MASTER THESIS Service Science Program Karlstad University Spring 2009 - A study of travelers’ perception in Indonesia - CUSTOMER SATISFACTION IN PUBLIC BUS TRANSPORT Title

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Title

CUSTOMER SATISFACTION IN PUBLIC BUS TRANSPORT

- A study of travelers’ perception in Indonesia -

Supervisor:

Margareta Friman

Thesis by:

Oktiani Astuti Budiono

MASTER THESIS Service Science Program

Karlstad University

Spring 2009

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Word of Gratitude

As a Master program student in service science, Karlstad University, I have felt privileged and grateful. I would like to therefore take this opportunity to express my gratitude to many people who have contributed to the completion of this master thesis.

First of all I would like to express my deepest gratitude to my main supervisor, Professor Margareta Friman (SAMOT). Margaret is not only a dedicated researcher and source of inspiration – she is also a great supervisor that makes me finish this master thesis due to limited time. Thank you for supporting and valuable insight. I also thanks to Professor Munawar for giving some positive feedback in order to improve my thesis.

I would like to thanks to Lars Haglund for his support and kindness to me and all Indonesian group in order to success in completing the program on time. Thank you for everything you have taught me for making the research paper. I could never have managed that on my own. I also would like to express my appreciation to Prof Siti Malkamah and all UGM staff for their hard work in order to make me could experience higher education in Karlstad University.

I would also express deep gratitude to my former boss in ministry of transportation, Wahyu Satrio Utomo for giving me an opportunity to take the scholarship and trust me from day one I joint in the ministry five years ago. Wahyu is not only a great boss that trust and motivate me to do better and never lose faith to change the organization, he is also being a great example and inspired me in many ways. I feel lucky and honor to have opportunity to work with him.

My education has been funded by Ministry of transportation. I am most grateful to this organization for supporting my education in UGM and Karlstad University. In addition, I would like to thank my friends that help me for collected data and give me support that I needed in order to complete my task.

Thanks also to my husband Dhori and my daughter Anisya, my mom Agustin, and my sister Andina and her husband. The love and support you given to me, not only during my academic education but also throughout my live, have been the most important reason for where I am today.

Karlstad, June 2009 Oktiani Astuti

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Abstract

An increase in population generates increasing in travel demand. Indonesia as one of the most populated countries in the world next after China, India, and USA face a large number of travel demand. Nowadays, Indonesia deals with an explosive growth in vehicle ownership and utilization. An increased road length and new roads generate faster and longer trips, more trips by car and higher car ownership all of which adds up to more traffic congestion and pollution. Public transport is one important solution for this problem. Public transport operators are forced to place emphasis on the monitoring and improvements of the services provided in an attempt to address the increasing rate of car ownership. This study focuses on traveler’s satisfaction with service quality attributes. Using self rate questionnaire to investigate overall customer satisfaction and factor that influence public transport users’ satisfaction. Data were analyzed using descriptive, correlation, factor and regression analysis. One main finding reported that customer is not satisfied yet with public transport service (M=2.5, SD=0.9). The correlation analysis reported frequency (r=.50,p=.001), comfort travel by bus (r=.49,p=.001), on board security (r=.48,p=.001),and travel time (r=.48,p=.001), are top four factors that positively correlate with overall satisfaction. Factor analysis grouped fourteen specific service quality attributes into two factors, functional and soft factor.

Both the functional quality factor and soft quality factor demonstrated significant effect on overall customer satisfaction with public transport in Indonesia. The standardized regression coefficient reported that functional quality factors (β=.393, p=.001) that consist of frequency, price, punctuality and travel time, plays stronger influence on overall customer satisfaction than soft factor (β=.288, p=.001). It is highly recommended to pay more attention on functional factor in order to improve and develop attractive and marketable public transport. From regression analysis suggested that two factor that were measure only have low influence on overall customer satisfaction, and it is interesting to investigates another original factor from Indonesia perspectives that also has influence in overall satisfaction. To enrich and give the perspective in local level, data analysis also carried out for both cities; Jakarta and Jogjakarta. The results suggested similar result with the main finding. This means that so far, the condition is remain similar because customer in both cities evaluate that public bus transport were not satisfied.

Key word: Customer satisfaction attributes of service quality, public transport

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1. INTRODUCTION

The introductory section gives a picture of the incitements for this thesis. In this section a brief introduction is given as well as the objectives of this master thesis together with its limitations. The public transport in Indonesia is also presented with the aim to give the reader a broader picture of the current situation. The final section will presents an outline of the master thesis.

1.1 Background

Increasing travel demand and preferences in using private vehicle is causing rapid motorization in many counties around the world. Most people are now highly dependent on private motorize travel (Ellaway et al. 2003). This phenomenon was caused because of attractiveness of car and people love to drive (Beirão & Sarsfield Cabral 2007). An increased private motorization has resulted in an increased traffic congestion which in turn result in longer travel times for many people (Beirão &

Sarsfield Cabral 2007; Asri & Hidayat 2005)

In addition to congestion, private motorization is also affecting the safety of vulnerable road users (Kodukula 2009), high consumption of non-renewable resource (Aßmann & Sieber 2005), and causes serious threat to the quality of human environments (Goodwin 1996; Greene & Wegener 1997). In order to prevent more problems caused by this increase in motorization it is highly recommended by many researchers as well as public decision makers to provide an attractive public transport service as an alternative transport mode in many cities.

