Public Transport
Public Transport
MARY’S UNIVERSITY
UNIVERSITY
FACULTY OF BUSINESS
BUSINESS
DEPARTMENT OF MANA
MANAGEMENT
ASSESS
ASSESSMENT
SSMENT OF PUBLIC TRANSPORT
COUNTRY BUSES
By
DANIEL ZEWDU
JUNE 2014
ADDIS ABEBA
ASSESS
ASSESSMENT
SSMENT OF PUBLIC TRANSPORT
A SENIOR RESE
RESEARCH SUBMITTED
TO THE DEPARTMENT OF MANAGEMENT
FACULTY OF BUSINESS
ST. MARY’S UNIVE
UNIVERSITY
RSITY
By
DANIEL ZEWDU
JUNE 2014
ADDIS ABEBA
ASSESSMENT
ASSESSMENT OF PUBLIC TRANSPORT
By
DANIEL ZEWDU
FACULUTY OF BUSINESS
BUSINESS
DEPARTMENT OF MANAGEMENT
ADVISORSIGNATURE
INTERNAL EXAMINERSIGNATURE
EXTERNAL EXAMINERSIGNATURE
ACKNOWLEDGEMENTS
ACKNOWLEDGEMENTS
I am deeply grateful to ATO MESFIN TESFAYE not only for his advice but
also for his willingness to consult me at any point of time,and his patience.
Thanks my Families.
I
TABLE OF CONTENTS
CONTENTSPAGES
Acknowledgement ……………………………………………………………………...I
Chapter I
Introduction ………………………………………………………………….......1
Chapter II
Chapter III
4.2 Conclusion…….………………..…….……………….………………..……....33
4.3 Recommendation……………….………………..…….….………..…….……35
Bibliography
List of Tables
III
TABLESPage
Table1: General Characteristics of respondents …….............................................17
Table 10:
10: The location of bus terminal …….............................................................23
Table 11:
11: Levels assigned to the buses ……...........................................................23
Table 12:
12: Remedial action taken when the bus collapsed ……..............................24
Table 13: The tariff charged against luggage’s and transportation …….................24
Table 14:
14: Safety of the buses ……............................................................................25
Table 15:
15: The service offered to customers ……......................................................25
Table 16:
16: 1st aid kit to give service in case of emergency ……........................26
Table 17:
17:The bus owners provide basic necessary goods ……...........................26
Table 18:
18:The convenience of the time the buses leave ……...............................27
Table 19:
19:Sensitivity of the bus employees to passengers ……............................27
Table 20:
20: Entertainment service to reduce boring effect of long journey................28
CHAPTER 1
IV
INTRODUCTION
As customers, we use service every day. Turning on a light, listing to the radio
taking on the telephone, taking a bus, getting a haircut or sending clothes to
the cleaners are all examples of service consumption at the individual level..
The higher institution at which we are studying is itself a complex service
organization. In addition to educational service, the facilities at today colleges
and university usually comprise libraries, cafeterias counseling services and
placement offices, a bookstore, photo copying services, telephones and internet
connection on a wide array of service because of the pervasiveness of
Transport “solutions” to Transport problem can be have major influences upon
people’s lives. These influences are reflected in the constraints which society
currently places on the development and evaluation of road proposals; that is ,
generally they must be analytically based, economically sound, socially credible
,environmentally sensitive, politically acceptable and inquiry proof. Meeting these
needs has resulted in the development in relatively recent times of a new
professional area, transport engineering” (Bell, etal, 2006:210-11) .
1
Humans’ first means of transport were walking and swimming .The domestication
of animals introduces a new way to lay the burden of Transport on more
powerful creatures, allowing heavier loads to be hauled, or humans to ride the
animals for higher speed and duration Inventions such as the wheel and sled
helped make animals transport more efficient through the introduction of
vehicles.
In 1968 G.C the trip routes also determined by the government body. It was not
possible to travel with the chosen route.
