CHAPTER- 2

REVIEW OF LITERATURE

The review of literature is meant to observe and search what has been done in the

past on the problem in question. The various aspects and issues of this are presented

through review of existing literature. In this chapter, a modest attempt has been made to

understand the prevailing theories, hypotheses and methodologies on the subject. The gap

that exists in the area of research has also been identified through this attempt. The

relevant studies undertaken for review are detailed and discussed as follows:

Singh (1973) examined the organizational set-up, control, and financing of road

transport in Patiala. The study covered the managerial aspect of road transport. It covered

public sector agencies like Punjab Roadways Transport Corporation, Haryana Roadways

Transport Corporation, and Pepsu Road Transport Corporation. The private sector

includes Patiala Bus Service, Sirhind; Khanna Transport, Sirhind; National Transport,

Patiala; and Baba Bir Bus Service, Patiala. The financial performance was analyzed

through various ratios. The primary and secondary data was obtained through surveys,

reports, statistical abstracts, and articles published by the Punjab government. The

researchers found that the new road transport facilities have increased manifold by

replacing the old ones. Further, the various private company being small in size were

unable to provide modern techniques of organizational control, and co-operative transport

services. He emphasized that small transport companies need to be merged with the large

ones for providing better service quality to the passengers.

Chand (1975) analyzed the importance of nationalization of road passenger

transport in India with special reference to Punjab, Haryana and Himachal Pradesh. He

studied physical, financial and overall efficiency of the transport. Physical efficiency was

19
analyzed on the basis of increased output per unit and economic use of input. Financial

performance was analyzed on the basis of return on capital invested, receipt per mile, net

profit per mile, interest on capital and indoor-transport insurance. Overall efficiency was

evaluated in terms of suitable price policy, adequate provision for depreciation, essential

reserve funds, improved productivity, good management and proper care of employees.

The study found various drawbacks in these corporations like poor administration set up,

rigid controls, delay in settlement of disputes, etc. Further, there was no planning for

expansion and improvement in services. The study viewed that nationalization of private

road passenger transport would lead to operational efficiency and a decline in cost per unit

which would be beneficial for both the customers and employees. He suggested certain

reforms for purchasing new vehicles, rationalization of roads and tax structure for

improving financial health of this sector.

Chopra (1976), in his research study, author emphasized on the need to improve

the public relationship by highlighting the basic problems of PRTC in order to win

goodwill and public confidence. The primary data was collected with the help of a

questionnaire and interviews. The researcher found that public relations aspect was

missing from the organization‟s objectives; the set-up of public relations was defective;

and the mode employed for public relations was faulty. He suggested various means to

improve the relations of the corporation with the public and government. These were

mainly focused on informing the public about the basic problems of the undertaking,

enhancing co-operation by removing misconceptions, and winning the endorsement of

legislative and government agencies through the influence of a favourable public opinion.

Rahi (1977), in his research work, analysed the performance of Punjab Roadways

Transport Corporation and Ambala Bus Syndicate Pvt. Ltd. on the basis of profitability

and managerial efficiency. Managerial efficiency was evaluated in terms of aggregate

20
traffic receipts, aggregate traffic service provided, aggregate effective kilometers,

aggregate cost, aggregate capital employed and rate of return on capital invested. The

study was based on the secondary data; and the time period of study was 1961 to 1975. He

found that private operators were governed by stringent rules and regulations of the

government and that adversely affect their profitability but the Punjab Roadways showed

better profitability because it got financial assistance from the government. It was

suggested that the government should simplify the procedure for permits and licensing.

Chand (1980) tried to find out those factors which influence the performance of

Haryana Roadways. The researcher took various indicators into consideration for

evaluating the performance of the undertaking. These included profit maximization,

physical performance in terms of certain indicators like size of the fleet, percentage fleet

utilization, vehicle utilization and bus-staff ratio and performance in terms of cost per

effective kilometer in terms of cost per effective net of taxes. The first two indicators tried

to evaluate the performance, while the last one was motivated by the desire to improve

upon the functioning of the undertaking. He concluded that profitability was not

encouraging at all as the total profit showed a downward trend during the period under

study.

Srivastava (1981), in his book, analyzed the historical development of transport in

India. He discussed operating variables like rates, fares, law of productivity, state

regulations, administration, competition, financial aspect of different modes of transport

like air, water, roads and railways. He described different economic theories, trends and

curves used for defining fare structure, cost of transport, and revenue analysis.

Rao (1982), in his research study, made an attempt to examine the management

efficiency and effectiveness in managing the affairs of Delhi Transport Corporation

(DTC). He found that DTC suffered a setback due to management ineffectiveness in most

21
of the important functional areas; and this had led to heavy and mounting losses and the

consequent capital erosion. He suggested that the DTC immediately needs Government

support and control, improved scientific organizational infrastructure, effective

mechanism for planning and control of traffic operations, efficient engineering and fleet

maintenance service and sound financial management practices, and optimum utilisation

of the available resources i.e. men, material and fleet.