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Page | 2 Public transport should become part of a solution for sustainable transport in the future. However, in order to keep and attract more passengers, public transport must to have high service quality to satisfy and fulfill more wide range of different customer’s needs (Oliver 1980; Anable 2005). It is important to summarize knowledge about what drives customer satisfaction and dissatisfaction in public transport area to design an attractive and marketable public transport. The focus of this thesis is Indonesian Public Transport where the number of private vehicles is increasing rapidly.

1.2 Indonesian Public Transport

Indonesia is the forth populous country in the word after China (1,324.7 million), India (1,149.3 million) and United State of America (304.5 million). Indonesia’s population includes 239.9 million people and is growing steadily at a rate of 1.6%

annually. This high number of population and positive population growth automatically result in high number of travel demand nowadays and in the future. With an 3.32%

annual increasing rate of gross domestic product, an increasing rate of private vehicles with 10.69% per year, and an increasing rate of road length with 2% (ADB & ASEAN 2003), Indonesia is now dealing with high level of traffic congestion.

Rapid motorization is derive from car and private motorize preference in choosing travel mode in fulfill customer travel demand. According to several studies that the writer summarize in previous report (Budiono 2009b), preference of using car because public transport still could not compete with the attractiveness of private car or motorcycle, such as low flexibility, no direct access, longer travel time, and unsafe when traveling with public transport. Take Jakarta as example of high number car use preference. As capital city, Jakarta is dealing with high traffic congestion since the road

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Page | 3 users are composed of 43% wheel vehicles and 57% motor cycles. 98% of the road users are private vehicles that accommodate 44% of the total travel demand, 2% are public transport users that serve 53% of the travel demand (Dinas Perhubungan, 2007).

Developing attractive and marketable public transport is an emergency solution, otherwise Indonesia will suffer with high level of congestion and others negative causes that related to car user preferences.

Another situation that causes traffic congestion is mix road use between motorized and non-motorized vehicle, which is very common in Indonesia. There is an intense competition for road space and traffic does not operate in good order. Lane discipline is low and even nonexistent for motorcyclists. Motorcycles, making up the majority in the traffic fleet and dictate how traffic behaves. They create very small gaps, causing a very critical situation. Beside motorcycles as majority of road users, there are several different types of public transport, from motorize public transport such as commuter train, busses, minibus, bemo, ojek and Bajaj, to non-motorize public transport such as becak and bike ojek.

Traffic congestion causes longer travel time, pollution, and high consumption of non-renewable energy resource. Public transport, as suggested as a solution to this problem, is already introduced in Indonesia. There is a wide range of public transport operating in Indonesia, from human-powered pedicabs (becak) to minibuses that served citizen’s daily travel demand. This wide range of public transport is not effective enough to reduce traffic congestion and sometime become the source of congestion. Becak, non motorized public transport, is served for short-distances trips and for maximal two passengers. When becak operates in busy road, the congestion becomes worse. Ojeks, motorcycle public transport, offer services for slightly longer distances and only serve

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Page | 4 one passenger. Hybrid three-wheeled motor-taxis, called ‘‘Bajajs’’, is a service for maximum four passengers at a time and provide less comfort than a private car, while the larger three-wheeled ‘‘Bemos’’ and ‘‘Toyokos’’ carry as many as up to eight passengers in more crowded conditions. Finally, the larger microlets and minibuses carry ten to twenty-five passengers. Overall, there are little concern for safety and traffic discipline. The Bemos are registered in the district they serve, and operate thus in a restricted territory. The mini- and micro- buses are regulated by the Public Transport Authority, especially regarding vehicle feasibility, fares, and schedules (Cervero, 2000).

Indonesia needs public transport that could serve wide range of travel demand and do not make road congestion worse.

Another problem regarding public transport sector in developing countries is regarding with majority unit composed by small-sized vehicles, owned and operated (or leased) by single individuals. Most drivers are low-skilled young men who migrated to cities from the countryside. Overabundances of idle labor in developing countries makes informal transport an attractive employment opportunity. This condition leads to ignorance of passenger’s safety and discipline in using road.

Informal transport vehicles are often low-performing and old. The informal sector almost always delivers paratransit-type services, meaning services are either door-to- door or flexible enough to deviate from standard routes. Pricing is similarly flexible.

Informal services operate often in a laissez-faire environment, prompting operators who survive on low profit margins to actively, and sometimes dangerously, compete for customers. Almost all type of Indonesia public transport services stop almost anywhere to board passengers, there are overloaded passengers, and unsafe driving habits.

Sometimes they only offer frequent services at peak hours and in peak directions, while

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Page | 5 leaving off-peak riders waiting until certain amount of seating capacity is filled which may take more than an hour.

Based on a previous survey (Liden et al. 2008) it has been concluded that Indonesian public transport is delivering poor service quality, poor maintenance of fleet, and unsafe operation. A large share of the vehicle fleet consists of second-hand vehicles purchased from industrialized countries (Aßmann & Sieber 2005) ages of the vehicles are quit old and there is a low maintenance budget. For example, it is common that the door is not closed during the trip which causes several security problems but also facilitates the escape of pickpockets. There are also security problems when buses leave and arrive at bus stops (Budiono 2009a).

Working conditions are low; the crew is paid as a freelance and the salary depends on the sales of the day. The salary system have several consequences: longer bus stop periods that could cause road congestion since the crew wants to have a minimum of capacity before leaving and/or driving too fast in order to compete with another driver in order to get higher number of passenger and thus secure the chance of getting more customers. Accidents occur not only because of over-competition but also because of a lack of driver training, lack of discipline, the use of inappropriate vehicles, and poor vehicle maintenance.

