ANALYSIS OF PASSENGER RESPONSES ON PROVIDED SERVICE Case study: PT. Kereta Api and Statens Järnvägar (SJ) AB,

ABADI DWI SAPUTRA

Supervisor: Lars Haglund

Service Science Program University Spring 2010

ABSTRACT

Railway is one of public transport mode on land transportation. Railways, as mass public transport modes, have unique characteristics. It has large capacity, high safety level, and free from traffic jam. Those characteristics make railway a primary public transportation. In fact, even railway transportation has a lot of benefits for society life but they still faced by the problem. Service quality level of Railways transportation is still low compared with other transportation modes. At present railways operation is still colored with the delay, limited condition vehicle, and unclear train travel information that often disadvantage passengers, and many other services offered fail to attract passengers. These conditions result in decreasing the quality of services and insufficient railways operation. The objective of this research is to analyze the relationship between customer satisfaction towards provided service with the desire to do a complaint and to find the factor from service quality that has significant influences to customer satisfaction towards PT KAI services. From that data, and also comparison study between PT and Statens Järnvägar (SJ) AB, Sweden, we can recommend the service standards design, service guarantee and complaint handling system that need to be adjusted with the interest of consumer. The data was collected via field survey in the station that located in , Yogyakarta and Pekalongan. This research shows several findings. First, there are six factors of service quality attributes that have significant influences to customer satisfaction towards PT KAI services for commuter class (Information, Appearances, Service coverage, Tangible, Safety & security, and Cost), seven factors for business class (Travel time, Information, Scheduling, Comfort, Tangible, Safety & security, and Service coverage), and also seven factor for executive class (Appearances, Safety & security, Information, Comfort, Tangible, Travel time, and Cost). Second, while the commuter class passengers complain on the Safety & security attribute, for business class it is the information that influence the desire to complain. Meanwhile for executive class, passengers are mostly satisfied with the service given by PT KAI. Third, to decrease the number of complaints, some effective mechanisms to handle those complaints and learning from Statens Järnvägar (SJ) AB are necessary to take. Fourth, the service standards for PT KAI can be classified into 6 details of service, (safety and security attributes; comfort and appearances attributes; availability of information aspect attributes; tangible attributes; service coverage attributes; and the operations of train). For service guarantee design, this research focus on travel time guarantee. Learning from Statens Järnvägar (SJ) AB on Sweden service guarantee, PT KAI can adopt and use their system to increase customer satisfaction.

Keyword: service standard, service guarantee, customer satisfaction, customer complaint handling, PT Kereta Api Indonesia, Statens Järnvägar (SJ) AB

i TABLE OF CONTENTS

Abstract ...... i Table of Contents ...... ii List of Table ...... iv List of Figures ...... v

CHAPTER I. INTRODUCTION ...... 1 1.1 Background ...... 1 1.2 Problem Statement...... … 2 1.3 Research Question ...... 4 1.4 Purpose of Research ...... 4 1.5 Limitation ...... 5 1.6 Methodological Discussion...... 5 1.6.1 Quantitative Research Approach ...... 5 1.6.2 Case Study Research...... 6 1.6.3 Data Collection ...... 7 1.6.3.1 Primary & Secondary Data ...... 7 1.6.3.2 Data Analysis ...... 8 1.7 Thesis Outline ...... 8

CHAPTER II. THEORETICAL BACKGROUND ...... 9 2.1 Public Transportation...... 9 2.2 Classification of services...... 10 2.3 Service Quality...... 11 2.4 Service Quality in Railway Transportation...... 17 2.5 Customer Complaint Behavior...... 18 2.6 Complaint Management...... 20 2.7 Customer Satisfaction...... 21 2.8 Service Standards ...... 23 2.9 Service Guarantee...... 25 2.10 Analysis Factor...... 25 2.11 Regression Analysis ...... 26

CHAPTER III. EMPIRICAL STUDIES ...... 28 3.1 PT Kereta Api Indonesia ...... 28 3.1.1 Introduction ...... 28 3.1.2 Indonesian Railway Organizations...... 30 3.1.3 Project Description in PT Kereta Api Indonesia...... 33 3.2 Customer Satisfaction Index in PT KAI ...... 39 3.3 Complaint Handling System in PT KAI ...... 40 3.4 Service Guarantee in PT KAI ...... 42 3.5 Statens Järnvägar (SJ) AB, Sweden ...... 42 3.5.1 Introduction ...... 42

ii 3.5.2 Sweden Railway Organization ...... 43 3.5.3 Project Description in Statens Järnvägar (SJ) AB, Sweden.. 45 3.6 Customer Satisfaction Index in SJ, AB ...... 51 3.7 Complaint handling System in SJ, AB ...... 53 3.8 Service Guarantee in SJ, AB ...... 54

CHAPTER IV. RESEARCH METODOLOGY ...... 56 4.1 Research Flowchart ...... 56 4.2 Research Design & Questionnaire ...... 57 4.3 Respondent ...... 57 4.4 Sample Size ...... 57 4.5 Study Area ...... 58 4.6 Research Tool ...... 58 4.7 Procedure ...... 58 4.8 Type of Data ...... 59 4.9 Data Analysis ...... 59 4.10 Validity & Reliability ...... 60

CHAPTER V. ANALYSIS & RECOMENDATION ...... 61 5.1 Research Result ...... 61 5.1.1 Steps of Analysis ...... 61 5.1.2 Demographic Data Analysis ...... 62 5.2 Service Performance Analysis ...... 65 5.3 Customer Satisfaction Analysis ...... 68 5.3.1 Analysis Factor...... 69 5.3.2 Interpretation of Factor ...... 75 5.3.3 Comparison of Factor ...... 79 5.4 Customer Complaint Analysis ...... 80 5.5 Recommendation ...... 85 5.5.1 Complaint Handling System ...... 85 5.5.2 Service Standard Design ...... 87 5.5.3 Service Guarantee Design ...... 99

CHAPTER VI. CONCLUSION...... 101 6.1 Conclusion ...... 101 6.2 Future Studies ...... 104

REFERENCES ...... 105 APPENDIX ...... 108

iii LIST OF TABLES

Table 3.1 Track and Length ...... 29 Table 3.2 Passenger Data (000 people) ...... 32 Table 3.3 Railway Station in ...... 36 Table 3.4 Performance Report of PT KAI ...... 39 Table 3.5 Railway Station in Sweden ...... 47 Table 3.6 Customer Satisfaction Index in SJ AB, Sweden...... 51 Table 3.7 Punctuality in SJ AB, Sweden ...... 52 Table 5.1 The Number of Respondent Based on Gender ...... 62 Table 5.2 The Number of Respondent Based on Age ...... 63 Table 5.3 The Number of Respondent Based on Educational Level ...... 63 Table 5.4 The Number of Respondent Based on Occupation...... 64 Table 5.5 The Number of Respondent Based on Frequently Using Train...... 65 Table 5.6 The Number of Respondent Based on Level of Income ...... 65 Table 5.7 Distribution of Satisfaction Responses ...... 66 Table 5.8 Comparison in Services...... 67 Table 5.9 KMO and Bartlett's Test (Commuter Class) ...... 69 Table 5.10 Rotated Component Matrixa,b (Commuter Class) ...... 70 Table 5.11 KMO and Bartlett's Test (Business Class) ...... 72 Table 5.12 Rotated Component Matrixa,b (Business Class)...... 72 Table 5.13 KMO and Bartlett's Test (Executive Class)...... 73 Table 5.14 Rotated Component Matrixa,b (Executive Class)...... 74 Table 5.15 Service attribute that use in factor analysis ...... 76 Table 5.16 Comparison Results ...... 79 Table 5.17 ANOVAb Table (Commuter Class) ...... 82 Table 5.18 ANOVAb Table (Business Class) ...... 83 Table 5.19 ANOVAb Table (Executive Class) ...... 85 Table 5.20 Customer Complaint Policy...... 85 Table 5.21 Customer Responses and Real Condition on Field Towards Provided Service ...... 88

iv LISTS OF FIGURES

Figure 2.1 Service Quality Model...... 15 Figure 2.2 Gap 2 : Between Management’s perceptions of customer expectations and Service Quality Specifications ...... 16 Figure 2.3 Gap 3 : Between Service Quality Specifications and Service Delivery...... 16 Figure 2.4 The expectancy disconfirmation with performance model...... 22 Figure 3.1 Coordination Structure of Directorate General of Railway...... 31 Figure 3.2 Organization Hierarchy of PT Kereta Api Indonesia...... 33 Figure 3.3 Railway map in Java (total length route, 2005: 3.362.000 km)...... 34 Figure 3.4 Railway Map in Sumatera (total length route, 2005: 1.314.000 km)...... 34 Figure 3.5 Railway Map in Jabodetabek Area ...... 35 Figure 3.6 Complaint Form in KCJ website...... 41 Figure 3.7 Customer complaint ...... 41 Figure 3.8 Organization Hierarchy of Statens Järnvägar (SJ) AB, Sweden ..... 45 Figure 3.9 Railway Map of Sweden (source: www.banverket.se) ...... 46 Figure 4.1 Research Flowchart ...... 56 Figure 5.1 Steps of Analysis ...... 61 Figure 5.2 Seating Configurations...... 98 Figure 5.3 Windows Designs ...... 99

v CHAPTER 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 final section will present an outline of the master thesis.

1.1 Background Transport or transportation is the movement of people and goods from one location to another. A transport is the solution of displacements of individuals and goods in both time and space. Transports create time utility as well as place utility. Transport is performed by modes, such as air, rail, road, water, cable, pipeline and space. The field can be divided into infrastructure, vehicles, and operations. Transportation as a public service has an important role in the people’s society; but in fact most of public transport companies in Indonesia only care about the service as an output. It means that the purpose of their activities are simply transporting somebody or providing transportation capacities. The customer only like the recipient of the service, they do not care about the customer needs (customer oriented). In this situation many problems occurred such as: queuing time for ticket, waiting time, punctuality (on time departure & on time arrival), fleet capacity, physical condition of the fleet, services provided by service personnel, safety information passenger, readiness of staff to help passengers, cleanliness, convenient station, security on board, availability of media of suggestion and complaint, unfriendly service personnel, information availability, availability of trash bin on board and off board, and appearance service personnel. Based on the explanation of the problem, there are so many complaints from customer about performance of public transport industry in Indonesia, the performance is far from expectation. Although complaint information that was received will be very useful for the company to improve the service standards or to take necessary steps in the improvement of internal company in the future, in fact

1 there are no good system for handling the complaints from the customers which adopted by public transport operators in Indonesia. Customer satisfaction is a key to the future development of public transport, both in theory and practice. Customer satisfaction has the potential to highlight and explain the link between what a government and company does (in terms of the products and services it offers) and the customer reactions to that. Customer satisfaction relate to how passengers respond to the quality of service that the operator gives them.

1.2 Problem Statement Railway is one of public transport mode of land transportation. Railways have a key position in society. They are a very old and important phenomenon in the transport system. They also played an important role in the industrialization and development of the modern world. Railways as mass public transport mode have unique characteristics. It can carry passengers in the amount of mass at a relatively less expensive cost. It is also energy efficient, land saving, high safety level, environmentally friendly, comfortable, adaptive to technology development, and free from traffic jam. Those characteristic makes railway primary public transportation. In Indonesia, railways cover about 3,362 km in Java and 1,314 km in Sumatra with only 10% of this being double-track railway. There is one monopoly in Indonesia: the state-owned Kereta Api Indonesia. The most common problem of railways in Indonesia is the lack of finance that causes deterioration of infrastructure quality. This influences the quality of service; as a result the number of customers gradually decreases. Finally, that condition will influence company’s revenue and cause accumulation of finance problem which is identified as a causal loop problem. Railway is different from the development and maintenance of road, including bridge, terminal and road sign, which are implemented by the government (except toll road). Indonesia railway should manage all of them by themselves. Road users only pay vehicle based on the ownership rather than the used of the road infrastructure. The costs for investment and railway facility maintenance are very expensive, much more expensive than that of road transport modes. However, for the

2 government organization, this is not a proper measurement the worthwhileness scheme. Government can also expect to consider other (social) benefits, such as: 2. Reduction of accidents that usually occur when the traffics shift from road to railway modes which is relatively safer. 2. Time saving for passengers if they use railway mode compared to road mode. 2. Reduction of traffic congestion that is able to avoid the cost requirement for new road construction. The external benefit of railway mode is very significant, for example, the fuel consumption per train passenger is only 0.006 liters per kilometer, Compared to the two passengers car that consumes 0,25 liter per passenger kilometer or bus 0,01 liter per passenger kilometer. With an assumption that commercial passengers use cars and economic passengers use buses, the railway mode will be able to save about 200 million litre of fuel yearly. If diesel fuel subsidy is Rp 1000 then PT Kereta Api, the state owned company, as single authority of Indonesian railway will save the subsidies about Rp 200 billion yearly. Other externality is the loss of society because of road congestion, for instance if urban railroad in Jakarta stop the operation and about 350,000 passengers of the train use bus. In this case, there are other external benefits such as pollution reduction and land saving. According to the authorities, the railways' share of passenger transportation is stagnant, at 7% of total passenger transport, and the share of cargo transportation is under 1%. This low level of performance is attributed to the poor condition of the railway infrastructure and facilities, inadequate application of technology, and the poor quality of management, reflected in the declining performance of the railways and in particular, the advanced age of locomotives, coaches, and rolling stock (WTO Trade Policy Review on Indonesia, May 2007). In fact even railway transportation has a lot of benefits for society life but they still faced by the problem. Service quality level of Railways transportation is still low compared to other transportation modes. At present, railway operation is still colored with delay, limited-condition vehicle, and unclear train travel information that often disadvantage passengers, and many of services offered fail to attract passengers. These conditions result in decreasing the quality of services and insufficient railway

3 operation. This is caused by infrastructure and rail facilities that have not been adequate to serve demand of railway transportation services, in addition to quality services that are still not satisfactory to service users. Base on the facts, we know that Indonesian railways have a lot of problems. There are many complains from the customers about railway services. It shows that people have big expectation on railway but the service has not fulfilled their needs yet. The operator of Indonesian railway (PT Kereta Api Indonesia) cannot understand the overall expectation of users of railway service. These conditions result in decreasing the quality of services and insufficient railway operation. This will be a barrier to Indonesian railways accomplishment in making it to be a reliable and sustainable transport mode.

1.3 Research Question The research presented in this thesis explores the following questions: 1. What are the service quality attributes that have significant influences to customer satisfaction towards PT KAI Services for short distance train (Commuter class), and long distance train (Business class, and Executive class)? 2. Are there influences between customer satisfactions towards provided services and the desire to make a complaint? 3. What is the effective mechanism to handle passenger’s complaints for PT KAI? 4. What kind of service standards and service guarantee that can be recommended to PT Kereta Api Indonesia in order to improve their services?

1.4 Purpose of Research The objective of this thesis is to analyze the relationship between customer satisfaction towards provided service with the desire to make a complaint and to find factors from service quality that have significant influences to customer satisfaction towards PT KAI services. From the data, and also the comparison study between PT KAI and SJ AB, Sweden, we can recommend the service standards design, service guarantee and complaint handling system that need to be adjusted with the interest of customer, so it is expected to obtain service standards that can meet the needs of users in the use of Train transportation.

4 1.5 Limitation This research is a comparison study between PT Kereta Api Indonesia and Statens Järnvägar (SJ) AB, Sweden. It concerns with customer complaint handling, service guarantee and service standards based on customer data survey. This thesis also limits the coverage area only to passenger railway service. The case study in Indonesia will be assumed in Jakarta City for commuter class (short distance train), Pekalongan and Yogyakarta city for business and executive class (long distance train). For case study in Sweden is taken from annual report, previous study, literature review, interview with related authority and field observation. Due to some differences in service standards, service guarantee and complaint handling system of Statens Järnvägar (SJ) AB, Sweden with the type of the service of PT KAI, the researchers carried out the adjustments service with the real condition for the operation of PT KAI.

1.6 Methodological Discussion The methodological discussion of this research is to describe the approach applied in order to answer the research questions stated above. The methods and data used in the study are briefly presented.

1.6.1 Quantitative Research Approach The functional or positivist paradigm that guides the quantitative mode of inquiry is based on the assumption that social reality has an objective ontological structure and that individuals are responding agents to this objective environment (Morgan & Smircich, 1980). Quantitative research involves counting and measuring of events and performing the statistical analysis of a body of numerical data (Smith, 1988). The assumption behind the positivist paradigm is that there is an objective truth existing in the world that can be measured and explained scientifically. The main concerns of the quantitative paradigm are that measurement is reliable, valid, and generalizable in its clear prediction of cause and effect (Cassell & Symon, 1994). Being deductive and particularistic, quantitative research is based upon formulating the research hypotheses and verifying them empirically on a specific set of data (Frankfort-Nachmias & Nachmias, 1992). Scientific hypotheses are value- free; the researcher's own values, biases, and subjective preferences have no place in

5 the quantitative approach. Researchers can view the communication process as concrete and tangible and can analyze it without contacting actual people involved in communication (Ting-Toomey, 1984). The strengths of the quantitative method include:  Stating the research problem in very specific and set terms (Frankfort-Nachmias & Nachmias, 1992);  Clearly and precisely specifying both the independent and the dependent variables under investigation;  Following firmly the original set of research goals, arriving at more objective conclusions, testing hypothesis, determining the issues of causality;  Achieving high levels of reliability of gathered data due to controlled observations, laboratory experiments, mass surveys, or other form of research manipulations (Balsley, 1970);  Eliminating or minimizing subjectivity of judgment (Kealey & Protheroe, 1996);  Allowing for longitudinal measures of subsequent performance of research subjects. The weaknesses of the quantitative method include:  Failure to provide the researcher with information on the context of the situation where the studied phenomenon occurs;  Inability to control the environment where the respondents provide the answers to the questions in the survey;  Limited outcomes to only those outlined in the original research proposal due to closed type questions and the structured format;  Not encouraging the evolving and continuous investigation of a research phenomenon.

1.6.2 Case Study Research A case study is an empirical inquiry that investigates a contemporary phenomenon within its real life context, especially when the boundaries between phenomenon and context are not clearly evident. The case study inquiry copes with technically distinctive situation in which there will be many more variables of interest than data points, and as one result relies on multiple sources of evidence, with data needing to converge in a triangulating fashion, and as another result

6 benefits from the prior development of theoretical proposition to guide data collection and analysis (Yin 2003). Denscombe (2007) argues that the real value of a case study is that it offers the opportunity to explain why certain outcomes might happen - more than just find out what those outcomes are. The thesis is a case study about railway as public transport between PT Kereta Api Indonesia and Statens Järnvägar (SJ) AB, Sweden. The result of analysis chapter will be applied in pilot case study of Indonesian railways system.

1.6.3 Data Collection After deciding the method, the next step is collecting data stage to support this thesis. In this data thesis, both primary and secondary data are used.

1.6.3.1 Primary and Secondary Data In this research, the data were divided into secondary data and primary data. 1. Secondary Data The secondary data is data which is collected to support the primary data and as comparison to other studies. The secondary data in this research are obtained from the institution or organizations associated with the research object such as Directorate General of Railways (DGR) Ministry of Transportation, PT. KAI, PT. KA Commuter Jabodetabek (PT. KCJ), Banverket and Statens Järnvägar (SJ) AB, Sweden, both directly go to those offices or through the official website. Secondary data required are as follows: a. Complaint handling management system, service guarantee policies, and service standards associated with the railways services b. Other supporting data about characteristic of service operation such as: railway network, the number of users, the number of stations and fleets, the fare structure, and customer satisfaction index 2. Primary Data The primary data is data which are collected in the field based on the existing and reality condition. This data were conducted by questionnaire survey.

7 1.6.3.2 Data Analysis Further analysis will be done, after data collecting. In this thesis, researcher using factor analysis for finding the service quality attributes that has significant influences to customer satisfaction towards PT KAI Services for Commuter, Economy class, Business class, and Executive class, and regression analysis for finding where there is influence between customer satisfactions with the desire to do a complaint.

1.7 Thesis Outline The thesis outline is presented in order to guide readers through this thesis and to give a quick overview of the different chapters.

Introduction, in chapter 1, contains background why writer choose this thesis topic.

Theoretical Framework, in chapter 2, contains about basic theory that suitable to use to analyses the problem.

Empirical Study, chapter 3 is a description of the case of thesis studies there are PT Kereta Api Indonesia and Statens Järnvägar AB Sweden

Research methodology, in chapter 4 presents the research approach used in this study

Analysis & Recommendation, in chapter 5, presents analysis and recommendation

Conclusions, chapter 6 presents the conclusion and suggestion for future research.

8 CHAPTER 2 THEORETHICAL FRAMEWORK

This chapter will give an overview of literature that is related to the research problems. This chapter will introduce the concept of public transportation, classification of rail transport services, service quality, service quality in railway transportation, customer complaint behavior, complaint management, customer satisfaction, service standard, and service guarantee, factor analysis and regression analysis.

2.1 Public Transportation Public Transportation is mass transportation from the government or private company that can carry many people to their destination on time with cheap fares, comfortable and safe vehicles. This sector is based on public-private business to business (B2B) relationship and the system can be seen as a “value network” (Enquist, 1999; 2003). All business activities are principally a matter of meeting and satisfying customers needs (Johansson, 2001). An increasingly important task in transportation is the improvement of public transportation services as customer appeal to make them more useful so they can solve transportation problem. One of public transportation in land area is railway (train). According to Indonesia Railways Law No.23 2007, Railway is a united system that consists of infrastructure, vehicle, and human resources, also norm, criteria, requirement, and procedure in order to operate railway as transportation mode. Railway operation consists of infrastructure and vehicle (freight and passenger train) operations. Railway infrastructure covers all the fixed installations on routes and stations that are required for the running of . The activities inside the infrastructure area are infrastructure operational, construction, maintenance, and management. Railway operation consists of vehicles steered by a track on a dedicated area, which are governed by a signaling system. The activities inside vehicle operation are vehicle availabilities, vehicle operation, vehicle maintenance, and vehicle cultivation.

9 2.2 Classification of Rail Transport Services In the Services Sectoral Classification List (MTN.GNS/W/120), which was drawn up during the Uruguay Round based on the United Nations Provisional Central Product Classifications (UNCPC), rail transport services is listed as a sub- sector of transport services and includes five sub-categories namely, passenger transportation, freight transportation, pushing and towing services, maintenance and repair of rail transport equipment, and supporting services for rail transport services. A brief description of each of these sub-categories is given below: (a) Passenger Transportation (CPC 7111): This sub-sector includes two kind of services: (i) Interurban passenger transportation (CPC 71111)- This refers to interurban passenger transportation provided by railway, regardless of the distance covered and the class used. (ii) Urban and suburban passenger transportation (CPC 71112)- This refers to transportation of passengers between two urban areas or between an urban and a suburban area. Services provided by urban mass transit railways, i.e., underground and elevated railway, are included in this category.2 (b) Freight Transportation (CPC 7112): This sub-sector includes the following services: (i) Transportation of frozen or refrigerated goods (CPC 71121)- This refers to the transportation of frozen or refrigerated goods (e.g. perishable food products in special refrigerated cars) by railway. (ii) Transportation of bulk liquids of gases (CPC 71122)- This refers to transportation of bulk liquids of gases in special tank cars by railway. These cars may also be refrigerated. (iii) Transportation of containerised freight (CPC 71123)- This refers to transportation by railway of individual articles and packages assembled and shipped in specially constructed shipping containers designed for ease of handling in transport. (iv) Mail transportation (CPC 71124)- This refers to transportation of mail by railway on account of national and foreign postal authorities.