Vaidya (1983) examined the cost, organizational and operational structure of

different transport undertakings which provide passenger services in Punjab. The

indicators used for checking performance were bus stop facilities, waiting rooms, clean

drinking water, advance and return booking facilities, etc. Quality of transport services

was measured on the basis of incidence of breakdown, regularity and punctuality of buses.

He found that basic services were available on main bus stops in the cities but at rural bus

stops even the basic services were absent. Further, the study highlighted that the cost was

high and that was not compensated by revenue generated; and operational efficiency of the

corporations was also weak. He suggested to replace the buses, and to improve basic

facilities at bus stops for efficient working of the bus transport system in the State.

Arora (1985) analyzed the physical and financial performance of Punjab Roadways

during the period 1971-85. The ratios such as bus staff ratio, staff needed per hundred

kilometers operation, capacity analysis and consumption of diesel etc. were used for the

purpose of evaluation. He also explained the role of private operators in providing

passenger bus service in the State. He compared the performance of Punjab Roadways,

Pepsu Road Transport Corporation and 10 private operators. He found that the profitability

of public sector organisations in Punjab, viz. Punjab Roadways and Pepsu Transport

Corporation was very low as compared to the private operators. He suggested some

structural changes in the transport system in Punjab.

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 Bala (1986) analyzed the performance of Punjab Roadways in Punjab. She

analyzed the organizational structure and identified the various weaknesses. A sample

survey was conducted on 200 citizens, 200 lower level employees and 25 managerial

personnel. The study was conducted for the period 1977-78 to 1984-85. She found that the

organization was suffering from many problems like inadequate training facilities, poor

industrial relations, high corruption, leakage of revenue, poor physical and low

profitability performance, etc. She revealed that Punjab Roadways was under the direct

control of Punjab government, but delegation of authority was minimum. It was suggested

that the government should fairly distribute the routes between PRTC and Punjab

Roadways; and there was also need to overhaul the allocation of duties and responsibilities

and delegation of authority.

Murthy (1986), in his study, highlighted the limitation of conventional parameters

of evaluating the performance of STUs and suggested a new methodology known as

„capital recovery index‟ which emphasizes on the ability of STUs to generate cash and

recoupment of investment.

Bagade (1986) evolved two types of methodology for evaluation of STUs. One is

known as Quality of Service Index (QSI), designed to measure the effectiveness of quality

of operation. It is a weighted index computed by assigning appropriate weights for the

responses of the passengers relating to safety, reliability, punctuality and regularity of

operation. The second is known as „Data Envelopment Analysis‟ which aims at measuring

the overall productivity of STUs in terms of inputs made and output produced.

Arora (1987), in his book, focused on the problems of management in the road

transport industry in general, and suggested various techniques for evaluation of privately

managed road transport industry vis-a-vis state managed industry in Punjab and

concluded that both the public sector undertakings, viz. Punjab Roadways and Pepsu

23
Road Transport Corporation (PRTC) are operating much beyond their equilibrium levels

and any further sanctioning of routes to them will only increase losses rather than yielding

profits. Only the private operators are operating below the equilibrium level; and there is a

scope for increasing their capacity, utilization, and hence, returns.

Singh (1988), in his study, critically evaluated the role played by road transport as

a basic infrastructure in economic development. He also analyzed the correlation between

the development of road transport and that of other vital sectors of the economy in relation

to Bihar state. He has studied the Bihar State Road Transport Corporation as a case and

suggested certain guidelines for a suitable road development policy for Bihar and various

steps to be taken to improve the working and performance of Bihar State Road Transport

Corporation.

Parasuraman et al. (1988) described the development of 22-item instrument (called

SERVQUAL) for assessing customer perceptions of service quality in service and retailing

organizations. The authors described the procedure used in constructing and refining a

multiple-item scale to measure the service quality after discussion of conceptualization

and operationalisation of service quality. For the evidence of the scale‟s reliability, factor

structure, and validity data was collected from four independent samples empirically. The

authors discussed the findings from a follow up study in which they refined SERVQUAL

and replicated it in five different customer samples. The authors also compared findings

with those of other re-searchers who have recently employed and evaluated SERVQUAL.

The authors concluded that the purpose of SERVQUAL is to serve as a diagnostic

methodology for uncovering broad areas of company‟s service quality shortfalls and

strengths. SERVQUAL‟s dimensions and items represent core companies and industries,

as implied by the systematic, multi- stage and iterative process that produced the

instrument. The use of SERVQUAL can be fruitful supplemented with additional

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qualitative or quantitative research to uncover the causes underlying the key problem areas

or gaps identified by a SERVQUAL study.

