loyalty in retail banking , 2006 .

[51]  Gin-Shuh Liang,et al.  The fuzzy clustering method: Applications in the air transport market in Taiwan , 2003 .

[52]  D. Hensher,et al.  A Service Quality Index for Area-wide Contract Performance Assessment , 2002 .

[53]  Steven A. Taylor,et al.  Measuring Service Quality: A Reexamination and Extension , 1992 .

[54]  Hisashi Kubota,et al.  User satisfaction with paratransit in competition with motorization in indonesia: anticipation of future implications , 2007 .

[55]  D. Altman,et al.  Measurement error. , 1996, BMJ.

[56]  R. Vickerman High-speed rail in Europe: experience and issues for future development , 1997 .

[57]  Philip Kotler,et al.  Marketing Warfare in the 1980s , 1981 .

[58]  K. Seltman Marketing for management. , 2004, Marketing health services.

[59]  朴鍾沅 Marketing Research -Fundamentals and Dynamics- , 1979 .

[60]  A. Parasuraman,et al.  SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. , 1988 .

[61]  Heesup Han,et al.  The healthcare hotel: Distinctive attributes for international medical travelers , 2013 .

[63]  Gilbert A. Churchill,et al.  Marketing Research: Methodological Foundations , 1976 .

[64]  Peter R. Stopher,et al.  Service quality––developing a service quality index in the provision of commercial bus contracts , 2003 .

[65]  Patrick Hartmann,et al.  Antecedents of customer loyalty in residential energy markets: Service quality, satisfaction, trust and switching costs , 2006 .

[66]  Steven A. Taylor,et al.  An assessment of the relationship between service quality and customer satisfaction in the formation of consumers' purchase intentions , 1994 .

[67]  A. Sohal,et al.  Service quality and customer loyalty perspectives on two levels of retail relationships , 2003 .

[68]  D. Nappo SEM with ordinal manifest variables. An Alternating Least Squares approach , 2009 .

[69]  R. Bagozzi,et al.  On the evaluation of structural equation models , 1988 .

[70]  William Jen,et al.  Passengers’ Perceived Service Quality of City Buses in Taipei: Scale Development and Measurement , 2006 .

[71]  Moshe Givoni,et al.  Development and Impact of the Modern High‐speed Train: A Review , 2006 .

[72]  Rex B. Kline,et al.  Principles and Practice of Structural Equation Modeling , 1998 .