CHAPTER – I

INTRODUCTION AND RESEARCH DESIGN

1.1 INTRODUCTION

Indian service sector has witnessed a major boom and is one of the major contributors to both employment and national income in recent times. The weightage of service sector is an indication that in near future, India‘s GDP growth will be influenced considerably by the service sector. Future of the services and their role within the economy looks likely to continue to gain in strength. The marketers in the new millennium will continue to view service marketing as a critically important area for their survival in the market even though various factors contribute to the growth or constraints on the future of the service economy. The activities under the purview of the service sector are quite diverse. The infrastructures including trading, transportation and communication, financial, real estate and business services, community, social and personal services come within the gambit of the service industry.

Transport, thus is an important infrastructure in the economy of India. It assumes a greater role in developing countries since all the sectors of the development are closely dependent upon the existence of suitable transportation network. The whole structure of industry and commerce rests on the well laid foundation of transportation. Thus, an effective transport system is a pre-requisite for economic development of a country. The evident economic growth in India over the last two decades has increased demand for all transport services, particularly land transport through road and rail. The development of railways is one of the landmarks in the progress of human civilisation.

1 Indian Railways owned a total route length of 64,000 kilometers, 2,16,717 wagons, 39,263 coaches, 7,739 locomotives and runs about a total of 12,000 passenger trains and 7,000 freight trains daily. It carries nearly 23 million passengers every day and transports over 2.65 million tonnes of freight daily. The

Head Quarters of the Indian Railways is in New Delhi. Indian Railways is controlled by the Government of India through the Ministry of Railways. At present, there are 17 zones and 68 divisions in the Indian Railways. Indian

Railways has identified model stations for the provision of upgraded passenger amenities. Some of the stations have been identified for provision of certain

‗touch and feel items‘ to transform them into modern stations in order to bring about visible improvements at stations.

Delivering superior quality of service to passengers is important for

Railways to survive in the competition from low cost airlines and super luxury bus services. Improved service quality influences the Railways competitive advantage and it gives market share and ultimately profitability. Service quality is generally recognized as critical factor in an organization endeavor‘s to differentiate itself from its competitors.

Service quality is the decisive factor for any service organization to create the difference and obtain competitive advantage. Evaluation of service quality of

Railways may give the true picture about the short comings in Railway passenger service. Quality changes the nature of business competition and, perhaps more than any other factor, it dictated how companies make products or deliver services. In the global economy quality is just the entry ticket. It is recognized that high quality service is essential for organizations that want to be successful in their business (Parasuraman et al 1988; Rust and Oliver, 1994). The

2 organization has to battle many competitors who have attained it. The next step is figuring out how to differentiate. This differentiating and improving is possible only through service quality measurement.

1.2 SERVICE QUALITY

Service quality has become as one of the key driving forces for business sustainability and is crucial for firms accomplishment (Rust and Oliver, 1994)1.

Hence; many research activity on service quality has been conducted out worldwide. The development of the original 22-item SERVQUAL instrument by

Parasuraman (1985, 1988, and 1994) 2,3,4.It has provided researchers with the possibility of measuring the performance expectations gaps composed by five determinants knows, reliability, responsiveness, empathy, assurance and tangibility. Rust and Oliver (1994) has given three component model including service quality, service product service delivery to investigate service quality but not many researcher has used it whereas service product allude the technical quality, service delivery allude functional quality and service environment indicate internal and external. Rust and Oliver (1994) have not tested their conceptualization but support has been found for related models in retail banking and health care samples (Mc Alexander, Kaldenberg and Koenig 1994).

Furthermore, Kotler and Amstrong (1999)5 stated, ―A service firm‘s ability to

1 Rust, R.T. and Oliver, R.L. (1994), ―Service quality: insights and managerial implications from the frontier‖, in Rust, R.T. and Oliver, R.L. (Eds), Service Quality: New Directions in Theory and Practice, pp. 241-68. 2 Parasuraman, A.,Zeithaml, V.A. and Berry, L.L. (1985),‖ A Conceptual Model of Service Quality and Its Implication for Future Research‖, Journal of Marketing, Vol. 49, April, pp.41-50 3 Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1988),‖SERVQUAL: A Multiple-item Scale for Measuring Consumer Perceptions of Service Quality,‖ Journal of Retailing, Vol. 64 No. 1, Spring, pp. 12-40 4 Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1994), ―Alternative Scales for Measuring Service Quality: A Comparison Assessment Based On Psychometric and Diagnostic Criteria‖, Journal of Retailing, Vol. 70 No. 3, pp.201-30 5 Kotler, P., Amstrong, G., Saunders, J. and Weng., V (1999) 2nd edition European ed. Principal of marketing prentice Hall Inc.

3 hang onto its customers depends on how consistently it delivers value to them‖.

Satisfaction is a person‘s feeling of the pleasure or disappointment arising from comparing products perceived performance in relation to expectation.

The connection between customer satisfaction and future intentions has been identified. Customer satisfaction is believed to be associated with fruitful customer behavior from the firm‘s point of view. A number of empirical studies did indicate a link between service quality and satisfaction (e.g., Fornell, 1982;

Taylor and Baker, 1994)6 7.

1.3 CUSTOMER SATISFACTION

Customer satisfaction is the primary mental state of customer which comprise by two thing (1) expectation before purchase (2) perception about performance after purchase (Oliver 1997,, Westbrook & Oliver 1991)8,9.

However, according to Levesque and McDougall (1996) satisfaction is conceptualized as an overall, customer attitude towards a service provider.

Similarly, Andreessen, et al. (1998)10 claimed that customer satisfaction is the accumulated experience of a customer‘s purchase and consumption experiences.

It was therefore; client satisfaction construct in this paper will be measured through overall satisfaction toward the services. In the satisfaction literature, customer satisfaction usually refers to the latter type of outcome. Moreover, this

6 Fornel, C. (1992), ―A national customer satisfaction barometer: the Swedish experience‖, Journal of Marketing, Vol. 56 No. 1, pp. 1-2. 7 Taylor, S.A. and Baker, T.L. (1994), ``An assessment of the relationship between service quality and customer satisfaction in the formation of consumers' purchase intentions'', Journal of Retailing, Vol. 70 No. 2, pp. 163-78. 8 Oliver, R.L. (1997), Satisfaction: Behavioral Perspective on the Consumer, McGraw- Hill, New York, NY. 9 Westbrook, R.A and Oliver, R.L (1991) the Demensionality of customer satisfaction journal of consumer research 18(1), 84-91 10 Andreassen, T.W. and Lindestad, B. (1998), ―Customer loyalty and complex services: theimpact of corporate image on quality, customer satisfaction and loyalty for customers with varying degrees of service expertise‖, International Journal of Service Industry Management, Vol. 9 No. 1, pp. 7-23.

4 mental state, which the researchers view as a cognitive judgment, is conceived of as falling somewhere on a bipolar continuum bounded at the lower end by a low level of satisfaction (expectations exceed performance perceptions) and at the higher end by a high level of satisfaction (performance perceptions exceed expectations).

1.4 RELATIONSHIP BETWEEN SERVICE QUALITY AND CUSTOMER

SATISFACTION

Over the past few years there has been a heightened emphasis on service quality and customer satisfaction in business and academic circles. Suresh chandar et al, (2003)11 identified that strong relationships exist between service quality and customer satisfaction while emphasizing that these two are conceptually distinct constructs from the customers‘ point of view. Spreng and

Mackoy (1996)12 also showed that service quality leads to customer satisfaction while working on the model developed by Oliver (1997)13. A study conducted by

Ribbink et.al (2004)14 revealed that this relationship also exists in the e- commerce industry.

1.5 SERVICE QUALITY MANAGEMENT (SQM) IN INDIAN

RAILWAYS

Allen and DiCesare (1976) considered that quality of service for public transport industry contained two categories: user and non – user categories.

Under the user category, it consists of speed, reliability, comfort, convenience,

11 Sureshchanndra, G. S., Rajendran, C. & Anantharaman, R. N. (2003). ―The relationship between service quality and customer satisfaction - a factor specific approach‖. Journal of Service Marketing, 16 (4), 363-379. 12 Spreng, R.A. and Mackoy, R.D. (1996), ―An empirical examination of a model of perceived service quality and satisfaction‖, Journal of Retailing, Vol. 72, pp. 201-14 13 Oliver, R.L. (1997), Satisfaction: Behavioral Perspective on the Consumer, McGraw- Hill, New York, NY. 14 Ribbink, D., Van Riel, A.C.R., Liljander, V. & Streukens, S. (2004). ―Comfort your online customer: quality, trust and loyalty on the internet‖. Managing Service Quality, 14, 446-456.

5 safety, special services and innovations. For the non –user category, it is composed of system efficiency, pollution and demand. Sillock (1981) conceptualized service quality for pubic transport industry as the measures of accessibility, reliability, comfort, convenience and safety. Traditionally, the performance indicators for public transport are divided into two categories: efficiency and effectiveness. Under the efficiency category, the measures are concerned with the process that produce the services while the effectiveness category are used to determine how well the services provided are with respect to the objectives that are set for them (Pullen,1993). The gap model of service quality and concept of transport service quality showed that service quality should be measured on multidimensional basis. SERVQUAL is much more humanistic, or customer-related, while most of the measures used in public transport industry are much more mechanistic, or have technical focus, or use more objective measures. In summary, in order to measure the quality of service thoroughly, the attributes used in SERVQUAL, the public transport industry and the railway service sector should be grouped together to form a pool of items for measurement. Hence the researcher have modified the attributes in the

SERVQUAL model and added three new dimensions namely, Service product,

Social Responsibility and Service Delivery for the development of SCM model for the measurement of Railway passenger Services. the researcher conducted the research to assess the service quality of railway passenger service by identifying customer perceived gaps.

1.6 SERVICE QUALITY MODELS

Many different models have been developed to measure service quality delivered by firms in many businesses. It is important to review service quality

6 models because of its relation with customer satisfaction. Thus, service quality has become a major area of interest of practitioners, managers and researchers because of its impact on customer satisfaction, customer loyalty, and of course company profitability. The brief discussions on the models are as below:

1.6.1 TECHNICAL AND FUNCTIONAL QUALITY MODEL (GRONROOS,

1984)

A firm in order to compete successfully must have an understanding of consumer perception of the quality and the way service quality is influenced.

Managing perceived service quality means that the firm has to match the expected service and perceived service to each other so that consumer satisfaction is achieved. This model identified three components of service quality, namely: technical quality; functional quality; and image.

1. Technical quality is the quality of what the consumer actually receives as

a result of his/her interaction with the service firm and is important to

him/her and to his/her evaluation of the quality of service.

2. Functional quality is how he/she gets the technical outcome. This is

important to him and to his/her views of service he/she has received.

3. Image is very important to service firms and this can be expected to build

up mainly by technical and functional quality of service including the

other factors (tradition, ideology, word of mouth, pricing and public

relations).

1.6.2 GAP MODEL (PARASURAMAN Et Al., 1985)

Parasuraman et al. (1985) proposed that service quality is a function of the differences between expectation and performance along the quality dimensions.

7 They developed a service quality model based on gap analysis. The various gaps visualized in the model are:

Gap 1: Difference between consumers‘ expectation and management‘s perceptions of those expectations, i.e. not knowing what consumers expect.

Gap 2: Difference between management‘s perceptions of consumer‘s expectations and service quality specifications, i.e. improper service-quality standards.

Gap 3: Difference between service quality specifications and service actually delivered i.e. the service performance gap.

Gap 4: Difference between service delivery and the communications to consumers about service delivery, i.e. whether promises match delivery?

Gap 5: Difference between consumer‘s expectation and perceived service. This gap depends on the size and direction of the four gaps associated with the delivery of service quality on the marketer‘s side.

According to this model, the service quality is a function of perception and expectations and can be modeled as:

SQ ¼ Sk ðP ij ÿ E ij Þj¼1

Where:

SQ ¼ overall service quality; k ¼ number of attributes

Pij ¼ Performance perception of stimulus i with respect to attribute j.

Eij ¼ Service quality expectation for attribute j that is the relevant norm

for stimulus i.

This exploratory research was refined with their subsequent scale named

SERVQUAL for measuring customers‘ perceptions of service quality.

(Parasuraman et al.,1988). At this point the original ten dimensions of service

8 quality collapsed into five dimensions: reliability, responsiveness, tangibles, assurance (communication, competence, credibility, courtesy, and security) and empathy which capture access and understanding/knowing the customers. Later

SERVQUAL was revised in 1991 by replacing ―should‖ word by ―would‖ and in

1994 by reducing the total number of items to 21, but five dimensional structure remaining the same. In addition to this empirical research, the authors characterized and further delineated the four gaps identified in their research of

1985. This led to extended service quality model. According to this extended model most factors involve communication and control process implemented in organizations to manage employees.

1.6.3 ATTRIBUTE SERVICE QUALITY MODEL (HAYWOOD-FARMER, 1988)

This model states that a service organization has ―high quality‖ if it meets customer preferences and expectations consistently. According to this, the separation of attributes into various groups is the first step towards the development of a service quality model. In general, services have three basic attributes: physical facilities and processes; people‘s behaviour; and professional judgment. Each attribute consists of several factors.

In this model, each set of attributes forms an apex of the triangle. Too much concentration on any one of these elements to the exclusion of other may be appropriate it may lead to disaster for e.g. too much emphasis on procedures may give an impression to the customer that he will be processed as per his sequence. The author tried to map different type of service settings as per degree of contact and interaction, degree of labor intensity and degree of service customization into this model. For example services, which are low in terms of customers‘ contact customization and labour intensity (utilities, transportation of

9 goods etc.), Are closer to the physical facility and process attribute of the model.

Thus, the model suggests that special care at this instant must be taken to make sure that equipment is reliable and easy for the customer to use.

1.6.4 SYNTHESIZED MODEL OF SERVICE QUALITY (BROGOWICZ et al.,

1990

A service quality gap may exist even when a customer has not yet experienced the service but learned through word of mouth, advertising or through other media communications. Thus there is a need to incorporate the potential customers‘ perceptions of service quality offered as well as actual customers‘ perceptions of service quality experienced.

This model attempts to integrate the traditional managerial framework, service design and operations and marketing activities. The purpose of this model is to identify the dimensions associated with service quality in a traditional managerial framework of planning, implementation and control. The synthesized model of service quality considers three factors, viz. company image, external influences and traditional marketing activities as the factors influencing technical and functional quality expectations

1.6.5 PERFORMANCE ONLY MODEL (CRONIN AND TAYLOR, 1992)

The authors investigated the conceptualization and measurement of service quality and its relationship with consumer satisfaction and purchase intentions. They compared computed difference scores with perception to conclude that perceptions only are the best predictor of service quality. They argued on the framework of Parasuraman et al. (1985), with respect to conceptualization and measurement of service quality and developed performance only measurement of service quality called SERVPERF by

10 illustrating that service quality is a form of consumer attitude and the performance only measure of service quality is an enhanced means of measuring service quality. They argued that SERVQUAL confounds satisfaction and attitude. They stated that service quality can be conceptualized as ―similar to an attitude‖, and can be operationalized by the adequacy-importance model. In particular, they maintained that Performance instead of ―Performance-

Expectation‖ determines service quality. Service quality is evaluated by perceptions only without expectations and without importance weights according to the formula:

SQ ¼ Sk Pijj¼1

Where:

SQ ¼ overall service quality;

k ¼ the number of attributes;

Pij ¼ performance perception of stimulus i with respect to attribute j.

1.6.6 IDEAL VALUE MODEL OF SERVICE QUALITY (MATTSSON, 1992)

In majority of the studies on service quality ―expectation is treated as belief about having desired attributes as the standard for evaluation‖. However, this issue needs to be examined in the light of other standards such as experience based, ideal, minimum tolerable and desirable. The model argues for a value approach to service quality, modeling it as an outcome of satisfaction process.

This value-based model of service quality suggests the use of a perceived ideal standard against which the experience is compared. The implicit negative disconfirmation on a pre-conscious value level, is then hypothesized to determine satisfaction on a ―higher‖ attitude level. This negative disconfirmation is the major determinant of consumer satisfaction, more attention should be given to

11 cognitive processes by which consumers‘ service concepts are formed and changed

1.6.7 IT ALIGNMENT MODEL (BERKLEY AND GUPTA, 1994)

Investments in information technology (IT) sectors are generally aimed at productivity of efficiency gains with a little attention to improve customer service and long-run customer effectiveness. This model links the service and the information strategies of the organization. It describes the use of IT for improving service quality through a number of case studies from a variety of sectors

(banking, courier, transportation, manufacturing and services industries).

This model describes in detail where IT had been used or could be used to improve specific service quality dimensions including reliability, responsiveness, competence, access, communications, security, understanding and knowing the customers. Through some case studies use of IT for quality control (collect customer data, monitor operations and facilitate service) is also demonstrated.

According to the model, it is important that service quality and information system (IS) strategies must be tightly coordinated and aligned. The model explains the process of aligning service and aligning strategies.

1.6.8 ATTRIBUTE AND OVERALL AFFECT MODEL (DABHOLKAR, 1996)

The author proposed two alternative models of service quality for technology-based self-service options. Self-service is becoming popular day by day owing to the high cost of labor in service deliveries. The attribute model is based on what consumers would expect from such option. It is based on the cognitive approach to decision making, where consumers would use a compensatory process to evaluate attributes associated with the technology based

12 self service option in order to form expectations of service quality. The overall affect model is based on the consumers‘ feeling towards the use of technology.

It is based on an effective approach to decision making where consumers would use overall predispositions to form expectation self-service quality for a technology-based self-service option. In both the models expected service quality would influence intentions to use technology-based self-service option.

1.6.9 MODEL OF PERCEIVED SERVICE QUALITY AND SATISFACTION

(SPRENG AND MACKOY, 1996)

This model attempts to enhance the understanding of the constructs perceived service quality and consumer satisfaction. This model is modification to Oliver‘s (1993) model. The model highlights the effect of expectations, perceived performance desires, desired congruency and expectation disconfirmation on overall service quality and customer satisfaction. These are measured through a set of ten attributes of advising (convenience in making an appointment, friendliness of the staff, advisor listened to my questions, the advisor provided accurate information, the knowledge of the advisor, the advice was consistent, advisor helped in long-range planning, the advisor helped in choosing the right courses for career, advisor was interested in personal life, and the offices were professional).

1.6.10 PCP ATTRIBUTES MODEL (PHILIP AND HAZLETT, 1997)

The authors propose a model that takes the form of a hierarchical structure – based on three main classes of attributes – pivotal, core and peripheral. According to the model, every service consists of three, overlapping, areas where the vast majority of the dimensions and concepts which have thus far

13 been used to define service quality. These ranked levels are defined as – pivotal

(outputs), core and peripheral (jointly representing inputs and processes).

The pivotal attributes, located at the core, are considered collectively to be the single most determining influence on why the consumer decided to approach a particular organization and exert the greatest influence on the satisfaction levels.

They are defined as the ―end product‖ or ―output‖ from the service encounter; in other words what the consumer expects to achieve and receive, perhaps even

―take away, when the service process is duly completed. Core attributes, centered around the pivotal attributes, can best be described as the amalgamation of the people, processes and the service organizational structure through which consumers must interact and/or negotiate so that they can achieve/receive the pivotal attribute.

The third level of the model focuses on the peripheral attributes which can be defined as the ―incidental extras‖ or frills designed to add a ―roundness‖ to the service encounter and make the whole experience for the consumer a complete delight. When a consumer makes an evaluation of any service encounter, he is satisfied if the pivotal attributes are achieved, but as the service is used more frequently the core and peripheral attributes may begin to gain importance.

1.6.11 RETAIL SERVICE QUALITY AND PERCEIVED VALUE MODEL

(SWEENEY ET AL., 1997)

The influence of service quality on value and willingness to buy into a specific service encounters through two alternative models. Value can be defined as a comparison between what consumers get and what they give, suggesting that the value is a comparison of benefits and sacrifices. (Zeithaml et al., 1988). Value construct used in this model is ―value for money‖.

14 Model 1: this model highlights that in addition to product quality and price perceptions, functional service quality and technical service quality perceptions both directly influence value perceptions.

Model 2: this model highlights that in addition functional service quality perceptions directly influence consumers‘ willingness to buy. Functional service quality perceptions also influence technical service quality perceptions, which in turn influence product quality perceptions and neither of the two directly influence value perceptions. On analysis, of modification indices for model 2

(being superior to model 1) it is possible to make significant improvement in this model by allowing technical service quality to influence perceived value directly.

1.6.12 SERVICE QUALITY, CUSTOMER VALUE AND CUSTOMER

SATISFACTION MODEL (OH, 1999)

The author proposed an integrative model of service quality, customer value and customer satisfaction. The proposed model focuses mainly on post purchase decision process. Arrows in the model indicate causal directions.

The model incorporates key variables such as perceptions, service quality, consumer satisfaction, customer value and intentions to repurchase. Finally the word of mouth communication intention is conceptualized as a direct, combined function of perceptions, value, satisfaction and repurchase intentions.

The model provides evidence that customer value has a significant role in customer‘s post-purchase decision-making process. It is an immediate antecedent to customer satisfaction and repurchase intentions. Results also indicate that perceived price has a negative influence on perceived customer value and no relationship with perceived service quality.

15 1.6.13 ANTECEDENTS AND MEDIATOR MODEL (DABHOLKAR ET AL.,

2000)

A comprehensive model of service quality includes an examination of its antecedents, consequences, and mediators to provide a deeper understanding of conceptual issues related to service quality. This model examines some conceptual issues in service quality as: the relevant factors related to service quality better conceived as components or antecedents and the relationship of customer satisfaction with behavioral intentions.

1.6.14 INTERNAL SERVICE QUALITY MODEL (FROST AND KUMAR, 2000)

The authors have developed an internal service quality model based on the concept of GAP model (Parasuraman et al., 1985). The model evaluated the dimensions, and their relationships, that determine service quality among internal customers (front-line staff) and internal suppliers (support staff) within a large service organization.

The internal gap 1 shows the difference in support staff‘s perception

(internal supplier) of front-line staff‘s expectation (internal customers). Internal gap 2 is the significant difference between service quality specifications and the service actually delivered, resulting in an internal service performance gap.

Internal gap 3 is the gap which focuses on the front-line staff (internal customers). The gap is based on the difference between front-line staff‘s expectations and perceptions of the support staff‘s (internal supplier) service quality.

16 1.6.15 INTERNAL SERVICE QUALITY DEA MODEL (SOTERIOU AND

STAVRINIDES, 2000)

Service quality is an important factor that must be considered when assessing a bank branch performance. The branch may report high volume of products and services offered as well as profit, but lose its long-term advantage owing to eroding service quality. The authors presented a service quality model that can be used to provide directions to a bank branch for optimal utilization of its resources. The model does not aim to develop the service quality measures, rather guides how such measures can be incorporated for service quality improvements.

The model points out resources that are not properly utilized. The inputs to the model consist of two sets: consumable resources such as personnel, space, time etc. and the number of accounts in different categories. The output of the model is the level of service quality perceived by the personnel of the branch.

The data envelope analysis (DEA) model compares branches on how well they transform these resources (inputs) to achieve their level of service quality

(output) given the client base. The DEA model will identify under-performers and suggest ways for their improvement.

The input minimization DEA model will provide information on how much could the consumable resources be reduced while delivering the same level of service quality, while the output maximization DEA model will provide information on how much service quality can be improved using the same consumable resources.

17 1.6.16 INTERNET BANKING MODEL (BRODERICK AND

VACHIRAPORNPUK, 2002)

One of the key challenges of the internet as a service delivery channel is how service firms can manage service quality as these remote formats bring significant change in customer interaction and behavior. This study proposes and tests a service quality model of internet banking. The research uses participant observation and narrative analysis of UK internet web site community to explore how internet banking customers perceive and elements of this model. In the context of the internet, five key elements are treated as central influences on perceived service quality: They are: customer expectations of the service; the image and reputation of the service organization; aspects of the service setting; the actual service encounter; and customer participation.

1.6.17 IT-BASED MODEL (ZHU Et al., 2002)

This model highlights the importance of information technology (IT)- based service options. Service providers are using IT to reduce costs and create value-added services for their customers. It proposes a service quality model that links customer perceived IT-based service options for traditional service dimensions. The model attempts to investigate the relationship between IT-based services and customers‘ perceptions of service quality.

The IT-based service constructs is linked to service quality as measured by SERVQUAL (Parasuraman et al., 1988, 1991). Several key variables affecting customers‘ views of IT-based services are identified. The model focuses on the linkages among the service dimensions as measured by SERVQUAL, the constructs representing the IT-based service quality, preferences towards traditional services, experiences in using IT-based services, and perceived IT

18 policies. The impacts of these constructs on perceived service quality and customer satisfaction are also specified.

1.6.18 MODEL OF E-SERVICE QUALITY (SANTOS, 2003)

Service quality is one of the key factors in determining the success or failure of electronic commerce. E-service can be defined as the role of service in cyberspace (Rust and Lemon, 2001). This study proposes a conceptual model of e-service quality with its determinants. It is proposed that e-service quality has incubative (proper design of a web site, how technology is used to provide consumers with easy access, understanding and attractions of a web site) and active dimensions (good support, fast speed, and attentive maintenance that a web site can provide to its customers) for increasing hit rates, stickiness, and customer retention.

1.7 SERVICE QUALITY GAP In this research, perceived service quality model, which is the difference between customer‘s expectation and satisfaction, is used as a research strategy.

Respondents should complete two different types of questions. One category asks questions based on their perception or expectation of a service delivered to them and another category asks them some questions bases on their satisfaction or experience. So SQ introduces service quality whereas P and E introduce perception and expectation respectively.

Service quality = perceived – experience

SQ: Service Quality, P: Customers‘ Perception, E: Customers‘ Expectation so,

(P – E = SQ), is a scale to examine the expectation or perception of a customer about the quality of a specific product or service (SQ).

Negative Q indicates that there is a gap in service quality. Positive Q indicates that the satisfaction level of consumers is higher than their expectation.

19 1.8 STATEMENT OF THE PROBLEM

India is one of the largest countries in terms of its geographical size which requires efficient means for long-distance transportation. The public transport, being primary mode of transport remains as a powerful yardstick to measure the overall development of a nation. Among the various modes of transport, railway is one of the biggest modes of passenger transport in the world.

The Indian Railways, more than 150 years old, is among one of the largest and oldest systems in the world, fondly called by people as the ‗Lifeline of the

Nation‘. With an extensive network spread across the country, Indian Railways plays a key role in the social and economic development of India. Indian Railway is a principal mode of transportation for long haul freight movement in bulk, long distance passenger traffic, and mass rapid transit in suburban area. It occupies a unique position in the socioeconomic map of the country and is considered as a vehicle and barometer of growth.

The railway passenger services face long term competitive threats from airlines, luxury buses, personalized transport and improved public transport. Low cost airlines are giving stiff competition to upper class segments of the railway passenger service. Though there are competitions from various modes of transport, the railway has its own unique features and provides more services to the passengers. In order to compete with other modes of transport, it is inevitable for railways to accelerate the growth of passengers‘ origination. This can be done by providing more quality services to them. Further, the opinion of the passengers towards the services provided by the Indian Railways will be quite different as they vary in socio-economic characteristics.

20 It is essential for the Railway Authorities to know about the opinion of the passengers regarding the services offered to them in order to make future policies and provisions. Based upon the opinion of the passengers, their satisfaction level is decided. The Indian Railways can perform well only when the passengers are satisfied with the services they obtain.

Satisfaction from service quality is usually evaluated in terms of technical quality and functional quality. Usually, customers do not have much information about the technical aspects of a service; therefore, functional quality becomes the major factor from which to form perceptions of service quality. Therefore, this study is an attempt to put forth the role of service quality in affecting passenger satisfaction in the train, with special reference to South Indian Railways.

1.9 SCOPE OF THE STUDY

This study throws light on the passenger satisfaction with service provided by the Indian railways. The study is restricted to Tiruchirappalli division of Southern Railways. This study will be helpful to draw up further policy for improving passenger satisfaction and act as a secondary data for further research.

1.10 RESEARCH GAP

A study on the service quality in train services and level of passenger satisfaction derived from in train services has been ignored by researchers in the

Indian context. Hence, an attempt is made to study passenger satisfaction with quality of services provided by the Indian Railways. In this study, the researcher adopted survey to identify the determinants of passenger satisfaction with this very important public utility in the special context of India.

21 1.11 OBJECTIVES OF THE STUDY

The main purpose of the study is to analyze passenger satisfaction with service provided by the Indian railways. In order to materialize this objective, the following specific objectives were considered:

1. To study growth and progress of Indian railways.

2. To explore the key dimensions of service quality for train services in

Indian railways.

3. To measure the level of satisfaction of the passengers about the services

offered by the Indian Railways.

4. To analyze the impact of service quality on passenger satisfaction with

train services of the Indian Railways.

5. To find results and suggest remedial measures to the Indian Railways to

improve passenger satisfaction.