Brown and Swartz (1989) conducted a study on medical services to explore the

concept of professional services quality and its evaluation from both the provider and

client perspectives. They used gap analysis as an appropriate approach for examining the

evaluation of a professional service. The findings provided special empirical insights on

the gaps that can arise from inconsistent perceptions of expectations and experiences

between patients and physicians. Finally, both managerial and research implications are

presented. Providers of professional services recently have awakened to consumer

challenges, competition, and the realities of marketing. With these changes, a related and

equally important issue has emerged-service quality and evaluating the service encounter.

Singh (1991a) compared the performance of two different firms in bus transport

service sector for the period 1981-89. He analyzed financial position and profitability of

Punjab State Electricity Board with Haryana State Electricity Board with the help of ratio

analysis, trend analysis, comparative financial statement, common size statement and fund

flow statement. The study further analyzed the service quality from the consumer point of

view on the basis of reliability, reasonability, price quality, etc. Employees‟ satisfaction

was also examined on the basis of prestige community, goal accomplishment, efficiency

and productivity. It was found that PSEB and HSEB were financially sick; and their

collection policy was defective. The researcher suggested the service providers to improve

their liquidity position and to adopt standard costing system for budget making.

Singh (1991b) studied the industrial relations in Pepsu Road Transport Corporation

with various aspects of human management such as recruitment, training transfer and

promotion of employees. The study was conducted for the period 1980-81 to 1990-91 by

using primary data and secondary data. The primary data was collected from workers,

25
trade union leaders and management personnel with the help of three separate interview

schedules. He found that human resource management aspect was not looked after

properly. As many 90 per cent workers, 70 per cent managerial personnel and 100 per cent

trade union leaders in the organization were found to be dissatisfied with recruitment,

selection and promotional functions of PRTC. The study suggested that performance of

the organisation can be improved by way of adopting high degree of unionization. It can

lead to increase productivity and organizational relations.

Mahajan (1993) evaluated the performance of a Public undertaking in Himachal

Pradesh during the period 1977 to 1988. Financial performance of HRTC was judged

through its capital structure, profits, and sources of funds. He also included cost and fare

structure of the corporation. For studying the perception of travelling public towards

facilities provided a questionnaire was administratered to the respondents selected from

Shimla and Hamirpur districts of Himachal Pradesh. The passengers‟ satisfaction was

judged by assessing perception of passengers towards service, public amenities, general

services, luxury services and behaviour of field staff towards passengers. Further, the

quality of service of HRTC was examined on the basis of breakdowns and punctuality of

buses and it was found that the quality of HRTC was not satisfactory. The study

emphasized on the need to monitor the transport policy in the state of Himachal Pradesh.

Singh (1993) examined and analyzed various issues pertaining to the functioning

of Punjab and Haryana passenger road transport undertakings. The study was based on the

secondary data for the period 1973-74 to 1988-89. To assess the quality of services of both

these undertakings, he studied their reliability, punctuality and regularity from operators‟

and consumers‟ viewpoint. The indicators used were bus-staff ratio, size and composition

of diesel, lubricants, number of breakdowns, number of accidents, profit margin, return on

investment, etc. The study found that higher cost and lower revenue receipt were the main

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causes of low profitability of both STUs. It was suggested that for improving the fare

structure, the organisations under study need to overcome their profitability crisis.

Adreassen (1995) conducted a survey to find out the satisfaction level of public

transport users in Norway. The researcher concluded that there should be different types of

transport for different types of customers. This would help to maintain the market share.

When different services will be provided there would be more chances of customer

satisfaction because there is a large gap between supply and demand. Other important

factors were fare, time taken to reach the destination and the type of public transport.

Modi (1996) viewed the problems of PRTC from the angle of trade unionism.

Multiple unions create problems for the management. Thus, corporation should recognize

a single bargaining agent. There should be an effective grievance handling procedure so

that workers‟ dependence on unions is reduced. The performance of leaders must be

regulated so that they devote proper time for job. Workers‟ participation should be

encouraged as it is a confidence building measure which leads to better employer-

employee relationship. Unions are mainly concerned with bread and butter of employees,

but on rare occasions participate in politically sponsored strikes at the cost of work which

results in loss of revenue.

Agarwal (1996) studied the incidence of breakdowns and accidents, and their

impact on the overall performance of the organization in detail. The provisions of

adequate maintenance facilities in depots help to improve efficiency of STUs and also

create better working conditions which motivate the workers toward greater efficiency.

The work focuses on various aspects of maintenance facilities at the depot level.

Van et al. (1996) conducted their study to determine the decision to travel by car or

by public transport means. There were 192 employees of a publishing company who were

requested to answers some questions regarding social values, and the situations being

27
encountered by them. The results clearly showed that people looked up for options that

would take short duration of time and high speed means of transport.

Adamski and Bryniarska (1996) clearly stated the negativities associated with

changing the vehicle, the mindset associated with waiting for another vehicle to arrive and

getting late due to some reasons during the journey. So, the challenge is to build such a

timetable to provide lucrative services with ease of availability and transferable services.

