Presentation1 for ies- mcrc

8/7/2019 Presentation1 for ies- mcrc

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ANALYSIS OF SERVICE QUALITY OF

PUBLIC ROAD TRANSPORTATION- A

CASE OF MSRTC IN AHMEDNAGAR

DISTRICT.

1) Prof. Rajendrasing Pardeshi. (Research Scholar)

Asstt. Professor, Marketing

Management, IBMRD, Ahmednagar 414111

E-mail: [email protected]

Mobile: 94207961192) Name of the co author :

Prof. Dr. Meera Kulkarni ( Research Guide)

Professor, IMSCD&R, Ahmednagar -414001


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MSRTC: An Introduction

Early bus services in Maharashtra (then part of the states ofBombay, Madhya Pradesh and Hyderabad) were started in theearly 1920s largely due to efforts of local entrepreneurs. Withno regulatory laws governing public transportation servicesthese services run in ad hoc manner. The Motor Vehicle Act of1939 brought in amongst many other things, regulation of

fares, standard routes and rules for governance and monitoringof public transportation providers. As a result of the actindividual operators were asked to form a union on definedroutes in a particular area. Bus schedules were set in, pick-uppoints, conductors, and fixed ticket prices were mandated.

Still passenger woes continued and then in 1948 Bombay stateGovernment, started its own state sponsored road transportservice called State Transport of Bombay. The first blue andsilver-topped bus took off from Pune to Ahmednagar in 1948.


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Product Mix

Shivneri: a Dadar-Pune-Dadar Volvo bus service

operating daily.

Mahabus: An air conditioned bus service

operating between Pune and Mumbai

(Mantralay). Starts at 6:45 am and scheduled forevery 30 min till mid night

Asiad: Asiad bus service which runs from Dadar

started in the year 1982. This was the firstventure of MSRTC in providing a semi luxury bus

service and has been a highly successful venture.


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Yatra (Festivity services): A seasonal service

targeted at travelers visiting various festivities of

Maharastra.

Tourism packages: Along with normal bus

services MSRTC provides package tours whereby

you can buy a single ticket to travel a selectivegroup of tourist places in Maharastra. The groups

are mostly clubbed together based on the district

they belong to.


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MSRTC: Some facts

MSRTC is one of the largest fleet owners inIndia, operating a fleet of approximately15,500 buses.

They have three central workshops where thebodies of their buses are built, approximately2000 in numbers per year, which are located in

Pune, Aurangabad & Nagpur . The organization has 9 Tyre Retreading Plants.

32 Divisional Workshops.


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Rational & Significance of the study

Today competition is not only rife, but growing moreintense constantly. However companies need to startpaying keen attention to their competitors, they mustunderstand their customers. MSRTC is suffering

from such competition. They have to believecustomers as core concept of their business; customersatisfaction is what guarantees the future ofTransport companies and it is achievable by anadoption between their services and passengers

needs. Finally, MSRTC must measure passengerssatisfaction and service quality seasonally to keep theservices corresponded with customers opinions.


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Review of literature and the need for

more research Mohammad Mehdi Bozorgi (2007) has researched in this particular

area of public transportation. In his thesis named Measuring

Service Quality in the Airline, he concluded that passengers of IAA

(Iran Asemian Airlines) are not satisfied with the perceived

services and it warns manager to focus on passengers

expectations. Completing a trip accurately is what the

passengers expect in the first. To improve empathy in IAA,

managers should study their target market precisely and recognize

customers attributes and their demands. What they really want

and how they can be satisfied. Dr.Das et.al. (2009) done analysis of gap in service quality through

SERVQUAL in a banking industry .They found that Assurance is a

major service area where Banks can improve their services.


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Need for further research

There is a need for further research in the area ofservice quality in public road transportation services.This area is neglected in India. Central Institute of RoadTransport (CIRT), Pune has done some research inTraffic management, Road safety, Accident analysis etc.but it is largely associated with operational efficiencyof road transport operators. There is a need ofunderstanding what passengers are expecting from

transport operators and what is their perception aboutMaharashtra State Road Transport Corporation which isa semi-government organization.


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Research objectives & Methodology

To analyze gap between expectations &

perceptions of customers about transport

services provided by MSRTC and measure the

service quality of MSRTC.

SERVQUAL a methodology for measuring

service quality


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As a way of trying to measure service quality, researchers havedeveloped a methodology known as SERVQUAL a perceivedservice quality questionnaire survey methodology. SERVQUAL

examines five dimensions of service quality: Reliability,Responsiveness Assurance; Empathy, and Tangible (e.g.appearance of physical facilities, equipment, etc.)

