ANALYSIS OF TRAIN PASSENGER RESPONSES ON PROVIDED SERVICE

Case study: PT. Kereta Api Indonesia

and Statens Järnvägar (SJ) AB, Sweden

ABADI DWI SAPUTRA

Supervisor: Lars Haglund

Service Science Program Karlstad University

Spring 2010

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ABSTRACT

Railway is one of public transport mode on land transportation. Railways, as mass public transport modes, have unique characteristics. It has large capacity, high safety level, and free from traffic jam. Those characteristics make railway a primary public transportation. In fact, even railway transportation has a lot of benefits for society life but they still faced by the problem. Service quality level of Railways transportation is still low compared with other transportation modes. At present railways operation is still colored with the delay, limited condition vehicle, and unclear train travel information that often disadvantage passengers, and many other services offered fail to attract passengers. These conditions result in decreasing the quality of services and insufficient railways operation.

The objective of this research is to analyze the relationship between customer satisfaction towards provided service with the desire to do a complaint and to find the factor from service quality that has significant influences to customer satisfaction towards PT KAI services. From that data, and also comparison study between PT Kereta Api Indonesia and Statens Järnvägar (SJ) AB, Sweden, we can recommend the service standards design, service guarantee and complaint handling system that need to be adjusted with the interest of consumer. The data was collected via field survey in the station that located in Jakarta, Yogyakarta and Pekalongan.

This research shows several findings. First, there are six factors of service quality attributes that have significant influences to customer satisfaction towards PT KAI services for commuter class (Information, Appearances, Service coverage, Tangible, Safety & security, and Cost), seven factors for business class (Travel time, Information, Scheduling, Comfort, Tangible, Safety & security, and Service coverage), and also seven factor for executive class (Appearances, Safety & security, Information, Comfort, Tangible, Travel time, and Cost). Second, while the commuter class passengers complain on the Safety & security attribute, for business class it is the information that influence the desire to complain. Meanwhile for executive class, passengers are mostly satisfied with the service given by PT KAI. Third, to decrease the number of complaints, some effective mechanisms to handle those complaints and learning from Statens Järnvägar (SJ) AB are necessary to take. Fourth, the service standards for PT KAI can be classified into 6 details of service, (safety and security attributes; comfort and appearances attributes; availability of information aspect attributes; tangible attributes; service coverage attributes; and the operations of train). For service guarantee design, this research focus on travel time guarantee. Learning from Statens Järnvägar (SJ) AB on Sweden service guarantee, PT KAI can adopt and use their system to increase customer satisfaction. Keyword: service standard, service guarantee, customer satisfaction, customer complaint handling, PT Kereta Api Indonesia, Statens Järnvägar (SJ) AB

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TABLE OF CONTENTS Abstract ............................................................................................................. i Table of Contents .............................................................................................. ii List of Table ..................................................................................................... iv List of Figures ................................................................................................... v CHAPTER I. INTRODUCTION .............................................................. . 1

1.1 Background ..................................................................................... 1 1.2 Problem Statement........................................................................… 2 1.3 Research Question ........................................................................... 4 1.4 Purpose of Research ........................................................................ 4 1.5 Limitation ........................................................................................ 5 1.6 Methodological Discussion............................................................... 5

1.6.1 Quantitative Research Approach .............................................. 5 1.6.2 Case Study Research................................................................ 6 1.6.3 Data Collection ........................................................................ 7

1.6.3.1 Primary & Secondary Data .............................................. 7 1.6.3.2 Data Analysis .................................................................. 8

1.7 Thesis Outline .................................................................................. 8

CHAPTER II. THEORETICAL BACKGROUND ..................................... 9 2.1 Public Transportation........................................................................ 9 2.2 Classification of Rail Transport services ......................................... 10 2.3 Service Quality............................................................................... 11 2.4 Service Quality in Railway Transportation...................................... 17 2.5 Customer Complaint Behavior........................................................ 18 2.6 Complaint Management.................................................................. 20 2.7 Customer Satisfaction..................................................................... 21 2.8 Service Standards ........................................................................... 23 2.9 Service Guarantee........................................................................... 25 2.10 Analysis Factor............................................................................... 25 2.11 Regression Analysis ....................................................................... 26

CHAPTER III. EMPIRICAL STUDIES ..................................................... 28

3.1 PT Kereta Api Indonesia ................................................................ 28 3.1.1 Introduction ....................................................................... 28 3.1.2 Indonesian Railway Organizations...................................... 30 3.1.3 Project Description in PT Kereta Api Indonesia .................. 33

3.2 Customer Satisfaction Index in PT KAI ......................................... 39 3.3 Complaint Handling System in PT KAI ......................................... 40 3.4 Service Guarantee in PT KAI ......................................................... 42 3.5 Statens Järnvägar (SJ) AB, Sweden ............................................... 42

3.5.1 Introduction ....................................................................... 42

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3.5.2 Sweden Railway Organization ........................................... 43 3.5.3 Project Description in Statens Järnvägar (SJ) AB, Sweden.. 45

3.6 Customer Satisfaction Index in SJ, AB ........................................... 51 3.7 Complaint handling System in SJ, AB ............................................ 53 3.8 Service Guarantee in SJ, AB .......................................................... 54

CHAPTER IV. RESEARCH METODOLOGY .......................................... 56

4.1 Research Flowchart ....................................................................... 56 4.2 Research Design & Questionnaire .................................................. 57 4.3 Respondent .................................................................................... 57 4.4 Sample Size ................................................................................... 57 4.5 Study Area ..................................................................................... 58 4.6 Research Tool ................................................................................ 58 4.7 Procedure ...................................................................................... 58 4.8 Type of Data .................................................................................. 59 4.9 Data Analysis ................................................................................ 59 4.10 Validity & Reliability .................................................................... 60

CHAPTER V. ANALYSIS & RECOMENDATION .................................. 61 5.1 Research Result .............................................................................. 61

5.1.1 Steps of Analysis .................................................................. 61 5.1.2 Demographic Data Analysis ................................................. 62

5.2 Service Performance Analysis ........................................................ 65 5.3 Customer Satisfaction Analysis ...................................................... 68

5.3.1 Analysis Factor...................................................................... 69 5.3.2 Interpretation of Factor ......................................................... 75 5.3.3 Comparison of Factor ........................................................... 79 5.4 Customer Complaint Analysis ........................................................ 80

5.5 Recommendation ............................................................................ 85 5.5.1 Complaint Handling System ................................................. 85 5.5.2 Service Standard Design ....................................................... 87 5.5.3 Service Guarantee Design ..................................................... 99

CHAPTER VI. CONCLUSION................................................................... 101

6.1 Conclusion ..................................................................................... 101 6.2 Future Studies ................................................................................. 104

REFERENCES ............................................................................................. 105 APPENDIX ................................................................................................... 108

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LIST OF TABLES

Table 3.1 Track and Length ........................................................................... 29 Table 3.2 Passenger Data (000 people) ......................................................... 32 Table 3.3 Railway Station in Java .................................................................. 36 Table 3.4 Performance Report of PT KAI ..................................................... 39 Table 3.5 Railway Station in Sweden ............................................................ 47 Table 3.6 Customer Satisfaction Index in SJ AB, Sweden.............................. 51 Table 3.7 Punctuality in SJ AB, Sweden ........................................................ 52 Table 5.1 The Number of Respondent Based on Gender ............................... 62 Table 5.2 The Number of Respondent Based on Age ..................................... 63 Table 5.3 The Number of Respondent Based on Educational Level ............... 63 Table 5.4 The Number of Respondent Based on Occupation.......................... 64 Table 5.5 The Number of Respondent Based on Frequently Using Train........ 65 Table 5.6 The Number of Respondent Based on Level of Income .................. 65 Table 5.7 Distribution of Satisfaction Responses ........................................... 66 Table 5.8 Comparison in Services.................................................................. 67 Table 5.9 KMO and Bartlett's Test (Commuter Class) ...................................... 69 Table 5.10 Rotated Component Matrixa,b (Commuter Class) ............................... 70 Table 5.11 KMO and Bartlett's Test (Business Class) ......................................... 72 Table 5.12 Rotated Component Matrixa,b (Business Class)................................... 72 Table 5.13 KMO and Bartlett's Test (Executive Class)........................................ 73 Table 5.14 Rotated Component Matrixa,b (Executive Class) ................................. 74 Table 5.15 Service attribute that use in factor analysis ..................................... 76 Table 5.16 Comparison Results ...................................................................... 79 Table 5.17 ANOVAb Table (Commuter Class) ............................................... 82 Table 5.18 ANOVAb Table (Business Class) ................................................... 83 Table 5.19 ANOVAb Table (Executive Class) ................................................. 85 Table 5.20 Customer Complaint Policy............................................................ 85 Table 5.21 Customer Responses and Real Condition on Field Towards Provided Service ............................................................ 88

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LISTS OF FIGURES

Figure 2.1 Service Quality Model.................................................................... 15 Figure 2.2 Gap 2 : Between Management’s perceptions of customer expectations and Service Quality Specifications ............. 16 Figure 2.3 Gap 3 : Between Service Quality Specifications and Service Delivery...................................................................... 16 Figure 2.4 The expectancy disconfirmation with performance model.............. 22 Figure 3.1 Coordination Structure of Directorate General of Railway.............. 31 Figure 3.2 Organization Hierarchy of PT Kereta Api Indonesia....................... 33 Figure 3.3 Railway map in Java (total length route, 2005: 3.362.000 km)......................................... 34 Figure 3.4 Railway Map in Sumatera (total length route, 2005: 1.314.000 km)......................................... 34 Figure 3.5 Railway Map in Jabodetabek Area ................................................. 35 Figure 3.6 Complaint Form in KCJ website..................................................... 41 Figure 3.7 Customer complaint ....................................................................... 41 Figure 3.8 Organization Hierarchy of Statens Järnvägar (SJ) AB, Sweden ..... 45 Figure 3.9 Railway Map of Sweden (source: www.banverket.se) ................... 46 Figure 4.1 Research Flowchart ....................................................................... 56 Figure 5.1 Steps of Analysis ........................................................................... 61 Figure 5.2 Seating Configurations ................................................................... 98 Figure 5.3 Windows Designs .......................................................................... 99

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CHAPTER 1 INTRODUCTION

The introductory section gives a picture of the incitements for this thesis. In this

section, a brief introduction is given as well as the objectives of this master thesis

together with its limitations. The final section will present an outline of the master

thesis.

1.1 Background

Transport or transportation is the movement of people and goods from one

location to another. A transport is the solution of displacements of individuals and

goods in both time and space. Transports create time utility as well as place utility.

