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International Symposium on Mathematical Sciences and Computing Research 2013 (iSMSC 2013)

6-7 December 2013, Perak, MALAYSIA. Paper ID.:ST_02

Investigating Structural Relationship between


Passenger Satisfaction and its Antecedents
towards Passenger Loyalty for Rail
Transportation: Evidence from KTMB Komuter
*Nor Faezah Bt Mohamad Razi, **Halilah bt Harun
*Faculty of Computer and Mathematical Science,University Teknologi MARA Perak,32600 Seri Iskandar,Perak.
** Faculty of Computer and Mathematical Science,University Teknologi MARA , 40450 Shah Alam, Selangor.

ensures safety, improves air quality and reduces energy


consumption.

Background of study: In Malaysia, rail transportation has


developed tremendously. For a past few years, KTMB services
have monopolized the public transport field as a most preferable
transport mode to be access. Even though, KTMB Komuter
service is very important in urban area however, it still received
large number of complaint from its passenger. Therefore, this
study attempts to study and understand the relationship between
passenger satisfaction and its antecedents towards loyalty
simultaneously on KTMB Komuter. Purpose of study: The main
concern in this study is to understand the relationship between
passenger satisfaction and its antecedents (trust, service quality,
perceived value) and passenger loyalty and its antecedent
(switching cost) towards KTMB Komuter service. It also helps to
understand the factors that affect commuters to become loyal or
disloyal. Methodology: A questionnaires from 450 passengers
obtained from survey conducted at KL Sentral. Convenience
sampling technique was applied due to cost and time limitation.
An instrument was developed: 39-items from six different latent
construct used to measure passenger level of satisfaction and
loyalty. The study modeled using Structural Equation Modeling
(SEM). Multiple group analysis also been conducted on order to
test whether path coefficients in the Satisfaction and its
antecedents towards Loyalty Model are equivalent across
gender. Results and Conclusion: Final causal model showed
statistical significant and reasonable level of model fitness.
Results of the analysis show Trust and Service Quality are
statistically significant factor (X2/df=3.875; GFI=0.782;
NFI=0.806; TLI=0.833; CFI=0.848; RMSEA=0.080). Trust and
Service Quality showed statistically significant to Satisfaction.

Keretapi Tanah Melayu Berhad (KTMB) becomes the


main rail operator in Peninsular Malaysia with various
services such as freight service, intercity service and
commuter service. Until now KTMB Komuter has enjoyed its
position as the major contributor to KTMB. Recently, KTMB
Commuter services received increasing complaints from
passengers. Most of the complaints are from KTMB Komuter
passengers who identified delays, lack of technical
management problem, no monitoring and enforcement of the
strict use of coach of women commuters by KTMB. Even
though KTMB Komuter has to face the reality of complaints,
it still maintained its reputation as the major contributor to
revenue of Keretapi Tanah Melayu Berhad.
In Malaysia, fewer studies have been done in
understanding passenger satisfaction and loyalty on rail
transportation which are limited in terms of a more detailed
relationship between factors and loyalty. Therefore, this study
attempts to study and understand the relationship between
passenger satisfaction and its antecedents towards loyalty
simultaneously on KTMB Komuter using Structural Equation
Modeling.
II.
LITERATURE REVIEW AND
HYPOTHESES DEVELOPMENT

Keywords: Basic statistical concepts, Structural Equation Model,


Rail Transportation, Passenger Satisfaction and Loyalty

A.

Service Quality
Quality of service was one of the performance indicators
under the effectiveness category [1]. [31] suggest that quality
can be measured as the gap (the degree and the direction of the
differences) between the customers service perceptions and
their expectation. Three competing theories about the linkage
of service quality and customer satisfaction have been
discussed; (1) satisfaction is an antecedent of service quality;
(2) service quality is the predictor of satisfaction; (3) the two
constructs are interchangeable [17]. Researchers maintain that

I. INTRODUCTION
Theoretically, public transport is a system of vehicles such
as buses and trains which operate at regular times on fixed
routes and are used by the public. In addition, public transport
or public transit can also be defined as a shared passenger
transportation service which is available for use by the general
public .Some examples of public transports are buses, ferries,
trains and taxi. There are several benefits of using public
transportation such as ease traffic congestion. It saves money,

122

International Symposium on Mathematical Sciences and Computing Research 2013 (iSMSC 2013)
6-7 December 2013, Perak, MALAYSIA. Paper ID.:ST_02

perceived service quality was cognitive and thus followed by


satisfaction [30].

affecting service quality. In this study, only three dimensions


of perceived value are hypothesized to have an effect on
customer satisfaction on KTMB Komuter which are social
value, functional value and monetary value.

