CHAPTER 1 INTRODUCTION 1 INTRODUCTION

1.1 Executive summary of the research

1.1.1 Focus and Justification for the Study

This study is an in-depth empirical investigation that seeks to compare consumer expectations to perceptions in the delivery of service within MSRTCs in the Ahmednagar District. It has its aim to develop a useful instrument to evaluate service quality by comparing consumer expectations to their perceptions of delivered service. An additional purpose is to determine MSRTC Depot managers' ability to predict consumer expectations in the area of service delivery.

The theoretical portion of the study focused upon a review of the history of Public Road transportation industry in India, Maharashtra and its Ahmednagar district, which is uniquely different from the Public road transportation systems of other states. The literature was also examined to review service quality and customer satisfaction. In order to examine methods to predict service quality in MSRTC, an investigation was carried out among consumers of MSRTC from Fourteen Tehsils of the Ahmednagar district of Maharashtra. The collection of the data was driven by six research hypotheses and involved two questionnaires. One questionnaire asks for customer expectations versus perceptions. A second questionnaire required the Depot managers of MSRTC to state their perceptions of what their consumers expected in the way of service delivery.

The main findings of the research built upon and extended the research by various researchers which noted that the three prime components of customer satisfaction revolved aroxmd three specific antecedents—^perceived quality, perceived value, and customer expectations, the study strongly reinforced and confirmed the importance of the three antecedents. This study indicated that while expectations are very high, perceptions are also high, but not as high as expectations. This study concluded that service quality was the most important factor in the selection of a MSRTC in the Ahmednagar district of Maharashtra. With no specific literature relating specifically to MSRTCs' perceptions of service delivery expectations by consumers, one of the most significant findings in this study noted that 77.3 percent of the responses to the questions indicated a match of MSRTCs' perceptions with consumers' expectations. While outcomes indicated that perceptions were equal to or greater than expectations, this does not conclusively prove that satisfactory service quality will tend to be associated with outcomes equal to or above expectations. This could indicate that the customers did not expect much in the way of outstanding service.

Based upon results obtained from surveys, there appears to be a high likelihood that a MSRTC could reasonably predict the retention of customers using the overlaid plots that in this study show high expectations and high perceptions. However, this study could not conclusively substantiate that gender, income, and education impact service quality in MSRTC.

Given the limited amount of literature relating to the delivery of service quality by Public road transport operators in India , this study provides both researchers and practitioners an empirical study of both consumers' and MSRTCs' expectations and perceptions of service delivery, which had not been fully explored in the past.

1.1.2 Research Aims and Objectives

The unique nature of the study revolves around customer expectations and perceptions of service quality in the delivery of Transport services by MSRTC, The aim of this study was to advance academic knowledge in an area that has had limited empirical study-customer expectations versus customer perceptions giving additional support to group discrimination.

Research problem

The research was undertaken to study the service quality of MSRTC in Ahmednagar district. The i-esearcher tried to find answer to following research questions.

1. Whether selection of MSRTC by customer was strongly influenced by service quality. 2. Whether service quality was more important in the selection process than location, advertising, recommendation of others and fare. 3. What are the expectations of the customers from MSRTC? 4. What are the perceptions of the customers about performance of MSRTC? 5. What are the perceptions of MSRTC about the expectations of the customers? 6. What are the factors which affects selection of MSRTC? 7. Whether Differences in gender, age, income, and education would have a significant impact on service quality perceptions and service quality expectations.

Objectives of the Research

1. To study whether selection of MSRTC by customer was strongly influenced by service quality. 2. To study whether service quality was more important in the selection process than location, advertising, recommendation of others and fare. 3. To study Customer's Expectations from MSRTC in Ahmednagar district. 4. To study Customers' Perception about performance of MSRTC in Ahmednagar district. 5. To study MSRTC's perceptions of customers' expectations. 6. To determine if satisfactory service quality would tend to be associated with outcomes equal to or above customer expectations. 7. To study impact of differences in gender, age, income, and education service quality perceptions and service quality expectations. 8. To study Performance of MSRTC in Ahmednagar district.

Scope of the Research a) The scope of the research covers the entire Ahmednagar district having 14 tehsils. b) The scope of the research covers customers of MSRTC from Ahmednagar district. c) The scope of the research covers Depot managers and stand in charge of MSRTC from Ahmednagar division. d) The scope of the research covers measuring service quality of MSRTC using SERVQUAL model developed by Parasuraman et al. e) Scope of MSRTC Ahmednagar division performance analysis was related to only following parameters.

4 Schedule operated Effective kms. !n lakhs: Earnings (traffic) in lakhs Rs. Load factor (%) : Earnings per kilometer in paisa. (EPKM in ps.) ; Cost per kilometer in paisa (CPKM in ps.); Margin (+)/!oss (-) per kilometer in paisa (Margin/km ps.) ; .Rate of breakdown per 10.000 kilometers ; Rate of accidents per lakh kilometers ; Cancelled kilometers in lakhs : Average bus-staff ratio. ; Average off road vehicles

1.1.3 Research Design and Methodology

Tvpc of research:

Exploratory and Descriptive Research -..' . 'i;

Data used for research: , >'

Primary and secondary data

Data collection method:

Field research -Cross sectional Sample survey, observation and desk research.

Sources for data collection:

Primary data was collected from MSRTC passengers and MSRTC Depot managers/Stand in charges.

Secondary data was collected from Books .journals. MSRTC website. MSRTC Divisional office, MSRTC Central oftlce. MSR'fC Passengers associations, Ahmednagar District official website. Central Institute of Road fransport. Pune, Central Training institute ,MSR'1C. Pune, ASRTLf Delhi.

Sampling technique: Stratified random sampling technique was used .

Research instrument used: Modified SERVQUAL questionnaire is used

Statistical tools used for Data analysis: SPSS 16 software, labulatioii. Graphs, Charts and figures are used for analysis of data.

Statistical tests used: Percentage, frequency, mean, standard deviation, paired sample t teat, spearman correlation coefficient, anova tests are used for analysis oi'data. Sampling Design: The research sample consists of MSRTC passengers from fourteen tehsils of Ahmednagar district. Total 546 Passengers travelling from MSRTC Buses were surveyed .A list of the Tehsils and MSRTC Depots are set out in Appendix 1,

Total fifteen Depot managers of MSRTC Depots from each of the tehsils were asked to complete the MSRTC's questionnaire, and return it directly to the researcher. The resulting research sample represented fourteen tehsils with response of 100 percent.

1.1.4 Structure of the Study.

The study was organized into a total of seven chapters to order the study to sequentially flow to conclusion.

Chapter 1

It has its main thrust to set the scenes of the study. First, it informs the audience about the focus, value, and justification for the study, and secondly, it focused on the extensive lack of knowledge on predicting customer retention as a result of service quality. Third, it specified the reasons why the study focused on MSRTC in the Ahmednagar district of Maharashtra, India. Fourth, it presented the aim of the study and the research objectives, and concluded by giving an overview of the remaining chapters of the studyr—

Chapter 2

It is dedicated to a review of the literature in the area of customer satisfaction with a three-fold aim of examining and exposing customer loyalty, customer retention, and customer relationship management. First a discussion of the evolution of the literature on customer satisfaction mih its primary elements—customer loyalty, customer retention, and customer relationships was presented. Finally, the chapter concludes by providing concepts that indicate the interrelationships of customer loyalty, customer retention, and customer relationship management and how they impact the customer satisfaction aspects of service quality. The chapter concludes by focusing on the conceptual frameworko f the study and a summary of the research issues. Chapter 3

Upon completion of the review of the literature, the study sought a direction for the research methodology. Most of the literature related to non-Public road transportation in the study of service quality. There were no publicly available standard scales for measiuing p^ceived quality in Public road transport industry. Therefore, it was necessary to determine a study or studies that would work best to formulate an empirical study instrument. The third chapter was utilized to discuss the research metliods, techniques, and procedures utilized to empirically test the model. The cfe^^ then turns to the need to have the ability to measure service quality for customer retention. It was determined that the modified SERVQUAL instrument provided an excellent device to measure perceived q^ity in MSRTC.