Transport is performed by modes, such as air, rail, road, water, cable, pipeline and

space. The field can be divided into infrastructure, vehicles, and operations.

Transportation as a public service has an important role in the people’s society;

but in fact most of public transport companies in Indonesia only care about the

service as an output. It means that the purpose of their activities are simply

transporting somebody or providing transportation capacities. The customer only like

the recipient of the service, they do not care about the customer needs (customer

oriented).

In this situation many problems occurred such as: queuing time for ticket,

waiting time, punctuality (on time departure & on time arrival), fleet capacity,

physical condition of the fleet, services provided by service personnel, safety

information passenger, readiness of staff to help passengers, cleanliness, convenient

station, security on board, availability of media of suggestion and complaint,

unfriendly service personnel, information availability, availability of trash bin on

board and off board, and appearance service personnel.

Based on the explanation of the problem, there are so many complaints from

customer about performance of public transport industry in Indonesia, the

performance is far from expectation. Although complaint information that was

received will be very useful for the company to improve the service standards or to

take necessary steps in the improvement of internal company in the future, in fact

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there are no good system for handling the complaints from the customers which

adopted by public transport operators in Indonesia.

Customer satisfaction is a key to the future development of public transport,

both in theory and practice. Customer satisfaction has the potential to highlight and

explain the link between what a government and company does (in terms of the

products and services it offers) and the customer reactions to that. Customer

satisfaction relate to how passengers respond to the quality of service that the

operator gives them.

1.2 Problem Statement

Railway is one of public transport mode of land transportation. Railways have a

key position in society. They are a very old and important phenomenon in the

transport system. They also played an important role in the industrialization and

development of the modern world. Railways as mass public transport mode have

unique characteristics. It can carry passengers in the amount of mass at a relatively

less expensive cost. It is also energy efficient, land saving, high safety level,

environmentally friendly, comfortable, adaptive to technology development, and free

from traffic jam. Those characteristic makes railway primary public transportation.

In Indonesia, railways cover about 3,362 km in Java and 1,314 km in Sumatra with

only 10% of this being double-track railway. There is one railway company

monopoly in Indonesia: the state-owned Kereta Api Indonesia.

The most common problem of railways in Indonesia is the lack of finance that

causes deterioration of infrastructure quality. This influences the quality of service;

as a result the number of customers gradually decreases. Finally, that condition will

influence company’s revenue and cause accumulation of finance problem which is

identified as a causal loop problem.

Railway is different from the development and maintenance of road, including

bridge, terminal and road sign, which are implemented by the government (except

toll road). Indonesia railway should manage all of them by themselves. Road users

only pay vehicle based on the ownership rather than the used of the road

infrastructure. The costs for investment and railway facility maintenance are very

expensive, much more expensive than that of road transport modes. However, for the

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government organization, this is not a proper measurement the worthwhileness

scheme. Government can also expect to consider other (social) benefits, such as:

2. Reduction of accidents that usually occur when the traffics shift from road to

railway modes which is relatively safer.

2. Time saving for passengers if they use railway mode compared to road mode.

2. Reduction of traffic congestion that is able to avoid the cost requirement for new

road construction.

The external benefit of railway mode is very significant, for example, the fuel

consumption per train passenger is only 0.006 liters per kilometer, Compared to the

two passengers car that consumes 0,25 liter per passenger kilometer or bus 0,01 liter

per passenger kilometer. With an assumption that commercial passengers use cars

and economic passengers use buses, the railway mode will be able to save about 200

million litre of fuel yearly. If diesel fuel subsidy is Rp 1000 then PT Kereta Api, the

state owned company, as single authority of Indonesian railway will save the

subsidies about Rp 200 billion yearly.

Other externality is the loss of society because of road congestion, for instance

if urban railroad in Jakarta stop the operation and about 350,000 passengers of the

train use bus. In this case, there are other external benefits such as pollution

reduction and land saving.

According to the authorities, the railways' share of passenger transportation is

stagnant, at 7% of total passenger transport, and the share of cargo transportation is

under 1%. This low level of performance is attributed to the poor condition of the

railway infrastructure and facilities, inadequate application of technology, and the

poor quality of management, reflected in the declining performance of the railways

and in particular, the advanced age of locomotives, coaches, and rolling stock (WTO

Trade Policy Review on Indonesia, May 2007).

In fact even railway transportation has a lot of benefits for society life but they

still faced by the problem. Service quality level of Railways transportation is still low

compared to other transportation modes. At present, railway operation is still colored

with delay, limited-condition vehicle, and unclear train travel information that often

disadvantage passengers, and many of services offered fail to attract passengers.

These conditions result in decreasing the quality of services and insufficient railway

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operation. This is caused by infrastructure and rail facilities that have not been

adequate to serve demand of railway transportation services, in addition to quality

services that are still not satisfactory to service users.

Base on the facts, we know that Indonesian railways have a lot of problems.

There are many complains from the customers about railway services. It shows that

people have big expectation on railway but the service has not fulfilled their needs

yet. The operator of Indonesian railway (PT Kereta Api Indonesia) cannot

understand the overall expectation of users of railway service. These conditions

result in decreasing the quality of services and insufficient railway operation. This

will be a barrier to Indonesian railways accomplishment in making it to be a reliable

and sustainable transport mode.

1.3 Research Question

The research presented in this thesis explores the following questions:

1. What are the service quality attributes that have significant influences to customer

satisfaction towards PT KAI Services for short distance train (Commuter class),

and long distance train (Business class, and Executive class)?

2. Are there influences between customer satisfactions towards provided services

and the desire to make a complaint?

3. What is the effective mechanism to handle passenger’s complaints for PT KAI?

4. What kind of service standards and service guarantee that can be recommended to

PT Kereta Api Indonesia in order to improve their services?

1.4 Purpose of Research

The objective of this thesis is to analyze the relationship between customer

satisfaction towards provided service with the desire to make a complaint and to find

factors from service quality that have significant influences to customer satisfaction

towards PT KAI services. From the data, and also the comparison study between PT

KAI and SJ AB, Sweden, we can recommend the service standards design, service

guarantee and complaint handling system that need to be adjusted with the interest of

customer, so it is expected to obtain service standards that can meet the needs of

users in the use of Train transportation.

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1.5 Limitation

This research is a comparison study between PT Kereta Api Indonesia and

Statens Järnvägar (SJ) AB, Sweden. It concerns with customer complaint handling,

service guarantee and service standards based on customer data survey. This thesis

also limits the coverage area only to passenger railway service. The case study in

Indonesia will be assumed in Jakarta City for commuter class (short distance train),

Pekalongan and Yogyakarta city for business and executive class (long distance

train). For case study in Sweden is taken from annual report, previous study,

literature review, interview with related authority and field observation.

Due to some differences in service standards, service guarantee and complaint

handling system of Statens Järnvägar (SJ) AB, Sweden with the type of the service of

PT KAI, the researchers carried out the adjustments service with the real condition

for the operation of PT KAI.

1.6 Methodological Discussion

The methodological discussion of this research is to describe the approach

applied in order to answer the research questions stated above. The methods and data

used in the study are briefly presented.

1.6.1 Quantitative Research Approach

The functional or positivist paradigm that guides the quantitative mode of

inquiry is based on the assumption that social reality has an objective ontological

structure and that individuals are responding agents to this objective environment

(Morgan & Smircich, 1980). Quantitative research involves counting and measuring

of events and performing the statistical analysis of a body of numerical data (Smith,

1988). The assumption behind the positivist paradigm is that there is an objective

truth existing in the world that can be measured and explained scientifically. The

main concerns of the quantitative paradigm are that measurement is reliable, valid,

and generalizable in its clear prediction of cause and effect (Cassell & Symon, 1994).

Being deductive and particularistic, quantitative research is based upon

formulating the research hypotheses and verifying them empirically on a specific set

of data (Frankfort-Nachmias & Nachmias, 1992). Scientific hypotheses are value-

free; the researcher's own values, biases, and subjective preferences have no place in

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the quantitative approach. Researchers can view the communication process as

concrete and tangible and can analyze it without contacting actual people involved in

communication (Ting-Toomey, 1984).

The strengths of the quantitative method include:

Stating the research problem in very specific and set terms (Frankfort-Nachmias

& Nachmias, 1992);

Clearly and precisely specifying both the independent and the dependent

variables under investigation;

Following firmly the original set of research goals, arriving at more objective

conclusions, testing hypothesis, determining the issues of causality;

Achieving high levels of reliability of gathered data due to controlled

observations, laboratory experiments, mass surveys, or other form of research

manipulations (Balsley, 1970);

Eliminating or minimizing subjectivity of judgment (Kealey & Protheroe, 1996);

Allowing for longitudinal measures of subsequent performance of research

subjects.

The weaknesses of the quantitative method include:

Failure to provide the researcher with information on the context of the situation

where the studied phenomenon occurs;

Inability to control the environment where the respondents provide the answers to

the questions in the survey;

Limited outcomes to only those outlined in the original research proposal due to

closed type questions and the structured format;

Not encouraging the evolving and continuous investigation of a research

phenomenon.

1.6.2 Case Study Research

A case study is an empirical inquiry that investigates a contemporary

phenomenon within its real life context, especially when the boundaries between

phenomenon and context are not clearly evident. The case study inquiry copes with

technically distinctive situation in which there will be many more variables of

interest than data points, and as one result relies on multiple sources of evidence,

with data needing to converge in a triangulating fashion, and as another result

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benefits from the prior development of theoretical proposition to guide data

collection and analysis (Yin 2003).

Denscombe (2007) argues that the real value of a case study is that it offers the

opportunity to explain why certain outcomes might happen - more than just find out

what those outcomes are.

The thesis is a case study about railway as public transport between PT Kereta

Api Indonesia and Statens Järnvägar (SJ) AB, Sweden. The result of analysis chapter

will be applied in pilot case study of Indonesian railways system.

1.6.3 Data Collection

After deciding the method, the next step is collecting data stage to support this

thesis. In this data thesis, both primary and secondary data are used.

1.6.3.1 Primary and Secondary Data

In this research, the data were divided into secondary data and primary data.

1. Secondary Data

The secondary data is data which is collected to support the primary data and as

comparison to other studies. The secondary data in this research are obtained from

the institution or organizations associated with the research object such as

Directorate General of Railways (DGR) Ministry of Transportation, PT. KAI, PT.