Several empirical studies confirmed that higher level of


service quality was related to a higher level of customer
satisfaction [5, 7]. Yet, customers perception of service
quality was the main factor predicting customer satisfaction
[41]. Therefore, in KTMB Komuter context, when commuters
perceived service quality from Komuter service is high, they
will have increased satisfaction and it will highly lead them to
become loyal passengers. Thus, we have come up with the
following hypothesis:

H4: Perceived value has a positive effect on passenger


satisfaction.
D.

Switching Cost
Switching cost can be defined as the perceived
economic and psychological costs that are associated with
changing from one alternative to another [17]. Theoretically,
switching cost represent an important avenue for better
understanding and predicting customer retention [4, 3, 13]. In
addition, [19] defined switching cost as a powerful defensive
marketing tool constraining consumers from changing to
another supplier.

H2: Service quality has a positive effect on passenger


satisfaction
H3: Service quality has a positive effect on perceived value
B.

Trust
Trust has been widely studied in many areas. According
to [26], trust can be viewed as trusting belief and trusting
intention. Generally, trust was an attributable to relationship
within and between social groups. Researchers had established
that trust was essential for building and maintaining long term
relationships [36, 38]. In developing marketing strategies,
instead of focusing on customer satisfaction and loyalty itself,
organization should also focus on customer trust since
researchers found that trust will effect satisfaction in the long
term.

Switching cost was an important factor in predicting


customer loyalty [2]. A good response can make a customer
even more loyal than one who never experiences any service
failure in the first place [27]. In this context of the study,
KTMB Komuter passengers will no longer be loyal to KTMB
Komuter if they have an intention to switch to other transport
services.
H6: Switching cost has a positive effect on passenger loyalty
E.

Customer Satisfaction and Customer Loyalty


Theoretically, customer satisfaction can be defined as
the feeling of satisfaction over a job well done in the past. [1]
expressed the definition of customer satisfaction which is the
customer perception that a vendor has met his expectation
fully, efficiently and promptly. On the other hand, satisfaction
also has been identified as the most important determinant of
favorable behavioral intentions [32].

Apart from that, trust also was one of the elements in


successful organizations. According to [35], trust can be
defined as a key element for relationship success and tends to
be related to a number of elements such as competitive
advantage and satisfaction. Therefore, in KTMB Komuter
context, if the passengers have trust on its services then it will
lead them to be satisfied and loyal.

As a whole, satisfaction is an overall affective response


to a perceived discrepancy between prior expectation and
performance after consumption [6, 34]. Thus, many
researchers have studied and tried to identify the factors which
affect customer satisfaction and loyalty in order to identify
ways to increase service performance [33, 8].

H1: Trust has a positive effect on passenger satisfaction


C.

Perceived Value
Perceived value was the variable that is always being
associated with customer satisfaction. Furthermore,
researchers also defined perceived value as positively
affecting customer satisfaction [21, 11]. Perceived value can
be describe as the entire evaluation result of products or
service by customers based on their own judgment of
obtaining and giving [28]. On the other hand, [21] explained
that perceived value was the complete evaluation of
performance and experience in the service process. It also can
be summarized as a trade-off between perceived benefits and
perceived cost [24].

Apart from studying the factors that can affect customer


satisfaction, many studies found that there is evidence that
customer satisfaction significantly affects customer loyalty in
various industries [3, 8, 13, 34]. There was also evidence that
stated customer satisfaction was closed linked with service
quality and perceived value [6, 16]. As in KTMB Komuter
context, if a customer is satisfy with KTMB Komuter services,
he will automatically be loyal to their services.

Perceived value was found by many studies to be related to


service quality [7, 11, 25]. Perceived values can analyzed with
a multidimensional scale [40, 34]. Perceived value not only
has been identified in many studies as an antecedent to
satisfaction but it also has been identified as positively

Customer loyalty can be defined as a set of behaviors


that loyal customers display, it was apparent that the behaviors
are reflecting attitudes. Many studies have been conducted
regarding customer loyalty especially in the services industry.

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International Symposium on Mathematical Sciences and Computing Research 2013 (iSMSC 2013)
6-7 December 2013, Perak, MALAYSIA. Paper ID.:ST_02

According to [36], cost of obtaining a new customer compared


to cost to maintain an old customer was high by at least five to
nine times. Therefore, if the service industry wants to reduce
the expenditures on money and time cost, it shall focus on
maintaining customers not obtaining new customers [31].
According to the level of the relationship between the personal
attitude and repurchased behavior, customer loyalty can be
divided into true loyalty, false loyalty, potential loyalty and no
loyalty [9].

