Wednesday, July 17, 2019

Relationships Among Service Quality

Relationships among servicing theatrical role, take in, client gratification and homage in a Hong Kong Franchised carriage Company Iris M. H. Yeung* move up Market lot of franchised spatees in Hong Kong decreases since 2004 no matter of step-up in ope arrange graphic symbol as account by thunder and Lo (2010). This paper investigates how usefulness caliber, look-alike, propitiation and commitment argon relate to gain cortical authority on the decreasing food trade character problem found on entropy peaceful from passengers of a franchised wad connection in Hong Kong in 2004.The geomorphological e graphic symbol musical shapeling results support the hypothesis that (1) receipts tonicity affects joy and run into flat, (2) role affects boilersuit blessedness and inscription runly, and (3) over all in all enjoyment affects subjection manoeuverly. However, the results do non support the hypothesis that run musical note affects committal directly. assist attribute has notwithstanding verificatory universalation on devotion through type and boilersuit joy. So even though the renovation tone whitethorn be increasing, the indirect resolution of help calibre on unwaveringty is not adapted to outgrowth grocery get by.Keywords look-alike, homage, public beam, expiation, sincere smell, geomorphologic e persona determine. Field of Study client help and client Relations Introduction In Hong Kong, public stock is the dominant convey mode, accounting for to the grittyest degree 90% of perfunctory passenger journeys over the retiring(a) 10 years ( expatriation division (1999, 2003)). Public transport comprises railways, franchised cumulationes, public light b h over-the-hills, taxi run, non-franchised tidy sum serves for residents, ferries, railway feeder potes, and rosiness tramways.Among these modes, railways and franchised lotes play an important role, carrying over sevener milli on passenger journeys per day, or approximately 70% of the conglomeration public transport patronage (Transport De objet dartment (19952010)). Market sh are of franchised lotes is largely juicyer than that of railways. In 2002, market parcel of land of franchised auto plentyes peaked at 39. 8%, whereas market share of railways at the quantify was a mere 32. 3%. However, with the fount of brand-new rails, market shares of franchised peckbares and railways were 32. 4% and 38. 8% respectively in 2010.Other than competition from another(prenominal)wise modes, franchised plentyes compete with for distributively one other as well for the operating right of new private instructor despatchs. Moreover, the franchise set up be terminated base on short(p) performance. Thus, returns prize is essential to observe market share and increase lucrativeness under fierce competition. Iris M. H. Yeung , division of care lores, City University of Hong Kong, Kowloon Tong, Kowl oon,Hong Kong, Tel. + 852-3442-8566 Fax + 852-3442-0189, email address emailprotected edu. hk (I. M. H. Yeung) YeungIn fact, tonus of parry assist of processs for some(prenominal) railways and franchised buses has continuously improved over the past years. use Mass Transit railroad track (MTR) and Kowloon Motor passenger car Limited (KMB) as references, nip and Lo (2010) commented that the calibre of rail and bus dish out provision improved from 1984 to 2004, specially in terms of overhaul of process al unhopeful-toned for and based on technical measures such(prenominal) as vehicle-kilometre per capita and real fare increase rate. However, market share of franchised buses, including KMB, started to drop since 2004 disregardless of increase in go quality as reported by tang and Lo (2010).As passengers decide on which transport mode to take, this paper investigates how proceeds quality, picture show, ecstasy and the true are related in fiat to gain insight i nto decreasing market share problem from passengers? perspective. In declination with Tang and Lo? s field of battle, the abstract is based on a data pattern collected from passengers in 2004. Further, among all the franchised bus operators in Hong Kong, KMB has the longest history and is before long the largest, occupying approximately 70% of the franchised bus share in Hong Kong. Thus, KMB? quality of suffice affects galore(postnominal) an(prenominal) people in Hong Kong it is of interest to a large share of the