1. Authors: William JEN & Tang-Jung LU 2003/10/29
Effects of Service Quality, Customer Satisfaction and Switching Barriers on Passenger Behavior Intensions in Scheduled Coach Service
Good evening, Ladies and Gentlemen!
It’s a great pleasure for me to be here at this conference.
My name is Tang-Jung Lu. I come from Taiwan, and I study at National Chian-Tung University.
I am going to talk about the 「Effects of Service Quality, Customer Satisfaction and Switch Barriers on Passenger Behavior Intensions in Scheduled Coach Service」.
Authors: William JEN & Tang-Jung LU
2003/10/29

2. OUTLINE 1. INTRODUCTION 2. LITERATURE REVIEW
3. PROPOSED MODEL AND HYPOTHESES
4. METHODS AND MATERIALS
5. RESULTS
6. DISSCUSSION
The outline for this presentation includes~~~~~~

3. 1. INTRODUCTION The opening of national freeway route in Taiwan
Increasing the level of competition
Companies became interested in passenger behavioral intentions
Research on traveler behavior
Objective and quantifiable variables, such as fare, frequency, traveling time and waiting time (Ortuzar and Iacobelli, 1998; Ferrari, 1999 )
With the opening of the national freeway route in Taiwan increased the level of competition in scheduled coach services.
And many companies became interested in passenger behavioral intentions.
2. Many research on traveler behavior, have applied related theories and methods to develop many choice models,
and found many variables that affect traveler behavior significantly.
However, those variables, such as fare, frequency, traveling time and waiting time, are objective and quantifiable.
These variable are not enough to explain passenger behavioral intentions or perceptions.

4. Research on marketing
Subjective and difficult to quantify latent variables, such as service quality, service sacrifice, service value, customer satisfaction and switching barriers (Fishbein and Ajzen, 1975; Ravald and Gronroos, 1996)
Most of the studies only confirmed the relationships between three or four latent variables.
Research on marketing, have also found many factors that affect consumer behavioral intentions.
However these factors are subjective and difficult to quantify latent variables.
Such as service quality, service sacrifice, service value, customer satisfaction and switching barriers.
2. But, most of these studies confirmed the relationships between three or four latent variables, but were not sufficient for understanding
passenger behavioral intentions

5. Purposes
To consider all the above-mentioned latent variables in an integrated model.
Using Linear Structural Relation (LISREL) to test the model and hypotheses.
1.Purposes of this study attempts to consider all the above-mentioned latent variables in an
integrated model
2. And use Linear Structural Relation (LISREL) to test the fit the model and
hypotheses.
3. We hope the model can further explain passenger behavioral intentions.

6. 2. LITERATURE REVIEW 2.1 Service Quality (SQ)
Parasuraman, Zeithaml and Berry (1985, 1988)
The comparison results of expected and perceived service.
Tangible, Reliability, Responsiveness, Assurance and Empathy.
Service quality has been studied widely in the pass decade.
Especially, a serial studies by PZB is most well-known.
According to their research, they defined service quality as 「 The comparison results of expected and perceived service 」
They found 5 dimension to measure service quality, and the 5 dimension are
「Tangible, Reliability, Responsiveness, Assurance and Empathy.]

7. 2.2 Service Sacrifice (SS)
Heskett et al.(1990)
What is given up or sacrificed to acquire a service.
Zeithaml(1988); Dodds et al. (1991)
Perceived monetary and non-monetary price
2.3 Service Value (SV)
Dodds and Mornoe (1985); Lovelock (2000)
A trade-off between perceived benefits and perceived costs.
1.According to the research by Heskett and his colleague,
they defined service sacrifice as「 What is given up or sacrificed to acquire a service.」
Many researches found this sacrifice can include perceived monetary and non-monetary price.
2. Base on many studies, the scholar consider that service value is
「 A trade-off between perceived benefits and perceived costs. 」

8. 2.4 Customer Satisfaction (CS)
Woodruff et al. (1993)
An evaluation of an attitude.
Rust and Oliver (1994)
An evaluation of an emotion.
2.5 Switching Barriers (SB)
Jones et al. (2000)
Any factor which increases the difficulty for customers in changing provider.
Interpersonal Relationships, Perceived Switching Costs, Attractiveness of Alternatives.
Different scholar have describe customer satisfaction from different point of view.
(Woodruff et al., 1993). Customer satisfaction is more likely to be treated as attitude,
which is an extended valuation of goods or services
Some scholars also describe satisfaction as an evaluation of an emotion,
suggesting that it reflects the degree to which a consumer believes that using a service evokes positive feelings
2. Jones and his colleagues indicate that switching barriers represent any factor, which increases
the difficulty for customers in changing provider, and three kinds of such barriers exist in the context of services