KA Commuter Jabodetabek (PT. KCJ), Banverket and Statens Järnvägar (SJ) AB,

Sweden, both directly go to those offices or through the official website. Secondary

data required are as follows:

a. Complaint handling management system, service guarantee policies, and

service standards associated with the railways services

b. Other supporting data about characteristic of service operation such as:

railway network, the number of users, the number of stations and fleets, the

fare structure, and customer satisfaction index

2. Primary Data

The primary data is data which are collected in the field based on the existing and

reality condition. This data were conducted by questionnaire survey.

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1.6.3.2 Data Analysis

Further analysis will be done, after data collecting. In this thesis, researcher

using factor analysis for finding the service quality attributes that has significant

influences to customer satisfaction towards PT KAI Services for Commuter,

Economy class, Business class, and Executive class, and regression analysis for

finding where there is influence between customer satisfactions with the desire to do

a complaint.

1.7 Thesis Outline

The thesis outline is presented in order to guide readers through this thesis and

to give a quick overview of the different chapters.

Introduction, in chapter 1, contains background why

writer choose this thesis topic.

Theoretical Framework, in chapter 2, contains about basic

theory that suitable to use to analyses the problem.

Empirical Study, chapter 3 is a description of the case of

thesis studies there are PT Kereta Api Indonesia and

Statens Järnvägar AB Sweden

Research methodology, in chapter 4 presents the research

approach used in this study

Analysis & Recommendation, in chapter 5, presents

analysis and recommendation

Conclusions, chapter 6 presents the conclusion and

suggestion for future research.

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CHAPTER 2 THEORETHICAL FRAMEWORK

This chapter will give an overview of literature that is related to the research

problems. This chapter will introduce the concept of public transportation,

classification of rail transport services, service quality, service quality in railway

transportation, customer complaint behavior, complaint management, customer

satisfaction, service standard, and service guarantee, factor analysis and regression

analysis.

2.1 Public Transportation

Public Transportation is mass transportation from the government or private

company that can carry many people to their destination on time with cheap fares,

comfortable and safe vehicles. This sector is based on public-private business to

business (B2B) relationship and the system can be seen as a “value network”

(Enquist, 1999; 2003). All business activities are principally a matter of meeting and

satisfying customers needs (Johansson, 2001). An increasingly important task in

transportation is the improvement of public transportation services as customer

appeal to make them more useful so they can solve transportation problem.

One of public transportation in land area is railway (train). According to

Indonesia Railways Law No.23 2007, Railway is a united system that consists of

infrastructure, vehicle, and human resources, also norm, criteria, requirement, and

procedure in order to operate railway as transportation mode.

Railway operation consists of infrastructure and vehicle (freight and passenger

train) operations. Railway infrastructure covers all the fixed installations on routes

and stations that are required for the running of trains. The activities inside the

infrastructure area are infrastructure operational, construction, maintenance, and

management. Railway operation consists of vehicles steered by a track on a

dedicated area, which are governed by a signaling system. The activities inside

vehicle operation are vehicle availabilities, vehicle operation, vehicle maintenance,

and vehicle cultivation.

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2.2 Classification of Rail Transport Services

In the Services Sectoral Classification List (MTN.GNS/W/120), which was

drawn up during the Uruguay Round based on the United Nations Provisional

Central Product Classifications (UNCPC), rail transport services is listed as a sub-

sector of transport services and includes five sub-categories namely, passenger

transportation, freight transportation, pushing and towing services, maintenance and

repair of rail transport equipment, and supporting services for rail transport services.

A brief description of each of these sub-categories is given below:

(a) Passenger Transportation (CPC 7111): This sub-sector includes two kind of

services:

(i) Interurban passenger transportation (CPC 71111)- This refers to interurban

passenger transportation provided by railway, regardless of the distance covered

and the class used.

(ii) Urban and suburban passenger transportation (CPC 71112)- This refers to

transportation of passengers between two urban areas or between an urban and a

suburban area. Services provided by urban mass transit railways, i.e.,

underground and elevated railway, are included in this category.2

(b) Freight Transportation (CPC 7112): This sub-sector includes the following

services:

(i) Transportation of frozen or refrigerated goods (CPC 71121)- This refers to

the transportation of frozen or refrigerated goods (e.g. perishable food products in

special refrigerated cars) by railway.

(ii) Transportation of bulk liquids of gases (CPC 71122)- This refers to

transportation of bulk liquids of gases in special tank cars by railway. These cars

may also be refrigerated.

(iii) Transportation of containerised freight (CPC 71123)- This refers to

transportation by railway of individual articles and packages assembled and

shipped in specially constructed shipping containers designed for ease of

handling in transport.

(iv) Mail transportation (CPC 71124)- This refers to transportation of mail by

railway on account of national and foreign postal authorities.

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(v) Transportation of other freight (CPC 71129)- This refers to transportation by

railway of freight, not included elsewhere.

(c) Pushing and Towing Services (CPC 7113): This sub-sector includes railway

pushing or towing services, on a fee or contract basis, e.g. the movement of

wagons between terminal yards, industrial sidings, etc.

(d) Maintenance and Repair of Rail Transport Equipment (CPC 8868):

Maintenance and repair activities in this sub-sector cover repair services of

transport equipment, on a fee or a contractual basis and do not include

maintenance and repair of railway infrastructure, which is covered under the

Construction and Related Engineering services sector (CPC 51310 and CPC

51320).

(e) Supporting Services for Rail Transport Services (CPC 743): This sub-sector

includes railway passenger terminal services, except cargo handling, and other

supporting services for railway transport, not classified elsewhere. This

subcategory excludes shunting services (classified in CPC 71130 under Pushing

or Towing Services); railway freight cargo handling services [classified in the

subclass CPC 74110 under Container Handling Services, if for containerised

freight, and in CPC 74190 (Other Cargo Handling Services), if for non-

containerised freight or passenger baggage.

2.3 Service Quality

Before defining service quality, it is important to know the characteristic of

service quality. Zeithaml (1990) acknowledges the characteristics of service quality

which is more on the subjectivity of customers. Zeithaml describes it as follow:

a. Service quality is more difficult to evaluate than goods.

b. Customers do not evaluate service quality solely on the outcome of a service,

they also consider the process of service delivery.

c. The only criteria that count in evaluating service quality are defined by

customers. Only customers judge service quality. Specifically, service quality

perception stem from how well a provider performs vis-à-vis customers’

expectations about how the provider should perform.

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American Society of Quality (ASQ) defines quality as “The totality of features

and characteristics of a product or service that bears on its ability to satisfy given

needs.” (Haksever et al. 2000).

Park, Robertson and Wu (2004) define service quality and service value as:

service quality can be defined as a customer’s overall impression of the relative

efficiency of the organization and its service, and service value can be defined as

customer’s overall assessment of the utility of a product base on perceptions of what

is received and what is given.

Parasuraman (1985) defines service quality as a measure of how well the

service level delivered matches customer expectation. While Edvardsson (1997)

acknowledges that service quality is that “the service should correspond to the

customers” expectations and satisfy their needs and requirements”. Moreover, Lewis

and Booms declare that service quality is matching service and expectations.

Parasuraman et al. (1988) argued that “SERVQUAL” is multiple-item

instrument for assessing customer perception of service quality in service and

retailing organization. They also declare that their research showed criteria used by

customer to assess service quality fitting 10 dimensions: tangibles, reliability,

responsiveness, communication, credibility, security, competence, courtesy,

understanding/knowing the customer, and access. After further examination, they

proposed five dimensions of SERVQUAL, there are:

1. Reliability is the ability to provide services promised to the right (accurately) and

the ability to be trusted (dependably), mainly to provide services in a timely

manner (on time), in the same manner in accordance with the schedule that has

been promised, and without making mistakes each time. The attributes in this

dimension are:

a. Ability to perform the promised service dependably and accurately

b. Providing services as promised

c. Dependability in handling customers’ service problems

d. Performing services right at the first time

e. Providing services at the promised time

f. Keeping customers informed about when services will be performed

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2. Responsiveness, that is the will or desire to help employees and provides services

that customers needed. Leaving the customer to wait, especially without a clear

base, will cause a negative impression that should not happen. Unless this error

was responded quickly, it can be a good expression and a pleasant experience.

The attributes that exist in this dimension are:

a. Willingness to help customers and provide prompt service

b. Readiness to respond to customers’ requests

3. Assurance, including knowledge, skills, hospitality, courteous, and trustworthy

nature of the contact personnel to the nature of customer skepticism, and feel free

from danger and risk. The attributes that exist in this dimension are:

a. Knowledge and courtesy of employees and their ability to inspire trust and

confidence

b. Employees who instill confidence in customers

c. Making customers feel safe in their transactions

d. Employees who are consistently courteous

e. Employees who have the knowledge to answer customer questions

4. Empathy, include attitude contact and company personnel to understand customer

needs and difficulties, good communication, personal attention, ease of

communication or conduct in the relationship. The attributes that exist in this

dimension are:

a. Caring, individualized attention the firm provides its customers

b. Giving customers individual attention

c. Employees who deal with customers in a caring fashion

d. Having the customer’s best interest at heart

e. Employees who understand the needs of their customers

5. Tangibles, availability of physical facilities, equipment, and communication

facilities and the other that can or should be in the process of services. The

attributes that exist in this dimension are:

a. Appearance of physical facilities, modern equipment

b. Employees who have a neat, professional appearance

c. Visually appealing materials associated with the service

d. Convenient business hours

14

Parasuraman (1991) also divides the five dimensions into two main categories

considering which part of the service they are more involved in; process or outcome.

While reliability dimension is mainly concerned with the service outcome, other

dimensions of service are more concerned with the service process. Then it can

demonstrate the whole dimension of service again. The following are two categories

discussed above:

Service Outcome Reliability

Service Process Tangibles

Responsiveness

Assurance

Empathy

The reliability, which includes the accuracy and dependability determinants of

service, can be judged after the service was delivered to customers, but the other

dimensions must be judged when the service is being delivered.

Parasuraman (1991) states, “Although reliability is the most important

dimension in meeting customer expectations, the process dimensions (especially

assurance, responsiveness, and empathy) are most important in exceeding customer

expectations”. They also state that in their study in 1991 “when we asked our

respondents to discuss what companies could do to exceed their expectations, they

invariably answered in term of the process dimensions. In general, companies are

supposed to be accurate and dependable and provide the service they promised to

provide, in other words, meeting the reliability dimension. However, to go beyond

what is expected and provide the excellence of service to customers, the providers

need to “surprise customers with uncommon swiftness, grace, courtesy, competence,

commitment, or understanding.” (Parasuraman, 1991) That is, in other words,

meeting the tangibles, responsiveness, assurance and empathy dimensions.