The unique nature of the study is pointed out indicating how it revolves around customer expectations and perceptions of service, which was then evaluated against MSRTCs' perceptions of customer expectations of service quality. An additional test of data against certain unique characteristics of the customer is incorporated to give additional support to group discrimination is discussed. It concludes with the reliability, validity, and limitations of the research.

Chapter 4

Having established the methodology for the study, it was necessary to begin with a profile of the sample and of the respondents and the demographic data related thereto. The fourth chapter was utilized to present the data analysis.

Chapters

Chapter five deals with Research findings, Hypothesis testing and its implications.

Chapter 6

Chapter Six deals with conclusions. The sixth chapter brings together the qualitative and quantitative findings and discusses the most significant ones by comparing and contrasting them with the relevant literature. This chapter brings out the study's contribution to knowledge in several areas of service quality delivery. It also provides the detailed theoretical implications and sets out some unique practical implications of the study's main findings. Chapter 7

Last chapter deals with Recommendations based on research .The study then concludes by suggesting a future course for further research.

1J TRANSPORT

Transport (British English) or transportation (American English) is the movement of people and goods from one place to another. The term is derived from the Latin trans ("across") and portare ("to carry").

From the beginning of history, human sensitivity has revealed an urge for mobility -leading to a measure of Society's progress. The history of this mobility or transport is the history of civilization. For any country to develop with right momentum modem and efficient transport as a basic infrastructure is a must. It has been seen throughout the history of any natiqn that a proper, extensive and efficient road transport has played a major role. 'Transporters' perform one of the most important activities, at every stage of advanced civilization. Where roads are considered as veins and arteries of a nation, passenger and goods transported are likened to blood in circulation. Passenger Road Transport Service (PRTS) is an essential connected to the economic development. Transport is the essential convenience with which people not just connect but progress. Throughout history, people's progress has been sustained on the convenience, speed and safety of the modes of transport. Road transport occupies a primary place in to-day's world as it provides a reach unparallel by any other contemporary mode of transport.

1.2.1 FUNCTIONS OF TRANSPORT

1. Transport contributes in growth of industries whose product requires quick marketing. Perishable articles like fish and green vegetables are carried to various consumers quickly even in distant markets through transport.

2. Transport helps in increase in the demand for goods. Through transport newer customers in newer places can be easily contacted and products can be introduced to them. Today markets have become national or international only because of transport.

3. Transport creates place utility. Geographical and climatic factors force industries to be located in particular places far away from the markets and places where there may

8 not be any demand for the products. Transport bridges the gap between production and consumption centers.

4. Transport creates time utility. Of late transport has started creating the time utility also. It has been made possible by virtue of the improvements in the speed of transport. It helps the product to be distributed in the minimum possible time.

5. Transport helps in stabilization of price. Transport exerts considerable influence vpoa the stabili2ation of the prices of several commodities by moving commodities j&MB surplus to deficit areas. This equalizes the supply and demand factor sand makes tile price of commodities stable as well as equal.

6. Transport ensures even flow of commodities into the hands of the consumers throughout the period of consumption.

7. Transport enables the consumers to enjoy the benefits of goods not produced locally. This increases the standard of living, an essential factor for further development of marketing and economy.

8. Transport identifies competition, which in turn, reduces prices. Prices are also reduced because of the facilities offered by transport for large-scale production. Advantages of large-scale production are possible only due to transport.

9. Transport increases mobility of labor and capital. It makes people of one place migrate to other places in search of jobs. Even capital, machineries and equipments are imported firom foreign countries through transport alone.

1.2.2MEANS OF TRANSPORT

The means of transport are classified on the basis of the way, the vehicle, the motive power used and terminals. There are three basic means of Transport.

Land Transport

Water Transport

Air Transport Chart 1.1

Means of Transport

Head loads Pathways Pack animals

Vehicular Land Roadways Transport Nonvehicular Tramways Passenger trains Railways '< Goods trains

Canal Modes of Transport Transport Inland water transport « River Water transport Transport Coastal shipping Liners Ocean J transport / Overseas Trams for shipping Y cargo Passengers K\ Air \ Tankers for Transport oil Cargo

10 1. LAND TRANSPORT

Land Transport may be classified as

Chart L2

1 Pathways

J '

1 Head 1 Pack Non Passenger Goods Vehicular 1 loads 1 Animals vehicular Trains Trains

Modes of Land Transport

Pathways:

In remote villages, forest and hilly areas pathways are still an important amongst the different modes of transport. It further be subdivided into Head loads (is also knovm as human transport. It is used in the hilly areas where even animals cannot reach) and Pack animals (is also known as animal transport. It is used in the backward areas. The animals like horse, pony, donkey, ass, buffaloes, camel, elephant, yak, sheep etc. are used for this purpose.

Roadways:

Road Transport is one of the most important modes of transport. The history of Road Transport started from ancient civilizations. Gradually it becomes more and more popular means of transport. Road Transport further subdivided into Vehicular Transport (Cars, Trucks, Buses, Lorries, Auto ricksaws, Bullock Carts, Tongas,

11 Txuntums, and Hand Carts etc.) and Non-vehicular Transport (Hamals, Animals like Camel, Dogs, Elephant, Horse, Mules etc.)

Tramways:

Tramway is one of the cheaper, longer, quicker and safer modes of Land Transport which is suitable in large cities. However due to certain limitations like slowly ness, huge investment, inflexibility etc. gradually it replaced by other means of Land Transport.

Railways:

Railway has been the pioneer of modem mechanical transport. It has brought the greatest revolution in transport. It accelerated commercial and industrial development of various countries. Until the introduction of Motor Transport, Railway had the monopoly as the Land Transport. In India, it is the principal means of transport. It carries over 80 per cent of goods traffic and over 70 per cent of passenger traffic. It provides for more than 60000 kilometers of railways all over the country.

12 2. WATER TRANSPORT

Water transport is the cheapest and the oldest form of transport for heavy goods and bulk cargoes. Waterways are the natural gifts, hence it does not required large amount of capital expenditure for the construction of road and railway tracks, except canal transport, as in the case of land transport. In addition to that the cost of ruiming is also very less. Water transport may be classified as under:

Chart 1.3

An INLAND WATERWAYS

WaterTransport

I

1 Ocean 1 Transport

i: 1

Coastal 1 Overseas

Inland waterways may be subdivided into

A) River Transport:

Rivers are the water highways given by nature. River Transport is suitable for small boats and steamers. It was highly developed in the pre-railway days. But with the development of railways, river transport was neglected and decayed gradually.

Canal Transport:

Canals are the artificial waterways constructed for the purpose of navigation and irrigation.

13 B) OCEAN TRANSPORT

Ocean Transport or shipping may be subdivided into

Coastal Shipping:

Coastal shipping is a cheaper, speedy, flexible and economical form of transport for tiie movement of bulky and heavy cargoes. Usually coastal shipping trade is reserved for the national shipping. In India also firom 1951 and onwards the coastal shipping trade is extremely reserved for the national ships.

Ovieiseas Shipping:

On the basis of their working, overseas shipping may be divided into The Liner (those ships which follow defined routes with fixed places and fixed time table). The Tramps (those ships which have no set routes or fixedtim e table) and The Oil Tanker (special sea carriers of crude oil in very large quantity). The Liners may again be subdivided into Passenger Liners and the Cargo Liners.

