International Journal of Health Economics and Policy

2019; 4(2): 49-57

http://www.sciencepublishinggroup.com/j/hep
doi: 10.11648/j.hep.20190402.13
ISSN: 2578-9295 (Print); ISSN: 2578-9309 (Online)

The Impact of Transportation Service Quality on Customer

Satisfaction: Evidence from Amhara Region, Ethiopia
Gobezie Getachew
Department of Management, College of Business and Economics, Raya University, Maichew, Ethiopia

Email address:

To cite this article:

Gobezie Getachew. The Impact of Transportation Service Quality on Customer Satisfaction: Evidence from Amhara Region, Ethiopia.
International Journal of Health Economics and Policy. Vol. 4, No. 2, 2019, pp. 49-57. doi: 10.11648/j.hep.20190402.13

Received: February 21, 2019; Accepted: April 13, 2019; Published: May 15, 2019

Abstract: The main objective of this study was to assess the impact of transportation service quality on customer
satisfaction; in case of Debre Markos city. To achieve the objective of this study, data was collected through close-ended and
open-ended questionnaires from 320 respondents who are Bajaj customers. Stratified random sampling was employed to
categorize Bajaj associations into ten strata according to their beginning terminals and convenience sampling method was used
to select sample population from each strata. Primary and secondary data were used for this study and quantitative and
qualitative method also employed. This study was undertaken in one year and hence, used Cross-sectional method. This study
has used transportation service quality dimensions like reliability, security, comfort, safety and convenience as independent
variables and customer satisfaction as dependent variable. Data collected by using schedules were analyzed by using statistical
analysis such as descriptive and inferential analysis. Descriptive statistic such as frequency, percentage, mean, standard
deviation and inferential statistic such as correlation and multiple linear regressions were calculated by Statistical Package for
Social Science (SPSS) version 20. The correlation result revealed that there is a significant relationship between independent
variables and dependent variable. The result from regression analysis indicates that reliability, security, comfort, safety and
convenience have a significant effect on customer satisfaction. The finding revealed that Bajaj customers are moderately
satisfied with the current service supply. Recommendations for improvement in service quality resulting in customer
satisfaction have been made.
Keywords: Reliability, Security, Comfort, Safety, Convenience, Customer Satisfaction, Bajaj Transport

more positive the perception of passengers on the quality of

1. Background of the Study service from public transport services and vice versa.
In a highly competitive environment, virtually all Service quality has the following five dimensions; The
companies are forced to be more customers oriented. It is physical facilities, equipment, and the appearance of the staff
generally agreed that the level of customer satisfaction (Tangibles), the dependability and accuracy of the service
determines repeat sales, word-of-mouth recommendations, provider (Reliability), the ability to know and willingness to
and customer loyalty. Superior service quality has become a cater to customer needs (Responsiveness), the ability of the
major differentiator in producing customer satisfaction, and staff to install confidence and trust in the company
successful quality management is recognized as the most (Assurance) and the ability of the staff to provide a caring
powerful competitive weapon that many leading service service to customers (Empathy), [3].
organizations possess [1]. Customer satisfaction is the consumer feeling or attitude
According to [2], service quality is the assessment of the toward a service or product recently used [4]. Satisfaction
customer to the superiority or overall service excellence. implies that there is a positive feeling created in a customer
Therefore, the quality of land transport services is an overall or recipient of a service. As a matter of fact, such feeling is
passenger evaluation on the performance of public transport. induced by satisfied customer expectations and successful
The higher the public transport service performance, the supplier performance. A feeling of excitement or
dissatisfaction is seen whenever the customer expectations,
50 Gobezie Getachew: The Impact of Transportation Service Quality on Customer Satisfaction፡
Evidence from Amhara Region, Ethiopia