In practical implementation, Parasuraman et al. (1985) finds missing link

between service quality perspectives owned by the producers with service quality

perceived by the customers. Parasuraman et al. models the missing link with gap

between the perception of service quality from the producer and customer.

15

Figure 2.1 Service Quality Model Source: Conceptual Model of Service Quality (Zeithmal et al., 1990)

Briefly, the gap model in the above can be summarized as follows: to close the

gaps, the company must identify what customers expect (gap 1 “understanding gap”),

then the organization has to design the service accordingly (gap 2 “design gap’), and

assure that the service is delivered as it was designed (gap 3 “delivery gap”). At the

same time, they must communicate to customer precisely what the services contain

(gap 4 “communication gap”). When this is done, the company has done what it can

to design, to deliver, and to communicate the service to customers, and thereby

increases the chance that customer expectations of the service and their experience of

it match (gap 5 “service quality gap”).

Based on the Service Quality Model, this research focus on gap 2 “design gap”

and gap 3 “delivery gap.

Management Perception of Consumer expectation

Perceived Service

Service delivery

Service Quality Specifications

External communications to

Customer

Word of mouth Communication

Expected Service

Personal needs Past experience

Customer

Provider

Gap 1

Gap 5

Gap 4

Gap 3

Gap 2

16

Figure 2.2 Gap 2: Between Management’s perceptions of customer expectations and

Service Quality Specifications

Gap 2 or design gaps occur due to differences between management

perceptions of customer expectations and service quality specifications. The design

of service standards aims to find out what benchmark the quality of service standard

that is applied by the management service providers. If the management does not

have service standards, they need to make the design standard of service quality.

Figure 2.3 Gap 3: Between Service Quality Specifications and Service Delivery

In gap 3, the role in standard delivery of the service also must be paid attention

to. The service standards are made as the guide in the operation of a service that is

the realization from hope of the customer on this service. If this customer expectation

is different from the application of the service standard, then complaints from the

customers on the dissatisfaction of the services emerge.

17

2.4 Service Quality in Railway Transportation

The importance concern in transit service quality is passengers’ point of view.

TRB (2003a) groups those categories into two main groups, those are: availability,

and convenience & comfort.

1. Availability

a. Service Coverage. Service coverage is an important factor for choosing transit.

The route of service should ease one to mobile, from origin to destination. For

examples, train station should be easy to access by walking or bike and easy to

access to bus shelter even for those disabled people.

b. Scheduling. Scheduling is related with how easy the passengers get service by the

train with short waiting time in the station. This condition is related with many

operated fleets and high frequency of the train.

c. Capacity. “Capacity can impact train service availability”. During rush hours or

holiday, trains often experience overload in capacity. It means, for people who

have not get in the train, the service is not available.

d. Information. Information is a vital factor. Passengers need information in order to

get reliable service. Operator should inform any information to the passengers

through any possibilities (TRB 2003a).

2. Comfort and Convenience

a. Passenger Load. Passenger load can reduce the added value compared to private

vehicles. These factors need more attention as operator should be smart to adjust

“load factor”, based on supply and demand. When demand is low, operator will

set frequencies to become low, vice versa.

b. Reliability. Reliability in transit service is the matters of time that are “on-time

performance” and “regularity of headway”. These problems could be influenced

by internal and external operator’s management, such as traffic condition, road

construction, vehicle and maintenance quality, transit preferential treatments,

schedule achievability, evenness of passenger demand”, etc.

c. Travel Time. Travel time is one of a consideration factor for choosing modes. If

travel time of public transit is less than private vehicle, one will choose public

transit. Thus, public transit should have added value to become people reference.

18

d. Safety and Security. Safety and security in transit is whole parts from step on the

station until travel with the train safely and secure from criminal action.

e. Cost. When passenger has plans to mobile somewhere, one will compare “cost

out-of-pocket and value” of each mode.

f. Appearance and Comfort. Appearance includes cleanliness and neatness of

vehicle and station. Appearance condition can either attract customer or instead

unwilling to use transit. Appearance is reflection of management concern to

transit service. Comfort is related with personal comfort feeling, such as

“appropriate climate control (air conditioner, heater), comfort of seat, and

comfort of ride”. The more comfort they feel, the more consideration to use

public transit (TRB 2003a).

2.5 Customer Complaint Behavior

Complaints are a vital form of customer feedback that provides unique and

valuable information to an organization concerned with quality improvement and

risk management. Customer complaint behavior is a complex construction although

three factors are commonly mentioned in different definitions of the phenomenon,

either separately or in combination. The definitions either describe the complaining

customer’s state of mind, a behavioral, and/or a communicational act (Tronvoll

2008).

London (1980) defines customer complaint behavior as “an expression of

dissatisfaction by individual customers (or on a customer’s behalf) to a responsible

party in either the distribution channel or a complaint handling agency”. Oliver

(1980) notes that complaint behavior is dissatisfaction which is caused by negative

disconfirmation of purchase expectations.

Singh and Howell (1985), define customer complaint behavior “as a set of

multiple (behavioral and non behavioral) responses, some or all of which are

triggered by perceived dissatisfaction with a purchase episode”.

Knowledge about complaint behavior gives the service provider valuable

insight into many areas such as identifying common service problems, improving

service design and delivery, understanding the customer’s perceived service quality

and helping strategic planning (Tronvoll 2008). There are five behaviors common

complaint:

19

1. Facing companies/retailer in a certain way.

2. Avoiding the same company/retailer and persuading friends and family, to avoid

the same company/retailer.

3. Doing open action involving third parties (for example, launched a formal action

to obtain compensation).

4. Boycotting a company or organization.

5. Creating an alternative organization to provide goods or services.

The first three behaviors - related to the retailer, rather than degrading the brand

or store and asking friends to avoid too, and complained through a third party - is an

open response to the problem of product or service which customers claim, both

personally punish retailers through business withdrawal or by demanding some kinds

of replacement. This replacement can be in the form of money or replacement

product. Two last behaviors are more far-reaching: pulling their own business (hope

not from your friends and family) to launch a customer boycott of a general attempt

to change the marketing practices and / or promoting social change. Perhaps the most

drastic behavior is the last: creating a new organization to provide goods or services.

Singh (1988) suggests that customer complain behavior could be classified into

three major categories: (1) voice response to the party directly involved in the

complaint; (2) private response (e.g. negative word-of-mouth and/or switching); and

(3) a third party response (e.g. legal action).

From the customers perspective it is important to complaint after encountering

an unfavorable service experience because it gives the customer an opportunity to (i)

receive an apology for the inconvenience, (ii) be offered a fair solution of the

problem, (iii) be treated in a manner where the service company appreciates the

customer’s problem (including fixing it), and (iv) be offered some value-added

atonement for the inconvenience (Zemke and Bell, 1990).

From the transportation company’s perspective, complaint behavior is

important because it, (i) helps the provider to develop a sustainable business, (ii) may

reduce the effect of the negative word-of-mouth, and (iii) influences the profitability

in the future. A complaint provides an opportunity for service recovery which, in

turn, has the potential to educate the customer, strengthen loyalty, and induce

positive word-of-mouth comments (Edvardsson and Roos 2003; Friman and

20

Edvardsson 2003). Although attracting new customers is vital, successful service

companies recognize that retaining current customers and building loyalty are even

more important for profitability; as such, successful service companies actually

encourage dissatisfied customer to complain (Tax et al. 1998).

2.6 Complaint management

Complaints are valuable source of information. Every complaint is an inside

look into a customer’s mind, provided at no cost to company. Complaints tell

company why customers are dissatisfied and what company can do about it.

An effective complaint management process can be an important quality

improvement tool. Many studies that emphasize that customer feedback and

complaint should be welcomed and encouraged by the service provider because they

generate valuable information (Nyer and Gopinath 2005; Reynolds and Harris 2006;

Tax and Brown 1998).

Customer complaints may be useful in many ways: providing marketing

intelligence data (Harrison-Walker 2001), identifying common service problems

(Harari 1992; Johnston and Mehra 2002; Richins and Verhage 1985; Tax and

Brown1998), learning about organizations (Hoch and Deighton 1989; Johnston and

Mahra 2002; Tax and Brown 1998), improving service design and delivery (East

2000; Marquis and Filiatrault 2002; Tax and Brown 1998), measuring and enhancing

the perception of service quality (Edvardsoon 1992; Harrison-Walker 2001; Marquis

and Filiatrault 2002) and helping strategic planning (Droge and Halstead 1991;

Johnston and Mehra 2002).

According to Schnaars there are four important aspect for handling customer

complaint, there are:

1. Empathy with the customer

Empathy with the customer anger is essential in handling customer complaints.

Management can gain empathy from customers by providing more time to listen

to customer complaints.

2. Speed of response

The speed is crucial in handling customer complaints. When customers make a

complaint and did not get the right handling, then customers would likely not

satisfied and can not be converted into satisfied with the service company.

21

3. Balance of response

The company can handle the customer complaint in three ways:

a. Ignore

b. Giving a lot of compensation

c. Equally compensate the customer dissatisfaction

The best response to customer complaints is to improve the quality of the product

to the expected level of quality customer before making a purchase so that

customers get the satisfaction of the original satisfaction.

4. Ease to contact the company

In the era of globalization, communication is an absolute requirement. By

opening a channel of communication, customers can easily contact the company.

Although in reality a large cost element, but it would be very beneficial for

companies to create goodwill in the eyes of customers in the long term.

According to Davidow (2000), there are six different dimensions of

organizational responses to complaint that affect postcomplaint customer behavior.

There are:

1. Timeliness. The perceived speed with which an organization responds to or

handles a complaint.

2. Facilitation. The policies, procedures, and structure that a company has in place

to support customers engaging in complaints and communications.

3. Redress. The benefits or response outcome that a customer receives from the

organization in response to the complaint.

4. Apology. An acknowledgement by the organization of the complainant’s distress.

5. Credibility. The organization’s willingness to present an explanation or account

for the problem.

Attentiveness. The interpersonal communication and interaction between the

organizational representative and the customer.

2.7 Customer Satisfaction

Customer satisfaction is the “collective outcome of the customer’s perception,

evaluation, and psychological reaction to the consumption experience with a product

or service” (Khalifa & Liu, 2003). It leads to repeat purchase, loyalty, positive word

of mouth, and increased long term profitability for the organization (Wirtz, 2003).

22

Customer satisfaction thus highlight and explains the link between what a company

does (in terms of the products and service offered) and its customers reaction for that.

Attributes like reliability, frequency, comfort, information, driver behavior, and

cleanliness are shown to be key elements of public transport user satisfaction (Bates

et al. 2001, Beirao & Cabral 2007, Friman & Garling 2001, Hencher et al. 2003).

