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The Effect of Privatisation of British Railways on the Satisfaction Levels of Passengers

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The Effect of Privatisation of British Railways on the Satisfaction Levels of Passengers UNIVERSITY OF WALES--- Trinity Saint David London 1HE EFFECT OF PRIVITISATION OF BRITISH RAILWAYS ON THE SATISFACTION LEVELS OF PASSENGERS: A CASE STUDY OF LONDON OVERGROUND BY ECHEVICTOR EBUTE SUPERVISORS DRDABA CHOWDHURY DR JOHN-PAUL OKEKE SUBMITTED IN PARTIAL FULFILLMENTFOR 1HE AWARD OF THEDEGREE OF DOCTOR OF BUSINESS ADMINISTRATION UNIVERSITY OF WALES TRINITYSAINT DAVID NOVEMBER2019 DEDICATION I dedicate this work to Almighty God for his grace and mercies upon my life, for sparing my life and for the completion of this thesis. To my lovely son Rosh Ebute and my sweetheart: Elssie Ebute. To my mom: Stella Ebute, family members, friends and well-wishers. 3 ACKNOWLEDGEMENT This has been a journey of learning and personal development. My gratitude to all my lecturers, friends and family who have supported me all through my studies. I am grateful to my supervisors: Dr Daba Chowdhury and Dr John-Paul Okeke. I thank you for your immense support, inspiration, continuous encouragement and constructive feedback. I feel priviledged to have been mentored by you. I look forward to more fruitful collaborations. Words cannot express my profound gratitude to my mother, Mrs Stella Ebute who has been a source of inspiration in my life with her untiring efforts, despite all odds to see that am lifted to the expected end. I promise to always live to make the entire family proud. To my loved ones; Eche Rosh Ebute (Junior), Elssie Ebute (sweetheart), Emma Ejeba and family, Pedro Abah and family. MY heart felt appreciation also goes to Senator Ameh Ebute for your fatherly advice, support and care for the entire family. And, to my sisters and brothers, Ene Ebute, Ehi Ebute, Oloche Ebute and Oche Ebute. To my close friends who I really learnt one or two things in my course of relationship with them, Fahad, Baffour, Sree, Alexis, just to mention but a few. 4 ABSTRACT Rail privatisation 1s a contentious issue m the UK due to the political implications associated with rail privatisation. Findings from the literature suggests that it can have positive and negative effects on passengers' experiences and satisfaction. This study assessed the impact of rail privatisation of London Overground on passengers' satisfaction in the rail service by collecting and analysing primary data from 150 passengers and 50 staff of London Overground. Data was collected and analysed to test the research framework and research hypotheses developed in the study. Analysis using SPSS involved the utilisation of correlation and multinomial logistic regression analyses. The results of the regression analysis revealed that the perceived effectiveness of rail privatisation has a strong association with customer satisfaction after rail privatisation. The results indicate that customers who have a positive outlook towards rail privatisation were 33.1 % more likely to be satisfied with London Overground after rail privatisation than customers who have a negative outlook towards rail privatisation. This association is statistically significant at .000 levels. The implication of this result points to the importance of perceived effectiveness of rail privatisation in determining the level of passengers' satisfaction in the service and therefore places high value on the outcomes of rail privatisation among passengers in order to enhance their satisfaction. The results of the study are based on the assessment of the effect of perceived effectiveness of rail privatisation and hence cannot be objectively considered as an evaluation of the results of rail privatisation in London Overground. Despite this, the results of the study indicate that the perceived effectiveness of rail privatisation holds a key role in defining passenger satisfaction among the customers of London Overground. 5 TABLE OF CONTENTS Contents DECLARATION 1. .................................................................................................................................................1 DECLARATION 2........................................................................... ....................................................................... 2 DEDICATION.........................................................................................................................................................3 ACKNOWLEDGEMENT................................................................................. .. ..... 4 ABSTRACT ......................................................................................................................................... 5 LIST OF FIGURES, CHARTS AND TABLES .............................................................................................. 9 CHAPTER 1: INTRODUCTION ............................................................................................................ 11 1.1 Background of the study ........................................................................................................ 11 1.2 Research aim ......................................................................................................................... 20 1.4 Research questions ................................................................................................................ 20 1.5 The significance of the study .................................................................................................. 20 1.6 Rationale of the research ....................................................................................................... 21 1.7 Overview of case organisation ............................................................................................... 22 1.8 Research structure ................................................................................................................. 26 1.9 Summary ............................................................................................................................... 26 CHAPTER 2: LITERATURE REVIEW .................................................................................................... 28 2.1 Introduction........................................................................................................................... 28 2.2 Privatisation........................................................................................................................... 28 2.3 Factors contributing to privatisation ...................................................................................... 36 2.4 Privatisation models .............................................................................................................. 40 2.5 Cases of railway privatisations ............................................................................................... 43 2.6 Lessons learnt from rail privatisation experiences in other nations ........................................ 47 2.7 Country-specific factors affecting rai I privatisation................................................................. 51 2.8 Customer satisfaction ............................................................................................................ 59 2.9 Customer Satisfaction Models ............................................................................................ 61 2.10 A critical review of the selected theoretical models ............................................................. 71 2.11 Customer satisfaction in railway services ............................................................................. 74 2.12 Impact of privatisation on satisfaction levels of railway customers ....................................... 79 2.13 Customer experience as a driver of passenger satisfaction ................................................... 85 2.14 Conceptual framework......................................................................................................... 87 6 CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY ...................................................................... 92 3.1 Introduction........................................................................................................................... 92 3.2 Research Hypothesis .............................................................................................................. 92 3.3 Research Philosophy .............................................................................................................. 93 3.4 Research Approach ................................................................................................................ 96 3.5 Research Design ..................................................................................................................... 98 3.6 Research Strategy ................................................................................................................ 101 3.7 Variables .............................................................................................................................. 103 3.8 Questionnaire design ........................................................................................................... 103 3.9 Getting access to case organisation/ conducting survey ....................................................... 104 3.10 Pilot testing ........................................................................................................................ 108 3.11 Data Collection Methods .................................................................................................... 109 3.12 Sampling...........................................................................................................................
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