and received goods or services are at the same level, or the becomes an issue while using a Bajaj service in the city
goods fall higher or lower than the customer expectation [5]. especially at night. Security sometimes maybe used
Transportation is the movement of people and goods from interchangeably used with safety. If it causes life threatening
one place to the other. It is a means by which goods (raw circumstances like robbers who at night became active, it is
material, production equipment, operating inventories, semi- about the security of the passengers. By taking into account
finished goods and finished goods) as well as people are able the above major problems, the researchers organized those
to get to or be made available where they are needed for factors that affect customer’s satisfaction in transportation
commercials or non-commercial purposes, as at when services quality into five major factors: reliability, security,
desired. [6]. comfort, safety and convenience factors.
The quality of transport service can be measured by There is no pre conducted research on the study area
Reliability (providing a reliable service to the customers), regarding the impact of transportation Service quality on
convenience (accessibility of the service, waiting time, ease customer satisfaction by taking variables such as, reliability,
of payment), safety (driving standards of the drivers, the security, comfort, safety and convenience transportation
conditions of the vehicles, overloading), security (secured service quality dimensions. By taking these gaps into
voyage without robbery) and finally comfort (availability of consideration the researchers intends to assess the Impact of
good seats, ventilation systems), [7]. Transportation Service Quality on Customer Satisfaction in
As a public service provider, Debre Markos city bus has its case of Debre Markos City.
own contribution to address the transport demands of the
customers. The Road transport bureau is also facilitating 3. Objectives of the Study
private vehicle owners to provide service to the public like
Bajaj, minibus and Damas. The demand for transport service, The overall objective of this study is to assess the impact
however, has been increasing from time to time. The supply of transportation service quality on customer satisfaction፡ in
of transport services could not meet the demand of the case of Debre Markos city. The specific objectives of the
customers. So, in this study the researcher intends to examine study include:
the impact of transportation service quality on customer To examine the relationship between the transportation
satisfaction in case of Bajajs transport services in Debre service quality dimensions (reliability, convenience, safety
Markos City. security, comfort) and customer Satisfaction.
To measure the level of general satisfaction of the Bajaj
2. Statement of the Problem users.
To identify ways to improve the current problems
Being historical place and the Zonal administration of East regarding Bajaj transport service.
Gojjam Zone gives an opportunity for the city to be visited
by people from different woredas of the zone, the region and 4. Materials and Methods
from different areas of the countries for business, recreational
and other purposes. This shows high movement of people in This study adopted mixed methods design in which
the city which needs a fast transportation system. But quantitative and qualitative approaches were simultaneously
recently it is seen that the availability of current used. Of the several techniques used for data collection a
transportation could not be able to accommodate the survey was employed, as the most appropriate technique to
increasing number of population let alone for those peoples. gather data for this study. The data were obtained by using a
To accommodate the increasing number of passengers, the schedule administered to a sample; these data are
transport service is expected to expand in parallel. There are standardized, allowing easy comparison. The research design
different transportation choices to the public given by the is cross sectional when we see in time aspect. The study is
government itself and also some private vehicle owners about assessing the impacts of transportation services quality
participating in the public transportation market. on customer’s satisfaction. In order to meet this objective,
According to preliminary assessment in the study area, descriptive research was employed. Primary data was
even though different public and private vehicle owners collected through schedule; which comprises both open
participating in public transportation market, the need of the ended and close ended questions that was filled up by
public is still not satisfied with the current transportation recruited and trained enumerators under the close supervision
service. Those problems encountered in the study area are of the researchers. Secondary data was obtained from various
access indicates there is a problem to get transport service sources such as reports of bureau of trade and industry at
especially during rush hours, safety problem because mostly different levels, previous research findings, and other
the Bajaj drivers are seen driving under the influence of chat; published and unpublished materials, that have relevance
this highly endangers the life of the passengers. And also with the research topic.
even if the drivers do hold the virtues of a perfect driver The schedule were designed firstly in English version and
sometimes the state of many Bajajs in relation to the proper translated into Amharic. The translation of schedule makes
timely maintenance head lights, indicator lights, rain wipers the respondent familiar with the concept as well as easy
and the like is not that much satisfactory. Another is security understanding. Items in the questionnaire were checked for
 International Journal of Health Economics and Policy 2019; 4(2): 49-57 51

