ANALYSIS OF TRAIN PASSENGER RESPONSES ON PROVIDED SERVICE Case study: PT. Kereta Api Indonesia and Statens Järnvägar (SJ) AB, Sweden ABADI DWI SAPUTRA Supervisor: Lars Haglund Service Science Program Karlstad University Spring 2010 ABSTRACT Railway is one of public transport mode on land transportation. Railways, as mass public transport modes, have unique characteristics. It has large capacity, high safety level, and free from traffic jam. Those characteristics make railway a primary public transportation. In fact, even railway transportation has a lot of benefits for society life but they still faced by the problem. Service quality level of Railways transportation is still low compared with other transportation modes. At present railways operation is still colored with the delay, limited condition vehicle, and unclear train travel information that often disadvantage passengers, and many other services offered fail to attract passengers. These conditions result in decreasing the quality of services and insufficient railways operation. The objective of this research is to analyze the relationship between customer satisfaction towards provided service with the desire to do a complaint and to find the factor from service quality that has significant influences to customer satisfaction towards PT KAI services. From that data, and also comparison study between PT Kereta Api Indonesia and Statens Järnvägar (SJ) AB, Sweden, we can recommend the service standards design, service guarantee and complaint handling system that need to be adjusted with the interest of consumer. The data was collected via field survey in the station that located in Jakarta, Yogyakarta and Pekalongan. This research shows several findings. First, there are six factors of service quality attributes that have significant influences to customer satisfaction towards PT KAI services for commuter class (Information, Appearances, Service coverage, Tangible, Safety & security, and Cost), seven factors for business class (Travel time, Information, Scheduling, Comfort, Tangible, Safety & security, and Service coverage), and also seven factor for executive class (Appearances, Safety & security, Information, Comfort, Tangible, Travel time, and Cost). Second, while the commuter class passengers complain on the Safety & security attribute, for business class it is the information that influence the desire to complain. Meanwhile for executive class, passengers are mostly satisfied with the service given by PT KAI. Third, to decrease the number of complaints, some effective mechanisms to handle those complaints and learning from Statens Järnvägar (SJ) AB are necessary to take. Fourth, the service standards for PT KAI can be classified into 6 details of service, (safety and security attributes; comfort and appearances attributes; availability of information aspect attributes; tangible attributes; service coverage attributes; and the operations of train). For service guarantee design, this research focus on travel time guarantee. Learning from Statens Järnvägar (SJ) AB on Sweden service guarantee, PT KAI can adopt and use their system to increase customer satisfaction. Keyword: service standard, service guarantee, customer satisfaction, customer complaint handling, PT Kereta Api Indonesia, Statens Järnvägar (SJ) AB i TABLE OF CONTENTS Abstract ............................................................................................................. i Table of Contents .............................................................................................. ii List of Table ..................................................................................................... iv List of Figures ................................................................................................... v CHAPTER I. INTRODUCTION .............................................................. 1 1.1 Background ..................................................................................... 1 1.2 Problem Statement........................................................................… 2 1.3 Research Question ........................................................................... 4 1.4 Purpose of Research ........................................................................ 4 1.5 Limitation ........................................................................................ 5 1.6 Methodological Discussion............................................................... 5 1.6.1 Quantitative Research Approach .............................................. 5 1.6.2 Case Study Research................................................................ 6 1.6.3 Data Collection ........................................................................ 7 1.6.3.1 Primary & Secondary Data .............................................. 7 1.6.3.2 Data Analysis .................................................................. 8 1.7 Thesis Outline .................................................................................. 8 CHAPTER II. THEORETICAL BACKGROUND ..................................... 9 2.1 Public Transportation........................................................................ 9 2.2 Classification of Rail Transport services......................................... 10 2.3 Service Quality............................................................................... 11 2.4 Service Quality in Railway Transportation...................................... 17 2.5 Customer Complaint Behavior........................................................ 18 2.6 Complaint Management.................................................................. 20 2.7 Customer Satisfaction..................................................................... 21 2.8 Service Standards ........................................................................... 23 2.9 Service Guarantee........................................................................... 25 2.10 Analysis Factor............................................................................... 25 2.11 Regression Analysis ....................................................................... 26 CHAPTER III. EMPIRICAL STUDIES ..................................................... 28 3.1 PT Kereta Api Indonesia ................................................................ 28 3.1.1 Introduction ....................................................................... 28 3.1.2 Indonesian Railway Organizations...................................... 30 3.1.3 Project Description in PT Kereta Api Indonesia.................. 33 3.2 Customer Satisfaction Index in PT KAI ......................................... 39 3.3 Complaint Handling System in PT KAI ......................................... 40 3.4 Service Guarantee in PT KAI ......................................................... 42 3.5 Statens Järnvägar (SJ) AB, Sweden ............................................... 42 3.5.1 Introduction ....................................................................... 42 ii 3.5.2 Sweden Railway Organization ........................................... 43 3.5.3 Project Description in Statens Järnvägar (SJ) AB, Sweden.. 45 3.6 Customer Satisfaction Index in SJ, AB ........................................... 51 3.7 Complaint handling System in SJ, AB ............................................ 53 3.8 Service Guarantee in SJ, AB .......................................................... 54 CHAPTER IV. RESEARCH METODOLOGY .......................................... 56 4.1 Research Flowchart ....................................................................... 56 4.2 Research Design & Questionnaire .................................................. 57 4.3 Respondent .................................................................................... 57 4.4 Sample Size ................................................................................... 57 4.5 Study Area ..................................................................................... 58 4.6 Research Tool ................................................................................ 58 4.7 Procedure ...................................................................................... 58 4.8 Type of Data .................................................................................. 59 4.9 Data Analysis ................................................................................ 59 4.10 Validity & Reliability .................................................................... 60 CHAPTER V. ANALYSIS & RECOMENDATION .................................. 61 5.1 Research Result .............................................................................. 61 5.1.1 Steps of Analysis .................................................................. 61 5.1.2 Demographic Data Analysis ................................................. 62 5.2 Service Performance Analysis ........................................................ 65 5.3 Customer Satisfaction Analysis ...................................................... 68 5.3.1 Analysis Factor...................................................................... 69 5.3.2 Interpretation of Factor ......................................................... 75 5.3.3 Comparison of Factor ........................................................... 79 5.4 Customer Complaint Analysis ........................................................ 80 5.5 Recommendation ............................................................................ 85