1.12 RESEARCH MODEL

The following research model is adopted for the study to analyze impact of service quality on passenger satisfaction with railway services in the Indian

Railways.

Tangibility

Reliability

Responsiveness PASSENGER SATISFACTION

Assurance

SERVICE QUALITY SERVICE Empathy

Figure 1: The Research Framework

22 1.13 HYPOTHESIS

Several hypotheses were formulated keeping the content and coverage of the framed objectives. The formulated hypotheses are tested by employing appropriate statistical tools.

1. There is no significant difference in the mean scores between the level of

perception and the level of expectation (GAP) on the various service

quality dimensions.

2. There is no positive relationship between perceived value of the service

quality dimension such as tangible, reliability, assurance, responsiveness

and empathy and assurance and perceived value of overall service quality.

3. There is no significant difference between demographic variables (sex,

age, educational qualifications, occupation and income) and level of

perception about service quality.

4. There is no significant difference in the mean scores obtained by the

respondents for passenger satisfaction.

5. There is no positive relationship between perceived values of the

passenger satisfaction factors such as Basic Facilities, Hygiene, Safety

and Security, Catering, Punctuality, Behavior towards Passengers over all

satisfaction.

6. There is no significant difference between demographic variables of the

respondents and their level of satisfaction with railway services.

7. The greater the service quality, the higher will be the passenger

satisfaction.

23 1.14 RESEARCH METHODOLOGY

This study is an empirical research based on survey method. Southern

Railway's present network extends over a large area of India's Southern

Peninsula, covering the states of Tamilnadu, Kerala, Pondicherry, and a small portion of Andhra Pradesh. Serving these naturally plentiful and culturally rich southern states, the Southern Railway extends from Mangalore on the west coast and Kanniyakumari in the south to Renigunta in the North West and Gudur in the

North East. Headquartered at Chennai, the Southern Railway comprises six divisions namely Chennai, Tiruchirappalli, Madurai, Palghat, Trivandrum and

Salem.

1.15 SAMPLE SIZE

The present study is confined to Tiruchirappalli Division of Southern

Railway zone. In the selected Tiruchirappalli Railway Division, there are eight railway junctions viz., Trichy, Viluppuram, Cuddalore, Mayiladuthurai,

Tiruvarur, Thanjavur, Virudhachalam and Needamangalam. All these junctions have been selected for the study. The universe in this case is defined as the entire population of the country and foreign nationals visiting India. Hence, a definite, statistically-sound sample was not feasible. Convenience sampling was used for the purpose of the survey, and a research sample was taken to measure passengers‘ satisfaction. Therefore, a total of 400 passengers, 50 from each junction are selected as sample on the basis of convenience sampling method. It is considered to be adequate and representative for covering the all the selected junctions.

24 1.16 COLLECTION OF DATA

In the present study, both primary and secondary data are used. The required primary data have been collected in the course of interview with the railway passengers through survey method with a pre-tested, well structured and non-disguised questionnaire.

The required secondary data for the present study have been collected through Annual Reports of Ministry of Railways, White Paper on the Indian

Railways published by Railway Ministry, Reports of Comptroller and Audit

General of India, various issues of RBI Annual Bulletins, data from Central

Statistical Organisation, Indian Railways Year Book of various years, records from Public Relations Officer of Salem Division, various journals, periodicals and through web sites.

1.17 RESEARCH INSTRUMENT

To analyze perception of the passengers about service quality, an undisguised structured questionnaire, SERVQUAL, by Parasuraman et al with modified attributes to suit Railway Services was used for the research. The variables include tangibles, reliability, responsiveness, assurance and empathy.

The respondents were asked to provide belief rating for services offered by Indian

Railways, using seven-point rating scale ranging from 1(low) to 7(high).

To measure level of passengers satisfaction an instrument was developed on the basis of the existing literature, observations, the pilot study, and expert opinion. The attributes related to service quality of Indian Railways—passenger satisfaction was generated with the help of reviews and exploratory study.

Interviews were conducted with passengers who travel frequently to identify the attributes for passenger (customer) satisfaction.

25 These preliminary surveys and reviews were used to generate general variables for passenger satisfaction on railway platforms. These variables were supported with the help of the literature review. These were further refined to form a questionnaire. The questionnaire included six variables to measure customer (passenger) satisfaction from service quality, including, Basic Facilities,

Hygiene, Safety and Security, Catering, Punctuality and Behavior towards

Passengers.

1.18 PERIOD OF THE STUDY

The required primary data have been collected through a survey made on railway passengers from January 2009 to June 2012.

1.19 LIMITATION OF THE STUDY

The study has some limitations need to be acknowledged and addressed regarding the present study. The study on its face appears to be limited as it is carried out in a single Indian transport industry, i.e. Indian Railways. Thus, its findings cannot be generalized to other transports. The study was carried out in

Tiruchirappalli Division of Southern Railway zone. Thus, its finding cannot be generalized to other area due to geographical variation. The study is purely based on the passengers‘ opinion. The researcher felt that the passengers might express a biased opinion, which may limit the validity of the study. Respondents‘ opinion may change from time to time and the responses are subject to variation depending upon the situation and attitude of the respondents at the time of the survey.

26 1.20 CHAPTER SCHEMES

The following chapter scheme have been adopted:.

Chapter I describes the empirical aspect of this study, including objectives, the methodology used to collect data, sample parameters, and limitations.

Chapter II provides a detailed review of earlier studies carried out in the area service quality and customer satisfaction.

Chapter III has been devoted to the discussion of growth and development of Indian Railways.

Chapter IV deals with the perception and expectation of the quality of service provided by the Indian Railways in the study area.

Chapter V analyzes the service quality and its impact on passenger satisfaction.

Chapter VI contains the summary, major findings, suggestions, conclusion and the scope of future research.

27 CHAPTER – II

REVIEW OF LITERATURE

The aim and scope of the present study has been discussed in the previous chapter. Review of literature is an important aspect of any research. It helps us to trace out the past trends in any particular branch of subject. Review of literature helps us to identify the areas of research. There have been a lot of studies conducted in the field of passenger/customer satisfaction both at national and international level. Some of the previous related research studies have been reviewed in this chapter.

Kaj Storbacka, et al., (1994)15 addresses customer-related economic issues, more specifically the link between service quality and profitability from a relationship marketing and management perspective. In this perspective the task of marketing is not only to establish customer relationships, but also to maintain and enhance them in order to improve customer profitability. In the service quality literature higher quality is assumed to lead to customer satisfaction, which leads to customer loyalty and this drive customer profitability. The framework highlights factors that, in addition to service quality and customer satisfaction, influence the links between service quality and profitability. Also discusses aspects of improving the profitability of relationships, such as enhancing relationship revenues through higher degrees of patronage concentration, and reducing relationship cost by changing the episode configuration of customer relationships.

15 Kaj Storbacka, Tore Strandvik, Christian Grönroos, (1994) "Managing Customer Relationships for Profit: The Dynamics of Relationship Quality", International Journal of Service Industry Management, Vol. 5 Iss: 5, pp.21 - 38

28 Tor Wallin Andreassen,et al., (1998)16 based on theory from consumer behavior and cognitive psychology, the purpose of this study is to discuss and test corporate image and customer satisfaction as two routes to customer loyalty.

Based on data from 600 individual customers categorized as having high or low service expertise of three companies within the package tour industry, a conceptual model is proposed and tested empirically using structural equation modeling. The data used in the study are included in The Norwegian Customer

Satisfaction Barometer. The study concludes by claiming that for complex services, corporate image and customer satisfaction are not two separate routes to customer loyalty. Corporate image impacts customer loyalty directly whereas customer satisfaction does not. This finding was consistent with high and low service expertise. These results challenge the disconfirmation paradigm which predicts customer satisfaction as the primary route to customer loyalty. From a managerial perspective, information regarding the relative strength of the two routes is vital with regard to resource allocation in order to improve customer loyalty.

Asma Abdul Rehman (1999)17, investigated the relationship between customer satisfaction and six dimensions of service quality (CARTER model) in

Islamic banks of Pakistan, the UK and UAE. This study uses a sample of 225 customers of Islamic banks; 75 responses have been taken from each country.

Structured questionnaire technique has been used to collect data. Findings reveal that Pakistani and UK Islamic banking customers consider assurance, reliability

16 Tor Wallin Andreassen, Bodil Lindestad, (1998) "Customer loyalty and complex services: The impact of corporate image on quality, customer satisfaction and loyalty for customers with varying degrees of service expertise", International Journal of Service Industry Management, Vol. 9 Iss: 1, pp.7 - 23 17 Asma Abdul Rehman, (1999) "Customer satisfaction and service quality in Islamic banking: A comparative study in Pakistan, United Arab Emirates and United Kingdom", Qualitative Research in Financial Markets, Vol. 4 Iss: 2/3, pp.165 - 175

29 and empathy as significant factors for customer satisfaction, whereas UAE customers consider assurance and tangible as significant dimensions of satisfaction.

Haemoon Oh (1999)18 proposed and tested an integrative model of service quality, customer value, and customer satisfaction. Using a sample from the luxury segment of the hotel industry, this study provides preliminary results supporting a holistic approach to hospitality customers post purchase decision- making process. The model appears to possess practical validity as well as explanatory ability.

Figen Ye
ilada, et al., (2000)19 The aim of their study is threefold: to test the dimensionality of the SERVQUAL instrument in the Northern Cyprus health care industry, to assess the service quality provided in public and private hospitals in Northern Cyprus and to identify the service quality dimensions that play important role on patient satisfaction. Data were collected in two phases from the same sample, which consisted of 806 systematically selected people above the age of eighteen. Factor analysis revealed a three factor solution, namely; reliability-confidence, empathy and tangibles. This result does not support the five factor model of the original SERVQUAL. Gap analysis showed that private hospitals have smaller gaps than public hospitals in all three service quality dimensions. Finally, logistic regression findings indicated that while all three dimensions are somewhat influential on patient satisfaction, in public hospitals tangibles dimension seems to exert no significant influence on satisfaction.

18 Haemoon Oh, ―Service quality, customer satisfaction, and customer value: A holistic perspective‖, Hospitality Management 18 (1999) 67-82 19 Figen Ye
ilada and and Ebru Direktör, ―Health care service quality: A comparison of public and private hospitals‖, African Journal of Business Management Vol. 4(6), pp. 962-971, June 2000.

30 Ilias Santouridis, et al., (2000)20 investigated crucial factors that lead to customer loyalty in the mobile telephony sector in Greece, namely service quality and customer satisfaction. Furthermore, the mediation effect of customer satisfaction on the service quality and customer loyalty relationship is also examined. Field research was conducted. The questionnaire was formed by a synthesis of existing constructs in relevant literature. The main research target sample consisted of residential non-business mobile phone users in Greece.

Reliability tests and statistical analyses were performed to both confirm scale validity and reliability and answer the research questions. Customer service, pricing structure and billing system are the service quality dimensions that have the more significant positive influence on customer satisfaction, which in turn has a significant positive impact on customer loyalty. The mediation role of customer satisfaction on the service quality and customer loyalty relationship has also been confirmed.

Devinder K Banwet, et al., (2000)21 investigated the quality of services offered to students in an institutional computer centre and measures tangible and intangible aspects of service quality, consumer satisfaction, and post-visit intentions. The effect of service quality on post-visit intentions has been examined in a causal-path framework. The study indicates that service performance generally lags behind user's expectations. Improvement in the quality of services increases the level of satisfaction of the user. Tangible aspects of service performance have a stronger direct effect on post-visit intentions than

20 Ilias Santouridis, Panagiotis Trivellas, (2010) "Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece", The TQM Journal, Vol. 22 Iss: 3, pp.330 - 343 21 Devinder K Banwet and Biplab Datta, ―Effect of Service Quality on Post-Visit Intentions: The Case of a Computer Centre‖, Vikalpa, Vol. 25, No. 3, July-September 2000.

31 in tangible aspects. Satisfied users intend to revisit the computer centre and advise others to visit it.

Suzana Markovi, et al., (2000)22 examined customers‘ perceptions of service quality in the Croatian hotel industry. The aim is to assess the perceived service quality of hotel attributes and to determine the factor structure of service quality perception. A modified servqual scale was used to assess service quality perceptions from the perspective of domestic and international tourists. Data were collected in 15 hotels in the Opatija Riviera (Croatia), using a self-administered questionnaire. Descriptive statistical analysis, exploratory factor analysis and reliability analysis were conducted. The study results indicate the rather high expectations of hotel guests regarding service quality. Reliability, empathy and competence of staff, accessibility and tangibles are the key factors that best explained customers‘ expectations of hotel service quality.

Anber Abraheem Shlash Mohammad, et al., (2001)23 examine the level of service quality as perceived by customers of commercial bank working in

Jordan and it's effect customer satisfaction, Service quality measure is based on modified version of SERVQUAL as proposed by Parasuraman et al. (1988), which involve five dimensions of Service quality, namely Reliability,

Responsiveness, Empathy, Assurance, and Tangibles. Customer satisfaction was measured by a nine item adapted from Walfried et al. (2000), 260 questionnaires were distributed randomly to customers of commercial banks branches located

(thirteen commercial banks in Jordan ) in IRBID (Acity of Jordan ). Multiple

22 Suzana markovic and Sanja raspor, ―Measuring Perceived Service Quality Using servqual: A Case Study of the Croatian Hotel Industry‖, Journal of management 5 (3): 195–209, 2000 23 Anber Abraheem Shlash Mohammad and Shireen Yaseen Mohammad Alhamadani, ―Service Quality Perspectives and Customer Satisfaction in Commercial Banks Working in Jordan‖, Middle Eastern Finance and Economics, Issue 14 (2001) EuroJournals Publishing, Inc. 2001 http://www.eurojournals.com/MEFE.htm

32 regression analysis was employed to test the impact of service quality on customer satisfaction. The results of this study indicated that service quality is an important antecedent of customer satisfaction. It is apparent from the present study that managers and decision makers in Jordanian commercial banks to seek and improve the elements of service quality that make the most significant contributions on customer satisfaction.

Antreas Athanassopoulos (2001)24 investigated the behavioural consequences of customer satisfaction. More specifically, the researcher examined the impact of customer satisfaction on customers‘ behavioural responses. The results support the notion of direct effects of customer satisfaction on three criterion variables (decision to stay with the existing service provider, engaged in word-of-mouth communications, and intentions to switch service providers).

Hsin Hsin Chang, et al., (2001)25 examined the impact of e-service quality, customer perceived value, and customer satisfaction on customer loyalty in an online shopping environment. There were two studies performed in this research. Study 1 validated the self-regulating processes; Study 2 tested the moderating effects of customer perceived value between satisfaction and loyalty.

Structural equation modelling techniques and linear hierarchical regression models were used to test the causal model. The study demonstrated that e-service quality and customer perceived value influence customer satisfaction, and then influence customer loyalty. In addition this study found that customers with a

24 Antreas Athanassopoulos, ―Behavioural responses to customer satisfaction: an empirical study‖, European Journal of Marketing, Vol. 35 No. 5/6, 2001, pp. 687-707. 25 Hsin Hsin Chang, Hsin-Wei Wang, (2001) "The moderating effect of customer perceived value on online shopping behaviour", Online Information Review, Vol. 35 Iss: 3, pp.333 - 359

33 high perceived value have a stronger relationship between satisfaction and customer loyalty than customers with a low perceived value.

Ahmad Jamal, et al., (2002)26 pointed out that understanding the antecedents to and outcomes of customer satisfaction is a critical issue for both academics and bank marketers. Previous research has identified service quality, expectations, disconfirmation, performance, desires, affect and equity as important antecedents of customer satisfaction. The current paper reports findings from a survey which looked into the impact of service quality dimensions and customer expertise with satisfaction. A sample of 167 respondents took part in this study. Findings indicate that both core and relational dimensions of service quality appear to be linked to customer satisfaction. Findings also indicate that expertise is negatively related to satisfaction.

Keng-Boon Ooi (2003)27 examined the relationship between total quality management (TQM) practices and customer satisfaction and also to investigate the association between TQM practices and service quality within the context of

Malaysia's small service organizations. The study uses data from the perceptions of sales and marketing managers in 108 small service organizations in Malaysia.

Data were analyzed by employing correlation and multiple regression analysis to test the relationship between TQM practices, customer satisfaction and service quality. The results showed that TQM practices are significantly and positively linked to customer satisfaction and service quality of the small service business firms. It was further confirmed that the dimensions of customer focus and

26 Ahmad Jamal, Kamal Naser, "Customer satisfaction and retail banking: an assessment of some of the key antecedents of customer satisfaction in retail banking", International Journal of Bank Marketing, Vol. 20 Iss: 4, pp.146 – 160, (2002) 27 Keng-Boon Ooi, Binshan Lin, Boon-In Tan, Alain Yee-Loong Chong, (2003) "Are TQM practices supporting customer satisfaction and service quality?", Journal of Services Marketing, Vol. 25 Iss: 6, pp.410 - 419

34 information and analysis were strongly linked to customer satisfaction and service quality.

Zhilin Yang, et al., (2004)28 pointed out that it is a marketplace reality that marketing managers sometimes inflict switching costs on their customers, to inhibit them from defecting to new suppliers. In a competitive setting, such as the

Internet market, where competition may be only one click away, has the potential of switching costs as an exit barrier and a binding ingredient of customer loyalty become altered? To address that issue, this study examined the moderating effects of switching costs on customer loyalty through both satisfaction and perceived-value measures. The results, evoked from a Web-based survey of online service users, indicate that companies that strive for customer loyalty should focus primarily on satisfaction and perceived value. The moderating effects of switching costs on the association of customer loyalty and customer satisfaction and perceived value are significant only when the level of customer satisfaction or perceived value is above average. In light of the major findings, the study sets forth strategic implications for customer loyalty in the setting of electronic commerce.

Kaur Kiran, (2004)29 the purpose of his study is to describe the results of a study to examine the perception of academic staff on the quality of academic library services. It also attempts to assess the impact of library services on their work and their perceived level of satisfaction towards university library services.

The study was carried out using a survey methodology. The survey instrument was a questionnaire adopted from a quality impact survey based on SERVQUAL

28 Zhilin Yang and Robin T. Peterson, ―Customer Perceived Value, Satisfaction, and Loyalty: The Role of Switching Costs‖, Journal of Psychology & Marketing, Vol. 21(10):799–822 (October 2004) 29 Kaur Kiran, (2004) "Service quality and customer satisfaction in academic libraries: Perspectives from a Malaysian university", Library Review, Vol. 59 Iss: 4, pp.261 - 273

35 dimensions. Results reveal that academic staff perceive the quality of library services to be just above average. Library staff are considered quite helpful and able to instill confidence in library users. Academic staff also believe that the library has a positive impact on their teaching, learning and research. The overall satisfaction with the library services received a satisfactory rating.

Gwo-Guang Lee, et al. (2005)30 develops a research model to examine the relationship among e-service quality dimensions and overall service quality, customer satisfaction and purchase intentions. Data from a survey of 297 online consumers were used to test the research model. Confirmatory factor analysis was conducted to examine the reliability and validity of the measurement model, and the structural equation modelling technique was used to test the research model. The analytical results showed that the dimensions of web site design, reliability, responsiveness, and trust affect overall service quality and customer satisfaction. Moreover, the latter in turn are significantly related to customer purchase intentions. However, the personalization dimension is not significantly related to overall service quality and customer satisfaction.

Pratibha A. et al. (2005)31 examined precisely how service process and service outcome are related to service quality and customer satisfaction evaluations, and to look for consistent patterns in the relationships between these four concepts. A theoretical framework is proposed to suggest links between the four concepts. The study is conducted in the real estate industry, and the focus is on home sellers' evaluations of the real estate agent's service. In-depth interviews

30 Gwo-Guang Lee, Hsiu-Fen Lin, (2005) "Customer perceptions of e-service quality in online shopping", International Journal of Retail & Distribution Management, Vol. 33 Iss: 2, pp.161 - 176 31 Pratibha A. Dabholkar, Jeffrey W. Overby, (2005) "Linking process and outcome to service quality and customer satisfaction evaluations: An investigation of real estate agent service", International Journal of Service Industry Management, Vol. 16 Iss: 1, pp.10 - 27

36 and a short survey are used to collect the data. A combination of content analysis and statistical tests is used to look for patterns in the data. As proposed, process factors are closely linked with service quality, and outcome factors are closely linked with customer satisfaction. Also, as proposed, service quality evaluations precede customer satisfaction for normal service evaluations, but the opposite causal order is found for extreme service evaluations.

Marcel van Birgelen, et al., (2005)32 proposed a combination of traditional service quality and e-service quality frameworks. The central question focuses on how to assess the added value of the web as a service innovation for a traditional service. The setting of the study is a traditional-style barbeque delivery service with a recently installed advanced web-initiated order entry facility now used by a majority of the customers. An empirical, survey-based cross-sectional study on web-initiated customer experiences of an in-home catering service, involving barbeque food items and cooking equipment. Findings indicate that adding an innovative e-channel to a traditional business process does not automatically translate to a higher customer satisfaction. Only limited significant effects were found from online ordering on overall satisfaction in contrast to the effect of traditional service dimensions.

Carmen Barroso Castro, et al., (2005)33 their study intends to address a significant topic for business management, such as the influence of market orientation (MO) on the internal and external environments of an organisation.

More precisely, the main objective of this paper focuses on the effect of such an

32 Marcel van Birgelen, Paul Ghijsen, Janjaap Semeijn, (2005) "The added value of web innovation for customer satisfaction: Experiences with a barbeque catering service", Managing Service Quality, Vol. 15 Iss: 6, pp.539 - 554 33 Carmen Barroso Castro, Enrique Martín Armario, María Elena Sánchez del Río, (2005) "Consequences of market orientation for customers and employees", European Journal of Marketing, Vol. 39 Iss: 5/6, pp.646 - 675

37 orientation on employees – organisational commitment and OCBs – as well as on customers – satisfaction and perceived service quality. Structural equation models are employed to analyse the data collected from the spanish retail banking sector in order to verify the hypotheses corresponding to the causal relationships proposed in our research model. The results achieved in this research represent significant contributions both from a theoretical perspective as well as for management in the service industry. From a theoretical perspective, these findings reinforce the research position stressing the role of the employees in the

MO relationship and the operational level of the business incorporating new evidence into this emerging field of study.

Huseyin Arasli, et al., (2005)34 measured the service quality perceptions of Greek Cypriot bank customers and to examine the relationship between service quality, customer satisfaction and positive word of mouth, in the light of changing bank market dynamics due to EU accession. A total of 260 retail bank customers responded with a Greek translated version of SERVQUAL. After descriptive and factor analysis, multivariate regression analysis was used to estimate the impact of service quality dimensions on overall customer satisfaction and the impact of satisfaction on positive word of mouth. The SERVQUAL scale proved to be of a three-dimensional structure in this study. Results revealed that the expectations of bank customers were not met where the largest gap was obtained in the responsiveness-empathy dimension. Reliability items had the highest effect on customer satisfaction, which in turn had a statistically significant impact on the positive word of mouth.

34 Huseyin Arasli, Salime Mehtap-Smadi, Salih Turan Katircioglu, (2005) "Customer service quality in the Greek Cypriot banking industry", Managing Service Quality, Vol. 15 Iss: 1, pp.41 - 56

38 Gwo-Guang Lee, et al., (2005)35 develops a research model to examine the relationship between e-service quality dimensions and overall service quality, customer satisfaction and purchase intentions. Data from a survey of 297 online consumers were used to test the research model. Confirmatory factor analysis was conducted to examine the reliability and validity of the measurement model, and the structural equation modelling technique was used to test the research model. The analytical results showed that the dimensions of web site design, reliability, responsiveness, and trust affect overall service quality and customer satisfaction. Moreover, the latter in turn are significantly related to customer purchase intentions. However, the personalization dimension is not significantly related to overall service quality and customer satisfaction.

Pratibha A. et al., (2005)36 examined precisely how service process and service outcome are related to service quality and customer satisfaction evaluations, and to look for consistent patterns in the relationships between these four concepts. A theoretical framework is proposed to suggest links between the four concepts. The study is conducted in the real estate industry, and the focus is on home sellers' evaluations of the real estate agent's service. In-depth interviews and a short survey are used to collect the data. A combination of content analysis and statistical tests is used to look for patterns in the data. As proposed, process factors are closely linked with service quality, and outcome factors are closely linked to customer satisfaction. Also, as proposed, service quality evaluations

35 Gwo-Guang Lee, Hsiu-Fen Lin, (2005) "Customer perceptions of e-service quality in online shopping", International Journal of Retail & Distribution Management, Vol. 33 Iss: 2, pp.161 - 176 36 Pratibha A. Dabholkar, Jeffrey W. Overby, (2005) "Linking process and outcome to service quality and customer satisfaction evaluations: An investigation of real estate agent service", International Journal of Service Industry Management, Vol. 16 Iss: 1, pp.10 - 27

39 precede customer satisfaction for normal service evaluations, but the opposite causal order is found in extreme service evaluations.

Ishak Ismail, et al., (2006)37 explored the relationship between audit service quality, client satisfaction and loyalty to the audit firms. SERVQUAL model was used to measure the perceptions and expectations of public listed companies on the services received from audit firms. The five dimensions of

SERVQUAL, i.e. reliability, assurance, tangibility, empathy and responsiveness was used to measure the service quality of audit firms. The research was conducted using primary data. Questionnaires were sent to 500 public listed companies listed in Bursa Saham Malaysia for year 2005. The public listed companies were satisfied with the tangible dimension but were dissatisfied with the other four dimensions. The most dissatisfied dimension was empathy.

Customer satisfaction was found to partially mediate the relationship of reliability and customer loyalty.

Festus Olorunniwo (2006)38 investigated the possibility that the typology of a service as well as the operationalization of the service measurement scale may determine the nature of the service quality (SQ) construct and its relationship with those of customer satisfaction (SAT) and behavioral intentions

(BI). The study utilized the service classification scheme developed by

Schmenner and concentrated on the mass service category as an example to illustrate the concept with data from retail banking. Confirmatory factor analysis indicated that ―Responsiveness,‖ ―Tangibility,‖ ―Reliability,‖ ―Knowledge,‖ and

37 Ishak Ismail, Hasnah Haron, Daing Nasir Ibrahim, Salmi Mohd Isa, (2006) "Service quality, client satisfaction and loyalty towards audit firms: Perceptions of Malaysian public listed companies", Managerial Auditing Journal, Vol. 21 Iss: 7, pp.738 - 756 38 Festus Olorunniwo and Maxwell K. Hsu, A typology analysis of service quality, customer satisfaction and behavioral intentions in mass services‖ Managing Service Quality Vol. 16 No. 2, 2006, pp. 106-123

40 ―Accessibility‖ dimensions contribute significantly to service quality. It was further observed that SAT fully mediates the impact of SQ on BI.

Richard Boateng and Alemayehu Molla (2006)39 explored some of the issues that affected the key decisions that the bank made. These decisions relate to entering e-banking, e-banking channel choice, e-banking development, enticing customers, and managing channel conflict. The findings indicate that operational constraints related to customer location, the need to maintain customer satisfaction and the capabilities of the Bank's main software have been influential factors in motivating the decision to enter electronic banking services.

The bank's electronic channel choice is influenced by the systemic competence of a software technology that the bank acquired and the nature of the diffusion of information and communications technology among its clientele group.

Technology and human resources capabilities together with the development of electronic transactions in the Ghanaian market influenced the e-banking development. The sophistication of the current e-banking services and the incremental approach followed in rolling out e-banking appears to influence strategies to entice customers and channel conflict issues. The study concludes by highlighting the need for African Banks to understand customers' needs; the corresponding services offer; the resources and partnerships required to offer it; and develop appropriate e-banking strategies that maximize value for both customers and banks.

39 Developing E-banking Capabilities in a Ghanaian Bank: Preliminary Lessons, Journal of Internet Banking and Commerce, 11(2), 1-11.2006.

41 Moshe Givoni, et al., (2007)40 focused on two lines of investigation with regard to access to railway stations in the Netherlands. Firstly, the profile of the access and egress modes on journeys to and from railway stations is analyzed.

The researchers also examined how the availability of car affects the mode choice on journeys to the station. Secondly, the effect of passengers‘ perception of the station and of the journey to the station on the overall perception of traveling by rail is estimated. The results show that most of the passengers choose walking, bicycle and public transport to get to or from the railway station and that the availability of a car does not have a strong effect on the choice of access mode to the station. The quality of the station and the access/egress facilities was found to have an important effect on the general perception of traveling by rail.

