CHAPTER ONE

INRODUCTION

1.1 BACKGROUND OF THE STUDY 

 The subjective aspect of customer service depends on the conformity of the expected benefits with perceived results (Parasuraman, 2000).     Brady & Cronin (2001) identified customer satisfaction as the link between quality and post-purchase evaluation and firms quite often use customer satisfaction as measure of product or service performance. Satisfaction is either defined as an overall judgment of satisfaction or decomposed into satisfaction with performance or quality attributes (Brady and Cronin, 2001). The level of satisfaction increases when the quality of service exceeds the wants, needs and expectations of the customer. Customer satisfaction takes place in two situations. One is the result of a product or actual service meeting the customer’s expectations. The other is the result exceeds the expectations The very nature of transport makes the transport industry an ideal target for government and intergovernmental regulation. Lovelock & Wright (2002) defined customer satisfaction as a sort of emotional reaction that arose from an actual experience. According to  customer satisfaction is defined as a judgment that a product or service provided a pleasurable level of consumption-related fulfilment.

According to Agyapong (2011), from the business point of view service quality is an achievement in customer service Dissatisfaction will occur when the actual service is below the expected level and service equality is seen as an antecedent of customer satisfaction (Niveen, 2013) . Customer satisfaction is a key predictor of customer loyalty and serves as a bridge between customer loyalty and service excellence. Many organizations in the retail industry acknowledge the need of reaching high levels of customer satisfaction in order to keep loyal consumers (Anderson et al., 2014; Riorini & Widayati, 2018). This link between enjoyment and loyalty is frequently seen as obvious, and several researches have validated the beneficial association between the two (Shi et al., 2021). It is important to highlight, however, that the relationship between happiness and loyalty might vary based on market structure, industry competition, and other factors (Anderson et al., 2014).

The link between service quality and client loyalty is critical to a company’s profitability and competitiveness. According to research, service quality has an impact on customer loyalty both directly and indirectly (Fatimah et al., 2022). Similarly, the quality of customer service has a substantial influence on consumer satisfaction and loyalty to a commercial organization. Based on the description provided above, academics are interested in resolving this issue and incorporating it into business continuity customer relationship management study.

               Bus transportation is a key travelling way for global travelers. It offers linkage between destinations and transports customers for goods and service (Eden, 2005). Nowadays, every kind of people utilize transportation sector to travel anywhere. Bus transportation is a part of the transport sector services available in Cambodia. Bus transportation plays a vital role as the main transportation for all people, especially for poor and fair income families. This study is intended to learn and how to improve the customer’s satisfaction in private bus companies. The satisfaction can be characterized as an experience of fulfillment of an expected outcome (Rabiul, Mohammed S., Mohammad, & Salauddin, 2014). The quality is increasingly becoming a strategic issue in the Western world (David & Prof. Henry M., 2014), and also in Cambodian situation. Customer satisfaction is considered to be the most important factor whether it is meant for a product or a service.  In case of failure to satisfy customers, company will be replaced by others and when industries offering various services, have to be more vigilant because there is a special attitude that plays an important role in attracting and retaining the customers (Rida, Hummayoun, Sana, Faiza, & Taha, 2012). Customer expectations are beliefs about service delivery that serves as standards or reference points against which performance is judged (Veronica, Jacqueline, & Melissa-Ray, 2015). 

               In general, public transport plays a vital role to enable people to move from one place to another place especially for those who do not have their own. Public transportation connecting people to other different places. There are different types of public transport provided to the people in each country, depending on their geographical area whether it is by air, land, and water. Public transportation exists in all modes of transports such as train, car, rail transport, bus, rapid transit, airplane, trolley, taxi, ferry, auto-rickshaw, monorail, and others. Public transport is typically managed on a schedule operated on an established route and charged for each trip. Most of the countries in the world enjoy their public transports that are provided by the authorities or local government and even by private companies. Meanwhile, the growth of the population can help towards the development of public transportation and at the same time, increase the usage of public transportation (Jou & Chen, 2014). As the number of populations increase, the demand for efficient and convenient public transportation is needed and kept increasing to support daily activity.  