Cervero and Kockelman (1997) highlighted that the main factors that can affect

transit ridership are the age, gender, employment status, occupation type, race and

ethnicity. The other factors include household characteristics, size, structure and

composition of the house. All these factors are socio-economic factors. Further, some of

the important factors are lifestyle, vehicle possession, house rent, and overall income.

Oliver (1997) pointed out that true success or satisfaction lies in fulfilling the

customers‟ demand. It is determined on the basis that a product or a service is providing

the right kind of satisfaction to its consumers which may either be more than the expected

level or somewhat less than that. If the demand is fulfilled it gives rise to the satisfaction

level. In case of non-fulfilment of demands, a gap is created. However, the creation of a

positive gap leads to higher satisfaction level and vice versa.

Gunaseelan (1998) conducted a significant comparative research study to assess

the satisfaction level of passengers in a public bus transport corporation and private bus

operations in North Arcot Region of Tamil Nadu. The study was based on both primary

and secondary data. The primary data was collected through personal interviews of the

respondents. The secondary data was collected from the sources such as performance

statistics of STUs published by Central Institute of Road Transport, Pune, Annual Reports

of PATC; government reports; and published books and journals to review the

performance of STUs in India. The study revealed that the passengers are relatively more

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satisfied with the operational service of Pattukittai Azagiri Transport Corporation (PATC)

than that of the private sector. It was concluded that the STUs played a high profile in the

case of long route service, while the private operators on the short route service.

Jindal (1998), in his study, observed that there is no regular policy on recruitment,

transfer, promotion and selection of personnel in PRTC. He also dwelt on issues regarding

organizational conflict in the corporation. Unwarranted statements by political leaders‟

interference in day to day functioning of the corporation had an adverse impact on the

morale of employees. It was pointed out that workers‟ participation in management,

medical facilities, boarding and lodging facilities were absent. The working of PRTC can

be improved by way of providing these facilities to the workers.

Rajeshwri (1998) assessed the overall performance of Andhra Pradesh State Road

Transport Corporation at the state as well as regional levels. In her published work, she

has laid emphasis on the pricing policy which defines the financial and social performance

of the state. She has clearly defined the way in which the whole administration is working.

Gandhi (1998) evaluated the performance of state transport corporation in Tamil

Nadu. The corporation enjoys a good popularity; and it is the only public roadways

available for long distance users in Tamil Nadu. Various indicators were taken for the

study like market behaviour, pricing, cost structure, input availability, productivity trends,

regulatory environment, financial system, industrial relations and quality of services.

Ceder (2001) determined the various factors for improving the quality of bus

service. He found that reliability in the time table of buses is an important factor. For

increasing the number of passengers, the timetable has to be designed as per the needs of

passengers instead of expecting them to change according to the timetable. He suggested

three different ways to enhance the number of passengers which include reducing the

frequency of the departure, decreasing the number of buses available at the same time, and

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providing better services in the buses.

Fujii et al. (2001) conducted an investigation in Osaka (Japan) at the time when the

freeway that connects Osaka and Sakai city was closed for some time. The survey was

divided among the three tollgates between 6.00 am to 8.30 am. It was found that public

transport use went considerably up at the time when freeway was closed. Further, it was

only found that the expected time taken by public transport was considered more by the

automobile users. Then the time taken by public transport was measured accurately after

the survey. And then even after the free way was opened public transport means were

continued to be used by the people who earlier used their own vehicles.

Brady et al. (2002), in their study, measured service quality by using a

performance-only index (SERVPERF) as opposed to the gap-based SERVQUAL scale.

The intent of the research was to examine the ability of the performance-only

measurement approach to capture the variance in consumers‟ overall perceptions of

service quality across three studies. For the first study, the original Cronin and Taylor data

were obtained and a replication of their study was undertaken using a recursive form of

their non-recursive model in an effort to avoid the abnormal parameter estimates they

reported. The replication successfully duplicated their finding as to the superiority of the

performance-only measurement of service quality. The second and third studies included

new data in which different measures of the constructs examined in Cronin and Taylor

were employed in order to enhance the validity of the findings. The results from these two

studies lent strong support again for the superiority of the performance-only approach to

the measurement of service quality. In addition, both the replication and the two new

studies were used to extend Cronin and Taylor‟s investigation of the service quality-

consumer satisfaction relationship. The results of all the three studies indicate that service

quality is properly modelled as an antecedent of satisfaction.

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 Steven (2003), in his study, developed a Genetic Algorithm (GA) to increase the

transit time for bus that serves an irregular area in a network which is of grid shape. The

main purpose is to decrease the overall cost; and it is linked to the demand division and

street pattern. This would help to develop a GA that makes the system of buses more

efficient keeping in mind the routes and their locations as well as their operating

headways. All the patterns including the street pattern or intersection delays are based on

the assumption that where there is a demand to stop the bus, it can be easily stopped. It

was concluded that for increasing the transit system‟s availability and to reduce the total

cost bus routes should be relocated; and headways should be increased.