According to Oliver (1997), customer satisfaction is defined as the customer’s

fulfillment. It is a judgment that a product or service feature, or the product or service

itself, provided (or is providing) a pleasurable level of consumption-related

fulfillment, including levels of under- or over-fulfillment. Need fulfillment is a

comparative processes giving rise to the satisfaction responses. Any gaps lead to

disconfirmation; i.e., Positive disconfirmations increases or maintain satisfaction and

negative disconfirmation create dissatisfaction.

The Expectancy Disconfirmation with Performance (EDP) framework (Oliver,

1997) is one the most common theories of customer satisfaction. A basic assumption

is that satisfaction or dissatisfaction results from a comparison of expectations with

actual performance.

Figure 2.4 The expectancy disconfirmation with performance model Source: Satisfaction: A behavioral perspective on the customer (Oliver, 1997)

The EDP model is applicable to explaining why people feel dissatisfied or

satisfied with public transport. The satisfaction judgment seems to originate in a

comparison of the level of performance perceived by the person using an evaluative

standard. Typically, this standard is formed by people expectations. Consequently,

disconfirmation may function as a process of change in the overall evaluation

processes.

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2.8 Service Standards

Service standards, a shortened form of the phrase "standards of service" -- are

more than service delivery targets such as waiting times and hours of operation.

Customer are entitled to know what they should expect from the service provider,

how services will be delivered and what they cost, and what customer can do when

services they receive are not acceptable.

According Giannopoulos (1988) service standard is a fixed minimum or

maximum value of a specific performance or other indicator that should not be

exceeded. It is a limiting value or a specific objective to achieve, which may or may

not correspond to a performance indicator.

Service standards include five essential elements (Giannopoulos 1989):

1. Descriptions of the service you intend to provide and, where applicable, the

benefits clients are entitled to receive.

2. Service pledges or principles describing the quality of service delivery clients

should expect to receive, focusing on such elements as openness, fairness,

courtesy, professionalism, choice of official language where applicable, etc.

3. Specific delivery targets for key aspects of service, such as timeliness, access and

accuracy.

4. The costs of delivering the service, and

5. Complaint and redress mechanisms that clients can use when they feel standards

have not been met.

While each of these elements can exist on its own, it is expected that, in most

cases, service standards will eventually cover all elements. However, in a limited

number of instances, every element may not be relevant to the situation. In many

instances, clients for services have responsibilities as well as entitlements. In order to

receive the quality of service delivery described in service standards, they frequently

must provide required information accurately, present themselves on time, be able to

explain their situation, etc.

Service standards are being used as a mechanism to provide an evaluation of

the performance of the public transport system as a whole and/or this of individual

routes. Relative to the service standards, the following cases may exist

(Giannopoulos 1989):

24

1. Formal Service Standards. These are official policy objectives, which are used to

evaluate a particular performance indicator by establishing specific limits that

identify acceptable and unacceptable performance levels. The formality of the

standard is a reflection of its status within an agency as official policy and the

existence or a formalized performance evaluation and review process for the

corresponding indicators. Due to the standard’s official status, a major effort is

normally made to adhere to its requirements under most situations and

conditions.

2. Informal Service Standards. In this case the standard has no official or policy

status within an agency and is used as an internal guideline only. The standard’s

informal nature may result in less than universal application under various

situations or conditions at the discretion of the department or manager

responsible for the evaluation activity.

3. Proposed Service Standards. This is the situation, in which a transit system is

either in the process of developing a service standard to evaluate a performance

indicator, or it is currently involved in securing approval for recently been

approved. Most of the agencies with “proposed” standards envision that the

standards will receive formal status in the near future.

4. Performance Indicator Monitoring. This is the situation, in which a transit

system does not possess (or is in the process of developing) a service standard to

evaluate a performance indicator. However, despite the lack of a standard, the

agency does track or monitor the performance indicator by collecting/analyzing

pertinent data and by calculating various indicators and statistics on a more or

less regular basis. Transit systems that monitor performance indicators frequently

use such general terms as “minimize” or “maximize”, which indicate a desire to

improve some aspect of performance levels that are quantifiable or measurable.

5. No Standards or Indicators. A final case is a situation, in which no standards or

performance indicators are used by the agency.

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2.9 Service Guarantee

A service guarantee is a statement that clarifies what the customers can expect

from a service, and what the company will do to rectify the situation if the service

does not meet expectations.

Service guarantees have been claimed to be an important device for achieving

total customer satisfaction after a service failure (Sasser at al., 1991). A service

guarantee is a promise by a firm that they will perform at a certain level and, if that

level is not met, the firm also promises to compensate the customer in some way.

When purchasing a service, customers have an expectation of what the quality of that

service will be (the promise). The firm provides some level of quality (performance).

If the customer or the firm is unsatisfied with the quality of the service provided, the

firm may or may not do something to satisfy the customer (compensation).

Kashyap (2001) states that service guarantees establish mechanism for routine

checks on performance, and create “feedback loops between the company and its

customer to facilitate organizational learning.

A Service guarantee transforms an intangible service into a measurable

expectation for the customer before receiving the service (Wagner, 1994). Service

guarantees could have a positive effect on customer satisfaction by managing

customer expectations (Cahill and Warshawky 1995), ensuring responsiveness,

forcing the firm to attain a high level of reliability, and providing tangible evidence

of a firm's empathy. A guarantee makes non-quality visible (Harvey 1998) and

provides economic incentive for the organization to continually improve its service

delivery process. Most companies use service guarantees to improve customer

satisfaction and attract new customers (Sasser et al., 1991).

2.10 Factor Analysis

Analysis factor is used to uncover the latent structure (dimensions) of a set of

variables. It reduces attribute space from a larger number of variables to a smaller

number of factors and as such is a "non-dependent" procedure (that is, it does not

assume a dependent variable is specified) (Garson, 2010). Factor analysis could be

used for any of the following purposes:

1. To reduce a large number of variables to a smaller number of factors for

modeling purposes, where the large number of variables precludes modeling all

26

the measures individually. As such, factor analysis is integrated in structural

equation modeling (SEM), helping confirm the latent variables modeled by SEM.

However, factor analysis can be and is often used on a stand-alone basis for

similar purposes.

2. To establish that multiple tests measure the same factor, thereby giving

justification for administering fewer tests. Factor analysis originated a century

ago with Charles Spearman's attempts to show that a wide variety of mental tests

could be explained by a single underlying intelligence factor (a notion now

rejected, by the way).

3. To validate a scale or index by demonstrating that its constituent items load on

the same factor, and to drop proposed scale items which cross-load on more than

one factor.

4. To select a subset of variables from a larger set, based on which original

variables have the highest correlations with the principal component factors.

5. To create a set of factors to be treated as uncorrelated variables as one approach

to handling multicollinearity in such procedures as multiple regression.

6. To identify clusters of cases and/or outliers.

7. To determine network groups by determining which sets of people cluster

together.

There are several different types of factor analysis, with the most common

being principal components analysis (PCA), which is preferred for purposes of data

reduction. However, common factor analysis is preferred for purposes of causal

analysis and for confirmatory factor analysis in structural equation modeling, among

other settings.

2.11 Regression Analysis

Regression analysis examines the strength of a relation between a dependent

variable and a number of independent variables, also called explanatory variables.

The mathematical model of the relation between the dependent variable and the

explanatory variables is known as the regression model. The regression model

contains one or more unknown parameters that are estimated using the given data on

the explanatory variables.

27

The simplest and most commonly used is the univariate linear regression,

y = a + bx (Esbensen et al., 1998). In the multivariate case, the corresponding

technique is called MLR (Multivariate Linear Regression), which fits a linear

combinations of several variables, x1, x2, ..., xn, to describe the response, y

(Esbensen et al., 1998). The following equation describes the linear regression model

that is used in the analysis:

Υ = βo+β1χ1+………………..+βnχn+ε (1)

Where:

Υ = Dependent variable

βo = Constant value

β1 – βn = Independent variable coefficient

χ1 - χn = Independent variable

ε = Error

28

CHAPTER 3 EMPIRICAL STUDIES

This chapter presents historical introduction, company organization, project

description, customer satisfaction index, complaint handling system and service

guarantee that given by PT Kereta Api Indonesia and Statens Järnvägar (SJ) AB,

Sweden.

3.1 PT. Kereta Api Indonesia

3.1.1 Introduction

The first railway line in Indonesia began operations in August 10, 1867 in

Central Java. By May 21, 1873, the line had connected three main cities in the

region, i.e. Semarang, Solo and Yogyakarta. This line was operated by a private

company, Nederlandsch-Indische Spoorweg Maatschappij (NIS: Netherlands East

Indies Railway Company).

The railway restructuring has gone through various stages, started with

Djawatan Kereta Api (DKA), short after the Independence Day in 1945. Later years,

it changed into several names of public corporations, such as Perusahaan Negara

Kereta Api (PNKA) and Perusahaan Jawatan (PJKA), which were considered as

public services. In 1991, the organization changed into a state-owned enterprise,

Perusahaan Umum Kereta Api (PERUMKA) which aimed for commercial purposes,

while maintaining the obligation to provide public services.

The transformation from PJKA into PERUMKA on January 2nd

, 1991 was

known as the first major step in the Indonesian railway restructuring. The

implementation of Law Number 13/1992 on Railway influenced the efforts of the

restructuring of the State Owned Companies (BUMN) which had functions as the

provider and operator of rail infrastructure as well as train services. As stated in

Chapter 6 of the law, the implementation of railway transport by the government was

delegated to a corporation, which was established for the purpose according to the

regulation.

With the implementation of Law Number 13/1992, part of the regulatory

function which was then indirectly conducted by PERUMKA even though formally

29

was the duty and responsibility of the government in this case Ministry of

Transportation - Directorate General of Land Transportation.

The second stage of the railway restructuring was the transformation of

PERUMKA into PT. Kereta Api (Persero), a state owned enterprise, through

Government Regulation No. 19/1998. By this latest conversion, therefore, full extent

of limited company principle was then exercised by PT. Kereta Api (Persero), as

regulated in Law No. 1 / 1995 on Limited Company and Government Regulation No.

12 / 1998 on Persero Company. The objective of PT. Kereta Api (Persero) was to

provide high quality services that were competitive and profitable to increase

company’s value (Article 4 item (1) sub B. Government Regulation No. 12 / 1998).

This was supported by Article 1 Item (2) Government Regulation No. 12 / 1998

which stated that all or at least 51% of the company’s shares was owned by the State

through direct capital investment.