For each dimension of service quality above, SERVQUALmeasures both the expectation and perception of the service ona scale of 1 to 7, 22 questions in total. Then, each of the fivedimensions is weighted according to customer importance, andthe score for each dimension multiplied by the weighting.Following this, the Gap Score for each dimension is calculatedby subtracting the Expectation score from the Perception score.A negative Gap score indicates that the actual service (the

Perceived score) was less than what was expected (theExpectation score).

The Gap score is a reliable indication of each of the fivedimensions of service quality. Using SERVQUAL, serviceproviders can obtain an indication of the level of quality of their

service provision, and highlight areas requiring improvement.


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Population and sample

Research is based on primary and secondary

data. A total of289 questionnaires were filled up,

collected, and analysed. A total of10 bus stands

in Ahmednagar district were randomly selected

and 30 questionnaires from each stand were

filled up. During the data entry 11 questionnaires

were rejected due to incomplete filling and forreducing response biasedness.


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Administration of Questionnaire

The generic questionnaire as used byParasuraman et al. (1988) will be used herewith22 statements under 5 dimensions. The

responses will be captured in 7- point Likertscale and gap score will be calculated bydeducing perceptions from expectations (E P).At the time of data collection proper care

will be taken regarding demographic profile ofthe users to ensure that the result will be freefrom any sort of biasedness.


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Data Collection, Analysis & Findings Step I: Designing SERVQUAL Instrument

In this study researcher has used the original instrument designed by

Parasuraman et.al (1988).

The Survey: The questionnaire below is in two sections. The first section asks

you to rank all Public Transporters according to your expectations i.e. what you

expect all Public Transporters to provide. The second section asks you to rank

Public Transporters you chose for the survey according to your experiences and

perceptions Expectations: This section of the survey deals with your opinions of MSRTC.

Please show the extent to which you think MSRTC should posses the following

features. What we are interested in here is a number that best shows you

expectations about institutions offering Public Transportation services.

Perceptions: The following statements relate to your feelings about theparticular Public Transportation companies you have chosen. Please show the

extent to which you believe this Public Transportation companies i.e. MSRTC has

the feature described in the statement. Here, we are interested in a number

from 1 to 7 that shows your perceptions about the MSRTC.


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Finally the score should be analysed to find

out the weak areas where more attention is

required. The gap score indicates the extent of

gap in service quality .The larger the gap score

is more is the dissatisfaction. Overall score

under each category and total can be

presented in a single table to get an overallpicture as shown below.


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Tangibles

Expectations Perceptions Gap Score

Tangibles E Tangibles P E - P

Excellent Public Transportation companies

will have modern looking equipment.

5.9 The MSRTC has modern looking

equipment.

2.4 3.5

The physical facilities at excellent Public

Transportation companies will be visually

appealing.

6.8 The MSRTC physical features are

visually appealing.

2.9 3.9

Employees at excellent Public

Transportation companies will be neat in

their appearance.

5.8 The MSRTC reception desk employees

are neat appearing.

3.2 2.6

Materials associated with the service

(pamphlets or statements) will be visually

appealing at an excellent Public

Transportation companies

4.7 Materials associated with the service

(such as pamphlets or statements) are

visually appealing at the MSRTC.

3.1 1.6

Total 23.2 11.6 11.6

Average Gap Score ( Total of E-P/4 ) 2.9

Rank each statement as follows:

Strongly Disagree Strongly Agree

1 2 3 4 5 6 7


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Reliability E Reliability P E-P

When excellent Public Transportation

companies promise to do something by a

certain time, they do.

4.8 When the MSRTC promises to do

something by a certain time, it does

so.

3.2 1.6

When a customer has a problem, excellent

Public Transportation companies will

show a sincere interest in solving it.

5.6 When you have a problem, the MSRTC

shows a sincere interest in solving it.

3.1 2.5


will perform the service right the first

time.

5.8 The MSRTC performs the service right

the first time.

2.7 3.1


will provide the service at the time they

promise to do so.

6.1 The MSRTC provides its service at the

time it promises to do so.

3.4 2.7


will insist on error free records.

6.8 The MSRTC insists on error free

records.

2.8 4.0

Total 29.1 15.2 13.9


Reliability


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Responsiveness E Responsiveness P E-P

Employees of excellent Public

Transportation companies will tell

customers exactly when services will be

performed.

6.3 Employees in the MSRTC tell you

exactly when the services will be

performed.

3.4 2.9


Transportation companies will give

prompt service to customers.

5.3

Employees in the MSRTC give you

prompt service.3.2 2.1


Transportation companies will always

be willing to help customers.