10 (v) Transportation of other freight (CPC 71129)- This refers to transportation by railway of freight, not included elsewhere. (c) Pushing and Towing Services (CPC 7113): This sub-sector includes railway pushing or towing services, on a fee or contract basis, e.g. the movement of wagons between terminal yards, industrial sidings, etc. (d) Maintenance and Repair of Rail Transport Equipment (CPC 8868): Maintenance and repair activities in this sub-sector cover repair services of transport equipment, on a fee or a contractual basis and do not include maintenance and repair of railway infrastructure, which is covered under the Construction and Related Engineering services sector (CPC 51310 and CPC 51320). (e) Supporting Services for Rail Transport Services (CPC 743): This sub-sector includes railway passenger terminal services, except cargo handling, and other supporting services for railway transport, not classified elsewhere. This subcategory excludes shunting services (classified in CPC 71130 under Pushing or Towing Services); railway freight cargo handling services [classified in the subclass CPC 74110 under Container Handling Services, if for containerised freight, and in CPC 74190 (Other Cargo Handling Services), if for non- containerised freight or passenger baggage.

2.3 Service Quality Before defining service quality, it is important to know the characteristic of service quality. Zeithaml (1990) acknowledges the characteristics of service quality which is more on the subjectivity of customers. Zeithaml describes it as follow: a. Service quality is more difficult to evaluate than goods. b. Customers do not evaluate service quality solely on the outcome of a service, they also consider the process of service delivery. c. The only criteria that count in evaluating service quality are defined by customers. Only customers judge service quality. Specifically, service quality perception stem from how well a provider performs vis-à-vis customers’ expectations about how the provider should perform.

11 American Society of Quality (ASQ) defines quality as “The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.” (Haksever et al. 2000). Park, Robertson and Wu (2004) define service quality and service value as: service quality can be defined as a customer’s overall impression of the relative efficiency of the organization and its service, and service value can be defined as customer’s overall assessment of the utility of a product base on perceptions of what is received and what is given. Parasuraman (1985) defines service quality as a measure of how well the service level delivered matches customer expectation. While Edvardsson (1997) acknowledges that service quality is that “the service should correspond to the customers” expectations and satisfy their needs and requirements”. Moreover, Lewis and Booms declare that service quality is matching service and expectations. Parasuraman et al. (1988) argued that “SERVQUAL” is multiple-item instrument for assessing customer perception of service quality in service and retailing organization. They also declare that their research showed criteria used by customer to assess service quality fitting 10 dimensions: tangibles, reliability, responsiveness, communication, credibility, security, competence, courtesy, understanding/knowing the customer, and access. After further examination, they proposed five dimensions of SERVQUAL, there are: 1. Reliability is the ability to provide services promised to the right (accurately) and the ability to be trusted (dependably), mainly to provide services in a timely manner (on time), in the same manner in accordance with the schedule that has been promised, and without making mistakes each time. The attributes in this dimension are: a. Ability to perform the promised service dependably and accurately b. Providing services as promised c. Dependability in handling customers’ service problems d. Performing services right at the first time e. Providing services at the promised time f. Keeping customers informed about when services will be performed

12 2. Responsiveness, that is the will or desire to help employees and provides services that customers needed. Leaving the customer to wait, especially without a clear base, will cause a negative impression that should not happen. Unless this error was responded quickly, it can be a good expression and a pleasant experience. The attributes that exist in this dimension are: a. Willingness to help customers and provide prompt service b. Readiness to respond to customers’ requests 3. Assurance, including knowledge, skills, hospitality, courteous, and trustworthy nature of the contact personnel to the nature of customer skepticism, and feel free from danger and risk. The attributes that exist in this dimension are: a. Knowledge and courtesy of employees and their ability to inspire trust and confidence b. Employees who instill confidence in customers c. Making customers feel safe in their transactions d. Employees who are consistently courteous e. Employees who have the knowledge to answer customer questions 4. Empathy, include attitude contact and company personnel to understand customer needs and difficulties, good communication, personal attention, ease of communication or conduct in the relationship. The attributes that exist in this dimension are: a. Caring, individualized attention the firm provides its customers b. Giving customers individual attention c. Employees who deal with customers in a caring fashion d. Having the customer’s best interest at heart e. Employees who understand the needs of their customers 5. Tangibles, availability of physical facilities, equipment, and communication facilities and the other that can or should be in the process of services. The attributes that exist in this dimension are: a. Appearance of physical facilities, modern equipment b. Employees who have a neat, professional appearance c. Visually appealing materials associated with the service d. Convenient business hours

13 Parasuraman (1991) also divides the five dimensions into two main categories considering which part of the service they are more involved in; process or outcome. While reliability dimension is mainly concerned with the service outcome, other dimensions of service are more concerned with the service process. Then it can demonstrate the whole dimension of service again. The following are two categories discussed above: Service Outcome Reliability Service Process Tangibles Responsiveness Assurance Empathy The reliability, which includes the accuracy and dependability determinants of service, can be judged after the service was delivered to customers, but the other dimensions must be judged when the service is being delivered. Parasuraman (1991) states, “Although reliability is the most important dimension in meeting customer expectations, the process dimensions (especially assurance, responsiveness, and empathy) are most important in exceeding customer expectations”. They also state that in their study in 1991 “when we asked our respondents to discuss what companies could do to exceed their expectations, they invariably answered in term of the process dimensions. In general, companies are supposed to be accurate and dependable and provide the service they promised to provide, in other words, meeting the reliability dimension. However, to go beyond what is expected and provide the excellence of service to customers, the providers need to “surprise customers with uncommon swiftness, grace, courtesy, competence, commitment, or understanding.” (Parasuraman, 1991) That is, in other words, meeting the tangibles, responsiveness, assurance and empathy dimensions. In practical implementation, Parasuraman et al. (1985) finds missing link between service quality perspectives owned by the producers with service quality perceived by the customers. Parasuraman et al. models the missing link with gap between the perception of service quality from the producer and customer.

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Word of mouth Personal needs Past experience Communication

Expected Service Customer Gap 5 Perceived Service

Provider Gap 4 External Service delivery communications to Customer

Gap 3 Service Quality Gap 1 Specifications

Gap 2

Management Perception of Consumer expectation

Figure 2.1 Service Quality Model Source: Conceptual Model of Service Quality (Zeithmal et al., 1990)

Briefly, the gap model in the above can be summarized as follows: to close the gaps, the company must identify what customers expect (gap 1 “understanding gap”), then the organization has to design the service accordingly (gap 2 “design gap’), and assure that the service is delivered as it was designed (gap 3 “delivery gap”). At the same time, they must communicate to customer precisely what the services contain (gap 4 “communication gap”). When this is done, the company has done what it can to design, to deliver, and to communicate the service to customers, and thereby increases the chance that customer expectations of the service and their experience of it match (gap 5 “service quality gap”). Based on the Service Quality Model, this research focus on gap 2 “design gap” and gap 3 “delivery gap.

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Figure 2.2 Gap 2: Between Management’s perceptions of customer expectations and Service Quality Specifications

Gap 2 or design gaps occur due to differences between management perceptions of customer expectations and service quality specifications. The design of service standards aims to find out what benchmark the quality of service standard that is applied by the management service providers. If the management does not have service standards, they need to make the design standard of service quality.

Figure 2.3 Gap 3: Between Service Quality Specifications and Service Delivery

In gap 3, the role in standard delivery of the service also must be paid attention to. The service standards are made as the guide in the operation of a service that is the realization from hope of the customer on this service. If this customer expectation is different from the application of the service standard, then complaints from the customers on the dissatisfaction of the services emerge.

16 2.4 Service Quality in Railway Transportation The importance concern in transit service quality is passengers’ point of view. TRB (2003a) groups those categories into two main groups, those are: availability, and convenience & comfort. 1. Availability a. Service Coverage. Service coverage is an important factor for choosing transit. The route of service should ease one to mobile, from origin to destination. For examples, train station should be easy to access by walking or bike and easy to access to bus shelter even for those disabled people. b. Scheduling. Scheduling is related with how easy the passengers get service by the train with short waiting time in the station. This condition is related with many operated fleets and high frequency of the train. c. Capacity. “Capacity can impact train service availability”. During rush hours or holiday, trains often experience overload in capacity. It means, for people who have not get in the train, the service is not available. d. Information. Information is a vital factor. Passengers need information in order to get reliable service. Operator should inform any information to the passengers through any possibilities (TRB 2003a).

2. Comfort and Convenience a. Passenger Load. Passenger load can reduce the added value compared to private vehicles. These factors need more attention as operator should be smart to adjust “load factor”, based on supply and demand. When demand is low, operator will set frequencies to become low, vice versa. b. Reliability. Reliability in transit service is the matters of time that are “on-time performance” and “regularity of headway”. These problems could be influenced by internal and external operator’s management, such as traffic condition, road construction, vehicle and maintenance quality, transit preferential treatments, schedule achievability, evenness of passenger demand”, etc. c. Travel Time. Travel time is one of a consideration factor for choosing modes. If travel time of public transit is less than private vehicle, one will choose public transit. Thus, public transit should have added value to become people reference.

17 d. Safety and Security. Safety and security in transit is whole parts from step on the station until travel with the train safely and secure from criminal action. e. Cost. When passenger has plans to mobile somewhere, one will compare “cost out-of-pocket and value” of each mode. f. Appearance and Comfort. Appearance includes cleanliness and neatness of vehicle and station. Appearance condition can either attract customer or instead unwilling to use transit. Appearance is reflection of management concern to transit service. Comfort is related with personal comfort feeling, such as “appropriate climate control (air conditioner, heater), comfort of seat, and comfort of ride”. The more comfort they feel, the more consideration to use public transit (TRB 2003a).

2.5 Customer Complaint Behavior Complaints are a vital form of customer feedback that provides unique and valuable information to an organization concerned with quality improvement and risk management. Customer complaint behavior is a complex construction although three factors are commonly mentioned in different definitions of the phenomenon, either separately or in combination. The definitions either describe the complaining customer’s state of mind, a behavioral, and/or a communicational act (Tronvoll 2008). London (1980) defines customer complaint behavior as “an expression of dissatisfaction by individual customers (or on a customer’s behalf) to a responsible party in either the distribution channel or a complaint handling agency”. Oliver (1980) notes that complaint behavior is dissatisfaction which is caused by negative disconfirmation of purchase expectations. Singh and Howell (1985), define customer complaint behavior “as a set of multiple (behavioral and non behavioral) responses, some or all of which are triggered by perceived dissatisfaction with a purchase episode”. Knowledge about complaint behavior gives the service provider valuable insight into many areas such as identifying common service problems, improving service design and delivery, understanding the customer’s perceived service quality and helping strategic planning (Tronvoll 2008). There are five behaviors common complaint:

18 1. Facing companies/retailer in a certain way. 2. Avoiding the same company/retailer and persuading friends and family, to avoid the same company/retailer. 3. Doing open action involving third parties (for example, launched a formal action to obtain compensation). 4. Boycotting a company or organization. 5. Creating an alternative organization to provide goods or services. The first three behaviors - related to the retailer, rather than degrading the brand or store and asking friends to avoid too, and complained through a third party - is an open response to the problem of product or service which customers claim, both personally punish retailers through business withdrawal or by demanding some kinds of replacement. This replacement can be in the form of money or replacement product. Two last behaviors are more far-reaching: pulling their own business (hope not from your friends and family) to launch a customer boycott of a general attempt to change the marketing practices and / or promoting social change. Perhaps the most drastic behavior is the last: creating a new organization to provide goods or services. Singh (1988) suggests that customer complain behavior could be classified into three major categories: (1) voice response to the party directly involved in the complaint; (2) private response (e.g. negative word-of-mouth and/or switching); and (3) a third party response (e.g. legal action). From the customers perspective it is important to complaint after encountering an unfavorable service experience because it gives the customer an opportunity to (i) receive an apology for the inconvenience, (ii) be offered a fair solution of the problem, (iii) be treated in a manner where the service company appreciates the customer’s problem (including fixing it), and (iv) be offered some value-added atonement for the inconvenience (Zemke and Bell, 1990). From the transportation company’s perspective, complaint behavior is important because it, (i) helps the provider to develop a sustainable business, (ii) may reduce the effect of the negative word-of-mouth, and (iii) influences the profitability in the future. A complaint provides an opportunity for service recovery which, in turn, has the potential to educate the customer, strengthen loyalty, and induce positive word-of-mouth comments (Edvardsson and Roos 2003; Friman and

19 Edvardsson 2003). Although attracting new customers is vital, successful service companies recognize that retaining current customers and building loyalty are even more important for profitability; as such, successful service companies actually encourage dissatisfied customer to complain (Tax et al. 1998).

2.6 Complaint management Complaints are valuable source of information. Every complaint is an inside look into a customer’s mind, provided at no cost to company. Complaints tell company why customers are dissatisfied and what company can do about it. An effective complaint management process can be an important quality improvement tool. Many studies that emphasize that customer feedback and complaint should be welcomed and encouraged by the service provider because they generate valuable information (Nyer and Gopinath 2005; Reynolds and Harris 2006; Tax and Brown 1998). Customer complaints may be useful in many ways: providing marketing intelligence data (Harrison-Walker 2001), identifying common service problems (Harari 1992; Johnston and Mehra 2002; Richins and Verhage 1985; Tax and Brown1998), learning about organizations (Hoch and Deighton 1989; Johnston and Mahra 2002; Tax and Brown 1998), improving service design and delivery (East 2000; Marquis and Filiatrault 2002; Tax and Brown 1998), measuring and enhancing the perception of service quality (Edvardsoon 1992; Harrison-Walker 2001; Marquis and Filiatrault 2002) and helping strategic planning (Droge and Halstead 1991; Johnston and Mehra 2002). According to Schnaars there are four important aspect for handling customer complaint, there are: 1. Empathy with the customer Empathy with the customer anger is essential in handling customer complaints. Management can gain empathy from customers by providing more time to listen to customer complaints. 2. Speed of response The speed is crucial in handling customer complaints. When customers make a complaint and did not get the right handling, then customers would likely not satisfied and can not be converted into satisfied with the service company.

20 3. Balance of response The company can handle the customer complaint in three ways: a. Ignore b. Giving a lot of compensation c. Equally compensate the customer dissatisfaction The best response to customer complaints is to improve the quality of the product to the expected level of quality customer before making a purchase so that customers get the satisfaction of the original satisfaction. 4. Ease to contact the company In the era of globalization, communication is an absolute requirement. By opening a channel of communication, customers can easily contact the company. Although in reality a large cost element, but it would be very beneficial for companies to create goodwill in the eyes of customers in the long term. According to Davidow (2000), there are six different dimensions of organizational responses to complaint that affect postcomplaint customer behavior. There are: 1. Timeliness. The perceived speed with which an organization responds to or handles a complaint. 2. Facilitation. The policies, procedures, and structure that a company has in place to support customers engaging in complaints and communications. 3. Redress. The benefits or response outcome that a customer receives from the organization in response to the complaint. 4. Apology. An acknowledgement by the organization of the complainant’s distress. 5. Credibility. The organization’s willingness to present an explanation or account for the problem. Attentiveness. The interpersonal communication and interaction between the organizational representative and the customer.

2.7 Customer Satisfaction Customer satisfaction is the “collective outcome of the customer’s perception, evaluation, and psychological reaction to the consumption experience with a product or service” (Khalifa & Liu, 2003). It leads to repeat purchase, loyalty, positive word of mouth, and increased long term profitability for the organization (Wirtz, 2003).

21 Customer satisfaction thus highlight and explains the link between what a company does (in terms of the products and service offered) and its customers reaction for that. Attributes like reliability, frequency, comfort, information, driver behavior, and cleanliness are shown to be key elements of public transport user satisfaction (Bates et al. 2001, Beirao & Cabral 2007, Friman & Garling 2001, Hencher et al. 2003). According to Oliver (1997), customer 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. The Expectancy Disconfirmation with Performance (EDP) framework (Oliver, 1997) is one the most common theories of customer satisfaction. A basic assumption is that satisfaction or dissatisfaction results from a comparison of expectations with actual performance.

Figure 2.4 The expectancy disconfirmation with performance model Source: Satisfaction: A behavioral perspective on the customer (Oliver, 1997)

The EDP model is applicable to explaining why people feel dissatisfied or satisfied with public transport. The satisfaction judgment seems to originate in a comparison of the level of performance perceived by the person using an evaluative standard. Typically, this standard is formed by people expectations. Consequently, disconfirmation may function as a process of change in the overall evaluation processes.

22 2.8 Service Standards Service standards, a shortened form of the phrase "standards of service" -- are more than service delivery targets such as waiting times and hours of operation. Customer are entitled to know what they should expect from the service provider, how services will be delivered and what they cost, and what customer can do when services they receive are not acceptable. According Giannopoulos (1988) service standard is a fixed minimum or maximum value of a specific performance or other indicator that should not be exceeded. It is a limiting value or a specific objective to achieve, which may or may not correspond to a performance indicator. Service standards include five essential elements (Giannopoulos 1989): 1. Descriptions of the service you intend to provide and, where applicable, the benefits clients are entitled to receive. 2. Service pledges or principles describing the quality of service delivery clients should expect to receive, focusing on such elements as openness, fairness, courtesy, professionalism, choice of official language where applicable, etc. 3. Specific delivery targets for key aspects of service, such as timeliness, access and accuracy. 4. The costs of delivering the service, and 5. Complaint and redress mechanisms that clients can use when they feel standards have not been met. While each of these elements can exist on its own, it is expected that, in most cases, service standards will eventually cover all elements. However, in a limited number of instances, every element may not be relevant to the situation. In many instances, clients for services have responsibilities as well as entitlements. In order to receive the quality of service delivery described in service standards, they frequently must provide required information accurately, present themselves on time, be able to explain their situation, etc. Service standards are being used as a mechanism to provide an evaluation of the performance of the public transport system as a whole and/or this of individual routes. Relative to the service standards, the following cases may exist (Giannopoulos 1989):

23 1. Formal Service Standards. These are official policy objectives, which are used to evaluate a particular performance indicator by establishing specific limits that identify acceptable and unacceptable performance levels. The formality of the standard is a reflection of its status within an agency as official policy and the existence or a formalized performance evaluation and review process for the corresponding indicators. Due to the standard’s official status, a major effort is normally made to adhere to its requirements under most situations and conditions. 2. Informal Service Standards. In this case the standard has no official or policy status within an agency and is used as an internal guideline only. The standard’s informal nature may result in less than universal application under various situations or conditions at the discretion of the department or manager responsible for the evaluation activity. 3. Proposed Service Standards. This is the situation, in which a transit system is either in the process of developing a service standard to evaluate a performance indicator, or it is currently involved in securing approval for recently been approved. Most of the agencies with “proposed” standards envision that the standards will receive formal status in the near future. 4. Performance Indicator Monitoring. This is the situation, in which a transit system does not possess (or is in the process of developing) a service standard to evaluate a performance indicator. However, despite the lack of a standard, the agency does track or monitor the performance indicator by collecting/analyzing pertinent data and by calculating various indicators and statistics on a more or less regular basis. Transit systems that monitor performance indicators frequently use such general terms as “minimize” or “maximize”, which indicate a desire to improve some aspect of performance levels that are quantifiable or measurable. 5. No Standards or Indicators. A final case is a situation, in which no standards or performance indicators are used by the agency.

24 2.9 Service Guarantee A service guarantee is a statement that clarifies what the customers can expect from a service, and what the company will do to rectify the situation if the service does not meet expectations. Service guarantees have been claimed to be an important device for achieving total customer satisfaction after a service failure (Sasser at al., 1991). A service guarantee is a promise by a firm that they will perform at a certain level and, if that level is not met, the firm also promises to compensate the customer in some way. When purchasing a service, customers have an expectation of what the quality of that service will be (the promise). The firm provides some level of quality (performance). If the customer or the firm is unsatisfied with the quality of the service provided, the firm may or may not do something to satisfy the customer (compensation). Kashyap (2001) states that service guarantees establish mechanism for routine checks on performance, and create “feedback loops between the company and its customer to facilitate organizational learning. A Service guarantee transforms an intangible service into a measurable expectation for the customer before receiving the service (Wagner, 1994). Service guarantees could have a positive effect on customer satisfaction by managing customer expectations (Cahill and Warshawky 1995), ensuring responsiveness, forcing the firm to attain a high level of reliability, and providing tangible evidence of a firm's empathy. A guarantee makes non-quality visible (Harvey 1998) and provides economic incentive for the organization to continually improve its service delivery process. Most companies use service guarantees to improve customer satisfaction and attract new customers (Sasser et al., 1991).

2.10 Factor Analysis Analysis factor is used to uncover the latent structure (dimensions) of a set of variables. It reduces attribute space from a larger number of variables to a smaller number of factors and as such is a "non-dependent" procedure (that is, it does not assume a dependent variable is specified) (Garson, 2010). Factor analysis could be used for any of the following purposes: 1. To reduce a large number of variables to a smaller number of factors for modeling purposes, where the large number of variables precludes modeling all

25 the measures individually. As such, factor analysis is integrated in structural equation modeling (SEM), helping confirm the latent variables modeled by SEM. However, factor analysis can be and is often used on a stand-alone basis for similar purposes. 2. To establish that multiple tests measure the same factor, thereby giving justification for administering fewer tests. Factor analysis originated a century ago with Charles Spearman's attempts to show that a wide variety of mental tests could be explained by a single underlying intelligence factor (a notion now rejected, by the way). 3. To validate a scale or index by demonstrating that its constituent items load on the same factor, and to drop proposed scale items which cross-load on more than one factor. 4. To select a subset of variables from a larger set, based on which original variables have the highest correlations with the principal component factors. 5. To create a set of factors to be treated as uncorrelated variables as one approach to handling multicollinearity in such procedures as multiple regression. 6. To identify clusters of cases and/or outliers. 7. To determine network groups by determining which sets of people cluster together. There are several different types of factor analysis, with the most common being principal components analysis (PCA), which is preferred for purposes of data reduction. However, common factor analysis is preferred for purposes of causal analysis and for confirmatory factor analysis in structural equation modeling, among other settings.

2.11 Regression Analysis Regression analysis examines the strength of a relation between a dependent variable and a number of independent variables, also called explanatory variables. The mathematical model of the relation between the dependent variable and the explanatory variables is known as the regression model. The regression model contains one or more unknown parameters that are estimated using the given data on the explanatory variables.

26 The simplest and most commonly used is the univariate linear regression, y = a + bx (Esbensen et al., 1998). In the multivariate case, the corresponding technique is called MLR (Multivariate Linear Regression), which fits a linear combinations of several variables, x1, x2, ..., xn, to describe the response, y (Esbensen et al., 1998). The following equation describes the linear regression model that is used in the analysis:

Υ = βo+β1χ1+………………..+βnχn+ε (1)

Where: Υ = Dependent variable

βo = Constant value

β1 – βn = Independent variable coefficient

χ1 - χn = Independent variable ε = Error

27 CHAPTER 3 EMPIRICAL STUDIES

This chapter presents historical introduction, company organization, project description, customer satisfaction index, complaint handling system and service guarantee that given by PT Kereta Api Indonesia and Statens Järnvägar (SJ) AB, Sweden.