Before the Derg regime (1975-1991) the public transport was owned by private
companies there was competition between companies to provide better services
in all aspect to attract their customer.
But during Derg regime which is the socialist system, private buses (property)
transferred to government property.
That socialist political system Transport management had made the public
Transport backward and became poorer and poorer from time to time.
In 1991 G.C after the Derg regime over thrown and the EPRDF controlled the
country, the Transport industry tried to revive, so individuals has come to join
the public Transport industry by forming associations.
Through the Time the Transport Associations are increased and private bus
owners’ Ltd companies also starts emerging.
2
Number of associations and companies of cross-country long distance buses in
Ethiopia are:-
Even though the transport association is increased in number, the number of buses
is not increasing in comparison to the diversification of the roads, the population
growth and overall economic growth of the country.
The transport service of fuel trucks has improved by far better than public transport
in Ethiopia. Even though there is a slight growth in public transport, but in
.
comparison to other systems, vis-à-vis the population growth and economic growth, it
is difficult to say there is growth.
3
To improve the public transport sector the regulatory body and public transport
To upgrade the trip schedule with the bus travel during schools opening
and closing
To replace buses which served long years?
Therefore all the above realities initiate the student researcher to explore
4
1.2.1 Research Questions
To address the above stated problems the student researcher designed the
following basic questions
5
1.4 Significance of the study
Efficient long distance public transport service quality can be described as
delivery of excellent or superior service relative to customer expectation. Efficient
service is not only significant to public Transport of cross country long distances
buses, but is a crucial factor to the entire Transport industry in particular and
the economic development of the country in general.
• The study provides relevant feed back to the public transport associations
in order to improve the service.
• The study service as the base for other researcher who would like to
study the same issue in wider range.
• The study enables the researcher to acquire basic experience and
knowledge about long distance public transportservice .
The study will be conducted in Addis Ababa main bus station due to time
constraints and centralized transport system
6
Researcher found it as the best method to collect information that describes the
problem and the research as it exists.
1.6.2Population
1.6.2Population and Sampling technique:
The target populations of the study werehigh ranking officials of the regulatory
body, frequent customers and top management (employees) of associations who
directly interact with long distance public transport sector. Questions were
distributed for six association’s managers, operation heads, finance heads,
program officers and dispatching officers The total size is 30. Since the size of
the population is manageable all the population are used as respondents and
hence census is used a sampling technique. Concerning high ranking officials of
regulated body the student’s researcher conducted interview for five high ranking
officials using judgmental sampling technique because researcher believed that
they are well informed for the issue raised. While for frequent customers the
student used 30% of the total 159 frequent customers which is about 48
customers using accidental sampling technique.
To make the study fruitful the research used both primary and secondary source
of data. The primary data was collected from primary sources including 48
customers (passengers), 5 regulatory body officials’ and 30 employs of
associations.
The secondary data include all related documents prepared for some other
purpose.
To gather relevant data for this study, the researcherprepared both open ended,
close ended questionnaires and interview check list. In order to
7
Triangulate information obtained through questioners and Interview conducted
with officials of regulatory body. The secondary data collected from company’s
annual report, manuals and other related data.
The data which was collected using questionnaires are quantitative and analyzed
using descriptive statistics like frequencies and percentages. On the other hand,
qualitative data collected through interview and document review analyzed
qualitatively in a synchronized ways
There were some factors that influenced the research not carried out as
expected, some of these factors were the respondents were not wiling’s to fill
the questionnaires, when they filled the questionnaire some questions did not
fully answered, moreover, the questionnaire did not returned on time .regarding
of the availability of comprehensive and relevant data and literature is another
problem. Despite all these limitations, the researcher has tried to demonstrate
that the problem and research questions for this particular study were worth
answering.
The study has incorporated 4 chapters. The first chapter includes introduction
part which consists of back ground of the study, statement of the problems,
research questions, and the objective of the study, the research designed and
methodology. The second chapter is review of related literature and 3rd chapter
Data analysis, presentation and interpretation. The 4th chapter includes summary
CHAPTER 2
and conclusion and recommendation.