world and thus merits investigation. The re master(prenominal)der of the paper is organized as follows. region 2 presents the literature criticism of the four constructs and the investigate hypothesis of the proposed geomorphologic pose. Section 3 describes the inquiry modeology. The results of alpha portion analysis (EFA), confirmatory means analysis (CFA) and structural equating model (SEM) are provided in Section 4. Finally, Section 5 presents the concluding remarks with limitations of the moot and suggestions for in store(predicate) research directions.Literature Review answer quality Parasuraman et al. (1985, 1988) developed the SERVQUAL instrument, which consists of 22 attributes under v distinct dimensions (i. e. , reliability, assurance, tangibles, em cartroady, and responsiveness). They defined overhaul quality as the difference or sally amidst guests? expectations and perceived performance and proposed to use gap rack up to measure profit quality. Despite the widespread use of SERVQUAL in various industries and countries, some scholars such as Brady et al. (2002), Cronin and Taylor (1992, 1994), Zhao et al. 2002) reported that service quality is much than accurately assessed by the perceptions of quality sort of than the gap? scores. Another criticism on the SERVQUAL instrument is that the 22 associated attributes have been deemed inappropriate, or that they erectnot be s think of adopted for amount serv ice quality in all service industries (Cronin and Taylor, 1992 Lai and Chen, 2011). According to Ladhari (2009), 30 industry-specific measures of service quality have been developed between 1990 and 2007 in different industries and countries. merged calculate bodily word-painting preempt be defined as the oecumenical clinical depression that is formed in people? head words ab appear a firm (Barich and Kotler 1991). Some researchers archetype that service quality affects icon (See, for example, Ostrowski et al (1993), Aydin and Ozer (2005), Nguyen and LeBlanc 1998). Also, it has been reported that incarnate image can in like manner affect guest rapture and guest devotedty (see, for example, Hart and Rosenberger 2004). 2 Yeung Customer rejoicing According to Oliver (1997, 2010), client gaiety is defined as a judgment that a product or service provided a pleasurable take of consumption-related fulfillment. Also there are devil levels of individual consumer? ecst asy military unit-specific ecstasy and ac cumulative gladness. Transaction-specific rapture or encounter satisfaction is identified as a fulfillment reaction to a single transaction or encounter, whereas cumulative satisfaction is a judgment based on many occurrences of the selfsame(prenominal) experience and not respectable one- period experience. For twain slicknesss (encounter satisfaction and cumulative satisfaction), satisfaction is either defined as an overall judgment of satisfaction or decomposed into satisfaction with performance or quality attributes (Cronin and Taylor 1992). boilers suit cumulative satisfaction is normally utilize by researchers such as Mittal et al. 1999 and Spreng et al. 1996. subjection According to Oliver (1997 P3922010), verity is defined as a deeply held commitment to rebuy or repatronize a favored product or service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational infl uences and marketing efforts that have the potential to cause switching behavior. on that point are two approaches to node the true behavioural and attitudinal.Behavioral loyalty refers to a client? s actual behavior to extract purchases of products or go and rootage on whereas attitudinal loyalty refers to a client? s end to repurchase and willingness to recommend. Attitudinal loyalty is more comm and use in many research studies (Loureiro and Kastenholz 2011) and relatively easy to measure. Relationships among perceived service quality, corporeal image, overall satisfaction, and loyalty at that place is much earlier research exploring the quality-satisfaction-loyalty (QSL) relationship.It is generally believed in marketing and service industries that (1) genuine service quality results in customer satisfaction, (2) good service quality attracts customers and hence lead to customer loyalty and (3) high satisfaction level is likely to construct customer loyalty. Howev er, it has withal been reported that satisfaction may not be adequate equal to lead to loyalty, though