3.1 PT. Kereta Api Indonesia 3.1.1 Introduction The first railway line in Indonesia began operations in August 10, 1867 in . By May 21, 1873, the line had connected three main cities in the region, i.e. Semarang, Solo and Yogyakarta. This line was operated by a private company, Nederlandsch-Indische Spoorweg Maatschappij (NIS: Netherlands East Indies Railway Company). The railway restructuring has gone through various stages, started with Djawatan Kereta Api (DKA), short after the Independence Day in 1945. Later years, it changed into several names of public corporations, such as Perusahaan Negara Kereta Api (PNKA) and Perusahaan Jawatan (PJKA), which were considered as public services. In 1991, the organization changed into a state-owned enterprise, Perusahaan Umum Kereta Api (PERUMKA) which aimed for commercial purposes, while maintaining the obligation to provide public services. nd The transformation from PJKA into PERUMKA on January 2 , 1991 was known as the first major step in the Indonesian railway restructuring. The implementation of Law Number 13/1992 on Railway influenced the efforts of the restructuring of the State Owned Companies (BUMN) which had functions as the provider and operator of rail infrastructure as well as train services. As stated in Chapter 6 of the law, the implementation of railway transport by the government was delegated to a corporation, which was established for the purpose according to the regulation. With the implementation of Law Number 13/1992, part of the regulatory function which was then indirectly conducted by PERUMKA even though formally

28 was the duty and responsibility of the government in this case Ministry of Transportation - Directorate General of Land Transportation. The second stage of the railway restructuring was the transformation of PERUMKA into PT. Kereta Api (Persero), a state owned enterprise, through Government Regulation No. 19/1998. By this latest conversion, therefore, full extent of limited company principle was then exercised by PT. Kereta Api (Persero), as regulated in Law No. 1 / 1995 on Limited Company and Government Regulation No. 12 / 1998 on Persero Company. The objective of PT. Kereta Api (Persero) was to provide high quality services that were competitive and profitable to increase company’s value (Article 4 item (1) sub B. Government Regulation No. 12 / 1998). This was supported by Article 1 Item (2) Government Regulation No. 12 / 1998 which stated that all or at least 51% of the company’s shares was owned by the State through direct capital investment. PT Kereta Api (Persero) (Railway Corporation, LLC) is the major operator of public railways in Indonesia. It is completely owned by the state, and pays track access charges to the government. The other operator is PT Kereta Api Jabotabek, which operates electrified commuter service in the Jakarta metropolitan area. PT Kereta Api Jabotabek was spun off from the Jabotabek Division of PT Kereta Api (Persero) on August 14, 2008.

Table 3.1 Track and Length South West North Java Sumatera Sumatera Sumatera 202 Route-km 2944 649 (16 km in 463 operation) Track-km 3362 649 202 463 Traffic 2005 (millions) 14540 3650 0.036 0.498 (Pass-km + tones-kms) % Freight 6 90 100 29 Traffic density / route 4938.9 5624.0 2.250 1.076 kms (thousand) % Revenue 74 22 1 3 Source: PT KAI

Table 3.1 depicts the current operational data of PT. Kereta Api (Persero). There are currently four regional operations i.e. Java, South Sumatera, West Sumatera and North Sumatera consisting of 6.700 kms track. 4.000 kms is in

29 operation, while the rest 2.700 kms were closed due to the tight competition with road transport. This has attracted the attention of local governments to revitalize them in accordance with the new Law Number 23 / 2007 on Railway. Table 1 also shows the traffic loads as well as revenue gained from each region. The recent enactment of Law Number 23 / 2007 on Railway supersedes the Law Number. 13 / 1992 on Railway. Two significant changes were made, those are the monopoly of PT Kereta Api (Persero) as the sole service provider has been abandoned and the local governments may get involved in railway development within their jurisdictions. As the monopoly privilege of PT Kereta Api (Persero) has been discarded, other business entities including private sectors are then welcomed to be involved in the railway sector in the country. However, this may not abruptly succeed as the foundation for inviting private sector in railway that is not ready yet, e.g. the institutional framework is still being developed, especially how private sectors can participate in the existing main railway lines.

3.1.2. Indonesian Railway Organizations Railway as one of the transportation modes in Indonesia is regulated and authorized by Ministry of Transportation Government of Indonesia. The ministry delegates the task to Directorate General of Railway (DGR). DGR responsibilities consist of area related to railway such as infrastructure, vehicle, traffic, operational and maintenance standard, and regulation. DGR tasks consist of relationship to the operator that are making agreement, negotiation, set regulation and standard, performance evaluation, and maintaining relationship between government, people, and operator. There are three Directorates inside the DGR; Directorate of Railway infrastructure handles all related subject with the infrastructure and network construction, Directorate of Railway Traffic and Transport handles all related subject with traffic, network operational, timetable, and services, Directorate of Railway Safety and Vehicle handles all related subject with railway safety and vehicle performance. The Directorates have direct coordination with the operator as the railway service provider.

30

Source: www.kereta-api.co.id

The vision of Directorate General of Railways is to establish mass transportation for passengers and freight that reliable, secure, safe, trustworthy and affordable. The missions are to improve railway as public transportation, backbone of freight transport, and as pioneer in creating integrated transportation.

Figure 3.1 Coordination Structure of Directorate General of Railway Source: www.dephub.go.id

PT Kereta Api (Persero) (Railway Corporation, LLC) is the major operator of public railways in Indonesia. It is completely owned by the state, and pays track access charges to the government. The other operator is PT Kereta Api Jabotabek, which operates electrified commuter service in the Jakarta metropolitan area. PT Kereta Api Jabotabek was spun off from the Jabotabek Division of PT Kereta Api (Persero) on August 14, 2008.

31 Table 3.2 Passenger Data (000 people) Jawa Year Non Jabotabek + Non Sumatera Total Jabotabek Jabotabek Jabotabek

2006 104.425 51.671 156.096 3.323 159.419 2007 118.095 53.826 171.921 3.415 175.336 2008 125.451 64.688 190.139 3.939 194.078 2009* 119.770 62.441 182.211 3.738 185.959 Source : PT KAI * until November

In doing the core business, PT KAI set a total of 9 Operational Region (DAOP I Jakarta, DAOP II Bandung, DAOP III , DAOP IV Semarang, DAOP V Purwokerto, DAOP VI Yogyakarta, DAOP VII Madiun, DAOP VIII Surabaya, and DAOP IX Jember) and 3 Regional Division (DIVRE I Sumatra Utara, DIVRE II Sumatra Barat, and DIVRE III Sumatra Selatan), which are responsible in maintaining the infrastructure and the operational of railways. Company mission is formulated in order to realize the vision of the company that is, aware of train as the main choice of transportation services with an emphasis on: 1. Entire society as a customer 2. Leader in safety and reliability 3. Pioneer of sustainable development 4. A healthy financial companies 5. Employee and prosperous nation The mission of PT KAI is to create the nature of mass transportation for economic growth and support the other sector. The main task is to engage rail transport services in order to expedite the movement of people and or goods in bulk to support of national development. PT KAI is divided into five directors and headed by a chief executive as a president director whose duty is to receive instructions from and report to the Minister of Transportation regarding the implementation of public policy such as to carry out basic tasks of PT KAI and the other tasks provided by the Department of Transportation. The five directors -- director of finance, director of railway technique

32 and engineering, director of operation, director of personal and general affair, and director of business development -- work mainly with production and have operational responsibility. The Director of operation covers most of divisions and strategic corporate functions in PT KAI. There are, rolling stock division, training divisions, property divisions, corporate secretary, centre of planning and development, centre of safety and risk management, internal audit, regional area of Jawa (I – IX), and regional division of Sumatera (I – III).

Figure 3.2 Organization Hierarchy of PT Kereta Api Indonesia Source: PT KAI

3.1.3. Project Description in PT. Kereta Api Indonesia a. Railway Network In Indonesia, railways cover about 3,362 km in Java and 1,314 km in Sumatra including South Sumatera, West Sumatera and North Sumatera consisting 6,700 kms track. 4,000 kms is in operation, while the rest 2,700 kms were closed due to the tight competition with road transport, with only 10% of this being double-track railway. The railway networks lines in Java and Sumatera can be seen in figure 3.3 and 3.4.

33

Figure 3.3 Railway Map in Jawa (total length route, 2005: 3.362.000 km) Source: PT KAI

Figure 3.4 Railway Map in Sumatera (total length route, 2005: 1.314.000 km) Source: PT KAI

For commuter train, PT KAI has an affiliated company, that is PT KAI Commuter Jabodetabek (PT KCJ) as a commuter operator in jabodetabek area. PT. KCJ operates 343,895 km electricity line and track. The railway network in Jabodetabek area connects hinterland area with Province DKI Jakarta. The railway network map of operational lines in Jabodetabek can be seen in figure 3.5.

34

Figure 3.5 Railway Map in Jabodetabek Area Source: PT. KA Commuter Jabodetabek

The service routes of Jabodetabek commuter consists of: a. Circular Line, with route Jatinegara – Manggarai - Tanah Abang – Duri - Kp Ambon –Pasar Senen - Jatinegara (29,738 km). b. South Line, with route Bogor – Depok - Manggarai (44,92 km) c. with route Manggarai-Gambir-Kota (9,89 km) d. Bekasi Line with route Bekasi-Jatinegara (14,802 km) e. Serpong Line with route Serpong - Tanah Abang (23,278 km) f. Tangerang Line with route Duri - Tangerang (19,297 km) g. Tanjung Priok Line with route Tanjung Priok - Kota (8,115 km) b. The Stations There are 70 stations under the management of PT. KCJ and DAOP I PT. KAI. The stations under the management of PT. KCJ are the stations specific only to serve as commuter train. The name of the stations can be seen in figure 3.5. While in table

35 3.3 bellow, there are some stations located in Java Island which are divided into 9 (nine) operational regions (Daops).

Table 3.3 Railway Stations in Java Operation Area Description Operational Region 1 Jakarta operational area is operation zone extended from Jakarta Merak station (west) in Province to Cikampek station (east) and Sukabumi station (south) across the station in Jakarta province Operational Region 2 Bandung operational area is operation zone extended from Bandung Cibungur station (north) to Cipari station (east) and Ranji station (west) across the stations in the north area of province Operational Region 3 Cirebon operational area is operation zone extended from Cirebon Tanjungrasa station (west) to Brebes station (east) and Songgom station (south) across the stations in the north area of West Java province Operational Region 4 Semarang operational area is operation zone extended from Semarang Tegal station (west) to Kalitidu station (east) and Gundih station (south) across the stations in the north of Central Java province Operational Region 5 Purwokerto operational area is operation zone extended Purwokerto from Prupuk station (north) to Purworejo station (east), Sidareja station (west) and Cilacap station (south) across the stations in the south area of Central Java province Operational Region 6 Yogyakarta operational area is operation zone extended Yogyakarta from Montelan station (west) to Kedungbanteng station (east) in province, Monggot station (north) and Wonogiri station (south) across the stations in Yogyakarta province Operational Region 7 Madiun operational area is operation zone extended from Madiun Walikukun station (west) to Curahmalang station (east) and Rejotangan station (west) across the stations in the south area of East Java province Operational Region 8 Surabaya operational area is operation zone extended from Surabaya Bojonegoro station (north) to Blitar station (south) and Mojokerto station (west) across the stations in the north area of East Java province Operational Region 9 Jember operational area is operation zone extended from Jember Bangil station (west) to Banyuwangi station (east) across the stations in the east area of East Java province Source: PT KAI

The condition of emplacement in some stations is lower than the train entrance door and some are at the same height as the train entrance door, and the length of the

36 emplacement in some of the stations are not as long as the train length. This condition can cause difficulties for passengers especially for the disable and elderly people getting on-board and off board. c. The Vehicles All locomotive of PT Kereta Api Indonesia are diesel engines. Most new locomotives use electric transmissions, while older and lighter ones have hydraulic transmissions. As in 2004, PT KAI operates: a. 74 diesel multiple units b. 253 electric multiple units c. 846 revenues passengers’ car d. 65 non-revenue passenger car (baggage-generators car and dinning cars) e. 3214 freight wagons PT KAI diesels –electric locomotives are mostly US or Canadian built, while the diesels-hydraulic are mostly Germany. Electric multiple units are made in Japan and Dutch. Local industry is capable of building multiple units, both diesels and electric. In addition, PT. KCJ as an operator of commuter train in Jabodetabek operates 395 units electric train (KRL). There are three type of commuter train; non Air- Conditioned (non AC) economic commuter, Air Conditioned (AC) economic Commuter and Air-Conditioned (AC) express commuter. The non AC economic commuter and AC economic Commuter are trains included in the government subsidy. The AC express commuter is train operated by PT. KCJ using their own expenses. d. Cost & Fare Payment Tariff for train transportation is differentiated by origin-destination and type of service (commuter, business and executive). Nevertheless, for economic commuter class, passengers pay less than the actual price because the government gives subsidies for this class. The ticket for commuter passenger is available in retail and periodic. Retail ticket is in form of paper while periodic in form of periodic card. Meanwhile, passengers (executive and business) can book the ticket through:

37 1. Counter sales and reservations at the station a. Sales through the counters at the stations are served or open three hours before the departure of trains; b. Tickets can be booked 30 days earlier up to three hours before departure; c. Ticket payment is in accordance with the relevant railways tariff; 2. Booking through Central Reservations a. Train tickets purchase or reservations are served 30 days earlier up to hours before departure of trains; b. Passengers can come directly to book tickets by cash and directly get the desired tickets[ 3. Sales through agents a. Sales through agents are served 30 days earlier up to one day before departure; b. Passengers can come directly to purchase the tickets by paying the registration fee and extra charge; 4. Sales through Call Center a. Sales or reservation through this system can be done in the Call center by dialing number (121 and 021-21391121); b. After that, passengers will get a booking code, so passengers can make payments via e-banking; c. Payments are made maximum 3 (three) hours after receiving the booking code; d. ATM payment receipt should be collected to the counter and then exchanged for the sale of the station which is already online; e. Booking a ticket is considered void if payments through ATM was not done within three hours; f. Booking a ticket through Call Center is served 30 days earlier up to 1 day before departure time; 5. Sales through Post Office (PT POS) a. Booking a ticket through this system is served 30 days earlier up to 2 days before departure time;

38 b. In reservations, passengers can directly pay the fare for train tickets, plus extra charge; c. Then the receipt will be used to redeem the ticket at the station;

3.2 Customer Satisfaction Index in PT KAI To describe the level of service quality in PT KAI operation can be done by seeing the existing condition. The existing condition data is obtained from the railway operator and community website (complaint database).

Table 3.4 Performance Report of PT KAI Year Item of Report 2003 2004 2005 2006 2007 Passenger Train Departure right on time (%) 80 81 70 82 84 Departure late (%, max. minute) 20 (8) 19 (7) 30 (5) 18 (4) 16 (3) Arrive right on time (%) 19 21 22 23 26 Arrive late (%, max. Minute) 81 (56) 79 (41) 78 (40) 77 (46) 74 (41) Freight Train Departure right on time (%) 24 21 23 25 34 Departure late (%, max. minute) 76 (187) 79 (72) 77 (85) 75 (80) 66 (80) Arrive right on time (%) 24 22 19 19 26 Arrive late (%, max. Minute) 76 (204) 78 (86) 81 (112) 81 (107) 74 (95)

Signaling problem (frequency) 3354 1650 1600 1550 1933 Locomotive baulk (frequency) 1719 1552 1519 1724 1787 Average WPG (days) 3.38 3.41 3.27 3.11 2.99 Source : PT KAI

It can be seen from table 3.4 that at present railways operation is still colored with the delay. The delay in railway operational happens when there are obstacles that make the train stop or hold up the speed. There are also some technical problems causing delay in commuter railway operation such as electricity shortage. This leads to traffic jam when another train coming into the line. The signaling can also become the cause of delay. Without signaling the train driver have no sign about the lines situation and the driver would not taking risk to endanger the operational. Not only from punctuality aspect, complains related to appearances and comfort including cleanliness, safety and security are faced by PT KAI. According to

39 the commuter website, many passengers complain the safety and security on train and at the station. Many cases of robbery and pickpocket happen everyday especially in non AC economic commuter. Accessibility also becomes problem for the disabled people. There is no particular space for people with disabilities. Wheelchair users are difficult to use train service. The elderly people and pregnant women sometimes face problems in using train services as the access to the train is difficult and not comfortable for them. From those explanations, it can be concluded that customers of railway transportation are not satisfied with the quality of service. This indicates that the quality of railway service is below passengers’ expectation. This means that the level of service given by PT KAI as a train operator is still dissatisfying.

3.3 Complaint Handling System in PT KAI An effective complaint handling system is an essential part of providing quality service. It is a measure of customer satisfaction. It provides positive feedback about aspects of the service that work well, and is a useful source of information for improvement. Complaint handling basically is activity to deliver complain, process of respond to the complaint, feedback and report of complaint handling (Tronvoll 2008). Responding to a complaint will be easier if the organization already have a system in place to deal with complaints in a practical way and a mechanism by which complaints are welcomed, received, investigated and resolved. A complaint handling policy and procedure, which customers are informed about will assist in the resolution and management of a complaint. PT KAI as a train operator in Indonesia has provided call center, customer service and the media of website (especially for PT KAI Commuter Jabodetabek) for customers that want to make a complaint if they feel dissatisfied with PT KAI services. PT KAI also has fans community website and community of customer website which also gives spaces for complaining. The form of complaint from website can be seen in figure 3.6. Unfortunately, session interview between researchers with the operator representative have not been realized. Therefore, the information about this item is limited.

40

Figure 3.6 Complaint Form in KCJ Website Source: www.krl.co.id

However, the fast response and feedback on complaints that was sent by the passengers of train only could be felt at the beginning time of launching this system and until now, the quality of the response to customer complaint increasingly decrease. Figure 3.7 shows the statement from one of train passengers that felt dissatisfaction about the complaint handling system in PT KAI.

“Does the website to provided for making a complaint still function… ???? There never was an answer… and from 6.35 am there are only 6 compartments of Express train (Depok – Tanah Abang)”

Figure 3.7 Customer Complaint Source: www.krl.co.id

41 Based on the perspectives of the train users, it seems that the customer complaint handling is still not yet effective. Therefore, it does need improvements.

3.4 Service Guarantee in PT KAI A service guarantee is a promise by a firm that they will perform at a certain level and, if that level is not met, the firm also promises to compensate the customer in some ways. Even service guarantees have been claimed to be an important device for achieving total customer satisfaction after a service failure (Sasser at al., 1991), PT KAI as a train operator in Indonesia still does not have this policy, but the information about this item is limited.

3.5 Statens Järnvägar (SJ) AB, Sweden 3.5.1 Introduction The first railway in Sweden started operating in 1856, between Örebro and Nora. This was also the year in which the , SJ, was founded (SJ, 2004). In 1862, the two largest cities in the country had a railway connection, and SJ started its traffic. In the following years, many railways were built, and most of them were private (in 1990, there were twice as many private tracks as publicly owned, (Kullander, 1994)). The demand for steel increased strongly at the turn of the 20th century, and the large resources in the north of Sweden, become worth exploiting due to the building of the railway (which solved the transport problem) and new processing technique. By 1910, Sweden had 12.000 kilometers of railway – in 2003, about the same track length, 11.697 kilometers, is in use (Banverket, 2004). In the Swedish rail sector, there are government authorities, private companies and public companies working. The former Swedish Railways (Statens Järnvägar, SJ) is now SJ AB (SJ AB), state owned joint stock company and runs merely passenger traffic. The government authority of the National Swedish Rail Administration (Banverket) is responsible for infrastructure and rail network. There are also some 20 – 30 private companies operating in as well national areas as local areas. Some examples: Green Cargo AB, Connex Sverige AB, Citypendeln Sverige AB, DSB Sverige AB (Danish owned), Inlandsbanan AB, Roslagståg AB, Svenska Tågkompaniet AB. Stor- Lokaltrafik (SL) runs passenger traffic and is also an entrepreneur in the region.

42 SJ AB became a 100% state-owned joint stock company on 1 January 2001. Its first activities as the state railway company in Sweden started in 1856. SJ has currently about 3,500 employees. SJ has 90% market share of the passenger traffic of long distances in Sweden. Also, SJ has currently 55% of the total train traffic in Sweden. In 2001 SJ was divided into six independent companies out of which SJ AB is one. Out of the five other companies one is in freight transport, Green Cargo AB. The other four companies are in maintenance, real estate, terminal service and IT. SJ’s business operations focus on three primary areas: 1. Quality, for SJ, quality means punctuality, service customer and providing clean trains that are in good working order. Developing SJ service culture is a key focus area and their aim to get even closer to their customer. SJ introducing a small organizational structure to help SJ staff to better equipped to offer a high quality travel experience. 2. Freedom of choice, freedom of choice is important and SJ committed to enabling customer to decide the content of their journey. Passengers can choose a lower level of flexibility by declining optional extras and thereby reduce the ticket price. Alternatively, they can increase service and flexibility by purchasing rebookable or cancelable tickets and rebookable meals and other services. SJ mission is for all customers to tailor their journeys to their individual needs and interest. 3. Growth, demand for rail has risen sharply in recent years and is anticipated to continue growing. To meet this demand, SJ offering tickets at attractive rates to encourage people to travel when there is plenty of space onboard, a strategy that has proved successfully. SJ are also expanding seat capacity on peak morning and afternoon services by using longer trains.

3.5.2 Sweden Railway Organization (Statens Järnvägar (SJ) AB) Statens Järnvägar (SJ) AB have a straightforward vision that its call “All Aboard”. It involves people seeing the train as their first alternative when planning a journey. SJ AB business concept is to provide travel on the passenger’s own terms. This means offering individuals, business travelers and long-distance commuters an attractive form of travel.

43 The mission of SJ is to offer value-for-money rail travel to passengers in Sweden and beyond that enables them to fulfill their planned activities on board and on arrival at their destination.

Source: www.sj.se

SJ is divided into seven divisions and six strategic corporate functions. The seven divisions, one for Southern Sweden Division, another for Northern Sweden Division, Long Distance Traffic Division, Subsidiaries Division, Sales Division, Rolling Stock Division and Production Division, work mainly with production and have operational responsibility. Production division covers most of the employees, up to 2000, amongst others those working onboard the trains, including the train drivers for vehicles. In the division for Rolling Stock, SJ have placed everything from acquisition and maintenance of vehicles to rail switches. The division for Sales covers both our own SJ travel offices (SJ Resebutik), situated at train stations, as well as customer service and telephone sales. The division is also in charge of external sales contacts such as travel agencies. The strategic corporate functions of Marketing & Information, Legal, Administration, Finance & Accounts, Traffic safety and External relations are responsible for strategic direction and coordination.

44

Figure 3.8 Organization Hierarchy of Statens Järnvägar (SJ) AB, Sweden Source: www.sj.se

3.5.3 Project Description in Statens Järnvägar (SJ) AB, Sweden a. Railway Network Rail uses a network of 12.821 km (include 3.594 km of privately owned railways) of track, the 20th largest in the world. Construction of the first railway in Sweden began in 1855. In 1853 the Swedish Parliament decided that the state would build main line railways, but that other lines would be built by private enterprise (often with cities as main owners), and in 1856 the first stretch, between Örebro and Nora (a private railway), was opened for traffic. The first two main line railways were the Southern, stretching from Stockholm to Malmö in the south, and the Western, to in west. These line railways were finished between 1860-1864. The Northern railway runs parallel to the Baltic cost (but not along it) up to Boden in northern Sweden, and was finished in 1894. The Inland Railway runs from Gällivare in the north to in the center of the country, through the central parts of northern Sweden, and was built between 1908-1937. There used to be six main lines (stambanor), all nationally owned: a. Västra stambanan (), 453 km, Stockholm-Gothenburg through Katrineholm-Halsberg-Låxa-Falköping.