14 3. AIR TRANSPORT

Air transport is the gift of twentieth century to the world. It is the latest means of transport. The first flight in the air was made in 1903.only for twelve seconds. Successfully it was used as a means of transport after the First World War (1914- 1918). The first air service was started in 1919 between London and Paris. Since then it has made notable progress and provide tough competition to Railways. Air Transport can again be subdivided into passenger and cargo.

Chart 1.4

Means of Air Transport

15 1.2.3 TRANSPORTATION IN INDIA

A well-knit and coordinated system of transport plays an important role in the sustained economic growth of a country. The transport system in India comprises a number of distinct modes and services, notably railways, roads, road transport,, ports, inland water transport, coastal shipping, airports, and airlines. Railways and roads are the dominant means of transport carrying more than 95% of total traffic generated in the country. Although other modes such as coastal shipping and inland water transport would play a greater role, the railways and roads would continue to dominate the transport Imidscape in the foreseeable future.

1. Road Transport in India

A good road network is a critical infrastructure requirement for rapid growth. It provides connectivity to remote areas; provides accessibility to markets, schools, and hospitals; and opens up backward regions to trade and investment. Roads also play an important role in inter-modal transport development, establishing links with airports, railway stations, and ports. India has one of the largest road networks in the world, of 33.14 lakh km, consisting of (i) national highways (NHs), (ii) State highways (SHs), (iii) major district roads (MDRs), and (iv) RRs that include other district roads and village roads. NHs with a length of 79,243 km comprises only 2.0% of the road network but carry 40% of the road-based traffic. SHs with a length of about 1,54,522 km and MDRs with a length of 25,77,396 km together constitute the secondary system of road transportation which contributes significantly to the development of the rural economy and industrial growth of the country. The secondary system also carries about 40% of the total road traffic, although it constitutes about 13% of the total road length. RRs, once adequately developed and maintained, hold the potential to provide rural connectivity vital for generating higher agricultural incomes and productive employment opportunities besides promoting access to economic and social services.

16 Table

Status of National Highways as on 31st March, 2012

No. Roads/Ways Length (Km.)

1 Expressways 1.000

2 National Highways 79.243

X\ National Highways (Already 4/6 lancd) 16.000

/ --••/. 4 National Highways (Being 4/6 laned) 2.X000

5 State Highways 154.522

6 Major District Roads 2.577.396

7 Rural and Other Roads 26.50.000

Source; National Highways Authority of India

Tlie transport demand for freight and passenger movement within the countr\' is met mainly through road transport and railways. Between these two modes, road transport has steadily expanded its scope of operation and is now not merely a mode for the last haul but is also handling freight o\er long distances. It also pla\s a complementary role to railways in moving freight from and to railheads vis-a-vis the Origin- Destination movements of cargo. Its intermodal share in carrxing freight, which was around 14% in 1950-51. had increased to around 61% in 2004-05. The share of road transport in passenger movement has also witnessed a quantum jump from 15% in 1950-51 to an estimated 87% of the total traffic bv the end of the Tenth Plan.

17 ROAD NETWORK IN INDIA

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18 ROAD TRANSPORT IN MAHARASHTRA

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19 ROAD TRANSPORT IN AHMEDNAGAR DISTRICT

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20 2. Rail transport in India:

Railways are ideally suited for long distance travel and movement of bulk commodities. Regarded better than road transport in terms of energy efficiency, land use, environment impact and safety it is always in forefront during national ^nergency. Indian Railways, a historical legacy, are a vital force in our economy. Spanning nearly two centuries Indian Railways has been serving the country with utmost pride. It was only in 1851 when the first train ran in the country for hauling construction material in Roorkee and by 16th April 1853 the first passenger train sorvios became operational running between Bori Bunder, Bombay and Thane. Fourteen railway cfflriages carried about 400 guests from Bombay to Thane covering a distance of 21 miles, thus marking the formal birth of rail network in India. Since then there has been no looking back. It is interesting to note that though the railways were introduced to facilitate the commercial interest of the British it played an important role in unifying the country.

The Railways in India are the principal mode of transportation for freight and passengers. The railways have played an important role in the development of industries and agriculture. Indian railways consist of a vast network of 7031 stations spread over a route length of 65,000 km, of this 23,541 km is electrified, with a fleet of 9013 locomotives, 46,722 passenger coaches,5321 passenger service vehicles, 6,560 other coaching vehicles and 239281 wagons ,300 yards, 2300 good sheds, 700 repair shops, and 1. 307million work force. Indian Railways runs around 20,638 trains everyday, of which 12,617 are passenger trains as on 31st March 2013.

Indian railways, the largest rail network in Asia and the world's second largest under one mai^gem^t are also credited with having a multi gauge and multi traction system. The track kilometers in broad gauge (1676 mm) are 86526 kms, meter gauge (1000 mm) are 18529 kms and narrow gauge (762/610 mm) are 3651 kms.

Indian Railway has the distinction of being one of the biggest and busiest rail networks in the world carrying more than 16 million passengers and 11 Lakh tones of goods on a daily basis. In terms of headcount again Indian Railway scores as it employs more than 1.6 million employees that are only second to the Chinese Army in terms of people employed. The Indian Railways have been a great integrating force for more than 150 years. The Indian Railways network binds the social, cultural and 21 economical fabric of the country and covers the whole of country ranging from north to south and east to west removing the distance barrier for its people. The railway network of India has brought together the whole of country hence creating a feeling of unity among the Indians. It has helped the economic life of the country and helped in accelerating the development of industry and agriculture. The map follows:

Table 1.2

Status of Indian Railway as on 31 st March 2013

Indicators Unit Data

Total Route length Km 65,000

By Gauge route-km

Broad Gauge (1.676m) 56,000

Meter Gauge (1.000m) 7,000

Narrow Gauge (0.762) V 2,000

By Type route-km

Single Track 45,961

Double Track 16,555.09

Electrified 17,786

Three/Multiple Tracks 810.73

Total Track Km 109,996

Source: Indian railways website

22 RAIL NETWORK IN INDIA

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23 RAIL NETWORK IN MAHARASHTRA

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24 RAIL NETWORK IN AHMEDNAGAR DISTRICT (MAHARASHTRA)

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25 3. Water Transport in India:

India has a long coastline, about 90% of sea borne trade is handled via major ports of Kandla, Mumbai , Nhava Sheva, Marmagao, Cochin, Tuticorin, Chennai, Vishaks^abnam, Paradwip, Haldia, Goa and Kolkata. India is bordered by Bay of Bengal, Arabian Sea and Indian Ocean and has a coastline of more than 7,000 kms. It has an extensive network of inland waterways and seaports. The inland waterways include rivers, canals, backwaters and creeks. The total navigable length of inland waterways is 14,500 km. Inland Waterways Authority of India (IWAl) is the statutory author^ in chaise of the waterways in India. There are four national waterways in India: Allahabad Haldia stretch of the Ganga -Bhagirathi- Hooghly river, Sadiya Dhidni stretch of tiie Brahmaputra river system, KoUam Kottapuram stretch of West Cc^ist Canal along with Champakara canal and Udyogmandal canal and Kakinada Puducheiry stretch of the Krisna-Godavari river. These waterways also attract tourists from all parts of the world, thus promoting Indian travel & Tourism. There are also many hotels and resorts in these areas to cater to the lodging needs of the tourists. There are 12 major ports and about 180 minor and intermediate ports in India. With the ports handling more than 95% of the trade in India, they act as the major gateway for trade. The major ports in India are Calcutta, Haldia, Paradip, Visakhapatanam, Ennore, Chennai, Tuticorin, Cochin, New Mangalore, Mormugao, JNPT, Mvimbai and Kandla. The map follows