Pedestrian facilities do not support the use of public transport. Serious problem is associated with road space encroachment. Pedestrian facilities are normally misused by street vendors and/or parked motorcycles which force pedestrians to walk on the roads. In some cases, market activities may use part of the road, narrowing the effective width used by traffic. Road signs and markings are not adequate and not effectively used (Cervero 2000).

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Page | 6 1.3 Objectives

The objective of this master thesis is two folded. An overall aim is to gain a better understanding of overall customer satisfaction in Indonesia public bus transport.

Assessing and improving quality of public bus transport service is important to address the increasing rate of car ownership. More specifically, it is important to investigate which service quality attributes that have the most influence to customer satisfaction in Indonesia public bus transport. A second aim is thus to investigate the structure of service quality in Indonesia’s public bus transport in order to make priority on quality improvements in the future.

1.4 The scope

The scope of this master thesis is to investigate overall customer satisfaction with conventional public bus transport in Jakarta and Jogjakarta, Indonesia. Since Indonesia has a wide range of public transport, the study will be conducted to measure the conventional public bus transport. The study of conventional public bus transport is important sign to makes it up since, the conventional public bus transport one is majority of the public bus transport in Indonesia.

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Page | 7 1.5 Structure of the thesis

The Initial section consists of background to the research area, overview about Indonesia public transport condition, objective, scope and structure of master thesis.

The second section presents related studies regarding customer need and satisfaction in public transport area. The third section presents the chosen research method, respondents, questionnaire, procedure and method of data analysis. The fourth section present demographic, travel behavior, and result from statistical analysis such as correlation, factor, and regression analysis in global and local measurement. The fifth section present discussion and conclusions drawn from this work, a summary of the contributions, study limitations and a prospect of future research.

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2. THEORITICAL FRAMEWORK

This chapter will give an overview of literature that is related to the research problem. This chapter will introduce the concept of customer satisfaction and perceived service quality by public transport users.

2.1 Customer Satisfaction and Service Quality

In recent times all organization has increasingly come to understand the importance of customer satisfaction. It is widely understood that it is far less costly to keep existing customers than it is to wind new ones. For many organizations in the public sector, customer satisfaction will itself be the measure of success.

According to Oliver (1997), satisfaction is defined as the customer’s fulfillment.

It is a judgment that a product or service feature, or the product or service itself, provided (or is providing) a pleasurable level of consumption-related fulfillment, including levels of under- or over-fulfillment. Need fulfillment is a comparative processes giving rise to the satisfaction responses. Any gaps lead to disconfirmation; i.e., Positive disconfirmations increases or maintain satisfaction and negative disconfirmation create dissatisfaction.

Service quality (Parasuraman et al. 1988; Gronroos 1984) is defined as a comparison between customer expectation and perception of service. Service quality in general consists of five distinct dimensions: tangibles (Physical facilities, equipment, and appearance of personnel), reliability (ability to perform the promised service dependably and accurately), responsiveness (willingness to help customer and provide prompt service), assurance (knowledge and courtesy of employees and their ability to

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Page | 9 inspire trust and confidence), and empathy (caring, individualized attention the firm provide its customer).

The relationship between quality and satisfaction is complex due to the intricate interplay between performance dimension used in quality judgments and those used in satisfaction judgments, and due to the differences between encounter-specific and global judgment. Performance based quality has been framed as a result from ideal expectation and from idiosyncratic preference of individual consumer. Similarly, satisfaction has been shown to respond to quality disconfirmations and to other performance dimensions disconfirmations not related to the quality experience.

In the service area, although developed independently, quality and satisfaction share one notable feature. Both view satisfaction as a function of expectancy disconfirmation and service quality as function of satisfaction.

In proposing a quality influences satisfaction model, it is necessary to formally endorse the perspective that satisfaction encompasses quality at the counter-specific level. Thus, quality is one of the key dimensions which are factored into the consumer’s satisfaction judgments. Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated and implied needs. In short term, product or service features determine quality which then satisfies consumer needs.

Subsequent to this more immediate effect, it will be assumed that satisfaction may reinforce global quality perceptions but only indirectly. Thus, the relationship between the two is as shown in figure 1. Quality is hypothesized as one dimension on which satisfaction is based, and satisfaction is one potential influence on global quality perceptions.

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Figure 1: Asymmetric Reciprocal Influence between Quality and Satisfaction at the Encounter and Global Level

Sources: Oliver {{102 Oliver,Richard L. 1997/a;}}

Under the assumption that customers can recognize quality as they have come to define it, they can also form expectation of quality. Perceived quality then can be compared to quality expectation, resulting in disconfirmation of quality which influences their satisfaction judgments.

Several studies regarding satisfaction and dissatisfaction in public transport has been conducted to develop and create attractive public transport. For instance, Stradling et al. conducted a survey by sending self-completion questionnaire in eight areas of the city of Edinburgh, Scotland. From 68 these items that were measured as

“things that I dislike” or “things that discourage me from using the bus in Edinburgh”, eight underlying factors were reported. One factor was labeled as “feeling unsafe”

which contain the behavior of other passengers, feeling unsafe while travelling at night and feeling unsafe while waiting for buses. Another factors were labeled as “preference of walking and cycling”, “problem with service provision like no direct route”,

“unwanted arousal” (i.e., intrusions and interruptions such as inconvenience journey

ENCOUNTER GLOBAL

Quality QUALITY

SATISFACTION Satisfaction

Very strong influence

Part or partial influence Very weak or no influence

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Page | 11 because of overcrowded passengers, other passenger smoking habit, and other annoyed people behavior on the bus), “preference of car use”, “cost”, “disability and discomfort”, and “low self image” because of travelling with public transport.