Singh (2005) attempted to analyze the managerial efficiency and quality of bus

services provided by Pepsu Road Transport Corporation during the period 1999 to 2004.

Managerial efficiency was judged on the basis of physical and financial performance. The

various indicators such as staff-vehicle ratio, bus utilization per day, fleet utilization, and

effective million kilometer per year and kilometer per liter were considered to evaluate the

performance. Further, quality of bus services was examined through a sample survey of

passengers on the basis of convenience regarding travel time, pick up/delivery, proximity,

frequency, reservation requirement, comforts, seating, delay at stops, travelling mix,

information, fare, dependability and safety. It was found that the corporation had improved

its performance during the period of study and did better as compared to its counterparts,

i.e., Punjab Roadways and Haryana Roadways. The study highlighted the need to improve

the quality of buses and services in PRTC.

Kumar (2005), in his research paper, explained that cities play a vital role in

promoting economic growth and prosperity. The development of cities largely depends

upon their physical, social, and institutional infrastructure. In this context, the importance

of intra urban transportation is paramount. This article provides an overview of urban

31
transport issues in India. Rather than covering every aspect of urban transportation, it

primarily focuses on those areas that are important from a policy point of view. The article

first reviews the trends of vehicular growth and availability of transport infrastructure in

Indian cities. This is followed by a discussion on the nature and magnitude of urban

transport problems such as congestion, pollution, and road accidents. Building on this

background, the article proposes policy measures to improve urban transportation in India.

Indian cities cannot afford to cater only to private cars and two-wheelers and there has to

be a general recognition that policy should be designed in such a way that it reduces the

need to travel by personalized modes and boosts public transport system. This requires

both an increase in quantity as well as quality of public transport and effective use of

demand as well as supply-side management measures. At the same time, people should be

encouraged to walk and cycle and government should support investments that make

cycling and walking safer.

Smith and Chaudhry (2005) studied public transportation services provided in the

Philadelphia area. The South-eastern Pennsylvania Transportation Authority operates and

maintains a large number of transit vehicles for daily use. In an attempt to improve service

quality and reduce costs, the South-eastern Pennsylvania Transportation Authority

underwent a programme to train staff on the use of statistical process control to track and

address quality issues with its bus fleet. This research presents the steps taken by this

public transit agency to implement Statistical Process Control on part of its bus fleet as

one element of an overall quality improvement programme.

Mazzulla and Eboli (2006), in their research paper, explained that the importance

of service quality attributes for public transport is established by Importance Value

calculation. Attribute weights (IV) were calculated by a specific empirical procedure in

which a rate was assigned to each attribute according to the preferences of passengers.

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Finally, a Service Quality Index (SQI) for measuring the effectiveness of supplied services

was calculated according to the main service quality attributes and their weights. This

index can be useful to planners to choose more appropriate public transport agencies.

Furthermore, it can be used by transport agencies to improve supplied service regarding

more convenient service quality attributes

Eboli and Mazzulla (2007) examined the bus service in Cosenza, Italia and decided

the various quality measures required for customer satisfaction. There are in all 16 quality

attributes based on which the customer satisfaction was rated. They were mainly bus stop

availability, route characteristic, frequency, reliability, bus stop furniture, bus

overcrowding, cleanliness, cost, information, promotion, safety on board, personal

security, personnel, complaints, environmental protection and bus stop maintenance. But

the root of all this is planning and the outcome of this is reliability. It can be done through

providing proper information, promoting the system in a proper manner and working on

the complaints and thereby getting the best customer satisfaction.

Beirao and Sarsfield (2007) examined the service quality of Portugal Public

Transport users. It was depicted that the relevance of stress-free public transport system

and low fare rate affect the quality of service. It is considered to be stress free because one

can easily read or relax throughout the journey. The time to complete a journey is much

less in a bus as compared to a car and there are chances of less pollution as well. Further,

interaction with people around also becomes easy.

Stradling et al. (2007) conducted a survey on the basis of a self-completed

questionnaire; and it was sent in eight areas of Edinburgh, Scotland to know the interest of

the people for public transport. Various factors were put up as reasons for not using the

public means of transport. There were eight of those factors which were highlighted for

avoiding use of these buses. One of the major reasons that came up was “sense of

33
insecurity” that is felt at times while waiting for the buses or while travelling at night.

Some other factors were discomfort or preference to in a personal car, disturbance from

the crowd or some habits such as smoking of the passengers or overcrowdedness.

Gatersleben and Uzzel (2007) conducted an investigation of experiences in routine

life commute. The survey depicted that one travels either by a car or public transport.

There are chances of increased frustration level because of delays in traffic. Public

transport is considered not such a good option to travel around in and users of public

transport have more negative mindset as compared to others. The reason of such a mindset

is due to the irritation caused by delay in the traffic. Public transport is found out to be less

reliable especially for long distance travelling. For increasing the usage of public

transport, certain features need to be introduced in the buses such as reading facilities,

music and interaction with other people.