 In Malaysia, there are few modes of public transports available such as bus, taxi, Light Rail Transit (LRT), monorail, Express Rail Link (ERL), commuter rail, ferry, and airplane. However, not all modes of public transports are available in all places around Malaysia because it depends on geography factors, the function of the area (main cities or districts), and the number of populations in that area. For example, in Klang Valley areas (Kuala Lumpur and Selangor), there are many modes of public transport available such as LRT,

ERL, commuter rail, bus, Bus Rapid Transit (BRT), Mass Rapid Transit (MRT), and taxi to cater the demand of the people on these areas. Kuala Lumpur is the national capital and the largest city in Malaysia with a 1.77 million population and Selangor encircles the capital, Kuala Lumpur with a 6.55 million populations in 2019 (Department of Statistic Malaysia, 2020). As the city developed, the number of transportations on the road has increased. Thus, public transportation has been chosen to reduce traffic congestion. Besides, the government has introduced the Public Transport Roadmap under the Government Transformation Program which indicates that reliability and travel time, comfort and convenience, accessibility, interconnections, availability, and capacity are the key indicators for users to indicate their level of satisfaction (Noor et al., 2014).  

               There are some of the areas in Malaysia that are still not connected through road because of the scattered settlement patterns, especially in a rural area where people need to use river transportations (longboat, ferry) due to no or less proper roads connectivity to that areas. In Sarawak, only a few modes of public transport are available such as bus, taxi, limousine, airplane, and ferry due to geographic and topography factors such as undulating hills and land conditions (soft soil and peatland). Those factors are the main constraints on the building of high technology public transports as what we have seen in Peninsular Malaysia. Public bus is one of land public transport choices for the local community and to connect people within the state. Public bus services in Sarawak are provided by private companies (bus entrepreneurs) under The Sarawak Bus Transport Companies Association. In town and local areas, the public bus companies also need to compete with other public transportation providers such as taxi, rent car, E-hailing services, and unregistered public transport or illegal transport (―kereta sapu‖ or ―van sapu‖) as well. In town areas, the usage of e-hailing services (Grab, Maxim, MyCar, JomRide) and unregistered public transport are common as these public transports are convenient and flexible.

  The passenger easy to bring their belongings (capacity), flexi-time and can pick up everywhere. In the meanwhile, public bus typically managed on a schedule, operated on an established route, limit space, have specific waiting place (bus stop and bus terminal), and not frequent and timely.  For inter-district movement, public bus is a main land transportation choice as it is cheaper compared to an airplane. Even though less competition with other types of public transports like we have seen in town areas, there is competition among public bus companies to get customers. Relative service quality among competitors and evaluative process among customers’ perception will affect their business performance. As the public bus is important for the inter-district movement in Sarawak, service quality is a vital element to be considered by public bus companies to ensure customers are satisfied with their services and to attract more customers using their bus services.

           Customers or passengers will choose a public bus company that able to fulfil their needs, provide high service quality and give high satisfaction to them. High-quality public bus transport not only keep the customer to continue using public bus transport to fulfil their travel demand but also attract potential customer (Rabiul, Mohammed, Mohammed, & Salauddin, 2014). In the meanwhile, for a profit-oriented organization like public bus companies, good service quality, and higher customer satisfaction will help the organization to build a long-term profitable relationship.  There is less study measuring the service quality of public buses in Sarawak. Previously, Thian (2012) had conducted a study about the service quality of public buses in Kuching areas, the capital city of Sarawak.

 The Cape Coast-Accra route found gaps in two of the five SERVQUAL dimensions (reliability, assurance, tangibles, empathy, and responsiveness) and identified 15 attributes influencing customer satisfaction. The study emphasized the need for improvement in service quality. In the Dar es Salaam Bus Rapid Transit system revealed that tangibility, responsiveness, empathy, and reliability had a positive and significant effect on customer satisfaction, while assurance had a negative and insignificant influence. At Addis Ababa International Airport using the SERVPERF model found that all five service quality dimensions (tangibility, reliability, responsiveness, assurance, and empathy) had a positively significant effect on customer satisfaction. Reliability and tangibility were identified as areas needing improvement.

Before the coming of the colonial masters in Cameroon, there was no remarkable rout network apart from footpaths that linked small village communities. The north of Cameroon already has contact with merchants from North Africa, has a better communication system with horse that ensured the transportation of goods and pilgrims. After this period, the German arrives and annexed Cameroon. Their presence necessitated the putting in place of good route network for the evacuation of resources. For their thirty years in place, several roads, bridges and railway lines were constructed. After the departure of the German in 1945, the British and French took over and continued developing road networks in the south. Several extensions ended up in the seaport to ensure the evacuation of goods from the hinterland to the cost.