Dennis J. Scotti (2007)41 examined how a high-involvement approach to the work environment of healthcare employees may lead to exceptional service quality, satisfied patients, and ultimately to loyal customers. Specifically, researchers investigate the chain of events through which high-performance work systems (HPWS) and customer orientation influence employee and customer perceptions of service quality and patient satisfaction in a national sample of 113 Veterans Health Administration (VHA) ambulatory care centers. the researchers present a conceptual model for linking work environment to customer satisfaction and test this model using structural equations modeling

(SEM). The results suggest that (1) HPWS is linked to employee perceptions of their ability to deliver high-quality customer service, both directly and through their perceptions of customer orientation; (2) employee perceptions of customer

40 Moshe Givoni and Piet Rietveld, ―The access journey to the railway station and its role in passengers‘ satisfaction with rail travel‖ Transport Policy 14 (2007) 357–365 41 Dennis J. Scotti, ―Links Among High-Performance Work Environment, Service Quality, and Customer Satisfaction: An Extension to the Healthcare Sector‖, Journal of Healthcare Management / Vol. 52, No. 2/ Page 109-125, 2007

42 service are linked to customer perceptions of high-quality service; and (3) perceived service quality is linked with customer satisfaction. Theoretical and practical implications of our findings, including suggestions of how healthcare managers can implement changes to their work environments, are discussed.

Panchapakesan Padma, et al., (2007)42 The purpose of their study is to conceptualize hospital service quality (SQ) into its component dimensions from the perspectives of patients and their attendants; and to analyze the relationship between SQ and customer satisfaction (CS) in government and private hospitals in India. The study employs questionnaire-survey approach to obtain the perceptions of patients and attendants. The instruments developed have been validated using tests for reliability, validity and uni-dimensionality. Data collected have been analyzed by using statistical techniques such as bi-variate correlation and multiple regressions. Patients and attendants treat the interpersonal aspect of care as the most important one, as they cannot fully evaluate the technical quality of healthcare services. The study also revealed that the hospital service providers have to understand the needs of both patients and attendants in order to gather a holistic view of their services.

Harry Maddern, et al., (2007)43 evaluated the drivers of customer satisfaction (CS), specifically exploring the impact of business process management (BPM) on service quality and CS. A longitudinal case study uses quantitative and qualitative data to test six propositions derived from current literature. Analysis confirms the role of staff satisfaction and service quality as

42 Panchapakesan Padma, Chandrasekharan Rajendran, Prakash Sai Lokachari, (2007) "Service quality and its impact on customer satisfaction in Indian hospitals: Perspectives of patients and their attendants", Benchmarking: An International Journal, Vol. 17 Iss: 6, pp.807 - 841 43 Harry Maddern, Roger Maull, Andi Smart, Paul Baker, (2007) "Customer satisfaction and service quality in UK financial services", International Journal of Operations & Production Management, Vol. 27 Iss: 9, pp.999 - 1019

43 key drivers of CS, suggested in the service profit chain, but proposes a more complex set of relationships. Technical service quality (TSQ) is found to play a critical role in determining CS and a strong causal link is found between TSQ and

BPM. Findings are based on a single case, in a fast-changing sector. Findings suggest that managers should focus on TSQ as a priority. End-to-end BPM is identified as a key enabler of TSQ.

Evangelos Tsoukatos, (2007)44 examined the effect of culture on service quality and customer satisfaction. By extending GIQUAL, an instrument developed for measuring service quality in Greek Insurance, to measure the culture of individuals, hypotheses on all 25 possible relationships between the dimensions of culture and of service quality are determined and tested. The relationships between the dimensions of service quality and customer satisfaction, in the light of culture, are further examined. Of the 25 hypothesized relationships between the dimensions of culture and of service quality, 23 are confirmed and the remaining two are directionally supported. The hypothesized importance of the service quality dimensions is also confirmed. However, the expected association between the importance of quality dimensions and the strength of their relationships with customer satisfaction is only directionally supported. Although the typology of Hofstede is used in the study, a culture different from the one specified for Greece by Hofstede's scores is exposed.

Laura Eboli, et al., (2007)45 in their article a tool for measuring customer satisfaction in public transport is proposed. Specifically, a structural equation model is formulated to explore the impact of the relationship between global

44 Evangelos Tsoukatos, Graham K. Rand, (2007) "Cultural influences on service quality and customer satisfaction: evidence from Greek insurance", Managing Service Quality, Vol. 17 Iss: 4, pp.467 - 485 45 Laura Eboli and Gabriella Mazzulla, ―Service Quality Attributes Affecting Customer Satisfaction for Bus Transit‖, Journal of Public Transportation, Vol. 10, No. 3, 2007, pp.21-33.

44 customer satisfaction and service quality attributes. The public transport service analyzed is the bus service habitually used by University of Calabria students to reach the campus from the urban area of Cosenza (southern Italy). To calibrate the model, some data collected in a survey addressed to a sample of students were used. The proposed model can be useful both to transport agencies and planners to analyze the correlation between service quality attributes and identify the more convenient attributes for improving the supplied service.

Dennis J. Scotti, et al., (2007)46 examined how a high-involvement approach to the work environment of healthcare employees may lead to exceptional service quality, satisfied patients, and ultimately to loyal customers.

Specifically, the researchers investigate the chain of events through which high- performance work systems (HPWS) and customer orientation influence employee and customer perceptions of service quality and patient satisfaction in a national sample of 113 Veterans Health Administration (VHA) ambulatory care centers.

The researchers present a conceptual model for linking work environment to customer satisfaction and test this model using structural equations modeling

(SEM). The results suggest that (1) HPWS is linked to employee perceptions of their ability to deliver high-quality customer service, both directly and through their perceptions of customer orientation; (2) employee perceptions of customer service are linked to customer perceptions of high-quality service; and (3) perceived service quality is linked with customer satisfaction.

46 Dennis J. Scotti,and E. Driscoll,‖ Links Among High-Performance Work Environment, Service Quality, and Customer Satisfaction: An Extension to the Healthcare Sector‖ Journal of Healthcare Management / Vol. 52, No. 2/ pp. 109-124

45 Rajesh Kumar Srivastava (2007)47 carried out a research to validate the conceptual model of internet banking. The causes were identified and researched through correcting the causative factors so that internet banking can be used by more people. This will help the banking operations to be more cost effective. The research is focused on what are the customer‘s perceptions about internet banking and what are the drivers that drive consumers. How consumers have accepted internet banking and how to improve the usage rate were the focus of the research area in this study. Qualitative exploratory research using questionnaire was applied. 500 respondents were selected for study after initial screening. They were all bank customers. The study revealed that education, gender, income plays an important role in the usage of internet banking. Not much research has been done in these areas as they were focused more on the acceptance of technology rather than on people. The research corroborated the conceptual framework stating that if skills can be upgraded there will be a greater will to use internet banking by consumers. Inhibitory factors like trust, gender, education, culture, religion, security, price can have minimal effect on the consumer mindset towards internet banking.

Vanniarajan (2008)48 identified the attributes which passengers use to evaluate the service quality of Indian railways and develops a comprehensive instrument namely RAILQUAL. The linkage between Railqual and passengers' satisfaction is also evaluated by the data collected from the passengers of

Southern Railways. The important railqual factors identified by the passengers are reliability, assurance and empathy. The service offered by southern railways

47 Customer‘s perception on usage of internet banking, Innovative Marketing, Volume 3, Issue 4, 2007. 48 Vanniarajan, T.; Stephen, A. ―Railqual and Passengers Satisfaction: An Empirical Study in Southern Railways‖, Asia-Pacific Business Review, Vol. 4, No. 1, pp. 28-35, 2008

46 is up to the expectation of their passengers. The significantly and positively influencing railqual factors on the passenger's satisfaction and image of the

Indian railways are its reliability and empathy. The intangible aspects of service performance of Indian railways have a strong direct and positive effect on the passenger's favourable attitude and image.

Markus Fellesson, et al., (2008)49 their study provided a transnational comparison of the perceived service satisfaction with public transport in eight

European countries. Data was collected from 9,542 respondents in Stockholm,

Barcelona, Copenhagen, Geneva, Helsinki, Vienna, Berlin, Manchester, and

Oslo. The respondents rated their agreement with 17 attribute-related statements regarding local public transport services. Using factor analysis, this study identifies the four satisfaction dimensions of system, comfort, staff, and safety, which were present in most, but not all of the cities. These findings indicate that there are differences in how public transport is perceived. This needs to be addressed in order to make comparison meaningful. Different explanations for these diverse findings are discussed.

V. Kumar, et al., (2008)50 investigated the linkages between business process management (BPM) and customer satisfaction. Also, to challenge the dominance of the customer contact perspectives on service processes and to propose a more systemic focus on the totality of service design. The research builds on the existing work of Maddern et al. through the use of structured equation modelling (SEM) tool. The multiple SEM models described here

49 Markus Fellesson and Margareta Friman, ―Perceived Satisfaction with Public Transport Service in Nine European Cities‖, Journal of the Transportation Research Forum, Vol. 47, No. 3 (Public Transit Special Issue 2008), pp. 93‐103 50 V. Kumar, P.A. Smart, H. Maddern, R.S. Maull, (2008) "Alternative perspectives on service quality and customer satisfaction: the role of BPM", International Journal of Service Industry Management, Vol. 19 Iss: 2, pp.176 - 187

47 provide a more robust statistical approach for confirming/refuting the constructs found in the earlier research. This study presents the results of an empirical analysis, based on longitudinal data from a large UK bank on drivers of customer satisfaction. The results confirm that process management is a critical driver of technical service quality. This suggests that companies with reliability/dependability issues should not emphasise customer satisfaction programmes based on SERVQUAL intangibles until substantial improvements in process design have been achieved.

Lim Yik Ming, (2008)51 in his study he developed and empirically tested a conceptual model of the impact of internet banking service quality on customer satisfaction and behavioral intentions. Based on the relevant literature review, a questionnaire was designed and administered to 300 users of internet banking in

Mauritius. The findings revealed that customers' perceptions are consistently lower than their expectations and the most dissatisfied dimension was reliability.

It was further found that reliability and security was perceived as the most important dimensions in internet banking transactions that influences satisfaction and behavioral intentions. Customer satisfaction was found to mediate the relationship between customer behavioral intentions.

Irini D. Rigopoulou, et al., (2008)52 investigated the effect of after-sales services on customers' satisfaction as well as on their behavioural intentions, namely ―repurchase intention‖ and ―word-of-mouth‖ (WOM). The research conducted followed a quantitative methodology. The selected research tool was a questionnaire, which was administered via phone interviews using the CATI

51 The Impact Of Internet Banking Service Quality On Satisfaction And Behavioral Intentions, International Journal of Business and Information, Volume 3, Number 2, December 2008. 52 Irini D. Rigopoulou, Ioannis E. Chaniotakis, Constantine Lymperopoulos, George I. Siomkos, (2008) "After-sales service quality as an antecedent of customer satisfaction: The case of electronic appliances", Managing Service Quality, Vol. 18 Iss: 5, pp.512 - 527

48 process. The study conducted was targeted to customers of a large retail chain marketing electrical appliances in Greece and 420 usable responses were utilized.

A path analysis was performed using the ―Amos 4.0‖ software. After-sales service quality affect satisfaction, which in turn affects behavioural intentions.

Hence, after-sales services affect the overall offering and thus, the quality of the relationship with customers.

Mohammed Hossain, et al., (2009)53 evaluated the service quality in retail banking in the Middle East in general, and Qatar in particular, based on different levels of customers' perception regarding service quality. This is an analytical study based mainly on the primary data collected through a scientifically developed questionnaire. The questionnaire have been personally administered on a sample size of 120, chosen on a convenient basis from four

Qatari banks, i.e. Qatar National Bank, Doha Bank, Qatar International Islamic

Bank, and Arab Bank. The questionnaire has been designed on the basis of the study of previous scholars such as Berryet al., Parasuraman et al., Zeithaml and

Bitner, and Stafford. The result indicates that customers' perception is highest in the tangibles area and lowest in the competence area.

Mohammad Muzahid Akbar (2009)54 proposed a conceptual framework to investigate the effects of customers‘ perceived service quality, trust, and customer satisfaction on customer loyalty. To test the conceptual framework, structural equation modeling (SEM) has been used to analyze the data collected from 304 customers of a major private telecommunication company operating in

53 Mohammed Hossain, Shirley Leo, (2009) "Customer perception on service quality in retail banking in Middle East: the case of Qatar", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 2 Iss: 4, pp.338 - 350 54 Mohammad Muzahid Akbar and Noorjahan Parvez, ―Impact of Service Quality, Trust and Customer Satisfaction on Customer Loyalty‖ ABAC Journal Vol. 29, No. 1 (January-April 2009, pp.24-38)

49 Bangladesh. The results of the study indicate that trust and customer satisfaction are significantly and positively related to customer loyalty. Customer satisfaction has found to be an important mediator between perceived service quality and customer loyalty. A clear understanding of the postulated relationships among the studied variables might encourage the mobile service provider(s) to figure out appropriate course of action to win customers‘ trust by providing better services in order to create a loyal customer base.

Azman Ismail, et al., (2009)55 explored the relationships among service quality features (responsiveness, assurance, and empathy), perceived value and customer satisfaction in the context of Malaysia. The empirical data are drawn from 102 members of an academic staff of a Malaysian public institution of higher learning using a survey questionnaire. The results indicate three important findings: firstly, the interaction between perceived value and responsiveness was not significantly correlated with customer satisfaction. Secondly, the interaction between perceived value and assurance also did not correlate significantly with customer satisfaction. Thirdly, the interaction between perceived value and empathy correlated significantly with customer satisfaction. Thus the results demonstrate that perceived value had increased the effect of empathy on customer satisfaction, but it had not increased the effect of responsiveness and assurance on customer satisfaction. In sum, this study confirms that perceived value act as a partial moderating variable in the service quality models of the organizational sample. In addition, implications and limitations of this study, as well as directions for future research are discussed.

55 Azman Ismail1; Muhammad Madi Bin Abdullah2; Sebastian K. Francis3, ―Exploring the relationships among service quality features, perceived value and customer satisfaction‖, Journal of industrial engineering and management, 2009, 2 (1): 230-250.

50 Bylon Abeeku Bamfo (2009)56 explored the relationship between customer satisfaction and loyalty in the mobile telecommunication industry. In other words, the study sought to verify if customer satisfaction leads to customer loyalty in the mobile telecommunication industry in Ghana. The main method used for the collection of data was survey questionnaire to two hundred respondents who happened to be subscribers in the mobile telecom industry. It was realised, among other things, that a lot of the customers at certain points in time have been dissatisfied with their mobile telecom service providers. It was also realised that there was no direct link between customer satisfaction and loyalty. Most of the customers who said they were satisfied were ready to switch to another company should that company offer superior service.

Hong Qin, et al., (2009)57 explored the potential dimensions of service quality, and examined the relationship among service quality, food quality, perceived value, customer satisfaction and behavioral intentions in fast-food restaurants (FFRs). The construct reliability and validity was assessed using exploratory factor analysis and confirmatory factor analysis. Structural equation modeling was employed to estimate the relationship among service quality, customer satisfaction, and behavioral intentions. Results indicated that five dimensions were significant: tangibles, reliability/responsiveness, recovery, assurance, and empathy. Service quality and food quality were two main determinants of customer satisfaction. The insignificance of perceived value is

56 Bylon Abeeku Bamfo, ―Exploring the Relationship between Customer Satisfaction and Loyalty in the Mobile Telecommunication Industry in Ghana‖ Indian Journal of Economics and Business (2009) Vol.: 8, Issue: 2, pp.: 299-311 57 Hong Qin, Victor R. Prybutok, (2009) "Service quality, customer satisfaction, and behavioral intentions in fast-food restaurants", International Journal of Quality and Service Sciences, Vol. 1 Iss: 1, pp.78 - 95

51 potentially due to the homogeneous nature of the construct within the FFR group rather than the importance of the perceived value construct within food service.

Hummayoun Naeem, et al., (2009)58 investigated the impact of service quality on customer satisfaction in the Pakistani banking sector. Hypothesis developed for the study was ―higher level of service quality leads to higher level of customer satisfaction‖. A sample of two hundred respondents, (one hundred from a foreign bank and one hundred from a public sector / nationalized bank located in the twin cities of Rawalpindi and Islamabad) was drawn on the basis of simple random sampling. Various constructs of the SERVQUAL model developed by Zeithaml and Bitner (1996) and five point customer satisfaction tool developed by Taylor and Baker (1994) were adopted and used for data collection. Data were analyzed through SPSS version 14. The results of the regression analysis indicated that service quality was proved to be a strong predictor of customer satisfaction in the case of the foreign bank with the R2 value of 0.644 accepting the research hypothesis and rejecting the null hypothesis as compared value R2 of 0.156 that does not support the research hypothesis in the case of a public sector bank. The study concluded that service quality, if managed effectively, can contribute significantly towards customer satisfaction.

Devi Prasad Maruvada, et.al., (2010)59 identified the attributes to evaluate the quality of Railway Passenger Services and develops a comprehensive instrument ―RAILQUAL‖ on the basis of SERVQUAL and Rail

Transport quality. Fuzzy set Theory has been applied to evaluate the service

58 Hummayoun Naeem and M. Iqbal Saif,, ―Service Quality And Its Impact On Customer Satisfaction: An Empirical Evidence From The Pakistani Banking Sector‖ International Business & Economics Research Journa, Vol. 8, No. 12,pp.99-104, December 2009 59 Devi Prasad Maruvada, Dr Raja Shekhar Bellamkonda, ―Analyzing the Passenger Service Quality of the Indian Railways using Railqual: Examining the Applicability of Fuzzy Logic‖, International Journal of Innovation, Management and Technology, Vol. 1, No. 5, pp. 478-482, December 2010

52 quality of the Indian Railways. This study develops an analysis architecture, which consists of fuzzy measurement of S-I (Satisfaction - Importance) degree.

The measurement of S-I gap with fuzzy approach is to reduce subjectivity and ambiguity of passengers‘ judgment of service quality. Fuzzy logic helps in representing the vagueness of evaluators‘ judgment. Using SERVQAUL methodology, the optimal fuzzy interval of gap scores is determined for each item. Fuzzy approach is a more realistic way to use linguistic assessments instead of numerical values. An empirical study is conducted using the proposed approach.

Devi Prasad, et al., (2010)60 the main objective of their study is to present a framework developed for assisting Railways to monitor and control the quality of services provided to passengers. The study evaluated the passenger

Rail Service quality of Indian Railways by developing SQM (Service Quality

Management) model on the basis of SERVQUAL and Rail Transport quality.

Three new dimensions (Service Product, Social Responsibility and service delivery) are added to the original five SERVQUAL dimensions (i.e. assurance, empathy, reliability, responsiveness and tangibles). The instrument is tested for reliability and validity. Empirical study was conducted at Secunderabad Railway station of South Central Railway, India, using a purposive sample of 200 respondents. Valid responses from the questionnaire are statistically analyzed by using factor analysis. This research has also identified the order of importance for these eight factors, for example service delivery and social responsibility are identified as the most important and the least important factors respectively. This study would help the Railways to monitor, control and improve the service.

60 M. Devi Prasad and Dr. B. Raja Shekhar, ―Impact of Service Quality Management (SQM) Practices on Indian Railways - A Study of South Central Railways‖, International Journal of Business and Management Vol. 5, No. 9; pp. 139-144, 2010.

53 Barbara Culiberg, et al., (2010)61 explored service quality in a retail bank setting in Slovenia and its influence on customer satisfaction. Based on

SERVPERF a 28-item scale has been developed for this study. Through factor analysis four dimensions of service quality have been obtained. The results from regression analysis suggest that all four dimensions of service quality as well as service range influence customer satisfaction.

Fazlina Waris, et al., (2010)62 their study applies the binary logistic regression analysis to analyze the customer perception towards electric commuter train (ECT) services in Malaysia. Thus, this study is focused on KTM

Komuter since it is the only ECT provider in Malaysia. Data from respondents in twelve selected KTM Komuter stations were used to measure the performance of the model in correctly classifying service status via punctuality, frequency, speed, space, reliability, comfort, safety, and train operation. A total of 564 respondents among the customers on board the train and those waiting for trains are conveniently available in the stations were interviewed using structured questionnaires. Logistic Regression analysis was used to identify the factors that could influence the good services provided by KTM Komuter. It was found that, the factors that most influence the good services were frequency, speed, reliability, comfort, safety, and train operation. This result it based on the customer perception and the final model indicated that the approach may be useful for estimating aggregate of good service.

61 Barbara Culiberg, ―Identifying Service Quality Dimensions As Antecedents To Customer Satisfaction In Retail Banking‖, Economic And Business Review, Vol. 12, No. 3, pp. 151–166, 2010 | 62 Fazlina Waris and Jusoh Yacob, ―Customers‘ Perception towards Electric Commuter Train Services: Application of Logistic Regression Analysis‖, Proceedings of the Regional Conference on Statistical Sciences 2010 (RCSS‘10)

54 Ishfaq Ahmed, et al., (2010)63 study aims to study the impact of service quality on customer repurchase intentions. Satisfaction is a variable which is an outcome of better service quality, and in return, it gives customers the zeal to stay with the service provider and creates greater repurchase intentions for the customers. So, satisfaction is considered as a mediating variable in the study. The study is conducted in the telecom sector (only cellular companies) of Pakistan.

Service quality is measured using Parasuraman et al. (1988) SERVQUAL model containing 5 dimensions of service quality (tangibles, responsiveness, empathy, assurance and reliability). Nonetheless, the relationship of service quality with customer repurchase intentions is also studied. The data were collected from 331 young mobile users, and as such, correlation and regression analysis were used to analyze the data. However, results and discussion are presented.

Geetika, Shefali Nandan (2010)64 his study identifies components of service quality of Indian Railways at railway platforms. The study is exploratory in nature and uses factor analysis to identify the most important factors of customer satisfaction with service quality. The research methodology is empirical, and a survey of passengers (customers) was conducted. The findings reveal that five factors are considered important for determining satisfaction with railway platforms, the most important of which are refreshments and behavioral factors. Managerial and theoretical implications are drawn and discussed in the paper, and a model is proposed.

63 Ishfaq Ahmed, Muhammad Musarrat Nawaz, Ahmad Usman and Muhammad Zeeshan Shaukat, ―A mediation of customer satisfaction relationship between service quality and repurchase intentions for the telecom sector in Pakistan: A case study of university students‖, African Journal of Business Management Vol. 4(16), pp. 3457-3462, 18 November, 2010 64 Geetika, Shefali Nandan,‖ Determinants of Customer Satisfaction on Service Quality:A Study of Railway Platforms in India‖, Journal of Public Transportation, Vol. 13, No. 1, 2010, pp.97-113

55 Jayaraman Munusamy, et al., (2010)65 focused on the measurement of customer satisfaction through delivery of service quality in the banking sector in

Malaysia. A quantitative research was used to study the relationship between service quality dimensions and customer satisfaction. Assurance has positive relationship but it has no significant effect on customer satisfaction. Reliability has negative relationship but it has no significant effect on customer satisfaction.

Tangibles have positive relationship and have significant impact on customer satisfaction. Empathy has positive relationship but it has no significant effect on customer satisfaction. Responsiveness has positive relationship but no significant impact on customer satisfaction. The study highlights implications for marketers in banking industry for improvement in delivery of service quality.

Mohammed et al., (2010)66 examined the relationship between the e- service quality dimensions and customer satisfaction of banks in Jordan. Using a structured questionnaire, the primary data were collected from 457 customers who had e-banking transactions with banks in Jordan. Multiple regression analysis was employed to test the research model and hypotheses. The research findings indicate that e-service quality dimensions such as website attributes, reliability, perceived risk, responsiveness and customisation have a positive and significant effect on the banks overall customers' satisfaction and its elements individually. The findings also indicate that the strongest predictors, based on beta values, of e-service quality dimensions on the overall bank's customers'

65 Jayaraman Munusamy, Shankar Chelliah and Hor Wai Mun, ―Service Quality Delivery and Its Impact on Customer Satisfaction in the Banking Sector in Malaysia‖, International Journal of Innovation, Management and Technology, Vol. 1, No. 4, October 2010, pp.398-403 66 Mohammed T. Nuseir, Mamoun N. Bushra K. and Abdullah Q. Bataine, ―The effect of e- service quality on customers' satisfaction in banks operating in Jordan: an empirical investigation of customers' perspective, International Journal of Services, Economics and Management, Vol.2, No.1, pp.80-108, 2010.

56 satisfaction and its individual elements are responsiveness, website attributes and customisation, respectively.

Vibha Arora, et al., (2011)67 investigated the various dimensions of service quality and how these dimensions determine customer satisfaction in

Indian banking sector. Using Service performance (Servperf) model, the survey was undertaken in Delhi and National capital region of the sample of 318 respondents to test dimensionality of servperf by using constructs validity and reliability test. Servperf model proved to be four dimensional in the context of

Indian banking sector. Further multivariate regression analysis was used to see the impact of service quality dimensions on customer satisfaction. Reliability and service interaction were found to be significant variables to customer satisfaction in India.

Amber Abraheem Shlash Mohammad, et al., (2011)68 examined the level of service quality as perceived by customers of commercial bank working in

Jordan and it's affect customer satisfaction, Service quality measure is based on a modified version of SERVQUAL as proposed by Parasuraman et al. (1988), which involve five dimensions of Service quality, namely Reliability,

Responsiveness, Empathy, Assurance, and Tangibles. Customer satisfaction was measured by a nine item adapted from Walfried et al. (2000), 260 questionnaires were distributed randomly to customers of commercial bank branches located

(thirteen commercial banks in Jordan ) in IRBID (A city of Jordan ). Multiple regression analysis was employed to test the impact of service quality on

67 Vibha Arora Dr. Nravichandran and Dr. N.K. Jain, ―Dimensionality Of Service Quality And Its Critical Predictors To Customer Satisfaction In Indian Retail Banking‖, International Journal of Multidisciplinary Research Vol.1 Issue 5, pp.1-11, 2011, 68 Anber Abraheem Shlash Mohammad and Shireen Yaseen Mohammad Alhamadani, ―Service Quality Perspectives and Customer Satisfaction in Commercial Banks Working in Jordan‖, Middle Eastern Finance and Economics - Issue 14, pp.60-71, 2011.

57 customer satisfaction. The results of this study indicated that service quality is an important antecedent of customer satisfaction.

Fatima Holy Ghost, et al., (2011)69 identified the customer's perception on service quality factors in commercial banks and the customer satisfaction towards the banks ; to analyze the impact of perception on service quality factors in commercial banks among the different group of customers based on their demographics. The applied sampling technique is purposive sampling. The present study concludes that there is a close link between the customer's perception of the service quality factors and the customer satisfaction. But the impacts of a service quality factor in customer satisfaction among the customer are not unique. It depends upon the demographic profile of the customers.

Abed Abedniya, et al., (2011)70 investigated the direct impact of perceived service quality on customer satisfaction in the context of Islamic banking system in Malaysia. In this study researchers used CARTER instrument for measuring perceived service quality and customer satisfaction. In addition, this study indicates the gap between customer expectation and perception concerning service quality dimension base on CARTER instrument. By measuring this gap researchers find the level of customers‘ perceive service quality and compare it with customer satisfaction level. Therefore, comparison of this result can indicate the relation between customer satisfactions and perceive service quality.

69 Dr. S. Fatima Holy Ghost and Dr. M. Edwin Gnanadhas, ―Impact Of Service Quality In Commercial Banks On The Customers Satisfaction: An Empirical Study‖ International Journal of Multidisciplinary Research Vol.1 Issue 6, pp. 19-37, 2011, 70 Abed Abedniya, Majid Nokhbeh Zaeim and Bardia Yousef Hakimi, ―Investigating the Relationship between Customers‘ Perceived Service Quality and Satisfaction: Islamic Bank in Malaysia‖, European Journal of Social Sciences – Vol. 21, No. 4, pp. 603-624 (2011)

58 Biljana Angelova, et al., (2011)71 applied the ACSI model in the context of service quality in the Macedonian mobile telecommunication industry in order to describe how customers perceive service quality and whether they are satisfied with the services offered by T-Mobile, ONE, and VIP (three mobile telecom players). A structured questionnaire was developed from the ACSI model and was randomly distributed to the users of the three mobile operators to determine their satisfaction with service quality delivery in the Macedonian mobile telecommunication market. From the analysis carried out, it was found out that the overall service quality perceived by the customers was not satisfactory, that expectations were higher than perceptions. Customers were not satisfied with the service.

Vijay M. Kumbhar (2011)72 evaluated the major factors (i.e. service quality, brand perception and perceived value) affecting on customers‘ satisfaction in e-banking service settings. This study also evaluated the influence of service quality on brand perception, perceived value and satisfaction in e- banking. Required data were collected through customer survey. For conducting customer survey Likert scale based questionnaire was developed after review of literature and discussions with bank managers as well as experts in customer service and marketing. Collected data were analyzed using principle component

(PCA) using SPSS 19.0. A result indicates that, Perceived Value, Brand

Perception, Cost Effectiveness, Easy to Use, Convenience, Problem Handling,

Security/Assurance and Responsiveness are important factors in customer

71 Biljana Angelova and Jusuf Zekiri, ― Measuring Customer Satisfaction with Service Quality Using American Customer Satisfaction Model (ACSI Model)‖, International Journal of Academic Research in Business and Social Sciences, Vol. 1, No. 3,pp. 232-258 October 2011. 72 Vijay M. Kumbhar, ―Factors Affecting The Customer Satisfaction In E-Banking: Some Evidences Form Indian Banks‖, Management Research And Practice Vol. 3 Issue 4 (2011) pp: 1- 14.