PT Kereta Api (Persero) (Railway Corporation, LLC) is the major operator of

public railways in Indonesia. It is completely owned by the state, and pays track

access charges to the government. The other operator is PT Kereta Api Jabotabek,

which operates electrified commuter service in the Jakarta metropolitan area. PT

Kereta Api Jabotabek was spun off from the Jabotabek Division of PT Kereta Api

(Persero) on August 14, 2008.

Table 3.1 Track and Length

Java South Sumatera

West Sumatera

North Sumatera

Route-km 2944 649 202

(16 km in operation)

463

Track-km 3362 649 202 463 Traffic 2005 (millions) (Pass-km + tones-kms) 14540 3650 0.036 0.498

% Freight 6 90 100 29 Traffic density / route kms (thousand) 4938.9 5624.0 2.250 1.076

% Revenue 74 22 1 3 Source: PT KAI

Table 3.1 depicts the current operational data of PT. Kereta Api (Persero).

There are currently four regional operations i.e. Java, South Sumatera, West

Sumatera and North Sumatera consisting of 6.700 kms track. 4.000 kms is in

30

operation, while the rest 2.700 kms were closed due to the tight competition with

road transport. This has attracted the attention of local governments to revitalize

them in accordance with the new Law Number 23 / 2007 on Railway. Table 1 also

shows the traffic loads as well as revenue gained from each region.

The recent enactment of Law Number 23 / 2007 on Railway supersedes the

Law Number. 13 / 1992 on Railway. Two significant changes were made, those are

the monopoly of PT Kereta Api (Persero) as the sole service provider has been

abandoned and the local governments may get involved in railway development

within their jurisdictions. As the monopoly privilege of PT Kereta Api (Persero) has

been discarded, other business entities including private sectors are then welcomed to

be involved in the railway sector in the country. However, this may not abruptly

succeed as the foundation for inviting private sector in railway that is not ready yet,

e.g. the institutional framework is still being developed, especially how private

sectors can participate in the existing main railway lines.

3.1.2. Indonesian Railway Organizations

Railway as one of the transportation modes in Indonesia is regulated and

authorized by Ministry of Transportation Government of Indonesia. The ministry

delegates the task to Directorate General of Railway (DGR). DGR responsibilities

consist of area related to railway such as infrastructure, vehicle, traffic, operational

and maintenance standard, and regulation. DGR tasks consist of relationship to the

operator that are making agreement, negotiation, set regulation and standard,

performance evaluation, and maintaining relationship between government, people,

and operator. There are three Directorates inside the DGR; Directorate of Railway

infrastructure handles all related subject with the infrastructure and network

construction, Directorate of Railway Traffic and Transport handles all related subject

with traffic, network operational, timetable, and services, Directorate of Railway

Safety and Vehicle handles all related subject with railway safety and vehicle

performance. The Directorates have direct coordination with the operator as the

railway service provider.

31

Source: www.kereta-api.co.id

The vision of Directorate General of Railways is to establish mass

transportation for passengers and freight that reliable, secure, safe, trustworthy and

affordable. The missions are to improve railway as public transportation, backbone

of freight transport, and as pioneer in creating integrated transportation.

Figure 3.1 Coordination Structure of Directorate General of Railway Source: www.dephub.go.id

PT Kereta Api (Persero) (Railway Corporation, LLC) is the major operator of

public railways in Indonesia. It is completely owned by the state, and pays track

access charges to the government. The other operator is PT Kereta Api Jabotabek,

which operates electrified commuter service in the Jakarta metropolitan area. PT

Kereta Api Jabotabek was spun off from the Jabotabek Division of PT Kereta Api

(Persero) on August 14, 2008.

32

Table 3.2 Passenger Data (000 people) Jawa

Year Jabotabek Non

Jabotabek Jabotabek + Non

Jabotabek Sumatera Total

2006 104.425 51.671 156.096 3.323 159.419 2007 118.095 53.826 171.921 3.415 175.336 2008 125.451 64.688 190.139 3.939 194.078 2009* 119.770 62.441 182.211 3.738 185.959

Source : PT KAI * until November

In doing the core business, PT KAI set a total of 9 Operational Region (DAOP

I Jakarta, DAOP II Bandung, DAOP III Cirebon, DAOP IV Semarang, DAOP V

Purwokerto, DAOP VI Yogyakarta, DAOP VII Madiun, DAOP VIII Surabaya, and

DAOP IX Jember) and 3 Regional Division (DIVRE I Sumatra Utara, DIVRE II

Sumatra Barat, and DIVRE III Sumatra Selatan), which are responsible in

maintaining the infrastructure and the operational of railways.

Company mission is formulated in order to realize the vision of the company

that is, aware of train as the main choice of transportation services with an emphasis

on:

1. Entire society as a customer

2. Leader in safety and reliability

3. Pioneer of sustainable development

4. A healthy financial companies

5. Employee and prosperous nation

The mission of PT KAI is to create the nature of mass transportation for

economic growth and support the other sector. The main task is to engage rail

transport services in order to expedite the movement of people and or goods in bulk

to support of national development.

PT KAI is divided into five directors and headed by a chief executive as a

president director whose duty is to receive instructions from and report to the

Minister of Transportation regarding the implementation of public policy such as to

carry out basic tasks of PT KAI and the other tasks provided by the Department of

Transportation. The five directors -- director of finance, director of railway technique

33

and engineering, director of operation, director of personal and general affair, and

director of business development -- work mainly with production and have

operational responsibility. The Director of operation covers most of divisions and

strategic corporate functions in PT KAI. There are, rolling stock division, training

divisions, property divisions, corporate secretary, centre of planning and

development, centre of safety and risk management, internal audit, regional area of

Jawa (I – IX), and regional division of Sumatera (I – III).

Figure 3.2 Organization Hierarchy of PT Kereta Api Indonesia Source: PT KAI

3.1.3. Project Description in PT. Kereta Api Indonesia

a. Railway Network

In Indonesia, railways cover about 3,362 km in Java and 1,314 km in Sumatra

including South Sumatera, West Sumatera and North Sumatera consisting 6,700 kms

track. 4,000 kms is in operation, while the rest 2,700 kms were closed due to the tight

competition with road transport, with only 10% of this being double-track railway.

The railway networks lines in Java and Sumatera can be seen in figure 3.3 and 3.4.

34

Figure 3.3 Railway Map in Jawa (total length route, 2005: 3.362.000 km)

Source: PT KAI

Figure 3.4 Railway Map in Sumatera (total length route, 2005: 1.314.000 km)

Source: PT KAI

For commuter train, PT KAI has an affiliated company, that is PT KAI

Commuter Jabodetabek (PT KCJ) as a commuter operator in jabodetabek area. PT.

KCJ operates 343,895 km electricity line and track. The railway network in

Jabodetabek area connects hinterland area with Province DKI Jakarta. The railway

network map of operational lines in Jabodetabek can be seen in figure 3.5.

35

Figure 3.5 Railway Map in Jabodetabek Area

Source: PT. KA Commuter Jabodetabek

The service routes of Jabodetabek commuter consists of:

a. Circular Line, with route Jatinegara – Manggarai - Tanah Abang – Duri - Kp

Ambon –Pasar Senen - Jatinegara (29,738 km).

b. South Line, with route Bogor – Depok - Manggarai (44,92 km)

c. Central line with route Manggarai-Gambir-Kota (9,89 km)

d. Bekasi Line with route Bekasi-Jatinegara (14,802 km)

e. Serpong Line with route Serpong - Tanah Abang (23,278 km)

f. Tangerang Line with route Duri - Tangerang (19,297 km)

g. Tanjung Priok Line with route Tanjung Priok - Kota (8,115 km)

b. The Stations

There are 70 stations under the management of PT. KCJ and DAOP I PT. KAI.

The stations under the management of PT. KCJ are the stations specific only to serve

as commuter train. The name of the stations can be seen in figure 3.5. While in table

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3.3 bellow, there are some stations located in Java Island which are divided into 9

(nine) operational regions (Daops).

Table 3.3 Railway Stations in Java

Operation Area Description Operational Region 1 Jakarta

Jakarta operational area is operation zone extended from Merak station (west) in Banten Province to Cikampek station (east) and Sukabumi station (south) across the station in Jakarta province

Operational Region 2 Bandung

Bandung operational area is operation zone extended from Cibungur station (north) to Cipari station (east) and Ranji station (west) across the stations in the north area of West Java province

Operational Region 3 Cirebon

Cirebon operational area is operation zone extended from Tanjungrasa station (west) to Brebes station (east) and Songgom station (south) across the stations in the north area of West Java province

Operational Region 4 Semarang

Semarang operational area is operation zone extended from Tegal station (west) to Kalitidu station (east) and Gundih station (south) across the stations in the north of Central Java province

Operational Region 5 Purwokerto

Purwokerto operational area is operation zone extended from Prupuk station (north) to Purworejo station (east), Sidareja station (west) and Cilacap station (south) across the stations in the south area of Central Java province

Operational Region 6 Yogyakarta

Yogyakarta operational area is operation zone extended from Montelan station (west) to Kedungbanteng station (east) in East Java province, Monggot station (north) and Wonogiri station (south) across the stations in Yogyakarta province

Operational Region 7 Madiun

Madiun operational area is operation zone extended from Walikukun station (west) to Curahmalang station (east) and Rejotangan station (west) across the stations in the south area of East Java province

Operational Region 8 Surabaya

Surabaya operational area is operation zone extended from Bojonegoro station (north) to Blitar station (south) and Mojokerto station (west) across the stations in the north area of East Java province

Operational Region 9 Jember

Jember operational area is operation zone extended from Bangil station (west) to Banyuwangi station (east) across the stations in the east area of East Java province

Source: PT KAI

The condition of emplacement in some stations is lower than the train entrance

door and some are at the same height as the train entrance door, and the length of the

37

emplacement in some of the stations are not as long as the train length. This

condition can cause difficulties for passengers especially for the disable and elderly

people getting on-board and off board.

c. The Vehicles

All locomotive of PT Kereta Api Indonesia are diesel engines. Most new

locomotives use electric transmissions, while older and lighter ones have hydraulic

transmissions. As in 2004, PT KAI operates:

a. 74 diesel multiple units

b. 253 electric multiple units

c. 846 revenues passengers’ car

d. 65 non-revenue passenger car (baggage-generators car and dinning cars)

e. 3214 freight wagons

PT KAI diesels –electric locomotives are mostly US or Canadian built, while

the diesels-hydraulic are mostly Germany. Electric multiple units are made in Japan

and Dutch. Local industry is capable of building multiple units, both diesels and

electric.