Table 1.3 Status of Indian Waterways as on 31 st March 2012

National Waterways Distance CargoMoved Remark (kms.) (Lakh Tons)

National Waterway 1 1620 7.31 AUahabad-Haldia stretch

Nati^irt Waterway 2 891 0.06 Sadiya-Dhubri stretch

National Waterway 3 205 11.12 Kottapuram-KoUam stretch

National Waterway 4 1095 N.A.(New) Kakainada-Puducherry stretch

Total 3811 18.49

Source : Inland Waterways Authority of India

26 WATER NETWORK IN INDIA

Important Inland Waterways in India M

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27 4. Air Transport in India:

Air travel is a fastest means to reach in any part of the world. Domestic air services are looked after by Indian airlines and private airlines while the international airport service is looked after by Air India. Mumbai, Chennai, Kolkata and Delhi are the four major international airports of India Air transport being the most modem and the quicloest mode of transport has been gaining popularity. However, the exorbitant rates have made it the mode of travel of the rich or of the business commimity for whom time is more expensive than air travel. But the entry of private Airlines and their various sch^nes have reduced airfare drastically. The recent tax relaxation on air fuel and stidh sops will ftather make air travel within the reach of a greater section of the Indian Pqjulace. India had bilateral air services agreements with 93 countries as on May 31, 1999. Air India Limited is the major international carrier of the country. It operates services to USA, Europe, Russia, the GulCMiddle East, East Asia, Far East and Afiica. Air India owns a fleet of 26 aircraft consisting of six B-747-200, two 3747-300 (Combi), seven B747-400, three A 300-B4 and eight A 310-300 aircraft. During 1998-99, Air India carried 3.15 million passengers as against 3.06 million in 1997-98. Indian Airlines is the major domestic air carrier of the country. It operates to 57 domestic stations (including AlUance Air operations) and 17 international stations in 14 countries, viz., Pakistan, Maldives, Nepal, Sri Lanka, Malaysia, Bangladesh, Thailand, Singapore, UAE, Oman, Myanmar, Kuwait, Qatar and Bahrain. Its operations, including Alliance Air cover 76 destinations including 16 abroad. The Airlines owns a fleet of eleven A-300, thirty A-320, twelve B- 737 and three Domier - 228 aircraft. All Boeing B-737 aircrafts are being operated by its wholly owned subsidiary Alliance Air. The domestic scene is now dotted with private airlines as the government has now very wisely ended the monopoly of Indian Airlines. The International service is however, still the monopoly of Air India as the private operatois are oiily allowed to operate within the country. Some of the leading domestic private airlines are Air Sahara, Jet Airways, Go Air, Spice jet and Air Deccan. The government has been in the process of disinvestment of both Indian Airlines and Air India for the bettemient of services. Pawan Hans Helicopters Limited has been providing helicopter support services to the petroleum sector including ONGC, Oil India Limited and Hardy Exploration at Chennai. Apart from these, it also provides services to certain state governments and public sector undertakings and in

28 the northeastern states. Foreign airlines carrying international passenger traffic to and from India existed long before Independence. Their operations are governed by bilateral agreements signed from time to time between the Government of India and the governments of respective countries. In 1980-81, the number of such airlines was 35. It rose to 49 in 1996-97.The share of foreign airlines in India's scheduled international traffic has increased. In 1971, their share was 55.58 per cent, which went up to 65 per cent and declined to 58 per cent during 1972-75. It fell to 55.72 per cent in 1976 and further to 55.02 per cent in 1977. Between 1978 and 1990 it gradually ina%aS4$d atld r^e to 75.93 per cent. In 1996, the share was nearly 72 per cent. The dfvelc^iSH^ of airports is no longer solely under the public sector; instead private ptrticipic^on is allowed and encouraged. An International green field airport has been develqped in Cochin, Kerala, with contributions from NRIs and loans from financial institutions. Approval for the reconstruction of four Metro Airports ( Delhi, Mumbai, Kolkata and Ctennai) has been given to make them world class. New International mrports are to be set up in Banglore, Hyderabad and Goa with the help of the private sector.In the past few years, several investments have been made in the Indian air industry to make vise of its vast unutilized air transport network. Many low cost air carriers have also entered the Indian market in the past two to three years.

29 AIR NETWORK IN INDIA

www. mmp»ofindia. com Air Network in India

Bay of Bengal

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30 Thus, Road transport is vital to the economic development and social integration of the country. Road transport fulfils a major role in the Indian economy involving a wide range of industries and services from vehicle manufacturers and suppliers to infrastructure builders, services, energy providers, public authorities, insurance md many others. Road transport, together with the other modes of transport, provides indispensable mobility for all citizens and goods and contributes to the economic prosperity of a nation. It is a key factor to social, regional and economic cohesion, including the development of rural areas. However, the impact of road transport on the environment and health remains a major challenge in many aspects. Easy accessibility, flexibility of operations, door-to-door service and reliability have earned road Lamport an increasingly higher share of both passenger and freight traffic vis-a­ vis Other transport modes. In addition to these factors, transit time, availability of capacity on alternative modes, quality and reliability of the service, associated costs like warehousing and demurrage etc. all influence the choice of the mode of transport. The alternative modes of transport viz. roadways, railways, waterways, airways, mass transit etc., each contribute to the transportation requirements of the economy. Transport sector accounts for a share of 6.5 per cent in India's Gross Domestic Product (GDP). The composition of various sub-sectors of the transport sector in terms of GDP is given in Table 1.4 as under:

Table 1.4

Sime of Different Modes of Transport in GDP

Sector 2004- 2005 2006- 2007- 2008- 2009- 2010- 2011- 05 07 08 09 10 11 12 06 As percentage of GDP (at factor cost anc constant prices) Transport 6.6 6.5 6.4 6.7 6.6 6.5 6.4 6.5 Railways 1.2 1.2 1.2 1.0 1.0 1.0 1.0 1.0 Road 4.5 4.5 4.5 4.7 4.8 4.6 4.6 4.8 Water 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Air 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 Services 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.4 Source: www.morth.nic.in

31 1.2.4 PUBLIC TRANSPORTATION

Public transport (or public transportation, public transit or mass transit) comprises passenger transportation services which are available for use by the general public, as opposed to modes for private use such as automobiles or vehicles for hire. Some services are free though most charge some sort of fare.

Public transportation can consist of subways, trolleys and light rail, commuter trains, van pool services, paratran sit services for senior citizens and people with disabilities, ferries, water taxis, or monorails.

Public transport is provided by a company or authority that operate a fleet of vehicles. They may or may not be regulated or subsidized by authorities. The infrastructure used may be exclusive, or shared with private vehicles.

1.2.4.1Histoiy of public transportation

Conveyances for public hire are as old as the first ferries, and the earliest public transport was water transport: on land people walked or rode an animal. This form of transport is part of Greek mythology — corpses in ancient Greece were buried with a coin vmdemeath their tongue to pay the ferryman Charon to take them to Hades.

Some historical forms of public transport are the stagecoach, traveling a fixed route from inn to inn, and the horse-drawn boat carrying paying passengers, which was a feature of canals from their 17th-century origins.

The oiliQibus, the first organized public transit system within a city, appears to have origin^ed in Nantes, France, in 1826 and was introduced to London in July 1829.

There is also a claim fiom the UK where in 1824 John Greenwood operated the first "bus route" from Market Street in Manchester to Pendleton in Salford.

In New York, omnibus service also began in 1829, when Abraham Brower, an entrepreneur who had organized volunteer fire companies, established a route along Broadway starting at Bowling Green. Other American cities soon followed suit: Philadelphia in 1831, Boston in 1835 and Baltimore in 1844. In most cases, the city governments granted a private company—generally a small stableman already in the livery or freight-hauling business—^an exclusive franchise to operate public coaches

32 along a specified route. In return, the company agreed to maintain certain minimum levels of service. In 1831, New Yorker Washington Irving remarked of Britain's Reform Act (finally passed in 1832): "The great reform omnibus moves but slowly." Steam buses emerged in the 1830s as competition to the horse drawn buses.