Eriksson et al. (2007), in his study, pointed out that for public transport companies

there is a need to know the new market, and new technologies; and it has become

increasingly important to understand the factors affecting the users‟ perceived service

quality of these services. Electronic Service Quality has been broadly defined as

encompassing all phases of a customer‟s interaction with a website. The E-S-QUAL scale

comprises four dimensions. This article investigated the importance of three of the

suggested quality dimensions (efficiency, system availability, and fulfillment) for overall

satisfaction when using information-based websites. A survey was conducted with

respondents being asked to use and evaluate an existing website delivering public

transport information in their region. The results revealed that efficiency (addressing the

ease and speed of using the site) was most important for overall satisfaction. Furthermore,

it is concluded that a modified E-S-QUAL scale is appropriate for this purpose as it was

possible to adapt it to a pure service-related website.

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 Fu and Xin (2007), in their research article, proposed a new performance index

called Transit Service Indicator (TSI) which could be used as a comprehensive measure

for quantifying the quality of service of a transit system. TSI integrates multiple

performance measures (e.g., service frequency, hours of service, route coverage, and travel

time components) within a systematic framework. It takes into account spatial and

temporal variations in travel demand, recognizing that quality of service is a result of

interaction between supply and demand. A case study has been conducted to examine the

sensitivity of the proposed TSI to various system design and condition variables and

parameters.

Zeithaml et al. (2007) signified that delivering consistently good service quality is

difficult but profitable for service organizations. Understanding why it is so difficult and

how it might be facilitated is the purpose of the article. The authors intend is to identify a

reasonably exhaustive set of factors potentially affecting the magnitude and direction of

four gaps on the marketer's side of their service quality model. Most factors involve (1)

communication and control processes implemented in service organizations to manage

employees, and (2) consequences of these processes, such as role clarity and role conflict

of contract personnel. Literature from the marketing and organizational behaviour fields

on these topics is reviewed and integrated with qualitative data from an exploratory study.

Fellesson and Margareta (2008) conducted a comparison between users of public

transport in nine cities (Stockholm, Barcelona, Copenhagen, Geneva, Helsinki, Vienna,

Berlin, Manchester and Oslo) in Europe. It was found that people were satisfied there with

the services provided. Traffic supply, reliability and information; bus and bus stop design

were important factors counted in the result responsible for customer satisfaction. Others

were skilled staff skill, knowledge and safety.

Shankar (2008), in his book, discussed modern trends in marketing of services

35
as customer centric, quality focus, the role of automation and customer relationship

management. He discussed the gap model of service quality and its dimensions,

including the SERVQUAL model, and its contribution for the deeper understanding of

quality. He used different methods like time series, regression, correlation and survey

for defining service quality. In one of case studies, he mentioned various reasons for

poor quality of transport services like overage of fleet, lack of funds, unreliability, and

low frequency of bus services, low road density for traffic shares, low average speed

and population.

Akter et al. (2008) attempted to determine the service quality and analyzed the

service quality gaps of eight suburban public hospitals in Bangladesh. The hypotheses

were framed on the basis of five dimensions, namely, responsiveness, assurance,

communication, discipline satisfaction and expectations. Primary data was collected from

110 respondents through a questionnaire. The findings of the study revealed existence of

significant relationship between all the dimensions.

Rahaman and Rahaman (2009) explained that with increased pace of urbanization

and economic growth, attraction and dependency between different linking regions has

also increased. Transportation has performed a crucial role from very early accelerating

the sharing of economic and development benefit of connecting spatial regions. Railway

has been proved as a potential sector for drawing economic and development benefits for

various countries. But less emphasis has been laid on the improvement of service in

railway sector in Bangladesh as compared to the road transportation. This study has aimed

to focus on the railway transportation sector and to develop a model defining the

relationship between overall satisfaction and service quality attributes in a selective route

from Khulna to Rajshahi in southwestern zone of Bangladesh so that it can reinforce

further improvement process. The findings of the study show that overall service

36
satisfaction depends on eight distinct service quality attributes. It implies the service with

worst situation, overall satisfaction of service and need for priority improvement to

support further orientation, addition and betterment of service to draw maximum

economic and development benefit for those linking regions.

Ilhaamie (2010), in this study, tried to identify the most important dimension to

examine the level of service quality, expectation and perception of the external customers

towards the Malaysian public services. Ten SERVQUAL instruments were distributed to

each 300 public organizations throughout Malaysia. From 992 copies of usable

questionnaire, it was found that the overall service quality was quite good. It was further

found that tangible is the most important dimension. It also has the lowest scores of

perception. On the other hand, service quality gap is neither the lowest nor the highest.

Finally, these external customers have the highest expectation on the reliability of the

Malaysian public service.