the reliability using Cronbach’s alpha. Cronbach’s alpha females (49.062 percent) out of the total 320 respondents.
values for all items under each constructs were checked, This could be attributed to the fact that majority of
minimum of 0.749 were obtained, and thus the literature respondents to the questionnaire were males. With regard to
considers this value acceptable. The survey instrument was age, those in the category of 26-35 years are the majority of
pre-tested on some bajaj transport users for clarity, and Bajaj customers in Debre Markos city that account for 138
questions were matched with the appropriate factors. respondents (43.125 percent) followed 15- 25 years, which
Modifications were made on the pre- test results. The constitutes 84 (26.25 percent) respondents. Respondents in
instrument was also checked for its validity based on expert the category of 36-45 years rank third, which contain 63
judgment. respondents (19.687 percent) followed by 35 (10.937
Variables in the study were measured by using a five- point percent) with the age category of 46 years and above. From
Likert – type scale ranging from strongly disagree (1) to the respondents of Bajaj customers, the largest number
strongly agree (5). For the analysis, Multiple Linear contains 138 (43.125%) that age between 26-35 years and
Regression Analysis method was used to test the those above the age 46 contains the least in number which
hypothesized relationships between customer’s satisfaction are 35 (10.937%).
and transport services quality. The assumptions of multiple Regarding the level of formal education, among the
regressions such as linearity, independence of residuals, and sample Bajaj user customers, 155 (48.437 percent) were first
absence of Multicollinearity [8] were checked before running degree holder, followed by 70 (21.875 percent) were hold
the regression models. diploma and 51(15.937 percent) are hold a post graduate
degree. Out of 320 overall respondents, 44 (13.75 percent)
5. Results and Discussion are with primary level of education.
As far as the occupational status of respondents are
To achieve the objective of the research, 344 sample concerned, government employees hold 146 (45.625 percent)
respondents of Bajaj users of customers were selected by of the total 320 respondents, followed by 70 respondents
using [9] infinite sample size determination formula. A total (21.875 percent) who work under private companies. The
of 344 questioners were distributed to the potential third in number of respondents that account 62 (19.375
respondents and a total of 320 were completed properly and percent) are students and the forth in number is 32 (10
were used for data interpretation. Out of this, 10 sets of percent) that are self-employed. The least number of Bajaj
questioners were considered unusable because they were not customers are those who are retired which constitute 10
properly filled by the enumerators, while the reaming 14 of (3.125 percent) of the total sample respondents. Then it is
the questioners were not filled totally because of possible to say that the majority of Bajaj taxi user customers
unwillingness of the customers. Therefore, only 320 usable are government employees.
sets of collected questioners were used for the data analysis. With regard to Marital status, 171 (53.437 percent),
The response rate was (93.0232percent). This section starts respondents were married 132 (41.25 percent) are single and
with description of sample respondents and descriptive those that are separated/divorced constitute 9 (2.812 percent)
analysis of the impacts of transportation services quality on from the total respondents of 320. Finally 8 (2.5 percent) of
customer satisfaction. It is followed by the regression the overall respondents were widowed background.
analysis with the aim of finding out the relationship between From the sample respondents 128 (40 present) of the total
the dependent and independent variables. household members are between3-4, while 100 (31.25
percent) of the household members were between 5 -7, 81
5.1. Characteristics of Sample Respondents (25.312 percent) and 11(3.437 percent) were between the
The majority of Bajaj user customers are males that category of 1-2 and above 7 respectively.
constitute 163 (50.937 percent) and the remaining 157 are
Table 1. Characteristics of Respondents.