Gatersleben and Uzzell (2007) investigated affective experiences of daily commute. Surveys were sending to Surrey University’s employees. The results revealed that commuting by car as well as by public transport can be stressful because of delays caused by the traffic volume. Public transport was perceived as unpleasant and public transport users expressed a more negative attitude toward their daily commute then users of other transport modes. The negative attitudes were shown to be related to stress as well as boredom caused by delays and waiting time. Gatersleben and Uzzell (2007) also suggest that public transport is stressful due to unpredictability and longer travel times. This study also acknowledges some sources of pleasure for public transport users. Attributes relating to pleasurable feelings were as the possibility to read during the trip, to listen to music, to interact with other people, and to look at the passing scenery.

UK Department for transport (2003) has also conducted studies regarding customer need in public transport. High frequency of service, services that are reliable and fares that offer value for money are revealed as important needs of UK public transport users. The bus also has to have a broad range of destinations to fulfill travel demand of customer. In this report, the users also reported about the importance of understandable time table information in bus stop and in local newspaper in order to make them aware of the existence of the service. Simple ticketing arrangement is also important in order to make them use public transport.

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Page | 12 Fujii et al. (2001) conducted an investigation in Osaka (Japan) during a temporary closure of freeway that connected between Osaka and Sakai City. The survey was distributed at three tollgates from 6:00 am to 8:30 am. An important finding was that the closure of the freeway increased public transport use. Second, it was also found that the expected commute time by public transport was overestimated by automobile commuters. Third, after experiences of public transport the overestimates of commute times were corrected. And finally, people who corrected their commute time continued to use public transport when the freeway was reopened.

Van Vugt et al. (1996) conducted an investigation of the motivational factors underlying the decision to commute by car or public transportation. 192 employees of a publishing company participated and filed out a questionnaire containing questions relating to social value orientation, the commuting situation and a series of post- experimental questions. The findings provided strong evidence for the conclusion that individuals prefer options yielding shorter travel time as well as an alternative with high frequency of public transport.

Fellesson and Friman (2008) conducted a transnational comparison of customers’

public transport perceived service satisfaction in eight cities (Stockholm, Barcelona, Copenhagen, Geneva, Helsinki, Vienna, Berlin, Manchester and Oslo) in Europe. The result showed four general factors: system such as traffic supply, reliability and information; bus and bus stop design that makes customer comfortable and enjoy the travel experience; staff skill, knowledge and attitude toward customer; and safety not only both in the bus and bus stop but also safe from traffic accident. Furthermore, it was concluded that differences in public transport technology and infrastructure may cause differences in individual item loadings.

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Page | 13 Eboli and Mazulla (2007) investigated service quality attributes important for customer satisfaction with a bus transit service in Cosenza, Italia. Respondent were asked to rate the importance and satisfaction with 16 service quality attributes (bus stop availability, route characteristic, frequency, reliability, bus stop furniture, bus overcrowding, cleanliness, cost, information, promotion, safety on board, personal security, personnel, complains, environmental protection and bus stop maintenance).

The result shows that the latent variable important for global customer satisfaction is service planning which is reflected in reliability, frequency, information, promotion, personnel and complaint.

Beirão & Sarsfield Cabral (2007) summarizes advantages in using public transport according to Portugal public transport users. The result highlights the importance of a cost friendly and less stressful public transport service. It is perceived as less stressful since there is no need to drive, it is possible to relax and one may be able to rest or read.

Travel time on exclusive bus lanes is considered faster than the car, there is less exhaust emissions and there are opportunities to talk to fellow passenger while travelling.

A literature review (Oktiani 2009) confirms that there is research with an aim to indentify unattractive and disappointing factors in public transport. For instance, Beirão (2007) conducted depth interviews in Porto to find out dissatisfying factors. Customers reported waste time, too crowded, lack of comfort, time uncertainty, lack of control, unreliability, long waiting times, need to transfer, they cannot change route to avoid traffic congestion, lack of flexibility, and long walking time. Edvardsson (1998) found that driver incompetence, punctuality and information were important factors causing dissatisfaction.

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Page | 14 Friman et al. (Friman et al. 2001) conducted a mail survey to investigate factors affecting customer satisfaction in public transport service in Sweden. The results showed that overall cumulative satisfaction related to attribute specific cumulative satisfaction and remembered frequencies of negative critical incidents (i.g., the driver behaves unexpectedly bad or the bus is leaving before scheduled departure time)..

In yet another study, Friman (1998) examined the effect of quality improvements in public transport on customer satisfaction and frequency of perceived negative critical incidents. The studies were conducted in 13 regions in Sweden that were conducting quality improvements in public transport. Data were collected before and after implementation. Comparing passenger reaction is a way to understand the type of improvement that increases customer satisfaction. The conclusion of this study is that customer satisfaction influenced by quality improvements only to a limited extent.

Furthermore, the effect was directionally opposite in that respondents reported less satisfaction and higher frequencies of negative critical incidents after the quality improvements had been implemented. Thus quality improvements do not always boost customer satisfaction. Thus, it is not the improvements per se that determine the success of public transport, but a given level of quality coupled with the perception of the service.

Safety issues were found by Smith and Clark (2000) as a constraint for people to choose public transport as travel mode of choice. Pick pocketing, overcharging facilitates by overcrowding and lack of supervisor is important factors. UK Department for Transport (2009) reported that young people (mostly male) involved in assaulting behavior, theft, vandalism and criminal damage are a problem for public transport users.