Figure 1: Research Framework


Our focus in this study is to investigate structural
relationship between passenger satisfaction and its
antecedences and passenger loyalty. After reviewing several
antecedents of passenger satisfaction and passenger loyalty,
we proposed the following research framework as shown in
Figure 1.
III.

METHODOLOGY

A. Measure Development
However, [31] concludes that, loyalty can be divided into
two categories which were long term and short term loyalty.
Besides that, customer loyalty was the performance of a
consumer still choosing the same service after comparing it
with other services. The indicator that can be related to
customer loyalty was customer satisfaction. Many researchers
found that customer satisfaction will influence customer
loyalty [23]. However, there were also findings that pointed
out that service quality, perceived value and customer
satisfaction that influenced customer loyalty. Therefore, in
KTMB Komuter context, if the level of customer satisfaction
towards KTMB Komuter services is high, the probability of
the customer to become loyal to KTMB Komuter is also high.

The target population for this study is all the KTMB


Komuter passengers from two main routes which are Route
1(Tanjung Malim Sg.Gadut) and Route 2(Batu Caves-Port
Klang) by using convenience sampling technique since most
of studies in transportation field were using this sampling
technique [6, 29, 22, 21] because no information about
sampling frame. A sample of 450 passengers is taken by
using questionnaire survey where it been adapted from
previous studies in order to ensure content validity consist of
Demographic section (seven questions) and 39 items on
Section B until Section G. All the items in Section B until
Section F are measured on a seven-point Likert scale,
ranging from Strongly Disagree to Strongly Agree.

H5: Passenger satisfaction and its antecedent have a positive


effect on passenger loyalty
F.

B. Data Collection Procedure

Gender as Moderating Effect

The data collection was conducted at the KTMB


interchange station at Kuala Lumpur Station. The reason for
selecting Kuala Lumpur station as the center of data
collection is because this is where most of the passengers
from various places tend to congregate. Furthermore, it
conducted on weekdays for passengers who regularly used
the service as their transport to go to work or school and on
weekends for passengers who use the service for leisure.

Gender often appears as a moderator variable in


marketing studies [30]. Furthermore, it has been identified
frequently as moderator variable for consumer behavior [12,
20], 30] because of its possible outcome variables such as
loyalty for expecting the possible direct effect [38].
Therefore, in KTMB Komuter context, only gender will
become the moderator variables in order to observe their
impact on customer loyalty.

IV.
A.

H7: Gender has a moderating effect on the relationship


between passenger satisfaction and its antecedents,
passenger loyalty and its antecedents.
G.

DATA ANALYSIS AND RESULTS

Reliability and Validity

The reliability of the items representing a particular


constructs were evaluated using Cronbach Alpha values.
Result show that Cronbachs Alpha values ranged between
0.678 and 0.912 indicating that instrument for the study is
reliable. It is consistent with the rule of thumb by [15], who
stated that Cronbach Alpha value must exceed 0.6.

Research Framework

B.

Descriptive Analysis

Descriptive analysis on selected variables was performed


to understand the distribution of the data. The results are
tabulated in Table 4.1. According to Table 4.1, majority of the
respondents were females (61.6%), Malays (72.2%) and aged
between 15 to 24 years old (59.8%). Most of the respondents
were not married (77.6%), works in the private sector
(62.2%),categorized as regular passenger of KTMB Komuter
(69.9%) and earning less than RM 1000 monthly.

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International Symposium on Mathematical Sciences and Computing Research 2013 (iSMSC 2013)
6-7 December 2013, Perak, MALAYSIA. Paper ID.:ST_02
TABLE 4.1:
Gender

RESPONDENTS BACKGROUND
Number of
Respondents

Percentage (%)

173
277

38.4
61.6

325
32

72.2
7.1

69
24

15.3
5.3

5
269
176
5

1.1
59.8
39.1
1.1

82
280
88

18.2
62.2
19.6

311
137

69.6
30.4

152
115
93
47

42.4
25.6
21.6
10.4

100
348

22.4
77.6

TABLE 4.2: PATH ANALYSIS RESULTS FOR PASSENGER


SATISFACTION

Gender
Male
Female
Races
Malay
Chinese
Indian
Others
Age
0-14 years old
15-24 years old
25-64 years old
0-14 years old
Job Category
Government
Private
Student
Passenger Category
Regular
Non-Regular
Income
RM 0-999
RM1000RM1999
RM2000RM2999
RM3000andabove
Marital Status
Married
Single

C.