In addition, PT. KCJ as an operator of commuter train in Jabodetabek operates

395 units electric train (KRL). There are three type of commuter train; non Air-

Conditioned (non AC) economic commuter, Air Conditioned (AC) economic

Commuter and Air-Conditioned (AC) express commuter. The non AC economic

commuter and AC economic Commuter are trains included in the government

subsidy. The AC express commuter is train operated by PT. KCJ using their own

expenses.

d. Cost & Fare Payment

Tariff for train transportation is differentiated by origin-destination and type of

service (commuter, business and executive). Nevertheless, for economic commuter

class, passengers pay less than the actual price because the government gives

subsidies for this class. The ticket for commuter passenger is available in retail and

periodic. Retail ticket is in form of paper while periodic in form of periodic card.

Meanwhile, passengers (executive and business) can book the ticket through:

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1. Counter sales and reservations at the station

a. Sales through the counters at the stations are served or open three hours

before the departure of trains;

b. Tickets can be booked 30 days earlier up to three hours before departure;

c. Ticket payment is in accordance with the relevant railways tariff;

2. Booking through Central Reservations

a. Train tickets purchase or reservations are served 30 days earlier up to hours

before departure of trains;

b. Passengers can come directly to book tickets by cash and directly get the

desired tickets[

3. Sales through agents

a. Sales through agents are served 30 days earlier up to one day before

departure;

b. Passengers can come directly to purchase the tickets by paying the

registration fee and extra charge;

4. Sales through Call Center

a. Sales or reservation through this system can be done in the Call center by

dialing number (121 and 021-21391121);

b. After that, passengers will get a booking code, so passengers can make

payments via e-banking;

c. Payments are made maximum 3 (three) hours after receiving the booking

code;

d. ATM payment receipt should be collected to the counter and then exchanged

for the sale of the station which is already online;

e. Booking a ticket is considered void if payments through ATM was not done

within three hours;

f. Booking a ticket through Call Center is served 30 days earlier up to 1 day

before departure time;

5. Sales through Post Office (PT POS)

a. Booking a ticket through this system is served 30 days earlier up to 2 days

before departure time;

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b. In reservations, passengers can directly pay the fare for train tickets, plus

extra charge;

c. Then the receipt will be used to redeem the ticket at the station;

3.2 Customer Satisfaction Index in PT KAI

To describe the level of service quality in PT KAI operation can be done by

seeing the existing condition. The existing condition data is obtained from the

railway operator and community website (complaint database).

Table 3.4 Performance Report of PT KAI

Year Item of Report

2003 2004 2005 2006 2007

Passenger Train Departure right on time (%) 80 81 70 82 84 Departure late (%, max. minute) 20 (8) 19 (7) 30 (5) 18 (4) 16 (3) Arrive right on time (%) 19 21 22 23 26 Arrive late (%, max. Minute) 81 (56) 79 (41) 78 (40) 77 (46) 74 (41)

Freight Train Departure right on time (%) 24 21 23 25 34 Departure late (%, max. minute) 76 (187) 79 (72) 77 (85) 75 (80) 66 (80) Arrive right on time (%) 24 22 19 19 26 Arrive late (%, max. Minute) 76 (204) 78 (86) 81 (112) 81 (107) 74 (95) Signaling problem (frequency) 3354 1650 1600 1550 1933 Locomotive baulk (frequency) 1719 1552 1519 1724 1787 Average WPG (days) 3.38 3.41 3.27 3.11 2.99

Source : PT KAI

It can be seen from table 3.4 that at present railways operation is still colored

with the delay. The delay in railway operational happens when there are obstacles

that make the train stop or hold up the speed. There are also some technical problems

causing delay in commuter railway operation such as electricity shortage. This leads

to traffic jam when another train coming into the line. The signaling can also become

the cause of delay. Without signaling the train driver have no sign about the lines

situation and the driver would not taking risk to endanger the operational.

Not only from punctuality aspect, complains related to appearances and

comfort including cleanliness, safety and security are faced by PT KAI. According to

40

the commuter website, many passengers complain the safety and security on train

and at the station. Many cases of robbery and pickpocket happen everyday especially

in non AC economic commuter.

Accessibility also becomes problem for the disabled people. There is no

particular space for people with disabilities. Wheelchair users are difficult to use

train service. The elderly people and pregnant women sometimes face problems in

using train services as the access to the train is difficult and not comfortable for

them.

From those explanations, it can be concluded that customers of railway

transportation are not satisfied with the quality of service. This indicates that the

quality of railway service is below passengers’ expectation. This means that the level

of service given by PT KAI as a train operator is still dissatisfying.

3.3 Complaint Handling System in PT KAI

An effective complaint handling system is an essential part of providing quality

service. It is a measure of customer satisfaction. It provides positive feedback about

aspects of the service that work well, and is a useful source of information for

improvement. Complaint handling basically is activity to deliver complain, process

of respond to the complaint, feedback and report of complaint handling (Tronvoll

2008).

Responding to a complaint will be easier if the organization already have a

system in place to deal with complaints in a practical way and a mechanism by which

complaints are welcomed, received, investigated and resolved. A complaint handling

policy and procedure, which customers are informed about will assist in the

resolution and management of a complaint.

PT KAI as a train operator in Indonesia has provided call center, customer

service and the media of website (especially for PT KAI Commuter Jabodetabek) for

customers that want to make a complaint if they feel dissatisfied with PT KAI

services. PT KAI also has fans community website and community of customer

website which also gives spaces for complaining. The form of complaint from

website can be seen in figure 3.6. Unfortunately, session interview between

researchers with the operator representative have not been realized. Therefore, the

information about this item is limited.

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Figure 3.6 Complaint Form in KCJ Website

Source: www.krl.co.id

However, the fast response and feedback on complaints that was sent by the

passengers of train only could be felt at the beginning time of launching this system

and until now, the quality of the response to customer complaint increasingly

decrease. Figure 3.7 shows the statement from one of train passengers that felt

dissatisfaction about the complaint handling system in PT KAI.

“Does the website to provided for making a complaint still function… ???? There

never was an answer… and from 6.35 am there are only 6 compartments of Express

train (Depok – Tanah Abang)”

Figure 3.7 Customer Complaint

Source: www.krl.co.id

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Based on the perspectives of the train users, it seems that the customer complaint

handling is still not yet effective. Therefore, it does need improvements.

3.4 Service Guarantee in PT KAI

A service guarantee is a promise by a firm that they will perform at a certain

level and, if that level is not met, the firm also promises to compensate the customer

in some ways. Even service guarantees have been claimed to be an important device

for achieving total customer satisfaction after a service failure (Sasser at al., 1991),

PT KAI as a train operator in Indonesia still does not have this policy, but the

information about this item is limited.

3.5 Statens Järnvägar (SJ) AB, Sweden

3.5.1 Introduction

The first railway in Sweden started operating in 1856, between Örebro and

Nora. This was also the year in which the Swedish State Railways, SJ, was founded

(SJ, 2004). In 1862, the two largest cities in the country had a railway connection,

and SJ started its traffic. In the following years, many railways were built, and most

of them were private (in 1990, there were twice as many private tracks as publicly

owned, (Kullander, 1994)). The demand for steel increased strongly at the turn of the

20th century, and the large resources in the north of Sweden, become worth

exploiting due to the building of the railway (which solved the transport problem)

and new processing technique. By 1910, Sweden had 12.000 kilometers of railway –

in 2003, about the same track length, 11.697 kilometers, is in use (Banverket, 2004).

In the Swedish rail sector, there are government authorities, private companies

and public companies working. The former Swedish Railways (Statens Järnvägar,

SJ) is now SJ AB (SJ AB), state owned joint stock company and runs merely

passenger traffic. The government authority of the National Swedish Rail

Administration (Banverket) is responsible for infrastructure and rail network. There

are also some 20 – 30 private companies operating in as well national areas as local

areas. Some examples: Green Cargo AB, Connex Sverige AB, Citypendeln Sverige

AB, DSB Sverige AB (Danish owned), Inlandsbanan AB, Roslagståg AB, Svenska

Tågkompaniet AB. Stor-Stockholms Lokaltrafik (SL) runs passenger traffic and is

also an entrepreneur in the Stockholm region.

43

SJ AB became a 100% state-owned joint stock company on 1 January 2001. Its

first activities as the state railway company in Sweden started in 1856. SJ has

currently about 3,500 employees. SJ has 90% market share of the passenger traffic of

long distances in Sweden. Also, SJ has currently 55% of the total train traffic in

Sweden. In 2001 SJ was divided into six independent companies out of which SJ AB

is one. Out of the five other companies one is in freight transport, Green Cargo AB.

The other four companies are in maintenance, real estate, terminal service and IT.

SJ’s business operations focus on three primary areas:

1. Quality, for SJ, quality means punctuality, service customer and providing clean

trains that are in good working order. Developing SJ service culture is a key

focus area and their aim to get even closer to their customer. SJ introducing a

small organizational structure to help SJ staff to better equipped to offer a high

quality travel experience.

2. Freedom of choice, freedom of choice is important and SJ committed to enabling

customer to decide the content of their journey. Passengers can choose a lower

level of flexibility by declining optional extras and thereby reduce the ticket

price. Alternatively, they can increase service and flexibility by purchasing

rebookable or cancelable tickets and rebookable meals and other services. SJ

mission is for all customers to tailor their journeys to their individual needs and

interest.

3. Growth, demand for rail has risen sharply in recent years and is anticipated to

continue growing. To meet this demand, SJ offering tickets at attractive rates to

encourage people to travel when there is plenty of space onboard, a strategy that

has proved successfully. SJ are also expanding seat capacity on peak morning

and afternoon services by using longer trains.

3.5.2 Sweden Railway Organization (Statens Järnvägar (SJ) AB)

Statens Järnvägar (SJ) AB have a straightforward vision that its call “All

Aboard”. It involves people seeing the train as their first alternative when planning a

journey. SJ AB business concept is to provide travel on the passenger’s own terms.

This means offering individuals, business travelers and long-distance commuters an

attractive form of travel.

44

The mission of SJ is to offer value-for-money rail travel to passengers in

Sweden and beyond that enables them to fulfill their planned activities on board and

on arrival at their destination.

Source: www.sj.se

SJ is divided into seven divisions and six strategic corporate functions. The

seven divisions, one for Southern Sweden Division, another for Northern Sweden

Division, Long Distance Traffic Division, Subsidiaries Division, Sales Division,

Rolling Stock Division and Production Division, work mainly with production and

have operational responsibility. Production division covers most of the employees,

up to 2000, amongst others those working onboard the trains, including the train

drivers for vehicles. In the division for Rolling Stock, SJ have placed everything

from acquisition and maintenance of vehicles to rail switches. The division for Sales

covers both our own SJ travel offices (SJ Resebutik), situated at train stations, as

well as customer service and telephone sales. The division is also in charge of

external sales contacts such as travel agencies. The strategic corporate functions of

Marketing & Information, Legal, Administration, Finance & Accounts, Traffic safety

and External relations are responsible for strategic direction and coordination.