59 satisfaction in e-banking it explains 48.30 per cent of variance. Contact Facilities,

System Availability, Fulfillment, Efficiency and Compensation are comparatively less important because these dimensions explain 21.70 per cent of variance in customers‘ satisfaction. Security/Assurance, Responsiveness, Easy to Use, Cost

Effectiveness and Compensation are predictors of brand perception in e-banking and Fulfillment, Efficiency, Security/Assurance, Responsiveness, Convenience,

Cost Effectiveness, Problem Handling and Compensation are predictors of perceived value in e-banking.

K. Rama Mohana Rao, et al., (2011)73 conducted the study to examine the service quality perceptions of the customers of public sector and private sector banks in the city of Visakhapatnam, India. A total of 300 respondents was surveyed using the universally accepted SERVQUAL model in which 42 quality measurement parameters are used under the five dimensions of service quality:

Tangibles, Reliability, Assurance, Responsiveness, and Empathy. The study reveals that the Reliability and Assurance dimensions of service quality scored the highest ratings while the Tangibles dimension got the lowest score. Moreover, the study found a strong dissimilarity in service quality perceptions between customers of private sector and public sector banks.

Sivakumar (2011)74 focused on the customer satisfaction and loyalty on

Aircel connections in Tiruchirappalli City. The main focus of the study is to understand the customer satisfaction of the customers, to know the value and

73 K. Rama Mohana Rao And Tekeste Berhanu Lakew, ―Service Quality Perceptions Of Customers: A Study Of The Customers‘ Of Public Sector And Private Sector Commercial Banks In India‖ International Journal Of Research In Commerce & Management, Volume No. 2 (2011), Issue No. 11 pp.13-16. 74 Dr. K. Sivakumar, ―A Study On Customer Satisfaction And Loyalty Towards Aircel Pre And Post Paid Customers In Tamilnadu With Special Reference To Tiruchirappalli City‖ International Journal Of Research In Computer Application & Management Vol.No: 1 (2011), Issue No. 5, pp.25-38.

60 service of the Aircel, to find the loyalty of the customers and to make suggestions based on the findings of the study. This study was conducted in Tiruchirappalli

City where in 400 customers‘ opinions were taken for analysis. The tools adopted for this study was an interview schedule. Looking into the major finding it is revealed that 26 percent of the respondent's opinion feels to be neutral towards customer satisfaction with regard to post paid connection and 28 per cent fail to be somewhat satisfied with regard to prepaid connection. It also found that 28 per cent of the respondents‘ customer loyalty is due to service quality of the connection in view of post paid and 30 of the respondents customer loyalty is due to the emotional attachment of the connection in view of prepaid.

Hazlina Abdul Kadir, et al., (2011)75 identified the effects of services offered by Malaysian banks through online media and ATMs on customer satisfaction. 500 students from different universities in Malaysia including

University of Malaya, University Kebangsan Malaysia, University Putra

Malaysia, Multimedia University Malaysia and Limkokwing University chosen as a sample frame of the study. Questionnaires are distributed among them and they are asked to respond to questions which ask about their perception as well as experience for their banks. Two analyses are employed to fully reflect the effect of online and ATM services on their satisfaction level. The first one was the service quality model which compares the difference between satisfaction and expectation level in order to find out which dimensions need to be improved. A second analysis was Two-Way ANOVA analysis which tried to identify the relationship between demographic factors and the study‘s outcome. Finally, the

75 Hazlina Abdul Kadir, Nasim Rahmani and Reza Masinaei, ―Impacts of service quality on customer satisfaction: Study of Online banking and ATM services in Malaysia‖, International Journal of Trade, Economics and Finance, Vol.2, No.1, pp.1-9, 2011.

61 study determined which factors have the most effect and which factors have the least effect on customer satisfaction level.

Satendra Thakur, et al., (2011)76 examined the relationship between service quality and customer satisfaction among group of customer towards the public sector banking industries in India. The study is cross sectional and descriptive in nature. Service quality consists of service product, service delivery and service environment, whereas service product refers to the technical quality of service, service delivery refers to functional quality and service environment refers to internal and external. 400 questionnaires distributed to the customer of different department and agency, where 304 is returned back. The hypotheses were tested using the multiple regressions. The finding indicates that service product is significantly and positively related to customer satisfaction; however service delivery and service environment are not significant predictors of customer satisfaction.

Aamna Shakeel Abbasi, et al., (2010)77 highlighted that customer satisfaction is exceedingly personal estimation that is deeply influenced by the customer expectations regarding the services. The most dynamic verb in the lexis of customer satisfaction is ‗to improve‘. Hence the hotel industry like other industries is realizing the significance of customer centered philosophies with the overall goal in terms of customer satisfaction is to stay as close to their customers as possible. It started with the concept of customer satisfaction in the hotel industry and the determinants of satisfaction which eventually leads to

76 Satendra Thakur And A. P Singh, ―Service Quality And Customer Satisfaction: A Study With Special Reference To Public Sector Banking Industries In India‖, International Journal Of Management Research And Review, Vol. 1, Issue 1, Pp.24-38, 2011. 77 Aamna Shakeel Abbasi, Wajiha Khalid, Madeeha Azam and Adnan Riaz,, Determinants of Customer Satisfaction in Hotel Industry of Pakistan, European Journal of Scientific Research,Vol.48 No.1 (2010), pp.97-105

62 future intentions of customers. 5 likert scales was worn to gauge the responses.

The aftermaths of the study showed that improved and superior service quality and service features will augment the customer satisfaction and the future intentions of satisfied customers will be magnified

Satendra Thakur, et al., (2011)78 discussed about the impact of service quality, customer satisfaction, and trust on customer loyalty in major telecommunication company operating in Madhya Pradesh. Data has been collected from 248 subscriber customer of the company. The result of the study indicate that customer satisfaction is significantly and positively related with customer loyalty, customer satisfaction is to be found important mediator between service quality and customer loyalty, A clear understanding of the postulated relationships among the studied variables might encourage the mobile service provider(s) to figure out appropriate course of action to win customers satisfaction by providing better services in order to create a loyal customer base.

Gloria K.Q Agyapong (2011)79 examined the relationship between service quality and customer satisfaction in the utility industry (telecom) in

Ghana. The study adapted the SERVQUAL model as the main framework for analyzing service quality. Multiple regression analysis was used to examine the relationships between service quality variables and customer satisfaction. The results showed that all the service quality items were good predictors of customer satisfaction. For managers, this finding has important implications with regard to brand building strategies. Indications of a successful brand building strategy are

78 Satendra Thakur and Dr. A. P Singh, ―Impact Of Service Quality, Customer Satisfaction And Trust On Customer Loyalty: A Study With Special Reference To Telecommunication Company In Madhya Pradesh (India)‖, Zenith International Journal Of Business Economics & Management Research Vol.1 Issue 2, Nov 2011, Pp.66-72 79 Gloria K.Q Agyapong, ―The Effect of Service Quality on Customer Satisfaction in the Utility Industry – A Case of Vodafone (Ghana)‖ International Journal of Business and Management Vol. 6, No. 5; pp. 203-207, May 2011.

63 found when companies provide quality services relative to other companies within the same industry. It is imperative for Vodafone (Ghana) and other telecom firms, therefore, to improve customer services by giving customers what they want and at the right time. Thus, identifying and satisfying customers‘ needs could improve network services because what is offered can be used to separate the company‘s services from competitors‘.

Hazlina Abdul Kadir, et al., (2011)80 tries to identify the effects of services offered by Malaysian banks through online media and ATMs on customer satisfaction. 500 students from different universities in Malaysia including University of Malaya, University Kebangsan Malaysia, University

Putra Malaysia, Multimedia University Malaysia and Limkokwing University chosen as a sample frame of the study. Questionnaires are distributed among them and they are asked to respond to questions which ask about their perception as well as experience for their banks. Two analyses are employed to fully reflect the effect of online and ATM services on their satisfaction level. The first one was service quality model which compares the difference between satisfaction and expectation level in order to find out which dimensions need to be improved.

Second analysis was Two-Way ANOVA analysis which tried to identify the relationship between demographic factors and the study‘s outcome. Finally, the study determined which factors have the most effect and which factors have the least effect on customer satisfaction level.

80 Hazlina Abdul Kadir, Nasim Rahmani and Reza Masinaei, ―Impacts of service quality on customer satisfaction: Study of Online banking and ATM services in Malaysia‖, International Journal of Trade, Economics and Finance, Vol.2, No.1, 2011, pp. 1-9.

64 Chaminda Chiran Jayasundara (2011)81 reviews the existing literature related to customer satisfaction in relation to service quality to identify the research issues and implications to establish further research avenues in the field.

The study revealed that there is a consensus among service marketing researchers on the causal sequence/order of the concepts of customer satisfaction and service quality. Through conceptual improvement and empirical findings of past studies, most researchers have concurred on the fact that quality judgments cause satisfaction, leading to the finding on service quality being the antecedent of customer satisfaction. The formation of satisfaction in relation to service quality is generally based upon some significant theories identified in the literature and it recognised two dominant theoretical paradigms, disconfirmation and performance-only, which can be duly used for modelling customer satisfaction through the service quality perspective in organisations, enabling them to perform possible customer-led service quality evaluations. Secondly, the review more closely examined the potentiality of the prevalent service quality and customer satisfaction models which have been applied in the field of library and information services, such as SERVQUAL, SERVPREF and LibQUAL, understand the customer satisfaction process in the context of service quality.

These models were, however, not adequately qualified to confirm their strong applicability for the modelling of the satisfaction process in libraries. Finally, the review concluded with fourteen research issues and their implications relating to library services in demonstrating the void of the prevailing body of knowledge, for new research avenues.

81 Chaminda Chiran Jayasundara, ―A Modular approach to Customer Satisfaction in Relation to Service Quality‖, Journal of the University Librarians‘ Association of Sri Lanka, Vol.15, Issue 1, June 2011; 23-82

65 R. Renganathan (2011)82 analyzed the hotel guests‘ expectations and perceptions of hotel services and the role of demographic variables in evaluating the Service quality and also to ascertain how Factor analysis can be used to identify number of factors underlying SERVQUAL components (items).

Statistical methods like descriptive analysis, reliability analysis, multiple regressions and exploratory factor analysis were used to evaluate the service quality. The findings of the research showed that with regard to individual

SERVQUAL dimensions, gap values are positive for tangibles, reliability, assurance and gap values are negative for responsiveness and empathy. With regard to Factor analysis, data on hotel guests‘ perceptions divided SERVQUAL items into four main factors, with Eigen values greater than 1.0 and data on expectations divided SERVQUAL items into three main factors, with Eigen values greater than 1.0.It is recommended to the managers‘ of the hotels to understand the expectations of their guests‘ and make their service personnel to respond as per their guests‘ expectations and also to be compassionate enough to serve their guests‘ appropriately. Managers can utilize the guests‘ feedback to understand their perception towards the various hospitality aspects of the hotels.

Jusuf Zekiri (2011)83 in his study a structured questionnaire was developed from the SERVQUAL model and was randomly distributed to the users of the three mobile operators to determine their satisfaction with service quality delivery in the Macedonian mobile telecommunication market. From the analysis carried out, it was found out that the overall service quality perceived by

82 R. Renganathan, ―Service Quality in Hospitality Services: Gap Model and Factor Analysis‖ European Journal of Social Sciences, Vol.26, No.2 (2011), pp. 159-175 83 Jusuf Zekiri, ―Applying SERVQUAL Model and Factor Analysis in Assessing Customer Satisfaction with Service Quality: The Case of Mobile Telecommunications in Macedonia, International Bulletin of Business Administration, Issue 11 (2011), EuroJournals, Inc. 2011, http://www.eurojournals.com

66 the customers was not satisfactory, that expectations were higher than perceptions. Customers were not satisfied with service quality in all 5 dimensions studied. Factor analysis revealed reliability to be as the most important factor for customer satisfaction with service quality. Reliability and responsiveness were shown to be as the most important factors for customers‘ satisfaction with service quality, followed by assurance as a second factor, then empathy as a third factor component, and the tangible dimension as the last fourth factor. Reliability and responsiveness both combine the first underlying factor extracted from rotation

(extraction sorts components according to their contribution to the variance), that holds 40.29% of Total Variances of 59. 29%, combined with other two responsiveness items.

Parisa Islam Khan, et al., (2011)84 their study aims at measuring the service quality and customer satisfaction level of high-end women‘s parlors in

Dhaka. Other purposes of this study are to assess the importance of different attributes of customer‘s preference, evaluate the service quality level and the extent of customer satisfaction and reveal the final factors that create customer satisfaction. This study includes in-depth interviews of beauticians and executives and questionnaire survey of 260 customers of high-end beauty parlors of Dhaka city. The findings show that customers put utmost importance in issues such as the service provider‘s behavior, knowledge, environment, counseling system and affordability of the parlors. The customers of the high-end parlors are highly satisfied with the environment, executive‘s politeness, com-plaint handling system, trustworthiness and materials. The politeness of the service providers, knowledge level of the executives and safety and hygiene issues are

84 Parisa Islam Khan And Ayesha Tabassum, ―Service Quality And Customer Satisfaction Of The Beauty-Care Service Industry In Dhaka: A Study On High-End Women‘s Parlors‖, Journal Of Business In Developing Nation, Vol. 12, 2011, Pp.33-58.

67 also satisfactory. Factor analysis (Principal Component Analysis) has been carried out by taking sixteen variables and the result indicates that four service quality factors are creating customer satisfaction. These factors are Support &

Facility Factor, Employee Performance Factor, Customer Relation Factor and

Communication Factor.

Kumar, et al., (2012)85 examined the dimensions and their levels of service quality that have significant effect on customer satisfaction in organized retailing. The results illustrated that the dimensions of service quality such as tangible, reliability, responsiveness, competence, credibility, accessibility, and customer knowledge were positively correlated to customer satisfaction in organized retailing. However, by using Statistic software SPSS 17.0 Version only four factors, namely, reliability, customer knowledge, credibility and tangible have significant effect on customer satisfaction that indicated to improve customer satisfaction. Therefore, the management of organized retailing is supposed to focus on reliability, customer knowledge, credibility and tangible to ahead of its competitors. Ultimately customers would remain loyal to an organization and this brings continued profitability and success in business in future.

86 Rahman, et al., (2012) the main purpose of their study is to identify some key drivers of customer satisfaction on restaurant services. The study covers the opinion of restaurant goers in Khulna region. This research is based on empirical study. Primarily, researchers contacted with 450 customers for their

85 Kumar R and Barani G, ―Appraisal Relationship between Service Quality and Customer Satisfaction in Organized Retailing at Bangalore City, India‖, Industrial Engineering Letters, Vol 2, No.2, pp. 61-70, 2012 86 Md. Arifur Rahman, Abul Kalam and Md. Moshiur Rahman, ―The Influence of Service Quality and Price on Customer Satisfaction: An Empirical Study on Restaurant Services in Khulna Division‖, Industrial Engineering Letters, Vol 2, No.2, pp. 25-33, 2012

68 valuable opinion regarding restaurant services. But, 246 customers gave their spontaneous response in this regard. Chi-square test has been applied for testing hypothesizes by using SPSS software. This study aims to link some factors of service quality and price fairness of restaurant with the customers‘ satisfaction.

The researchers find out that customers of restaurant have negative impression about product and service quality fairness, price fairness, staff‘s service, environment of the restaurant, image of the restaurant and loyalty of the restaurant. The researchers suggest emphasizing on those critical issues to attract new customers and retain existing customers.

Maryam Norouzi, et al., (2012)87 in their study, relationship between quality support services (as provider of quality services) with the units involved in production processes (customer service unit) is studied. This study has tried to measure customer satisfaction with a clear framework. Quality tools and systems improvement unit is a subset of IRAN KHODRO quality planning management that present services to different units (car production, press, Total production system, automotive engineering, Thunder (l90), marketing and sales, new product development, process engineering production , power train deputy) in IKCO for doing quality improvement projects . Based on dignify to customer, this unit want to measure customer satisfaction to recognition improvement opportunity and is going to improve customer satisfaction and process.

Norshahniza Sahari, et al., (2012)88 determined the principal drivers of customer satisfaction in the aspect of meal or food dimension (i.e. food quality,

87 Maryam Norouzi1 and Mir Mehdi Seid Esfehani, ―Determination of Customer Satisfaction Index and Measuring IRAN KHODRO Inner Customers Satisfaction‖, American Journal Of Advanced Scientific Research , Vol. 1, Issue. 5, pp. 245-256, 2012 88 Norshahniza Sahari, Nora Mohd Basir And Rohani Jangga, ―Factors Of Food Dimension Affecting Customer Satisfaction In Family Restaurants‖, 3rd International Conference On

69 food pricing, food portioning, and food presentation) in family restaurants in

Malaysia. Moreover, the study investigates the relationship between factors of food dimension and customer satisfaction in family restaurants. A total of 460 dine-in customers were randomly selected from 40 outlets of family restaurant chains in Malaysia and submitted feedback forms. The findings indicate that customer satisfaction is influenced most by the quality of food, followed by the presentation of food, meal portion and food pricing (in that order). Furthermore, results show that all factors of food dimension have a significant impact on family restaurants in Malaysia. Thus, this study provides potential ways for restaurateurs to increase customer satisfaction and loyalty by improving their understanding of the factors of food dimension that influence customer satisfaction.

Simon Gyasi Nimako (2012)89 examined the extent to which service quality affects customer satisfaction and behaviour intention in mobile telecommunication industry. The study involved a cross-sectional survey of 1000 respondents using structured questionnaire personally administered. A usable 937 questionnaire were retrieved and analysed using Structural Equation Modelling

(SEM) method. The findings indicate that Tangibles, Customer Relations, Real

Network Quality and Image quality aspects of service quality positively affect customer satisfaction, which in turn affects behaviour intention in Ghana‘s mobile telecom industry. Theoretically, it found a strong relationship between service quality, satisfaction and behaviour intention and that service quality and satisfaction may be viewed as two separate constructs. Managers could influence

Business Andeconomic Research(3rd ICBER 2012) Proceeding, :Www.Internationalconference.Com. 89 Simon Gyasi Nimako, ―Linking Quality, Satisfaction and Behaviour Intentions in Ghana‘s Mobile Telecommunication Industry‖, European Journal of Business and Management, Vol 4, No.7, pp. 1-9, 2012

70 behaviour intentions and satisfaction through the four critical aspects of SQ unique to the mobile telephony industry.

Seyed Mostafa Razavi (2012)90 investigated the relationships service quality, customer perceived value and customer satisfaction in six large software companies of Iran. To this end, after reviewing the related literature, the effective factors in the service quality, customer perceived value and customer satisfaction were identified. Then, questionnaires were distributed among the customers of the companies. Next, Factor Analysis and Structural Equation Modelling were used to find the relationships; as a result, the proposed model was extracted.

According to findings, there are significant and positive relationships between service quality and customer perceived value, service quality and customer satisfaction and customer perceived value and customer satisfaction in these companies. Furthermore, service quality can predict customer satisfaction more than what customer perceived value does.

Md. Arifur Rahman, et al., (2012)91 identified some key drivers of customer satisfaction on restaurant services. The study covers the opinion of restaurant goers in Khulna region. This research is based on empirical study.

Primarily, researchers contacted with 450 customers for their valuable opinion regarding restaurant services. But, 246 customers gave their spontaneous response in this regard. Chi-square test has been applied for testing hypothesizes by using SPSS software. This study aims to link some factors of service quality and price fairness of restaurant with the customers‘ satisfaction. The researchers

90 Seyed Mostafa Razavi and Hossein Safari, ―Relationships among Service Quality, Customer Satisfaction and Customer Perceived Value: Evidence from Iran's Software Industry‖, Journal of Management and Strategy, Vol. 3, No. 3; June 2012, pp.28-37 91 Md. Arifur Rahman, Abul Kalam, and Md. Moshiur Rahman, ―The Influence of Service Quality and Price on Customer Satisfaction: An Empirical Study on Restaurant Services in Khulna Division‖, Industrial Engineering Letters, Vol 2, No.2, 2012, pp.25-33

71 find out that customers of restaurant have negative impression about product and service quality fairness, price fairness, staff‘s service, environment of the restaurant, image of the restaurant and loyalty of the restaurant. The researchers suggest emphasizing on those critical issues to attract new customers and retain existing customers.

Kumar R, et al., (2012)92 examined the dimensions and their levels of service quality that have significant effect on customer satisfaction in organized retailing. The results illustrated that the dimensions of service quality such as tangible, reliability, responsiveness, competence, credibility, accessibility, and customer knowledge were positively correlated to customer satisfaction in organized retailing. However, by using Statistic software SPSS 17.0 Version only four factors, namely, reliability, customer knowledge, credibility and tangible have significant effect on customer satisfaction that indicated to improve customer satisfaction. Therefore, the management of organized retailing is supposed to focus on reliability, customer knowledge, credibility and tangible to ahead of its competitors. Ultimately customers would remain loyal to an organization and this brings continued profitability and success in business in future.

Paschal Wanzalla Soita (2012)93 pointed out that many service providers have emerged on the Ugandan market offering health and fitness services, this study therefore sought club customers‘ perception about service delivery in the sector. With a modified 26-item SERVQUAL questionnaire, data were collected from a random sample of 486 customers and 116 interviewees covering 58

92 Kumar R and Barani G, ―Appraisal Relationship between Service Quality and Customer Satisfaction in Organized Retailing at Bangalore City, India‖, Industrial Engineering Letters, Vol 2, No.2, 2012, pp.61-70. 93 Paschal Wanzalla Soita, ―Customers‘ Perception about Service Quality in Commercial Health and Fitness Clubs in Uganda‖, Journal of Education and Practice, Vol 3, No 4, pp. 53-63, 2012.

72 purposively selected health-and-fitness centers countrywide. Customers to gymnasia, aerobics clubs and aqua-based activities where vulnerability is high were considered. Major findings were that gaps exist in service delivery (Overall service perception μ= -1.73) and that the current management model in most clubs falls far short of international standards. A single authority for standardization is lacking for professional certification and regulation. It is recommended that sport-specific Government of Uganda authorities must act promptly in a joint effort with federations, academia, and the leading international certifying organizations to directly oversee and/or set standards of practice to meet the required quality levels and fitness industry needs.

Gupta, et al. (2012)94 studied the perception of customers regarding services provided by Banks and Post-Offices. The research study has been carried out in the four cities of NCR i.e. Delhi, Noida, Gurgaon and Faridabad. The researcher has used Factor analysis to analyze the data. The results of the study conclude that Post- offices should pay attention on certain dimensions to attract and retain more customers.

M. Kailash (2012)95 analyzed the performance among two categories of banks – public and private sector banks (only domestic) in Vijayawada city- using the list of service attributes based on different service dimensions such as tangibles, reliability, responsiveness, assurance and empathy during December

2011. The simple random sampling technique is adopted and 175 respondents,

111 customers of Public Sector Banks and 64 customers of Private Sector Banks

94 Dr. M. K. Gupta And NidhI Gupta, ― A Study Of Customer Satisfaction In Special Reference To Services Provided By Banks And Post-Offices In N.C.R‖, International Journal Of Multidisciplinary Research Vol.2 Issue 2, Pp. 222-238, February 2012, 95 M.Kailash A Study On Customer Satisfaction With Service Quality In Indian Public And Private Sector Banks: Golden Research Thoughts (March ; 2012) Vol.1,Issue.Ix/March 2012pp.1- 4.

73 constitute the sample for the survey. The findings show that Private sector banks performed significantly by satisfying its customers with good services and they have been successful in retaining its customers by providing better facilities than

Public sector banks. The research points that new financial products and services have to be continuously introduced in order to stay competent and that Public sector banks have to build long term strategic relationships with its customers.

Fang-Pei Nieh (2013)96 discussed the effect of service quality on customer satisfaction in catering. The research objectives include: 1) understanding the present situation of service quality and customer satisfaction in catering; 2) discussing the effects of different demographic variables on service quality and customer satisfaction; and 3) exploring the correlations between service quality and customer satisfaction in catering. The questionnaire was applied as the research tool; and Taiwan Tea Cuisine was the research object.

Total 500 questionnaires were distributed, 357 copies were retrieved. Deducting

39 invalid ones, 318 questionnaires were valid with the retrieval rate 63.6%. The research findings show that service quality presents significantly positive correlations with product price, service efficiency, and perceived value; correlations between service quality and customer satisfaction have differences in some demographic variables.

Kaura, Vinita (2013)97 examined the effect of service quality, perceived price and fairness and service convenience on customer satisfaction. It also aims to compare multiple regression models between public and new private sector banks. A cross-sectional research on 445 retail banking customers through a

96 Fang-Pei Nieh, ―The Effect Of Service Quality On Customer Satisfaction In Catering Industry‖, Actual Problems Of Economics, Feb2012, Vol. 128 Issue 2, pp. 4-21 97 Kaura, Vinita (2013) ―Antecedents of customer satisfaction: a study of Indian public and private sector banks‖ The International Journal of Bank Marketing, Volume 31, Number 3, 2013 , pp. 167-186(20)

74 questionnaire is conducted. The population of the study consists of valued retail urban customers of banks in Rajasthan, India, who frequently visit bank premises for transactions, have accounts in at least two banks and have availed of at least one information technology based services. Responses are analysed using regression analyses. Dimensions of service quality are employee behavior, tangibility and information technology. Dimensions of service convenience are decision convenience, access convenience, transaction convenience, benefit convenience and post-benefit convenience. For public sector banks, except tangibility, all antecedents have positive impact on customer satisfaction. For private sector banks except tangibility and benefit convenience all antecedents have positive impact on customer satisfaction. Significant difference in beta coefficient is found between public and private sector banks regarding employee behavior, decision convenience, access convenience and post-benefit convenience.

Sheeba, et al., (2013)98 identified various factors of service quality of

Indian Railways in the train. The study is exploratory in nature and used factor analysis to identify the most and least important factors of customer satisfaction on service quality. The research methodology is empirical, and a survey of passengers (customers) was conducted. This study considered seven factors and

16 variables to analyze the passenger satisfaction. The study analyzed reliability

Coefficient, Eigen Value and components Correlation Matrix etc. The findings of this study reveals that the most important factors determining satisfaction of passengers in train are serially comes as basic facilities, hygiene, safety and security, catering , health care service, punctuality, behavior towards passengers.

98 Sheeba. A. A and Dr. K. Kumuthadevi, ―Service Quality of South Indian Railway- Determinants of Passenger Satisfaction in Trains‖, International Journal of Business and Management Invention, Volume 2, Issue,2, PP.49-54, 2013,

75 The literature review attempted above is not exhaustive though substantial. The review reveals that while several studies are available on the service quality and customer satisfaction, there is hardly any noteworthy work relating to passenger satisfaction in Indian Railway. The present study ―A Study of

Passengers Satisfaction with Special Reference to Tiruchirappalli Division of Southern

Railway‖ attempts to fill the research gap. The findings of this study not only throw light on service quality, it also helps scholars and researchers to develop new strategies for the development of Indian Railway.

76 CHAPTER – III

GROWTH AND DEVELOPMENT OF RAILWAYS IN INDIA

3.1 INTRODUCTION

The history of rail transport in India began in the mid-nineteenth century.

In 1842, there was not a single kilometer of railway line in India. By 1929, there were 66,000 km (41,000 mi) of railway lines serving most of the districts in the country. At that point of time, the railways represented a capital value of some

British Sterling Pounds 687 million, and carried over 620 million passengers and approximately 90 million tons of goods a year. The railways in India were a group of privately owned companies. The military engineers of the East India

Company, later of the British Indian Army, contributed to the birth and growth of the railways which gradually became the responsibility of civilian technocrats and engineers. However, construction and operation of rail transportation in the

North West Frontier Province and in foreign nations during war or for military purposes was the responsibility of the military engineers.

3.2 THE LINKING OF THE INDIAN RAILWAYS

In 1845, along with Sir Jamsetjee Jejeebhoy, Hon.Jaganath Shunkerseth

(known as Nana Shankarsheth) formed the Indian Railway Association.

Eventually, the association was incorporated into the Great Indian Peninsula

Railway, and Jeejeebhoy and Shankarsheth became the only two Indians among the ten directors of the GIP railways. As a director, Shankarsheth participated in the very first train journey in India between Bombay and Thane on the 16th of

April, 1853 in a 14 carriage long train drawn by 3 locomotives named Sultan,

Sindh and Sahib. It was around 21 miles in length and took approximately 45 minutes.