The omnibus encouraged urbanization. Socially, the omnibus put city-dwellers, even if for only half an hour, into previously-unheard-of physical intimacy with strangers, squeezing them together knee-to-knee. Only the very poor remained excluded. A new division in urban society now came to the fore, dividing those who kept carriages fiwm lliose who did not. The idea of the "carriage trade", the folk who never set foot in the streets, who had goods brought out fi-omth e shops for their appraisal, has its origins in the omnibus crush.

The omnibus also extended the reach of the emerging cities. The walk fi-om the former village of Paddington to the business heart of London in the "City" was a long one, even for a young man in good condition. The omnibus thus offered the suburbs more access to the inner city.

More intense urbanization was to follow. Within a very few years, the New York omnibus had a rival in the streetcar: the first streetcar ran along The Bowery, which offered the excellent improvement in amenity of riding on smooth iron rails rather than clattering over granite sets, called "Belgian blocks". The new streetcars were financed by John Mason, a wealthy banker, and built by an Irish-American contractor, John Stephenson.

Bus lines proliferated in the UrS. as streetcar lines were torn out of the major cities and transit services became associated with bus manufacturers and oil companies whose goal was the replacement of rail service with buses. This was accompanied by a continuing series of technical improvements: pneumatic "balloon" tires during the early 1920s, monologue body construction in 1931, automatic transmission in 1936, the diesel-engine bus in 1936, the first acceptable 50+ passenger bus in 1948, and the first buses with air suspension in 1953.

The arrest of Rosa Parks in 1955 for not giving up her seat to a white man on a public bus is considered one of the catalyst events of the Afiican-American Civil Rights Movement of the United States.

33 1.2.4.2 Ownership and legal issues

Public transport bus operation is differentiated from other bus operation by the fact the owner or driver of a bus is employed by or contracted to an organisation whose main public duty or commercial interest is to provide a public transport service for passengers to turn up and use, rather than fulfilling private contracts between the bus operator and user. Public transport buses are operated as a common carrier vmder a contract of carriage between the passenger and the operator.

The owners of public transport buses may be the mimicipal authority or transit authority that operates them, or they may be owned by individuals or private companies who operate them on behalf of the authorities on a franchise or contract basis. Other bxises may be run entirely as private concerns, either on an owner-driver basis, or as multi-national transport groups. Some countries have specifically deregulated their bus services, allowing private operators to provide public bus services. In this case, an authority may make up the shortfall in levels of private service provision by funding or operating 'socially necessary' services, such as early or late services, on the weekends, or less busy routes. Ownership/operation of public transport buses can also take the form of a charitable operation or not for profit social enterprises.

In all cases in the developed world, public transport bus services are usually subject to some form of legal control in terms of vehicle safety standards and method of operation, and possibly the level of fares charged and routes operated. Service levels and accessibility

The majority of public bus services are basic and utilitarian, designed to perform their main function of mass transport. Some services are nearer to the environment of private motorists, with comfortable seating and interior entertainments systems, marketed as premium or luxury services. Some services have attempted to emulate the low cost airlines with no fnlls bus services. In the 2000s, Mega bus entered the long distance coach market, initially using transit buses, but eventually moving to coaches. In competitive systems, an incumbent operator may introduce a "low cost unit" with lower wages to offer lower fares, using older buses cascaded from a main fleet. This may be in response to real competition, or to meet divergent market needs.

34 Increasingly in some countries, public bus services are being made accessible, often in response to regulations and recommendations laid out in disability discrimination laws. This has resulted in the introduction of flexible bus services, and the introduction of accessible buses with features aimed at helping elderly, disabled or impaired passengers.

The level and reliability of bus services in coimtries around the world is often dependant on the quality of the local road network and levels of traffic congestion, and the prevalent population density. Services may be organised on tightly regulated networks with restrictions on when and where services operate, while other services are operated on an ad-hoc basis in the model of share taxis.

1.2.4.3 Types of service

The names of different types of bus services vary around the world according to local tradition or marketing, although services can be classified into basic types based on route length, frequency, purpose of use and type of bus used.

Urban or suburban services is the most common type of public transport bus service, and is used to transport large nimibers of people in urban areas, or to and from the suburbs to population centers. These services are often organised on a network basis centered on an urban centre of a town, or across a city, and may involve universal liveries, or specific route branded buses. The predominant bus type used on these services is the transit bus, also referred to in this context as a commuter bus or city bus. Longer distance services may utilise dual purpose buses or even minimally appointed coaches. These services generally complement tram, rapid transit or urban rail systems, and will often be integrated with these modes in transport interchanges, as well as making heavy use of on street bus stops and bus stations.

Rural bus services are similar to urban or suburban services, but often with a lower fi^quency or using smaller vehicles. Rural services may also more often be operated using dual purpose buses or minimally appointed coaches.

35 Express bus services are services that are intended to run faster than normal bus services, by either operating as a "limited stop" service missing out less busy stops, and/or travelling on faster roads such as freeways rather than slower moving local roads. These services can be complementary in length to normal city bus routes, and as such may use the same city buses but with a different route number. They can also be longer interurban services

Interurtoi bus services are primarily aimed at linking together one or more urban centers, and as such are often run as express services while travelling in the intermediate rural areas, or even only call at two terminal points as a long distance shuttle service. Some interurban services may be operated as high specification luxury services, using coaches, in order to compete with railways, or link areas not rail connected. Interurban services may often terminate in central bus stations rather than on street stops. Other interurban services may specifically call at intermediate villages and may use slower transit buses or dual purpose buses.

Commuter coach services are designed to link commuter towns to the nearest large city, on routes of between one and up to three hours long. As such, these are almost exclusively operated using coaches on an express basis, although even these services will call at smdler villages. These are often run at specific early morning / late evening times, although the busiest routes may be regular, operating as an interurban service in off peak times.

Night bus services are often implemented in rurban areas, for operation generally after the last evening service, and before the first early morning service, to serve the nighttime economy. A night bus network will generally employ a more basic route network, and less fi«quent bus services. The busiest areas may not have a night bus network, in favour of 24-hour bus route, or 24 hour routes may operate as well as specific night bus services.

Long distance coach services are bus services operated over long distances between cities. These services can form the mainstay of the travel network in countries with poor railway infrastructure. Different coach operators may band together on a fi^nchise or connecting basis to offer a branded network that covers large distances, such as Trail ways and National Express. These networks can even operate internationally, such as Eurolines of Europe. 36 Shuttle bus services are any type of bus service intended primarily to shuttle passengers between two fixed points. These can be bus or coach operated, but are usually short or medium distance journeys taking less than an hour. Shuttle buses will usually link with other transport hubs, such as airport shuttle buses. A common use of a shuttle bus is in towns or cities with multiple terminal train stations or bus stations, for passenger interconnections. "Shuttle" as a brand name is applied variously across sevCTal types of service.

Rail replacement bus services are often chartered by railway companies as alternate means of transport for rail passengers. This can be pre-planned to cover for scheduled track maintenance or other planned closures, or to cover for unplanned closures such as derailments.

Feeder bus services are designed to pick up passengers in a certain locality, and take them to a transfer point where they make an onward journey on a trunk service. This can be another bus, or a rail based service such as a tram, rapid transit or train. Feeder buses may act as part of a wider local network, or a regional coach network.

Post bus services are services that also carry mail, often on rural routes.

Park and ride bus services are designed to provide an onward passenger journey from a parking lot. These may shuttle or express services, or part of the standard bus network.