When Cameroon gained independence, two categories of roads existed which included truck A (which link up major cities) and truck Broads. From north to south, the truck roads start with a first-line (Limbe to Nkambe) from Limbe through Kumba, Mamfe, Bamenda, Kumbo to Nkambe. From Bamenda to Nkambe it continues to Wum and back to Bamenda forming what it refers to as ring road. The second line starts from Douala to kousseri, the third line start from Douala to Yaounde. A fourth line starts from Douala and ends in Ngoundere after many bends in other towns. Truck B roads simply originate from small communities (could be villages) and end up linking truck A road. Roads over the national territory cover over 34.000km. the communication density is still however low, there are still problems of road networks. Some become too bad and inaccessible during the rainy season. Some are too dusty during the dry season because they are untarred. Roads maintenance still poses a serious problem in Cameroon.

Several bus agencies that ensure interurban transport in Cameroon such a guarantee express, Moghamo express, le Kribien, Jeannot express, Nso Boyz express and so on. Transport with urban areas is facilitated by taxis and motorbikes a taxi drop cost over 500FCFA in Yaoundé and Douala and about 700FCFA in Bamenda, Bafoussam and other smaller town in general. In towns like Douala and Yaoundé, there are intra-urban buses that carry people various destination at cheap rates of over 200FCFA per destination 

Traveling agencies in Bamenda helps to ease the movement of people within and out of the Bamenda either for business purpose, tourism, in search for grana pasture. These agencies were created in different years and creating different agencies indicated that there is a need for more agencies to ease transportation there by increasing competition rate. These agencies are located in different areas around Bamenda town and most of them moving toward Nkwen, Bambui. They are all looking for competitive advantage to win over their competitors. Due to competition, many traveling agencies that do not have good marketing strategy turn to be followers in the market while others have good marketing strategies but do not sustain the advantage for long and followers take over and become the leading company. Some of these traveling agencies in Bamenda include, Moghamo express, Vatican express, Nso Boyz express, Amour Mezam express, Guarantee express, general express, Kom star express. All these agencies aim at attaining the same objectives which is transporting passengers from different regions in Cameroon and making maximum profit as possible.

  Service quality is a comparison of expectations with performance. A business with high service quality will meet customer needs whilst remaining economically competitive. This aim may be achieved by understanding and improving operational processes, identifying problems quickly and measuring customer satisfaction and other performance outcomes. Customers form service expectations from past service experiences, word of mouth and advertisements. In general, customers compare perceived service with expected service, in which case if the former fall short of the latter the customers are disappointed.

As a result, the transport industry is amongst the most highly regulated industries in the world (Mushi, 2013). revealed service quality, corporate image and customer perceived value are three significant descriptors of customer satisfaction.

Customer satisfaction is a well known and well developed concept in private sector business development and service industry research. Leveraging the research from product-based industry and adapting it to the transportation context could yield valuable insights into the use of customer satisfaction as a decision making tool?

  Gaps or shortfall may occur during service provision and the common service gaps that may exist during service provision between a firm and its customers is the gap between the company and the customer. According to Zeithaml, Parasuraman, & Berry (1990), this gap occurs when managers do not know their customers” needs. The other gaps that occurs include the difference between management’s perception of customer expectations and actual service specification which is also called the design gap. The other gap that might occur in service quality provision is the market communication gap. This gap occurs when the service provider makes promises about the services through communication tools which raises the customer’s expectations. Finally, the other gap that can occur is the customer gap which may also be called the service quality gap.

The rapid rise in the use of public transport is attributed to its many benefits, including enhancing personal and economic opportunities, reducing congestion and fuel consumption and carbon dioxide emission. Accordingly, the APTA describes public transportation as being a crucial part of the solution to the nation’s economic, energy and environmental challenges, so helping to improve quality of life. The public transport system can, therefore, be described as critical to the survival of modern society (Ali, 2010). On the other hand, the increased motorization of households combined with changes in land-use patterns and travel structure (for example, an increase in triangular trips such as home to day care to work) mean that urban populations are also increasingly reliant on the automobile. The increasing importance of public transportation, however is associated with its dual role in meeting the needs of customers and in economic and urban sustainability (Aidoo et al., 2013; Randheer et al., 2011; Ali, 2010).

The transport system is of paramount importance to all of society. Transport refers to vehicle carrying someone or something from one place to another place, usually over long distances than if on foot. Technology has introduced a variety of vehicles, including land, water, and air. However, through the technology rapidly development division vehicles have become a necessity for connecting people from one destination to another (Nkyami, 2016). According to World Bank Group report (2021). Transport is at the heart of the World Bank’s mission to fight poverty and boost shared prosperity. With the right policies and resources, transport has the power to propel economies forward, help take on climate change, and connect people to essential services like health care or education. The same report stated that COVID-19 crisis has only underscored the importance of transport: since the start of the pandemic, the sector has been instrumental in taking essential workers to their jobs, keeping the economy afloat, and kick starting global vaccines distribution. But the current situation has also exposed the vulnerabilities of the transport industry, with operators around the world facing severe disruptions and massive revenue losses. As the world emerges from the pandemic, rethinking mobility is now a priority to enhance countries’ resilience and create the conditions for a greener, more inclusive recovery.