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Page | 15 Adreassen (1995) conducted a survey among public transport users in Norway. As a result, he argued that in order to keep market share, public transport should provide service for different type of customers. Differentiation of service will lead to increasing customer satisfaction because of higher degree of congruence between supply and demand. Most important factors to work with are travel time, fare level and design of public transport.

To summarize, knowledge from previous research shows that public transport is still an alternative as a travel mode of choice for many people. In order to keep current passenger, public transport has to improve the service to accommodate wide range of customer need and expectation (Beirão & Sarsfield Cabral 2007; Andreassen 1995)

From the findings described in this paper, it is possible to classify important service quality attributes into at least four broader categories. These categories are equivalent to categories pointed out by Friman et al (2001): reliability of the system, treatment by employee, simplicity of information and design. First, reliability of the system consists of different dimensions like punctuality, travel time, and reliability in the service. Second, treatment by employee includes driving skills and employee knowledge.

Third, simplicity of information contains service attributes related to information, price and availability of ticket retailers. The last category design is related to comfort in the vehicle, cleanliness and safety from traffic accidents.

Negative critical incident and customer dissatisfaction could be a constraint for people to continue using public transport (Friman et al. 2001; Friman & Gärling 2001)..

Service recovery and information about service improvement do not always seem to increase customer satisfaction. Another way to promote public service to attract people is by publishing benefits of using public transport. Factors to put forward is that it is

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Page | 16 possible to take pleasure in public transport, that it is un-stressful and that is possible to have a productive time journey (Beirão & Sarsfield Cabral 2007)

Environmental concerns such as reducing pollution and congestion (Anable 2005) could also become good campaign material to attract people using public transport.

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3

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RESEARCH METHODS

This chapter presents the research approach used in this study, research design, sample selection methods, data collection methods, and data analysis method. At the end of this methodology part of validity and reliability issues will be discussed to follow the quality standard of the research.

3.1 Research Design

The independent variable used in this study is overall satisfaction with Indonesia Public bus transport service. Dependent variables is specific service quality attributes which consist of public bus transport departure frequency, travel time, punctuality, price, information, cleanliness, staff behavior, bus comfort, seat availability, bus stop security, safe from accident, on board security, bus stop condition, and information in bus stop.

Data were collected using questionnaire, the most common tool to evaluate the similar aim. Data analysis using statistical tool carried out in two ways, to investigate both global and local satisfaction on public bus transport.

3.2 Respondents

Target respondent is a person that is in the range of age between 15 and 60, living in Jakarta and Jogjakarta and has the experience of using public bus transport. The ages range 15 to 60 years old chosen because people in these age have a routine commute travel behavior and probably has taken public bus transport as their mode of choice.

From the age of 15, the children usually have to go to school that is not in their own

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Page | 18 neighborhood. After age of 60, people usually do not have routine commuter behavior because they already pension.

3.3 Questionnaire

The questionnaire was divided into three parts: (1) Demographics, the questioner item correspondent to city they live, age, sex, driving license, access to private transport mode and recommendation to use public bus transport, (2) Travel pattern behavior, the related item concern about routine commute pattern, commute purpose, distance of travel, travel time, numbers of commute day in a week, majority daily transport of choice, and public bus transport use pattern, (3) items measuring satisfaction with frequency, travel time, punctuality, price, information, cleanness, staff behavior, comfort, seat availability, bus stop security and condition, safety, and information.

The questionnaire was developed based on Benchmarking in European Service of Public Transport survey’s tool and previous research that conducted in Jogjakarta (Liden et al. 2008). Service quality items that are measured derived from Friman’s finding (2001) for public transport, such as reliability, employee, simplicity and design.

Respondent were asked to rate their satisfaction to the item of overall satisfaction and 14 items in specific quality attribute for public transport. Likert-type scale rate ranged from strongly disagree, disagree, neither agree nor disagree, agree and strongly agree.

3.4 Procedure

Self-rating questionnaires were used as a data collection method in this study.

Reasons of using three sections questionnaire to collect data are (1) The respondent has break time when fill out the questionnaire in order to understand the aim of each

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Page | 19 section questionnaire; and (2) questionnaire offers confidentiality. The respondents were asked to fill out the questionnaire at the office (Jakarta area) or at bus stops in Jogjakarta. Jakarta and Jogjakarta were chosen since these two cities provide not only one system in public bus transport, but the conventional and new system. The new system is supposed to deliver a higher quality with concern to specifically bus stop condition and security on board (because door is closed and bus is only stop in certain bus stop). The data represents satisfaction with the conventional bus system, which is very useful data for Public bus transport Authority if they want to increase the numbers of public bus transport users in the future.

In Jakarta, data were collected by handing out the questionnaire in different offices by instructed surveyors. This data collection method was used since it may be hard to find people that are willing to participate in the bus stop. People waiting at bus stops are often in a hurry and thus reluctant to fill out the questionnaire before the bus arrive. In Jogjakarta, data were collected at bus stops.

In Jogjakarta, data were collected in at 8-10 in the morning and 3-5 in the afternoon. For Jakarta area, data were collected during working hour, 8-16.

The filled out questionnaires were administrated and coded by one survey person in each city. These surveyors were chosen due to their past experience in handing similar surveys to make sure that all data were handled in the same way. Guidance for coding was provided to guarantee an equal administration.

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Page | 20 3.5 Data analysis

The aim of this study is to measure overall customer satisfaction and investigates the related service quality attributes that influence the most. Questionnaire is the most common tool to investigate the similar aim. The data that were collected will be analyzed using statistical method.