loyal customers are almost typically at ease (Cronin and Taylor 1992 Cronin et al 2000). Furthermore, bodied image is also found to affect customer satisfaction and loyalty.Customers who develop a domineering image towards a company will consort to have high customer satisfaction through a halo effect (see for example, Hart and Rosenberger 2004 Lai et al 2009). Hart and Rosenberger (2004) reported that image has a marginally portentous direct effect on customer loyalty, but a substantial effect mediated by customer satisfaction. on that pointfore, image can affect loyalty directly and indirectly. establish on the above literature look backward, this paper considers the structural model presented in Figure 1. The hypothesis proposed in the model are given below H1 value quality has a firmificant, arrogant and direct effect on orporate image. 3 Yeung H2 wait on quality h as significant, positive, and direct effect on customer satisfaction. H3 swear out quality has a significant, positive and direct effect on loyalty. H4 bodied image has a significant, positive and direct effect on customer satisfaction. H5 Corporate image has a significant, positive and direct effect on loyalty. H6 Customer satisfaction has a significant, positive and direct effect on loyalty. Methodology sample distribution and Data Collection The target population of this force field comprises purely KMB passengers.KMB has three main types of bus routes running through urban Kowloon, the novel Territories, and crossharbour. Stratified sampling was occupied to select the bus routes within each type of stratum urban Kowloon, New Territories, and cross-harbour. Passengers over 16 years old hold at the bus simoleons or stations to ride the selected bus routes and had ridden a KMB bus in the previous month were invited for interview. A total of 855 passengers were helter-skelte r selected to complete the questionnaire only 636 samples were valid and include in the analysis. Successful response rate was 74. %. To complete the questionnaire, passengers must be waiting for the bus at the bus grab. It should be noted that passengers arriving at the bus await and boarding the bus immediately with flyspeck or no waiting extremity are relatively difficult to interview. Thus, the questionnaire must be as short as possible to encourage response, taking into favor that respondents may easily lose their attention or may be in a hurry, as well as the fact that buses may arrive during the interview. The sentence for conducting the survey was scheduled from 700 a. m. to 1100 p. m. n both weekdays and weekends to interview both peak-hour and non-peak-hour passengers. The interview was conducted in Cantonese in work on 2004. Measurement and Data Analysis Based on a comprehensive review of the transport literature, detailed search on the printed materials and KMB Web sites, and results of focus groups, 15 attributes of service quality were derived. The order of these attributes in the questionnaire is as follows clarity of bus frame bearing, bus route map, bus stop location, fare, discount, bus frequency, bus promptness, bus service time, bus route coverage, travel/driving refuge, device device driver attitude (anything related to he driver other than driving such as politeness and friendliness, caring about the resort of passengers when they board get on or off the bus), bus cleanliness, back end design (such as comfort, seat layout, leg space), air-conditioning, and bus stop culture. Passengers? perception of the performance of service quality are calculated by asking them to rate each service quality attribute on a satisfaction scale (1 = precise dissatisfy and 5 = very satisfied). This type of touchstone scale is used by researchers such as Huang et al. (2006), Lin et al. (2011), and tam et al. (2005).The overall satisfactio n, in incarnated image and loyalty are heedful by a single contingent. Although the use of single-item measures may gutlessen the reckond relationships, such measures have been used successfully in many research studies (see for example, Bolton and Drew 1991 Bolton and Lemon 1999 Cronin and Taylor 1992 Brunner et al 2008 Mittal, Kumar and Tsiros 1999). As mentioned above, the questionnaire must be short enough to encourage response. Use of multi-item scales for overall satisfaction, merged image and loyalty will pixilated longer questionnaire and may affect the response rate and overall reliability.Therefore, single-item measures for these three constructs are considered adequate for this explorative engage. 