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Real-Time High Speed Train Rescheduling in Case of a Partial CASPT 2015 Infotainment in Intercity Bus Services - Customer Require- ments Analysis and Conceptual Design Joachim R. Daduna · André Richter · Stefan Voß Abstract: This paper aims at identifying the customers’ requirements towards a possible infotainment system implemented in intercity buses in public transport. Based on the customer requirements analysis a concept of an infotainment system is presented and assessed with regard to selected aspects and criteria. In addition, con- clusions are derived whether infotainment could be an advantage in competition and could increase customer loyalty. Methods of empirical research and direct question- ing with questionnaires were used to survey customers of intercity buses. Results reveal preferences towards an infotainment system in intercity buses such as internet connections via Wi-Fi, multimedia content from a digital media centre, real-time passenger information and information app content. The study offers an overview on necessary technical infrastructure for passengers’ usage and passengers’ ability to pay for infotainment services. Also bus manufacturers and intercity bus service providers get information on customer requirements and preferences towards an infotainment system as well as a financing and implementation concept to increase competitive advantages and customer satisfaction. Keywords: Infotainment system · intercity bus · customer loyalty · mobile devices · public transport · multimedia Joachim R. Daduna Berlin School of Economics and Law, Berlin, Germany E-mail: [email protected] André Richter University of Hamburg / Institute of Information Systems, Hamburg, Germany E-mail: [email protected] Stefan Voß University of Hamburg / Institute of Information Systems, Hamburg, Germany E-mail: [email protected] 1 Introduction Following the deregulation of passenger transport in Germany from the 1st of Janu- ary 2013, the German market for intercity bus services has been opened for (private) providers. As a result the number of newly licensed bus providers (e.g. Mein- Fernbus, Flixbus or Postbus (the former ADAC Postbus)) increased, so that provid- ed bus lines, bus route frequencies and numbers of passengers increased rapidly within a year. Accordingly, the competition in intercity bus services increased and the market in Germany developed more and more dynamically (see BMVBS 2013, Statistisches Bundesamt 2014, BDO 2014a, BDO 2014b, Gipp 2013, Gipp 2014). Based on this development, bus manufacturer and also providers of intercity bus services were forced to figure out how they could stand the high competition and also could win market shares. Figure 1: Market share of the five biggest intercity bus service providers (state: March 2014, freely adapted from Gipp 2014). A possible differentiation to competitors for intercity bus service providers as well as bus manufacturers can be a more innovative and varied offer of IT- infrastructure and multimedia content. This can be provided by an implemented infotainment system in intercity buses. Bus manufacturers and intercity bus service providers have to ask themselves if there are changed and also new customer re- quirements towards technical equipment in intercity buses as well as preferences for in-bus entertainment. It is necessary to identify the relevance of infotainment ser- vices for customers and the preferred content and technology components. Based on a requirements analysis, a concept of a possible infotainment system was developed and assessed. Relevant aspects of multimedia content, IT-infrastructure, technology, costs, investments, usability, and legal restrictions are presented. Direct questionnaires in running intercity buses are used to survey the custom- ers’ requirements towards in-bus infotainment. The customers have been asked about their socio demographic background, their behaviour whereas the bus ride, their satisfaction and importance of already existent bus equipment and about their satisfaction, importance, and willingness to pay for available and future in-bus info- tainment equipment (technical, information, and entertainment components). 