School bus services transport children to and from school. While many countries and school districts organise their own services, as school buses or charter buses, in some areas school bus services are implemented as special journeys on the normal public timetable, specially timed and routed to arrive and depart in coordination with the school bell

37 1.2.4.4 Fixed and flexiblebu s services

Buses in public transport are usually run to a fixed route and schedule, serving specified bus stops or bus stations. Some services may be semi-flexible in that they can vary where they stop on a fixed route by operating in a hail and ride manner. The route and schedule of some services may also be flexiblet o some degree. Historically, some share taxi services have operated as a form of flexible public bus service. Another flexible type of service is the Hong Kong red public light bus. Demand responsive transport (DRT) bus services are modem bus services designed to be more flexible than fixed route services. These will often, but not exclusively, use smaller minibus or midibuses, and will operate a flexible route set by passenger need, allowing the pre-booking of pick up points. Para transit bus services are bus services designed to provide service for members of the public with mobility issues that mean they cannot use normal public services, usually. either the disabled or elderly. Paratransit operates in a similar manner to demand responsive transport (DRT) (and was historically the name for DRT in the US), but paratrarisit services require users to register or otherwise qualify to be allowed to use the services, whereas DRT is designed to be available to all. In some cases, DRT and paratransit services are combined and operated by the same operator.

1.2.4.5 Scheduling

Many public bus services are run to a specific timetable giving specific times of departure and arrival at waypoints along the route. These are often difficult to maintain in the event of traffic congestion, breakdowns, on/off bus incidents, road blockages or bad weather. Predictable effects such as morning and evening rush hour traffic are often accounted for in timetables using past experience of the effects, although this then prevents the opportunity for drafting a 'clock face' timetable where the time of a bus is predictable at any time through the day. Predictable short term increases in passenger numbers may be dealt with by providing "duplicate" buses, where two or more buses operate the same slot in the timetable. Unpredictable problems resulting in delays and gaps in the timetabled service may be dealt with by 'turning' a bus early before it reaches it terminus, so that it can fill a gap in the opposite direction, meaning any passengers on the turned bus need to disembark and continue on a following bus. Also, depending on the location of the bus depot,

38 replacement buses may be dispatched from the depot to fill in other gaps, starting the timetable part way along the route.

There is a common cliche that you "wait all day, and then three come along at once", in relation to a phenomenon where evenly timetabled public transport bus services can develop a gap in service followed by buses turning up almost simultaneously. This occurs when the rush hour begins and numbers of passengers at a stop increases, increasing the loading time, and thus delays in the timetable. The following bus then catches up with that bus because it begins to be delayed less at stops due to less passoigers waiting.

Some services may have no specific departure time based schedule, and instead will operate to a timetable that merely specifies what specific frequency of service exists on each route at particular phases of the day. This may be specified with departure times, but the over-riding factor is ensuring the regularity of buses arriving at stops. These are often the more frequent services, up to the busiest bus i^id transit schemes. For headway based schemes, probl^ns can be managed by changing speed, delaying at stops and leap-fogging a bus boarding at a stop.

Services may be strictly regulated in terms of level of adherence to timetables, and how often timetables may be changed. Operators and authorities may employ on street bus inspectors to monitor adherence in real time. Service operators often have a control room, or in the case of large operations, route controllers, who can monitor the level of service on routes and can take remedial action if problems occur. This was made easier with the technological advances of two way radio contact with drivers, and vehicle tracking systems.

1.2.4.6 Fare models

Public transport bus drivers may be required to conduct fare collection, inspect a travel pass or free travel passes, or oversee stored-value card debiting. This may « require the fittingo f equipment to the bus. Alternatively, this duty and equipment may be delegated to a conductor who rides on the bus. In other areas, public transport buses may operate on a zero-fare basis, or ticket validation may be through use of on­ board/off-board proof-of-payment systems, checked by roving ticket controllers who board and alight buses at random.

39 1.2.4.7 IMPACT ^.: /j;./ , . LIS ill'•'. • / '.•-7.1 > 1.2.4.7.1 Area \- -'; - ''

Public transport infrastructure is considerably more dense than tliat of private transport, allowing cities to he built more compactly than if they were dependent on automobile transport. If public transport planning is at the core of urban planning, it wili also force cities to be built more compactly to create efficient feeds into the stations and stops of transport. This will at the same time allow the creation of centers around the hubs, serving passengers' need for their daily commercial needs and public services. This approach significantly reduces sprawl.

1.2.4.7.2 Social

An important social role played by public transport is to ensure that all members of society are able to travel, not just those with a driving license and access to an automobile—which include groups such as the young, the old. the poor, many medical conditions or people banned from driving. Automobile dependency is a name given by policy makers to places where the those without access to a private vehicle do not have access to independent mobility.

1.2.4.7.3Economic ^l7l (-^3 ^ ^

Public transport allows transport at an economy of scale not available through private transport. Through stimulating public transport it is possible to reduce the total transport cost for the public. Time costs can also be reduced as cars removed from the road through public transit options translate to less congestion and faster speeds for remaining motorists. Transit-oriented development can both improxe the useililness and efficiency of the public transit system as well as result in increased business for commercial developments.

Well-designed transit systems can have a positive effect on real estate prices. The Hong Kong metro MTR generates a profit by redeveloping land around its stations. Much public opposition to new transit construction can be based on the concern about the impact on neighborhoods of this new economic development. Few localities have the ability to seize and reassign development rights to a private transit operator, as

40 Hong Kong has done. Increased land desirability has resulted around stations in places such as Washington, D.C.

Conversely, the existence of a transit system can lower land values, either through perceived influence on a region's demographics and crime rate or simply through ambient noise the system creates.

1.2.4.7.4 Environmental

A 2008 study by the Brookings Institution and the American Enterprise Institute found that public transportation in the U.S uses approximately half the fuel required by cars, SUV's and light trucks. In addition, the study noted that "private vehicles emit about 95 percent more carbon monoxide, 92 percent more volatile organic compounds and about twice as much carbon dioxide and nitrogen oxide than public vehicles for every passenger mile traveled".

A 2008 study from Lancaster University concluded that there was no environmental benefit to be gained from persuading car or plane travellers to switch to trains. The study showed that trains had failed to keep up with the advances that the automotive and aviation industries had made in improved fuel efficiency. Express trains travelling from London to Edinburgh consumed 11.5 litres more fiiel per seat than a modem diesel car and Pendolino trains weigh more per seat than the Airbus A380 airliner. A representative from Modem Railways magazine was reported as having said: I know this will generate howls of protest, but at present a family of four going by car is about as environmentally friendly as you can get.

Studies have shown that there is a strong inverse correlation between urban population density and energy consumption per capita, and that public transport could play a key role in increasing urban population densities, and thus reduce travel distances and fossil fuel consumption.

41 1.3 SERVICES

1 J.l. SERVICES: MEANING AND DEFINITION

Any activity that involves Deed (act), wherein Processes are followed which results in Performances is a service

As per AMA Services are defined as "activities, benefits or satisfactions which are offered for sale or provided in connection with the sale of goods".

As pCT Philip Kotler and Bloom services is defined as "any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product".

132 CHARACTERISTICS OF SERVICES

Intangibility - Services are intangible (which you cannot hold)

Inseparability - you cannot separate production and consumption

Inconsistency - Services are different every time

Perishability - Services perishes immediately

Customer participation - For delivery customer involvement is as important as is of the service provider.

No ownership - we cannot hold on to it. Cannot own it.

42 1.3.3 SERVICES MARKETING MIX

Product

Service is an intangible product. It consists of a bundle of features and benefits that have relevance to a specific target market. There is high level of flexibility and OK>ortunity to be innovative in designing product offer.