8
CHAPTER 2
LITERATURE REVIEW
2.2
2.2 Ownership and regulation
9
Operator has control of whole area. This was broadly the position in Britain until
1985, and is still the position in many countries. This may be referred to as a
planned approach to the provision of public transport services (Bell ,etal
,2006:210).
2.3
2.3 Augmenting Public transport
- The inability of public transport operator to keep pace with the increasing
demand.
- The deteriorate quality of service arising out of continued losses and
- In adequate capital generation for capacity augmentation.
- Another problem has been the relatively little concern for consumer
satisfaction. In most cities government owned agencies operate and manage
public transport services. Given the virtualmonopoly that public sector services
providers enjoy, service planning has been largely dominated by the dictates
of operating convenience rather than by consumer convenience. With fares
and tariffs not linked with cost of operation, there is little incentive for the
service providers to improve efficiency. In addition being public center
concerns, the emphasis on commercial orientation is limited, as a result,
rider- ship changes and costs operation are not concerns of management.
Thus, a change in the incentive regime is necessary to ensure attention to
consumer satisfaction.
2.4
2.4 Customer service
Customer service is the way logistics interface with marketing and such represents the
output of the firm’s entire logistics effort. The level of customer service provided has a
direct impact on the company’s market share, costs and by implication, its profitability.
10
Yet despite the importanceof customer service to the overall success of the
organizations marketing strategy, managers often don’t understand the crucial
role that logistics plays in keeping customers happy (Gourdin ,2003 :40-41).
2.5
2.5 Importance of customer service
There are few companies that do not recognize the importance of the provision
of good customer service. But, why is it so important? There are many different
answers to this question, Ranging of customers’ Expectations to the similarity of
the basic products that are offered .one way of considering customer service is
to differentiation between the core product itself and the service elements related
to the product(Rushton 2006:34).
2.6
2.6 Elements of customer service
Dependability: - in the form of product availability; that is, the items is on the
shelf when the customers want to purchase it. It may also refer to such things
as meeting promised delivery dates, Filling order correctly, and providing
accurate billing statements. The firm can be relied upon to do what it claims it
will do.
Time: - how long it takes for the goods to be delivered after the order has
been placed. The emphasis today in many developed markets is on speed, the
faster the better.
Convenience: - deals with things like ordering accessibility, hours for pickup and
delivery, frequency of sales calls, technical assistance, and after sales services.
Communication:
Communication:- encompasses activates like cargo tracing answering customers
inquires, billing and information management. Federal express and ups both
relay on extensive proprietary communication systems that allow carrier
11
Personnel to tell shipper exactly where a given piece of cargo is in
transportation process.
. Honesty: implies that the company keeps the promise it makes to its
customers. Pledging more than can be delivered virtually guarantees that
customer will be dissatisfied. So managers must be careful not to overstate
customer’s service levels when there may be considerable pressure to do so
(Gourdin,2003 ;41-42).
2.8
2.8 The importance of satisfied, loyal customers
Without satisfied and loyal customers, a company slowly dies. It may not detect
this slow death form customer complaints, because customer’s may be silently
defecting rather than taking the effort to complain to the dying company.
The case for totally satisfying and delighting target customers is clear. Numerous
studies have established strong links between efforts to delight customers, and
company profitability and stock price, (schieffer 2005:185).
12
Barriers
2.9 to Quality customer Service
Controllable Factors:
Factors:
Lack of customer segmentation: some firms offer all customers the same level
of service. This strategy could result from a conscious decision by management,
but it may also reflect, a lack of appreciation for customers’ needs. The fact is
that all customers should not necessarily receive the same service .Any
organization has a small number of customers that Generate a Large share of
corporate revenues. In-fact, praetor’s law (also known as the 80/20 rule) states
that 80 percent of the firm’s profits come from 20 percent of its customers.
Management would probably do virtually anything to keep these people happy.
