CHAPTER ONE

INTRODUCTION

1.1 Background of Study

Transportation is a critical element in determining the sustainability of a city. It can be considered one of the effective transportation networks that enable people to commute from one place to another. However, one of the reasons why transport remains popular among the people is the connectivity from one place to another, affordability in terms of fares, and easy access.

Moreover, transport provides economic benefits to the user as well as to the community, as a result, the services rendered are subsidized by the governments, and therefore significant cities highlighted that transport reduces road congestion. It helps the fares are reasonable with reliable services (Bachok et al., 2014). A recent study conducted in passengers to reach their destinations within a reasonable time.

For a long time the performance evaluations of public road  transportation has been carried out of the service managers’ perspective, based on the cost efficiency and cost effectiveness of public road transport services and operations. However, in the last few decades, service quality has become a major area of attention for practitioners, managers and researchers, who have focused on determining the relationship between service quality and passengers’ satisfaction.

In West Africa, major investment are being made in public road transport systems to make them more competitive vice-versa other means of transport, most notably private cars. New services are being developed and old ones are being improved (Fornell et al., 2016).  However, an increase in supply qualitatively and quantitatively will not automatically lead to a corresponding increase in demand and satisfaction [Chalak et al., 2016]. To make sure that investment really attracts both the existing and the potential customers envisaged knowledge of satisfaction and service performance should provide policymakers and operational managers in public transport with valuable information.

Quality is increasingly becoming a strategic issue in the western world [Coron & Taylor 2013]. One of the main reasons for the success of Japanese industry in the 1970 and 1980s was that the Japanese realized early that quality concept should emanate from the requirements and expectations of the customers . This perception played a vital role in bringing about success (Coron & Taylor 2013)

Today service quality has become more vital than ever before because service providers have realized that they have to provide customer perceived value, if they want to stay in business. As global competition increases, customers have more variation to choose from and of course service quality will become their priority when spending their (customer) money, especially as they try to maximize the value in return as well as satisfaction for every unit of money spent.

Customer’s satisfaction is considered to be the most important factor whether it is meant for a good or a service. In case of failure to satisfy the customers the firm will be replaced by others and when industries offering various service, have to be more vigilant because there is a special attitude that plays an important role attracting and retaining the customers [Aidoo et al., 2013].

The underlying assumption is that there is a direct link between the actual service and the customer perception of it. To increase public road transport use, the service should be designed and performed in a way that accommodates the levels of service required by customers [Korole et al., 2015] stated that the current crisis of the world has affected a lot of people and firms as well. One of the most important factors behind this crisis was the shortage and increased price of petroleum product. Inflation increased and as a reaction layoffs started taking place. Because of lesser job securities, it resulted in less affordability of the luxuries. It became difficult for people to afford many things, personal transport was also one of these luxuries and people had to rely on public transport (Gronroos, 2000)

Meanwhile, with the current globalization of the economic situation in central Africa is characterized by the presence of high potential competitors where company must try to maintain their margin. The improvement in customer satisfaction has become more necessary to stay in competition. Also, the involvement of service managers in the cross functional customer team results in an increased ability to influence implementation of collaborative initiative in order to create customer satisfaction.

Also, Service quality has attracted an intimate interest in understanding the customer. It is perceived that the quality of the service can have a direct and indirect influence on the retention of customers. The interest in service quality is also motivated by the fact that services have characteristics that do not only make them different from material goods but are also problematic (Oliver, 2019).In this competitive world, high service quality is required for all service providers. As service quality becomes increasingly fierce the voice and preference of the customer also become the priority, however, at bus station it is realized that the low level of interaction among members of the administration and between customers pursed delay in carrying out service quality on customer satisfaction.

Again, customer satisfaction has been one of the top tools for successful business. Customer satisfaction is the non-overall evaluation based on the total purchase and consumption experience with the good or service overtime With marketing, customer satisfaction comes along with it which means it ascertains the expectation of the customers on how the goods and services are being facilitated by companies

Moreover, there is less study measuring the service quality of public buses in Buea municipality. Previously, Thian (2012) had conducted a study about the service quality of public buses in Kuching areas, the capital city of Sarawak. This study aims to measure customer perception on service quality of inter-district public bus in the Central Region of Sarawak, whereas service quality dimension in SERVQUAL as factors influencing customer satisfaction. This study allows public bus users to express their perceptions and feeling regarding the service quality of public bus transportation in Sarawak.

The results from this study will provide information and ideas to public bus transport providers, government, and relevant agencies on how well service delivered to customers, highlight any weakness in service delivery, and where the improvement could be made. In terms of knowledge and literature, the study contributes the use of SERVQUAL model in public transport industry studies for developing countries that have similar environmental and situational factors like transport companies in the Sarawak state (Malaysia).

Customer satisfaction is crucial for the success and survival of any business. It is one of the important determinants of loyalty. That’s why; it is a key aspect of companies’ strategic planning such as transport companies in Ibadan, Nigeria .Customer satisfaction is a sense of pleasure and bliss as one feels after purchase or usage. Before making a purchase, customers have some expectations about the performance of product and services.