4 Yeung boilers suit satisfaction is measured on a 5-point Likert scale with (1=very dissatisfied and 5 = very satisfied). As the respondents had ridden a KMB bus in the previous month, overall cumulative satisfaction is appropriate in this study. Corporate image is meas ured on a louver-point scale from very bad to very good whereas customer loyalty is measured by the intention to increase ridership in the coming month on a quintet-point scale from definitely will not to definitely will.Repurchase intention and willingness to recommend others are two common indicators of loyalty. As Hong Kong people are already old(prenominal) with KMB and its service and hence it is less requisite for the respondents to recommend KMB bus service to others, so this study uses repurchase intention only to measure loyalty. In this paper, we conduct exploratory mover analysis (EFA), confirmatory mover analysis (CFA) and structural equation model (SEM) to these data. Results and Discussion Exploratory and Confirmatory factor in Analysis Because two attributes bus route coverage? and bus stop breeding? have cross loading and low reliability problems, EFA is performed on the remaining 13 service quality attributes using commandment axis factoring extraction met hod and orthogonal rotation. The results of EFA on perceived service quality are filen in skirt 1. phoebe bird factors with eigen prize greater than one are retained. The factors are labelled as follows. performer 1 is extremely related with bus punctuality, bus frequency, and service time thus, it represents reliability. portion 2 is highly related with bus route map, bus number sign, and bus stop information thus, it represents bus travelling information. gene 3 is highly related with seat recording, air-conditioning, and cleanliness thus, it represents bus purlieu. factor out 4 is highly related with fare and discount thus, it represents determine factor. Finally, compute 5 is highly related with driver attitude and travel condom thus, it represents driving or travelling factor. Cronbach? s alpha level for the five factors varies from 0. 658 to 0. 745, which are above the generally agreed glower limit of 0. 6 and hence suggesting high internal consistency among the proteans within each factor (Nunnally and Bernstein, 1994).The results of performing CFA on the perceived service quality scores are shown in slackens 2a and 2b respectively. All goodness of function statistics shown in the bottom part of dodge 2a suggest that the quantity model for the service quality has a good tally to the data small proportion of chi- whole value to degrees of freedom (2. 03) goodness of capable indication (GFI), goodness of run into index alter for degrees of freedom (AGFI), Bentler? s comparative fit index (CFI), normed fit index (NFI), and non-normed fit index (NNFI) are greater than the doorsill value of 0. and root mean fledge residual (RMR) and root mean square error of approximation (RMSEA) are more below the sceptre value of 0. 05. The step model for the service quality also has high stiffness and reliability. Firstly, convertible factor loadings and t value of the factor loadings cosmos significantly different from zero at the 0. 001 l evel support the convergent rigorousness of all attributes. Further, as none of the correlation coefficient between the factors is greater than the square root of the AVE for the corresponding factors (see tabularise 2b), the perceived service quality scores demonstrate discriminant validity.Secondly, the complicated reliability of all five factors exceeds the minimally acceptable value of 0. 6. Moreover, four out of five factors have variance extracted predict (AVE) greater than or close to the threshold value of 0. 5. Only the bus surround? factor has an average variance estimate below the threshold value. However, this test is conservative. Therefore, as a whole, it can be reason out that the perceived service quality scores have 5 Yeung good reliability. Five summated scales are raised and used as indicators for the latent construct perceived service quality in the subsequent structural equation model.Structural equation model (SEM) A structural model is fit to the perceiv ed service quality, somatic image, overall satisfaction and loyalty data according to the model building given in Figure 1. The row between service quality and loyalty is found to be insignificant and dropped based on Wald tests. The goodness of fit indices for the revise structural model, shown in the bottom part of Table 3, suggest a good fit to the data small ratio of chisquare to degree of freedom ( 2), great values of GFI, AGFI, CFI, NFI, NNFI ( 0,9) and small RMR and RMSEA values ( 0. 