Most buyers will not fall in to this category; management want to satisfy this
group as well, but they simply do not enough to warrant the higher service
levels provided to the company’s most important customers. When only one
level of service is offered, it often tends to be high.
13
Order to satisfy the customers. Workers must thoroughly understand what
management expects of them so that customers can be treated accordingly.
Uncontrollable factors:
present, the number and behavior of other can impact one’s level of
satisfactions.
14
2.9.1
2.9.1 Improving Customer Service Performance
There are several things managers can do to improve the customer service
offered by their firm.
management learn what services their customers most value and how
much are willing to pay for those amenities. In variably , this sort
research will show that all customers don’t seek the same thing .These
efforts will, in turn ,give managers the information needed to conduct an
ABC analysis where by customers can be categorized based upon the
profit they provide to the firm .Customer service strategies can then be
developed meet these specific needs.
15
CHAPTER 3
didnot return timely. Even though they do not respond quickly analysis of the
primary data was therefore made based on the information acquired late.
Following this, the gathered data were edited, coded, classified, analyzed and
carefully interpreted.
16
Table 1 General
General characteristic of respondents
Variables Respondents
No No Percentage
Gender
1 Female 37 73
Male 21 26.9
Age
18- 25 years 5 6.4
3 Diploma 38 48.7
Degree 15 19.2
Master degree
Length of service
Less than 1 year 3 10
4 1- 3 years 4 13.3
4-5 years 8 26.6
More than 5 years 15 50
Total 78 100 %
From the above table 1 item 1 regarding gender composition57(73%) are female
and 21 (26.9%) of the respondents are male. it can be seen that equally
distribution of gender has not been given.
With regard to age of respondents 5(6.4%) fall within the range of 18 to 25,
while31 (39.7%) fall between 26-32,26(33.3%) fall within 33 to 39,13(16.6%) fall
within 40 to 46 and the rest 3.8 % fall above 46. From this it can be seen
that most respondents are energetic and easily capable to adapt with any types
of change in long distance public transport
17 sector.
Regarding length of service of employees 3 (10%) serve less than one year,4
(13.3%) of employees serve less than 3 years,8 (26.6%) employees served than
5 years and 15 (50%) of employees served more than 5 years.
From the above it can be deducted that most workers stay in the company for
the long period. As a result they can identify the problem associated with public
transport service.
18
Regard to the existing long distance public transport service in case of cross
country buses and replied as follows 54% , 31% and 14% replied very poor ,
poor and moderate respectively . On the other hand data obtained through
interview reveals that the accessibility of the existing public transport is not
good.
From these one can infer that majority of the respondents respond poor about
the existing long public transport service.
24
18
Table 3 the growth of public Transport
Strongly Agree
Agree 3 9.4
Moderate 4 14
Disagree 7 21.9
Strongly Disagree 16 52
Total 30 100%
100
Source of data collected through the questionnaire
As shown in the above table questions were asked with regard to the growth of
public transport in comparison to other transport system and employees replied
as follows 52% 22%,14% and 10% strongly disagree, disagree, moderate and
agree respectively about the growth of public transport in comparison to other
transport system. On the other hand interview has been conducted with high
ranking officials of regulatory body and the data gathered through interview show
that the growth of public transport system is not good.
20
21
Strongly Agree
Agree
Moderate 4 13
Disagree 4 13
Strongly Disagree 22 73
Total 30 100 %
Source of data collected through the questionnaire
Table 8 indicates that 73% of the respondents strongly disagree by regulatory
body commitment to improve the public transport system, 13%of the respondents
disagree from this analysis. Therefore the researcherinferthat respondents
disagree about the regulatory body commitment to improve the public transport
system.