45 b. Södra stambanan (), 381 km, Malmö-Falköping through Nässjo-Jönköping. c. Östra stambanan (Eastern main line), 216 km, Nässjö-Katrineholm through Mjölby-Linköping-Nörkpöing. d. Norra stambanan (Northern main line), 484 km, Stockholm-Ånge through -Avesta Krylbo. e. Stambanan genom övre Norrland (Main line through upper Norrland), 629 km, Bräcke-Boden through Långsele-Vännäs. f. Nordvästa stambanan (Northwestern main line), 209 km, Laxå-Norwegian border through Karlstad-Kil-. Also these line have for a period been called main lines: a. Mittbanan (Norrland cross line), about 500 km, -Norwegian border through Ånge-Östersund. b. Inlandsbanan, about 1300 km, Kristinehamn-Gällivare through Mora-Östersund.

Figure 3.9 Railway Map of Sweden Source: www.banverket.se

46 b. The Stations In table 3.5 bellow, there are some railway stations in Sweden. Unfortunately, the data is not enough to explain more about station condition. In general, the operation of stations is not the responsibility of SJ but municipality and government board (banverket). Some of these station buildings are owned by private. From the observation, the overall condition of station is already suitable with technical standard and specification in related regulation.

Table 3.5 Railway Station in Sweden Station City Municipality Opened Abisko turist station Abisko Abisko östra Abisko Kiruna Alingsås Alingsås Alingsås Alvesta Alvesta Älvsbyn Älvsbyn Älvsbyn Ånge Ånge Ånge Ängelhom Ängelhom Ängelhom Âre Âre Âre Arlanda central station Arlanda Sigtuna Arvika Arvika Arvika Avesta-Krylbo Avesta Avesta Bastruträsk Bastruträsk Norsjö Bergasa Karlskona Karlskona Björkliden Björkliden Kiruna Boden central station Boden Boden Bollnäs Bollnäs Bollnäs Borlänge central station Borlänge Borlänge Bräcke Bräcke Bräcke Bräkne-Hoby Bräkne-Hoby Ronneby Bromölla Bromölla Bromölla Charlottenberg Charlottenberg Eda October 3, 1862 Degerfors Degerfors Degerfors Duved Duved Âre Ed Ed Dals-Ed Emmaboda Emmaboda Emmaboda Enköping Enköping Enköping Eskiltuna central station Eskiltuna Eskiltuna Falkenberg Falkenberg falkenberg Falköping central station Falköping Falköping central station Falun Falun Fjällåsen Fjällåsen Kiruna Flemingsberg Flemingsberg Huddinge Flen Flen Flen Gällivare Gällivare Gällivare Gävle central station Gävle Gävle 1877 Gothenburg central station Gothenburg Gothenburg October 4, 1858

47 Continued Table 3.5 Station City Municipality Opened Halmstad central station Halmstad Halmstad Härnösand Härnösand Harnosand Hässleholm central station Hässleholm Hässleholm Helsingborg central station Helsingborg Helsingborg Herrljunga Herrljunga Herrljunga Höör Höör Höör Hudiksvall Hudiksvall Hudiksvall Jönköping central station Jönköping Jönköping Jörn Jörn Skellefteå Kalmar central station Kalmar Kalmar Karlshamn Karlshamn Karlshamn Karlskona central station Karlskona Karlskona Karlstad central station Karlstad Karlstad 1869 Katrineholm central station Katrineholm Katrineholm Katterjåkk Katterjåkk Kiruna Kil Kil Kil Kiruna central station Kiruna Kiruna Knivsta Knivsta Knivsta Köping Köping Köping Kristianstad central station Kristianstad Kristianstad Kristinehamn Kristinehamn Kristinehamn Kungsbacka Kungsbacka Kungsbacka Läggesta Mariefred Strängnäs Låktatjåkka Låktatjåkka Kiruna Laxå Laxå Laxå Leksand Leksand Leksand Linköping central station Linköping Linköping 1872 Liseberg Gothenburg Gothenburg 1993 Ljusdal Ljusdal Ljusdal Luleå central station Luleå Luleå central station Lund Lund 1858 Malmö central station Malmö Malmö 1856 Märsta Märsta Sigtuna Mellansel Mellansel Örnsköldsvik Mjölby Mjölby Mjölby Mora Mora Mora Morjärv Morjärv Kalix 1910 Mörrum Mörrum Karlshamn Motala central station Motala Motala Murjek Murjek Jokkmokk Nässjö central station Nässjö Nässjö Norrköping central station Norrköping Norrköping 1866 Nyköping central station Nyköping Nyköping Örebro central station Örebro Örebro 1862 Östersund central station Östersund Östersund Riksgränsen Riksgränsen Kiruna Ronneby Ronneby Ronneby Sala Sala Sala Sandviken Sandviken Sandviken

48 Continued Table 3.5 Station City Municipality Opened Söderhamn Söderhamn Söderhamn Södertälje centrum Södertälje Södertälje Södertälje syd lower Södertälje Södertälje Södertälje hamn Södertälje Södertälje Södertälje syd upper Södertälje Södertälje January 4, 1995 Sölvesberg Sölvesberg Sölvesberg Stockholm central station Stockholm Stockholm July 18, 1871 Stockolms sodra Stockholm Stockholm 1860 Storlien Åre 1886 Strängnäs Strängnäs Strängnäs Sunderby sjukhus Luleå Luleå Sundsvall central station Sundsvall Sundsvall Tierp Tierp Tranås Tranås Tranås Trollhätan Trollhätan Trollhätan Uddevalla central station Udevalla Udevalla Umeå central station Umeå Umeå Uppsala Uppsala 1866 Vänersborg central station Vänersborg Vänersborg Vännäs Vännäs Vännäs Varberg Varberg Varberg Värnamo Värnamo Värnamo Västerås central station Västerås Västerås Västervik Västervik Västervik Växjö Växjö Växjö Vindeln Vindeln Vindeln Source: Banverket c. The Vehicles For the operation, SJ divided their fleet (train) into three types, there are: 1. Double-decker trains SJ has 24 double-decker trains especially for regional service with frequent stop. 2. X 2000 offers the highest level of comfort and is the mainstay of our long- distance rail services in Sweden. The standard and equipment of the trains make it possible to utilize the time onboard efficiently. Forty X 2000 trains operate primary on the Stockholm-Gotenborg, Stockholm-Malmo, Stockholm-Sundsvall, and Stockholm-Karlstad routes. 3. InterCity and Night Trains Classic trains for inter-regional travel day and night. InterCity trains operate on medium-distance routes. All of them include a bistro carriage and on some routes a

49 movie and family carriage. SJ Night trains concept includes overnight accommodations, which gives travelers the opportunity to relax with entertainment alternatives en route. Night trains offer different levels of comfort, including sleeper and couchette carriages with your own or a shared compartment. Combinations of 113 engines and 524 carriages as well as 156 sleeper and couchette carriages are adapted to demand on each route. d. Cost & Fare Payment SJ’s prices are determined based on supply and demand. It is cheaper to book a ticket when there are a lot of seats available and more expensive when the train is nearly full. A simple way to travel less expensively is to choose a less popular departure. If passenger have to travel at a certain time, it is important to book in advance. If passenger reserve a ticket 90 days before departure, passenger can travel anywhere in Sweden at a low price. The price then goes up each day passenger get closer to departure, depending on how full the train gets. Even if passenger book the last minute, there is a chance to find cheap tickets. Two days before departure the last tickets are auctioned off at an opening bid of one krona. The auction is open for bids until six hours before the train is scheduled for departure. SJ’s pricing model gives as many people as possible the opportunity to take the train. That’s because SJ trains are better filled, and a full train is more profitable than one that is half full. Being profitable means SJ can reduce passenger prices even more. For fare payments, to take advantage of SJ offers, customers need easy access to SJ sales locations. Distribution is designed with four watchwords in mind: simplicity, accessibility, cost efficiency and proximity. Tickets are sold through both manual and electronic channels. Manual sales are handled by SJ sales outlets, contact center and to a lesser extent onboard trains. Some of SJ trips and options are also sold through travel agencies and Pressbyrån/7-Eleven stores, making them even more widely available. SJ have 32 stores and around 400 retailers. Electronic sales are handled through ticket machines and SJ’s website. In 2009, SJ launched a web solution that allows customers to buy tickets by mobile phone. Some customers want to be able to travel without a ticket. In addition to mobile phone tickets, SJ offer three alternatives. In Mälardalen, passengers can travel ticket-free with a TiM-

50 Resekort. Membership in the SJ Prio customer loyalty program or an ID card also allows them to travel without a ticket. SJ large corporate customers can use a special website to easily find customized solutions. Customer also have access to simplified invoicing routines and travel statistics. About 85 percent of SJ sales volume is through four main channels: (www.sj.se), travel agencies, the contact center and SJ’s Resebutik outlets. The Internet is clearly the largest sales channel, with about 40 percent of total sales, and at the same time the fastest growing. In the future, self- service options are expected to continue to grow, especially among commuters.

3.6 Customer Satisfaction Index in Statens Järnvägar (SJ) AB, Sweden This part describes the existing condition of Statens Järnvägar (SJ) AB service performance. Data were obtained from document review, such as SJ Annual Report 2001 until 2008. These documents were obtained officially from Statens Järnvägar (SJ) AB. SJ AB puts great emphasis on listening to its customers. SJ AB wants to know what their customers think of SJ and what SJ can do to improve customer travel experience. SJ AB invests heavily in measuring customer attitudes annually via Customer Satisfaction Index (CSI). The index is based on questions put to customers while traveling onboard SJ train, an approach that their belief best captures the full range of feeling and attitudes towards SJ services. The survey measures satisfaction with SJ as a company and their products and services, as well as their success in meeting customer expectations.

Table 3.6 Customer Satisfaction Index in SJ AB, Sweden Customer Satisfaction Index – SJ AB 2006 2007 2008 Comfort 71 73 72 Information 73 75 76 Punctuality 63 61 59 Customer care 73 74 73 CSI Total 1) 71 73 73 1) Each question is asked separately, including the “Overall SCI for SJ” metric. Source: SJ Sustainability Report 2008 (www.sj.se)

From table 3.6 above, it can be seen that in 2008 the overall CSI was 73, which respondents to a rating of “Good”. Onboard comfort has a big impact on customer satisfaction. Comfort includes basic questions like whether a train is clean,

51 comfortable and in good working order, and whether there are working toilettes and adequate luggage space. The current customer rating for onboard comfort is 72. The data has held steady at a satisfactory level for the three years. Onboard customer care is another key component to of customer satisfaction. SJ customer care rating of 73 in the CSI has held steady in the recent years. Clear and readily available travel information is a vital service to customers. With regard to information provided onboard trains, SJ improved their CSI value in 2008 (76) compared to 2007 (75). In the case of traffic delays, it is particularly important to quickly inform passengers of the underlying cause, whether further delays are expected and how their connection are affected. In such instances, it is important that SJ staffs are visible and available to answer question. As an element in providing better information, SJ equipped all train attendants with new handheld computers in 2008. Linked to traffic centers locally and nationally, they allow attendants to keep track of delays and other traffic disruptions. Information can then be passed on to customers, including the length of the delay, the availability of replacement services and other connections. In 2008, SJ also improved its cooperation with Banverket in the area of traffic information, including announcements at stations and on trains. This will provide greater clarity for travelers and help to ensure that SJ always provide accurate, up-to-date information. SJ continuously reviews traffic information, and www.sj.se is becoming an increasingly important tool in this work. Punctuality is SJ principal quality metric. In 2008 average punctuality, measured as the percentage of trains arriving at their destination within five minutes of the scheduled time, was 90 percent (90). SJ has ambitious goals with regard to punctuality, which is not yet satisfactory on certain lines.

Table 3.7 Punctuality in SJ AB Sweden Target Punctuality, SJ AB, % 2003 2004 2005 2006 2007 2008 2009 All SJ Trains 1) 92 93 91 90 90 90 93 X 2000 72 81 77 74 74 69 Long distance trains 88 87 84 82 85 85 Regional trains 92 93 91 89 91 91 Commuter train 95 95 95 95 93 94 1) Excluding Stockholmståg. Source: SJ Sustainability Report 2008 (www.sj.se)

52 Many of SJ delays are caused by external factors such as collisions with wild animals, fallen trees and power cuts. Since the rail network is congested, particularly in metropolitan areas at peak times, delays on one line often affect other trains in the system and cause additional delays.

3.7 Complaint handling System in SJ AB, Sweden An effective complaint handling system can be an important quality improvement tool. Many studies emphasize that customer feedback and complaint should be welcomed and encouraged by the service provider because they generate valuable information (Nyer and Gopinath 2005; Reynolds and Harris 2006; Tax and Brown 1998). Unfortunately session interview between researchers with the operator representative in SJ AB have not been realized. Therefore, the information about this item is limited. In this case researchers only use related documents in SJ AB including, General terms and condition for carriage by rail documents (GCC- CIV/PRR), Swedish Rail Carriage Act, and Regulation (EC) No 137 /2007 of the European Parliament and of the Council of 23 October 2007 on rail passengers rights and obligations. When customers were facing the problem in the service of SJ AB as a train operator in Sweden, they could convey their complaint to SJ AB through email, website and customer service. SJ AB recorded and kept the complaint data in the database. Complaints where the customer has requested a response will be responded to within 5 working days of receiving the complaint. In the event a passenger wishes to report a circumstance which entitles him to compensation or assistance pursuant to these General Terms and Conditions (about complaints and settlements of disputes), they should firstly contact the train staff or the staff at staffed points of sale. Where such staff cannot make a decision regarding compensation, the passenger should, not later than within three months, submit his claim to SJ AB's Customer Service or via SJ AB's website (www.sj.se) or otherwise in writing to SJ AB. Agreements regarding compensation entered into between a passenger and train staff or staff at staffed points of sale must be noted on the ticket or otherwise in writing. In the absence of any notation, the party wishing to invoke an agreement must prove the existence and terms of such agreement.

53 The system of customer complaint handling from Statens Järnvägar (SJ) AB, Sweden could be as guidance for PT KAI to implement the process to handling complaint from customer and at least it can decrease the number of complaints about services provided by PT KAI using the effective mechanism of customer complaint handling system.

3.8 Service Guarantee in SJ AB, Sweden A service guarantee is a statement that clarifies what the customers can expect from a service, and what the company will do to rectify the situation if the service does not meet expectations. Travel time guarantee is one of service guarantee. In SJ AB Sweden, this guarantee was based on EU Directive and EC Regulation 1371/2007 that had been amended as of 10th October 2009. The roles of the guarantee in SJ AB Sweden are: 1. A delay of 60-119 minutes grants a 25% refund on the ticket price. 2. A delay of 120+ minutes grants a 50% refund on the ticket price. 3. If you buy your ticket with SJ Prio points, you will receive compensation as per the model above, but in SJ Prio points. 4. Cash compensation replaces credit values. 5. If the delayed journey is a single journey, and the compensation sum (per passenger) is less than SEK 30, no compensation will be paid. If the train delay lasts at least 60 minutes, passengers can claim compensation for: 1. Emergency telephone calls 2. Reasonable added expenses for food and accommodation Travel time guarantee for multi-ticket travelers, the same delay rules apply as for other travelers: 1. Annual pass – The price of the annual pass/240 (25% or 50% of the ticket price, depending on the extent of the delay) 2. Monthly pass – The price of the monthly pass/36 (25% or 50% of the ticket price, depending on the extent of the delay) 3. Annual commuter pass – The price of the annual commuter pass/360 (25% or 50% of the ticket price, depending on the extent of the delay) 4. Period pass 10 trips in 30 days – The price of the period pass/10 (25% or 50% of the ticket price, depending on the extent of the delay)

54 5. There is no lower limit for travel time guarantee compensation for season travelers To apply these guarantee compensation, customers can use official website of SJ AB Sweden or the agent or representative from whom customers bought the ticket. The complaint should be made within three months to SJ AB. SJ AB shall have no liability when the delay, missed connection, or cancellation can be attributed to any of the following causes: 1. Circumstances which are not linked to the operation of the railway which SJ AB could not have avoided or the consequences of which it could not have prevented, even if SJ AB had taken the care dictated by the circumstances; 2. Error or negligence of the passenger; 3. Behavior of a third party which SJ AB could not have been avoided or the consequences of which it could not have prevented, even if SJ AB had taken the care dictated by the circumstances. Another company which uses the same infrastructure shall not be deemed a third party, nor shall the administrator of the infrastructure. SJ AB shall also have no liability when the delay, missed connection or cancellation was known to the passenger, by means of information which he received prior to his purchase of the ticket or when the passenger, notwithstanding the delay or after rebooking arrived at the final destination station on time or subject to a delay not exceeding 60 minutes. The service guarantee policy from Statens Järnvägar (SJ) AB, Sweden, could be used as guidance for PT KAI to implement this policy and at least it can increase customers satisfaction when using train as a transportation choice.

55 CHAPTER 4 RESEARCH METODOLOGY

This chapter presents the research approach used in this study, research flowchart, research design & questionnaire, respondents, study area, research tool, procedure 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.

4.1 Research Flowchart A flowchart for the research must be arranged before, to be able to conduct the research systematically. The function of the flowchart is a navigator, to carry out the research effectively. The flowchart of this research can be seen as below:

Figure 4.1 Research Flowchart

56 4.2 Research Design & Questionnaire The questionnaire was divided into three parts: (1) items measuring satisfaction towards PT KAI services with accessibility of station, availability of parking facilities, fare payment & queuing the ticket, travel time, staff behavior, punctuality, facilities for disabled, security, cleanliness, comfort and complaint handling system. (2) complaint questionnaire to measure factors from service quality factors that influence the passengers to make a complaint, the related item concern about travel time, punctuality, information, cleanness, staff behavior, comfort, fleet availability, security and safety condition on station, and information. (3) Demographics, the questioner item correspondents of age, sex, last education, average wage and frequency of using train transportation. Respondents were asked to rate their satisfaction perception for service given by PT KAI (in parts 1) and also rate their important perception about factors of service quality that influence them to make a complaint (in parts 2). The questionnaires were developed based on Benchmarking in European Service of Public Transport survey’s tool and previous research conducted in Jogjakarta (Liden et al. 2008). These questionnaires use Likert type format. The Likert-type format is designed to allow customers to respond in varying degrees to each item that describes the service. Likert-type scale rate from very bad, bad, neutral, good and very good for questionnaire item in parts 1, and very not important, not important, neutral, important and very important for questionnaire item in parts 2.

4.3 Respondents The respondents are those who use train transportation when this survey was conducted.

4.4 Sample Size According to Gorsuch (1974) standard sample theory suggested that the minimum respondent sample for factor analysis survey is “n = 5 X number of variables in question”. In this research total of question is 20, then n = 5 X 20 = 100 respondents. While Santoso S. (2006) declare that for factor analysis survey, the minimum respondent sample is around 50 to 100 respondents. The total of

57 respondents for this research is 375 respondents consisting of 125 respondents for each class of passengers (commuter class, business class, and executive class).

4.5 Study Area Data collection was conducted in train station from passeengers in Jakarta including Bogor, Tangerang, Bekasi and Depok, Pekalongan and Yogyakarta province.

4.6 Research Tool There are some tools and materials need to be prepared before collecting the data in the field. The tools and materials are: 1. Pen/pencil, clipboard, used to fill in the survey (questionare) forms 2. Personal computer, used to process the data collected 3. Questionare form, used to record the data 4. Camera, used to get a picture in the field.

4.7 Procedure The data were collected via field survey in the station located in Jakarta, Yogyakarta and Pekalongan. Jakarta (Jabodetabek) was chosen for short distance train (commuter train passenger) because in this area there are many passengers using train to commute for their activity. Yogyakarta and Pekalongan were chosen for long distance train (business and executive train passenger). In Yogyakarta and Pekalongan, data were collected at 8-10 in the morning and at 4-7 in the afternoon, because during this time actually business and executive trains usually departed and arrival. For Jakarta area, data were collected during the working hours at around 8 a.m - 4 p.m. In this study, the researcher uses self-rating questionnaire as a data collection method. The respondents were asked to fill out the questionnaire at the train stations. Those who declined to participate in the survey were asked why they had chosen not to participate; the most common reason given was that they did not have time to fill out the questionnaire. Data collection was terminated when the surveyor had reached and collected data from 375 respondents.

58 4.8 Type of Data In this research, the data were divided into secondary data and primary data. 1. Secondary Data The secondary data is data which is collected to support the primary data and as comparison to other studies. The secondary data in this research are obtained from the institution or organizations associated with the research object such as Directorate General of Railways (DGR) Ministry of Transportation, PT. KAI, PT. KA Commuter Jabodetabek (PT. KCJ), Banverket and Statens Järnvägar (SJ) AB, Sweden, both directly go to those offices or through the official website. Secondary data required are as follows: a. Complaint handling management system, service guarantee policies, and service standards associated with the railways services b. Other supporting data about characteristic of service operation such as: railway network, the number of users, the number of stations and fleets, the fare structure, and customer satisfaction index 2. Primary Data The primary data is data which are collected in the field based on the existing and reality condition. This data were conducted by questionnaire survey.

4.9 Data Analysis The aim of this study is to know the service quality attributes that have significant influences on customer satisfaction towards PT KAI Services for Commuter class, Business class, and Executive class, and are there influence between customer satisfactions towards provided service and the desire to do a complaint. Questionnaire is the most common tool to investigate the similar aim. Statistical tools (SPSS) were use for data input and analysis. The data that were collected will be analyzed using statistical method. There are: a. Statistic Deskriptve Analysis, in this statistic analysis, the data will be presented with some simple tables as well as frequency distribution tables, line and/or stick diagram, pie chart, gouph description through modus median, and variation thrugh standard deviation. b. Factor Analysis, this analysis is for finding the factor that has significant influences on customer satisfaction towards PT KAI Services. Analysis are

59 divided into 3 classes of customer, there are; commuter class, business class, and executive class. c. Regression Analysis, this analysis is for finding where there is influence between customer satisfactions towards provided service and the desire to do a complaint.

4.10 Validity and Reliability The principles of validity and reliability are fundamental cornerstones of the scientific method and it is a key concept in quantitative research. Together, they are at the core of what is accepted as scientific proof, by scientist and philosopher alike. Validity measures the extent to which the results of the study measured what they were intended to measure. In the other hand, Reliability measures whether the research is replicable in the similar situations or not.

60 CHAPTER 5 ANALYSIS AND RECOMENDATION

This section contains finding from statistical analysis. Demographic statistics, factor analysis 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.

5.1 Research Result 5.1.1 Steps of Analysis To achieve the prescribed objective, a step of data analysis must be arranged before. Method will perform the following logical steps as schematically shown in figure 5.1.

Figure 5.1 Steps of Analysis

As mentioned before, the aim of this study is to know the service quality attributes that have significant influences on customer satisfaction towards PT KAI services for Commuter class, Business class, and Executive class. In addition, are there influence between customer satisfactions toward provided service and the desire to do a complaint. This step can be used as a navigator, to carry out the research effectively. Details of step can be explained below:

61 1. Step 1: Since respondent profile is very important to know the background and characteristic of the respondents, it is included in the survey forms. These data will be analyzed using statistic descriptive analysis. From this analysis we can understand the data percentage about respondents such as age, sex, education, average income and occupation. 2. Step 2: In this step, by using customer satisfaction questioner (form 1) the researcher wants to analyze the service quality attributes from 20 item questionnaires that have significant influences on customer satisfaction towards PT KAI Services. In this analysis, the researcher also divides customer into 3 classes: commuter, business and executive class. These data will be analyzed using factor analysis. This analysis reduces the attribute space from a larger number of variables to a smaller number of factors. 3. Step 3: After the result of factor that has significant influences to customer satisfactions had been analyzed. The next step is analyzing whether there is influence between customer satisfactions towards provided service (smaller number of factors) and the desire to do a complaint. This data will be analyzed using regression analysis.