77 A British engineer, Robert Maitland Brereton, was responsible for the expansion of the railways from 1857 onwards. The Calcutta-Allahabad-Delhi line was completed by 1864. The Allahabad-Jabalpur branch line of the East Indian

Railway opened in June 1867. Brereton was responsible for linking this with the

Great Indian Peninsula Railway, resulting in a combined network of 6,400 km

(4,000 mi).

Hence it became possible to travel directly from Bombay to Calcutta via

Allahabad. This route was officially opened on 7th March 1870 and it was part of the inspiration for French writer Jules Verne‘s book Around the World in Eighty

Days. At the opening ceremony, the Viceroy Lord Mayo concluded that ―it was thought desirable that, if possible, at the earliest possible moment, the whole country should be covered with a network of lines in a uniform system‖.

By 1875, about £95 million were invested by British companies in Indian guaranteed railways. By 1880 the network route was about 14,500 km (9,000 mi), mostly radiating inward from the three major port cities of Bombay, Madras and Calcutta. By 1895, India had started building its own locomotives and in

1896 sent engineers and locomotives to help build the Uganda Railways. In

1900, the GIPR became a government owned company. The network spread to the modern day states of Assam, Rajasthan and Andhra Pradesh and soon various independent kingdoms began to have their own rail systems.

In 1901, an early Railway Board was constituted, but the powers were formally invested under Lord Curzon. It served under the Department of

Commerce and Industry and had a government railway official serving as chairman, and a railway manager from England and an agent of one of the

78 company railways as the other two members. For the first time in its history, the

Railways began to make a profit.

In 1907, almost all the rail companies were taken over by the government.

The following year, the first electric locomotive made its appearance. With the arrival of World War I, the railways were used to meet the needs of the British outside India. With the end of the war, the railways were in a state of disrepair and collapse. In 1920, with the network having expanded to 61,220 km, a need for central management was mooted by Sir William Acworth. Based on the East

India Railway Committee chaired by Acworth, the government took over the management of the Railways and detached the finances of the Railways from other governmental revenues.

The period between 1920 and 1929 was a period of economic boom.

Following the Greet Depression, the company suffered economically for the next eight years. The Second World War severely crippled the railways. Trains were diverted to the Middle East, railway workshops were converted to ammunitions workshops and some tracks (such as Churchgate to Colaba in Bombay) were dismantled for use in war in other countries. By 1946 all rail systems had been taken over by the government.

3.3 START OF INDIAN RAILWAYS

Chhatrapati Shivaji Terminus, Mumbai is the busiest railway station in

India. It is also a World Heritage Site. Following independence in 1947, India inherited a decrepit rail network. About 40 per cent of the railway lines were in the newly created Pakistan. Many lines had to be rerouted through Indian territory and new lines had to be constructed to connect important cities such as

Jammu. A total of 42 separate railway systems, including 32 lines owned by the

79 former Indian princely states existed at the time of independence spanning a total of 55,000 km. These were amalgamated into the Indian Railways.

In 1952, it was decided to replace the existing rail networks by zones. A total of six zones came into being in 1952. As India developed its economy, almost all railway production units started to be built indigenously. The Railways began to electrify its lines to AC. On 6 September 2003 six further zones were made from existing zones for administration purpose and one more zone added in

2006. The India Railway has now sixteen zones.

In 1985, steam locomotives were phased out. In 1987, computerization of reservation first was carried out in Bombay and in 1989 the train numbers were standardised to four digits. In 1995, the entire railway reservation was computerised through the railway's internet. In 1998, the Konkan Railway was opened, spanning difficult terrain through the Western Ghats. In

1984 Kolkata became the first Indian city to get a metro rail system , followed by the Delhi Metro in 2002 and Bangalore's Namma Metro in 2011. Many other

Indian cities are currently planning urban rapid transit systems.

3.4 PERFORMANCE OF INDIAN RAILWAYS

In its endeavour to become an excellent rail transport network of the world, the Indian Railways during the year 2011-12 has helped launch itself towards a path of gigantic growth and development, keeping in view the future transportation needs of the economy like construction of 727 kilometres of new line, gauge conversion of 856 kilometres and doubling of 752 kilometres of

Railway line besides improving punctuality by six per cent and improving safety by seven per cent. The year 2011-12 has been significant for the Railways in achieving goals and targets.

80 3.4.1 Revenue Generation

The total approximate earnings of Indian Railways on originating basis during the financial year 2011-12 were Rs. 104278.79 registering an increase of

10.15 per cent. The total goods earnings were Rs. 69675.97 crore during financial year 2011-12, registering an increase of 10.70 per cent. The total passenger revenue earnings during fiscal 2011-12 were Rs. 28645.52 crore, registering an increase of 10.15 per cent. Indian Railways have carried 969.78 million tonnes of revenue earning freight traffic during fiscal 2011-12 registering an increase of 5.24 per cent.

3.4.2 Fresh Measures to Prevent Misuse of Train Tickets

In a move to prevent misuse of Reserved Train Tickets and reduce cases of travelling on transferred tickets, the Ministry of Railways decided that anyone of the passengers undertaking journey in AC-3 tier, AC-2 tier, 1st AC, AC Chair

Car and Executive Classes were to carry one of the nine prescribed proofs of identity (in original) during the journey. Meanwhile, Agents /Rail Travel Service

Agencies (RTSAs) have been disallowed booking Tatkal tickets at the counters between 08.00 hrs and 10.00 hrs. On the opening day of Tatkal Advance

Reservation Facility for booking with train starting date. Moreover, Tatkal tickets booking are being booked only on production of self attested photocopy of one of the nine prescribed Identity cards as proof of identity.

3.4.3 SMS at Par with Ticket & Reservation Through Mobile Phone

In a move to further make Train Reservation Ticketing System passenger friendly, the Ministry of Railways has decided to permit Short Messaging Service

(SMS) sent by its PSU, Indian Railways Catering & Tourism Corporation

(IRCTC) containing vital details as an instrument on par with the Electronic

81 Reservation Slip (ERS). This has come into effect from 1st February, 2012. The

SMS would contain all the vital ticket details like PNR, Train Number, Date of

Journey, Class, Name & Number of Passengers, Coach & Seat Number and Fare paid. Also if feasible, the SMS will accommodate the names of all passengers booked on the e-ticket, otherwise maximum number of passengers.

For the convenience of the rail users, Indian Railways through Indian

Railway Catering & Tourism Corporation (IRCTC), a Public Sector Undertaking under the Ministry of Railway, has started the service of booking e-ticket over the mobile phone. After initial registration and downloading of suitable software on the mobile handset with internet facility, it is quite easy for the mobile users to book a reserved ticket through their own mobile.

3.4.4 Real Train Information System Opened to Public

In a major passenger friendly move, Indian Railways opened the first phase of the Real Train Information System (RTIS) in October 2011 to public for accurate train tracking thus heralding a new era of application of advanced communication and information technologies in various Railway related activities. This new tracking system is based on Satellite Imaging for Rail

Navigation (SIMRAN) and has been developed jointly by the Ministry of

Railways‘ Research arm namely Research, Design and Standards Organization

(RDSO), Lucknow and IIT, Kanpur. This information is available on website

―http://www.simran.in‖. To begin with, at present, this service is available for six pairs of Rajdhani & Shatabdi trains and would be expanded further in due course of time.

82 3.4.5 Adarsh Station Scheme

A total of 929 stations have been identified during 2009-10 to 2012-13 for development under ‗Adarsh‘ station scheme. A total of 550 stations have been developed under ‗Adarsh‘ station scheme so far. Out of the remaining 370 stations, 295 stations are targeted for completion in 2012-13 and the remaining 84 stations, which were identified for development under this scheme during

Railway Budget, are planned for completion in the next financial year. Adarsh

Stations are provided with basic facilities such as drinking water, adequate toilets, catering services, waiting rooms and dormitories especially for lady passengers, better signage etc.

3.4.6 Developments on Dedicated Freight Corridor Project

The Dedicated Freight Corridor project will connect a land mass over

3300 kilometers in the country and could prove to be a backbone of India‘s economic transport facility. The Western corridor from Dadri in Uttar Pradesh to

Jawaharlal Nehru Port Trust near Mumbai will be 1499 kilometers. The Eastern

Dedicated Freight Corridor from Ludhiana to Dankuni will be 1839 kilometer long. The nodal authority Dedicated Freight Corridor Corporation India Limited

(DFCCIL) is overseeing progress of work with the target project completion rate of March 2017. Presently, 67 per cent of the land acquisition has been completed and as of now the project by and large is on target. Funding has been tied up with the World Bank for 1183 km section of Eastern DFC from Khurja to Mughalsarai for US$ 2.72 billion in May 2011 and Loan Agreement for US$ 975 million for the first sector viz Kanpur-Khurja, (343 km) has been signed in October 2011.

83 Construction work of 54 major and important bridges in Vaiterna-

Bharuch section of Western DFC is in progress and five major bridges have been completed.

3.4.7 Development of Multifunctional Complex

A new concept of development of Multi Functional Complexes (MFCs) with Budget Hotels, was introduced in Rail Budget 2009-10 so that important facilities may be available to the rail users in a separate complex in the vicinity of circulating area in station premises. So far, a total of 198 stations have been identified since 2009-10 (67 in 2009-10, 93 in 2010-11 and 38 in 2011-12). Task of development of 198 MFCs has been assigned to Zonal Railways and various executing agencies under the Ministry of Railways. Construction of MFCs has been completed at 24 stations. The progress of MFCs has been affected as long- term leasing of land now requires Cabinet‘s approval. A Cabinet note, in this regard, is under process.

3.4.8 New Train on Longest Ever Route Flagged Off

―Vivek Express‖ on longest ever route from Dibrugarh to Kanyakumari covering a distance of 4286 kilometers was flagged off on 19th November, 2011.

This weekly trains leaves Dibrugarh on every Saturday and reaches Kanyakumari on Wednesday. In return direction, it will leave Kanniyakumari on every

Saturday at 14.00 hrs reaching Dibrugarh on Wednesday. It will run via

Goalpara, New Bongaigaon, Alipurduar, Maldah Town, Durgapur, Asansol,

Adra, Midnapur, Vijaywada, Jolapettai, Salem, Coimbatore, Ernakulam,

Thiruvanantapuram and Kanyakumari.

84 3.4.9 Country’s First Ever AC Double Decker Train Flagged Off

Country‘s first air conditioned superfast Double Decker train was flagged off from Howrah station for Dhanbad on 1st October 2011. This train will consist of 9 coaches including 7 air-conditioned Double Decker chair cars having

128 seats in each coach and 2 generator cars. This train will stop at Barddhaman,

Durgapur, Asansol, Barakar and Kumardhubi on both ways en-route. This train will have maximum permissible speed of 110 kilometre per hour

3.4.10 Longest Tunnel Made Through Pir Panjal in Jammu & Kashmir

Indian Railways achieved another milestone with final breakthrough of

Pir Panjal Railway tunnel in Jammu and Kashmir on 14th October 2011. This

Tunnel with a length of 11.176 Kilometers is not only the longest Transportation

Tunnel in the country but has also the highest point (1753 Meters above sea level) on Broad Gauge Railway System in the country.

3.4.11 Strengthening of Security at Railway Stations

Indian Railways are implementing Integrated Security System at 202 important and sensitive stations of the country in first phase. The system will likely become functional at all 202 stations during the current financial year.

This system provides for multiple screening/checking of passengers right from the point of entry. The ‗Integrated Security System‘, comprising of latest machines and software, will supplement conventional methods of security which are also being strengthened. There will be dedicated control rooms at strategic locations for round the clock monitoring through the Close Circuit TV (CCTV) based surveillance system.

85 3.4.12 Setting up of Railway Stations Development Corporation Ltd

Proposed

It has been decided to set up a Special Purpose Vehicle (SPV) ―Railway

Stations Development Corporation Ltd to meet the aspirations of rail users and to provide better passenger amenities and facilities at railway stations. This SPV will be constituted with equity participation of IRCON International Ltd.

(IRCON), a Public Sector Undertaking under the Ministry of Railways and Rail

Land Development Authority (RLDA), a statutory authority under the Ministry of

Railways.

3.4.13 Railways Electrification

Electrification of Railway routes has yielded good results. During 2011-

12, the target of 1110 route kilometres plus 220 track kilometres has been achieved. Railways have fixed an even higher target of 1500 route kilometres for the current year. By the end of XI Five Year Plan, the percentage of electrified network on Indian Railways is likely to go up to 34.61 per cent. As on

01.04.2011, 21304 Route Kilometers (RKM) have been electrified. This constitutes 32.88 per cent of Indian Railways network, hauling about 2/3rd freight and nearly half of passenger traffic.

3.4.14 Green Initiatives

In a significant move towards clean environment in platforms and railway tracks, Indian Railways has inducted biotoilets (green toilets) on certain trains.

This type of toilets has been designed jointly by Indian Railways and DRDO.

These biotoilets are well suited to unique requirement of Indian Railways passenger coaches. Eight trains are presentably running with approximately 500

86 biotoilets and the results are very encouraging. It is now planned that 2500 biotoilets will be inducted in the next year.

3.4.15 More Concession For Senior Citizens

The Ministry of Railways has decided to reduce the minimum age for availing concession from 60 years to 58 years in case for women senior citizens.

It has also been decided to increase the element of concession in case of men senior citizens from 30 per cent to 40 per cent with effect 1st June 2011.

Meanwhile, it has also been decided to grant concession in train fares to patients suffering‘ from Sickle Cell Anaemia/Aplastic Anaemia, when travelling for treatment/periodical check-up to the Government recognized hospitals, and return after treatment/periodical check-up. The element of concession is 50 per cent in the basic fares of Sleeper, AC Chair Car, AC 3-tier and AC 2-tier classes.

3.4.16 MoUs with State Governments

The Ministry of Railways and State Government of Chhatisgarh signed an

MoU on Development of Rail Corridors in Chhattisgarh. The Ministry of

Railways and Government of Jharkhand State signed an MoU on ongoing

Railway Projects in Jharkhand.

3.4.17 Indian Railway Finance Corporation Limited Offers Tax Free Bonds

Indian Railway Finance Corporation Limited (IRFC), the financing arm of Indian Railways, issued Tax Free, Secured, Redeemable, Non-Convertible

Bonds of face value of Rs. 1,000 each in the nature of Debentures, having benefits under Section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended

(‗Bonds‘) aggregating to Rs. 3,000 crore with an option to retain oversubscription of upto the shelf limit of` Rs. 6,300 crore (‗Issue‘).

87 3.4.18 Railways Extend Advance Reservation Period to 120 Days

The Ministry of Railways increased the advance reservation period for booking reserved train tickets from 90 days to 120 days on experimental basis

(excluding the date of journey) with effect from March 10, 2012.

Arrangements to Clear Extra Rush of Traffic for the Summer, April to June 2012

Indian Railways have made elaborate arrangements to clear extra rush of traffic for the ensuing summer season from April 2012 to June 2012. More than 5600 trips of special trains have been planned to handle the rush during the ensuing summer period. These special trains have been planned over approximately 44 different popular routes to clear extra rush of traffic.

3.4.19 High Level Committees

Safety in train operations is accorded the highest priority by Indian

Railways and all measures are being taken on a continual basis to prevent accidents and enhance safety. A High Level Safety Review Committee, headed by Dr. Anil Kakodkar, Former Chairman of Atomic Energy Commission submitted its report suggesting a significant road map on safety related issues. In addition, to give further impetus to Railways‘ modernization plans, an Expert

Group constituted under the Chairmanship of Mr. Sam Pitroda also submitted its report recommending ways and means to modernize Indian Railways.

3.4.20 India and Bangladesh Constitute Joint Group

The Governments of India and Bangladesh constituted an Empowered

Joint Group to suggest measures to ease travel by Maitree Express, the direct passenger carrying train between Dhaka-Kolkata-Dhaka, introduced in April,

2008. Both sides agreed that Maitree Express is a symbol of people to people connectivity and the deep abiding friendship between the two countries. To make

88 this bi-weekly train more popular, the Empowered Joint Group decided that they

would formulate certain short term, medium term and long term measures to ease

the travel by this train.

3.5 PASSENGER BUSINESS

Indian Railways is a commonly used mode of public transportation in the

country. During 2011-12, it carried 8,224 million passengers as against 7,651

million in 2010-11 thus registering a volume growth of 7.49%. Passenger

kilometres, which is calculated by multiplying the number of journeys by mean

kilometric distance was 1047 billion, up by 6.95% from 979 billion in the

previous year. Passenger earnings also increased by ` 2,453.80 crore (9.51%) in

comparison with 2010-11. The trend of passenger traffic since 1950-51 is shown

below:

TABLE 3.1

NUMBER OF PASSENGERS ORIGINATING

(in millions) Non-suburban Suburban Total Second Class Grand Year (all Non- Upper Mail/ Total classes) Ordinary Total suburban class Exp. 1950-51 412 25 52 795 847 872 1,284 1960-61 680 15 96 803 899 914 1,594 1970-71 1,219 16 155 1,041 1,196 1,212 2,431 1980-81 2,000 11 260 1,342 1,602 1,613 3,613 1990-91 2,259 19 357 1,223 1,580 1,599 3,858 2000-01 2,861 40 472 1,460 1,932 1,972 4,833 2008-09 3,802 76 895 2,147 3,042 3,118 6,920 2009-10 3,876 86 983 2,301 3,284 3,370 7,246 2010-11 4,061 100 1,046 2,444 3,490 3,590 7,651 2011-12 4,377 112 1,188 2,547 3,735 3,847 8,224 Source: Indian Railway Year Book 2011-12

It is observed from the table that during 2011-12, the number of

passengers carried was 8, 224 million compared to 1,284 million in 1950-51

thus registering an increase of 640.50 per cent.

89 3.6 PASSENGER KILOMETRES

A passenger kilometers refer to a passenger transported over one

kilometer, which is shown in table 3.2.

TABLE 3.2

PASSENGER KILOMETRES

(in millions) Non-suburban Suburban Total Second Class Grand Year (all Non- Upper Mail/ Total classes) Ordinary Total suburban class Exp. 1950-51 6,551 3,790, 12,537 43,639 56,176 59,966 66,517 1960-61 11,770 3,454 22,251 40,190 62,441 65,895 77,665 1970-71 22,984 4,394 37,856 52,886 90,742 95,136 118,120 1980-81 41,086 5,140 86,712 75,620 162,332 167,472 208,558 1990-91 59,578 8,712 138,054 89,300 227,354 236,066 295,644 2000-01 88,872 26,315 222,568 119,267 341,835 368,150 457,022 2008-09 124,836 49,468 419,649 244,079 663,728 713,196 838,032 2009-10 130,917 55,182 463,321 254,045 717,366 772,548 903,465 2010-11 137,127 62.203 500,631 278,547 779,178 841,381 978,508 2011-12 144,057 72,148 548,861 281,456 830,317 902,465 1,046,522 Source: Indian Railway Year Book 2011-12

Table 3.2 shows the passenger kms. which is the product of the number of

passengers carried and average distance traversed was 66,517 million in 1950-51,

up by 1573.32 per cent in 2011-12.

90 3.7 AVERAGE LEAD

The lead refers to average haul of a passenger, which is given in table 3.3.

TABLE 3.3

AVERAGE LEAD

(in kms.) Non-suburban Suburban Total Second Class Grand Year (all Non- Upper Mail/ Total classes) Ordinary Total suburban Class Exp. 1950-51 15.9 151.6 241.1 54.9 66.3 68.8 51.8 1960-61 17.3 203.3 232.4 50.0 69.50 72.1 48.7 1970-71 18.9 274.6 244.2 50.8 75.9 78.5 48.6 1980-81 20.5 484.0 333.3 56.4 101.3 103.9 57.7 1990-91 26.4 462.8 386.5 73.0 143.9 147.6 76.6 2000-01 31.1 659.3 471.3 81.7 176.9 186.7 94.6 2008-09 32.8 647.3 469.2 113.7 218.2 228.7 121.1 2009-10 33.8 639.0 471.3 110.4 218.4 229.2 124.7 2010-11 33.8 623.1 478.5 114.0 223.2 234.4 127.9 2011-12 32.9 641.6 462.3 110.5 222.3 234.6 127.2 Source: Indian Railway Year Book 2011-12

Table 3.3 exhibits the average haul of a passenger, which is increased from 51.8 kilometers in 1950-51 to 127.9 kilometers in 2011-12, the increase being approximately 245.56 kilometers during the period.

91 3.8 PROPORTION TO TOTAL TRAFFIC-NO. OF PASSENGERS

The proportion to total traffic in terms of number of passengers is shown in table 3.4.

TABLE 3.4

PROPORTION TO TOTAL TRAFFIC-NO. OF PASSENGERS

(PERCENTAGE)

Non-Suburban 1960-61 1970-71 1980-81 1990-91 2000-01 2010-11 2011-12 Second Class 50.38 42.82 37.14 31.70 30.20 31.95 30.97 Ordinary Second Class 6.02 6.38 7.20 9.26 9.77 13.67 14.44 Mail/Express Upper Class 0.94 0.66 0.30 0.49 0.83 1.30 1.36 Total 57.34 49.86 44.64 41.45 40.80 46.92 46.77 Suburban (all 42.66 50.14 55.36 58.55 59.20 53.08 53.23 classes) Grand Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Source: Indian Railway Year Book 2011-12

It is observed from the table 3.4 that the proportion to total traffic of non- suburban in terms of number of passengers was declined from 57.34 per cent in

1960-61 to 46.77 per cent in 2011-12 whereas proportion to total traffic of suburban was increased from 42.66 per cent in 1960-61 to 53.23 per cent in

2011-12.

92 3.9 PROPORTION TO TOTAL TRAFFIC – PASSENGER KMS.

The proportion to total traffic in terms of passenger kilometers is given in table 3.5.

TABLE 3.5

PROPORTION TO TOTAL TRAFFIC – PASSENGER KMS.

(PERCENTAGE)

Non- 1960-61 1970-71 1980-81 1990-91 2000-01 2010-11 2011-12 Suburban Second 51.75 44.77 36.26 30.20 26.10 28.47 26.89 Class Ordinary Second 28.65 32.05 41.58 46.70 48.70 51.16 52.45 Class Mail/Express Upper Class 4.45 3.72 2.46 2.95 5.75 6.36 6.89 Total 84.85 80.54 80.30 79.85 80.55 85.99 86.23 Suburban 15.15 19.46 19.70 20.15 19.45 14.01 13.77 (all classes) Grand Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Source: Indian Railway Year Book 2011-12

It is observed from the table 3.5 that the proportion to total traffic in terms of passengers kilometers percentage of non-suburban was increased 84.85 per cent in 1960-61 to 86.23 per cent in 2011-12. Similarly proportion to total traffic of suburban was increased from 15.15 in 1960-61 to 13.77 per cent in 2011-12.

93 3.10 NUMBER OF PASSENGER TRAINS RUN DAILY

The number of passenger trains run daily during 2010-11 to 2011-12 is shown in table 3.6.

TABLE 3.6

NUMBER OF PASSENGER TRAINS RUN DAILY

Broad Gauge Metre Gauge Total Type of trains 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 EMU 4,710 4,644 0 0 4,710 4,644 Mail/Express 2,844 3,042 31 29 2,875 3,071 Ordinary passenger Trains and 3,767 4,172 335 311 4,239 4,620 Mixed Trains Total 11,321 11,858 366 340 11,824 12,335 Source: Indian Railway Year Book 2011-12

Table 3.6 indicates that broad gauge line the number of trains runs per day was 11,321 and 11858 during 2010-11 and 2011-12 respectively. Similarly in metre gauge, number of passenger trains run per day was 366 and 340 during

2010-11 and 2011-12.

Thus, it may be seen from the above tables that:

1. Over the years there has been a steady increase in passenger traffic output

in terms of number of passengers and passenger kilometres.

2. Since 1950-51, passengers originating have increased by 540 per cent and

passenger kms. by 1,473 per cent.

3. Suburban and Mail/Express traffic have shown a higher rate of growth

since 1950-51 than the overall average.

94 3.11 PASSENGER REVENUE:

Passenger earnings in 2011-12 were Rs.28,246.43 crore. This was Rs.

2,453.80 (9.51 per cent) higher than the earnings in 2010-11. Suburban traffic contributed 6.82 per cent to the total earnings. The remaining 93.18 per cent came from non-suburban passengers. Earnings from Second and Sleeper Class

Mail/Express passengers comprised 51.55 per cent of the total passenger earnings. Passenger revenue in terms of earnings per passenger km. for different classes during 2010-11 and 2011-12 were as under:

TABLE 3.7

PASSENGER REVENUE IN TERMS OF EARNINGS PER PASSENGER

KM

(In paise) Segment 2010-11 2011-12 Non-suburban: Upper class 106.51 108.83 Second Class- Mail/Express (incl. 25.75 26.53 sleeper class) Second Class-Ordinary 15.94 13.89 Average (all classes) 28.47 29.17 Suburban(all classes) 12.78 13.37 Overall average 26.27 26.99 Source: Indian Railway Year Book 2011-12

Table 3.7 shows the passenger revenue in terms of earning per passenger kilometers. It was registered the overall average of 26.27 paise and 26.99 paise during 2010-11 and 2011-12 respectively.

95 3.12 PASSENGER SERVICE IMPROVEMENTS

During the year 2011-12, IR introduced 298 trains (single), extended the run of 126 trains (single) and increased the frequency of 44 trains (single) in non- suburban segment. This include introduction of 30 MEMU & 43 DMU/ DEMU services and extension of the run of 2 MEMU and 8 DEMU services. For suburban/local passengers, 90 trains (single) were introduced and the run of 6 trains (single) extended.

3.13 TICKETLESS TRAVEL

During 2011-12, 17.33 lakh checks were conducted against ticketless/irregular travel (including carriage of unbooked luggage). About

181.77 lakh cases were detected and Rs.528.51 crore realized on this account.

3.14 PASSENGER AMENITIES

The allocation under the Plan Head ―Passenger Amenities‖ in 2011-12 was Rs.1,100.50 crore (Budget Estimate) and Rs. 762.42 crore (Revised

Estimate). During the year 2011-12, it was proposed to develop 236 more stations as Adarsh stations. With this, the total number of stations identified for development of Adarsh stations up to 2011-12 works to be 845 out of which 545 stations have been developed. During 2012-13, another 131 stations have been identified for development as Adarsh stations. During the year, 49 stations were provided with water coolers, 46 stations were electrified and passenger lifts were provided at 30 stations.

3.15 PASSENGER RESERVATION SYSTEM (PRS)

During 2011-12, 474 computerized reservation offices were opened. As on 31st March, 2012, there were 2,829 locations over IR where Passenger

Reservation System (PRS) was functional. Some of the above locations are dual

96 purpose Passenger Reservation System-cum-Unreserved Ticketing System

(PRScum-UTS). Computerized Unreserved Ticketing System (UTS)was opened at 685 locations during 2011-12 taking the tally to 5,259.

3.16 RAILWAY USER AMENITIES

Railway Users‘ Consultative Committees at different levels provide opportunities for consultation between the management and the rail users.

Divisional Railway Users‘ Consultative Committees (DRUCCs) have been re- constituted for a two years, term w.e.f. 1.10.2011 to 30.09.2013. Zonal Railway

Users‘ Consultative Committees (ZRUCCs) and Konkan Railway Users‘

Consultative Committee (KRUCC) have been reconstituted for two years term w.e.f. 1.12.2011 to 30.11.2013. Suburban Railway Users‘ Consultative

Committee and Station Consultative Committees at important stations also provide useful inputs.

3.17 CLEAN TRAIN STATION SCHEME

To bring about improvement in en-route cleaning of trains, ‗Clean Train

Station‘ scheme was launched to provide mechanized cleaning attention to passing through trains during their halts at selected stations. Out of the 30 identified Clean Train Stations, 28 have been made operational so far.

3.18 ON BOARD HOUSE KEEPING SERVICE

‗On Board House Keeping Service‘ scheme has also been launched by the

Railways to carry out frequent on board cleaning of Mail/Express reserved coaches through professional agencies. This scheme has been implemented in

335 trains so far and is planned to be extended to more trains.

97 3.19 DURONTO TRAINS

Duronto trains have heralded a new era of rail travel on Indian Railways.

These super fast trains, with fully reserved accommodation, run as end to end non stop service. A unique aesthetically appearing exterior colour scheme was developed for these trains through vinyl films wrapped on the coach exteriors. A total number of 32 such trains were introduced till the end of 2011-12.

3.20 AIR CONDITIONED DOUBLE DECKER COACHES

One rake of LHB-FIAT design has been inducted by Eastern Railway on

Howrah-Dhanbad route on 01.10.2011. Recently double decker rakes, with improved design, have been introduced between Jaipur & Delhi and Mumbai &

Ahmedabad. Two more train services between Bengaluru & Chennai and

Habibganj and Indore are also planned in the current year.