6.4 Employees in the MSRTC are always

willing to help you.

3.1 3.3


Transportation companies will never be

too busy to respond to customers'

requests.

5.7 Employees in the MSRTC are never

too busy to respond to your

request.

1.3 4.4

Total 23.7 11.0 12.7


Responsiveness


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Assurance E Assurance P E - P

The behavior of employees in excellent

Public Transportation companies will

instill confidence in customers

5.8 The behavior of employees in the

MSRTC instills confidence in you.

2.2 3.6

Customers of excellent Public

Transportation companies will feel safe

in transactions.

5.3 You feel safe in your transactions

with the MSRTC.

3.2 2.1


Transportation companies will be

consistently courteous with customers.

4.8 Employees in the MSRTC are

consistently courteous with you.

2.6 2.2


Transportation companies will have the

knowledge to answer customers'

questions.

6.4 Employees in the MSRTC have the

knowledge to answer your

questions.

3.6 2.8

Total 22.3 11.6 10.7


Assurance


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Empathy Empathy


will give customers individual attention.

6.8 The MSRTC gives you individual

attention.

4.2 2.6


will have operating hours convenient to all

their customers.6.2

The MSRTC has operating hours

convenient to all its customers.3.1 3.1


will have employees who give customers

personal service.

5.6 The MSRTC has employees who give

you personal attention.

2.3 3.3


will have their customers' best interest at

heart.

6.0 The MSRTC has your best interests at

heart.

2.2 3.8

The employees of excellent Public

Transportation companies will understand

the specific needs of their customers.

6.5 The employees of the MSRTC

understand your specific needs.

3.4 3.1

Total 31.1 15.2 15.9


Empathy


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Table 1 - Calculation of SERVQUALScores

Dimension Stateme

nt

Expectatio

n Score

Perceptio

n Score

Gap Score Average for

Dimension

Tangibles 1 - 4 23.2 11.6 11.6 2.90

Reliability 5-9 29.1 15.2 13.9 2.78

Responsivene

ss 10-13 23.7 11.0 12.7 3.18

Assurance 14-17 22.3 11.6 10.7 2.68

Empathy 18-22 31.1 15.2 15.9 3.18

Total 14.72

Unweighted Average SERVQUAL score: ( Total / 5 ) 2.944

Step II Calculation of Un-weighted score


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Table 2 - SERVQUAL Importance Weights

Features Points

The appearance of the MSRTCs physical facilities, equipment,

personnel & communication materials.(Tangibles )

13

The MSRTCs ability to perform the promised service

dependably and accurately ( Reliability )

23

The MSRTCs willingness to help customers and provide promptservice. ( Responsiveness )

21

The knowledge and courtesy of the MSRTCs employees & their

ability to convey trust and confidence.(Assurance )

31

The caring individual attention the MSRTC provides its

customers. ( Empathy )

12

Total: 100

Step III:Assigning Weights


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Table 3 - Calculation of Weighted SERVQUAL

Scores

SERVQUAL

Dimension

from Table 1

Un-weighted

Score (Step 2 )

*

from Table 2

Weights

(Step3)

=

Weighted

Score

Tangibility 2.90 * 0.13 = 0.377

Reliability 2.78 * 0.23 = 0.639Responsivenes

s 3.18 * 0.21 = 0.669

Assurance 2.68 * 0.31 = 0.831

Empathy 3.18 * 0.12 = 0.382

Average Weighted score: 2.898

Step IV: Calculation of weighted Score


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Findings

The dimension Empathy has the highest average gapscore (un-weighted. But after after adjustment withweights, the score becomes 0.382 that is no highest.Thus, the weight has a lot of implication. Individually,

the customers are very much dissatisfied in thiscategory but they believe that it should have lessweight at the time of calculating aggregated score. Onthe basis of weighted score, the dimension assurancegot the highest score. It means that the performance of

the MSRTC in this category is not good and it shouldgive sufficient attention to all of the subcategoriesunder this dimension.


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Further research

This type of analysis may be done across all thetravel and tourist companies within the publictransportation industry to have an idea regarding

competitive position in terms of service qualityvia customer satisfaction. This analysis may alsobe done within the MSRTC over different periodsof time to analyze the improvements. If gap score

reduces gradually, the service quality improvesleading to more customer satisfaction.


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Conclusion

Analysis of service quality is helpful in

identifying weak areas where immediate

action is warranted. This study concludes that

passengers are not so much satisfied in terms

of assurance. The score value individually may

mean nothing; still, it may reflect the ranking

(thrust areas) and improvements as comparedwith earlier periods or years.


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Thank You!

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Presentation1 for ies- mcrc