 Reducing the climate impact of transport is among the most urgent priorities. Climate emissions from domestic and international transport contribute 20% of global GHG emissions and could increase by as much as 60% by 2050 under a business-as-usual scenario. Ambitious solutions are needed to lower the carbon footprint of existing and new transport systems. The most significant opportunities to move the sector toward climate sustainability include shifting policies and investments in the design of public transport networks, vehicle efficiency, demand management, regional development, and land use road safety is another critical challenge the transport sector must address. Road crashes claim over 1.35 million lives every year, 93% of them in developing countries. An additional 50 million road users are seriously injured annually. Road fatalities and injuries reduce the GDP of low and middle-income countries by an estimated 1% to 5%. Halving traffic fatalities could add 22% to selected countries’ per capita GDP over two decades. Sustainable transport also means inclusive transport, and the sector has a long way to go when it comes to promoting equitable access. Around the world, one billion people still live more than 2km away from an all-weather road. One in six women in the world do not look for jobs out of fear of harassment in transit (World Bank, 2021).

The ITF Transport Outlook (2021) on its partreported that the total transport activity will more than double by 2050 compared to 2015 under the trajectory reflecting current efforts. Passenger transport will increase 2.3-fold. Freight transport will grow 2.6-fold. According to this report, total demand growth is slower than projected in the previous Transport Outlook edition, when a trifold increase was expected. Future transport demand will reflect the uncertain path of recovery after the Covid-19 pandemic, which makes robust projections difficult. Continuing economic development and a growing world population will translate into more demand for transport overall it further stated that expanding sustainable transport options, especially in low-income or vulnerable communities, will be a powerful way for countries to bolster human development and social inclusion. In addition to human development outcomes, transport investment brings considerable economic returns. A transition to sustainable mobility could deliver savings of US$70 trillion by 2050, when considering full transport costs, including vehicles, fuel, operational expenses, and losses due to congestion (World Bank, 2021).

Public transport and customer satisfaction are important worldwide for city and rural travel, economic growth, and helping the environment. When we look at how happy customers are with public transport, we compare what they expect versus what they actually get. Experts say this satisfaction affects whether customers keep using the service. Things like how good the vehicles are, how professional the staff is, if buses are on time, and how they handle problems all matter to passengers.

Buses are really important for many people, especially those who can’t afford cars. Service quality isn’t the same everywhere – it depends on roads, rules, and competition. European companies like FlixBus make comfort and tech a big deal. American companies like Greyhound try to keep prices low but sometimes can’t get places on time because the country’s so big. In Asia, bus companies try to balance cheap tickets with better service. South American companies deal with too many passengers and safety issues.

African transport is split between official companies and unofficial minibuses. While most people use unofficial minibuses like Kenya’s matatus, real companies like Modern Coast try to win customers with better service and online booking. But bad roads, messy rules, and safety worries still cause problems.

In Cameroon, transport has changed from old trains and roads to a mix of official and unofficial services. The main bus companies in Bamenda are:

1. Guarantee Express – Good for city trips but has old buses
2. Moghamo Express – Cheap but crowded with lots of delays
3. Nso Boyz Express – Has different service levels but buses break down
4. Amour Mezam Express – Very cheap but not comfortable
5. Vatican Express – Comfortable but doesn’t go many places
6. Kom Star Express – Goes to small towns with basic service
7. Le Kribien – Average prices but service varies
8. General Express – Cheap but unreliable

These companies face big problems: Roads get really bad when it rains, buses carry too many people and break down, and drivers make unplanned stops that annoy passengers. Despite their growth, these agencies face systemic challenges, including:

• Poor road conditions, with 30% of routes becoming impassable during rainy seasons (World Bank, 2021).
• Overloading and frequent breakdowns, which erode passenger trust (Niveen, 2013).
• Driver misconduct, such as unscheduled stops, which violate customer expectations (Zeithaml et al., 1990).
• The Role of Tangibility in Service Quality
• Tangibility, a critical dimension of service quality, refers to the physical evidence of service delivery, including vehicles, staff appearance, and facilities (Parasuraman et al., 1988). In the context of Cameroon’s bus agencies, tangibility manifests in:
• Vehicle Condition   –        Modern,      well-maintained    buses      signal

professionalism and safety (e.g., Vatican Express’s fleet).