3.21 DEVELOPMENT OF CRASHWORTHY COACHES

To improve upon the standards of safety, a ‗crashworthy‘ ICF coach design in conjunction with a Centre Buffer Coupler (CBC) was evolved. A total of about 530 such coaches have been manufactured so far. LHB AC Double

Decker coaches introduced first time of IR have been provided with crashworthy features. On similar lines, principal design for a crashworthy LHB coach shell has been developed and one such coach shell has been manufactured. Crash test for design validation on this coach has been completed at RDSO.

3.22 CATERING SERVICES

A new Catering Policy 2010 has been issued on 21.07.2010 which has revised the role of agency for management of catering services on IR. IRCTC would continue to be a service provider to the IR and shall be responsible for managing the premium and high end outlets like Food Plazas, Food Courts and

98 Fast Food Units including institutional catering outside the Railways. During

2011-12, catering facilities were provided through approximately 10,652 static catering units and through pantry cars/mini pantries in 302 pairs of trains, and through train side vending in 139 trains. The total number of departmental catering units under Zonal Railways are 356 and those under IRCTC are 218. The total number of private licnesees operated catering units under Zonal Railways are 10,400 and those under IRCTC are 115 units. During the year, 94 Food

Plazas/Fast Food Units/Food Courts and 699 Automatic Vending Machines were also functional over railway stations. To provide low cost affordable food including regional cuisine and economy combo meals to general passengers, 53

Jan Ahaar outlets were also functional over IR. The sales turnover of departmental catering units during the year rose to Rs. 250.11 crore from Rs.

203.98 crore in the previous year and licence fees realized from the catering/vending contractors was Rs. 220.54 crore in 2011-12 against Rs. 213.51 crore in 2010-11.

3.23 CONTRIBUTION OF INDIAN RAILWAY TO MODERN MARKET

ECONOMY

Since its inception, the Indian Railways has served to integrate the fragmented markets and thereby, stimulating the emergence of a modern market economy. It connects industrial production centres with markets and with sources of raw materials and facilitates industrial development and link agricultural production centres with distant markets. It provides rapid, reliable and cost- effective bulk transportation to the energy sector, to move coal from the coal fields to power plants and petroleum products from refineries to consumption centres. It links places, enabling large-scale, rapid and low-cost movement of

99 people across the length and breadth of the country. In the process, the Indian

Railways has become a symbol of national integration and a strategic instrument for enhancing India‘s defence preparedness.

The Indian Railways contributes to India's economic development, accounting for about one per cent of the GNP and the backbone of freight needs of the core sector. It accounts for six per cent of the total employment in the organised sector directly and an additional 2.5 per cent indirectly through its dependent organisations. It has in vested significantly in health, education, housing and sanitation. With its vast network of schools and investment in training, the Indian Railways plays an important role in human resource development. The Indian Railways, with nearly 63,000 route kilometres fulfils the country's transport needs, particularly, in respect of long-distance passenger and goods traffic. Freight trains carry nearly 1.2 million tonnes of originating goods and 7,500 passenger trains carry nearly 12 million passengers every day.

Freight and passenger traffic carried by the Indian Railways has recorded an impressive growth ever since Independence. While the input indices in terms of route kms, locomotives, passenger coaches and wagon capacity have only doubled during this period, the traffic output indices have increased by six times.

These achievements were due to selective inputs of affordable technology, adoption of innovative operational strategies, phased reduction of staff and operating costs and intensive monitoring of movements and maintenance areas.

The Railways has developed indigenous capacity for rolling stock manufacture, including state-of-the-art electric and diesel locomotives and high- speed passenger coaches. It has introduced high-speed Rajdhani and Shatabdi

Express trains and Mass Rapid Transit Systems in the metropolitan areas.

100 Commissioning of the Konkan Railway, extension of Electric Traction to cover 30 per cent of the broad gauge network, gauge conversion of about 8,000 kms. and provision of about 15,000 kms of double/multiple lines are some of the major achievements. It has computerised passenger reservation facility covering

95 per cent of the workload. It has constructed bridges - engineering marvels across major rivers like the Ganga, Godavari and Brahmputra.

3.24 CORPORATE STRATEGY

The Railways is sharpening its Marketing Capability to attract more and more freight and passenger business through constructive pricing mechanisms and tariff rationalisation and through customer focus. It has initiated steps to enhance market share in the bulk freight business as well as to secure growth in the non-bulk business, including less than rake load. Appropriate growth strategies for each passenger segment have also been evolved to secure recovery of various costs for the passenger business as a whole through internal cross- subsidisation within the various passenger segments.

The Indian Railways has strengthened the high density network to make the system capable of meeting the projected demands of the freight and passenger business. It practises austerity especially in the areas of energy consumption, material management, overtime, travelling allowance and advertisements. It tries to reduce operating costs by improving efficiency in production and maintenance units; by improving the purchasing procedures not only to secure cost reduction but also to improve reliability; by reduction in man power in a phased manner and by improving organisational excellence through human resource development. It plans to withdraw from ancillary activities to enable the management to concentrate on primary business for running freight and

101 passenger services. For tapping non-traditional sources of funding, the Railways has taken steps to attract external funding by involving domestic financial institutions and private sector participants at concessional rates of interest.

Indian Railways is exploring the possibility of attracting investment in fibre-optic telecommunication network and commercial exploitation of air space above stations. Other steps include exploiting the leasing route for procurement of rolling stock, innovative financing techniques such as Deep Discount Bonds with repayments towards the end of the term of the load and "Sell and Lease

Back"mechanisms to leverage the existing fixed as well as mobile assets.

3.25 MODERN TECHNOLOGY

The Railways plans to introduce modern technology in various spheres of its working. It aims at a stronger track structure with heavier and metallurgically superior rails, higher horse power, state-of-the-art electric and diesel locomotives, light and comfortable passenger coaches of modular construction with high speed bogies and lighter wagons with improved bogies with higher speeds and better payload. Other steps are solid state inter-locking, block proving by axle counters, centralised electronic interlocking, universal emergency communication and train radi in the areas of signalling and safety, optic fibre and digital microwave in the area of communication, dual voltage three-phase drive Electric Multiple Units for suburban services and Diesel Multiple Units (DMUs) and Main Line Electric

Multiple Units (MEMUs) for mass intra-urban and suburban traffic. The Indian

Railways is also planning to realise the potential of information technology in all areas of railway management and operations to cut costs and improve efficiency and safety.

102 3.26 INFRASTRUCTURE

The Indian Railways has a glorious past and has achieved a phenomenal growth in both freight and passenger traffic by improving asset utilisation and efficiency of operations. The time has come when massive investments are required for expanding the rail infrastructure and give the Railways its due share in the country's infrastructure development.

The debate on the transport sector in India has not focused adequately on the rail sector despite its many economic and environmental advantages. It is high time that Railways' role as a major infrastructure service provider is reinforced.

Constructive support from the Government and the pro-active and market- oriented response to the challenges of an open economy will set the tone for the renaissance of the Indian Railways as we march towards the new millennium.

This chapter analyzed the growth and development of Indian railways over a period of time. In the next chapter researcher analysis the passenger perception and expectation towards service quality of Tiruchirappalli Division of

Southern Railway.

103 CHAPTER –IV

PERCEPTION AND EXPECTATION OF THE PASSENGERS

Transport is an important infrastructure in the economy of India. It assumes a greater role in developing countries since all the sectors of the development are closely dependent upon the existence of suitable transportation network. India‘s transport industry has been organised with a mixed pattern of public and private sector ownership. The evident economic growth in India over the last two decades has increased demand for all transport services, particularly land transport through road and rail. The development of railways is one of the landmarks in the progress of human civilisation. Indian Railways, a historical legacy, is a vital force in Indian economy. India is a country with the largest railway network in Asia. Railways is the most convenient mode of transport for large scale goods movement as well as for long distance travel. Indian Railways has envisaged provision of various automated facilities oriented towards interfacing and guiding passengers to comfortably board trains and for providing enquiry facilities at stations. Provision of ticketing machines, water vending machines, platform shelters at stations, pay and use toilets, provision of improved cost effective lighting, good retiring rooms with modern furniture, coach indication boards, signage, security and enquiry counters are also provided to fulfill the needs of the railway passengers. The Indian Railways can perform well only when the passengers are satisfied with the services they obtain. Although, by providing quality services to its passengers, the Indian Railway can differentiate itself from other transport service firms and will able to improve its performance.

This chapter measures the passengers‘ perception and expectation towards service quality of the Indian Railways.

104 4.1 PROFILE OF THE RESPONDENTS

The demographic backgrounds of the sample respondents in five parameters are presented in the following tables to understand the passengers profiles i.e., gender, age, education, occupation and income.

4.1.1 SEX WISE DISTRIBUTION

The sex wise distribution of the sample respondents in the study area is presented in table 4.1.

TABLE 4.1

SEX WISE DISTRIBUTION

S.No Sex No. of respondents Percentage

01 Male 248 62.00

02 Female 152 38.00

Total 400 100.00

Source: Primary data

It is observed from Table 4.1 that out of 400 respondents, the majority of them are male (62 percent) and 38 per cent are female. The table also reveals that female passengers constitute a significant portion in the customer base of the

Indian Railways in the study area.

105 4.1.2 AGE WISE DISTRIBUTION

The age wise distribution of the sample respondents is given in table 4.2.

TABLE 4.2

AGE WISE DISTRIBUTION

S.No Age (Years) No. of respondents Percentage

01 Less 40 28 07.00

02 40 – 50 54 13.50

03 50 – 60 146 36.50

04 Above 60 172 43.00

Total 400 100.00

Source: Primary data

Table 4.2 shows that out of 400 respondents 43 per cent of the respondents are in the age group of above 60 years followed by nearly 37 per cent of the respondents are in the age group of 50-60 years, about 14 per cent of the respondents fall in the age group of 40-50 years and a small portion of the respondents (7 per cent) are below 40 years of age. From the table it is understood that the passengers who are in the age group of more than 50 years mostly prefers train journey as compared to other age groups.

106 4.1.3 EDUCATIONAL QUALIFICATIONS OF THE RESPONDENTS

The educational qualifications of the sample respondents in the selected public and private sector bank are shown in table 4.3.

TABLE 4.3

EDUCATIONAL QUALIFICATIONS OF THE RESPONDENTS

S.No Educational Qualifications No. of respondents Percentage

01 Up to HSC 27 06.75

02 Graduate 198 49.50

03 Post Graduate 136 34.00

04 Professional 39 09.75

Total 400 100.00

Source: Primary data

Table 4.3 shows that nearly 50 per cent of the respondents are undergraduate, 34 per cent of the respondents are postgraduate, nearly 10 per cent of the respondents are professionals and 07 per cent of the respondents studied upto higher secondary education. It is noteworthy to mention that more than three-fourth of the respondents are highly educated passengers, which shows the highly educated passengers mostly prefers train journey when compared to lesser educated passengers.

107 4.1.4 OCCUPATION OF THE RESPONDENTS

The occupation wise distribution of the sample respondents in the study area is given in table 4.4.

TABLE 4.4

OCCUPATION OF THE RESPONDENTS

S.No Occupation No. of respondents Percentage

01 Salaried 182 45.50

02 Professional 39 09.75

03 Business 64 16.00

04 Retired 85 21.25

05 Housewives 30 07.50

Total 400 100.00

Source: Primary data

Table 4.4 shows that the 46 per cent of the respondents are salaried, 21 per cent of the respondents are retired from services, 16 per cent of respondents are business people, about 10 per cent of the respondents are professionals and 08 per cent of the respondents are housewives. It is understood from the table that the salaried, business and retired passengers prefers train journey when compared to others in the study area.

108 4.1.5 INCOME OF THE RESPONDENTS

The annual income of the respondents in the study area is shown in table

4.5.

TABLE 4.5

INCOME OF THE RESPONDENTS

S.No Income ( ) No. of respondents Percentage

01 Less than ( ) 2 lakh 108 27.00

02 ( ).2 – 3 lakhs 140 35.00

03 ( ) 3 –4 lakhs 70 17.50

04 ( ) 4-5 lakhs 45 11.25

05 Above ( ) 5 lakhs 37 09.25

Total 400 100.00

Source: Primary data

Table 4.5 reveals that 35 per cent of the respondents‘ annual income is in between 2 – 3 lakhs and 27 per cent of the respondents‘ annual income is less than 2 lakh. The respondents whose annual income is in between 3 – 4 lakh constitute 18 per cent of the total respondents, about 11 per cent and 9 per cent of the respondents annual income is between 4-5 lakhs and above 5 lakhs respectively. Therefore, it can be inferred from the table that the lower and middle income passengers prefer train journey when compared to other in the study area.

109 4.2 PERCEPTION AND EXPECTATION ABOUT SERVICE QUALITY

To analyze perception of the passengers about service quality, an undisguised structured questionnaire, SERVQUAL, by Parasuraman et al with modified attributes to suit Railway Services was used for the research. The variables include tangibles, reliability, responsiveness, assurance and empathy. The respondents were asked to provide belief rating for services offered by Indian Railways, using seven-point rating scale ranging from 1 (strongly disagree) to 7 ( strongly agree), on which the higher numbers indicate a higher level of expectation or perceptions.

Perceptions are based on the actual service they receive from Indian

Railways while expectations are based on past experiences and information received about Transport industry. Service quality scores are the difference between the perception and expectation scores (P-E) with a possible range of values from -6 to +6 (-6 stands for very dissatisfied and +6 means very satisfied).

The quality score measures the service gap or the degree to which expectations exceed perceptions. The more positive the P-E scores, the higher the level of service quality leading to a higher level of passenger satisfaction. Satisfaction and service quality are both treated together as functions of a passenger‘s perception and expectations. If expectation and perception are equal, service quality is satisfactory.

4.3 QUALITY PERCEPTIONS ON TANGIBLES

Tangibles involve the appearance of psychical facilities, equipment, personnel and communication materials. To study the quality perceptions of customers on the tangibles, four parameters are used. The perception and expectation of the respondents about tangibles is shown in table 4.6.

110 TABLE 4.6

PERCEPTION AND EXPECTATION ON TANGIBLES

Perception Expectation Service Mean Mean Mean Mean S.No Parameters Quality Score Score Score Score Score (%) (%) Railway has modern looking equipment and 01 4.50 64.29 5.92 84.57 -1.42 infrastructure at stations and trains. Railways Physical Facilities like Lighting, 02 2.50 35.71 6.25 89.29 -3.75 seating and Toilets are satisfactory Staff of Railways are neat 03 6.48 92.57 5.22 74.57 1.26 in Appearance Time Tables, Display 04 Boards etc are visually 3.57 51.00 5.89 84.14 -2.32 appealing Overall (N=400) 17.05 60.89 23.28 83.14 -6.23 Source: Primary data

Table 4.6 reveals the mean score obtained by the respondents for service quality in respect of tangibles. The average score of total expectations is 23.28 and the overall perception score is 17.05. The score shows a – 6.23 difference. It implies that the expectations are higher than the perceived service quality. The respondents have a negative gap score for all the parameters except the parameter

‗Staff of Railways are neat in appearance‘. In this parameter perceptions of the passengers are more than to their expectations.

111 4.4 QUALITY PERCEPTION ON RELIABILITY

The reliability dimension of service quality is an important service quality dimension as it provides an insight as to the ability of a Indian Railways to perform promised service dependably and accurately from the passengers point of view. To assess the perception of the respondents in so far as the reliability is concerned, five parameters are used.

The perception and expectation of the respondents on reliability is analyzed in Table 4.7.

TABLE 4.7 PERCEPTION AND EXPECTATION ON RELIABILITY Perception Expectation Service Mean Mean Mean Mean S.No Parameters Quality Score Score Score Score Score (%) (%) Railways are accurate in 01 6.85 97.86 5.74 82.00 1.11 Record Keeping 02 Railways are accurate in 2.97 42.43 6.83 97.57 -3.86 timing of Trains Railways performs 03 3.42 48.86 5.86 83.71 -2.44 Service Correctly When you have problems 04 Railways shows sincere 2.50 35.71 6.42 91.71 -3.92 interest in solving it Railways adheres to 05 3.75 53.57 6.35 90.71 -2.60 punctuality of Trains Overall (N=400) 19.49 55.69 31.20 89.14 -11.71 Source: Primary data

As per table 4.7 the average score for overall expectations and perception about reliability was 19.49 and 31.20. The average service quality score was

-11.71, it is understood from the table that there is a gap in service quality with regard to reliability. The respondents have secured negative gap score for all the parameters except the parameter ―Railways are accurate in Record Keeping‘. The respondents have low perceived service quality for the parameter ‗When you have problems Railways shows sincere interest in solving it‘ followed by the

112 parameter ‗Railways are accurate in timing of Trains‘. Therefore, it can be inferred from the table that the passengers are not at all satisfied with the service quality with regard to reliability.

4.5 QUALITY PERCEPTION ON ASSURANCE

Assurance means competence and courtesy of employees and their ability to convey trust and confidence. This category includes this measured component of competence, courtesy, credibility and security. To study the perceptions on

‗assurance‘ as a quality dimension four parameters are used. The perception and expectation of the respondents on assurance is analyzed in table 4.8.

TABLE 4.8

PERCEPTION AND EXPECTATION ON ASSURANCE

Perception Expectation Service Mean Mean S.No Parameters Mean Mean Quality Score Score Score Score Score (%) (%) 01 The Railways are trustworthy 3.59 51.29 6.21 88.71 -2.62 02 You feel safe in your travel 3.14 44.86 6.57 93.86 -3.43 Railway Employees are 03 2.15 30.71 5.24 74.86 -3.09 courteous way 04 Employees are knowledgeable 3.47 49.57 5.98 85.42 -2.51 Average (N=400) 12.35 44.11 24.00 85.71 -11.65 Source: Primary data

Table 4.8 shows overall expectations of the passengers in the service quality dimension of assurance at a mean score of 24.00. Their perceptions show mean score at 12.25. The difference between expectation and perception was calculated to – 11.65. The difference was calculated for each statement to -2.62, -

3.43, - 3.09 and -2.51. The negative gap score was found in all the parameters. It is inferred from the table that the passengers do not think that their overall expectations are fulfilled within the service quality dimension of assurance.

113 4.6 QUALITY PERCEPTION ON RESPONSIVENESS

Responsiveness means willingness to help customers and to provide

prompt service, whilst capturing the notion of flexibility and the ability to

customize the service to customer needs. To assess the responsiveness dimension

of service quality, four parameters are considered. The perception and

expectation of the respondents on responsiveness is shown in table 4.9.

TABLE 4.9

PERCEPTION AND EXPECTATION ON RESPONSIVENESS

Perception Expectation Service Mean Mean S.No Parameters Mean Mean Quality Score Score Score Score Score (%) (%) Railway staff are always willing 01 3.53 50.43 5.74 82.00 - 2.21 to help Railway staff tell exactly when 02 3.69 52.71 6.45 92.14 - 2.76 services will be performed Employees of Railways give 03 2.87 41.00 5.39 77.00 - 2.52 prompt service to customers Employees of Railways are not 04 1.54 22.00 5.66 80.86 - 4.12 too busy to respond Average (N=400) 11.63 41.54 23.24 83.00 -11.61 Source: Primary data

As per table 4.9, the expectation means score obtained by all the sample

respondents for service quality with regard to responsiveness was 23.24 while

their perception show mean of 11.63. The difference between expectation and

perception is calculated to -11.61. At each statement the differences are

calculated to -2.21, -2.76, -2.52, and -4.12. There is a negative gap in service

quality for all the four parameters. The high gap score was found in the statement

‗Employees of Railways are not too busy to respond‘ followed by the statement

‗Railway staff tell exactly when services will be performed‘. The passengers

have low perception about the service quality in relation to responsiveness and

there is a negative gap between their expectation and perception about

114 responsiveness. This result shows that the passengers are not at all satisfied with the quality described in the responsiveness.

4.7 QUALITY PERCEPTION ON EMPATHY

Empathy represents the provision of caring individualized attention to passengers. It includes access, communication and understanding the passengers.

Empathy as a quality dimension is measured using five parameters as shown in table 11. The perception and expectation of the respondents of empathy are shown in table 4.10.

TABLE 4.10

PERCEPTION AND EXPECTATION ON EMPATHY

Perception Expectation Service Mean Mean S.No Parameters Mean Mean Quality Score Score Score Score Score (%) (%) Railways give individual 01 2.48 35.43 5.12 73.14 -2.64 Attention Railways operations are 02 4.17 59.57 6.34 90.57 -2.17 convenient to all passengers Railways employees should 03 understand the specific needs 3.42 48.86 6.17 88.14 -2.75 of their passengers. Railways has your best 04 3.25 46.43 6.31 90.14 -3.06 interest at heart It is easy to plan a railway 05 3.38 48.29 5.95 85.00 -2.57 Journey Average (N=400) 16.70 47.71 29.89 85.40 -13.19 Source: Primary data

Table 4.10 shows the perception and expectation score obtained by the respondents for service quality in respect of empathy. The mean expectation score achieved by the respondents for all the five statements was 29.89 while the perception score was 16.70, the difference mean score of -13.19 was service quality gap in respect of empathy. The respondents have secured the expectations mean score of more than 5, which indicates that they are having high

115 expectations from the study unit with individual attention to customers, operating hours convenient for all its passengers, understand the specific needs of the passengers, passengers best interest at heart and complaint handling system. The respondents have secured low perception for the all the statement and there is a gap between their expectations and perceptions. Therefore, it can be inferred from the table the service quality with regard to empathy of the study unit is not upto the expectations of the passengers.

4.8 OVERALL PERCEPTION ON SERVICE QUALITY

The summary of passengers' perception, expectations and service quality scores for all the service quality dimensions such as tangibles, reliability, assurance, responsiveness, and empathy is analyzed in table 4.11.

TABLE 4.11

OVERALL PERCEPTION ON SERVICE QUALITY

Perception Expectation Service Mean Mean S.No Parameters Mean Mean Quality Score Score Score Score Score (%) (%) 01 Tangibles 17.05 60.89 23.28 83.14 -6.23 02 Reliability 19.49 55.69 31.20 89.14 -11.71 03 Assurance 12.35 44.11 24.00 85.71 -11.65 04 Responsiveness 11.63 41.54 23.24 83.00 -11.61 05 Empathy 16.70 47.71 29.89 85.40 -13.19 Average (N=400) 77.22 50.14 131.61 85.46 -54.39 Source: Primary data

Table 4.11 shows the difference between passengers‘ expectations and perceptions about the service quality provided by the study unit in the study area.

Out of a maximum score of 154, the average expectation and perception score obtained by the respondents for overall service quality was 131.61 and 77.22.

The difference between expectation and perception score was -54.39, which indicates a wide service quality gap perceived by the respondents.

116 The highly perceived Service Quality Factors among the customers is tangibles since its mean score is 60.89 per cent. The second Service Quality

Factor perceived by the passenger's is Reliability since their mean score is 55.69 per cent. The next three Service Quality Factors perceived by the passengers is

Empathy, Assurance and responsiveness since their mean scores are 47.71 per cent, 44.11 per cent and 41.54 per cent respectively. However, the highest negative gap score was found in empathy (mean score of ---13.19) followed by

Reliability (mean score of -11.71). The gap score found in Assurance,

Responsiveness and Tangibles was -11.65, -11.71 and -6.23 respectively. Table further revels that the respondents have secured negative mean gap score for all five service quality dimensions such as Tangibles, Reliability, Responsiveness,

Assurance and Empathy. Therefore, it can be inferred from the table that the passengers have high expectation whereas their perceived low towards the quality of service provided by the study unit. The services provided by the Indian

Railways is not upto the expectations of passengers in the study area.

4.9 LEVEL OF PERCEPTION ABOUT SERVICE QUALITY

The level of perception about service quality has been examined to find out the clearer picture regarding their status on the basis of five parameters i.e. tangibles, reliability, responsiveness, assurance and empathy.

The level of perception of the respondents regarding railways services is assumed to be normally distributed. The level of perception of the respondents is divided into three categories, i.e. below average, average and above average levels, which have been defined as Low, Medium and High level of perception respectively. The lower and upper limits of average level have been calculated

117 with the help of the following formula99: Lower limit of average level = Mean - 1

Standard deviation, Upper limit of average level = Mean + 1 Standard deviation

4.9.1 LEVEL OF PERCEPTION ABOUT TANGIBLES

The level of perception about services provided by the Indian Railways in respect of tangibles is analyzed in table 4.12. TABLE 4.12

LEVEL OF PERCEPTION ABOUT TANGIBLES

Level of perception No. of Respondents Percentage Low 114 28.50 Medium 254 63.50 High 32 08.00 Total 400 100.00 Source: Primary data

Table 4.12 depicts passengers‘ perception level towards service quality in respect of tangibles. As much as 63.50 per cent of the respondents have moderate perception and 28.50 per cent of the respondents have low level of perception. About 8 per cent of the respondents have perceived high level towards services quality with regard to tangibles. Therefore, it can be inferred from the table that the majority of the passengers perceive moderate perception about the service quality with respect to tangibles. The level of perception of the respondents about tangibles is also shown in figure 4.1.

99Dr. A.B. Bhatnagar and Dr. (Mrs.) Meenakshi Bhatnagar (1992); Measurement and Evaluation', P. 116-120.

118 FIGURE 4.1

LEVEL OF PERCEPTION ABOUT TANGIBLES

300 254 250

200

150 114

100 No. of Respondentsof No.

50 32

0 Low Medium High Level of Perception

119 4.9.2 LEVEL OF PERCEPTION ABOUT RELIABILITY

The level of perception about services provided by the Indian Railways in the study area with regard to reliability is analyzed in table 4.13.

TABLE 4.13

LEVEL OF PERCEPTION ABOUT RELIABILITY

Level of perception No. of Respondents Percentage Low 138 34.50 Medium 217 54.25 High 45 11.25 Total 400 100.00 Source: Primary data

It is understood from the table 4.13 that the majority of the respondents have moderate level of perception and about 35 per cent of the respondents have expressed low level of perception towards service quality with regard to reliability. Nearly 11 per cent of the respondents have perceived high level of perception about the reliability. It can be inferred from the table that the passengers perceive moderate satisfaction with the service quality dimension of reliability. The level of perception of the respondents about reliability is also exhibited in figure 4.2.

120 FIGURE 4.2

LEVEL OF PERCEPTION ABOUT RELIABILITY

250 217

200

150 138

100

No. of Respondents 45 50

0 Low Medium High Level of Perception

121 4.9.3 LEVEL OF PERCEPTION ABOUT ASSURANCE

The level of perception about services provided by the Indian Railways with regard to assurance is analyzed in table 4.14.

TABLE 4.14

LEVEL OF PERCEPTION ABOUT ASSURANCE

Level of perception No. of Respondents Percentage Low 272 68.00 Medium 114 28.50 High 14 03.50 Total 400 100.00 Source: Primary data

Table 4.14 shows that out of 400 respondents, the majority of the respondents have low level of perception, nearly 29 per cent of the respondents have expressed moderate level of perception and nearly 29 per cent of the respondents have experienced high level perception about service quality with regard to assurance. Therefore, it can be understood from the table that the passengers perceive poor service quality in respect of assurance. The level of perception of the respondents about assurance is also depicted in figure 4.3.

122 FIGURE 4.3

LEVEL OF PERCEPTION ABOUT ASSURANCE

300 272

250

200

150 114

100 No. of Respondents of No. 50 14 0 Low Medium High Level of Perception

123 4.9.4 LEVEL OF PERCEPTION ABOUT RESPONSIVENESS

The level of perception about services provided by the Indian Railways with regard to responsiveness is analyzed in table 4.15.

TABLE 4.15

LEVEL OF PERCEPTION ABOUT RESPONSIVENESS

Level of perception No. of Respondents Percentage

Low 275 68.75

Medium 86 21.50

High 39 09.75

Total 400 100.00

Source: Primary data

Table 4.15 reveals that the level of perception about service quality in respect of responsiveness. Out of 400 respondents about 69 per cent of the respondents perceived low service quality, nearly 22 per cent of the respondents have moderate level of perception and only 10 per cent of the respondents have expressed high level of perception about service quality with regard to responsiveness. Therefore, it can be presumed from the table that the passengers perceive poor service quality in terms of responsiveness. The level of perception of the respondents about responsiveness is also shown in figure 4.4.

124 FIGURE 4.4

LEVEL OF PERCEPTION ABOUT RESPONSIVENESS

300 275

250

200

150

100 86 No. of Respondents of No.

50 39

0 Low Medium High Level of Perception

125 4.9.5 LEVEL OF PERCEPTION ABOUT EMPATHY

The level of perception about services provided by the Indian Railways with regard to empathy is analyzed in table 4.16.

TABLE 4.16

LEVEL OF PERCEPTION ABOUT EMPATHY

Level of perception No. of Respondents Percentage Low 234 58.50 Medium 140 35.00 High 26 06.50 Total 400 100.00 Source: Primary data

Table 4.16 shows the level of perception of the passengers about service quality in respect of empathy. Out of 400 respondents, majority of the respondents (58.50 per cent) and 35 per cent of the respondents have perceived low and moderate service quality. A small portion of the respondents (7 per cent) have perceived high level of service quality in respect of empathy. Therefore, it can be inferred from the table that the passengers perceive poor service quality about empathy. The level of perception of the respondents about empathy is also given in figure 4.5.