Characteristics Items Frequency(n= 320) Percentage Cumulative Percentage

Male 163 50.937 50.937
Sex
Female 157 49.062 100.0
15-25 years 84 26.25 26.25
26-35 years 138 43.125 69.375
Age
36-45 years 63 19.687 89.062
Above 46 years 35 10.937 100
12 complete and below 44 13.75 13.75
Diploma 70 21.875 35.625
Levels of Education
Degree 155 48.437 84.062
Above degree 51 15.937 100
Student 62 19.375 19.375
Government employee 146 45.625 65
Occupation
Private employee 70 21.875 86.875
Self-employee 32 10 96.875
52 Gobezie Getachew: The Impact of Transportation Service Quality on Customer Satisfaction፡
Evidence from Amhara Region, Ethiopia

Characteristics Items Frequency(n= 320) Percentage Cumulative Percentage

Retired 10 3.125 100.0
Single 132 41.25 41.25
Married 171 53.437 94.687
Marital status
Separated/divorced 9 2.812 97.499
Widowed 8 2.5 100.0
1-2 81 25.312 25.312
3-4 128 40 65.312
Number of Family
5-7 100 31.25 96.562
Above 7 11 3.437 100.0

Source: Survey questionnaire, 2018.

Table 2. Further Characteristics of Respondents.

Characteristics Items Frequency(n= 320) Percentage Cumulative Percentage

Easily available 96 30 30
Provides fast transport system 123 38.437 68.437
Why do you choose Bajaj
It is cheap 20 6.25 74.687
transport?
It is comfortable 61 19.062 93.749
Other reasons 20 6.25 100.0
School 45 14.062 14.062
Where do you travel with a Bajaj? Work 158 49.375 63.437
Other places 117 36.562 100.0
Short distance 75 23.437 23.437
Based on the type of distance,
Medium distance 195 60.937 84.374
which type of distance do you use?
Long distance 50 15.625 100.0
1-3 years 65 20.312 20.312
For how long have you been using
4-6 years 143 44.687 64.999
Bajaj?
Above 7 years 112 35 100.0
2-3 times a day 193 60.312 60.312
How frequently do you use Bajaj
4-6 times a day 102 31.875 92.196
transport?
More than 6 times 25 7.812 100.0
1-4 minutes 36 11.25 11.25
How long do you have to wait for a 5-10 minutes 144 45 56.25
Bajaj? 11-20 minutes 63 19.687 75.937
Above 20 minutes 77 24.062 100.0

Source: Survey questionnaire, 2018.

With regard to the reasons that customers choose to use them are within the range of 1-3 years.
Bajaj transport, 123 (38.437 percent) of the respondents With regard to the frequency they traveling per day, 193
replied that they get fast transportation system, 96 (30 (60.312 percent), of the respondents were use Bajaj 2-3 times
percent) of the respondents replied that Bajaj transport per day, 102(31.875 percent), of the respondents use Bajaj 4-
services are easily available in the times they want them, 6 times per day and finally 25(7.812 percent) were use Bajaj
61(19.062 percent) of the customers replied that the reason more than 6 times a day.
they choose Bajaj is that it is comfortable, 20(6.25 percent), Regarding the waiting time, 144 (45 percent), of them
of the customers choose Bajaj because it is cheap and the rest answered they waited 5-10 minutes to get a Bajaj service, 77
20 (6.25 percent), of the respondents were gave their other of the respondents (24.062 percent) replied that they waited
reasons they use Bajaj like there is no other transportation above 20 minutes, 63 of the respondents (19.687 percent)
system better than Bajaj in Debre Markos city. answered they waited 11-20 minutes and 36 of them (11. 25
Regarding the places where customers travel, the majority percent) replied they waited 1-4 minutes to get a Bajaj
158 (49.375 percent), were used Bajaj to go to work, 117 service.
(36.562 percent) for other personal affairs and the rest 45
(14.062 percent) use Bajaj to go to school. 5.2. Descriptive Analysis of the Study Variables
With regard to the distance they travel, 195 (60.937 This part of the analysis is made based on survey schedule
percent) of the customers use Bajaj to travel medium gathered from 320 Bajaj transport users’ in Debre Markos
distance, 75 (23. 437 percent), of them use short distance and City using 5-point Likert’s scale. The study has five
50 (15.625 percent), of the customers were travel long independent variables: Reliability dimension, Security
distances. dimension, comfort, safety and Convenience dimension; and
Regarding the year they have been using Bajaj, 143 a customer’s satisfaction as a dependent variable. For a
(44.687 percent) of the respondents are within the range of 4- consistent interpretation of descriptive analysis, the following
6 years, 112 (35 percent), of the respondents are within the criterion is used.
range of the year 7 and above, the rest 65 (20.312 percent), of
 International Journal of Health Economics and Policy 2019; 4(2): 49-57 53

Table 3. Five-Scaled Likert’s Criterion.