Strongly Agree
Agree 3 9.4
Moderate 3 9.4 6 12
Disagree 10 34.4 13 28.1
Strongly Disagree 14 49.9 29 59.4
Table 9 Proportional
Total 30 100 % 48 100%
100%
As shown in the above table, out of the total respondents 84% ( 49.9 % +
34.4% ) Employees respond disagree about the assignment of buses in relation
to the number customers while customers replied 59%, 28%,12% strongly
disagree , disagree and moderate respectively. on the other hand the data
obtained through interview revels that the assignment of the buses in relation to
the number of customers is not proportional
22 This implies that majority of the
respondents respond the assignment of buses in relation to the service they
provide is not proportional .
Strongly Agree
Agree 1 3.1
Moderate 1 3.1 5 10
Disagree 13 48.3 14 30
Strongly Disagree 14 46.9 29 60
Total 30 100 % 48 100%
100%
Strongly Agree 4 9
Agree 14 15.6
Moderate 11 15.6 11 21.9
Disagree 5 36.5 11 21.9
Strongly Disagree 14 46.9 8 28.1
Total 30 100 % 48 100% As it is observ
Source of data collected through the questionnaire (price) charged
24 interview about
that the price is
charged against
Data presentation, analysis and interpretation Analysis and
interpretation of customers
customers’ response on the Assessment of
public transport service in case of cross country buses
As shown in the above table the question raised to customers was about the
safety of buses and replied as follows 22%, 17% and 56% replied very good,
good and moderate respectively about the safety of buses. The student
researchers from this deduce that the majority of the respondents Agree with
regard to safety of the buses.
How do you
you rate the service offered to customer
Number Percentage
Very good
Good
Moderate 7 14
Poor 11 22
Very poor 30 63
Total 48 100 %
Source of data collected through the questionnaire
25
As portrayed in table (15) Customers were asked with regard to the service
offered to customers and the respondents replied as follows: 63 %, 22 % and
14% replied very poor,poor,and moderate respectively. This is safe to deduce
that the majority of the respondentsdisagree with regard to the service offered to
customers.
Strongly Agree
Agree
Moderate 4 9
Disagree 10 20
Strongly Disagree 34 70
Total 48 100 %
Source of data collected through the questionnaire
The 16thquestion raised to customers were about whether the buses are well
furnished with 1st aid kit to give service in case of emergency and replied as
follows 70%, 20% and 9%, strongly disagree, disagree and moderate
respectively. This implies that majority of the respond strongly disagreeabout the
10th question raised.
Strongly Agree
Agree
Moderate 7 14
Disagree 9 19.4
Strongly Disagree 32 65.6
Total 48 100 %
Strongly Agree
Agree
Moderate 14 29
Disagree 16 34
Strongly Disagree 18 38
Total 48 100 %
Strongly Agree
Agree
Moderate 10 20.8
Disagree 17 35
Strongly Disagree 21 43
Total 48 100 %
Source of data collected through the questionnaire
The question which arises to customers were about whether there is
entertainment service to reduce the boring effect of long journey replied as
follows 43 %, 35% and 21% replied strongly disagree , disagree and moderate
respectively. This indicates that significant number of the respondents disagree
with the entertainment service given during long journey.
In the following sectionthe response given for the interview conducted for
Transport Authority high ranking officials is analyzed.
28
Question 1.
1 What do you say about the availability of proper maintenance service?
Furthermore interview conducted for high ranking officials of regulatory bodies
was about the availability of proper maintenance service and replied there is no
proper maintenance service. From this the student researcher infers that proper
maintenance services are not available.
Question 2.How do you see the tax incentives given by the government to
make the public transport looks modern ?
The next interview conducted for regulatory body officials was with regard to
whether the tax incentive given by the government to make the public transport
look modern is satisfactory or notand respond that the incentives are not
satisfactory. From this one can deduce that majority of the respondents respond
the tax incentive
Question 3. Howis do
notyou
adeuate.
see the bank loan facility availability?
Data gathered through interview with regulatory body officials about the Bank
Interview conducted with regulatory body officials revels that the loan facility
Beside the previous interviews the next question administered to regulatory body
officials was about the administration of bus terminals by transport authority and
replied it is not good. From this the student researcher infers that administration
of bus terminals by transport authority is not satisfactory.