9. 2.6 Behavioral Intentions (BI)
Zeithaml et al. (1996)
A good predictor of company financial consequences.
Comment positively, Recommend to other consumers, Remain loyal, Spend more with the company, Pay a premium for the service.
2.7 Integrated Model
Dodds et al. (1985); Zeithaml (1988); Lee and Cunningham (1996); Oh (1999)
SQ→ SV, CS and BI
SV→ CS and BI
CS→ BI
According to the conceptual model developed by Zeithaml and his colleague
behavioral intentions can be a good predictor of company financial consequences.
They also suggest that favorable behavioral intentions include Comment positively,
Recommend to other consumers, Remain loyal, Spend more with the company,
Pay a premium for the service.
2. Many studies have considered the relationships among SQ, SS, SV, CS and BI.
From these studies, we can know
SQ→ SV, CS and BI
SV→ CS and BI
CS→ BI
However, most of the model only contain three or four variables.
But is not enough for understanding passenger behavioral intentions

10. Cronin, Jr. et al. (2000) constructed a model with 5 latent variables.
Cornin and his colleagues constructed four difference integrated model for describing the relationships
between service quality, service sacrifice, service value, customer satisfaction and behavioral intentions.
After investigating in six different industries, they finally get a model with better goodness of fit.
However, this model did not consider the factor which makes the difficulty for customers in changing provider.

11. 3. PROPOSED MODEL AND HYPOTHESES
1. Based on the model from Cronin, we add switching barriers into the model.
According this proposed model, we assume
說明十個假設（其中H1與H10是負的negatively）

12. 4.METHODS AND MATERIALS 4.1 Measurements (1) SQ (Jen and Hu, 2000)
Interaction with Passengers, with six questions
Tangible Service Equipment, with six questions
Convenience of Service, with five questions
Operating Management Support, with three questions
(2) SS (Zeithaml, 1988)
Monetary price: Fare
Non- Monetary price: Out of vehicle time, Waiting Time, In Vehicle Time
A five-point Likert-type response format ranging from “strongly agree” to “strongly disagree” is used in this study.
1. First, in order to measure SQ, we uses Jen and Hu’s service quality scale of the public transportation system,
This scale include 4 dimension, and 20 items.
2. In the measurement of SS,
we measure the fare of the coach services as monetary price
and Out of vehicle time, Waiting Time, In Vehicle Time as non- Monetary price

13. (3) SV (Dodds et al., 1991; Brown et al., 1993)
The company’s service is valuable.
The company’s service based on certain price is acceptable.
It is worthier to travel by this company’s coach than the other coach companies or modes.
(4) CS (Westbrook and Oliver, 1991)
Emotion words: Interest, Enjoyment, Surprise, Anger, Shame/Shyness
Overall Satisfaction: The company’s service satisfied me.
1. Based on the related literature we used 3 item to measure SV.
2. We used the measurement developed by Westbrook and Oliver (1991),
which used five emotion words, and one item to measure overall coach service

14. (5) SB (Rusbult, 1980; Gremler, 1995; Ping, 1993)
Interpersonal Relationships, with two questions
Perceived Switching Costs, with three questions
Attractiveness of Alternatives, with three questions
(6) BI (Zeithaml et al., 1996)
Remain loyal, with one questions
Recommend to others, with one questions
Spend more with the company, with one questions
1. According to the related researches,
we used 2 item to measure IR, 3 item to measure PSC
and 3 item to measure AOA
2. Based on the research by Zeitham and his colleaguess
we use 3 item to measure BI

15. Two-Step Procedure (Anderson and Gering, 1988)
4.2 Analysis
Using Linear Structure Relationship (LISREL) to analyze the proposed model.
Two-Step Procedure (Anderson and Gering, 1988)
Confirmatory Factor Analysis (CFA)
Path Analysis
The first step used confirmatory factor analysis to develop a measurement model that achieves an acceptable data fit.
The second step tested the causal relationships of the structural model by path analysis.