Prasad and Shekhar (2010), in their research paper titled, “Development of

RAILQUAL: A Service Quality Scale for Measuring Indian Railway Passenger Services”

developed a framework for assessing the quality of service provided by Railways to its

passengers. The study evaluated the passenger rail service quality of Indian Railways by

developing RAILQUAL instrument on the basis of SERVQUAL and Rail Transport

quality. Three new transport dimensions (comfort, security and convenience) are added to

the original five SERVQUAL dimensions (i.e. assurance, empathy, reliability,

responsiveness and tangibles). The instrument is tested for reliability and validity. This

empirical study was conducted at Secunderabad railway station of South Central Railway,

India, using a purposive sample of 100 respondents. Valid responses from the

questionnaire are statistically analyzed by using factor analysis. This study identified the

attributes to evaluate the quality of Railway Passenger Services and developed a

37
comprehensive instrument “RAILQUAL”, which can be used by the Railways for

collecting feedback from passengers. This study would help the Railways to monitor,

control and improve the service. It can also be used as a tool for comparing the

performance of various Railway Zones and Divisions across the country.

Mishra et al. (2010) highlighted that the customer service is the primary end of

any service. A customer always wants something and expects that the company should

come up to the level to fulfill those needs. Again, the more you provide, still more the

consumer needs. Service quality is about meeting customers‟ needs and requirements,

and how well the service level delivered matches customer expectations. Service quality

in service sector implies consistently anticipating and satisfying the needs and

expectations of customers. In this context, the present paper proposes two structural

equation models (SEMs), one for public and another for private sector banks in India, to

show the relationship between customer satisfaction on bank services and the attributes

of the perceived service quality. Specifically, structural equation model is formulated to

explore the impact of the relationship between customer satisfaction and service quality

attributes.

Pefok and Andrey (2010), in their doctoral thesis, used the public transportation

company specifically Karlstad City Bus and SWEBUS as a base to determine the

effectiveness of SERVQUAL in measuring service quality. The SERVQUAL instrument

is used to measure the gaps in different areas of the service in public transportation. The

researchers described the SERVQUAL instrument and stressed its importance and

appropriateness in measuring service quality. Through this instrument, we were able to

determine the level of perceived service performance of the bus companies and then used

these measurements to determine the Gaps in each area of the service. The difference

between the service performance (perceived service quality) and the highest possible

38
rating a customer could rate a service (customers‟ expectation) was the amount of quality

improvements the customer still expects from the company on that particular area of

service. It must be noted that if service quality is low it might trigger a customer complaint

behaviour.

Singh (2010), in his research work, examined the organizational structure and

functioning of Patiala Depot. It studied performance of Patiala Depot with the help of

passengers‟ perception about it. He tried to assess the satisfaction of users or citizens

regarding the service provided. Primary and secondary data was collected from various

sources. As many as 60 passengers were selected randomly to fill the questionnaire. It was

found that majority of the passengers i.e., 60 per cent were not happy with the

performance of PRTC and the behaviour of conductors. But PRTC has taken good safety

measures in their buses.

Singla (2010) tried to establish the number of dimensions of service quality in the

hotel industry. He identified the gap between customers‟ perception and managers‟

perception of the service delivered. He also analysed the gap between customers‟

perception and expectation with respect to quality of service and product provided by

hotels. The study covered hotels of major cities of Punjab, namely, Amritsar, Jalandhar,

Ludhiana and Chandigarh. Primary and secondary data were collected from selected hotels

by using Stratified Random Sampling technique. It was suggested that consumer

acquisition and retention is more essential for management to determine the determinant

of service quality since it has a direct effect with on consumer loyalty.

Zakaria et al.(2010), in their research paper titled, “ Service Quality of Malaysian

Public Transport: A Case Study in Malaysia” investigated the relationship between

independent variables which include tangible, reliability and responsiveness that influence

the service quality of the public transport in Lembah Bujang area in Malaysia. The study

39
was conducted on 169 respondents. The researchers used descriptive statistics, Pearson

correlation, multiple regression and cronbachs‟ alpha in order to analyze the data. It was

found that there was a positive correlation between service quality and tangibility,

reliability and responsiveness of service quality dimensions.

Park et al. (2011) in their research paper titled, “Job Satisfaction and Service

Quality of Bus Drivers in Korea” examined the relationship between bus drivers‟ job

satisfaction and the resulting service quality. The survey was conducted in Korea. There

was a significant difference in job satisfaction among groups with various pay levels

which may result in inconsistent service quality. To increase bus drivers‟ job satisfaction

and hence, improve service quality, it is recommended that a company should establish job

stability, enforce fair policies, enhance employee benefits and encourage individual

accomplishment. In addition, a bus company should increase its pay level satisfaction

which is not highly correlated with the absolute pay level but rather the relative pay level

when compared with that of other companies. Also, it has been shown that the accident

rate is inversely proportional to the sufficiency of rest facilities provided by a bus

company.