29
CHAPTER 4
Questionnaires were distributed for the concerned parts to give their suggestion
about the assessment of public transport service in case of cross country buses
efficiency. Based on participant’s responses the following findings are found.
4.2
4.2 CONCLUSION 32
The accessibility of the existing long distance public transport service is not
satisfactory .
The growth of public transport in comparison to other transport system is yet
back ward.
The buses do not arrive to their destination on time.
The capacity of regulatory body to implement rules and regulation both
financially and in human resource aspect is weak .
The trip schedule setting by transport authority is not convenient.
The bus terminal service is poor. Even through our country is poor it is
possible to use in a better way the existing resource.
The regulatory body commitment to improve the public transport is not
satisfactory.
The assignment of the buses in a relation to the number of customers is
not proportional.
The location of the bus terminals is not convenient to passengers.
Theassignment of the buses in a relation to the quality of service they
provide do not much.
The remedial action taken if the bus collapsed is not satisfactory.
The tariff (price) charged against luggages and transportation is not fair.
The safety of the buses (chair, place, gaps, windows and air conditioner) is
good.
The service offered to the customers is not satisfactory because employees
do not handle their customers appropriately.
33
Public transport service also contributes its own share for the development of
the economy and as a whole for the country, if the service is properly
managed.
In this study it has been seen most of the variables that has strong relationship
with the public transport service dissatisfied the customer which affects the
whole public transport service.
Therefore the government, bus owners and managers should focus on the
variables.i.e. capacity of the regulatory body ,tariff setting , employees
competency , expenses incurred in regional terminals ,incentives given to
improve the sector etc..in order to make change on public transport service.
As the growth of the country’s economy, social and political systems, transport
also should grow simultaneously so that the transport service given to the
people will satisfy the users. Since public transport gives services to the people
it needs care to minimize problem that comes from old age of the buses.
The costs or expenses incurred in regional terminals for different regions will
increase the operator cost which directly affects the incomes of the owner or
companies and also it has impact on tariffs. To make smooth and minimize the
operators cost the concerned part should manage bus terminalsbased on rules
andregulations so that it will be possible to avoid unnecessarycosts.
35
Bibliography
K.SinghSanjoy,Revew
Revew of Urba
Urban
rban Transportation in
in India ,Indian institute of
Schieffer,Robert (2005). Ten key customer insights unlocking the mind of the
management,
management 3rd edition ,Kogan page limited ,Great Britian.
St. Mary University
Faculty Of business
Department Of Management
Dear respondent,
This questionnaire is prepared by 4th year management student, The purpose of this
questionnaire is to gather information needed to produce a paper in title << The
assessment of public transport service in case of cross country buses >> which is a
requirement for partial fulfillment of BA degree in management. The data obtained from
you will be treated as aggregate and will be kept secret. There for feel free to respond
honestly.
Instruction
5. Can you tell us what age range the buses fall in to?
. Below 5 years
. 5 to 10 years
. 11 to 15 years
. 16 to 20 years
. Above 20 years
Part II questions related to public transport service
2. How do you see the growth of public transport in comparison to other transport system
4. How do you rate capacity of Regulatory body to implement rules and regulations
5. Tariff
Very good setting
Goodby the governmentpoor
Moderate is fair Very poor
Trip
5. schedule setting by transport authority is convenient
The levels assigned to the buses in relation to the quality of service they
10.
provide
Very good Good Moderate poor Very poor
The
12. tariffs (price) charged against luggage’s
Fair unfair
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Interview Check list
2. How do you see the growth of public transport in comparison to other transport system?
4. How do you see the tax incentive given by the government to make the public transport look
modern?
7 How do you see the assignment of buses in relation to the number of customers is
proportional?
9 How do you see the levels assigned to the buses in relation to the quality of service
they provide?
10How do you see the remedial action taken if the bus is collapsed?
Declaration
Advisee’s Declaration
I, the undersigned declare that this senior essay/project is my original work, prepared under