No. Mean Range Response Options

1 [1.00, 1.80) Strongly Disagree
2 [1.80, 2.60) Disagree
3 [2.60, 3.40) Neutral
4 [3.40, 4.20) Agree
5 [4.20, 5.00] Strongly Agree

Source: [10].

Table 4. Descriptive Statistics on Reliability dimension.

Statistics
Scale Items
Mean Std. Deviation
Bajajs are available in time 2.67 1.153
Bajajs are available in every part of the city 2.42 1.063
Bajajs give an extended service (Weekends, Night times & holidays) 1.96 .972
Bajaj stations are available in the city. 3.27 1.160
There is enough number of Bajajs in the city 2.95 1.292

Source: Survey Questionnaire, 2018.

As it can be seen in table above, the item that Bajajs are of transportation service quality has a mean score of 1.96.
available in time has a mean score of 2.67 which indicates This signifies that almost all respondents disagree with the
the customer’s neutral response to the availability of Bajajs statement that all the Bajajs give an extended service i.e.
in time. They did not indicate their level of agreement or night times, weekends and holidays. This shows that Bajajs
disagreement. The second item of reliability dimension of service is limited. The fourth and the fifth item of reliability
transportation service quality has a mean score of 2.42. This dimension have a mean score of 3.27 and 2.95 respectively.
shows that Bajajs are not available in every part of the city. This means customers responded a neutral response
This may be due to the unfair allocation of routes by the city regarding the availability of Bajaj stations in the city and the
road transport bureau. The third item of reliability dimension numbers of Bajajs are enough in the city.
Table 5. Descriptive Statistics on Security dimension.

Statistics
Scale Items
Mean Std. Deviation
Bajajs are free from violent robbery during night travel 2.29 1.007
Bajaj terminals are safe from crime 2.39 1.012
The Bajaj drivers are not involved in criminal activities 2.94 1.058
Bajajs give secured service to their customers 2.74 1.088
Bajaj drivers are friendly and disciplined 2.33 1.070

Source: Survey Questionnaire, 2018.

As it can be seen from the above table, respondents’ are poorly disciplined. So customers feel in secured with the
perception level indicates in disagreement of three items. i.e., three items of security. On the other hand, the customers’
Bajajs are free from violent robbery during night travel, Bajaj responses were neutral to these items: the Bajaj drivers are
terminals are safe from crime and Bajaj drivers are friendly involved in criminal activities, and Bajajs give secured
and disciplined. These shows that there is a security problem service to their customers with mean score of 2.94 and 2.74
during night travel and also that Bajaj terminal are not safe respectively. That is, customers did not indicate their
from crime. And also customers think that the Bajaj drivers agreement or disagreement on these two items of security.
Table 6. Descriptive Statistics on Comfort dimension.

Statistics
Scale Items
Mean Std. Deviation
The Bajajs are in a good standard of cleanliness. 3.03 1.153
There are available good seats in the Bajaj. 3.28 1.207
The Bajaj seats are comfortable. 3.46 1.068
Bajajs carry as per the specified capacity. 2.77 1.189
A Bajaj journey is comfortable for any type of climate. (Sun, rain, wind). 2.77 1.192

Source: Survey Questionnaire, 2018.

As shown in the table above, comfort dimension of response on all except for item number three. For the four
transportation service quality’s perception level was assessed items customers did not indicate their disagreement and
by five measurement items, which indicates a neutral agreement. But still they use the service. The third item
54 Gobezie Getachew: The Impact of Transportation Service Quality on Customer Satisfaction፡
Evidence from Amhara Region, Ethiopia

shows customers agreement on that Bajajs seats are customers are comfortable with Bajaj seats.
comfortable with the mean score of 3.46. This implies that
Table 7. Descriptive Statistics on safety dimension.