Randheer et al. (2011), in their research paper titled, “Measuring commuters‟

Perception on Service Quality using SERVQUAL in Public Transport” examined the

commuters‟ perception on service quality offered by the public transport services of twin

cities of Hyderabad and Secunderabad. The SERVQUAL scale was used to measure the

commuters‟ perception on service quality. A sample survey was conducted on 534

respondents who were regularly availing public transport service for travelling. It was

found that the service quality delivery meets the perception of commuters.

Dey and Bhaduri (2012), in their research paper titled, “Changing Profile of the

State Transport Undertaking in Mass Transport Services: A Case of Kolkata City”

40
compared and contrasted the performance of state transport undertaking with private bus

services by analyzing their effectiveness, economic profile and socio-political constraints

in the city of Kolkata. The research paper based on a systematic analysis of secondary

data, collected from CSTC, CTC and WBSTC office, Public Works Department (PWD),

Bengal Bus Syndicate office, Mini Bus Operators Coordination Committee offices and

Calcutta Metropolitan Development Authority (CMDA) offices. It was found that STU

faced various problems like non-availability of funds, unequal distribution of routes,

shortage of staff and inefficiency and lack of future projection of the state government.

The salary of drivers and conductors are too high which cause loss to the organisation; and

daily average cost of buses is high. The extra loss incurred by STUs for providing

amenities like concessional travel for students, physically handicapped persons, and

freedom fighters, MLAs and MPs, etc. is another problem.

Trivedi (2012), in her research paper, analysed the performance of Gujarat State

Road Transport Corporation. She found that GSRTC suffered from losses and the main

reasons of losses were overage of fleet, huge debt and interest burden, unequal

competition, loss in operation of city service, operation on uneconomic routes,

concessions in fares, uneconomic fare structure, high tax burden, diverse objective, dead

kilometers, high staff-bus ratio, load factor and cancellation of scheduled trips. For

analysed the operational productivity fleet utilization, vehicle productivity, fuel efficiency,

staff productivity, occupancy ratio were used. It was found that the operational

performance was not good; and it was also suggested that government should take

complete measures for establishing fare, healthy and competitive environment for

transport operators.

Kaliyaperumal and Gajendran (2012), in their research paper titled, “A Study on

Bus Passenger Perception and Level of Satisfaction with reference to Bus Transport

41
Industries in Tamil Nadu” identified the level of passenger satisfaction regarding the

quality of bus service in Chennai. A sample of 75 passengers was selected to study the

perception as well as the level of satisfaction of the respondents. The time of the study was

one and a half month; and various statistical tools like chi- square test, tables and charts,

percentage analysis and interval estimation were used. It was found that 55 per cent

passengers showed their satisfaction over the services provided, while 13 per cent

passengers had a different in this regard.

Basha and Wills (2013), in their research paper titled, “A Study on Omni Bus

Service Enrichment” studied the quality of service provided by Omni buses; and it also

evaluated the expectations and perceptions of the urban and rural passengers. A sample of

550 respondents was selected from eleven cities of Tamil Nadu which include Chennai,

Madurai, Tirunelveli, Trichy, Coimbatore, Salem, Ramnad, Tirupur, Hosur, Tuticorin and

Erode. Data was analysed with the help of statistical tools such as t-test, factor analysis, f -

test etc. The study concluded that the service quality of the Omni bus service was not up

to the expectation level of the respondents. The level of passengers‟ satisfaction was lesser

among the urban respondents than that of among the rural respondents.

Thakkar (2013), in his research paper titled, “Management Concerns of Public

Road Transport in India” highlighted the problematic issues regarding the road passenger

transport and remedial measures to ensure its smooth and efficient functioning. The paper

discussed the present scenario of public transportation system in India with special

emphasis on road transport and passenger transport. He further highlighted various

problems like legal constraints, heavy burden of taxation, issue of industrial relations and

nature of nationalization of road transport industry. He suggested solutions to the problems

which were discussed earlier that privatization, people management, regulatory

mechanism, and decentralization were suitable answers to the problems.

42
 Dhinakaran and Rajarajan (2014), in their research paper titled, “Passengers‟

Perception towards Service Quality in Tamilnadu State Transport Corporation

(Kumbakoman) Limited, Kumbakonam” assessed the perception of passengers towards

service quality of TNSTC (K) Ltd. The research was based on primary and secondary

data. The primary data was collected through a questionnaire from the respondent

passengers during the period between January, 2013 to June, 2013. The secondary data

was collected from published records such as performance statistics of STUs, annual

reports of TNSTC(K) Ltd. published books and journal of reviews, unpublished Ph.D.

theses, etc. A sample of 384 passengers and 52 managers was selected for the purpose of

this study. SERVQUAL scale was used to check the quality of service. It was found that

there was a gap between the perceptions and expectations regarding the quality of

services. It was suggested that TNSTC (K) Ltd. should emphasize on different parameters

like proper maintenance of buses and bus stands, proper timetable boards and additional

security arrangements at all key junctions.

43
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