To summarize and rearrange the data several interrelated procedure are performed during the data analysis stage (Muijs 2004). Statistical tools (SPSS) were used for data input and analysis. Data Analysis was conducted in three steps; first correlation analysis was undertaken to measure linear correlation between variables. Then factor analysis was performed with the aim to identify group or cluster of variables. Third, a regression analysis was performed to evaluate the contribution of each factor on overall satisfaction.

Data analysis were carried out in two ways, the first one is to measure all data collected to investigate the voice of Indonesia customer. The second analysis, data was analysis according to the city, Jakarta and Jogjakarta, the aim is to investigate the data locally to make recommendation for both citied, since the culture and traffic condition has their own uniqueness.

3.6 Validity and reliability

Two key concepts in quantitative methods are validity and reliability. Validity has three distinct aspects, such as content validity, criterion validity and constructs validity.

Content validity refers to whether or not the content of the manifest variable is right to measure the latent concept that the study are trying to measure. An extensive search of the literature on the concept that will be measured is one way to achieve content

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Page | 21 validity. Criterion validity also related to the theory and expected to be able to predict certain outcomes. There are two ways to establish criterion validity; first, the good knowledge of theory relating to the concept. Second, conducting statistical analysis measure correlation between dependent variable and Independent variable. Construct validity is a slightly more complex issue relating to the internal structure of an instrument and the concept it is measuring. Factor analysis was design to see whether each item measured the subscale it was supposed to measure to look at construct validity.

Numbers of different steps were taken to ensure the validity of the study: Data was collected from the reliable sources, from respondent who has experiences in using public bus transport. Survey question were made based on literature review and frame of reference to ensure result validity. Data collected within two weeks to minimize major event has been changed with the related topic.

Reliability refers to the consistency of a measure. This notion can be taken to comprise two elements: external and internal reliability. External reliability refers to the degree to which measure is consistent over time. This approach gauging reliability is known as test/retest reliability. Internal reliability refers to the degree of internal consistency of a measure. One method of establishing in this sense is through split-half method.

SPSS software offers “reliability analysis statistic”, Reliability analysis allows you to study the properties of measurement scales and the item that make them up. The reliability Analysis procedure calculates a number of commonly used measures of scale reliability and also provides information about the relationships between individual items in the scale.

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Page | 22 Numbers of different step were taken to ensure the reliability of the study:

Questionnaire was constructed based on BEST (benchmarking in European Service of Public transport) and the previous study that conducted in Jogjakarta By Universitas Gadjah Mada and Karlstad university. The questionnaire was divided into three parts in order to make responders could more concentrate on each question; The theories that have been selected for the study was clearly describes and research question has been formulated based on the previous theory. Data have collected base on the frame of reference that was drawn from the discussed theories. The objective to make sure that the investigator will follow the same procedures and used the same questionnaires object, the same conclusion would be made.

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Page | 23 4

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FINDINGS

This section contains finding from statistical analysis. Demographic statistics, correlation, factor, and regression analysis are performed on the collected data. The additional finding from local measurement is also included to enrich recommendation that could be applied in local area.

4.1 Demographics

278 questionnaires were filled out and 265 were accepted for further analysis.

The respondent consisted of 159 men and 119 women. 108 respondents lived in Jakarta and 170 respondents lived in Jogjakarta. The age range of respondents consisted of 9.7%

age of 15-20;31.3% age of 21-25; 45% age of 26-35; 9% age of 36-45; and 5% age of 46- 60. 33.1% of the respondents were students; 29.9% civil servant; 29.5% worked in the private sector; 5.4% worked at home and 2.2% were unemployed. 82.4% of the respondents had a driving license. 26.1% travelled to work, 4.9% travelled to work combined with a trip with another purpose; 22.8% travelled to school, 7.7% travelled to school combined with a trip with another purpose, 6.6% were shopping trips, 12.1%

were leisure trips and 12.9% were other trips. Majority of respondents had access to a private vehicle (83.3%).

Many respondents commuted frequently (92.1%). Primary transport mode of choice were motor cycle (60.4%), bus (17%), car (8.7%), train (3.6%), walking (2.5%).

7.7% were combination of different travel modes. Of the respondents, 51.8% used public bus transport rarely, 20.5% used public bus transport on a daily basis, 15.5% used public bus transport 2-3 times a week and 5% never used public bus transport.

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Page | 24 4.2 Descriptive and Correlation analysis

Descriptive analysis was performed in order to examine respondent perceived satisfaction on observed variable, overall satisfaction and specific service quality attribute. Means and number of valid response were summarized in Table 1. Following with correlation analysis was performed in order to understand how the specific service quality attributes relate to overall customer satisfaction. Correlation coefficient between observed variable are presented in Table 2.

Table 1: Distribution of satisfaction responses

^SD ^D ^NA/D ^A ^SA

Overall satisfaction N 33 113 87 44

% 11.9 40.6 31.3 15.8

Q1 Frequency N 24 115 80 58

% 8.6 41.4 28.8 20.9

Q2 Travel Time N 49 124 57 42 2

% 17.6 44.6 20.5 15.1 0.7

Q3 Punctuality N 39 139 62 35

% 14.0 50.0 22.3 12.6

Q4 Price N 14 72 94 93 3

% 5.0 25.9 33.8 33.5 1.1

Q5 Information N 44 113 75 41

% 15.8 40.6 27.0 14.7

Q6 Cleanliness N 56 138 55 27

% 20.1 49.6 19.8 9.7

Q7 Staff Behaviour N 54 118 82 22

% 19.4 42.4 29.5 7.9

Q8 Bus Comfort N 55 126 73 23

% 19.8 45.3 26.3 8.3

Q9 Seat availability N 30 113 83 49 1

% 10.8 40.6 29.9 17.6 0.4

Q10 Bus stop security N 30 93 102 51

% 10.8 33.5 36.7 18.3

Q11 Safe from accident N 27 95 97 58

% 9.7 34.2 34.9 20.9

Q12 On board security N 32 131 83 30

% 11.5 47.1 29.9 10.8

Q13 Bus stop condition N 31 127 76 38 2

% 11.2 45.7 27.3 13.7 0.7

Q14 Information in bus stop N 37 110 82 47 1

% 13.3 39.6 29.5 16.9 0.4

SD = Strongly Disagree, D = Disagree, NA/D = neither agree or disagree, A = Agree, SA = Strongly Agree

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Page | 25 As shown in Table 2, the associated means all service quality attributes demonstrated that costumers were dissatisfied with service quality in public bus transport (M < 3.0). Only a few customers responded that they were very satisfied.