Statistics
Scale Items
Mean Std. Deviation
The Bajajs are in a good condition (good state of repair & maintenance, good lighting at night). 2.65 1.137
The Bajaj drivers are qualified to drive. 2.64 1.083
Bajaj drivers follow traffic rules. 2.37 1.107
Bajaj drivers drive at a safe speed. 2.39 1.020
The Bajaj drivers drive without the influence of any other drugs. (Alcohol, chat). 2.35 .947

Source: Survey Questionnaire, 2018.

As can be seen from the above table, customers respond customers responses to the first two items, the Bajajs are in a
with disagreement of three items describing customer’s good condition (good state of repair & maintenance, good
perception level of Bajaj safety, i.e. Bajaj drivers follow lighting at night) and the Bajaj drivers are qualified to drive
traffic rules, Bajaj drivers drive at a safe speed and Bajaj with mean score of 2.65 and 2.64 respectively. That is
drivers drive without the influence of any other drugs customers did not indicate their level of agreement or
(Alcohol, chat). This indicates that customers don’t feel safe disagreement.
during their journey in a Bajaj. On the other hand, the
Table 8. Descriptive Statistics on Convenience dimension.

Statistics
Scale Items
Mean Std. Deviation
Bajaj prices are affordable. 3.17 1.221
Route/directions information is visible on Bajajs. 3.04 1247
Tariff information is visible on the Bajajs. 2.27 1.091
Bajajs give frequent service so that waiting time is shorter. 2.32 1.157
Bajaj stops & stations are near where customers live. 2.82 1.241

Source: Survey Questionnaire, 2018.

As shown in above table, from the above five items the other hand, customers perception level shows for the items
describing convenience dimension of Bajaj transport service that states the affordability of Bajaj prices and availability of
quality, customers respond was disagreement with two items. route information on the Bajajs with mean scores 3.17 and
These disagreements include availability of tariff information 3.04 respectively. Moreover, respondents were neutral on the
on the Bajajs and Bajajs give frequent service so that waiting item stating if Bajaj stops and stations are near where
time is shorter. This shows that Bajaj drivers don’t make the customers live with mean score of 2.82.
tariff given by the road transport bureau visible on their Bajaj The dependent variable in this study is Customer
which is against the law and must need control and the second satisfaction for Bajaj transport services users which is
item shows that customers wait longer time to get a Bajaj measured in five point likert scale and expected to be
because they don’t give frequent service to the customer. On affected by explanatory variables.
Table 9. Descriptive Statistics on Customer satisfaction.

Statistics
Scale Items
Mean Std. Deviation
I am satisfied with the price I pay for a Bajaj is affordable. 2.79 1.160
I am satisfied with every journey I made with a Bajaj. 3.22 1.151
I am satisfied that Bajajs always exceed in my expectation while offering me the service. 2.88 1.126
I am satisfied that Bajaj stops are near to my home. 2.51 1.084
I am satisfied with the Bajajs complete range of service. 2.81 1.201

Source: Survey Questionnaire, 2018.

The survey result reveals that, customer satisfaction agreement or disagreement on the four items of customer
toward Bajaj transport service quality with the four items satisfaction but still use the service. A neutral response means
response which is neutral and one item i.e. the fourth item undecided, meaning customers are neither satisfied nor
has a disagree response with mean score of 2.51. This dissatisfied. They just simply use the service because they
indicates that majority of customers responded a neutral don’t have another better choice.
response. This means they did not indicate their level of
 International Journal of Health Economics and Policy 2019; 4(2): 49-57 55

Table 10. Standards of a Bajaj service.

No. Alternative choices Frequency Percentage

1 Very good 35 10.937
2 Good 99 30.937
3 Moderate 129 40.312
4 Bad 36 11.25
5 Very bad 21 6.562

Source: Survey questionnaire, 2018.