Place

Services are intangible as well as inseparable. So it cannot follow the same channel as goods marketing.

Production, distribution and consumption take place simultaneously in the services industry. However services have an advantage of used direct selling approach at a low cost.

There are other channels of distribution like agents, brokers, franchisers and electronic channels that are used for distribution of services.

Price

The pricing decision is critical in services too, as this component alone determines the revenue of the firm. Consumer sensitivity is higher in services than in goods. The pricing strategies for services depend upon value perceptions of various groups of people that are targeted by the service firms.

Promotion

Consumers are co-producers in the service business. The quality of service will not only depend upon the performance of the service provider but also on the performance of the service consumer.

It is the responsibility of the service organizations to educate and if necessary, train customers so as to make them use the services efficiently.

A well designed service promotion programme is of immense help to the organisation to inform, persuade and train customers to better their experiences.

43 People

• All of the human actors participating in the delivery of a service provide cues to the customer regarding the nature of the service itself How these people are dressed, their personal appearance, and their attitudes & behaviors all influence the customer's perception of the service.

• The services provider or contact person can be very important. Such as consulting, counseling, teaching & other professional relationship -based services, the provider is the service.

• Customer service quality themselves can also influence service delivery, thus affecting service quality and their own satisfaction.

• Customers not only influence their own service outcome , but they can influence other customers as well. Eg. in a theater or in classroom customers can influence the quality of service Received by others.

• If the employee is placed on the line of visibility, his behavior, activities and performance will have a direct impact on customers. Service employees are to be trained and motivated for better performance in the marketing activities.

Physical evidence

• Most services caimot be offered without the support of the tangibles. Though customers cannot see the service, they can definitely see the tangibles associated, examine them and try to form the opinion on the service provider.

• The physical evidence of service includes all of the tangible representation of the services such as, brochures, letterhead, business cards, report formats etc.

• It includes the physical facility where the service is offered for e.g.-the retail bank branch facility.

• Physical evidence cues provide excellent opportunities for the firm to send consistent and strong messages regarding the organization's purpose.

44 Process

• The actual delivery steps the customer experiences, or the operational flow of the services, also give customers evidence on which to judge the service.

• Highly bureaucratized services frequently follow this pattern , and the logic of the steps involved often escapes the customer.

• Process that can provide evidence to customer is whether the service follow a production -line/standardized approach or whether the process is an empowered/customized one.

45 1.3.4 SERVICE QUALITY

Service Quality is a predictable degree of uniformity and dependability at low cost with a quality suited to the market.

Service Quality is consistent conformance to customer's expectation.

Higher Service quality has a beneficial effect on both revenues & costs. It helps in differentiating the services from competitors.

1.3.4.1 Consumer Expectations

Customer expectations are beliefs about service delivery that function as standards or reference points against which performance is judged.

The knowledge of customer expectations helps the marketers to design comprehensive service packages that will deliver satisfaction.

Level of Service performance Customer Response

Exceeding maximum, expectation level Highly satisfied/delighted

Max. service level Satisfied

Adequate service level Indifferent

Minimum service level Dissatisfied

Below minimum level Highly dissatisfied

1.3.4.2 Zone of Tolerance

Zone of tolerance lies between Maximum Level of service expectation and Minimum Level of service expectation.

Tolerance zone differs fi-om customer to customer and also differs for first time service and for recovery service.

46 The tolerance zone would be low in case of important factors and would be high in the case of not very important factors.

1.3.43 Service Perception

Customers perceive services in terms of the quality of services and how satisfied they are overall with their experiences.

The evaluation of services differs from person to person, culture to culture and situation to situation.

Factors influencing the service perception of customers:-

Service encounters: When we come face to face with the service providers starting from the reception to the final meeting.

Evidence of service: These are the tangibles surroimding the core service

Image: What is the image of the brand in the minds of the people will also determine the perception

Price: Higher the price, higher is the perception and vice-versa

13.4.4 Service Quality Dimensions

Service Quality dimensions include :-

Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day.

Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.

Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer.

Empathy: Ability to be approachable. Example: being a good listener.

By Empathy we mean treating customers as individuals. Being passionate towards them

47 It is also Ability to be approachable. Example : being a good listener.

It is putting you into the other's shoes and trying to understand from the customer's point of view.

Taii0bles: Physical facilities and facilitating goods. Example: cleanliness.

Tangibles are the visible environment that is surroimding the core service. It includes tile infrastructure, furniture, wall paintings, tables, chairs etc that surrounds the service. i3AS SERVQUAL MODEL

For the purpose of measuring customer satisfaction with respect to different aspects of swrvice qxiality, a survey instrument was developed by Parasuraman, Zeithaml and Bory in 1988. The instrument is called SERVQUAL. The basic assumption of the measurement was that the customers can evaluate a firm's service quality by comparing their perception with their expectations. The SERVQUAL scale includes five dimensions and is applicable to services industry.

• Tangibles

• Reliability

• Responsiveness

•Assurance

• Empathy

48 1.4 MAHARASHTRA STATE ROAD TRANSPORT CORPORATION (Popularly known as State Transport Corporation or ST in Maharashtra)

1.4.1 MSRTC- Introduction

¥*x-.: •.•••• • •• • ••••

MAHARASHTRA STATE ROAD TRANSPOT CORPORATION (M.S.R.T.C.)

Maharashtra State Road Transport Corporation (MSRTC) is a state run bus service based in Maharashtra, India which services routes to other towns and cities within the same and adjoining states. Apart from interstate cities MSRTC bus service also covers destinations like Ahmadabad, Bangalore, Goa, Indore and Surat.

49 Source: MSRTC website

A Red MSRTC Bus maneuvering in the Sahyadri. It is the cheapest and reliable mode of transport in the state.

50 MSRTC's Green top Asiad bus on Expressway.

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.xtfi^sa*mmf0'f'>:'

MSRTC Volvo "Shivneri" Bus for comfortable A.C. Travel.

Soiirce : MSRTC website

51 1.4.2 History

MSitTC, popularly known as a ST is a Maharashtra state owned Corporation came mtqrWisMSti^ in 1st June 1948. In order to provide affordable, reliable, safe & quick ^lai^ irf road transport in Maharashtra. Earlier to MSRTC there were private opctsiotsk providing public transport services to rural & urban Maharastra.Private transport opierators used to exploit the public in general. General public was on mercy of Driver & Cleaner during their travel. There were no rules & regulations followed by private transport operators.

1.4.2.1 Need of state owned public transport operator.

Early bus services in Maharashtra (then part of the states of Bombay, Madhya Pradesh and Hyderabad) were started in the early 1920s largely due to efforts of local entrepreneurs. With no regulatory laws governing public transportation services these services nm in ad hoc manner. The Motor Vehicle Act of 1939 brought in amongst many other things, regulation of fares, standard routes and rules for governance and monitoring of public transportation providers. As a result of the act individual operators were asked to form a union on defined routes in a particular area. Bus schedules were set in, pick-up points, conductors, and fixed ticket prices were mandated.

Still passenger woes continued and then in 1948 Bombay State Government, started its own state sponsored road transport service called State Transport of Bombay. The first blue and silver-topped bus took off from Pune to Ahmednagar in 1948. In mean time, in 1950 the central government imder the initiative of Morarji Desai the then home minister passed the Road Transport Corporation Act. This act delegated powers to states to fe«n their individual road transport corporations, the central government would contribute up to a third of the establishment of such services. The Bombay State ILoad Transport Corporation (BSRTC) was formed following this, later on whose name was changed to Maharashtra State Road Transport Corporation after the re-orgahization of the states.