5.1.2 Demographic Data Analysis In this section, the results of analyzing demographic questions are given. 6 questions were asked in section (part) 3 of the research questionnaire about the passenger sex, age, education level, job and profession, frequency of travel in month and average income per month. Gender From the demographic data, it can be seen that the proportion of male user for commuter class, business class, and executive class is grater than female user (see table 5.1).

Table 5.1 The Number of Respondent Based on Gender Commuter Class Business Class Executive Class Gender Respondent % Respondent % Respondent % Male 101 80.8 111 88.8 89 71.2 Female 24 19.2 14 11.2 36 28.8 Total 125 100 25 100 125 100 Source: Data Analysis Result, 2010

62 From the data, it can be seen that approximately 81 % male users choose commuter class. This also may mean that because male is the main breadwinner for their families, it is logical that most of the commuter train users are males who use these modes to support their daily work activities. Meanwhile for long distance train, from 125 respondents for each class (business and executive class) 11,2 % female passengers are opt for business class and 28.8 % for executive class. The reason for this is that executive class is mainly safer and more secure than business class, so it make them comfortable to use this class. Age In this research, the respondents are classified into the age range of <20, 21– 30, 31–40 and >41 years old. The proportion of respondents based on age can be seen in table 5.2 below.

Table 5.2 The Number of Respondent Based on Age Commuter Class Business Class Executive Class Age Respondent % Respondent % Respondent % < 20 years 12 9.6 8 6.4 7 5.6 21 – 30 years 99 79.2 89 71.2 36 28.8 31 – 40 years 13 10.4 26 20.8 72 57.6 > 41 years 1 0.8 2 1.6 10 8 Total 125 100 125 100 125 100 Source: Data Analysis Result, 2010

As can be noticed, passengers between 21-30 years old are mostly opt for commuter and business class, while for executive class is 31-40 years old (57,6%). Educational Level The respondents are classified based on the level of education such as: less and equal high school degree, Diploma (D11-D3), Bachelor (S1) and Post Graduate.

Table 5.3 The Number of Respondent Based on Educational Level Commuter Class Business Class Executive Class Education Level Respondent % Respondent % Respondent % High School 105 84 63 50.4 12 9.6 Diploma(D1 – D3) 8 6.4 40 32 26 20.8 Bachelor (S1) 12 9.6 22 17.6 81 64.8 Post Graduate - - - - 6 4.8 Total 125 100 125 100 125 100 Source: Data Analysis Result, 2010

63 From table 5.3, most of the respondents for executive class have Bachelor (S1) degree (64,8 %), followed by Diploma (D1-D3) (20,8 %), a less and equal high school (9,6 %) and Post Graduate (4,8%). Most of the executive train class users are those who have higher educational level. It is reasonable that the higher educational level, the higher the opportunity to get the better job and income. Occupation Of 375 respondents who answered this question, the occupation of respondents for all class (commuter, business and executive class) was dominated by private employee/businessman followed by civil servant/TNI/Polri, Students and other profession. (See in table 5.4).

Table 5.4 The Number of Respondent Based on Occupation Commuter Class Business Class Executive Class Profession Respondent % Respondent % Respondent % Civil 22 17.6 29 23.2 32 25.6 Servant/TNI/POLRI Private 92 73.6 89 71.2 82 65.6 Employee/Businessman Students 10 8 6 4.8 11 8.8 Others 1 0.8 1 0.8 - - Total 125 100 125 100 125 100 Source: Data Analysis Result, 2010

Frequently using train From 375 respondents (including commuter, business and executive passenger), 32,8 % use train once/week, twice/week (29,3 %), 3 times/week (1,6 %), 4 times/week (2,7 %), 5 times/week (1,3 %), and for commuter passenger especially those who commuted frequently are 6 times/week (2,4 %) and more than 8 times/week (29,9 %).

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Table 5.5 The Number of Respondent Based on Frequently Using Train Commuter Class Business Class Executive Class Total Frequently Respondent % Respondent % Respondent % Respondent % 1 time/month - - 40 32 83 66.4 123 32.8 2 time/month - - 81 64.8 29 23.2 110 29.3 3 time/month - - 1 0.8 5 4 6 1.6 4 time/month 2 1.6 2 1.6 6 4.8 10 2.7 5 time/month 3 2.4 1 0.8 1 0.8 5 1.3 6 time/month 8 6.4 - - 1 0.8 9 2.4 >8 time/month 112 89.6 - - - - 112 29.9 Total 125 100 125 100 125 100 375 100 Source: Data Analysis Result, 2010

Level of Income As can be noticed for long distance train, comparison results are based on the level of income for business and executive class. The average income between 1.000.001-2.000.000 are consisting the most for business class (81,6%), while for executive class the average income is 2.000.001-3.000.000 (59,2%), it is very logical considering that this class is mainly intended for the better of class in society.

Table 5.6 The Number of Respondent Based on Level of Income Commuter Class Business Class Executive Class Level of Income Respondent % Respondent % Respondent % < 1.000.000 69 55.2 12 9.6 5 4.0 1.000.001-2.000.000 46 36.8 102 81.6 28 22.4 2.000.001-3.000.000 7 5.6 11 8.8 74 59.2 > 3.000.000 3 2.4 - - 18 14.4 Total 125 100 125 100 125 100 Source: Data Analysis Result, 2010

On the other hand, the most proportion of respondents for short distance train (commuter train) have the income level per month is < 1.000.000 (55,2 %). Therefore, it is reasonable if they choose commuter train than other transportation mode to support their daily activities because of its cheaper and more affordable tariff.

5.2 Service Performance Analysis This part describes the existing condition of PT KAI service performance. The exiting condition data is gained from customer satisfaction survey held in Jakarta, Pekalongan and Yogyakarta. Jakarta (Jabodetabek) was chosen for commuter train

65 passenger because in this area there are many passengers using train to commute for their activity. Yogyakarta and Pekalongan were chosen for business and executive train passengers. This part also compares the operational service in case project description between PT KAI and Statens Järnvägar (SJ) AB, Sweden. For the first parts, the total respondents for this research are 375 which is divided into 3 classes; commuter for short distance train, business and executive for long distance train, each class consist of 125 respondents. Statistical tools of Microsoft excel and SPSS were used for data input and analysis. Data Analysis was conducted in descriptive analysis test, descriptive statistic was conducted to perform in order to examine respondents’ perceived satisfaction on observed variable, general satisfaction and service attributes that given by PT KAI. Descriptive analysis step, means and number of valid response (in Appendix 2) were summarized in table 5.7.

Table 5.7 Distribution of Satisfaction Responses Attributes of service VB B N G VG (Satisfaction) N % N % N % N % N % General satisfaction 2 0,5 31 8,3 296 78,9 37 9,9 9 2,4

Accessibility of station 4 1,1 25 6,7 193 51,5 128 34,1 25 6,7 Availability of parking facilities 8 2,1 89 23,7 195 52 69 18,4 14 3,7 Ticket price 7 1,9 98 26,1 191 50,9 71 18,9 8 2,1 Fare payment 4 1,1 26 6,9 156 41,6 139 37,1 50 13,3 Queuing the ticket 7 1,9 69 18,4 223 59,5 70 18,7 6 1,6 Safe station 8 2,1 71 18,9 199 53,1 84 22,4 13 3,5 Cleanliness 16 4,3 126 33,6 179 47,7 51 13,6 3 0,8 Safety & security equipment 17 4,5 140 37,3 171 45,6 42 11,2 5 1,3 Safety information 52 13,9 175 46,7 116 30,9 26 6,9 6 1,6 Facilities for disabled 45 12 213 56,8 87 23,2 25 6,7 5 1,3 Comfort ness 28 7,5 103 27,5 144 38,4 89 23,7 11 2,9 Security on train 85 22,7 175 46,7 82 21,9 31 8,3 2 0,5 Train condition 38 10,1 102 27,2 174 46,4 55 14,7 6 1,6 Appearance of service personal 1 0,3 5 1,3 139 37,1 201 53,6 29 7,7 Staff behavior 2 0,5 16 4,3 271 72,3 75 20 11 2,9 Readiness to help passenger 2 0,5 50 13,3 262 69,9 55 14,7 6 1,6 Availability of train fleet 5 1,3 58 15,5 204 54,4 95 25,3 13 3,5 Punctuality 5 1,3 34 9,1 206 54,9 118 31,5 12 3,2 Travel time 8 2,1 70 18,7 205 54,7 81 21,6 11 2,9 Complaint handling system 14 3,7 134 35,7 186 49,6 28 7,5 13 3,5 Source: Data Analysis Result, 2010 VB : Very Bad N : Neither bad or good VG : Very Good B : Bad G : Good N : Number of Respondent

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From the descriptive statistic analysis table above, we can see from general satisfaction that 78,9 % customer of PT KAI (train passenger) is almost satisfied “neither bad or good” with the service and only 2,4 % of customer felt that service that given by PT KAI is very good. From the central tendency finding, it can be concluded that respondents are not satisfied with the quality of service. This indicates that the quality of railway service is under passengers’ expectation. This means that the level of service given by PT KAI as a train operator in Indonesia is still low. For the seconds parts of the comparison of services, from previous chapter (chapter 4), we can see the differences of the operational service between PT KAI and Statens Järnvägar (SJ) AB, Sweden. The overall explanation of service can be compared and seen in the following table:

Table 5.8 Comparison in Services Section PT Kereta Api Indonesia Statens Järnvägar (SJ) AB, Sweden Railway Network Owned by government Owned by government (Directorate General of (Banverket) Railway) Stations - The condition of - Overall condition of emplacement in some station is already suitable station is lower than the with the technical standard train entrance door and and specification in some in the same level related regulation. with train entrance door. - In general, the operation - The station is become of stations is not the responsible of PT KAI responsibility of SJ but (DAOPS/DIVRE). that of municipality and government board (banverket). The Fleets - Consists of electrical & - Consists of electrical & diesel locomotive train. diesel locomotive train - Is divided into three - Is divided into two classes; classes; economic, the first class & the second business, and executive class. class.

67 Continued Table 3.5 Section PT Kereta Api Indonesia Statens Järnvägar (SJ) AB, Sweden Cost & Fare payments - Tariff for train - SJ’s prices are determined transportation is based on supply and differentiated by origin- demand. destination and type of - Tickets are sold through service. both manual and electronic - Customers can buy the channels. ticket through both manual and electronic channels.

From the table above, it can been seen that both PT KAI and Statens Järnvägar (SJ) AB, Sweden do not have responsibility for the railway networks because it is owned by government--DGR for Indonesian railway and Banverket for Sweden railways.

5.3 Customer Satisfaction Analysis In this section, the results of Factor Analysis are given. This analysis is for finding the factor from service quality attributes that have significant influences on customer satisfaction towards PT KAI Services. Analysis are divided into 3 classes of customers, there are: commuter class, business class, and executive class. Analyses were carried out by examining KMO and Bartlett’s tests. In addition, KMO measures of sampling adequacy is an index that is used to examine the relevance of factor analysis, by considering KMO value as follows: a. KMO value = 1 means that correlation between variable pairs is perfect b. KMO value ≥ 0,5 means that correlation between variable pairs can be analyzed c. KMO value < 0,5 menas that correlation between pairs of variables can not be explained by other variables and factor analysis is not appropriate In Bartlett's Test of Sphericity, by observe a number of significance at level 0,05 or 5 %. If significant value greater than 0,05 (sig. > 0,05) it is means the result not significant, then the population correlation is identity matrix. But if significant value is less than 0,05 (sig. < 0.05) it is means the results is significant, then the population correlation is not identity matrix, in other word variable is correlated in the population (Supranto,2004).

68 The next step is to determine the appropriate variable by looking at MSA (Measure of Sampling Adequacy) value ranging from 0 until 1, with the criteria: a. MSA value = 1, variable can be predicted without error by other variable b. MSA value ≥ 0,5 , variable can still be predicted and also can be analyzed c. MSA value < 0,5 , variable can not be analyzed Principal component analysis with VARIMAX rotation and selection of factor based on the Kaiser criterion was carried out. Principle component 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.

5.3.1 Analysis Factor Commuter Class Analysis Factor 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. For this class, in the first analysis, there are attributes that have MSA value less than 0,5 (MSA < 0,5) that is accessibility of station and readiness to help passenger, for that reason according to provision on above, these attributes can not be analyzed and must be excluded from analysis. After the variable has been excluded, the next step is doing factor analysis without these variables. From table 5.9 below, it can be seen that KMO value for commuter class is 0.753 (bigger than 0.5) and approximation chi-square is 421.079 with degrees of freedom 153, significant at alpha level 0,05, in this test sig. value is 0,000 ( sig < 0,05). According to the value of KMO and Bartlett’s test, then the data can be analyzed further.

Table 5.9 KMO and Bartlett's Test (Commuter Class) Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.753 Bartlett's Test of Sphericity Approx. Chi-Square 421.079 Df 153 Sig. 0.000 Source: Data Analysis Result, 2010

69 The next step is to determine the appropriate variable by looking at MSA (Measure of Sampling Adequacy) value ranging from 0 until 1, with the criteria that can be seen in the previous explanation. It can be seen from the Anti image correlation table (in appendix 3, commuter class), there is no MSA value (“a” marked, the diagonal from top left to bottom right) that less than 0,5 (< 0,5). This shows that these variables can be analyzed further. Principle components analysis was used since the primary purpose was to identify and compute composite coping scores for the factors underlying the short version of the attributes service quality. Principal component analysis with VARIMAX rotation and selection of factor based on the Kaiser criterion was carried out.

Table 5.10 Rotated Component Matrixa,b (Commuter Class) Component 1 2 3 4 5 6 Safety information 0.76 Facilities for disabled 0.75 Security on train 0.68 Cleanliness 0.71 Safe equipment 0.44 Complain system 0.67 Price 0.46 Queuing the ticket 0.75 Train condition 0.45 Punctuality 0.64 Comfort 0.39 Availability of parking 0.86 Staff appearance 0.56 Safe station 0.81 Availability of train 0.54 Travel time 0.41 Fare payment 0.77 Staff behavior 0.65 a. Rotation converged in 7 iterations. b. Only cases for which Type = Commuter Class are used in the analysis phase. Source: Data Analysis Result, 2010

70 From table 5.10, the analysis result for commuter class is in six factors solutions. The newly formed sixth factors can be seen from the variable that has eigenvalue greater than 1 (> 1), which explained 57,95 % of the variance (in appendix 3, commuter class). A factor analysis with six factors revealed the following. Attributes with bigger factor score weights are shown below: Factor 1: - Safety information for passenger on board and off board, facilities for disabled, and security on the train. Factor 2: - Cleanliness of the train & station, safety & security equipment, and complaint-handling system adopted on train. Factor 3: - Ticket price, queuing the ticket, physical condition of the train, and punctuality when using train. Factor 4: - Availability of parking facilities at station, appearances of service personal, and the comfort in using train Factor 5: - Security while waiting at/leaving the station, availability of train fleet, and travel time when using train. Factor 6: - Fare payment, and staff behavior.

Business Class For this class, in the first analysis there are attributes that have MSA value less than 0,5 (MSA < 0,5) that is availability of parking, for that reason according to provision on above, these attributes can not be analyzed and must be excluded from analysis. After the variable has been excluded, the next step is doing factor analysis without these variables. From table 5.11 below, it can be seen that KMO value for commuter class is 0.614 (bigger than 0.5) and approximation chi-square is 425.947 with degrees of freedom 171, significant at alpha level 0,05, in this test sig. value is 0,000 ( sig < 0,05). According to the value of KMO and Bartlett’s test, then the data can be analyzed further.

71 Table 5.11 KMO and Bartlett's Test (Business Class) Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.614 Bartlett's Test of Sphericity Approx. Chi-Square 425.947 Df 171 Sig. 0.000 Source: Data Analysis Result, 2010

The next step is to determine the appropriate variable by looking at MSA (Measure of Sampling Adequacy) value ranging from 0 until 1, with the criteria can be seen in the previous explanation. It can be seen from the Anti image correlation table (in appendix 3, business class), there is no MSA value (“a” marked, the diagonal from top left to bottom right) that less than 0,5 ( < 0,5). This shows that these variables can be analyzed further.

Table 5.12 Rotated Component Matrixa,b (Business Class) Component 1 2 3 4 5 6 7 Comfort 0.49 Fare payment 0.68 Punctuality 0.66 Travel time 0.78 Cleanliness 0.65 Complain system 0.76 Safe information 0.58 Facilities for disabled 0.55 Price 0.53 Safe station 0.16 Availability of train 0.84 Readiness to help 0.72 Staff appearance 0.53 Staff behavior 0.77 Security on train 0.51 Train condition 0.79 Safety equipment 0.73 Accessibility of station 0.77 Queuing the ticket 0.70 a. Rotation converged in 11 iterations. b. Only cases for which Type = Business Class are used in the analysis phase. Source: Data Analysis Result, 2010

72 From table 5.12, the analysis result for business class is in seven factors solutions. The newly formed seventh factors can be seen from the variable that has eigenvalue greater than 1 (> 1), which explained 61,90 % of the variance (in appendix 3, business class). A factor analysis with seven factors revealed the following. Attributes with bigger factor score weights are shown below: Factor 1: - Fare payment, the comfort in using train, punctuality, and travel time. Factor 2: - Cleanliness of the train & station, safety information for passenger on board and off board, complaint handling system. Factor 3: - Ticket price, security while waiting and leaving the station, facilities for disable, and availability of train fleet. Factor 4:- Appearances of service personal, staff behavior, and readiness to help passenger. Factor 5: - Security on train, and physical condition of the train. Factor 6: - Safety & security equipment in train or station. Factor 7: - Queuing the ticket, and accessibility of station.

Executive Class From table 5.13 below, it can be seen that KMO value for executive class is 0.710 (bigger than 0.5) and approximation chi-square is 450.484 with degrees of freedom 190, significant at alpha level 0,05, in this test sig. value is 0,000 ( sig < 0,05). According to the value of KMO and Bartlett’s test, then the data can be analyzed further.

Table 5.13 KMO and Bartlett's Test (Executive Class) Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.710 Bartlett's Test of Approx. Chi-Square 450.484 Sphericity Df 190 Sig. 0.000 Source: Data Analysis Result, 2010

The next step is to determine the appropriate variable by looking at MSA (Measure of Sampling Adequacy) value ranging from 0 until 1, with the criteria seen in the previous explanation. It can be seen from the Anti image correlation table (in appendix 3, executive class), there is no MSA value (“a” marked, the diagonal from

73 top left to bottom right) that less than 0,5 (< 0,5). This shows that these variables can be analyzed further.

Table 5.14 Rotated Component Matrixa,b (Executive Class) Component 1 2 3 4 5 6 7 Comfort 0.64 Staff appearance 0.56 Queuing the ticket 0.59 Punctuality 0.66 Cleanliness 0.75 Safe station 0.76 Fare payment 0.54 Safety equipment 0.58 Availability of train 0.67 Facilities for disabled 0.37 Accessibility of station 0.46 Safety information 0.85 Security on train 0.53 Complain system 0.66 Parking facilities 0.51 Staff behavior 0.82 Train condition 0.86 Travel time 0.66 Readiness to help 0.44 Price 0.74 a. Rotation converged in 21 iterations. b. Only cases for which Type = Executive Class are used in the analysis phase. Source: Data Analysis Result, 2010

From table 5.14, the analysis result for executive class is in seven factors solutions. The newly formed seventh factors can be seen from the variable that has eigenvalue greater than 1 (> 1), which explained 60,317 % of the variance (in appendix 3, executive class). A factor analysis with seven factors revealed the following. Attributes with bigger factor score weights are shown below : Factor 1: - Queuing the ticket, cleanliness of the train & station, the comfort in using train, appearances of services personal, and punctuality.

74 Factor 2: - Fare payment, security while waiting at/leaving the station, safety & security equipment in train or station, facilities for disabled, availability of train fleet, and accessibility of station. Factor 3: - Safety information for passenger on board and off passenger, security on the train, and complaint handling system. Factor 4: - Staff behavior, and availability of parking facilities at station. Factor 5: - Physical train condition. Factor 6: - Travel time and readiness to help passenger. Factor 7: - Ticket price.

5.3.2 Interpretation of Factors By looking the highest correlation value between early variables with latent factors, it will get a new factor that is the aggregation of previous variable. In other words, from 20 variables, after the initial stages of factoring and rotation there will be 6 factors (Commuter class) and 7 factors (Business and Executive class) that consist of several variables factor. Next steps, by looking at the variables that make up each of these latent factors, then it can be given a new name to simplify the interpretation process. According Dillon (1984), naming of factor is based on value (λ) of the largest variable factor. If two or more variables have the same value (λ), then the process for giving the name is based on priority (1,2,3…), but if the variable is derived from the same attributes, the naming of factor is equal with the name from attributes factor.

75 Table 5.15 Service attribute that use in factor analysis Variable Question Service attribute X1 Accesibility of station (railway station should be Service coverage easy to access/integrated system)? X2 Availability of parking facilities at station Tangible Ticket price Cost X4 Fare payment Cost X5 Queuing the ticket Service coverage X6 Security while waiting at/leaving the station Safety & security X7 Cleanliness of the trains & station Appearances X8 Safety & security equipment in train or station (fire Safety & security extinguisher,hammer & first aid) X9 Safety information for passenger on board and off Information board X10 Facilities for disabled (toilet, special seat, Tangible wheelchair space) X11 The comfort in using train transportation Comfort (appropriate climate control (air conditioner, heater, fan), seat comfort, and ride comfort) X12 Security on the train (become a victim of crime Safety & security “pickpocket”) X13 Physical condition of the train so far (AC, fan, seat Tangible & toilet condition) X14 Apperances of services personal (how they Appearances look/uniform) X15 Staff behaviour Comfort X16 Readiness to help passenger Comfort X17 Availability of train fleet (many operated fleets & Scheduling high frequency of fleet) X18 Punctuality in using train transportation Reliability X19 Travel time when using train Travel time X20 Complaint handling system adopted on train Information transportation (in train & in the station)

In this research, the naming process (interpretation process) is done by identifying the variables that have a high factor loading value. From the analysis results, service attribute/variable that has a high factor loading value for each class of train transportation can be seen in explanation below:

Commuter class Service attribute that has a high factor loading value for commuter class are: 1. Safety information for passenger on board and off board is related to “Information” attribute. 2. Cleanliness of the trains & station is related to “Appearances” attribute. 3. Queuing the ticket is related to “Service coverage” attribute.

76 4. Availability of parking facilities at station is related to “Tangible” attribute 5. Security while waiting at/leaving the station is related to “Safety & security” attribute. 6. Fare payment is related to “Cost” attribute. For the next steps, this factor can be arranged for knowing service quality attributes that have significant influences on customer satisfaction towards PT KAI Services for commuter class passenger, the rank can be seen below: 1. Factor 1 : Information 2. Factor 2 : Appearances 3. Factor 3 : Service coverage 4. Factor 4 : Tangible 5. Factor 5 : Safety & security 6. Factor 6 : Cost Based on that rank, factors that have significant influences on customer satisfaction for commuter class is Information, followed by Appearances, Service coverage, Tangible, Safety & security, and Cost.

Business Class Service attribute that has a high factor loading value for business class are: 1. Travel time when using train is related to “Travel time” attribute. 2. Complaint handling system adopted on train transportation (in the station) is related to “Information” attribute. 3. Availability of train fleet (many operated fleets & high frequency of fleet) is related to “Schedulling” attribute. 4. Staff behaviour is related to “Commfort” attribute. 5. Physical condition of the train so far (AC, fan, seat & toilet condition) is related to “Tangible” attribute. 6. Safety & security equipment in train or station (fire extinguisher,hammer & first aid) is related to “Safety & security” attribute. 7. Accesibility of station (railway station should be easy to access/integrated system) is related to “Service coverage” attribute.

