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RESEARCH PROPSAL
ON

SERVICE QUALITY ATTRIBUTES AFFECTING CUSTOMER
SATISFACTIN FOR CITY BUS TRANSIT: EXPERIENCE FROM
ANBESSA CITY BUS ENTERPRISE


By:
Birhanu Asfaw Bayile





















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1. Introduction
Service quality and customer satisfaction are growing concern to business organizations
throughout the world. It is widely accepted that customer satisfaction is critical indicator of
business performance. Customer satisfaction studies have been proven to be an essential tool in
trying to optimize services provided to users. This strategy is very profitable for both companies
and customers, particularly for transit agencies and passengers.
For transit agencies, as in other service industries, increase in customer satisfaction translates
into retained markets, increased use of the system, newly attracted customers, and a more
positive public image (TRB, 1999). To accomplish these ends, public transport needs reliable
and efficient methods of identifying the determinants of service quality from the customers
perspective.
According to Todd Litman (2008), improved transit service quality
Benefits existing transit passengers (who would use transit even without improvements);
Benefits new transit passengers (who would only use transit if service is improved);
Benefits society by reducing traffic problems (congestion, roadway and parking costs,
consumer costs, accidents, energy consumption, and pollution emissions);
Provides scale economies (increasing ridership can create a positive feedback cycle to
improved service, increased public support, more transit oriented land use, and further
ridership increases); and
Benefits transit agencies by increasing fare revenue.
While city bus transport is the most desirable and sustainable system from societal perspective, a
well planned system can provide a high level of mobility to a large section of the population with
least cost. However, a poorly planned system causes inconvenience to passengers, losses
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ridership encourages use of other modes of public transport and private vehicles and imposes
financial burden to the company.
Moreover, customer satisfaction is a critical issue in the success of any business system.
Customer satisfaction and service quality are often treated together as a function of a customers
perception, expectations, and preferences (Dunkel and Taylor, 2003). It is the feeling or attitude
of a customer towards a product or service after it has been used. In essence, the customer
perceives the level of service quality as being a function of the magnitude and direction of the
gap between expected service and perceived service.
A number of scholars have posited that the objective of improving service quality is to minimize
the gap that may exist between customers desires and their actual experiences (Bolton and
Drew, 1991; Carman, 1990; Karlftis et al., 2001). However, for the measurement of expectations
and perceptions, possibly one of the most important contributions has been made by
Parasuraman et al. This team implemented a carefully sequenced research project to evolve an
effective model for assessing the effectiveness and quality of the service provision process. The
magnitude and influence of the service gaps can be measured using SERVQUAL instrument.
The technique involves surveying customers to determine their expectations and perceptions by
asking them to compare their perspectives of desired service with experience of actual service
received (Chasten and Mangles, 2002).
Public transport in Addis Ababa, Ethiopia, consists of conventional bus service provided by
publicly owned Anbessa City Bus Enterprise (ACBE), minibuses and medium buses operated by
the private sector, conventional taxis, and charter buses exclusively for the employees of large
organizations. However, for the present study, ACBE is selected as target organization. It was
established immediately after the Italian invasion in 1943 G.C. by collecting vehicles and garage
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materials from the invader. Between 1943 and 1959, the Public Transport Company had only 10
buses to serve the people of Addis Ababa city following 4 routes.
In 1994, under the proclamation number 187/86, with a total of 14 million ETB (Ethiopian Birr),
the company was named as ACBE. The enterprise has reported with a steady growth since its
inception and acquiring more vehicles to meet the increasing demand for its services. Currently,
the enterprise provides services to about 430,000 passengers per day, following 101 routes with
465 buses. Moreover, ACBE charges a range of flat fare depending on distance between ETB
1.00 and ETB 10.00 per trip, which is affordable to the poor and students as compared to taxis
(ACBE Pamphlet).