52 1.4.3 Structure

Th« main tenninal is located opposite Mvimbai Central Railway Station. They are pofMilar modes of transport for locals and tourists alike. Public service to most cities is avdilable at 30 minute intervals, and private bus service is also available at an adtUtional cost, with prior bookihg. One of their most lucrative routes is the Mumbai to Ptine route, via the expressway, on which buses depart on 10-15 minute intervals,

1.4. 4 MSRTC Product Mix

MSRTC runs bus services using different brand names including:

Shivneri: a Dadar-Pune-Dadar Volvo bus service operating daily. The buses start at 5:30 AM and are scheduled at a intervals of 30 mins with the last bus being at 12:00.The same service is also operating on Pune-Nasik-Pune route«& Pime- aurangabad-Pune route. The frequency is low on this route.

Mahabus: An air conditioned bus service operating between Pune and Mumbai (Mantralay). Starts at 6:45 am and scheduled for every 30 min till mid night

Asiad: Asiad bus service which runs fix)m Dadar started in the year 1982. This was the first venture of MSRTC in providing a semi luxury bus service and has been a hi^y successful venture. Recently this bus service is renamed as "Hirkani"

Parivartan : This is 2*2 seat modem bus recently introduced by MSRTC at Ordinary bus fares and became very popular among passengers.

Yatra (Festivity services): A seasonal service targeted at travellers visiting various festivities of Maharastra.

City Bus: MSRTC's branch of services which provide intercity transportation are categorised under then CityBus services. This bus service caters to the transportation needs of mid size and smaller towns which do not have their own transportation services.

53 Parcel Courier service: MSRTC buses also provide the use of their buses for shipping cargo or courier services.

Tovrism packages: Along with normal bus services MSRTC provides package tours 'wto^by you can buy a single ticket to travel a selective group of tourist places in Mabara^xtta. The groups are mostly clubbed together based on the district they I^Joag to.

1*4.5 Bus fleet and setup

MSRTC is one of the largest fleet owners in India, operating a fleet of approximately 16,000 buses. The buses are mainly made by two companies, TATA and Ashok Leyland. The Asiads in MSRTC mostly are made by TATA Motors, whereas the red ST's are a mix of Tata and Ashok Leyland. Now the MSRTC has all set to come up with a new looking and all passenger oriented fleet. They have three central workshops where the bodies of their buses are built, approximately 2000 in numbers per year, which are located in Pune, Aurangabad, and Nagpur. The organization has 9 Tyre Retreading Plants. 32 Divisional Workshops. MSRTC has the best working systems. The engine performance is the best for their vehicles. Periodic maintenance is the basic reason. It is well known for the services it caters to the masses. The service is available in remote areas also.

54 1.4. 6 Bus Depots

Maliwada bus station, Ahmednagar - one of the major hubs of the MSRTC network

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55 V

Tarakpur Bus station,Ahmednagar

56 MSRTC DIVISION MSRTC BUS DEPOTS

Mumbai Mumbai

Kura Nehru Nagar

Panvel

Uran

Thane-1 ,Thane-2

Thane Vitthalwadi,

Bhiwandi,

•Kalvan,

Murbad

Shahapur

Palghar Wada

Palghar,

Vasai,

Nalasopara,

Amala,

Saphala,

Boisar,

Jawhar,

Dahanu

Raigad Pen,

Alibaug,

57 Karjat.

Roha,

Murud-Janjira,

Mahad,

Shrivardhan

Ratnagiri Ratnaeiri,

Mandangad,

Dapoli,

Khed,

Chiplun.

Guhapar.

Sangmeshwar,

Devnikh,

Lanja.

Rajapur

Sindhudurg Kankavli,

Kudal,

Viiavdurg.

Vaibhavwadi,

Devgad,

Malvan,

Savantwadi,

58 Venevirla

Nashik Nashik,

Satana.

Malegaon.

Kalwan.

Nandgaon.

Peth,

Manmad.

Pimpalgaon.

Lasalgaon.

Panchvati.

Yeola,

Sinnar.

leatpiui

Dhule Dhule,

Nandurbar.

Akkalkuwa.

Shahada.

Shirpur.

Dondaicha,

59 Sindkheda.

Navapur.

Sakri

Jalgaon Jalgaon,

Chopda,

Yawal,

Raver,

Muktainagar,

Bhusawal,

Amalner.

Erandol,

Jamner,

Pachora,

Chalisgaon

Ahmednagar Ahmednagar.

Tarakpur,

Kopareaon,

Akole.

Sangamner,

Shrirampur,

Nevasa,

Sheveaon,

60 Pathardi.

Pamer,

Shrisonda.

Jatnkhed

Pune Swargate. Shivajinagar,

Naravangaon,

Rajgurunagar,

Shirur,

Talegaon.

Pimpri-Chinchwad,

Daimd.

Saswad,

Bhor,

Baramati.

Indapur

Satara Satara,

Pargaon-Khandala,

Mahabaleshwar,

Wai,

Phaltan.

Medha,

Dahiwadi,

61 Koregaon.

Wadui,

Patan.

Karad

Solapur Solapur.

Karmala,

Barshi,

Kurduvadi,

Akluj.

Pandharpur.

Sangola,

Mangalwedha.

Akkalkot

Sangli Sangli,

Atpadi.

Vita.

Jat,

Kavathe Mahakal,

Tasgaon.

Islampur,

Shirala.

Mirai

62 Kolhapur Kolhapur,

Sambhaiinagar,

Malkapxir.

Nrusinhvad.

Kurundvad,

Ichalkaranji.

Kagal,

Gaganbawada.

Radhanagari.

Gareoti.

Gadhinglai.

Aira,

Chandead

Aiirangabad: Auraneabad-1. Auraneabad-2.

Soveaon.

Sillod,

Kannad,

Vaijapur,

Gangapur, « Paithan

63 Jalna Jalna,

Jafrabad,

Ambad,

Partur

Paftfeani Parbhani,

Hingoli.

Kalamnuri,

Basmat.

Jintur,

Pathari,

Gangakhed

Beed Beed,

Gevrai,

Mazalgaon,

Ashti,

Patoda,

Dharur,

Ambejogai,

Parli

Ostnanabad Osmanabad,

Kalamb,

Bhoom,

64 Parmida,

Tuljapur,

Umraga

Labir: Latur.

Ahmedpur,

Udgir,

Aussa.

Nilanga

Nanded Nanded-1, Nanded-2,

Mahur,

Kinwat,

Hadaaon,

Bhokar,

Kandhar.

Bilpli,

Mukhed.

Deglur

65 1.4.7 CURRENT SCENARIO

Government of Maharashtra provided STAGE CARRIER Permission of public transport to MSRTC only. With the advent of new industrial policy, to hoosX the sale of jeq}s, cars, buses Government of Maharashtra permitted private transport operators ^CONTRACT CARRIER permission.

Tliere was a inunense pressure on government to permit contract carriage operation to private operators because MSRTC was not able to satisfy the need of public transportation on its own, due to many reasons. A huge Unemployed youth population is again major factor that influences government decision to permit the private operators.

With the advent of civilization & Industrial revolution there is a immense need of affordable ,quick , Reliable & safe mode of Public transport in India. Insufficient fleet of vehicle ,insufficient hviman resources ,Lack of quality managerial & Administrative staff, political intervention in daily operation of MSRTC, insufficient training to field staff are few areas where Public transport operators has to look in.

1.4.8 MSRTC POSITIONING

MSRTC is imiquely positioned to serve a broad and growing market with the following features:-

Low fares for passengers on any given day.

Bus staiKls with amenities for waiting and in-transit passengers.

Regularly scheduled intercity transportation to most cities, towns and small villages across the state and neighboring states.

Additional services during peak travel periods to accommodate passengers.

Concession offers in fares and facilities to students, physically challenged, sick, freedom fighters, widows and families of soldiers who died in war.

66