126 FIGURE 4.5

LEVEL OF PERCEPTION ABOUT EMPATHY

250 234

200

150 140

100 No.of Respondents

50 26

0 Low Medium High Level of Perception

127 4.9.6 OVERALL LEVEL OF PERCEPTION ABOUT SERVICE QUALITY

The overall level of perception of the passengers about service quality provided by the Indian Railways in the study area is shown in table 4.17.

TABLE 4.17

OVERALL LEVEL OF PERCEPTION ABOUT SERVICE QUALITY

Level of perception No. of Respondents Percentage Low 205 51.25 Medium 167 41.75 High 28 07.00 Total 400 100.00 Source: Primary data

Table 4.17 indicates the level of perception perceived by the respondents about overall service quality by considering the service quality dimensions such as tangibles, reliability, responsiveness, assurance and empathy. Out of 400 respondents about 51 per cent of the respondents have revealed low perception,

42 per cent of the respondents have perceived moderate level and 7 per cent of the respondents have expressed high level of perception about service quality.

Therefore, it can be inferred from the table that the passengers perceives poor service quality provided by the Indian Railways in the study area. The overall perception of the respondents about service quality is also depicted in figure 4.6.

128 FIGURE 4.6

OVERALL LEVEL OF PERCEPTION ABOUT SERVICE QUALITY

250

205 200 167

150

100

No. of Respondentsof No. 50 28

0 Low Medium High Level of Perception

129 4.10 GAP ANALYSIS

The Gap Analysis is a technique used to identify the Gap - the difference between the level of perception and level of expectation on the various service quality dimensions For this analysis t- test is employed to find if the Gap obtained is significant or not.

Null hypothesis

There is no significant difference in the mean scores between the level of perception and the level of expectation (GAP) on the various service quality dimensions.

TABLE 4.18

GAP ANALYSIS

Service Quality Dimensions Gap t-value Result

Tangibles -6.23 1.79 Not significant Reliability -11.71 2.95 **Significant Assurance -11.65 6.76 **Significant Responsiveness -11.61 5.39 **Significant Empathy -13.19 7.52 **Significant Overall perception and -54.39 8.89 **Significant expectation **Significant at 5% level and 1% level, *Significant at 5% level

Table 4.18 reveals that the calculated t-value is greater than the tabulated value. Therefore, the null hypothesis is rejected, hence, it can be concluded there is a significant difference in the mean scores between the level of perception and the level of expectation (GAP) on the service quality dimensions, reliability,

Assurance, Responsiveness and Empathy. However there is no significant difference in the mean score between level of perception and expectation on the service quality dimension of tangibles.

130 4.11 CORRELATION COEFFICIENTS BETWEEN VARIABLES

In order to find out whether there is any significant association between perceptions of the respondents about the service quality dimension and overall service quality, the correlation coefficient is used to test the following hypothesis.

Null hypothesis

There is no positive relationship between perceived value of the service quality dimension such as tangible, reliability, assurance, responsiveness and empathy and assurance and perceived value of overall service quality.

The test statistic used to test the null hypothesis is

r t = Sqrt[(1—r2)/(N—2)]

131 TABLE 4.19

CORRELATION COEFFICIENTS BETWEEN VARIABLES AND DESCRIPTIVE STATISTICS

Variables Mean SD Overall Service Quality Tangible Reliability Assurance Responsiveness Empathy Overall Service Quality 77.22 26.84 1.00 Tangible 17.05 6.76 **0.64 1.00 Reliability 19.49 8.60 **0.78 **0.98 1.00 Assurance 12.35 2.60 **0.90 **0.24 **0.42 1.00 Responsiveness 11.63 3.89 **0.79 0.04 **0.23 **0.98 1.00 Empathy 16.70 3.00 **0.97 **0.42 **0.59 **0.97 **0.92 1.00 The correlation value is significant both at **p<0.05 and p<0.01,

132 Table 4.19 shows the results of testing the relationship between service quality features and perceived value. The outcomes of testing the relationship display that tangible, reliability, assurance, responsiveness and empathy is positively and significantly related to the overall perceived value of service quality, therefore the hypothesis is supported. These statistical results show that the service quality characteristics are important antecedents of perceived value in the organizational samples.

4.12 DEMOGRAPHIC VARIABLES AND LEVEL OF PERCEPTION

The level of perception overall service quality in the study unit in accordance with individual demographic variables such as gender, age, education, occupation, and income is analyzed and presented in the following tables.

4.12.1 SEX AND LEVEL OF PERCEPTION

The level of perception about overall service quality and the sex of the respondents is shown in table 4.20.

TABLE 4.20

SEX AND LEVEL OF PERCEPTION

No. of Respondents Sex Low Medium High Total 127 105 16 248 Male (61.96) (62.87) (57.14) (62.00) 78 62 12 152 Female (38.05) (37.13) (42.86) (38.00) 205 167 28 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total.

Table 4.20 shows the sex-wise distribution of the respondents and their level of perception about service quality. Out of 205 respondents who perceived low level nearly 62 per cent and 38 per cent of the respondents are male and female.

133 Among the respondents who perceived moderate level of service quality, the majority of them are male and 37 per cent of the respondents are female. Out of 28 respondents who perceived a high level of service quality about 62 per cent of the respondents are male and 38 per cent of the respondents are female. It is inferred from the table that the male passengers perceive poor service quality than that of female passengers about the service quality of the Indian Railways in the study area.

4.12.2 AGE AND LEVEL OF PERCEPTION

The age wise distribution of the respondents and their level of perception about overall service quality is shown in table 4.21.

TABLE 4.21

AGE AND LEVEL OF PERCEPTION

No. of Respondents Age (Years) Low Medium High Total Less 40 14 10 04 28 (06.83) (05.99) (14.29) (07.00) 40 – 50 26 22 06 54 (12.68) (13.17) (21.43) (13.50) 50 – 60 85 51 10 146 (41.46) (30.54) (35.71) (36.50) Above 60 80 84 08 172 (39.02) (50.30) (28.57) (43.00) 205 167 28 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total.

Table 4.21 depicts the age and level of perception. Out of 205 respondents who perceived low, nearly 41 per cent and 39 per cent of the respondents are in the age group of 50-60 years and above 60 years. About 13 per cent and 7 per cent of the respondents are in the age group of 40-50 years and below 40 years.

Among the respondents who exposed moderate perception, as much as 50 per cent and 30 per cent are in the age group of above 60 years and 50-60 years.

134 Nearly 13 per cent and 6 per cent of the respondents are in the age group of 40-50 years and below 50 years. Among the respondents who have enjoyed a high level of perception, nearly 36 per cent, 29 per cent 21 per cent and 14 per cent of the respondents were in the age group of 50-60 years, above 60 years, 40-50 years and below 40 years have a high level of perception respectively. Therefore, it can be inferred from the table that the passengers in the age group of above 50 years perceives poor service quality of the study unit in the study area.

4.12.3 EDUCATIONAL QUALIFICATIONS AND LEVEL OF PERCEPTION

The educational qualifications of the respondents and their level of perception about the overall service quality of the study unit is shown in table

4.22.

TABLE 4.22

EDUCATIONAL QUALIFICATIONS AND LEVEL OF PERCEPTION

Educational No. of Respondents Qualifications Low Medium High Total 17 07 03 27 Up to HSC (08.29) (04.19) (10.71) (06.75) 116 72 10 198 Graduate (56.59) (43.11) (35.71) (49.50) 64 65 07 136 Post Graduate (31.22) (38.92) (25.00) (34.00) 08 23 08 39 Professional (03.90) (13.77) (28.57) (09.75) 205 167 28 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total.

The table 4.22 depicts the educational qualifications and their level of perception about service quality. The respondents who perceived low level of perception, the majority them are graduate and 31 per cent are postgraduate, among the respondents who exposed moderate perception, 43 per cent, 39 per cent, 14 per cent and 4 per cent of the respondents are graduate, postgraduate,

135 professionals and studied up to higher secondary education respectively. The respondents who revealed high level of perception, nearly 36 per cent, 25 per cent, 29 per cent and 11 per cent are graduate, postgraduate, professionals and studied up to higher secondary education respectively. Therefore, it can be inferred from the table that the highly educated passengers perceives poor service quality of the study unit in the study area.

4.12.4 OCCUPATION AND LEVEL OF PERCEPTION

The occupation wise distribution of the respondents and their level of perception are shown in table 4.23.

TABLE 4.23

OCCUPATION AND LEVEL OF PERCEPTION

No. of Respondents Occupation Low Medium High Total 94 75 13 182 Salaried (45.85) (44.91) (46.43) (45.50) 14 22 03 39 Professional (06.83) (13.17) (10.71) (09.75) 26 31 07 64 Business (12.68) (18.56) (25.00) (16.00) 55 27 03 85 Retired (26.83) (16.17) (10.71) (21.25) 16 12 02 30 Housewife (07.80) (07.19) (07.14) (07.50) 205 167 28 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total.

Table 4.23 shows out of 205 respondents who perceived low level of perception nearly 46 per cent of the respondents are employees followed by 27 per cent are retired employees. About 13 per cent, 7 per cent and 8 per cent are business people, professionals and house wife respectively. It can be inferred from the table that the employees and retired employees perceives poor service quality of the study unit in the study area.

136 4.12.5 INCOME AND LEVEL OF PERCEPTION

The income of the respondents and their level of perception about the overall service quality of the study unit in the study area is analyzed in table 4.24.

TABLE 4.24

INCOME AND LEVEL OF PERCEPTION

No. of Respondents Monthly Income ( ) Low Medium High Total 55 46 07 108 Less than ( ) 2 lakh (26.83) (27.54) (25.00) (27.00) 61 68 11 140 ( ).2 – 3 lakhs (29.76) (40.72) (39.29) (35.00) 38 27 05 70 ( ) 3 –4 lakhs (18.54) (16.17) (17.86) (17.50) 24 18 03 45 ( ) 4-5 lakhs (11.71) (10.78) (10.71) (11.25) 27 08 02 37 Above ( ) 5 lakhs (13.17) (04.79) (07.14) (09.25) 205 167 28 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total.

Table 4.24 reveals that out of 205 respondents who perceived low level of perception, nearly 30 per cent, 27 per cent 19 per cent 13 per cent and 12 per cent of the respondents annual income is 2 – 3 lakhs, Less than 2 lakh, 3 –4 lakhs, above 5 lakhs and 4-5 lakhs respectively. Therefore, it can be inferred from the table that the passengers whose annual income is less than 3 lakh perceives poor service quality of the study unit in the study area.

To find out whether there is a significant difference between demographic variables such as sex, age, educational qualifications, occupation and income and level of perception of the respondents about service quality, a null hypothesis is framed and test with the help of ANOVA test.

137 Null hypothesis

There is no significant difference between demographic variables (sex, age, educational qualifications, occupation and income) and level of perception about service quality.

The result is given in table 4.25.

TABLE 4.25

ANOVA TEST

Variable Sum of Df Mean F Result Squares square Between 8682.33 2 4341.16 Sex and level groups Not 6.11 of perception Within groups 2133 3 711.00 significant Total 10815.33 5 Between Age and 4341.17 2 2170.58 groups Not level of 2.68 Within groups 7279.5 9 08.83 significant perception Total 11 Between Educational 4341.16 2 2170.58 qualifications groups Not 1.87 and level of Within groups 10439.5 9 1159.94 significant perception Total 14780.67 11 Between Occupation 3472.93 2 1736.47 groups Not and level of 2.96 Within groups 7032.40 12 586.03 significant perception Total 10505.33 14 Between 3472.93 2 1736.46 Income and groups level of Within groups 3420.39 12 285.03 6.09 *Significant perception Total 6893.33 14 * Significant at 5 per cent level

Table 4.25 shows that gender, age, educational qualification, and occupation have no significant difference in perception of the respondents about service quality, which means that the passenger are not differently perceived by females and males, age, educational qualifications, occupation. However, there is a significant difference between level of perception and income of the passengers.

138 To conclude, from results obtained, it is observed that passenger perceived service quality is poor in all the service quality dimensions such as tangibles, reliability, assurance, responsiveness and empathy. In this regard, all the dimensions show a gap between perceived service and expected service and this therefore means that service quality of the Indian Railways in the study area needs to make improvements in all dimensions in order to close gaps that could lead to increased passengers perception about service quality. The next chapter analysis the impact of service quality on passengers‘ satisfaction with railway services in the study area.

139 CHAPTER – V

SERVICE QUALITY AND PASSENGERS SATISFACTION

India is a country with the largest railway network in Asia. Railways are the most convenient mode of transport for large scale goods movement as well as for long distance travel. Indian railways have envisaged provision of various automated facilities oriented towards interfacing and guiding passengers to comfortably board trains and for providing ancillary facilities at stations.

Provision of ticketing machines, water vending machines, platform shelters at stations, pay and use toilets, provision of improved cost effective lighting, good retiring rooms with modern furniture, coach indication boards, signage, security and enquiry counters are also provided to fulfill the needs of the railway passengers. The Indian railways can perform well only when the passengers are satisfied with the services they obtain.

Being as a service industry, Indian railways should fulfill the expectations of its passengers. Moreover the process of measuring passenger satisfaction and obtaining feedback on the performance of the Indian railways are valuable tools for quality and continuous service improvement. Therefore, in this chapter an attempt has been made to investigate the satisfaction level of passengers and analyze the effect of service quality on passengers‘ satisfaction.

5.1 FACTORS THAT AFFECT PASSENGERS SATISFACTION Factors that affect passengers‘ satisfaction into three factor structure;

Basic factors: these are the minimum requirements that are required in a service to prevent the passenger from being dissatisfied. They do not necessarily cause satisfaction but lead to dissatisfaction if absent. These are those factors that lead to the fulfilment of the basic requirement for which the service is provided. These constitute the basic attributes of the product or service. They thus have a low

140 impact on satisfaction even though they are a prerequisite for satisfaction. In a nutshell competence and accessibility

Performance factors: these are the factors that lead to satisfaction if fulfilled and can lead to dissatisfaction if not fulfilled. These include reliability and friendliness.

Excitement factors: these are factors that increase passengers‘ satisfaction if fulfilled but does not cause dissatisfaction if not fulfilled which include project management.

In this study, the researcher has taken the variables such as Basic

Facilities, Hygiene, Safety and Security, Catering, Punctuality, Behavior towards

Passengers to analyze the level of passengers‘ satisfaction with services provided by the Indian railways.

5.2 PASSENGERS SATISFACTION

A five point scale on the likert model was used to measure passengers‘ satisfaction. The passengers satisfaction questionnaire consists of 23 items including 11 items of basic facilities, 3 items of hygiene, 2 items of safety and security, 2 items of catering, 2 items of the punctuality and 3 items of behavior towards passengers. The mean score obtained by the respondents is given in the succeeding pages.

5.3 BASIC FACILITIES

This aspect includes the availability of seats, drinking water and power supply. The mean score obtained by the respondent in respect of basic facilities is shown in table 5.1.

141 TABLE 5.1

BASIC FACILITIES

S.No Parameter Mean Score Mean Score (%) 01 Availability of Seats 1.78 35.60 02 Availability Drinking Water 1.49 29.80 03 Power Supply 3.57 71.40 04 Lighting facilities 3.85 77.00 05 Inside atmosphere 2.96 59.20 06 Parking space outside 1.87 37.40 07 Working of fans 2.40 48.00 08 E-Booking facilities 3.98 79.60 09 Festival services 1.56 31.20 10 Summer specials 1.48 29.60 11 Tatkal services 1.69 33.80 Overall (N=400) 26.63 48.42 Source: Primary data

Table 5.1 shows that the average mean score obtained by the sample respondents for passenger satisfaction in railway services with regard to the basic facilities was 48.42 percent. The maximum score of 79.60 per cent, 77 per cent and 71.40 per cent was obtained by the respondents for the factor ‗e-booking facilities‘ ‗lighting facilities‘ and ‗power supply‘ respectively. The respondents have secured low mean score for summer special trains, availability of drinking water, tatkal services, availability of seats, festival train services, vehicle parking space outside, working fans, and inside atmosphere. The overall mean score obtained by the respondents indicates that the passengers not at all satisfied with the basic facilities provided by the Indian railways.

5.4 HYGIENE

This includes sanitation quality, neatness of the compartment and cleanliness of the toilets. The mean score obtained by the respondents for hygienic condition maintained by the Indian railways in the study area is given in table 5.2.

142 TABLE 5.2

HYGIENE

Mean Score S.No Parameter Mean Score (%) 01 Sanitation Quality 2.74 54.80 02 Cleanliness of toilets 1.74 34.80 03 Neatness of Compartment 2.31 46.20 Overall (N=400) 6.79 45.27 Source: Primary data

Table 5.2 present that the mean score secured by the respondents for passenger satisfaction with regard to hygienic conditions. The mean score obtained by the respondents for hygienic conditions was 45.27 per cent. The respondents have secured low mean score for the cleanliness of toilets in the platform and in the compartment. It implies that the passengers have low satisfaction with hygienic condition maintained by the Indian railways in the study area.

143 5.5 SAFETY AND SECURITY

This refers to self safety and safety of the belongings. The mean score secured by the respondents in respect of safety and security is shown in table 5.3.

TABLE 5.3

SAFETY AND SECURITY

Mean Score S.No Parameter Mean Score (%) 01 Self Safety 3.98 79.60 02 Safety of Belongings 3.76 75.20 Overall (N=400) 7.74 77.40 Source: Primary data

Table 5.3 shows the mean score secured by the respondents for safety and securities. There are two items were framed to assess the passenger satisfaction with regard to safety and securities, of which the respondents have secured high score for all the items. This indicates that the passengers feel secure in their life and belongings in the train journey.

144 5.6 CATERING SERVICES

This consists of affordability and quality of catering items. The mean score obtained by the respondents is shown in table 5.4.

TABLE 5.4

CATERING SERVICES

Mean Score S.No Parameter Mean Score (%) 01 Affordability 2.63 52.60 02 Quality 2.40 48.00 Overall (N=400) 5.03 50.30 Source: Primary data

As per table 5.4, the average mean score obtained by the respondents for catering services was 50.30 per cent. The respondents have secured 52.60 per cent and 48 per cent for affordability and quality. It implies that the passengers are moderately satisfied with the catering services provided by the Indian railways in the study area.

5.7 PUNCTUALITY

This refers to right time service and information accessibility. The mean score obtained by the respondents is shown in table 5.5.

TABLE 5.5

PUNCTUALITY

Mean Score S.No Parameter Mean Score (%) 01 Right-time Service 1.89 37.80 02 Information Accessibility 2.14 42.80 Overall (N=400) 4.03 40.30 Source: Primary data

145 Table 5.5 shows the mean score secured by the respondents for punctuality. There are two items were framed to assess the passenger satisfaction with regard to punctuality, of which the respondents have secured low score for all the items. The respondents have obtained the mean score of 40.30 per cent, which indicate that the passengers have low satisfaction with the right time services and information accessibility of railways information in the study area.

5.8 BEHAVIOUR TOWARDS PASSENGERS

This includes behaviour of staff and behaviour of co-passengers. The mean score secured by the respondents in respect of behaviour towards passengers is shown in table 5.6.

TABLE 5.6

BEHAVIOUR TOWARDS PASSENGERS

Mean Score S.No Parameter Mean Score (%) 01 Behaviour of Staff 1.75 35.00 02 Behaviour of co-passengers 3.54 70.80 03 Response to phone enquiry 1.26 25.20 Overall (N=400) 6.55 43.67 Source: Primary data

Table 5.6 indicates the mean score obtained by the respondents for behaviour towards passengers. The average mean score of 43.67 per cent was secured by the respondents. The respondents have secured low mean score of

25.20 per cent and 35.00 per cent for the factors behavior of staff and respond to phone inquiries. Therefore, it can be inferred from the table that the passengers are not satisfied with the behaviour of the employees in the study area.

146 5.9 OVERALL MEAN SCORE

The overall mean score secured by the respondents for the six variables selected for measuring passenger satisfaction with the railway services in the study area is shown in table 5.7.

TABLE 5.7

OVERALL MEAN SCORE

Mean Score S.No Variable Mean Score (%) 01 Basic Facilities 26.63 48.42 02 Hygiene 06.79 45.27 03 Safety And Security 07.74 77.40 04 Catering 05.03 50.30 05 Punctuality 04.03 40.30 06 Behavior Towards Passengers 06.55 43.67 Overall (N=400) 56.77 49.37 Source: Primary data

Table 5.7 shows the overall mean score obtained by the respondents for overall passenger satisfaction. The overall mean score secured by the respondents was 49.37 per cent. The respondents have secured low mean score for all the variables except safety and security. It can be inferred from the table that the passengers are dissatisfied with the railway services in the study area.

5.10 LEVEL OF CUSTOMER SATISFACTION

The level of satisfaction of the respondents is divided into three categories, i.e. below average, average and above average levels, which have been defined as Low, Medium and High level of satisfaction respectively. The lower and upper limits of average level have been calculated with the help of the following formula: Lower limit of average level = Mean - 1 Standard deviation,

Upper limit of average level = Mean + 1 Standard deviation. The level of passenger satisfaction with railway services is analyzed in table 5.8.

147 5.10.1 LEVEL OF SATISFACTION WITH BASIC FACILITIES

The level of satisfaction of the respondents with Basic Facilities provided by the Indian railways in the study area is shown in table 5.8.

TABLE 5.8 LEVEL OF SATISFACTION WITH BASIC FACILITIES

Level of satisfaction No. of Respondents Percentage

Low 248 62.00

Medium 115 28.75

High 37 09.25

Total 400 100.00

Source: Primary data

Table 5.8 shows the level of passenger satisfaction with railway services with regard to the basic facilities in the study area. Out of 400 respondents, nearly

62 per cent of the respondents experienced low level of satisfaction. Nearly 29 per cent and 9 per cent of the respondents revealed moderate and high level of satisfaction. It can be inferred from the table that the passengers experiences low levels of satisfaction with regard to basic facilities. The level of satisfaction of the passengers towards basic facilities is also shown in figure 5.1.

148 FIGURE 5.1

LEVEL OF SATISFACTION WITH BASIC FACILITIES

248 250

200

150 115

100 No. of RespondentsNo.of 37 50

0 Low Medium High Level of Satisfaction

149 5.10.2 LEVEL OF SATISFACTION WITH HYGIENE

The level of satisfaction of the respondents with hygienic conditions maintained by Indian railways in the study area is given in table 5.9.

TABLE 5.9

LEVEL OF SATISFACTION WITH HYGIENE

Level of satisfaction No. of Respondents Percentage

Low 258 64.50

Medium 110 27.50

High 32 08.00

Total 400 100.00

Source: Primary data

Table 5.9 depicts a level of passenger satisfaction with hygienic condition maintained by the Indian railways. Out of 400 respondents, the majority of the respondents experienced low level of satisfaction. Nearly 28 per cent and 8 per cent of the respondents felt moderate and high level of satisfaction. Therefore, it can be inferred from the table that most of the passengers feel a low level of satisfaction with regard to hygienic condition of Indian railways. The level of satisfaction of the passengers with hygienic conditions in the Indian Railways in the study area is also given in figure 5.2.

150 FIGURE 5.2

LEVEL OF SATISFACTION WITH HYGIENE

300 258 250

200

150 110

100 No. of Respondents

50 32

0 Low Medium High Level of Satisfaction

151 5.10.3 LEVEL OF SATISFACTION WITH SAFETY AND SECURITY

The level of satisfaction of the respondents with Safety and Security in the Indian railways in the study area is analyzed in table 5.10.

TABLE 5.10

LEVEL OF SATISFACTION WITH SAFETY AND SECURITY

Level of satisfaction No. of Respondents Percentage

Low 45 11.25

Medium 81 20.25

High 274 68.50

Total 400 100.00

Source: Primary data

Table 5.10 reveals that out of 400 respondents, the majority of the respondents expressed a high level of satisfaction, nearly 20 per cent and 11 per cent of the respondents experienced moderate and low level of satisfaction with safety and security in the Indian railways. It can be inferred from the table that most of the passengers perceive a high level of satisfaction with railway services in the study area. The level of satisfaction of the passengers with the safety and securities in the Indian Railways in the study area is also presented in figure 5.3.

152 FIGURE 5.3

LEVEL OF SATISFACTION WITH SAFETY AND SECURITY

300 274

250

200

150

100 81 No. of Respondentsof No. 45 50

0 Low Medium High Level of Satisfaction

153 5.10.4 LEVEL OF SATISFACTION WITH CATERING SERVICES

The level of satisfaction of the respondents with the catering services provided by the Indian railways in the study area is shown in table 5.11.

TABLE 5.11

CATERING SERVICES

Level of satisfaction No. of Respondents Percentage

Low 128 32.00

Medium 212 53.00

High 60 15.00

Total 400 100.00

Source: Primary data

It is understood from the table 5.11 that out of 400 respondents, nearly 53 per cent of the respondents have moderate levels of satisfaction, about 32 per cent and 15 per cent of the respondents expressed low and high level of satisfaction with the catering services. It can be inferred from the table that the passengers perceive low satisfaction with the catering services of the Indian railways in the study area. The level of satisfaction of the passengers with catering services is also depicted in figure 5.4.

154 FIGURE 5.4

CATERING SERVICES

250 212 200

150 128

100

60 No. of Respondentsof No. 50

0 Low Medium High Level of Satisfaction

155 5.10.5 LEVEL OF SATISFACTION WITH PUNCTUALITY

The level of satisfaction of the respondents with the Punctuality maintained by the Indian railways in the study area is shown in table 5.12.

TABLE 5.12

PUNCTUALITY

Level of satisfaction No. of Respondents Percentage

Low 267 66.75

Medium 98 24.50

High 35 08.75

Total 400 100.00

Source: Primary data

It is observed from the table 5.12 that among the selected respondents, the majority of the respondents have low level of satisfaction with the punctuality.

About 25 per cent and 9 per cent of the respondents have moderate and high level of satisfaction. It implies that the passengers perceive low satisfaction with the punctuality of the Indian railways. The level of satisfaction of the respondents with punctuality of the Indian Railways in the study area is also shown in figure

5.5.

156 FIGURE 5.5

PUNCTUALITY

300 267

250

200

150

98

100 No. of Respondents

50 35

0 Low Medium High Level of Satisfaction

157 5.10.6 LEVEL OF SATISFACTION WITH BEHAVIOR TOWARDS

PASSENGERS

The level of satisfaction of the respondents with the Behavior towards

Passengers in the study area is given in table 5.13.

TABLE 5.13

LEVEL OF SATISFACTION WITH BEHAVIOUR TOWARDS

PASSENGERS

Level of satisfaction No. of Respondents Percentage

Low 257 64.25

Medium 114 28.50

High 29 07.25

Total 400 100.00

Source: Primary data

Table 5.13 depicts passenger satisfaction level with behavior towards passengers. Out of 400 respondents, the majority of the respondents experienced low level of satisfaction, about 29 per cent and 7 per cent of the respondents revealed moderate and high level of satisfaction with behaviour of the employees and co-passengers. Therefore, it can be inferred from the table that most of the passengers feel a low level of satisfaction with the behavior of the railway employees in the study area. The level of satisfaction of the respondents towards behaviour of the employees towards passengers is given in figure 5.6.

158 FIGURE 5.6

LEVEL OF SATISFACTION WITH BEHAVIOUR TOWARDS

PASSENGERS

300 257 250

200

150 114

100 No. of Respondentsof No. 50 29

0 Low Medium High Level of Satisfaction

159 5.10.7 OVERALL LEVEL OF SATISFACTION

The overall level of satisfaction of the respondents combined together with the variables Basic Facilities, Hygiene, Safety and Security, Catering services, Punctuality and Behavior towards Passengers are shown in table 5.14.

TABLE 5.14

OVERALL LEVEL OF SATISFACTION

Level of satisfaction No. of Respondents Percentage

Low 215 53.75

Medium 134 33.50

High 51 12.75

Total 400 100.00

Source: Primary data

Table 5.14 reveals that out of 400 respondents majority of the respondents expressed low satisfaction, 34 per cent and 13 per cent of the respondents experienced moderate and high level of satisfaction with overall railway services.

Therefore, it can be inferred from the table that passengers perceive low satisfaction with railway services in the study area. The overall level of satisfaction of the passengers with railways services is shown in figure 5.7.

160 FIGURE 5.7

OVERALL LEVEL OF SATISFACTION

250 215

200

150 134

100

51 No. of Respondents of No. 50

0 Low Medium High Level of Satisfaction

161 5.11 APPLICATION OF T- TEST

In order to find out whether there is any significant difference in the mean scores secured by the respondents for passenger satisfaction, a null hypothesis are framed and tested with the help of t test.