2. Rational of the Study
The survival of any company in the present competitive and dynamic world is highly dependent
on its performance, which further determined by the quality of service as delivered to the
customers. Therefore, service quality and customer satisfaction are the major issues for the
companies that are operating in public transport, and reported as the factors determining success
or failure of any organization (Andreassen, 1995; Eskildsen and Dahlgaard, 2000). Therefore,
maintaining effective customer service helps to build and maintain customer relationship that is
the key to success in public transport service, particularly in city bus transport.
An efficient and effective urban transportation system promotes urban development and renewal
by providing adequate access and mobility. However, mobility in developing world is often
characterized by travel demand that far exceeds supply (Darido, 2003). The city of Addis Ababa
is not an exception to this reality. Bus transport in Addis Ababa is plagued by many problems
that render it largely unattractive. The majority of its patrons are of necessity, those who have no
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access to alternative modes of transport thus captive to it. Therefore, an improvement in city
transportation system helps cities of developing countries to be more efficient and productive
(Button, 1993).
Furthermore, access to city bus transport in Addis Ababa is reduced by long walking distance
and long waiting times largely due to inadequate service and route coverage, increasing
population, poor road infrastructure of the city, and financial and managerial constraints.
Convenience thus is severely compromised. Transit conditions lack comfort mainly because of
loading conditions, often hinder people from boarding at the desired time as crowding imposes
relatively sever discomfort. It also characterized by poor supply levels at peak hours, low
operating speeds resulting from traffic congestion along major routes and the consequent high
operating costs. During peak hours, the buses are overcrowded and operate even with out closing
their doors, exposing the people to accident, suffocations, and pick pocketing in the bus. In
addition, there is no well organized means to gather accurate and timely information about
customers expectation and complaint. The system is not suitable for the weak in particular and
the public in general.
In order to satisfy customers need, it is desirable for city bus transport service providers to
identify the attributes customers (passengers) use in their assessment of overall service quality
and satisfaction, and which attributes are more important. Therefore, the study will explore the
relationship between overall customer satisfaction (i.e. user satisfaction with overall service) and
service quality attributes, based on needs and expectations of the users of Anbessa City Bus
service.


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3. Objective of the Study
The basic objective of the study is to evaluate ACBE service delivery, and overall customer
satisfaction. However, specific objectives include.
1. To identify the key factors determining service quality in the context of city bus
transportation.
2. To determine the level of overall customer satisfaction with ACBE.
3. To see the association between service quality attributes and overall customer
satisfaction.
4. To assess the relative importance of each service dimension in enhancing passenger
satisfaction.

4. Research Methodology
The study will use both primary and secondary sources for the purpose of gathering data. The
primary data will be obtained through structured questionnaire designed to the sample passengers
at the bus terminals/stops. However, responses will also be obtained through a semi-structured
questionnaire from the staff of the enterprise to support/examine the opinions of the respondent
passengers.
Statements of the SERVQUAL scale (Parasuraman et.al. 1988) will be modified to fit in the
context of the transportation service for the purpose of measuring service quality. A preliminary
study, further, will be carried out with 50 respondents to test the validity and reliability of the
modified instrument. The obtained data will be subjected to factor analysis in identifying the
dimensions of the service quality contributing to overall customer satisfaction. All the items with
a factor loading of 0.5 and above will be accepted for use in the final questionnaire.
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However, the instrument for the final study will be translated to the local language (Amharic)
with a consideration of better understanding among respondents than English. Demographic
profile of the respondents will also be obtained and will be used in assessing customer
satisfaction based on it. The secondary data will be gathered from various reports and documents
prepared by the enterprise, as well as, the books, reports and journals published by various
agencies.
Sample size and sampling technique: The target population of the study is the customers of
ACBE in the city of Addis Ababa. The data will be collected from 400 respondents waiting for
services at terminals /bus stops, and the selection will be made using stratified random sampling
to ensure the best possible representation from various localities. Therefore, the city will be
divided into three areas based on the location of the major terminals/stops (namely Legehare,
Mercato, and St. Giorgis). The entire area covered by each bus terminals is considered as strata.
From these, 50 routes will be randomly selected and then simple random technique will be
applied to select the respondents from each selected routes. In addition 50 employees, who have
direct contact with customers, will be contacted personally by the researcher using purposive
sampling.
Techniques of data analysis: The data thus obtained will be analyzed using factor analysis,
multiple regression analysis, and non-parametric statistical techniques will be used to see the
association of some demographic variables with service quality and satisfaction. However, for
presenting the data, tables will be used.