Table 2 summarizes the distribution of responses. The mean of overall satisfaction also indicate that customers are not satisfied with public bus transport (M=2.51, SD=0.90).

From 278 respondents, only 44 customers claimed that they were satisfied with the service. No responded that they were very satisfied with the service.

Table 2 shows that all specific service quality attributes have a significant positive relation with overall satisfaction (p<.001). This means that when satisfaction with a specific service quality attributes increases, overall satisfaction increase too. Frequency of departures (r = .50, p = .001), satisfaction with bus comfort (r = .49, p = .001), satisfaction with security on board buses (r = .48, p = .001) and travel time (r =.45, p = .001) has the highest relation to overall satisfaction. Thus, these attributes have a strong and high relationship with overall customer satisfaction. Furthermore, as shown in Table 1, satisfaction with the price of the service (r = .27, p = .001) and seat availability (r = .27, p = .001) has the lowest correlation to overall satisfaction.

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Page | 26

Table 2: Correlations between specific qualities attributes, Means (M) and Standardized Deviation (SD)

Overall

Sat Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14

Overall satisfaction 1.00

Frequency Q1 0.50 1.00

Travel Time Q2 0.45 0.38 1.00

Punctuality Q3 0.42 0.40 0.47 1.00

Price Q4 0.27 0.34 0.21 0.27 1.00

Information Q5 0.32 0.28 0.31 0.44 0.23 1.00

Cleanliness Q6 0.42 0.30 0.36 0.43 0.29 0.43 1.00

Staff behaviour Q7 0.37 0.18 0.36 0.39 0.30 0.45 0.67 1.00

Bus comfort Q8 0.49 0.27 0.39 0.49 0.27 0.50 0.68 0.72 1.00

Seat availability Q9 0.27 0.33 0.28 0.35 0.24 0.35 0.48 0.38 0.50 1.00

Bus stop security Q10 0.32 0.33 0.37 0.47 0.34 0.42 0.46 0.47 0.53 0.42 1.00

Safe from accident Q11 0.36 0.24 0.32 0.31 0.20 0.30 0.37 0.47 0.56 0.37 0.52 1.00

On board security Q12 0.48 0.21 0.35 0.39 0.25 0.37 0.50 0.58 0.68 0.38 0.59 0.64 1.00

Bus stop condition Q13 0.40 0.18 0.24 0.34 0.17 0.35 0.35 0.36 0.44 0.30 0.41 0.42 0.54 1.00

Info bus stop Q14 0.40 0.27 0.32 0.51 0.20 0.55 0.48 0.50 0.56 0.44 0.54 0.47 0.50 0.54 1.00

Mean ^2.51 ^2.62 ^2.36 ^2.34 ^3.00 ^2.41 ^2.19 ^2.26 ^2.23 ^2.56 ^2.63 ^2.67 ^2.40 ^2.46 ^2.51

SD ^0.90 ^0.91 ^0.97 ^0.87 ^0.92 ^0.93 ^0.87 ^0.86 ^0.86 ^0.92 ^0.91 ^0.92 ^0.83 ^0.89 ^0.94

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Page | 27 4.3 Factor analysis

Factor analysis is a statistical tool to explore the structure of the perceived service quality. The identified dimensions (factors) define broader areas for planning and action. The general purpose is to find a way to summarize the information contained in a number of composite dimensions. Principal component analysis with VARIMAX rotation and selection of factor based on the Kaiser criterion was carried out.

Principle components analysis was used because the primary purpose was to identify and compute composite coping scores for the factors underlying the short version of the Attributes service quality. The analysis resulted in two factor solution, which explained 53.8% of the variance. The eigenvalues for those factors were 4.9 and 2.6. All factors have reliability (cronbach’s alpha) greater than .677. The factor loading matrix for final solution is presented in Table 3

The first factor summarizes soft quality, such as security issues and comfort. The second factor concerns the functionality quality, i.e, frequency, travel time, punctuality and price.

Internal consistency for each of the scales was examined using Cronbach’s alpha.

The alphas indicated a high reliability (0.90) for the functional quality factor and moderate (0.68) for the soft quality factor. No substantial increases in alpha for any of the scales could have been achieved by eliminating more items.

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Page | 28 Table 3: Rotated Component Matrix grouping service quality factor

Attribute Factor

1 2

Frequency 0.806

Price 0.619

Punctuality 0.597

Travel Time 0.596

On board security 0.819

Bus comfort 0.810

Staff Behavior 0.734

Safe from accident 0.720

Info bus stop 0.717

Bus stop condition 0.683

Cleanliness 0.629

Bus stop security 0.625

Information 0.509

Seat availability 0.473

4.4 Regression Analysis

The satisfaction scales were summed up and averaged to yield two factor indices corresponding to Factor 1 and Factor 2. Regression analysis was then performed with the purpose to predict values of the dependent variable (overall satisfaction) from the two independent factors.