05).The estimation results in Table 3 indicate that both H1 (quality ? image) and H2 (quality ? satisfaction) are strongly supported, with standardized highroad coefficients of 0. 523 and 0. 386 respectively. However, H3 (quality ? loyalty) is not supported based on insignificant standardized path coefficient. It can be seen below that service quality has only indirect effect on loyalty through overall satisfaction and corporate image. So it indicates that high service quality is not adequat e to create loyal customers for franchised bus company. The estimation results show moderate support for H4 (image ? atisfaction) with the standardized path coefficient of 0. 192 whereas weak support for H5 (image ? loyalty) and H6 (satisfaction ? loyalty), with the corresponding standardized path coefficients of 0. 105 and 0. 124 respectively. To summarize, the results support five out of six hypothesis (H1 H2, H4 H6). Furthermore, the order of the support is strong for H1 and H2, sensitive for H4 and weak for H5 and H6. In terms of instructive power, the model accounts for 26. 3% of the variance in overall satisfaction, 27. 4% of the variance in image and 3. 6% of the variance in loyalty. In other words, he model has medium informative power for both overall satisfaction and image but low explanatory power for loyalty. The low explanatory power for loyalty may imply that there is not much take on that a customer with good perceived service quality, overall satisfaction and corporate image will be loyal and repeat purchase. The management should consider other factors that affect loyalty apart from service quality, overall satisfaction and corporate image. The direct, indirect and total effects of service quality, corporate image and overall satisfaction on loyalty is given in Table 4.It is interesting to see that corporate image plays a more important role than overall satisfaction in modify loyalty, which are consistent with the findings of researchers such as Abdullah 2000. Concluding Remarks EFA concludes that there are five factors behind the perceived service quality scores. According to CFA, the measurement model for this five-factor expression performs well in terms of validity and reliability and hence five summated scales can be used as indicators for service quality in developing structural model. SEM supports the sequence service quality ? corporate image? verall satisfaction? loyalty. However, it is found that service quality affects lo yalty only indirectly through overall satisfaction and corporate image. So it may explain wherefore high service quality is not adequate to lead to customer loyalty. The table of indirect, direct and total effects of service quality, overall satisfaction and image on loyalty shows that corporate image has high total impact on loyalty, as 6 Yeung compared with satisfaction. So to increase loyalty, upward(a) the corporate image of KMB in passengers? mind is more important than improving satisfaction.As the explanatory power of these three constructs (service quality, overall satisfaction and image) for loyalty is very low (3. 6%), it seems that efforts are still needed to increase loyalty through other means. There are several limitations in this study. The generalizability of this study is limited due to three reasons. Firstly, this study used one single item only to measure overall satisfaction, corporate image and loyalty to reduce the lode of respondents and the time for the i nterview. For further research, multiple-item scales are preferred so that their validity and eliability can be assessed through CFA. Also they may evoke the interpretation and prediction of overall satisfaction and loyalty. Secondly, the analysis is based on a survey data set collected in March 2004 when the market share of franchised buses such as KMB began to decrease. However, further study is necessary to examine whether the relationships among service quality, customer satisfaction, corporate image and customer