Concerning the rate of the service provided by the Bajaj, 4. Long waiting times to get a Bajaj service
129 (40.312 percent) of the respondents answered the 5. Bajaj stops and stations are far from customers live
services given by the Bajaj are moderate, 99 (30.937 percent) 6. Undisciplined queues in Bajaj stations
answered that it is a good service, 35 (10.937 percent) of 7. Bajajs are not equally distributed in the city.
them answered very good, 36 (11.25 percent) were responded
that bad and 21 (6.562 percent) of them respond that very 5.3. Results of Inferential Statistics
bad. This shows the majority of the respondents rate Bajaj In this section, the results of inferential statistics are
services as moderate. Customers were also asked to give presented. In order to address the objectives of the study,
reason why they said “bad” or “very bad”. The main reasons Pearson’s Product Moment Correlation Coefficient and
were as follows: regression analyses were performed. With the aid of these
1. Shortage of Bajaj in the city statistical techniques, conclusions are drawn and decisions
2. Security problems during night travel are made with respect to the research hypothesis.
3. Undisciplined Bajaj drivers
Table 11. Rule of Thumb for about the Strength of Correlation of Coefficients.

Range of Coefficient Description of Strength Range of Coefficient Description of Strength

±.81 to ±1.00 Very strong
±.61 to ±.80 Strong
±.41 to ±.60 Moderate
±.21 to ±.40 Weak
±.00 to ±.20 None

Source: [11].

5.3.1. Correlation Coefficient

Table 12. The Relationship between Independent Variables and customers satisfaction.

Customer Satisfaction
Pearson Correlation .580**
Reliability Sig. (2-tailed) .000
N 320
Pearson Correlation .438**
Security Sig. (2-tailed) .000
N 320
Pearson Correlation .507**
Comfort Sig. (2-tailed) .000
N 320
Pearson Correlation .634**
Safety Sig. (2-tailed) .000
N 320
Pearson Correlation .689**
Convenience Sig. (2-tailed) .000
N 320

**. Correlation is significant at the 0.01 level (2-tailed).

Source: SPSS Output of Survey Data, 2018.

As it is clearly indicated in the table 12, the highest again have a strong correlation according to table 12. The
correlation (i.e. 689) is between convenience and customer third correlation is.580 is between reliability and customer
satisfaction which is significant at the 0.01 level (P<0.01). satisfaction which is significant at 0.01 level (P<0.01).
According to [11], from table 12, convenience and customer According to [11], they have moderate correlation between
satisfaction have a strong correlation between them. The next them. Then it is followed by comfort (.507) and security
highest correlation.634 is between safety and customer (.438). According to the rule of thumb from table 12, both
satisfaction which is significant at 0.01 level (P<0.01), which have moderate correlations, which are statistically significant
56 Gobezie Getachew: The Impact of Transportation Service Quality on Customer Satisfaction፡
Evidence from Amhara Region, Ethiopia

at 99 percent confidence level. This implies that at a 1percent dependent variable can be explained by the independent
level of significance it was found that the convenience, variables. That is, the strength of the relationship. In regression
safety, reliability, comfort and security have a significant analysis this is measured by Adjusted R Square, R². Generally,
relationship with customer satisfaction in the study area. the study tested four major assumptions such as Normality,
Multicollinearity, Linearity and Homoscedasticity that must be
5.3.2. Regression Analysis of the Study fulfilled to analyze data using multiple linear regression m o d
Multiple regression analysis is used because there are two or e l s. Since all the four assumptions were not violated, the
more independent variables that are hypothesized to influence researcher examined the data collected by the schedule using
one or more dependent variables (Kothari, 2004). Regression multiple regression models as follow.
analysis can determine how much of the variation in the
Table 13. ANOVA (Analysis of Variance).
a
ANOVA
Model Sum of Squares Df Mean Square F Sig.
Regression 163.263 5 32.653 120.920 .000b
1 Residual 95.592 354 .270
Total 258.855 359

a. Dependent Variable: customer satisfaction

b. Predictors: (Constant), Convenience, Security, Comfort, Reliability, Safety
Source: SPSS Output of Survey Data, 2018.