Overall satisfaction scores were regressed on a functional and a soft factor of public bus transport service quality. The slope of the regression line was significantly greater than zero, indicating that overall satisfaction tend to increased as functional and soft quality factor increased. [y=154+(.400*soft quality)+(.541*functional quality)].

These two predictors accounted for under half of variance in overall satisfaction (R²= .375), which was highly significant F = 78.463, p< .001. For these data functional and soft factor quality have a positive beta value indicating positive relationships. Both the

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Page | 29 functional factor (β=.393, p=.001) and the soft factor (β=.288, p=.001) demonstrated a significant effect on overall customer satisfaction with public bus transport in Indonesia.

The standardized regression coefficients showed that the functional factor was a stronger predictor than the soft quality factor

.

4.5 Specific analysis in Jakarta

Jakarta, as the capital city of Indonesia, has a high travel demand from Jakarta and from the hinterland surrounding (Bogor, Depok, Tangerang, and Bekasi cities). High travel demand pertain to that Jakarta is an attractive working place for many business operators in Indonesia. Headquarters of big companies and government offices, both national and local, are stationed in Jakarta.

4.5.1 Demographic

278 questionnaires were filled out and 265 were accepted for further analysis.

The respondent consisted of 159 men and 119 women. 108 respondents lived in Jakarta and 170 respondents lived in Jogjakarta. The age range of respondents consisted of 9.7%

age of 15-20; 31.3% age of 21-25; 45% age of 26-35; 9% age of 36-45; and 5% age of 46- 60. 33.1% of the respondents were students; 29.9% civil servant; 29.5% worked in the private sector; 5.4% worked at home and 2.2% were unemployed. 82.4% of the respondents had a driving license. 26.1% travelled to work, 4.9% travelled to work combined with a trip with another purpose; 22.8% travelled to school, 7.7% travelled to school combined with a trip with another purpose, 6.6% were shopping trips, 12.1%

were leisure trips and 12.9% were other trips. Some respondents had access to a private vehicle (83.3%) while the majority had not (16.7%).

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Page | 30 Many respondents commuted frequently (92.1%). Primary transport modes of choice were motor cycle (60.4%), bus (17%), car (8.7%), train (3.6%), and walking (2.5%).

7.7% were combination of different travel modes. Of the respondents, 51.8% used public bus transport rarely, 20.5% used public bus transport on a daily basis, 15.5% used public bus transport 2-3 times a week and 5% never used public bus transport.

4.5.2 Descriptive and Correlation analysis

Means (M) and Standard Deviation (SD) in Jakarta were summarized in Table 5.

Correlation analysis was performed in order to understand how the specific service quality attributes relate to overall customer satisfaction. Correlation coefficients between observed variable are presented in Table 4. As shown in Table 5, the associated means for all service quality attributes demonstrated that costumers were in general dissatisfied with the service quality in public bus transport (M < 3.0). Only a few customers responded that they were very satisfied. Table 5 summarizes the distribution of responses. The mean of overall satisfaction also indicate that customers are not satisfied with public bus transport (M=2.48, SD=0.97). From 106 respondents, only 22 customers claimed that they were satisfied with the service. No responded that they were very satisfied with the service.

Table 5 shows that all specific service quality attributes have a significant positive relation with overall satisfaction (p<.001). This means that when satisfaction with a specific service quality attributes increases, overall satisfaction increase too. Frequency of departures (r = .53, p = .001), satisfaction with security on board buses (r = .48, p = .001), satisfaction with bus comfort (r = .45, p = .001), and cleanliness (r =.45, p = .001) has the highest relation to overall satisfaction. Thus, these attributes have a strong and

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Page | 31 high relationship with overall customer satisfaction. Furthermore, as shown in Table 5, satisfaction with safe from accident (r = .34, p = .001), bus stop condition (r = .35, p = .001), and information (r = .36, p = .001) has the lowest correlation to overall satisfaction. Table 5 also suggested that price did not have significant relationship with overall satisfaction.

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Page | 32

Table 4: Distribution of satisfaction responses (Jakarta Area)

SD D ND/A A SA

Overall satisfaction N 16 43 27 20

% 15.0 40.2 25.2 18.7

Q1 Frequency N 10 52 26 18

% 9.3 48.6 24.3 16.8

Q2 Travel Time N 22 54 11 16

% 20.6 50.5 10.3 15.0

Q3 Punctuality N 17 55 24 8

% 15.9 51.4 22.4 7.5

Q4 Price N 9 29 33 32 2

% 8.4 27.1 30.8 29.9 1.9

Q5 Information N 17 49 23 14

% 15.9 45.8 21.5 13.1

Q6 Cleanliness N 30 55 11 9

% 28.0 51.4 10.3 8.4

Q7 Staff Behaviour N 24 48 24 9

% 22.4 44.9 22.4 8.4

Q8 Bus Comfort N 26 47 26 7

% 24.3 43.9 24.3 6.5

Q9 Seat availability N 19 57 20 9

% 17.8 53.3 18.7 8.4

Q10 Bus stop security N 14 44 32 15

% 13.1 41.1 29.9 14.0

Q11 Safe from accident N 11 41 37 17

% 10.3 38.3 34.6 15.9

Q12 On board security N 13 55 26 11

% 12.1 51.4 24.3 10.3

Q13 Bus stop condition N 17 55 20 11

% 15.9 51.4 18.7 10.3

Q14 Information in bus stop N 20 44 28 14

% 18.7 41.1 26.2 13.1