Do the organizational forms affect passenger satisfaction? Evidence from Chinese public transport service

Abstract

This paper presents a discussion on the relationship between organizational forms (including the ownership structure and the contractual practices) and passenger satisfaction of Chinese public transport service. To test this proposition, an original rich data set covering 4702 respondents and 58 public transport operators of 13 cities for the period 2013–2014 is used. We firstly estimate the passenger satisfaction based on customer satisfaction theory and PLS-SEM, and then take into consideration the mixed logit model to assess the effect between them. Conclusions drawn from the study are summarized as follows: ① The effect of organizational forms on the passenger satisfaction of public transport service is confirmed. ② Public transport services franchised to public ownership offer higher passenger satisfaction than those franchised to private ownership and mixed ownership. ③ Public transport services regulated by the management contracts incite more passenger satisfaction than those regulated by net cost contracts and gross cost contracts.