77 This factor can be arranged for knowing service quality attributes that have significant influences on customer satisfaction towards PT KAI Services for business class passenger, the rank can be seen below: 1. Factor 1 : Travel time 2. Factor 2 : Information 3. Factor 3 : Scheduling 4. Factor 4 : Comfort 5. factor 5 : Tangible 6. Factor 6 : Safety & security 7. Factor 7 : Service coverage That rank explains a factor that has significant influences on customer satisfaction for business class is Travel time, followed by Information, Scheduling, Comfort, Tangible, Safety & security and Service coverage factor.

Executive Class Service attribute that has a high factor loading value for executive class are: 1. Cleanliness of the trains & station is related to “Appearances” attribute. 2. Security while waiting at/leaving the station is related to “Safety & security” attribute. 3. Safety information for passenger on board and off board is related to “Information” attribute. 4. Staff behaviour is related to “Comfort” attribute. 5. Physical condition of the train so far (AC, fan, seat & toilet condition) is related to “Tangible” attribute. 6. Travel time when using train is related to “Travel time” attribute. 7. Ticket price is related to “Cost” attribute. For knowing the service quality attributes that have significant influences on customer satisfaction towards PT KAI Services for Executive class passenger, this factor must be arranged based on the interest of attribute, the rank can be seen below: 1. Factor 1 : Appearances 2. Factor 2 : Safety & security 3. Factor 3 : Information 4. Factor 4 : Comfort

78 5. Factor 5 : Tangible 6. Factor 6 : Travel time 7. Factor 7 : Cost For executive class, customers focus more on Appearances, followed by Safety & security, Information, Comfort, Tangible, Travel time and Cost, that can influence their satisfaction on provided services.

5.3.3 Comparison of Factors The previous explanation results of the factors of service quality attributes that have significant influences on customer satisfaction towards PT KAI Services can be clearly identified. There are different results for commuter, business and executive class. The more comprehensive explanation of the results can be seen in this table:

Table 5.16 Comparison Results Factor Commuter Class Business Class Executive Class

Factor 1 Information Travel time Appearances Factor 2 Appearances Information Safety & security Factor 3 Service coverage Scheduling Information Factor 4 Tangible Comfort Comfort Factor 5 Safety & security Tangible Tangible Factor 6 Cost Safety & security Travel time Factor 7 - Service coverage Cost

From table 5.16 above, it can be noted that a factor that has significant influences on customer satisfaction for commuter class is Information. This factor consists of safety information for passenger on board and off board, and complaint- handling system adopted on train transportation. This makes sense because this mode (commuter class) has become the main option for transportation modes to support customer daily work activities especially in urban area. But in fact, the convenience offered by operator is far from expectation, so it may disappoint the users of commuter train. Because of that reason, if customers feel dissatisfied with the provided services from the operator, the operator must provide the media for customers who have complaints to convey their complaint easily.

79 Meanwhile for business class, the first factor is Travel time. There are two conditions that can influence passenger travel time in this research; the waiting time and the vehicle speed. Based on the analysis factor results, this factor becomes the most factor that has significant influences on customer satisfaction for business class passenger because their travel time is less than the travel time using other transportation mode that has similar service for long distance public transportation (Bus). This happens because train is free from traffic jam. For executive class, customers focus more on Appearances. From table 6.6 about level of income, which can be noticed for long distance train, the average income of passengers of executive class is 2.000.001-3.000.000 (59,2%), this result is higher compared to that of business class of long distance train. It is very logical, therefore, that this class is mainly intended for the better class in society. From that explanation, we understand that passengers for this class is concerned with the appearance factor including cleanliness on the trains & stations, also appearances of service personal. This may be because they already pay higher price for this class and expect better service for their comfort. This is called the appearance dimensions.

5.4 Customer Complaint Analysis In this section, the results of Regression analysis are given. Regression analysis examines the strength of a relation between a dependent variable and a number of independent variables, also called explanatory variables. In this research, this analysis is for finding whether there is influence between customer satisfactions towards provided services and the desire to do a complaint. Analysis is also divided into 3 class of customers; commuter class, business class, and executive class. Eq. (1) below describes the linear regression model that is used in this analysis:

Υ = βo+β1χ1+………………..+βnχn+ε (1)

Where: Υ = Dependent variable βo = Constant value β1 – βn = Independent variable coefficient χ1 - χn = Independent variable ε = Error

80 In this analysis, the first step that researcher must do is making a hypothesis. A hypothesis is a preliminary or tentative explanation or postulate by the researcher considering the outcome of an investigation. The entire experiment and research revolves around the research hypothesis (Ha) and the null hypothesis (Ho). Research hypothesis (Ha) is the statement created by the researcher when they speculate upon the outcome of a research or experiment, while the null hypothesis (Ho) is an essential part of any research design, and is always tested, even indirectly. For this analysis, hypotheses are as follows:

Ho1: Simultaneously, there is no influence between customers satisfaction towards provided service attribute and the desire to do a complaint.

Ha1: Simultaneously, there is an influence between customers satisfaction towards provided service attribute and the desire to do a complaint.

Ho2: Partially, there is no influence between customers satisfaction towards provided service attribute and the desire to do a complaint.

Ha2: Partially, there is an influence between customers satisfaction towards provided service attribute and the desire to do a complaint. The second step is doing Z test (Significance test). Z test is used to check whether constant value and model variables for each coefficient are significant in certain significance levels. For Z-Test, the statistic hypothesis are as follows:

Ho: Insignificance coefficient variable (coefficient = 0)

H1: Significance coefficient variable (coefficient > 0) Based on 95% significance level ( = 0.05), Ho is acceptable if the probability levels are more than 0.05 and rejected if less than 0.05. The next step is by looking at the R-square (R2) value. The R2 statistic indicates how much of the variation in the observed data can be explained by the model and how much of the variation that is attributed to error. A value R2 = 0 is equivalent to 2 using only β0 to model the response variable, while R = 1 corresponds to a perfect model that yields exact predictions.

Commuter Class Based on table 5.17 below, it can be seen that sig. value for commuter class passenger is 0.034 (< 0.05). It means that Ho is rejected. Thereby simultaneously,

81 there is an influence between six factors (Information factor, Appearances, Tangible, Service coverage, Safety & security, and Comfort) and the desire to do a complaint.

Table 5.17 ANOVAb Table (Commuter Class) Model Sum of Squares df Mean Square F Sig. 1 Regression 2.044 6 0.341 2.370 0.034a Residual 16.964 118 0.144 Total 19.008 124 a. Predictors: (Constant), Faktor6, Faktor5, Faktor1, Faktor4, Faktor2, Faktor3 b. Dependent Variable: Y

The regression analysis for commuter class satisfaction is conducted to 20 attributes that are categorized into six groups; Information, Appearances, Tangible, Service coverage, Safety & security, and Comfort. The regression equity for commuter class is [Y = 2.657 – 0.042*(Information) + 0.015*(Appearances) + 0.059*(Service coverage) – 0.090*(Tangible) + 0.223*(Safety & security) + 0.100*(Cost)]. The confirmation results of the proposed hypotheses are as follows: X1 (Information): with sig. value 0.493 (> 0.05) and (T- statistics = - 0.687) is rejected and specifies that the Information attributes do not have a significant influence on desire to do a complaint for commuter class passenger. X2 (Appearances): with sig. value 0.820 (> 0.05) and (T- statistics = 0.228) is rejected and specifies that the Appearances attributes do not have a significant influence on desire to do a complaint for commuter class passenger. X3 (Service coverage): with sig. value 0.513 (> 0.05) and (T- statistics = 0.657) is rejected and specifies that the Service coverage attributes do not have a significant influence on desire to do a complaint for commuter class passenger. X4 (Tangible): with sig. value 0.183 (> 0.05) and (T- statistics = - 1.339) is rejected and specifies that the Tangible attributes do not have a significant influence on desire to do a complaint for commuter class passenger. X5 (Safety & security): with sig. value 0.006 (< 0.05) and (T- statistics = 2.787) is confirmed and specifies that the Safety & security attributes have a direct and a significant influence on desire to do a complaint for commuter class passenger. X6 (Cost): with sig. value 0.143 (> 0.05) and (T- statistics = 1.473) is rejected and specifies that the Cost attributes do not have a significant influence on desire to do a complaint for commuter class passenger.

82 As can be seen in the explanation above, partially the five factors (Information factor, Appearances, Service coverage, Tangible, and Cost) that relate to service quality attributes explaining a factor that has significant influence on desire to do a complaint are all rejected, except X5 (Safety & security) is accepted. It shows that Safety & security has a significant influence on desire to do a complaint. It can be interpreted that the service performance for commuter class in the Safety & security attributes by the train operator (PT KAI) is low. The all dimensions explain 11.1 % (R2 = 0.111) of the variance of service quality attribute which influence on desire to do a complaint provided service.

Business Class : The result in Table 5.18 shows that sig. value for business class passenger is

0.038 (< 0.05), meaning that Ho is rejected. Thereby simultaneously, there is an influence between seven factors (Travel time, Information, Scheduling, Comfort, Tangible, Safety & security and Service coverage) and the desire to do a complaint.

Table 5.18 ANOVAb Table (Business Class) Model Sum of Squares Df Mean Square F Sig. 1 Regression 1.869 7 0.267 2.208 0.038a Residual 14.148 117 0.121 Total 16.017 124 a. Predictors: (Constant), Faktor7, Faktor1, Faktor5, Faktor6, Faktor3, Faktor4, Faktor2 b. Dependent Variable: Y

The regression analysis for business class satisfaction is conducted to 20 attributes that are categorized into seven groups; travel time, followed by Information, Scheduling, Comfort, Tangible, Safety & security and Service coverage factor. The regression equation for business class is [Y = 2.459 + 0.054*(Travel time) + 0.128*(Information) + 0.011*(Scheduling) + 0.168*(Comfort) + 0.034*(Tangible) – 0.029*(Safety & security) – 0.16*(Service coverage)]. The confirmation results of the proposed hypotheses are as follows: X1 (Travel time): with sig. value 0.374 (> 0.05) and (T- statistics = 0.893) is rejected and specifies that the Travel time attributes do not have a significant influence on desire to do a complaint for business class passenger.

83 X2 (Information): with sig. value 0.030 (< 0.05) and (T- statistics = 2.200) is confirmed and specifies that the Information attributes have a direct and a significant influence on desire to do a complaint for business class passenger. X3 (Scheduling): with sig. value 0.893 (> 0.05) and (T- statistics = 0.135) is rejected and specifies that the Scheduling attributes do not have a significant influence on desire to do a complaint for business class passenger. X4 (Comfort): with sig. value 0.063 (> 0.05) and (T- statistics = 1.878) is rejected and specifies that the Comfort attributes do not have a significant influence on desire to do a complaint for business class passenger. X5 (Tangible): with sig. value 0.494 (> 0.05) and (T- statistics = 0.063) is rejected and specifies that the Tangible attributes do not have a significant influence on desire to do a complaint for business class passenger. X6 (Safety & security): with sig. value 0.476 (> 0.05) and (T- statistics = - 0.715) is rejected and specifies that the safety & security attributes do not have a significant influence on desire to do a complaint for business class passenger. X7 (Service coverage): with sig. value 0.775 (> 0.05) and (T- statistics = - 0.287) is rejected and specifies that the Service coverage attributes do not have a significant influence on desire to do a complaint for business class passenger. As can be seen in the explanation above, partially the six factors (Travel time, Scheduling, Comfort, Tangible, Safety & security and Service coverage) that relate to service quality attributes explaining a factor that has significant influence on desire to do a complaint are all rejected, except X2 (Information) is accepted. It shows that Information has a significant influence on desire to do a complaint. It can be interpreted that the service performance for business class in the Information attributes by the train operator (PT KAI) is low. The all dimensions explain 11.7 % (R2 = 0.117) of the variance of service quality attribute which influence on desire to do a complaint on provided service.

Executive Class For this class, according to table 5.19, it can be seen that sig. value is 0.189

(> 0.05), meaning that Ho is accepted. Thereby simultaneously, there is not an influence between seven factors (Appearances, Safety & security, Information, Comfort, Tangible, Travel time and Cost) and the desire to do a complaint. It can be

84 interpreted that the executive class passengers are mostly satisfied with the service given by PT KAI.

Table 5.19 ANOVAb Table (Executive Class) Model Sum of Squares Df Mean Square F Sig. 1 Regression 1.552 7 0.222 1.459 0.189a Residual 17.777 117 0.152 Total 19.328 124 a. Predictors: (Constant), Faktor7, Faktor5, Faktor2, Faktor4, Faktor3, Faktor1, Faktor6 b. Dependent Variable: Y

5.5 Recommendation 5.5.1 Complaint Handling System In this research, it can be seen from the questionnaire answers that there are many complaints about the service given by PT KAI. This is because the customers do not get the service that meets their expectation or the service is still far from their expectation. To decrease the number of complaints, some effective mechanisms to handle the complaint must be taken. It is also important to learn from Statens Järnvägar (SJ) AB, Sweden in handling their customer complaints. From the previous chapter (chapter 4), we can see the different mechanism of handling customer complaint between PT KAI and Statens Järnvägar (SJ) AB, Sweden. The explanation of the system can be seen in this table:

Table 5.20 Customer Complaint Policy Section PT Kereta Api Statens Järnvägar (SJ) AB, Indonesia Sweden Commitment to respond No information Good and high motivation complaints Most common complaint Security on train Punctuality of train Media of complaint Hotline number, mailing Hotline number, official list, official website, website, SMS suggestion box Guarantee & compensation No information Give customer compensation (travel time guarantee) : refund on the ticket price (cash compensation), Reasonable added expenses for food and accommodation Promise to respond and No information will be responded to within 5 solve complaints working days of receiving complaints

85 Based on the complaint handling policy of Statens Järnvägar (SJ) AB, Sweden, PT KAI can adopt the process of handling customer complaints. The complaints handling management system that will be applied is underpinned by these guiding principles. 1. Quality improvement – Complaint management is an integral part of the quality improvement approach that has been or will be adopt by PT KAI. 2. Open disclosure – PT KAI has a policy of open disclosure in relation to adverse events and complaints. 3. Commitment – The management of PT KAI should fully commit to an integrated complaint management system and will provide the necessary support for it to operate effectively. 4. Accessibility – PT KAI encourages consumers to give feedback about the service and makes it easy for them to do so. 5. Responsiveness – PT KAI should have a consumer-focused approach, being receptive to complaints and treating complaints seriously. 6. Transparency and accountability – The complaint process is clearly articulated, open and accountable to both staff and consumers. 7. Privacy and confidentiality – PT KAI should respect the privacy and confidentiality of consumers and the information received during the complaints process, while at the same time making its decisions open and accountable. PT KAI as an operator must provide the media for customers who have complaints to convey their complaints easily. Customers could submit or send their complaints to the official website of PT KAI or they can use complaint/suggestion box provided in station, besides the customer service call number that can be viewed inside the train, in station or other place and media. Every complaint through official website, customer service call, letter and email is logged and given a unique reference number, which makes it easy to keep track of. Customers making complaints must be prepared to give their names and contact details for the complaint to be investigated. They will also be given the option of having someone respond to them directly or not. Where the customer has requested a response, they will be informed of the complaint reference number as well as how long they should expect to wait for a response. In accordance with the

86 Privacy Policy, any personal information collected to respond to a complaint will remain confidential and will only be used to help resolve that complaint. When a complaint is logged, it is forwarded to and dealt with by the appropriate area within the PT KAI organization. Complaints where the customer has requested a response will be responded to within 5 working days of receiving the complaint. In the case of complaints concerning emergency situations, the relevant area in PT KAI organization structure will be notified immediately.

5.5.2 Service Standard Design Recommendations of service standard for PT KAI that are carried out in this research were based on questionnaire results about customer satisfaction and complaint in PT KAI services. Similar issue was also carried out by the study against the service standards of Statens Järnvägar (SJ) AB Sweden. In addition to the train passenger responses on provided services, the real condition on field of railway service is a very influential factor in deciding the service standard for this mode. Passenger response and real condition on field will give a benchmark parameter or the extent to which services are provided. Passenger response is the means value of the answer about customer satisfaction towards PT KAI services (very bad, bad, neither bad nor good, good, and very good), while the real condition is a vivid description of the services that seen and felt by researcher directly (primary data) or indirectly (secondary data). The more comprehensive explanation of analysis is shown in this table:

87 Table 5.21 Customer Responses and Real Condition on Field Towards Provided Service Satisfaction results Commuter Class Business Class Executive Class Attributes of service Real condition on field Means Means Means Interpretation Interpretation Interpretation value value value Accessibility of station 3,36 Neither bad nor 3,28 Neither bad nor 3,52 Good - Some stations already have good good interconnection with another mode (integrated mode) - The location of station is near with the city (business area) for example shopping, bus terminal Availability of parking facilities 2,99 Neither bad nor 3,00 Neither bad nor 2,94 Neither bad nor - Not all stations have parking facility, good good good especially in small station (Jabodetabek area) - Stations do not have the exact size (same size area) of the parking facilities. Ticket price 3,02 Neither bad nor 2,99 Neither bad nor 2,78 Neither bad nor - For commuter train, the price is more good good good cheaper than other modes, especially for economy commuter class Fare payment 3,21 Neither bad nor 3,62 Neither bad nor 3,82 Good - For executive and business class, tickets good good can be purchased online. Queuing the ticket 3,14 Neither bad nor 2,89 Neither bad nor 2,96 Neither bad nor - Queuing is still too long especially good good good during peak hours and peak seasons, so that the service is not optimal. Safe station 3,03 Neither bad nor 3,19 Neither bad nor 2,96 Neither bad nor - There is no CCTV in each station good good good - Not all stations have security officers especially for small stations

88 Continued Table 5.21 Satisfaction results Commuter Class Business Class Executive Class Attributes of service Real condition on field Means Means Means Interpretation Interpretation Interpretation value value value Cleanliness 2,62 Neither bad nor 2,65 Neither bad nor 2,93 Neither bad nor - Most of the conditions of station and good good good other facilities are less awakened. Many find rubbish strewn around. Some station have already provided a representative trash, but the number is not comparable with the existing area and their presence is less conspicuous - There is no trash bin in each railway coach. Safety & security equipment 2,50 Bad 2,63 Neither bad nor 2,89 Neither bad nor - There is no emergency window for good good emergency exit and also the glasses breaker (hammer) in each railway coach - Each railway coach has been already equipped by emergency brake, but the condition is very worrying so there is no guarantee if brake still works. - There is no fire extinguisher in each railway coach. - There is no instruction for using safety & security equipment in train and station. - Warning/sanction for the use of emergency tool are also not found in train - There is no medical box (P3K) in each railways coach - Only on big stations, that have safety and security facilities.

89 Continued Table 5.21 Satisfaction results Commuter Class Business Class Executive Class Attributes of service Real condition on field Means Means Means Interpretation Interpretation Interpretation value value value Safety information 2,19 Bad 2,38 Bad 2,49 Bad - Most of trains are not equipped with safety information Facilities for disabled 2,21 Bad 2,34 Bad 2,31 Bad - Very rare facilities for the disabled both at stations and on train, there are only ramp for wheelchairs users. But there are no signs showing the priority for them Security on train 2,04 Bad 1,98 Bad 2,50 Bad - Users have not received guarantees of security and safety in the train - When using the train, there is no security officers in each railway coach - Security controls are also not found Train condition 3,08 Neither bad nor 2,34 Bad 2,69 Neither bad nor - Good condition of train is only for good good executive class and executive commuter class Appearance of service personal 3,29 Neither bad nor 3,72 Neither bad nor 4,00 Good - Almost all employees already use good good uniforms, one thing which needs to be considered is the neatness and the clear identity of employees Staff behavior 3,11 Neither bad nor 3,11 Neither bad nor 3,39 Neither bad nor - Many of employees who do not show good good good hospitality when serving Readiness to help passenger 3,00 Neither bad nor 3,03 Neither bad nor 3,06 Neither bad nor - There is no other officers who serve good good good passengers in train, except the conductor and machinist (train driver) Availability of train fleet 3,04 Neither bad nor 2,93 Neither bad nor 3,46 Neither bad nor - The headway between trains is bad good good good especially for commuter class Punctuality 2,99 Neither bad nor 3,47 Neither bad nor 3,32 Neither bad nor - on time arrival and departure of trains good good good are rare

90 Continued Table 5.21 Satisfaction results Commuter Class Business Class Executive Class Attributes of service Real condition on field Means Means Means Interpretation Interpretation Interpretation value value value Comfort ness 2,34 Bad 2,78 Neither bad nor 3,50 Neither bad nor - The size of waiting room area in each good good stations is not the same (there is no standard for this) - In daytime, lighting is bright enough because almost all stations have an open space area for waiting room. At night, the lighting is not bright enough, only a few locations are bright and not all lights functioning optimally. - The seats are uncomfortable and the treatment is not good (ill-treatment), so many are damaged - There is no priority seats for pregnant woman, disable, and elderly, especially for commuter class - In practice, there is no limit for the number of standing passengers on the train (commuter train), especially during rush hours, so it make the passengers inconvenient - Many passengers are smoking on the train, because there is no rule that prohibits it - Traders hawkers and road musicians are still operating on train and there is no prohibition Travel time 2,72 Neither bad nor 3,30 Neither bad nor 3,11 Neither bad nor - For commuter class, travel time is more good good good better than other mode, because this mode is free from congestion

91 Continued Table 5.21 Satisfaction results Commuter Class Business Class Executive Class Attributes of service Real condition on field Means Means Means Interpretation Interpretation Interpretation value value value Complaint handling system 2,58 Neither bad nor 2,64 Neither bad nor 2,91 Neither bad nor - There is no media for complaints good good good (information to make a complaint) on train - Only a few stations that allows passengers to lodge a complaint (provide a suggestion box)

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After knowing the comparison results of analytical studies of customer satisfaction level towards provided service by PT KAI with the real conditions of service, the next step that will be done is to use the results of the analysis as a basis for preparing and determining minimum service standard for train transportation. As mention in the section of theoretical framework and analysis above, service quality attributes that are used in this research are based on passenger point of view (TRB (2003a)). Those categories are divided into two main groups: availability and convenience & comfort. Parasuraman service quality attributes that are tangible are also used. Details of service standards can be seen below: 1. Service standard for safety and security aspect a. Service standard in Station Officers and their activities (in case only for service standard in Indonesia): 1) Station should be guarded by security officers using shift system, every 8 hours (3-time shift/day), with the number of officer per shift is 12 officers for large stations and 5 – 7 for small stations. 2) The number of officers can be adjusted to the level of activity on the station. 3) Conduct safety and security control of passengers at the station continuously and periodically, every 1 hour. Faccilities and equipment 1) Facilities: a. Availability of security room at each station b. Availability of health room/ P3K room at each station c. Use of video surveillance cameras d. Availability of fire alarm systems 2) Safety equipment: a) Availability of hydrant for bigger stations b) Availability of fire extinguisher 1. Mounted on the wall and sealed, and also marked “only use in case of fire situation“ and “use outside the regulation will be penalized” was can be read clearly and order/message that is sent could be understood by passengers.