If the products meet or exceed their expectations then it can be said that customers are satisfied and delighted. !n the other hand, when actual performance does not meet or falls below their expectations it can be said that they are dissatisfied.Organisations know that one satisfied customer tells his/her feelings regarding products and services to five other people while on the other hand one dissatisfied customer tells his/her experience to ten other people that creates a bad impression among existing as well as new customers (james, 2010).

And customers with the passage of time measure how much service providers add value in their service that influences their satisfaction level. As previous studies indicated a significant relationship exists between service quality dimensions and customer satisfaction (Sachdev et al, 2004). The five dimensions tangibility, reliability,assurance, empathy and responsiveness are positively correlated with satisfaction of customers and they contribute a lot to customer satisfaction (parasuraman et al.,1988; Arokiasamy and Abdullah, 2013).

Satisfaction is defined as an experience of fulfillment of an expected outcome. Sigala (2004) sees satisfaction or dissatisfaction with a program or facilities influenced by expectations regarding the level of quality. Satisfaction depends on numerous factors and there is no dearth of literatures on this subject. Previous studies explained that customers

Moreso, Service quality and customer satisfaction are important aspects of business since a company’s growth is largely dependent on how well it maintains its customers through service and how well they keep their customers satisfied (Edward and Sahadev, 2011). According to Chang et al. (2017); customer satisfaction is expected to result from good service efficiency, which will improve customer engagement and interrelationship.

González et al. (2007) asserted that customer satisfaction is linked to high service quality, which makes businesses more competitive in the marketplace. This study uses the SERVQUAL framework to define service quality. This framework uses five dimensions to  account for service quality, namely, tangibles, reliability, responsiveness, assurance, and empathy. Identifying issues in service and customer satisfaction can lead to high service quality.

Furthermore, service quality can be characterized by analyzing the variations between planned and perceived service. Service quality and customer satisfaction have a positive relationship.

To conclude, now our days in Cameroon precisely in Buea, Transportation operation is a business which many people are involved in and it helps to move people from one place to another for example largest transport companies in Buea include; Musango travel agency an Amour Mezam With the trending competition that transportation is being faced with, every transport operator comes in with a good service quality that she uses to satisfy his customer. This study there seeks to examine the effect of service quality on customer satisfaction in transport companies in Buea Municipality

 1.2 Statement of the Problem

The trend of world markets has changed noticeably from agricultural to service markets (Asian Development Outlook, 2007). All of the service businesses are trying their best to improve their Transport operation and service quality in order to make customers satisfied with their services. Transport operators now focus more on the quality standards in order to meet the basic needs and expectations of the customers in the transport environment.

The best way to increase regular and potential customers is to gain their trust. Nowadays, most customers look for a strong brand image. Therefore, it is important for an organisation to know the current interests and needs of customers. Different factors influence purchase decision of customers. An organisation can launch a rewards and recognition programme through the online platform or social media in order to achieve customer satisfaction. With that, the organisation can keep track of the customers’ needs and even collaborate with the customers

Also, most of times, departure time was not respected by these companies because they wanted to have the bus full before leaving. Coupled with the fact that sometimes if they bus is not full, they will be stopping on the way to pick up customers which will delay their time of arriver.

Moreover, over loading of passengers is also one of the problems faces by transport companies in mile 17 Buea , with experience of some of the customers buses which needed to carry about 70 people will end up carrying about 80 people whereby some people will end up sitting on staircases in the bus, on containers on passengers ways which turns to be very risky because in case of overloading it can cause accident easily.

According to Anderson et al (2007) failures of services such as delay of transportation affects customers’ satisfaction and this creates bias to customers and thereby resulting in dissatisfaction. Studies further explained friendliness of the personnel especially bus driver behavior in relation to service frequency to have an impact on customer satisfaction, by bringing better communication and knowledge of its customers’ needs Disney, (1998):Taylor et al., (2008) explained that frequent services increase satisfaction and urban transportation patronage. A study by Cavana and Corbett (2002) see reliability, convenience and responsiveness as important factors that bring about customer satisfaction.

To keep and attract more bus passengers,  transport companies must have high service quality to satisfy and fulfill a wider range of different passenger needs. Increases in passenger satisfaction are translated into retained markets, increased use of the system, new customers,and more positive public image.To accomplish these ends, Transport companies needs to be reliable and efficient inorder identify the determinants of service quality from customer perceptions. Thus, the focus of this research work is to investigate the service quality attributes that affects customers’ satisfaction in transport companies in Mile 17 Park Buea.

1.3 Research Questions

Main Research Question

What is the effect of service quality on customer satisfaction in transport companies in Mile 17 Park Buea ?

Specific Research Questions include;

1. What is the effect of transport service responsiveness on customers satisfaction in the Mile 17 Motor Park Buea?
2. To what extent does transport service reliability affect customer satisfaction in the Mile 17 Motor Park Buea?
3. What is the effect of transport service tangibility on customer satisfaction in the Mile 17 Motor Park Buea?

Check out: Transport & Logistics Project Topics and Materials