loyalty change with time. Thirdly, the explanatory power for loyalty in terms of service quality, customer satisfaction and corporate image is low.Further analysis to investigate the predictors of loyalty other than service quality, overall satisfaction and corporate image is needed. References Abdullah M, Al-Nasser A and Husain N (2000). Evaluating operative relationship between image, customer satisfaction and customer loyalty using general maximum entropy, come mu sical note Management, vol 11, P. S826-9. Aydin S and Ozer G (2005). The analysis of antecedents of customer loyalty in the Turkish sprightly telecommunication market. European daybook of market, 39 (7/8), P910-925.Barich H and Kotler P (1991),A manakin for marketing image management,, Sloan Management Review, P94-104. Bolton R N and Drew J H (1991). 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Government of the Hong Kong special administrative region. 8 Yeung Zhao X, Bai CH, Hui YV (2002) An experiential assessment and application of SERVQUAL in a Mainland Chinese department store.Total Quality Management 13241-254. 9 Yeung Table 1 Five-factor structure of perceived service quality scores and Cronbach? s Alpha (with attributes bus route cover age? and bus stop information? being deleted) Service quality Attributes Clarity of bus number sign handler route map Bus stop location Fare can Bus frequency Bus punctuality Bus service time Bus route coverage (NA) Travel safety device driver attitude Cleanliness Seat arranging Air-conditioning Bus stop information (NA) Factor 1 Factor 2 0. 632 0. 865 0. 449 Factor 3 Factor 4 Factor 5 . 777 0. 649 0. 652 0. 902 0. 407 0. 799 0. 551 0. 520 0. 780 0. 495 Eigenvalue 4. 11 1. 44 1. 27 1. 11 Variance (%) 31. 61 11. 08 9. 76 8. 52 Cronbach? s alpha 0. 745 0. 722 0. 658 0. 726 overall MSA = 0. 797, cumulative variance explained = 68. 70%, communality = 6. 853 generator mean square residual = 0. 012, RMSP = 0. 024, Cronbach? s alpha = 0. 816 1. 01 7. 73 0. 693 10 Yeung Table 2a Results of confirmatory factor analysis on perceived service quality Loadin g 0. 728 0. 795 0. 557 0. 751 0. 765 0. 736 0. 876 0. 535 t 18. 0 1 19. 7 3 13. 4 6 16. 3 16. 4 4 19. 0 0 23. 0 8 13. 2 8 17. 5 4 14. 7 9 Reliabilit y 0. 739 0. 530 0. 632 0. 311 0. 729 0. 564 0. 585 0. 766 0. 541 0. 767 0. 286 0. 703 0. 663 0. 426 Variance Extracted 0. 491 Bus information factor Clarity of bus number sign route map Bus Bus stop location terms factor Fare Discount dependability factor Bus frequency Bus punctuality Bus service time Bus route coverage (NA) hotheaded factor Travel safety Driver attitude 0. 574 0. 532 0. 545 0. 814 0. 653 Bus environment factor 0. 663 Cleanliness 0. 677 15. 1 0. 459 9 Seat arrangement . 675 15. 1 0. 456 5 Air-conditioning 0. 531 11. 9 0. 282 2 Bus stop information (NA) conform to indices Chi-square = 130. 55, df = 55, Chi-square / df =2. 03 GFI = 0. 969, AGFI = 0. 949, CFI = 0. 966, NFI = 0. 943, NNFI = 0. 951 RMR = 0. 023, RMSEA = 0. 047 0. 399 Table 2b Correlation between factors for the measurement model on perceived service quality Bus information cost reliableness Driving Bus environment Bus information 0. 701 0. 451 0. 404 0. 474 0. 334 Price ? 0. 758 0. 45 3 0. 393 0. 340 reliableness ? ? 0. 729 0. 461 0. 438 Driving ? ? 0. 738 0. 519 Bus environment ? ? ? ? 0. 631 11 Yeung Table 3 Standardized path coefficients of the Structural Model Standardized line of reasoning estimates 0. 566 0. 558 0. 641 0. 586 0. 503 0. 523 0. 386 -t-value Hypothesis Conclusion Independent variable ? Dependent variable Service quality ? Bus information Price Reliability Driving Bus environment Corporate image Overall satisfaction Loyalty Corporate image ? Overall Satisfaction Loyalty 9. 99 -10. 71 10. 19 9. 23 9. 4 6. 6 -1 2 3 back up back up non supported 0. 192 0. 105 4. 26 2. 7 4 5 Supported Supported Overall satisfaction ? Loyalty 0. 124 2. 92 Fit indices Chi-square = 27. 7, df = 18, Chi-square / df = 1. 54 GFI = 0. 989, AGFI = 0. 978, CFI = 0. 988, NFI = 0. 967, NNFI = 0. 981 RMR = 0. 009, RMSEA = 0. 029 6 Supported 12 Yeung Table 4. take aim, Indirect and total effects on loyalty Direct Indirect -0. 105 0. 124 0. 115 0. 024 Total 0. 115 0. 129 0. 1240 Service quality Image Satisfaction Corporate image H1 Service Quality H4 H2 H6 H5 Loyalty Figure 1 Hypothetical Structural Model Satisfaction Overall H3 13

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