• Staff Uniforms and Professionalism – Agencies like Nso Boyz Express enforce uniforms to enhance credibility.
• Terminal and Waiting Areas – Clean, organized spaces (e.g., Guarantee Express terminals) improve passenger experience.

 However, many operators neglect these aspects, leading to dissatisfaction (Agyapong, 2011).

1.2 Statement of the problem

There is an increased in the level of competition in service quality between transport operators. But on the other side of the coin, there is a challenge among transport operators to seek and improve other dimensions pertaining quality of the transport service they provide in order to win customers. There is number of new companies that are formed and enter into this industry but surprisingly most of them failed to sustain in business. It is necessary to make a thorough research on how the service quality influences customer satisfaction in connection with the strategies to retain customers. Traditionally, under the competitive market environment the rival companies in an industry, transport in particular focus on adjusting the price, i.e. bus fares to lower rate (especially those enjoying cost leadership advantage) to win more market shares, increase sales and hence more profit gain. To a large extent, the bottom line indicator of performance of freight and passenger road transport is the operating cost per ton or tonne-km (or per passenger or passenger-km). Level of service aspects such as travel time, reliability, safety, comfort and security are also important, as well as environmental impact.

         Currently, most of the transport service provider’s shift into improving the service quality of their product (service) rather than relying on bus fare adjustment to improve the business performance despite the fact that the production costs will probably increase as they improve service quality. Moreover, by improving the service quality, the transport firm acquires sustainable competitive advantage over its rivals (Fimbo, 2008). 

 The concept of quality, efficiency, productivity, growth and survival pose a great challenge for the survival and growth of all corporate bodies. These growth and survival demands are further deepened by the need to attract and retain customers, as customers are the main focus of any successful business.

Business success depends on a firm’s understanding and meeting customers’ needs and demands (Agyapong, 2010). The researcher sees the need to assess the influence of service quality on customer satisfaction in passenger transport service industry aiming to highlight the extent at which the bus transport operators are aware of the requirement of service quality improvement in its entire dimensions as well as their impact on the customer satisfaction and the prosperity of their transport business especially in the competitive environment.

Cameroon’s passenger transport industry is marked by intense competition, yet service quality remains inconsistent. While agencies like Nso Boyz Express and Vatican Express invest in tangible upgrades (e.g., bus classes, uniforms), they often fail in reliability (punctuality) and responsiveness (customer service). Meanwhile, budget operators like Amour Mezam Express prioritize low fares over quality, exacerbating passenger dissatisfaction.

Nso Boyz express differentiate themselves from customers by putting on a uniform most especially those loading the buses. Their buses are differentiated in different classes that is first class, second class and each class have its take off time. Even after doing this, there is a gap between what actually passenger needs/expect as far as transport service is concerned and bus operators’ perception of passenger/consumer expects. Also, there is a gap between service quality specifications and the service quality delivered by bus operators. Due to this gap, most traveling companies’ case Nso Boyz express instead of satisfying customers on the services they paid for by taking them straight to their destinations, they drivers turn to work like taxi when travelling there by making their service quality low because customers stay longer in the bus than expected. Secondly, Nso Boyz buses turn to break down more often when customers are traveling being it the first class or second class bus there by making passengers stranded in an unknown area. Also, the drivers and the bus assistance do not have good word of mouth communication toward their customers there by scaring away customers from trusting and using their services.

1.3 Research Questions

1.3.1 Main research question

What is the effect of service quality on customer satisfaction in passenger transport industry in Bamenda ? 

1.3.2 Specific research questions

1. What is the effect of the ―Degree of Tangibility‖ on customer satisfaction in transportation companies in Bamenda?
2. What is the effect of ―Reliability‖ on customer satisfaction in transportation companies in Bamenda?

• What is the effect of ―Responsiveness‖ on customer satisfaction in transportation companies in Bamenda?

1.4 Research Objectives

1.4.1 Main Research Objective

 To assess the effect of service quality on customer satisfaction in the passenger transport industry in Bamenda case study of Nso Boyz bus service LTD.

1.4.2 Specific Objectives  Are To:

1. evaluate the effect of the ―Degree of Tangibility‖ on customer satisfaction in transportation companies in Bamenda
2. identify the effect of ―Reliability‖ on customer satisfaction in transportation companies in Bamenda.

• investigate the effect of ―Responsiveness‖ on customer satisfaction in transportation companies in Bamenda