5. Significance of the Study
To enhance the experience with Addis Ababa city bus transportation service, it is important to
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obtain insights from the actual users of the system about the changes they would like to see to
better meet their needs. By identifying the key dimensions that offer value and influence
customer satisfaction, alternative bus service strategies can be devised, so that more people opt in
the favor of the service. In turn, this would alleviate the present congestion and related problems
faced by the city.
Customer satisfaction is an important issue which many companies especially those
organizations who deliver services should be aware of so that they can achieve organizational
objectives. However, many organizations, particularly those of public sectors, in Ethiopia do not
seem to give much emphasis for their customers.
Therefore, the researcher hopes that:
The study will help ACBE to develop better awareness about the strength and weakens of
their services to the passengers. In addition, the company may get the ideas on what and
how to improve the service.
The finding of the study will provide an insight for other researchers who will seek to
conduct in-depth study on customer satisfaction in public transport and other related
sectors.

6. Scope, Limitations, and Directions for Future Research
The study will cover the issue of city bus transport in the city of Addis Ababa. Due to the area of
the problem and certain limitations related to time and other resources, the scope is limited to the
assessment of service quality and passenger satisfaction to selected routes of Addis Ababa city.
Thus, various dimensions of service quality for the city bus transport services, the overall level
of services of Anbessa City Bus Enterprise, and the relative importance of each of the
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dimensions in influencing customers` satisfaction will be examined.
However, other major limitation of this study includes small sample size due to financial, time
and other resources. Therefore, the proposed study will be repeated by other scholars using
additional determinants those are not covered by the present, pertaining to service quality and
customer satisfaction. Also, the results of the study will be verified using many of the routes and
large sample size than what is proposed here before generalization.

















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7. References
1. Andreassen, T.W. (1995), (Dis)satisfaction with public services: the case of public
transportation, Journal of Services Marketing. Vol. 9, pp 30-41.
2. Bolton, R.N. and Drew, J.H. (1991), A longitudinal analysis of the impact of service
changes on customer attitudes, Journal of Marketing. Vol. 55, No. 1, pp 1-9.
3. Button, K.J. (1993), Transport Economics. 2
nd
edition Edward Elgar publishing limited.
4. Carman, J.M. (1990), Consumer perceptions of service quality: an assessment of the
SERVQUAL dimensions, Journal of Retailing. Vol. 66, No. 1, pp 33-55.
5. Chasten, I. and Mangles, T. (2002), Small business marketing management. Pal Grave
Publishers Ltd. New York.
6. Darido, G.B. (2003), Regulation of road based public transportation and strategies for
the developing world: Transportation Research Record 1835, TRB National Research
Council, Washington DC, pp 6373.
7. Dunkel, J. and Taylor, B. (2003), Keeping Customers Happy: Strategies for Success.
Jaico Puplishing House, New Delhi.
8. Eskildsen, J.K., and J.J. Dahlgaard (2000), A causal model for employee satisfaction,
Total Quality Management. Vol. 11, No. 8, pp 1081-1094.
9. Karlaftis, M.G., J. Golias, and E. Papadimitriou (2001), Transit quality as an integrated
traffic management strategy: measuring perceived service, Journal of Public
Transportation. Vol. 4, No. 1.
10. Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1988), SERVQUAL: a multiple item
scale for measuring consumer perceptions of service quality, Journal of Retailing. Vol.
64, pp 12-40.
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11. Todd, L. (2008), Valuing Transit Service Quality Improvements, Journal of Public
Transport. Victoria Transportation Institute, Vol. 11, No. 2.
12. TRB (1999), A Handbook for measuring customer satisfaction and service quality
transit. Transit Cooperative Research Program, Research Results Report, No. 47.