Null hypothesis

There is no significant difference in the mean scores obtained from the respondents for passenger satisfaction.

The result is given in table 5.15

TABLE 5.15 T- TEST Passenger Satisfaction t-value Result

Basic Facilities 8.11 **Significant Hygiene 7.84 *Significant Safety And Security 17.59 **Significant Catering 22.23 **Significant Punctuality 16.76 *Significant Behavior Towards Passengers 3.15 Not Significant Overall satisfaction 13.00 **Significant **Significant at 5% level and 1% level, *Significant at 5% level

Table 5.15 reveals that the calculated t-value is greater than the tabulated value except behaviour towards passengers. Hence, it can be concluded there is a significant difference in the mean scores obtained for basic facilities, hygiene, safety and security, catering, punctuality, overall satisfaction. However, there is no significant difference in the mean scores obtained for behaviour towards passengers.

162 5.12 CORRELATION COEFFICIENTS BETWEEN VARIABLES In order to find out whether there is any significant association between passenger satisfaction factors and overall satisfaction, the correlation coefficient is used to test the following hypothesis.

Null hypothesis

There is no positive relationship between perceived values of the passenger satisfaction factors such as Basic Facilities, Hygiene, Safety and

Security, Catering, Punctuality, Behavior towards Passengers over all satisfaction.

The test statistic used to test the null hypothesis is

r t = Sqrt[(1—r2)/(N—2)]

163 TABLE 5.16

CORRELATION COEFFICIENTS BETWEEN VARIABLES AND DESCRIPTIVE STATISTICS

Basic Safety And Behavior Towards Variables Mean SD Hygiene Catering Punctuality Facilities Security Passengers Overall Passengers 56.77 10.89 1.00 Satisfaction Basic Facilities 26.63 1.50 0.98 1.00 Hygiene 06.79 0.32 0.97 0.99 1.00 Safety and Security 07.74 0.32 -0.93 -0.86 -0.85 1.00 Catering 05.03 0.34 0.99 0.98 0.99 -0.91 1.00 Punctuality 04.03 3.6 0.96 0.99 0.98 -0.80 0.98 1.00 Behavior Towards 06.55 20.93 0.98 0.99 0.99 -0.87 0.99 0.99 Passengers The correlation value is significant both at **p<0.05 and p<0.01,

164 Table 5.16 shows that there is a significant positive correlation between overall satisfaction and basic facilities, between overall satisfaction and hygienic conditions, between overall satisfaction and Catering services, between overall satisfaction and Punctuality and between overall satisfaction and Behavior

Towards Passengers. There is no positive association between overall satisfaction and Safety and Security.

5.13 DEMOGRAPHIC VARIABLES AND LEVEL OF SATISFACTION

The demographic variables of the respondents and their level of satisfaction with railway services in the study area is shown in the succeeding pages.

5.13.1 SEX AND LEVEL OF PERCEPTION

The sex-wise distribution of the respondents and their level of satisfaction with railway services in the study area is shown in table 5.17.

TABLE 5.17

SEX AND LEVEL OF SATISFACTION

No. of Respondents Sex Low Medium High Total 157 64 27 248 Male (73.02) (47.76) (52.94) (62.00) 58 70 24 152 Female (26.97) (52.24) (47.06) (38.00) 215 134 51 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total.

Table 5.17 shows out of 215 respondents who experiences low level of satisfaction the majority of them are male and nearly 27 per cent are female respondents. Among the respondents who revealed moderate satisfaction about

52 per cent and 48 per cent are male and female respondents respectively. Out of

51 respondents who expressed a high level of satisfaction the majority of the

165 respondents are female and 47 percent of the respondents are male. It can be inferred from the table that the male passengers is very much dissatisfied with the railway services in the study area when compared to female passengers.

5.13.2 AGE AND LEVEL OF SATISFACTION

The age wise distribution of the respondents and their level of satisfaction with railway services is shown in table 5.18.

TABLE 5.18

AGE AND LEVEL OF SATISFACTION

No. of Respondents Age (Years) Low Medium High Total 14 08 06 28 Less 40 (06.51) (05.97) (11.76) (07.00) 22 17 15 54 40 – 50 (10.23) (12.69) (29.41) (13.50) 73 56 17 146 50 – 60 (33.95) (41.79) (33.33) (36.50) 106 53 13 172 Above 60 (49.30) (39.55) (25.49) (43.00) 215 134 51 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total

It is understood from the table 5.18 that out of 215 respondents who expressed low levels of satisfaction nearly 50 per cent of the respondents belong to the age group of above 60 years, about 34 per cent of the respondents fall under the age group of 50-60 years. Nearly 10 per cent of the respondents belong to 40-50 years of age. The small portion of the respondents falls in the age group of less than 40 years of age. Therefore, it can be inferred from the table that the passengers above 50 years of age is highly dissatisfied with the railway services in the study area.

166 5.13.3 EDUCATIONAL QUALIFICATIONS AND LEVEL OF SATISFACTION

The educational qualifications of the respondents and their level of satisfaction with the railway service of the study unit is shown in table 5.19.

TABLE 5.19

EDUCATIONAL QUALIFICATIONS AND LEVEL OF SATISFACTION

Educational No. of Respondents Qualifications Low Medium High Total 12 08 07 27 Upto HSC (05.58) (05.97) (13.73) (06.75) 114 62 22 198 Graduate (53.02) (46.27) (43.14) (49.50) 69 57 10 136 Post Graduate (32.09) (42.54) (19.61) (34.00) 20 07 12 39 Professional (09.30) (05.22) (23.53) (09.75) 215 134 51 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total.

Table 5.19 shows that among the respondents who experienced low level of satisfaction the majority of the respondents are undergraduate, nearly 32 per cent of the respondents are postgraduate, 9 per cent and 6 per cent of the respondents are postgraduate and studied upto higher secondary education.

Therefore, it can be inferred from the table that the highly educated passengers are very much dissatisfied with railway services in the study area.

167 5.13.4 OCCUPATION AND LEVEL OF SATISFACTION

The occupation wise distribution of the respondents and their level of satisfaction are shown in table 5.20.

TABLE 5.20

OCCUPATION AND LEVEL OF SATISFACTION

No. of Respondents Occupation Low Medium High Total 108 65 09 182 Salaried (50.23) (48.51) (17.64) (45.50) 19 12 08 39 Professional (08.84) (08.96) (15.69) (09.75) 26 17 21 64 Business (12.09) (12.69) (41.18) (16.00) 45 31 09 85 Retired (20.93) (23.13) (17.65) (21.25) 17 09 04 30 Housewives (07.91) (06.72) (07.84) (07.50) 215 134 51 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total.

It is understood from the table 5.20 that out of 215 respondents who experienced low level of satisfaction the majority of them are employees followed by 21 per cent of the respondents are retired persons. About 12 per cent and 9 per cent of the respondents are business people and professionals. Nearly

08 per cent of the respondents are housewives. Therefore, it can be inferred from the table that the employees and retired persons are highly dissatisfied with railway services in the study area.

5.13.5 INCOME AND LEVEL OF SATISFACTION

The income of the respondents and their level of satisfaction with the overall railway services in the study area is analyzed in table 5.21.

168 TABLE 5.21

INCOME AND LEVEL OF SATISFACTION

No. of Respondents Annual Income ( ) Low Medium High Total 58 39 11 108 Less than ( ) 2 lakh (26.98) (29.10) (21.57) (27.00) 73 52 15 140 ( ).2 – 3 lakhs (33.95) (38.81) (29.41) (35.00) 34 22 14 70 ( ) 3 –4 lakhs (15.81) (16.41) (27.45) (17.50) 25 11 09 45 ( ) 4-5 lakhs (11.63) (08.21) (17.65) (11.25) 25 10 02 37 Above ( ) 5 lakhs (11.63) (07.46) (03.92) (09.25) 215 134 51 400 Total (100.00) (100.00) (100.00) (100.00) Source: primary data, figure in the bracket percentage of the total.

Table 5.21 shows out of 215 respondents who revealed low level of satisfaction about 34 per cent of the respondents belong to the income group of

.2 – 3 lakhs followed by 27 per cent of the respondents fall in the income group of less than 2 lakh and 16 per cent of the respondents belong to the income group of below Less than 3-4 lakhs. About 12 per cent of the respondent's annual income is above 5 lakhs. Therefore, it can be inferred from the table that the lower income passengers are highly dissatisfied with the railway services in the study area.

5.14 APPLICATION OF χ2 TEST

In order to find out whether there is any significant difference between demographic variables such as age sex, age, educational qualifications, occupation and income and their level of satisfaction with railway services, a null hypothesis is framed and tested with the help of the chi - square test.

169 Null hypothesis:

There is no significant difference between demographic variables of the respondents and their level of satisfaction with railway services.

The result is shown in table 5.22.

TABLE 5.22 χ2 TEST

Ho Variable χ2 Value Accepted / Significance Rejected Sex and level of satisfaction 24.40 Rejected **Significant Age and level of 20.80 Rejected **Significant satisfaction Educational qualification Rejected **Significant and level of satisfaction 24.50 Occupation and level of 36.00 Rejected **Significant satisfaction Income and level of Accepted Not Significant satisfaction 11.50 ** Significant both at a 5per cent level and 1per cent level.

Table 5.22 shows that there is a significant difference between sex and level of satisfaction, age and level of satisfaction, educational qualifications and level of satisfaction and occupation and level of satisfaction. However, there is no significant difference between income and level of satisfaction.

5.15 IMPACT OF PERCEPTION ON RAILQUAL FACTORS ON

PASSENGERS SATISFACTION

The service quality in railways is one of the important factors leading to passengers' satisfaction. The present study has made an attempt on analyzing the impact of perception on railqual factors on the passengers' satisfaction with the help of multiple regression analysis. The score on passenger satisfaction is treated as the dependent variable whereas the score of perception of Railqual factors is treated as independent variables. The fitted regression model is

170 Y = a + [b.sub.1][x.sub.1] + [b.sub.2][x.sub.2] + [b.sub.3][x.sub.3] +

[b.sub.4][x.sub.4] + [b.sub.5][x.sub.5] + e

Y = Score on passengers' satisfaction

[X.sub.1] = Scores of perception on Tangibles

[X.sub.2] = Scores of perception on Reliability

[X.sub.3] = Scores of perception on Assurance

[X.sub.4] = Scores of perception on Responsiveness

[X.sub.5] = Scores of perception on Empathy

[b.sub.1] ... [b.sub.5] = Regression co-efficient of independent variables a = Intercept and e = error term.

The impact of perception on railqual factors on passenger satisfaction is illustrated in Table 5.23.

Null hypothesis

The greater the service quality, the higher will be the passenger satisfaction

TABLE 5.23

SERVICE QUALITY DIMENSIONS ON PASSENGER SATISFACTION

Variables R R2 F- Statistics Tangibles and overall passenger **0.37 0.14 21.49 satisfaction Reliability and overall passenger **0.55 0.30 56.57 satisfaction Responsiveness and overall passenger **0.94 0.89 1,068.0 satisfaction Assurance and overall passenger **0.99 0.98 6,468.0 satisfaction Empathy and overall passenger **0.98 0.99 13,068.0 satisfaction Overall service quality and overall **0.95 0.91 1,334.67 passenger satisfaction. ** Significant at both 1% and 5% level

171 The significant influencing Railqual factors on passengers' satisfaction are

Assurance, Empathy, Responsiveness, Reliability and Tangibles since their respective co-efficient are significant at the five and one per cent level. The table

5.23 indicates a strong relationship between the service quality and passenger satisfaction. R2 value is indicating that service quality is a strong predictor of passenger satisfaction. The 'F' statistics reveal the validity of fitted regression models. The results of the empirical analysis indicate that if service quality is monitored carefully, this can improve passenger satisfaction.

The analysis of the passenger satisfaction reveals that passengers perceive poor satisfaction with Punctuality, Behavior of the employees towards passengers, hygienic condition, basic facilities and catering services. The study further reveals that the overall satisfaction of the passengers is poor in the Indian

Railways in the study area. The study indicates that there is a strong relationship between the service quality and passenger satisfaction and service quality is a strong predictor of passenger satisfaction. In the next chapter researcher summarizes major findings and present recommendations to increase service quality and passenger satisfaction in Indian Railways in the study area.

172 CHAPTER – VI

SUMMARY, FINDINGS, SUGGESTIONS AND CONCLUSION

6.1 SUMMARY

India is one of the largest countries in terms of its geographical size which requires efficient means for long-distance transportation. The public transport, being primary mode of transport remains as a powerful yardstick to measure the overall development of a nation. Among the various modes of transport, railway is one of the biggest modes of passenger transport in the world.

The Indian Railways, more than 150 years old, is among one of the largest and oldest systems in the world, fondly called by people as the ‗Lifeline of the

Nation‘. With an extensive network spread across the country, Indian Railways plays a key role in the social and economic development of India. Indian Railway is a principal mode of transportation for long haul freight movement in bulk, long distance passenger traffic, and mass rapid transit in suburban area. It occupies a unique position in the socioeconomic map of the country and is considered as a vehicle and barometer of growth.

The railway passenger services face long term competitive threats from airlines, luxury buses, personalized transport and improved public transport. Low cost airlines are giving stiff competition to upper class segments of the railway passenger service. Though there are competitions from various modes of transport, the railway has its own unique features and provides more services to the passengers. In order to compete with other modes of transport, it is inevitable for railways to accelerate the growth of passengers‘ origination. This can be done by providing more quality services to them. Further, the opinion of the

173 passengers towards the services provided by the Indian Railways will be quite different as they vary in socio-economic characteristics.

It is essential for the Railway Authorities to know about the opinion of the passengers regarding the services offered to them in order to make future policies and provisions. Based upon the opinion of the passengers, their satisfaction level is decided. The Indian Railways can perform well only when the passengers are satisfied with the services they obtain.

Satisfaction from service quality is usually evaluated in terms of technical quality and functional quality. Usually, customers do not have much information about the technical aspects of a service; therefore, functional quality becomes the major factor from which to form perceptions of service quality. Therefore, this study is an attempt to put forth the role of service quality in affecting passenger satisfaction in the train, with special reference to South Indian Railways.

This study throws light on the passenger satisfaction with service provided by the Indian railways. The study is restricted to Tiruchirappalli division of Southern Railways. This study will be helpful to draw up further policy for improving passenger satisfaction and act as a secondary data for further research.

A study on the service quality in train services and level of passenger satisfaction derived from in train services has been ignored by researchers in the

Indian context. Hence, an attempt is made to study passenger satisfaction with quality of services provided by the Indian Railways. In this study, the researcher adopted survey to identify the determinants of passenger satisfaction with this very important public utility in the special context of India.

174 In order to materialize this objective, the following specific objectives were considered: to study growth and progress of Indian railways, to explore the key dimensions of service quality for train services in Indian railways, to measure the level of satisfaction of the passengers about the services offered by the Indian

Railways, to analyze the impact of service quality on passenger satisfaction with train services of the Indian railways, to find results and suggest remedial measures to the Indian Railways to improve passenger satisfaction.

This study is an empirical research based on survey method. Southern

Railway's present network extends over a large area of India's Southern

Peninsula, covering the states of Tamilnadu, Kerala, Pondicherry, and a small portion of Andhra Pradesh. Serving these naturally plentiful and culturally rich southern states, the Southern Railway extends from Mangalore on the west coast and Kanniyakumari in the south to Renigunta in the North West and Gudur in the

North East. Headquartered at Chennai, the Southern Railway comprises six divisions namely Chennai, Tiruchirappalli, Madurai, Palghat, Trivandrum and

Salem.

The present study is confined to Tiruchirappalli Division of Southern

Railway zone. In the selected Tiruchirappalli Railway Division, there are eight railway junctions viz., Trichy, Viluppuram, Cuddalore, Mayiladuthurai,

Tiruvarur, Thanjavur, Virudhachalam and Needamangalam. All these junctions have been selected for the study. The universe in this case is defined as the entire population of the country and foreign nationals visiting India. Hence, a definite, statistically-sound sample was not feasible. Convenience sampling was used for the purpose of the survey, and a research sample was taken to measure passengers‘ satisfaction. Therefore, a total of 400 passengers, 50 from each

175 junction are selected as sample on the basis of convenience sampling method. It is considered to be adequate and representative for covering the all the selected junctions.

In the present study, both primary and secondary data are used. The required primary data have been collected in the course of interview with the railway passengers through survey method with a pre-tested, well structured and non-disguised questionnaire.

The required secondary data for the present study have been collected through Annual Reports of Ministry of Railways, White Paper on the Indian

Railways published by Railway Ministry, Reports of Comptroller and Audit

General of India, various issues of RBI Annual Bulletins, data from Central

Statistical Organisation, Indian Railways Year Book of various years, records from Public Relations Officer of Salem Division, various journals, periodicals and through web sites.

To analyze perception of the passengers about service quality, an undisguised structured questionnaire, SERVQUAL, by Parasuraman et al with modified attributes to suit Railway Services was used for the research. The variables include tangibles, reliability, responsiveness, assurance and empathy.

The respondents were asked to provide belief rating for services offered by Indian

Railways, using seven-point rating scale ranging from 1(low) to 7(high).

To measure level of passengers satisfaction an instrument was developed on the basis of the existing literature, observations, the pilot study, and expert opinion. The attributes related to service quality of Indian Railways—passenger satisfaction was generated with the help of reviews and exploratory study.

176 Interviews were conducted with passengers who travel frequently to identify the attributes for passenger satisfaction.

These preliminary surveys and reviews were used to generate general variables for passenger satisfaction on railway platforms. These variables were supported with the help of the literature review. These were further refined to form a questionnaire. The questionnaire included six variables to measure passenger satisfaction from service quality, including, Basic Facilities, Hygiene,

Safety and Security, Catering, Punctuality and Behavior towards Passengers.

The required primary data have been collected through a survey made on railway passengers from January 2009 to June 2012.

The study has some limitations need to be acknowledged and addressed regarding the present study. The study on its face appears to be limited as it is carried out in a single Indian transport industry, i.e. Indian Railways. Thus, its findings cannot be generalized to other transports. The study was carried out in

Tiruchirappalli Division of Southern Railway zone. Thus, its finding cannot be generalized to other area due to geographical variation. The study is purely based on the passengers‘ opinion. The researcher felt that the passengers might express a biased opinion, which may limit the validity of the study. Respondents‘ opinion may change from time to time and the responses are subject to variation depending upon the situation and attitude of the respondents at the time of the survey.

The following chapter scheme have been adopted. Chapter I describes the empirical aspect of this study, including objectives, the methodology used to collect data, sample parameters, and limitations. Chapter II provides a detailed review of earlier studies carried out in the area service quality and customer

177 satisfaction. Chapter III has been devoted to the discussion of growth and development of Indian Railways. Chapter IV deals with the perception and expectation of the quality of service provided by the Indian Railways in the study area. Chapter V analyzes the service quality and its impact on passenger satisfaction and Chapter VI contains the summary, major findings, suggestions, conclusion and the scope of future research.

6.2 FINDINGS

The major findings of the study are;

The passengers have a negative gap score for the service quality dimension of tangibles. It indicates perceptions of the passengers are more than to their expectations.

It is understood from the study that there is a gap in service quality with regard to reliability. Therefore, it can be inferred from the study that the passengers are not at all satisfied with the service quality with regard to reliability.

The negative gap score was found in the service quality dimension of assurance, therefore, it can be inferred from the study that the passengers do not think that their overall expectations are fulfilled within the service quality dimension of assurance.

The passengers have low perception about the service quality in relation to responsiveness and there is a negative gap between their expectation and perception about responsiveness. This result shows that the passengers are not at all satisfied with the quality described in the responsiveness.

The respondents have secured low perception for empathy and there is a gap between their expectations and perceptions. Therefore, it can be inferred

178 from the table the service quality with regard to empathy of the study unit is not upto the expectations of the passengers.

The study revels that the respondents have secured negative mean gap score for all five service quality dimensions such as Tangibles, Reliability,

Responsiveness, Assurance and Empathy. Therefore, it can be inferred from the study that the passengers have high expectations whereas their perceived low towards the quality of service provided by the study unit. The services provided by the Indian Railways is not upto the expectations of passengers in the study area.

The majority of the passengers perceive moderate perception about the service quality with respect to tangibles and reliability.

The majority of the passengers perceive poor service quality in respect of assurance, responsiveness and empathy.

The overall perception of the passengers indicates that the passengers perceive poor service quality provided by the Indian Railways in the study area.

There is a significant difference in the mean scores between the level of perception and the level of expectation (GAP) on the service quality dimensions, reliability, Assurance, Responsiveness and Empathy. However there is no significant difference in the mean score between level of perception and expectation on the service quality dimension of tangibles.

The results of testing the relationship between service quality features and perceived value shows that tangible, reliability, assurance, responsiveness and empathy is positively and significantly related to the overall perceived value of service quality and statistical results show that the service quality characteristics are important antecedents of perceived value in the organizational samples.

179 The male passengers perceive poor service quality than that of female passengers about the service quality of the Indian Railways in the study area.

The passengers in the age group of above 50 years perceive poor service quality of the study unit in the study area.

The highly educated passengers perceive poor service quality of the study unit in the study area.

The employees and retired employees perceive poor service quality of the study unit in the study area.

The passenger whose annual income is less than 3 lakh perceives poor service quality of the study unit in the study area.

The study shows that gender, age, educational qualification, and occupation have no significant difference in perception of the respondents about service quality, which means that the passenger are not differently perceived by females and males, age, educational qualifications, occupation. However, there is a significant difference between level of perception and income of the passengers.

It is found that the passengers not at all satisfied with the basic facilities provided by the Indian railways.

The passengers have low satisfaction with hygienic condition maintained by the Indian railways in the study area.

The study indicates that the passengers feel secure in their life and belongings in the train journey.

The passengers are moderately satisfied with the catering services provided by the Indian railways in the study area.

The passengers have low satisfaction with the right time services and information accessibility of railways information in the study area.

180 The passengers are not satisfied with the behaviour of the employees in the study area.

The respondents have secured low mean score for Basic Facilities,

Hygiene, Catering, Punctuality and Behavior towards Passengers. therefore, it can be inferred from the study that the passengers are dissatisfied with the railway services in the study area.

The passengers experience low levels of satisfaction with regard to basic facilities, hygienic conditions, punctuality and behaviour of the employees towards passengers.

The study reveals that out of 400 respondents majority of the respondents expressed low satisfaction, 34 per cent and 13 per cent of the respondents experienced moderate and high level of satisfaction with overall railway services.

Therefore, it can be inferred from the study that passengers perceive low satisfaction with railway services in the study area.

There is a significant difference in the mean scores obtained for basic facilities, hygiene, safety and security, catering, punctuality, overall satisfaction.

However, there is no significant difference in the mean scores obtained for behaviour towards passengers.

There is a significant positive correlation between overall satisfaction and basic facilities, between overall satisfaction and hygienic conditions, between overall satisfaction and Catering services, between overall satisfaction and

Punctuality and between overall satisfaction and Behavior towards Passengers.

There is no positive association between overall satisfaction and Safety and

Security.

181 The male passengers are very much dissatisfied with the railway services in the study area when compared to female passengers.

The passengers above 50 years of age are highly dissatisfied with the overall railway services in the study area.

The highly educated passengers are very much dissatisfied with overall railway services in the study area.

The employees and retired persons are highly dissatisfied with the overall railway services in the study area.

The lower income passengers are highly dissatisfied with the overall railway services in the study area.

There is a significant difference between sex and level of satisfaction, age and level of satisfaction, educational qualifications and level of satisfaction and occupation and level of satisfaction. However, there is no significant difference between income and level of satisfaction.

The significant influencing Railqual factors on passengers' satisfaction are

Assurance, Empathy, Responsiveness, Reliability and Tangibles since their respective co-efficient are statistically significant and the study indicates a strong relationship between the service quality and passenger satisfaction.

6.3 SUGGESTIONS

On the basis of the findings of the present study, the following suggestions have been made to improve the services of the Indian Railways.

The Ministry of Railways has to initiate various measures to improve the services by properly scrutinizing the grievances of the passengers regularly. The

Railways has to know the needs and expectations of the passengers with the help of effective functioning of Grievance Redressal Cell at each station.

182 In this regard, it is further suggested that contents available in the

Complaint and Suggestion Box at all the stations should be reviewed periodically in the presence of Grievance Redressal Body, members of the Consumer

Protection Council, public and other social organisations. By doing so, the passengers‘ genuine complaints can be resolved.

The findings of the study suggest that the Indian Railways need to focus more tangibles, reliability, responsiveness, assurance and empathy to enhance service quality, which could contribute to raising the level of passengers satisfaction.

The Railways Authorities should ensure that its employees are polite towards passengers while transacting their business.

The efficient 24x7 customer care is an important area and produces a direct impact on passenger satisfaction. Therefore, the Indian Railways should take efforts for best customer care services.

The Ministry of Railways must take necessary steps to increase the number of compartments during festive and summer seasons. By doing so, it will enable the passengers to utilise the services offered by the Indian Railways.

Further, steps must be taken to ensure cleanliness both at the station and on-board the train to maximise the satisfaction level of the passengers.

It is important to improve passengers awareness level. In this regard, it is suggested that the Ministry of Railways should take all possible steps to propagate the various services provided to the passengers by keeping adequate index boards and bulletin boards in all possible places like rest room, at the entrance, ticket counter, passengers‘ lounge and platform. It may enable the passengers to know about the facilities provided by the Indian Railways. It is also

183 suggested that announcements could be made quite often regarding the services provided by the Indian Railways. By doing so, the level of awareness of the passengers about the services can be improved to the fullest extent.

The ministry of railways should establish necessary infrastructure facilities at each station to improve passengers satisfaction.

The railway authorities should ensure sanitation quality in the platform,

Cleanliness of toilets and Neatness of Compartment to enhance passenger satisfaction.

The Indian Railways should adhere to punctuality of Trains because most of the passengers are dissatisfied with the punctuality of the trains.

The Indian railways should increase number of seats in the compartment and establishes sitting facilities in the platform and more number of unreserved compartments should be attached in the long distance express trains.

The railways authorities should ensure availability of good quality drinking water in the in all the stations. The railways authorities should change timing of tatkal ticket booking in consultation with consumer protection forum to facilities easy booking of tickets.

The Indian Railways should increase the number of ticket booking, reservation and enquiry counters so that passengers can avoid standing in long queues and there should be a separate inquiry counter to address the needs of the passengers who seek clarification through phones.

Basic amenities like Parking space, sitting arrangement in the platform, toilet facility, drinking water, fans and lighting should be a focus area of the

Indian Railways.

184 The railway authorities should insist it employees to respond the phone enquiry from the passengers.

The ministry of railways should give efficient training to its employees particularly employees in the ticket booking counters and enquiry counters in the area of customers relationship management to address the passengers quarries politely. Proper parking facilities should be created in each station and parking should be made by minimum rent.

Availability of good quality and quantity of refreshments at affordable prices is the key factor impacting customer perception of service quality. It may be due to the fact that while waiting on the platform, refreshments may help the passengers mitigate some of their miseries. By improving these food-related aspects, railway administration may increase satisfaction among passengers.

In addition, other factors that passengers consider important at railway platform are behavior of staff, porters, parking and quality of the information system. This implies that railway staff must be trained in such a way that their

―soft‖ skills are enhanced. Appropriate action plans may be taken to enhance basic facilities and improve security on platforms.

CONCLUSION

It is well known that offering better services is vital for the growth of the

Indian Railways. Still, Indian Railways has to offer services to enhance the level of satisfaction of the passengers. On the basis of the findings of the present study, some constructive and viable suggestions have been made. If the suggestive measurements have been considered earnestly by the Indian Railways and the

Policy Makers, it is hope that the Indian Railways will shine and bring grandeur to India in the near future.

185 SCOPE OF FURTHER RESEARCH

In order to greatly contribute to the existing body of knowledge about passenger satisfaction with transport industry, it is recommended that similar future research could be conducted in other division of Southern Railways in

Tamilnadu and other states in India and with more sample sizes. Further research is required to identify the impact of passenger satisfaction on financial performance in the transport industry as well as other service industries. Further research is required to investigate the service quality and its impact on bus transport and Air Trans port in deeper manner.

LIST OF PAPER PUBLISHED

1. ‗A Study On Individual Dimensions Of Railway Service Quality:

Findings From Indian Railway Passenger Services Through Developing

Railqual‖ (2013) Research Explorer, Volume II, Issue.5, 16-17 PP.31-32,

ISSN No. 0976-7401,

2. ―Brand Preference Ofconsumer With Reference To Tea Product In

Thanjavur District-Tamilnadu‖ (2012), Marketing, Edited By Dr.N.

Palanivelu, PP. 209-217. ISBN 978-93-80509-03-7.

3. ―E-Banking Practices and Customer Satisfaction‖ (2013), ZENITH

International Journal of Business Economics & Management Research,

ZIJBEMR, Vol. 3 (4) pp. 97-101, April (2013)

186