Table 4.2 shows the standardized path coefficients for Trust


(0.439), Service Quality (0.623) and Perceived Value (0.146)
on Satisfaction. Consequently, the result shows that Trust and
Service Quality in significantly influence Satisfaction whiles
the relationship between Perceived Value and Satisfaction is
not statistically significant.
TABLE 4.3: PATH ANALYSIS RESULTS FROM SERVICE QUALITY TO
PERCEIVED VALUE

Path Analysis of Research Model and Hypothesis


Testing

The result in Table 4.3 shows the path coefficient for Service
Quality on Perceived Value. The path coefficient of 0.720
implies that there is a significant positive association between
Service Quality and Perceived Value.

The hypothesized model was assessed based on the


goodness of fit criteria. Results showed that there is empirical
support for the proposed theoretical factor structure. The
process of evaluating the proposed measurement model does
not only depend on the goodness and badness fit indices.
Another method that is used to confirm the hypothesized
model is by using constructs validity and reliability.

TABLE 4.4: PATH ANALYSIS RESULTS FROM SWITCHING COST TO


PASSENGER LOYALTY

Thus, face validity of all items was valid since the items
constructed based on the previous research done on public
transportation. Majority of the measurement model able to
obtained AVE values were higher than 0.5 indicating adequate
convergent validity. The results of discriminant analysis also
valid since all AVE values were found to be greater than SIC
values for each construct. All the CR values are above 0.6
which is acceptable provided that other indicators of a models
construct validity are good.
The final fitness indices for the final model are
(X2/df=2.853;GFI=0.772;NFI=0.765;TLI=0.816;CFI=0.832;R
MSEA=0.079).

The result in Table 4.11(c) shows the path coefficient (-0.006)


for Switching Cost. In this study, Switching Cost has no
significant direct effect on Passenger Loyalty.
In determining mediating effect, Passenger Satisfaction
has found as a significant mediator variable for Trust, Service
Quality and Perceived Value to Passenger Loyalty.
Unfortunately, there was not enough evidence to support the
statement that Passenger Satisfaction acted as a mediator of
Perceived Value towards Loyalty. Meanwhile, gender had a
significant moderating effect on the relationship between Trust
and Service Quality on Satisfaction.

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International Symposium on Mathematical Sciences and Computing Research 2013 (iSMSC 2013)
6-7 December 2013, Perak, MALAYSIA. Paper ID.:ST_02

lead to passenger loyalty and re-patronage. Apart from


building passenger trust at KTMB Komuter, the organization
should also address the factors that cause dissatisfaction
among customers to retain customers and become competitive
in the public transport industry.

TABLE 4.6: RESULT OF HYPOTHESIS TESTING

Even though the study was able to answer some of


research questions in the rail transportation research, there is
also some limitation. The findings are only applicable to
KTMB Komuter services. On the other hand, the limitation of
sample size and the convenience sampling method implied
that the finding cannot be generalized to other rail transport
companies such as Monorail and Light Rail Transport (LRT).
Therefore, it is proposed replicate this study in other rail
transport companies. Along with the aspiration made by
KTMB services in order to providing the best service to its
passengers, it would be interesting if this study is extended to
compare the KTM Komuter and KTMB ETS services.

Table 4.6 shows a summary of the result of hypothesis testing


for this study. To conclude, the hypotheses Trust and Service
Quality had positive effect on Satisfaction were supported. On
the other hand, Perceived Value was found to be not
significant. Furthermore, Service Quality was found to be
positively affecting Perceived Value. The hypothesis that
Satisfaction was a significant mediating variable was
supported since there is evidence to suggest the existence of
Satisfaction as mediating variable. Besides, the study was able
to find enough evidence of linking gender as a moderating
variable. Last but not least, there was no evidence indicating
Switching Cost to have a positive effect on Passenger Loyalty
since the result in hypothesis testing was not supported.

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V.
DISCUSSION
In moving towards a developed country, one of the aspects
that have to be emphasized is public transport services. Today
throughout primary urban area in Malaysia, the public
transport sector has been monopolized by KTMB Komuter.
Thus KTMB Komuter needs to react positively to attend to
their customer needs. By taking several important factors into
account, maintaining good services will reduce the number of
complaints received especially and ultimately maintaining
loyal passengers. Undoubtly, gaining more profit in the future.
Two significant factors; service quality and trust were found to
be major factors which were of real concern to the users of
KTMB Komuter. In order to increase loyalty towards KTMB
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