16. 4.3 Data Collection Research Subjects Survey Method
Taipei-Tainan route (302 km), with 4 companies.
Taichung-Kaohsiung route (189 km), with 4 companies.
Survey Method
Questionnaires were distributed randomly in the waiting rooms and passengers were requested to mail the completed questionnaires back to us.
1. After considering the geographic distribution, concentration of population and transfer distance in Taiwan,
we selected 台北台南、台中高雄 as research subjects.
In we investigate 4compaies.
2. We distributed questionnaires randomly in the waiting rooms and passengers were requested
to mail the completed questionnaires back to us.

17. Taichung-Kaohsiung route
5. RESULTS
5.1 Sample and Data
5.1.1 Valid Response Rate
Taipei-Tainan route
Research object
Company A
Company B
Company C
Company D
Total
Sent out
1030
376
702
718
2826
Return
133 92
228
153
606
Response rate
12.91%
24.47%
32.48%
21.31%
21.44%
Taichung-Kaohsiung route
Company E
Company F
1000
426
840
411
2677 66
106
202
117
491
6.60%
24.88%
24.05%
28.47%
18.34%
From this table, we can see the valid response rate for each routes and each companies.
We total sent out 5503 questionnaires, and returned 1097 valid questionnaires.
The total valid response rate is about 20%

18. 571(52%) passengers were male, 684(62%) passengers were aged 20-29,
5.1.2 Sample Frame
571(52%) passengers were male,
684(62%) passengers were aged 20-29,
482(44%) passengers were students,
500(46%) passengers had average incomes of under NTD 10,000 a month,
456(43%) passengers traveled by scheduled coach two to four times per season
520(48%) passengers were traveling to return home.
According the analyze of sample frame
We can know most of passenger are~~~~~~~

19. 5.2 Confirmatory Factor Analysis (CFA)
From this table we can see the result of CFA
Chi-square divided by degrees of freedom should smaller than 5
The value of GFI, AGFI,NFI, NNFI and CFI should bigger than 0.9
And the value of RMR should be smaller than 0.05.
According to the results, we found the initial measure model did not
fit the requirement.
And the residual value of Item 10 and Item 11 were related large,
so after delete these two variable, we find the all the index value
So we will use revised model 2 for path analysis.
※GFI=goodness of fit index; AGFI=GFI adjusted for degrees of freedom; RMR=root mean square residual; NFI=normed-fit index; NNFI=non-normed-fit index; CFI=Bentler’s fit index
※ χ2∕df ＜5; GFI＞0.9; AGFI＞0.9; RMR＜0.05; NFI＞0.9; NNFI＞0.9; CFI ＞0.9
※First model 1: Delete V10 (Anger), First model 2: Delete V11 (Shame/Shyness)

20. Properties of Revised Measurement Model
This table shows the properties of revised measurement model.
All indicator t values indicate that all factor loadings are significant.
From the result of reliability and variance extracted estimates,
We can say this revised model perform pretty well.

21. 5.3 Path Analysis
All the hypotheses are verified, except H8
The effect of interpersonal relations on behavioral intentions)
*** denotes a significant value (p<0.001); ** denotes a significant value (p<0.05)

22. 6. DISSCUSSION 6.1 Conclusion
All the hypotheses are verified, except H8 (The effect of interpersonal relations on behavioral intentions).
Service Value is the key influence on passenger satisfaction and behavioral intentions.
Service Sacrifice is the key influence on service value.
Finally, I would like to make some concluding remarks for today’s presentation:
According to the result of path analysis, we can find~~~~

23. 6.2 Managerial Implication
Increasing service value by reducing service sacrifice
Setting reasonable fares
Reducing out of vehicle time
Reducing passenger perception of waiting time and in vehicle time
Companies could cooperate with public transport services or offer the information for passenger
to reduce out of vehicle.
And offer entertainment facilities, such as TV programs, massage chairs or newspapers and magazines,
to divert the attention of passengers away from waiting.
to Reducing passenger perception of waiting time and in vehicle time

24. 6.3 Suggestions for Future Research
Other latent variables should included in the model, such as trust and user involvement.
Further analyses about the switching barriers for alternative transportation modes.
Comparing the difference between each routes or different passengers.
1. Consumer decision process is highly complex, so using a few latent variables is difficult
to explaining behavior fully .
So other latent variables should included in the model, such as trust and user involvement,
such as trust and user involvement.
2. Different modes have different characteristics, they should have different types of switching
barriers. So, future study can have further analyses about the switching barriers for
alternative transportation modes.
3. Using the proposed model to compare the difference between each routes or different passengers.
Can help us to gather more information about the passengers, and help company to make their
business strategy.

25. THE END
Ladies and gentlemen, it has been a great pleasure for me to be here.
Thank you again!!