Passenger Loyalty Analysis: Case Study on Indonesian Commuter Trains

Nazwirman Nazwirman,Zainal Zawir Simon

doi:10.15408/ess.v10i1.12556

Nazwirman Nazwirman, Zainal Zawir Simon

Open Access

https://doi.org/10.15408/ess.v10i1.12556

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Abstract

This study was aim is to analyze and describe passenger loyalty influenced by the desired service quality performance and satisfaction at PT Kereta Commuter Indonesia (KCI). A sample consisting of 198 respondents was selected based on the particular criteria. The analysis method used was Satistical Package for Social Science (SPSS) version 24 and Analysis of Moment Structure (AMOS) version 22. The results obtained from three hypotheses revealed that the performance of service quality influenced significantly on satisfaction. The service quality performance influenced loyalty significantly. Satisfaction significantly influences loyalty. The customer satisfaction mediated the significance influence of service quality dimensions toward loyalty of the customers. Important dimension in this study were that KCI officers were disposed to help if needed; passengers had a positive attitude; and KCI was the main choice rated by respondents. This study provided theoretical and managerial contribution for marketing service feild. In terms of theoretical implications, each dimension of the performance of service quality could show different levels of the effect toward consumer behavior and was able to offer significant contribution for a company.

Highlights

Rail transportation creates new challenges for railway operators because of the competitive environment (Zeybek, 2018)
This study focuses on service quality performance, because it can make a significant contribution to customer satisfaction and loyalty (Seth and Desmukh, 2005)
The sampled of 200 respondents, 198 were analyzed and met the criteria

Summary

Introduction

Rail transportation creates new challenges for railway operators because of the competitive environment (Zeybek, 2018). Current business challenges is trying to attract new customers, and trying to adopt strategies to maintain and promote loyalty to build long-term relationships with customers (Akbar, et al, 2013). The most significant is preventing loss and retaining customers so that the company’s market share and profits can be guaranteed (Osman et al, 2009). Customer loyalty presents a paradox that appears as an attitude-based phenomenon and can be significantly influenced by customer relationship management (Mark et al, 2003). Customer loyalty start from their trust service quality; positive and beneficial attitudes that are manifested repeatedly and the stability of consumer buying behavior Service quality contributes significantly to customer satisfaction and loyalty and is attractive to profitability (Seth & Deshmukh, 2005). Increasing company profitability can be realized through efficiency and effectiveness in service delivery (Chang & Chen, 1998)

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