Customer loyalty in the public transportation context

Public transportation agencies, much like other service industries, have a constant churn of their customer base. New customers are entering and current customers are defecting every day. Traditionally, efforts to increase this customer base have focused on attracting more first-time users. However, preventing the loss of customers to competitive modes, such as the auto, has many added benefits that are not often realized. Loyal customers provide recommendations to others, increase and diversify their use of the service, and do not require the acquisition costs associated with new customers. This study aims to develop a strategy to identify the key drivers of customer loyalty to public transportation agencies, using the Chicago Transit Authority (CTA) as a case study. Once these influencing factors have been identified for the general population, loyalty differences between key market segments can be tested and analyzed. Based on these results, specific areas of service provision can be targeted for improvement and marketing campaigns can be developed so that customer segments can be targeted based on which areas are most important to them. Factor analysis and structural equation modeling were used to create a customer loyalty model for the CTA. Factors identified as contributing to a rider's loyalty were problem experience, perceptions of service quality', service value, perceptions of CTA, and customer satisfaction.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2010

Author dc:creator

• Webb, Valerie (Valerie Nichole)

Advisor dc:contributor.advisor

• Jinhua Zhao and Nigel H.M. Wilson.

• Civil and Environmental Engineering.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/58083

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/58083