A structural equation analysis of the QSL relationship with passenger riding experience on high speed rail: An empirical study of Taiwan and Korea

Abstract

Taiwan High Speed Rail (THSR) began operations in early 2007 after nearly three decades spent initiating project, planning and acquiring land, creating detailed designs and undergoing civil construction. Currently, the franchised corporation operates trains at a top speed of 300 km/h when running from north to south in Taiwan. Service Quality, customer Satisfaction, and Loyalty (QSL) continue to be the critical factors that influence long-term operation, growth, and profits of service-oriented transportation systems. In this article, a structural equation model (SEM) is first proposed and then respecified in order to measure the impact of mediating variables in the passenger continuance behavior on the QSL chain with high speed rail (HSR) service. Furthermore, a cross-country comparison of the actual riding experience on the THSR and Korea Train eXpress (KTX) was demonstrated by analyzing different groups of respondents. The empirical study verified that the QSL relationship is influenced by the introduction of mediating variables, such as corporate image and passenger complaints, into the HSR service industry. This analysis provides an evidential basis with the evaluating indicators so that the management team can deploy an effective marketing strategy, achieve continuous quality improvement, and efficiently manage customer relationships to ensure passengers’ future commitment and confidence in the HSR systems.