Satisfaction Index for a BOT Project: Continuous Quality Improvement in the Operations Stage

Abstract

This paper sets out to develop and test a structural equation model of passenger continuance behavior for a high-speed rail (HSR) service. A passenger satisfaction index (PSI) is developed to serve as a reference for continuous quality improvement. This study empirically examines the interactions and hypothesized relationships among service Quality, passenger Satisfaction, and Loyalty (QSL) using the mediator constructs of corporate image and passenger complaints. A survey was administered for the Taiwan High Speed Rail (THSR) and Korea Train eXpress (KTX) to understand the perceptions of the passengers with regard to quality and service performance. Both of the surveyed services are build-operate-transfer (BOT) projects currently in the franchised operation stage. The empirical results verified that the QSL chain is significantly influenced by the introduction of mediating constructs. The proposed PSI can help the corporations deploy an effective marketing strategy, achieve continuous quality improvement, and efficiently manage customer relationships to improve passenger satisfaction and increase confidence in the HSR systems.