2 Literature review Apart from the existing research literature on infotainment systems in automobile and air traffic (see e.g. Meroth / Tolg 2008, Wietzke and Tran 2005, Liu et al. 2009) and product specifications of published company-specific products (see e.g. LHSys- tems 2013, LHSystems 2014b, Deutsche Post Mobility 2014, Greyhound 2013, Greyhound 2014, OmdisNet 2014a) there is only a few published research literature of infotainment systems in intercity buses. Shi and Yang (2013) analyzed the public transport system in Taiwan. Towards infotainment solutions in buses they identified real-time information systems that give passengers dynamic bus and interchange information which can be accessed by personal electronic devices (e.g. smart phones). In addition, one bus provider offers Audio/Video On Demand (AVOD) bus entertainment with movies, games and mu- sic. Schwietermann and Fischer (2011) analyzed the differences in customer usage of mobile technology / devices between intercity buses, long-distance trains and inland flights in the United States. They reveal that nearly half of all customers use some kind of mobile technology (e.g. smart phones, tablets, notebooks) with video and audio functions as well as Wi-Fi service while travelling in an intercity bus. Customers use it for in-bus entertainment, work, and communication to make the travelling time more comfortable and attractive. In contrast to intercity buses there is lots of published literature and specifica- tions of infotainment solutions, especially in the area of the automotive and the aircraft industry like Audi, BMW and Mercedes-Benz with infotainment solutions MMI, iDrive and COMAND Online as well as Lufthansa and Emirates with solu- tions BoardConnect and ice (see Audi AG 2014, BMW 2014, Mercedes-Benz 2013, LHSystems 2014a and Emirates 2014). There is an infotainment solution which is already used by Postbus (in Germany) and Greyhound (in the United States of America). This is Velimo from Lufthansa Systems, a guest and multimedia platform which combines hardware, software and multimedia content. Customers can con- nect with their personal electronic devices via Wi-Fi to the server and use the mul- timedia content such as movies, music, e-books or passenger information while traveling in the intercity buses (see LHSystems 2013, LHSystems 2014b, Deutsche Post Mobility 2014, Greyhound 2013 and Greyhound 2014). Moreover, there are other infotainment systems e.g. OmdisNet from Omdis Media GmbH, which offers customers nearly the same functions, infrastructure and multimedia content (see OmdisNet 2014a). Furthermore, Wen et al. (2005) analyzed the customer loyalty in intercity bus service in Taiwan and identified important factors that affect customer loyalty di- rectly or indirectly. Nine hypotheses were developed to proof these factors. They revealed that all hypotheses are confirmed and that the factors customer satisfaction and service quality have the most significant effect on customer loyalty in the con- text of intercity bus services. Shaaban and Khalil (2013) (for Qatar) as well as Poli- cani Freitas (2013) (for Brazil) assessed the quality of bus service and customer satisfaction. They also revealed that the service quality and the customer satisfaction are important factors for the customers’ reuse of bus transport and for making the intercity bus service more attractive. 3 Methodology One of the main goals of this study is to determine the customer requirements and preferences for an in-bus infotainment system as a basis to develop a well assessed concept for possible implementation in intercity buses. On the one hand, customers’ requirements are evaluated for deriving specific functions and the necessary tech- nology. On the other hand customers’ current satisfaction / dissatisfaction to exist- ing bus characteristics and features are measured to identify deficiency and to im- prove overall service quality. Quality norms as e.g. DIN EN 13816 for the measurement of service quality in public transport companies are used to identify relevant and important quality crite- ria such as availability, accessibility, comfort or safety. These quality criteria are used to determine the necessary questions and items for the later questionnaire de- velopment (see Winter 2005 and Meier 2005). Also dimensions and characteristics of the tool SERVQUAL are adapted based on Parasuraman et al. (1988) and recog- nized to identify and to classify several questions and items for analyzing and as- sessing customers’ preferences and opinions for already existent in-bus equipment as well as features. Direct questionnaires in running intercity buses are used to sur- vey the customers’ requirements towards in-bus infotainment (see figure 2). The customers are asked about their socio-demographic background, their behaviour during the bus ride, their satisfaction and importance of already existing bus equip- ment and about their willingness to pay for available and future in-bus infotainment equipment (technical, information and entertainment components). Through these questions the latent factors satisfaction, dissatisfaction, im- portance and willingness to pay are measured. The questions are based on a five point Likert scale and ranged from “Very unimportant/uninteresting” (-2) to “Very important/interesting” (+2) and “Very unsatisfied” (-2) to “Very satisfied” (+2). Respondents were also asked about
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