Table 14. Model Summary.

Std. Error of the

Model R R Square Adjusted R Square
Estimate
1 .623a .541 .521 .502965

Predictors: (Constant), Convenience, Security, Comfort, Reliability, Safety

b. Dependent Variable: customers satisfaction
Source: SPSS Output of Survey Data, 2018.

From table 14 above, “R” has a score of.623. It is a considered as independent variables and customer
multiple correlation coefficient between dependent and satisfaction is considered as dependent variable. The results
independent variables of the study. “R” represents the value show that the coefficient of multiple determinations (R2)
of the multiple correlation coefficients between the predictors is.541 and adjusted R2 is.521 indicating the regression model
and the outcome [12]. In order to analyze the impact of is good fit. It reveals that about 54.1 per cent of the variation
transportation service quality on customer satisfaction, the in dependent variable (customer’s satisfaction for bajaj
multiple linear regressions has been employed and the results transport users) is explained by the independent variables
are presented in Table 14. The transportation service quality (transport services quality dimensions).
dimensions derived from exploratory factor analysis are
Table 15. Coefficients’ Table on Multiple Regression of the Research Model Coefficientsa.

Unstandardized Coefficients Standardized Coefficients Collinearity Statistics

Model T Sig.
B Std. Error β Tolerance VIF
(Constant) -.245 .144 -1.699 .090
Reliability .276 .042 .251 6.503 .000 .699 1.430
Security .136 .052 .098 2.624 .009 .750 1.333
Comfort .118 .042 .112 2.850 .005 .674 1.484
Safety .279 .050 .247 5.565 .000 .531 1.883
Convenience .350 .047 .333 7.526 .000 .534 1.871

a. Dependent Variable: customer satisfaction

Source: SPSS Output of Survey Data, 2018.

Table 15 further shows that, all the explanatory

variables included in this study significantly explain the 6. Conclusion and Recommendation
variation of the dependent variable at 99 percent
confidence level. The standardized beta coefficient The purpose of this study was to assess the impact of
column shows the contribution that an individual variable transportation service quality on customer satisfaction using
makes to the model. Accordingly, the most contributing quality dimensions of transportation services as parameters.
factors for customer’s satisfaction in transport service As depicted by the results of descriptive statistics, customer’s
quality are Convenience with beta value of.333 followed satisfaction in the study area is affected by reliability,
by Safety with the value of .247. security, comfort, safety and convenience transportation
 International Journal of Health Economics and Policy 2019; 4(2): 49-57 57

services quality dimensions. operation so that the coverage of the service is improved and
As it is indicated by the regression analysis, all the Bajaj expanded. And also to accommodate the transport demand of
service quality dimensions have a significant effect on the public, by supplying additional Bajajs to the existing ones
customer satisfaction. The finding of the research showed should be well maintained so that passengers can reach their
that convenience dimension contributed to the largest impact destinations on time.
in gaining customer satisfaction as compared to the other It was confirmed by the customers in the survey result that
Bajaj service quality dimensions and followed by reliability the reason for the customer dissatisfaction was reflected by
and safety dimension was the influential predictor of the unkind treatment of customers by the Bajaj drives. This is
customer satisfaction. According to results of the study, an indication of frustrated and unmotivated workforce, hence
comfort dimension of Bajaj service quality was the fourth there need to have some kind of program or lecture regarding
influential factor having an impact on customer satisfaction disciplines given to those drivers. The questionnaire survey
of Bajaj users. Finally the regression result of the study result identified that there is high crowd in the Bajaj stations
showed that security dimension of Bajaj service quality which mostly leads customers to theft. So the bureau needs to
brought the least impact or contribution on to the customer have people in the stations working to enforce regulations
satisfaction of Bajaj users. about an appropriate queue. This helps passengers to get a
Based on the results of regression analysis, reliability, good service without pushing one another and also it will
security, comforts, safety and convenience the transportation avoid robbery.
services quality dimensions is the independent variables that
have statistically significant effect on customer’s satisfaction.
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