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2. Function and could be operated well and truly. 3. Provide information on how to use c) Availability of medical box (P3K), minimum two boxes in each station b. Service standard on train Officers and their activities (in case only for service standard in Indonesia): 1) Each railway coach is on guard by security officers, with the number of officer in each railway coach is two securities. 2) The number of officers can be adjusted to the total of railway coach that operated. 3) Conduct safety and security control of passengers at the train continuously and periodically, during train operation Facilities and equipment: 1) Fire extinguisher must be available 2 units (every railway coach), are placed at the front and behind, and also marked “only use in case of fire situation“ and “use outside the regulation will be penalized” and also provide information on how to use it. It must be concise, so that signs can be read and understood quickly. They must be clear, consistent and unambiguous. Fire extinguisher must function and could be operated well and truly. 2) Emergency brake should be available in every railway coach, and also marked “Emergency brake”, “Only use in emergency situation” and “use outside the regulation will be penalized” and also provide information on how to use. The information must be concise, so that signs can be read and understood quickly. They must be clear, consistent and unambiguous. They must function and could be operated on well and truly. 3) Emergency window for emergency exit should be available 4 units (every railway coach), is placed in the middle and there should be 4 units of the glasses breakers (the hammer) in each emergency window, as well as the notification of how to use it. The words “EMERGENCY WINDOW” shall be placed both inside and outside directly above, on or adjacent to the exit in letters of one and one-half inch minimum height. An arrow of contrasting colour (Red or Black) shall also be placed on the interior and exterior of the window.

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4) Warning Light is very useful to warn passengers and serves as the best prevention to save their life when in danger condition such as because of fire, machine accident, and so on. 5) The first aid kit must be available in every each railway coach and the contents must be adequate for the handling of minor injuries. 6) Pedestrian pathways shall be designed to minimize the crossing of the rail tracks. Fence shall be provided between the tracks to discourage crossing except for at designated locations. 7) Blind spots, tight quarters, alcoves, dark areas, or other design features that could compromise the security of the station shall not be permitted.

2. Service standard for comfort and appearances (cleanliness) a. Service standard in station: 1) Availability of secondary power supply (generators set), in the event of primary power failure. 2) Availability of trash bin in stations, is placed at the strategic location, in the good condition and could be made function and operated on well and truly (the condition for the trash/rubbish must be closed well and when being closed it is not smelly), and also must be controlled by cleaner officer every time. 3) Maintain cleanliness and comfort of station with regular cleaning, at least twice a day. 4) Lighting level should be good and consistent throughout routes used by passengers. No area should be excessively bright or dark. 5) Floor surface should be firm, even, easily cleaned and slip resistant when wet or dry. 6) To allow easy access to the train, the platform height allows step-free access between platform and train. b. Service standard on train: 1) Availability of trash bin in each railway coach (minimum two units), is placed at the front and behind the railway coach, in the good condition and could be made

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function and operated on well and truly (the condition for the trash/rubbish must be closed well and when being closed it is not smelly). 2) The guidance of the priority of seats for the elderly, disable, and pregnant woman (especially for commuter train), must be concise, so that signs can be read and understood quickly. They must be clear, consistent and unambiguous. 3) All service staff should be easily identifiable and present a good image, wearing full uniform including name badges. They should keep customer informed during their journey and help with any problems, should they occur. 4) Standards for loading levels for commuter train (standing passenger in a rush hour). a) COMFORTABLE : 2-3 passenger per 2. UNCOMFORTABLE : 5 passenger per m2 3. UNACCEPTABLE : > 8 passenger per m2

3. Service standard for the availability of information aspects a. Service standard in station: 1) Provide suggestion box and also media information for customers who have complaints such as official website, customer service call number. They must be placed in strategic places in every station. 2) The following information should be provided: a) Safety information and safety instruction b) Warning, prohibition and mandatory actions signs c) Information concerning the departures of train service d) Identifications of stations facilities, where provided, and access routes to those facilities b. Service standard on train: 1) Availability of map of the route as a guidance of the route that is passed through by the train, as well as the name of the station, is placed equitable all over the corner and in the middle of the trains, must be read clearly and order that is sent could be understood by passengers.

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2) Availability of LCD/Liquid Crystal Display screen and the audio of station stop information (especially for commuter train), the voice must be synchronous with the information in LCD screen. 3) For commuter train, information on fares, timetables and route maps must be widely available to the public on a continuous basis. 4) Provide information of customer service number (media information for customers who have complaints) inside the train.

4. Service standard for tangible attributes a. Station provides special facilities for disable passenger, such as special parking facilities, toilets, seats and wheelchair space. b. Seating layouts should allow a wheelchair (disable people) user and a person in adjacent standard seating to sit together and in line with each other. c. Operator should maintain their fleets (train) in a good condition and to high standard of maintenance. Regular inspection should be carried out to ensure these standards are maintained. d. Availability of parking facilities on station

5. Service standard for service coverage attributes a. The station must be attractive, durable, vandal resistant, and easy to maintain. b. Stations must be easy to access and integrated with other mode of transportation. c. At stations with major bus transfer or other intermodal facilities, the stations shall be designed to include a transit center component. This shall include an indoor waiting area with information center, vending and ticketing.

6. Service standard for the operations of train a. The minimum time interval (headway) between trains is shorter especially for commuter train. b. Ensure that the percentage of trains arriving at their destination is within five minutes of the scheduled time (punctuality standard) c. Ensure availability of train fleet (many operated fleets & high frequency of fleet) at most which is 90 % of all over the number of fleet.

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In this research, service standard design also concerns on technical aspect for train transportation, details of technical service standards can be seen below: 1. Seats must resist the impact forces occurring on collision. 2. Seat backs should be sufficiently high and well padded on both the front and back sides so as to afford proper support for the head and neck of a rearward traveling passenger and not to cause face or neck injuries to a forward traveling passenger who impacts with the seat ahead.

Figure 5.2 Seating Configurations

3. On a unidirectional seat equipped with a folding snack table, the table should be designed as to not constitute an injury hazard. 4. The low back side of a unidirectional seat should also be equipped with an energy absorbing padding element for the protection of knees and lower legs of the passenger in the seat behind. 5. Seats must be firmly mounted to the vehicle floor to prevent dislodging during the initial collision and secondary impact of passengers striking the seat. 6. Hard glass windows must be impervious to hard projectiles that may be thrown against windows during a journey.

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Figure 5.3 Windows Designs

7. Emergency lighting must be reliable and have the following characteristics: - Robust—fixtures must survive all forces exhibited in a crash - Self-contained energy source - Uniformity of lighting—no bright and shaded areas - Very low voltage, amperage draw - Last a minimum of 3 hours

5.5.3 Service Guarantee Design As is mentioned before, service guarantee is a promise by a firm that the firm will perform at a certain level and, if that level is not met, the firm also promises to compensate customers in some ways. Travel time guarantee is one of service guarantee, learning from Statens Järnvägar (SJ) AB, Sweden in doing their service guarantee, PT KAI can adopt and use their system to increase customer satisfaction. Details of service guarantee (travel time guarantee) can be seen below: 1. A delay of 60-119 minutes grants a 25% refund on the ticket price. 2. A delay of 120+ minutes grants a 50% refund on the ticket price. If the train delay lasts at least 60 minutes, passengers can claim compensation for: 1. Telephone and other telecommunications messages Expenses for necessary telecommunication messages shall be compensated. Compensation for such expenses is also provided in those cases where the passenger, as a consequence of the service disruption, elects not to travel by train 2. Reasonable added expenses for food

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Reasonable additional expenses for food shall be compensated. Where PT KAI has offered food, free of charge, compensation shall not be provided for corresponding costs. Extra expenses for food are not compensable where the passenger elects not to travel by train. 3. Reasonable alternate mode PT KAI shall offer the passenger transportation, free of charge, from the train to the train station, to an alternative point of departure or to the locality of the final destination for the connection if the train is delay and canceled. PT KAI shall have no liability when the delay, missed connection, or cancellation can be attributed to any of the following causes: 1. Circumstances which are not linked to the operation of the railway which PT KAI could not have avoided or the consequences of which it could not have prevented, even if PT KAI had taken the care dictated by the circumstances; 2. Error or negligence of the passenger; 3. Behavior of a third party which PT KAI could not have avoided or the consequences of which it could not have prevented, even if PT KAI had taken the care dictated by the circumstances. Another company which uses the same infrastructure shall not be deemed a third party, nor shall the administrator of the infrastructure. In the event a passenger wishes to report a circumstance which entitles him to compensation or assistance pursuant to these General Terms and Conditions, he should firstly contact the train staff or the staff at staffed points of sale. Where such staff cannot make a decision regarding compensation, the passengers should, not later than within three months, submit his claim to PT KAI Customer Service or via PT KAI website or otherwise in writing to PT KAI.

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CHAPTER 6 CONCLUSION

This section contains conclusion, practical recommendation, things that could have been carried out in better way. At the end of the section, future study recommendation is presented.

6.1 Conclusion Through research and observation from literature review and case study, the research questions are answered below: 1. What are the service quality attributes that have significant influences to customer satisfaction towards PT KAI Services for short distance train (Commuter class), and long distance train (Business class, and Executive class)? The results of factor analysis show that there are six factors of service quality attributes that have significant influences to customer satisfaction towards PT KAI services for commuter class; Information, Appearances, Service coverage, Tangible, Safety & security, and Cost. Meanwhile, there are seven factors of service quality attributes that significantly influence customer satisfaction; Travel time, Information, Scheduling, Comfort, Tangible, Safety & security, and Service coverage. Similarly, there are seven factors that have significant influences on customer satisfaction in the executive class: Appearances, Safety & security, Information, Comfort, Tangible, Travel time, and Cost. The naming process for all factors is done by identifying the service attribute/variable that has high factor loading value for each class of train transportation. The factors are also arranged based on the rank of service attributes that has significant influences on customer satisfaction towards provided service. For commuter class, factors that have significant influences on customer satisfaction (is arranged based on the importance rate), namely Information factor, followed by Appearances, Service coverage, Tangible, Safety & security, and Cost. This rule also used for business and executive class.

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2. Are there influences between customer satisfactions towards provided services and the desire to make a complaint? The results of regression analysis shows that for commuter class passengers, there is an influence between six factors (Information factor, Appearances, Service coverage, Tangible, Safety & security, and Cost) and the desire to do a complaint. But partially, the five factors (Information factor, Appearances, Service coverage, Tangible, and Cost) that relate to service quality attributes explaining a factor that has significant influence on desire to do a complaint are all rejected, except X5 (Safety & security) is accepted. It shows that Safety & security has a significant influence on desire to do a complaint. It can be interpreted that the service performance for commuter class in the Safety & security dimension by the train operator (PT KAI) is still low. For business class, there is an influence between seven factors (Travel time, Information, Scheduling, Comfort, Tangible, Safety & security and Service coverage) and the desire to do a complaint. And in partially the six factors (Travel time, Scheduling, Comfort, Tangible, Safety & security and Service coverage) that relate to service quality attributes explaining a factor that has significant influence on desire to do a complaint are all rejected, except X2 (Information) is accepted. It shows that Information has a significant influence on desire to do a complaint. It can be interpreted that the service performance for business class in the Information dimension by the train operator (PT KAI) is still low. For the executive class, there is not an influence between seven factors (Appearances, Safety & security, Information, Comfort, Tangible, Travel time and Cost) and the desire to do a complaint. It can be interpreted that for executive class, passengers are mostly satisfied with the service that given by PT KAI.

3. What is the effective mechanism to handle passenger complaint for PT KAI? In this research, to decrease the number of complaints from customers, PT KAI as an operator must provide the media for customers who have complaints to convey their complaint easily. Learning from how Statens Järnvägar (SJ) AB, Sweden doing their customer complaint handling, it can be conclude that customer could submit or

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send their complaints to the official website of PT KAI or they can use complaint/suggestion box that provided in station, besides the customer service call number that can be viewed inside the train, in station or other place and media. Every complaint through official website, customer service call, letter and email is logged and given a unique reference number, which makes it easy to keep track of. Customers making complaints must be prepared to give their name and contact details for the complaints to be investigated. They will also be given the option of having someone respond to them directly or not. Where the customer has requested a response, they will be informed of the complaint reference number as well as how long they should expect to wait for a response. In accordance with the Privacy Policy, any personal information collected to respond to a complaint will remain confidential and will only be used to help resolve that complaint. When a complaint is logged it is forwarded to and dealt with by the appropriate area within the PT KAI organization. Complaints where the customer has requested a response will be responded to within 5 working days of receiving the complaint. In the case of complaints concerning emergency situations, the relevant area in PT KAI organization structure will be notified immediately.

4. What kind of service standards and service guarantee that can be recommended to PT Kereta Api Indonesia in order to improve their service? To design service standards, the operator or company must know what customers want and expect while using the service. If they are dissatisfied or their expectation towards provided service cannot be reached, there must be something inappropriate with this service. Therefore, it can be a cause for customer to convey the complaint. According to the results of customer satisfaction in this research, service standards of PT KAI can be classified into 6 details of service: service standard for safety and security aspect; service standard for comfort and appearances; service standard for availability of information aspect; service standard for tangible attributes; service standard for service coverage; and service standard for the operations of train.

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In terms of service guarantee design, this research focuses on travel time guarantee. Learning from Statens Järnvägar (SJ) AB, Sweden when doing their service guarantee, PT KAI can adopt and use its system to increase customer satisfaction. Details of travel time guarantee can be explained as follows; a delay of 60-119 minutes grants a 25% refund on the ticket price, a delay of 120+ minutes grants a 50% refund on the ticket price. If the train delay lasts at least 60 minutes, passengers can claim compensation for: telephone and other telecommunications messages, reasonable added expenses for food, reasonable alternate mode.

6.2 Future Studies The suggestion that could be given for future research is related to the process and analysis of survey in which the result will be more accurate. In addition, research can be carried out not only for train transportation mode but also for other mode like air and sea transportation mode. Such a research also needs to be conducted annually because customer satisfaction always changes time to time.

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APPENDIX

Appendix 1 : Customer survey form

Good morning/afternoon/evening, we are from the Magister of Engineering and Transport System of Gadjah Mada University, Indonesia. For the time being, we are conducting a survey to learn customer perceptions when using public transportation services especially on Train Transportation. We kindly hope that you could spare some time to help us in this research by answering the following questions. Could we have your opinions? . Yes/No*, (if no: I refuse to be interviewed because I: have no time/don’t want to answer/have another reason i.e...... ) *striketrough the unused choices. A. CUSTOMER PERCEPTIONS TOWARDS PT KAI SERVICES You are kindly requested to respond to question No. 1 to No. 21 by circling ( ) the appropriate number that suits your personal opinion. Choice number 1 stands for “Very bad”, number 2 for “Bad”, number 3 for “Neither bad nor good”, number 4 for “Good”, and number 5 for “Very Good”.

. Very Bad [1] < ------> [5] Very good

1. Accesibility of station (railway 10. Facilities for disabled (toilet, special station should be easy to seat, wheelchair space)? access/integrated system)? . 1 2 3 4 5 . 1 2 3 4 5 11. The comfort in using train 2. Availability of parking facilities at transportation (appropriate climate station? control (air conditioner, heater, fan), . 1 2 3 4 5 seat comfort, and ride comfort)? 3. Ticket price? . 1 2 3 4 5 . 1 2 3 4 5 12. Security on the train (become a victim 4. Fare payment? of crime “pickpocket”)? . 1 2 3 4 5 . 1 2 3 4 5 5. Queuing the ticket? 13. Physical condition of the train so far . 1 2 3 4 5 (AC, fan, seat & toilet condition)? 6. Security while waiting at/leaving the . 1 2 3 4 5 station? 14. Apperances of services personal (how . 1 2 3 4 5 they look/uniform) ? 7. Cleanliness of the trains & station? . 1 2 3 4 5 . 1 2 3 4 5 15. Staff behaviour? 8. Safety & security equipment in train or . 1 2 3 4 5 station (fire extinguisher,hammer & 16. Readiness to help passenger? first aid)? . 1 2 3 4 5 . 1 2 3 4 5 17. Availability of train fleet (many 9. Safety information for passenger on operated fleets & high frequency of board and off board fleet)? . 1 2 3 4 5 . 1 2 3 4 5

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18. Punctuality in using train 21. In general, what is your opinion about transportation? the current service conditions of train . 1 2 3 4 5 transportation? 19. Travel time when using train? . 1 2 3 4 5 . 1 2 3 4 5 20. Complaint handling system adopted on train transportation (in the station)? . 1 2 3 4 5

B. COMPLAINT QUESTIONNIARES (FACTORS THAT INFLUENCE PASSENGERS TO MAKE A COMPLAINT) (You are kindly requested to respond the following statements by checking "X" according to your personal opinion, Choice number 1 stands for “Very not important”, number 2 for “Not important”, number 3 for “Neutral”, number 4 for “Important”, and number 5 for “Very important”. . Very not important [1] < ------> [5] Very important In your opinion, do the statement below become your consideration to make a complaint for the service in public transport, especially Train transportation?

1. Accesibility of station (railway control (air conditioner, heater, fan), station should be easy to seat comfort, and ride comfort)? access/integrated system)? . 1 2 3 4 5 . 1 2 3 4 5 12. Security on the train (become a victim 2. Availability of parking facilities at of crime “pickpocket”)? station? . 1 2 3 4 5 . 1 2 3 4 5 13. Physical condition of the train so far 3. Ticket price? (AC, fan, seat & toilet condition)? . 1 2 3 4 5 . 1 2 3 4 5 4. Fare payment? 14. Apperances of services personal (how . 1 2 3 4 5 they look/uniform) ? 5. Queuing the ticket? . 1 2 3 4 5 . 1 2 3 4 5 15. Staff behaviour? 6. Security while waiting at/leaving the . 1 2 3 4 5 station? 16. Readiness to help passenger? . 1 2 3 4 5 . 1 2 3 4 5 7. Cleanliness of the trains & station? 17. Availability of train fleet (many . 1 2 3 4 5 operated fleets & high frequency of 8. Safety & security equipment in train fleet)? or station (fire extinguisher,hammer . 1 2 3 4 5 & first aid)? 18. Punctuality in using train . 1 2 3 4 5 transportation? 9. Safety information for passenger on . 1 2 3 4 5 board and off board 19. Travel time when using train? . 1 2 3 4 5 . 1 2 3 4 5 10. Facilities for disabled (toilet, special 20. Complaint handling system adopted seat, wheelchair space)? on train transportation (in the . 1 2 3 4 5 station)? 11. The comfort in using train . 1 2 3 4 5 transportation (appropriate climate

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C. RESPONDENT DATA If you don’t mind, please share your personal information with us. We would do our best to keep it confidential.

1. Gender a. Male b. Female 2. Your current age a. < 20 year c. 31 to 40 year b. 21 to 30 year d. > 41 year 3. Your current job a. Civil servant/TNI/POLRI c. Students b. Private employee/ d. Other

Businessman (…..…………………) 4. Your last education a. High School c. Bachelor (S1) b. Diploma (D1 – D3) d. Post Graduate (S2/S3) 5. Frequency to using train a. < 2 c. 4 to 5 Per month b. 2 to 3 d. > 5 6. The average income a. < 1.000.000 c. 2.000.001 to 3.000.000 Per month b. 1.000.001, to 2.000.000 d. > 3.000.000

Please kindly give comment for improvement

Suggestion Box:

......

...... Surveyor...... Name : ......

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Appendix 2: Descriptive analysis results

Demographic Data Frequency Gender Cumulative Frequency Percent Percent Valid MALE 301 80.3 80.3 FEMALE 74 19.7 100 Total 375 100

Age Cumulative Frequency Percent Percent Valid < 20 27 7.2 7.2 21 - 30 224 59.7 66.9 31 - 40 111 29.6 96.5 > 41 13 3.5 100 Total 375 100

Profession Cumulative Frequency Percent Percent Valid CIVIL SERVANT/TNI/POLRI 83 22.1 22.1 PRIVATE 263 70.1 92.3 EMPLOYEE/BUSINESSMAN STUDENTS 27 7.2 99.5 OTHERS 2 0.5 100 Total 375 100

Education Level Cumulative Frequency Percent Percent Valid HIGH SCHOOL 180 48 48 DIPLOMA (D1 - D3) 74 19.7 67.7 BACHELOR (S1) 115 30.7 98.4 POST GRADUATE 6 1.6 100 Total 375 100

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Frequency Cumulative Frequency Percent Percent Valid 1 permonth 123 32.8 32.8 2 permonth 110 29.3 62.1 3 permonth 6 1.6 63.7 4 permonth 10 2.7 66.4 5 permonth 5 1.3 67.7 6 permonth 9 2.4 70.1 > 8 permonth 112 29.9 100 Total 375 100

Level of Income Cumulative Frequency Percent Percent Valid < 1.000.000 86 22.9 22.9 1.000.001 - 2.000.000 176 46.9 69.9 2.000.001 - 3.000.000 92 24.5 94.4 > 3.000.000 21 5.6 100 Total 375 100

Question Frequency: Accessibility of station Cumulative Frequency Percent Percent Valid Very Bad 4 1.1 1.1 Bad 25 6.7 7.7 Neither Bad nor Good 193 51.5 59.2 Good 128 34.1 93.3 Very Good 25 6.7 100 Total 375 100

Availability of parking facilities Cumulative Frequency Percent Percent Valid Very Bad 8 2.1 2.1 Bad 89 23.7 25.9 Neither Bad nor Good 195 52 77.9 Good 69 18.4 96.3 Very Good 14 3.7 100 Total 375 100

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Ticket price Cumulative Frequency Percent Percent Valid Very Bad 7 1.9 1.9 Bad 98 26.1 28 Neither Bad nor Good 191 50.9 78.9 Good 71 18.9 97.9 Very Good 8 2.1 100 Total 375 100

Fare payment Cumulative Frequency Percent Percent Valid Very Bad 4 1.1 1.1 Bad 26 6.9 8 Neither Bad nor Good 156 41.6 49.6 Good 139 37.1 86.7 Very Good 50 13.3 100 Total 375 100

Queuing the ticket Cumulative Frequency Percent Percent Valid Very Bad 7 1.9 1.9 Bad 69 18.4 20.3 Neither Bad nor Good 223 59.5 79.7 Good 70 18.7 98.4 Very Good 6 1.6 100 Total 375 100

Safe station Cumulative Frequency Percent Percent Valid Very Bad 8 2.1 2.1 Bad 71 18.9 21.1 Neither Bad nor Good 199 53.1 74.1 Good 84 22.4 96.5 Very Good 13 3.5 100 Total 375 100

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Cleanliness Cumulative Frequency Percent Percent Valid Very Bad 16 4.3 4.3 Bad 126 33.6 37.9 Neither Bad nor Good 179 47.7 85.6 Good 51 13.6 99.2 Very Good 3 0.8 100 Total 375 100

Safety & security equipment Cumulative Frequency Percent Percent Valid Very Bad 17 4.5 4.5 Bad 140 37.3 41.9 Neither Bad nor Good 171 45.6 87.5 Good 42 11.2 98.7 Very Good 5 1.3 100 Total 375 100

Safety information Cumulative Frequency Percent Percent Valid Very Bad 52 13.9 13.9 Bad 175 46.7 60.5 Neither Bad nor Good 116 30.9 91.5 Good 26 6.9 98.4 Very Good 6 1.6 100 Total 375 100

Facilities for disabled Cumulative Frequency Percent Percent Valid Very Bad 45 12 12 Bad 213 56.8 68.8 Neither Bad nor Good 87 23.2 92 Good 25 6.7 98.7 Very Good 5 1.3 100 Total 375 100

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Comfort ness Cumulative Frequency Percent Percent Valid Very Bad 28 7.5 7.5 Bad 103 27.5 34.9 Neither Bad nor Good 144 38.4 73.3 Good 89 23.7 97.1 Very Good 11 2.9 100 Total 375 100

Security on train Cumulative Frequency Percent Percent Valid Very Bad 85 22.7 22.7 Bad 175 46.7 69.3 Neither Bad nor Good 82 21.9 91.2 Good 31 8.3 99.5 Very Good 2 0.5 100 Total 375 100

Train condition Cumulative Frequency Percent Percent Valid Very Bad 38 10.1 10.1 Bad 102 27.2 37.3 Neither Bad nor Good 174 46.4 83.7 Good 55 14.7 98.4 Very Good 6 1.6 100 Total 375 100

Appearance of service personal Cumulative Frequency Percent Percent Valid Very Bad 1 0.3 0.3 Bad 5 1.3 1.6 Neither Bad nor Good 139 37.1 38.7 Good 201 53.6 92.3 Very Good 29 7.7 100 Total 375 100

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Staff behavior Cumulative Frequency Percent Percent Valid Very Bad 2 0.5 0.5 Bad 16 4.3 4.8 Neither Bad nor Good 271 72.3 77.1 Good 75 20.0 97.1 Very Good 11 2.9 100 Total 375 100

Readiness to help passenger Cumulative Frequency Percent Percent Valid Very Bad 2 0.5 0.5 Bad 50 13.3 13.9 Neither Bad nor Good 262 69.9 83.7 Good 55 14.7 98.4 Very Good 6 1.6 100 Total 375 100

Availability of train fleet Cumulative Frequency Percent Percent Valid Very Bad 5 1.3 1.3 Bad 58 15.5 16.8 Neither Bad nor Good 204 54.4 71.2 Good 95 25.3 96.5 Very Good 13 3.5 100 Total 375 100

Punctuality Cumulative Frequency Percent Percent Valid Very Bad 5 1.3 1.3 Bad 34 9.1 10.4 Neither Bad nor Good 206 54.9 65.3 Good 118 31.5 96.8 Very Good 12 3.2 100 Total 375 100

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Travel time Cumulative Frequency Percent Percent Valid Very Bad 8 2.1 2.1 Bad 70 18.7 20.8 Neither bad nor Good 205 54.7 75.5 Good 81 21.6 97.1 Very Good 11 2.9 100 Total 375 100

Complaint handling system Cumulative Frequency Percent Percent Valid Very Bad 14 3.7 3.7 Bad 134 35.7 39.5 Neither Bad nor Good 186 49.6 89.1 Good 28 7.5 96.5 Very Good 13 3.5 100 Total 375 100

General satisfaction Cumulative Frequency Percent Percent Valid Very Bad 2 0.5 0.5 Bad 31 8.3 8.8 Neither Bad nor Good 296 78.9 87.7 Good 37 9.9 97.6 Very Good 9 2.4 100 Total 375 100

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Means of Customer satisfaction Safe Safe Safe Secure Train Avail Travel Type station parking price payment queuing station clean equip info disabled comfort train condition appearance behavior help train punctual time complain Commuter 3.3600 2.9920 3.0240 3.2080 3.1440 3.0320 2.6160 2.5040 2.1920 2.2080 2.3440 2.0400 3.0800 3.2960 3.1120 3.0080 3.0400 2.9920 2.7200 2.5840 Class Business 3.2800 3.0080 2.9920 3.6160 2.8880 3.1920 2.6480 2.6320 2.3840 2.3360 2.7760 1.9840 2.3440 3.7200 3.1120 3.0320 2.9280 3.4720 3.3040 2.6400 Class Executive 3.5200 2.9360 2.7840 3.8160 2.9600 2.9600 2.9280 2.8880 2.4960 2.3120 3.4960 2.4960 2.6880 4.0000 3.3920 3.0640 3.4560 3.3200 3.1120 2.9120 Class Total 3.3867 2.9787 2.9333 3.5467 2.9973 3.0613 2.7307 2.6747 2.3573 2.2853 2.8720 2.1733 2.7040 3.6720 3.2053 3.0347 3.1413 3.2613 3.0453 2.7120

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Appendix 3 : Factor analysis results Commuter Class : KMO and Bartlett's Testa Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .753 Bartlett's Test of Approx. Chi-Square 421.079 Sphericity df 153 Sig. .000 a. Only cases for which Type = Commuter Class are used in the analysis phase.

Anti-image Matrices SIparking Sprice Spayment Squeing Ssafestation Sclean Ssafeequip Ssafeinfo Sdisabled Scomfort Ssecurintrain Straincondition Sappearance Sbehavior Savailtrain Spunctual Straveltime Scomplain Anti-image SIparking .571a -.081 -.203 -.133 -.052 -.065 -.053 .257 .001 -.128 .070 -.080 -.333 .044 -.097 .011 -.039 -.084 Correlation Sprice -.081 .800a .055 -.126 .004 -.259 -.015 -.191 -.038 .053 .043 -.104 .082 -.041 .018 .019 -.039 -.013 Spayment -.203 .055 .539a .026 .026 .105 -.071 -.111 -.069 .130 -.028 .099 -.034 -.105 -.057 -.091 -.111 .089 Squeing -.133 -.126 .026 .686a -.066 -.004 -.067 -.029 -.008 -.052 -.039 -.147 .038 .007 .126 -.280 .012 .145 Ssafestation -.052 .004 .026 -.066 .567a .104 -.043 -.060 -.071 -.032 .023 .081 .162 .060 -.234 .043 -.037 -.038 Sclean -.065 -.259 .105 -.004 .104 .817a -.186 -.125 .032 -.055 .034 .019 .010 -.038 -.044 -.104 -.082 -.151 Ssafeequip -.053 -.015 -.071 -.067 -.043 -.186 .892a -.050 -.030 -.121 -.088 -.121 .060 -.055 -.065 .002 -.017 -.091 Ssafeinfo .257 -.191 -.111 -.029 -.060 -.125 -.050 .768a -.349 .012 -.211 -.053 -.206 -.116 -.099 -.089 .002 .025 Sdisabled .001 -.038 -.069 -.008 -.071 .032 -.030 -.349 .802a -.168 -.074 -.183 -.175 .194 -.030 -.087 .053 -.055 Scomfort -.128 .053 .130 -.052 -.032 -.055 -.121 .012 -.168 .816a -.164 -.013 -.086 .117 -.155 -.107 -.141 .054 Ssecurintrain .070 .043 -.028 -.039 .023 .034 -.088 -.211 -.074 -.164 .795a -.054 -.084 -.052 -.001 .141 .078 -.240 Straincondition -.080 -.104 .099 -.147 .081 .019 -.121 -.053 -.183 -.013 -.054 .828a .056 .048 -.070 .008 -.099 .042 Sappearance -.333 .082 -.034 .038 .162 .010 .060 -.206 -.175 -.086 -.084 .056 .625a -.035 -.011 .223 .094 -.052 Sbehavior .044 -.041 -.105 .007 .060 -.038 -.055 -.116 .194 .117 -.052 .048 -.035 .587a -.270 -.096 .004 -.037 Savailtrain -.097 .018 -.057 .126 -.234 -.044 -.065 -.099 -.030 -.155 -.001 -.070 -.011 -.270 .767a .104 -.142 -.117 Spunctual .011 .019 -.091 -.280 .043 -.104 .002 -.089 -.087 -.107 .141 .008 .223 -.096 .104 .659a -.147 -.248 Straveltime -.039 -.039 -.111 .012 -.037 -.082 -.017 .002 .053 -.141 .078 -.099 .094 .004 -.142 -.147 .800a -.049 Scomplain -.084 -.013 .089 .145 -.038 -.151 -.091 .025 -.055 .054 -.240 .042 -.052 -.037 -.117 -.248 -.049 .765a a. Measures of Sampling Adequacy(MSA) b. Only cases for which Type = Commuter Class are used in the analysis phase.

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Rotated Component Matrixa,b Component 1 2 3 4 5 6 SIparking -.049 .120 .110 .859 .053 .072 Sprice .206 .390 .460 -.058 -.140 .012 Spayment .112 -.217 .130 .276 .074 .771 Squeing .088 -.091 .748 .095 -.011 -.034 Ssafestation .094 -.084 .015 -.087 .810 -.029 Sclean .111 .707 .301 .063 -.100 -.028 Ssafeequip .276 .436 .253 .147 .194 .038 Ssafeinfo .758 .214 .214 -.135 .049 .224 Sdisabled .751 .025 .245 .145 .134 -.041 Scomfort .351 .231 .174 .388 .337 -.260 Ssecurintrain .680 .233 -.118 .007 .041 .008 Straincondition .364 .097 .451 .134 .077 -.178 Sappearance .509 .019 -.266 .557 -.229 .098 Sbehavior .003 .405 -.086 -.173 .010 .651 Savailtrain .235 .400 -.133 .171 .541 .266 Spunctual -.060 .276 .641 -.090 .100 .149 Straveltime -.161 .319 .343 .178 .411 .127 Scomplain .192 .665 -.050 .081 .130 .012 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 9 iterations. b. Only cases for which Type = Commuter Class are used in the analysis phase.

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Business Class : KMO and Bartlett's Testa Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .614 Bartlett's Test of Approx. Chi-Square 425.947 Sphericity Df 171 Sig. .000 a. Only cases for which Type = Business Class are used in the analysis phase.

Anti-image Matrices Sprice Spayment Squeing Ssafestation Sclean Ssafeequip Ssafeinfo Sdisabled Scomfort Ssecurintrain Straincondition Sappearance Sbehavior Savailtrain Spunctual Straveltime Scomplain Sstation Shelp Anti-image Sprice .757a -.035 -.189 -.062 -.070 -.005 -.003 -.065 -.062 -.005 -.037 .008 -.094 -.167 .133 -.004 -.085 -.026 -.007 Correlation a Spayment -.035 .647 .117 .068 -.037 .029 .104 .030 -.151 .021 .068 -.045 .096 .105 -.165 -.198 .095 -.090 -.125 Squeing -.189 .117 .578a .126 -.130 .076 .000 .046 -.011 -.048 -.085 -.074 .194 -.127 .038 -.164 .012 -.247 -.071 Ssafestation -.062 .068 .126 .633a .072 .206 .069 .060 -.195 .149 .146 .019 .106 -.099 -.059 -.027 .000 -.138 -.091 Sclean -.070 -.037 -.130 .072 .710a -.125 -.195 -.017 -.032 .061 .052 -.017 .037 -.117 -.176 .152 -.143 -.081 .118 Ssafeequip -.005 .029 .076 .206 -.125 .620a .022 -.238 .147 -.175 .193 -.010 .033 .071 -.047 -.060 -.179 -.163 -.228 Ssafeinfo -.003 .104 .000 .069 -.195 .022 .770a -.028 -.096 -.132 -.082 -.022 -.141 .136 .011 -.091 -.143 -.129 .004 Sdisabled -.065 .030 .046 .060 -.017 -.238 -.028 .562a -.088 -.066 -.369 .026 .019 -.356 -.074 -.182 .197 .100 .043 Scomfort -.062 -.151 -.011 -.195 -.032 .147 -.096 -.088 .592a -.040 -.042 -.134 .194 -.053 .082 -.233 -.180 .022 -.143 Ssecurintrain -.005 .021 -.048 .149 .061 -.175 -.132 -.066 -.040 .794a -.118 .071 -.011 -.095 -.019 -.056 -.051 .003 .032 Straincondition -.037 .068 -.085 .146 .052 .193 -.082 -.369 -.042 -.118 .522a .010 -.097 .172 -.057 .226 -.059 -.010 -.151 Sappearance .008 -.045 -.074 .019 -.017 -.010 -.022 .026 -.134 .071 .010 .592a -.385 -.171 -.356 -.018 .216 .021 -.049 Sbehavior -.094 .096 .194 .106 .037 .033 -.141 .019 .194 -.011 -.097 -.385 .566a .038 .144 -.093 -.315 -.206 -.253 Savailtrain -.167 .105 -.127 -.099 -.117 .071 .136 -.356 -.053 -.095 .172 -.171 .038 .562a .109 .067 -.195 -.055 -.009 Spunctual .133 -.165 .038 -.059 -.176 -.047 .011 -.074 .082 -.019 -.057 -.356 .144 .109 .584a -.310 -.312 .020 .066 Straveltime -.004 -.198 -.164 -.027 .152 -.060 -.091 -.182 -.233 -.056 .226 -.018 -.093 .067 -.310 .625a .081 -.004 -.007 Scomplain -.085 .095 .012 .000 -.143 -.179 -.143 .197 -.180 -.051 -.059 .216 -.315 -.195 -.312 .081 .568a .142 .028 Sstation -.026 -.090 -.247 -.138 -.081 -.163 -.129 .100 .022 .003 -.010 .021 -.206 -.055 .020 -.004 .142 .554a .021 Shelp -.007 -.125 -.071 -.091 .118 -.228 .004 .043 -.143 .032 -.151 -.049 -.253 -.009 .066 -.007 .028 .021 .588a a. Measures of Sampling Adequacy(MSA) b. Only cases for which Type = Business Class are used in the analysis phase.

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Rotated Component Matrixa,b Component 1 2 3 4 5 6 7 Sprice -.116 .122 .532 .141 .097 -.141 .338 Spayment .675 -.177 -.168 .025 -.112 -.040 .046 Squeing .074 .035 .277 -.134 .168 -.013 .700 Ssafestation .088 -.087 .159 .023 -.388 -.624 -.038 Sclean .067 .653 .193 -.159 -.055 .181 .250 Ssafeequip .160 .157 .165 .191 .016 .730 .054 Ssafeinfo .049 .575 -.193 .164 .403 -.013 .266 Sdisabled .237 -.090 .551 .000 .508 .245 -.091 Scomfort .491 .119 .249 .033 .213 -.536 .037 Ssecurintrain .086 .153 .139 -.039 .514 .355 .077 Straincondition -.158 .029 .002 .194 .785 -.047 -.015 Sappearance .399 .169 .154 .525 -.085 .033 .023 Sbehavior -.119 .312 -.037 .774 .092 .143 .051 Savailtrain -.040 .130 .842 .036 -.050 .011 .067 Spunctual .657 .426 -.020 .047 -.037 .144 -.151 Straveltime .777 .005 .056 .067 .051 .014 .109 Scomplain -.031 .764 .156 .202 .075 .041 -.134 Sstation .035 .057 -.044 .241 -.123 .108 .765 Shelp .117 -.175 .065 .715 .153 -.009 .066 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 11 iterations. b. Only cases for which Type = Business Class are used in the analysis phase.

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Executive Class : KMO and Bartlett's Testa Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .710 Bartlett's Test of Approx. Chi-Square 450.484 Sphericity Df 190 Sig. .000 a. Only cases for which Type = Executive Class are used in the analysis phase.

Anti-image Matrices Sprice Spayment Squeing Ssafestation Sclean Ssafeequip Ssafeinfo Sdisabled Scomfort Ssecurintrain Straincondition Sappearance Sbehavior Savailtrain Spunctual Straveltime Scomplain Sstation Shelp SIparking Anti-image Sprice .650a .035 -.045 -.088 .026 .006 .026 -.172 -.058 .093 .031 .003 .022 .037 -.062 -.084 -.117 .124 -.108 -.066 Correlation a Spayment .035 .777 -.057 -.189 -.067 -.021 -.068 .025 -.057 -.095 .225 -.208 .159 -.150 -.044 -.090 .053 -.055 -.099 -.031 Squeing -.045 -.057 .767a -.077 -.176 -.159 -.006 .054 -.185 .059 .044 .035 -.098 .023 -.158 -.001 .067 -.167 .057 .076 Ssafestation -.088 -.189 -.077 .699a .002 -.088 .045 -.059 .081 -.148 -.143 -.052 .054 -.271 .184 .019 .084 .047 -.197 -.112 Sclean .026 -.067 -.176 .002 .838a .054 -.063 -.048 -.150 -.123 .004 -.096 -.093 -.016 -.215 .019 -.004 .016 -.006 -.015 Ssafeequip .006 -.021 -.159 -.088 .054 .811a -.021 -.061 -.001 -.004 -.008 -.063 .097 -.164 .061 -.102 -.142 -.104 -.208 -.114 Ssafeinfo .026 -.068 -.006 .045 -.063 -.021 .556a -.249 .187 -.155 -.096 .043 .037 .077 -.130 .070 -.426 .007 .148 .047 Sdisabled -.172 .025 .054 -.059 -.048 -.061 -.249 .636a .085 -.081 -.083 .008 -.065 -.148 .036 .117 .119 -.020 -.026 -.171 Scomfort -.058 -.057 -.185 .081 -.150 -.001 .187 .085 .711a -.138 -.260 -.282 .141 -.066 -.032 -.075 -.005 .088 -.055 -.052 Ssecurintrain .093 -.095 .059 -.148 -.123 -.004 -.155 -.081 -.138 .805a -.018 .089 .075 -.047 -.167 -.056 -.095 -.072 -.045 .081 Straincondition .031 .225 .044 -.143 .004 -.008 -.096 -.083 -.260 -.018 .543a .086 .072 .135 -.019 -.162 .037 -.122 -.145 -.174 Sappearance .003 -.208 .035 -.052 -.096 -.063 .043 .008 -.282 .089 .086 .761a -.078 .022 -.111 -.017 -.026 -.078 .025 .097 Sbehavior .022 .159 -.098 .054 -.093 .097 .037 -.065 .141 .075 .072 -.078 .554a -.184 -.036 -.105 -.131 -.057 -.120 -.202 Savailtrain .037 -.150 .023 -.271 -.016 -.164 .077 -.148 -.066 -.047 .135 .022 -.184 .699a -.067 -.097 -.093 -.217 .194 .087 Spunctual -.062 -.044 -.158 .184 -.215 .061 -.130 .036 -.032 -.167 -.019 -.111 -.036 -.067 .766a -.091 .024 .059 -.195 -.108 Straveltime -.084 -.090 -.001 .019 .019 -.102 .070 .117 -.075 -.056 -.162 -.017 -.105 -.097 -.091 .801a -.138 .086 -.028 -.020 Scomplain -.117 .053 .067 .084 -.004 -.142 -.426 .119 -.005 -.095 .037 -.026 -.131 -.093 .024 -.138 .648a .040 -.127 -.167 Sstation .124 -.055 -.167 .047 .016 -.104 .007 -.020 .088 -.072 -.122 -.078 -.057 -.217 .059 .086 .040 .705a -.139 .015 Shelp -.108 -.099 .057 -.197 -.006 -.208 .148 -.026 -.055 -.045 -.145 .025 -.120 .194 -.195 -.028 -.127 -.139 .676a .195 SIparking -.066 -.031 .076 -.112 -.015 -.114 .047 -.171 -.052 .081 -.174 .097 -.202 .087 -.108 -.020 -.167 .015 .195 .580a a. Measures of Sampling Adequacy(MSA) b. Only cases for which Type = Executive Class are used in the analysis phase.

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Rotated Component Matrixa,b Component 1 2 3 4 5 6 7 Sprice .057 .138 .016 .106 .080 .105 .739 Spayment .393 .539 .071 -.257 -.306 .099 .040 Squeing .587 .190 -.124 .167 .048 .026 -.173 Ssafestation .041 .755 -.045 -.099 .154 -.019 .158 Sclean .745 .031 .201 .092 .030 -.091 -.007 Ssafeequip .043 .580 .131 .111 .156 .346 -.045 Ssafeinfo -.017 -.018 .846 .056 .011 -.096 .018 Sdisabled -.020 .365 .350 .228 .222 -.503 .260 Scomfort .635 .081 -.190 -.178 .272 .234 .122 Ssecurintrain .340 .285 .530 -.260 .148 .046 -.113 Straincondition .070 .014 .052 .003 .861 .109 .026 Sappearance .556 .216 -.145 -.059 -.213 .189 .065 Sbehavior .111 .032 .049 .818 -.089 .119 -.052 Savailtrain .159 .666 .080 .247 -.234 .026 -.103 Spunctual .657 -.063 .313 .098 .067 .156 .047 Straveltime .186 .134 .082 .137 .092 .661 .172 Scomplain -.027 .064 .658 .263 -.017 .431 .129 Sstation .122 .458 -.012 .198 .166 -.004 -.592 Shelp .177 .335 .042 -.078 .346 .443 -.024 SIparking .008 .082 .133 .514 .326 -.088 .360 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 21 iterations. b. Only cases for which Type = Executive Class are used in the analysis phase.

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Appendix 4 : Regression Analysis Results

Commuter Class :

Model Summary Adjusted R Std. Error of Durbin- Model R R Square Square the Estimate Watson 1 .328a .108 .062 .37916 2.035 a. Predictors: (Constant), Faktor6, Faktor5, Faktor1, Faktor4, Faktor2, Faktor3 b. Dependent Variable: Y

ANOVAb Table Sum of Model df Mean Square F Sig. Squares a 1 Regression 2.044 6 .341 2.370 .034 Residual 16.964 118 .144 Total 19.008 124 a. Predictors: (Constant), Faktor6, Faktor5, Faktor1, Faktor4, Faktor2, Faktor3 b. Dependent Variable: Y

Coefficientsa Table Unstandardized Standardized Model Coefficients Coefficients t Sig. B Std. Error Beta 1 (Constant) 2.657 .362 7.337 .000 Faktor1 -.042 .061 -.071 -.687 .493 Faktor2 .015 .066 .023 .228 .820 Faktor3 .059 .090 .068 .657 .513 Faktor4 -.090 .068 -.127 -1.339 .183 Faktor5 .223 .080 .254 2.787 .006 Faktor6 .100 .068 .131 1.473 .143 a. Dependent Variable: Y

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Business Class :

Model Summary Adjusted R Std. Error of Model R R Square Square the Estimate 1 .342a .117 .064 .34775 a. Predictors: (Constant), Faktor7, Faktor1, Faktor5, Faktor6, Faktor3, Faktor4, Faktor2

ANOVAb Table Sum of Model df Mean Square F Sig. Squares 1 Regression 1.869 7 .267 2.208 .038a Residual 14.148 117 .121 Total 16.017 124 a. Predictors: (Constant), Faktor7, Faktor1, Faktor5, Faktor6, Faktor3, Faktor4, Faktor2 b. Dependent Variable: Y

Coefficientsa Table Unstandardized Standardized Model Coefficients Coefficients t Sig. B Std. Error Beta 1 (Constant) 2.459 .358 6.861 .000 Factor 1 .054 .061 .081 .893 .374 Factor 2 .128 .058 .211 2.200 .030 Factor 3 .011 .079 .012 .135 .893 Factor 4 .168 .089 .178 1.878 .063 Factor 5 .034 .049 .063 .685 .494 Factor 6 -.029 .040 -.066 -.715 .476 Factor 7 -.016 .055 -.026 -.287 .775

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Executive Class :

Model Summary Adjusted R Std. Error of Model R R Square Square the Estimate 1 .283a .080 .025 .38979 a. Predictors: (Constant), Faktor7, Faktor5, Faktor2, Faktor4, Faktor3, Faktor1, Faktor6

ANOVAb Table Sum of Model df Mean Square F Sig. Squares 1 Regression 1.552 7 .222 1.459 .189a Residual 17.777 117 .152 Total 19.328 124 a. Predictors: (Constant), Faktor7, Faktor5, Faktor2, Faktor4, Faktor3, Faktor1, Faktor6 b. Dependent Variable: Y

Coefficientsa Unstandardized Standardized Model Coefficients Coefficients t Sig. B Std. Error Beta 1 (Constant) 2.754 .353 7.797 .000 Faktor1 .121 .082 .145 1.472 .144 Faktor2 .023 .083 .027 .275 .784 Faktor3 -.025 .063 -.038 -.394 .694 Faktor4 .015 .063 .022 .235 .814 Faktor5 .008 .043 .018 .189 .850 Faktor6 .096 .083 .119 1.161 .248 Faktor7 .065 .046 .127 1.395 .166 a. Dependent Variable: Y

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