45

Figure 3.8 Organization Hierarchy of Statens Järnvägar (SJ) AB, Sweden Source: www.sj.se

3.5.3 Project Description in Statens Järnvägar (SJ) AB, Sweden

a. Railway Network

Rail transport in Sweden uses a network of 12.821 km (include 3.594 km of

privately owned railways) of track, the 20th largest in the world. Construction of the

first railway in Sweden began in 1855. In 1853 the Swedish Parliament decided that

the state would build main line railways, but that other lines would be built by

private enterprise (often with cities as main owners), and in 1856 the first stretch,

between Örebro and Nora (a private railway), was opened for traffic.

The first two main line railways were the Southern, stretching from Stockholm

to Malmö in the south, and the Western, to Gothenburg in west. These line railways

were finished between 1860-1864. The Northern railway runs parallel to the Baltic

cost (but not along it) up to Boden in northern Sweden, and was finished in 1894.

The Inland Railway runs from Gällivare in the north to Kristinehamn in the center of

the country, through the central parts of northern Sweden, and was built between

1908-1937.

There used to be six main lines (stambanor), all nationally owned:

a. Västra stambanan (Western main line), 453 km, Stockholm-Gothenburg through

Katrineholm-Halsberg-Låxa-Falköping.

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b. Södra stambanan (Southern main line), 381 km, Malmö-Falköping through

Nässjo-Jönköping.

c. Östra stambanan (Eastern main line), 216 km, Nässjö-Katrineholm through

Mjölby-Linköping-Nörkpöing.

d. Norra stambanan (Northern main line), 484 km, Stockholm-Ånge through

Uppsala-Avesta Krylbo.

e. Stambanan genom övre Norrland (Main line through upper Norrland), 629 km,

Bräcke-Boden through Långsele-Vännäs.

f. Nordvästa stambanan (Northwestern main line), 209 km, Laxå-Norwegian border

through Karlstad-Kil-Charlottenberg.

Also these line have for a period been called main lines:

a. Mittbanan (Norrland cross line), about 500 km, Sundsvall-Norwegian border

through Ånge-Östersund.

b. Inlandsbanan, about 1300 km, Kristinehamn-Gällivare through Mora-Östersund.

Figure 3.9 Railway Map of Sweden

Source: www.banverket.se

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b. The Stations

In table 3.5 bellow, there are some railway stations in Sweden. Unfortunately,

the data is not enough to explain more about station condition. In general, the

operation of stations is not the responsibility of SJ but municipality and government

board (banverket). Some of these station buildings are owned by private. From the

observation, the overall condition of station is already suitable with technical

standard and specification in related regulation.

Table 3.5 Railway Station in Sweden

Station City Municipality Opened Abisko turist station Abisko Kiruna Abisko östra Abisko Kiruna Alingsås Alingsås Alingsås Alvesta Alvesta Alvesta Älvsbyn Älvsbyn Älvsbyn Ånge Ånge Ånge Ängelhom Ängelhom Ängelhom Âre Âre Âre Arlanda central station Arlanda Sigtuna Arvika Arvika Arvika Avesta-Krylbo Avesta Avesta Bastruträsk Bastruträsk Norsjö Bergasa Karlskona Karlskona Björkliden Björkliden Kiruna Boden central station Boden Boden Bollnäs Bollnäs Bollnäs Borlänge central station Borlänge Borlänge Bräcke Bräcke Bräcke Bräkne-Hoby Bräkne-Hoby Ronneby Bromölla Bromölla Bromölla Charlottenberg Charlottenberg Eda October 3, 1862 Degerfors Degerfors Degerfors Duved Duved Âre Ed Ed Dals-Ed Emmaboda Emmaboda Emmaboda Enköping Enköping Enköping Eskiltuna central station Eskiltuna Eskiltuna Falkenberg Falkenberg falkenberg Falköping central station Falköping Falköping Falun central station Falun Falun Fjällåsen Fjällåsen Kiruna Flemingsberg Flemingsberg Huddinge Flen Flen Flen Gällivare Gällivare Gällivare Gävle central station Gävle Gävle 1877 Gothenburg central station Gothenburg Gothenburg October 4, 1858

48

Continued Table 3.5 Station City Municipality Opened

Halmstad central station Halmstad Halmstad Härnösand Härnösand Harnosand Hässleholm central station Hässleholm Hässleholm Helsingborg central station Helsingborg Helsingborg Herrljunga Herrljunga Herrljunga Höör Höör Höör Hudiksvall Hudiksvall Hudiksvall Jönköping central station Jönköping Jönköping Jörn Jörn Skellefteå Kalmar central station Kalmar Kalmar Karlshamn Karlshamn Karlshamn Karlskona central station Karlskona Karlskona Karlstad central station Karlstad Karlstad 1869 Katrineholm central station Katrineholm Katrineholm Katterjåkk Katterjåkk Kiruna Kil Kil Kil Kiruna central station Kiruna Kiruna Knivsta Knivsta Knivsta Köping Köping Köping Kristianstad central station Kristianstad Kristianstad Kristinehamn Kristinehamn Kristinehamn Kungsbacka Kungsbacka Kungsbacka Läggesta Mariefred Strängnäs Låktatjåkka Låktatjåkka Kiruna Laxå Laxå Laxå Leksand Leksand Leksand Linköping central station Linköping Linköping 1872 Liseberg Gothenburg Gothenburg 1993 Ljusdal Ljusdal Ljusdal Luleå central station Luleå Luleå Lund central station Lund Lund 1858 Malmö central station Malmö Malmö 1856 Märsta Märsta Sigtuna Mellansel Mellansel Örnsköldsvik Mjölby Mjölby Mjölby Mora Mora Mora Morjärv Morjärv Kalix 1910 Mörrum Mörrum Karlshamn Motala central station Motala Motala Murjek Murjek Jokkmokk Nässjö central station Nässjö Nässjö Norrköping central station Norrköping Norrköping 1866 Nyköping central station Nyköping Nyköping Örebro central station Örebro Örebro 1862 Östersund central station Östersund Östersund Riksgränsen Riksgränsen Kiruna Ronneby Ronneby Ronneby Sala Sala Sala Sandviken Sandviken Sandviken

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Continued Table 3.5 Station City Municipality Opened

Söderhamn Söderhamn Söderhamn Södertälje centrum Södertälje Södertälje Södertälje syd lower Södertälje Södertälje Södertälje hamn Södertälje Södertälje Södertälje syd upper Södertälje Södertälje January 4, 1995 Sölvesberg Sölvesberg Sölvesberg Stockholm central station Stockholm Stockholm July 18, 1871 Stockolms sodra Stockholm Stockholm 1860 Storlien Storlien Åre 1886 Strängnäs Strängnäs Strängnäs Sunderby sjukhus Luleå Luleå Sundsvall central station Sundsvall Sundsvall Tierp Tierp Tierp Tranås Tranås Tranås Trollhätan Trollhätan Trollhätan Uddevalla central station Udevalla Udevalla Umeå central station Umeå Umeå Uppsala central station Uppsala Uppsala 1866 Vänersborg central station Vänersborg Vänersborg Vännäs Vännäs Vännäs Varberg Varberg Varberg Värnamo Värnamo Värnamo Västerås central station Västerås Västerås Västervik Västervik Västervik Växjö Växjö Växjö Vindeln Vindeln Vindeln

Source: Banverket

c. The Vehicles

For the operation, SJ divided their fleet (train) into three types, there are:

1. Double-decker trains

SJ has 24 double-decker trains especially for regional service with frequent stop.

2. X 2000

X 2000 offers the highest level of comfort and is the mainstay of our long-

distance rail services in Sweden. The standard and equipment of the trains make it

possible to utilize the time onboard efficiently. Forty X 2000 trains operate primary

on the Stockholm-Gotenborg, Stockholm-Malmo, Stockholm-Sundsvall, and

Stockholm-Karlstad routes.

3. InterCity and Night Trains

Classic trains for inter-regional travel day and night. InterCity trains operate on

medium-distance routes. All of them include a bistro carriage and on some routes a

50

movie and family carriage. SJ Night trains concept includes overnight

accommodations, which gives travelers the opportunity to relax with entertainment

alternatives en route. Night trains offer different levels of comfort, including sleeper

and couchette carriages with your own or a shared compartment. Combinations of

113 engines and 524 carriages as well as 156 sleeper and couchette carriages are

adapted to demand on each route.

d. Cost & Fare Payment

SJ’s prices are determined based on supply and demand. It is cheaper to book a

ticket when there are a lot of seats available and more expensive when the train is

nearly full. A simple way to travel less expensively is to choose a less popular

departure. If passenger have to travel at a certain time, it is important to book in

advance. If passenger reserve a ticket 90 days before departure, passenger can travel

anywhere in Sweden at a low price. The price then goes up each day passenger get

closer to departure, depending on how full the train gets. Even if passenger book the

last minute, there is a chance to find cheap tickets. Two days before departure the last

tickets are auctioned off at an opening bid of one krona. The auction is open for bids

until six hours before the train is scheduled for departure.

SJ’s pricing model gives as many people as possible the opportunity to take the

train. That’s because SJ trains are better filled, and a full train is more profitable than

one that is half full. Being profitable means SJ can reduce passenger prices even

more.

For fare payments, to take advantage of SJ offers, customers need easy access

to SJ sales locations. Distribution is designed with four watchwords in mind:

simplicity, accessibility, cost efficiency and proximity. Tickets are sold through both

manual and electronic channels. Manual sales are handled by SJ sales outlets, contact

center and to a lesser extent onboard trains. Some of SJ trips and options are also

sold through travel agencies and Pressbyrån/7-Eleven stores, making them even more

widely available. SJ have 32 stores and around 400 retailers. Electronic sales are

handled through ticket machines and SJ’s website. In 2009, SJ launched a web

solution that allows customers to buy tickets by mobile phone. Some customers want

to be able to travel without a ticket. In addition to mobile phone tickets, SJ offer

three alternatives. In Mälardalen, passengers can travel ticket-free with a TiM-

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Resekort. Membership in the SJ Prio customer loyalty program or an ID card also

allows them to travel without a ticket. SJ large corporate customers can use a special

website to easily find customized solutions. Customer also have access to simplified

invoicing routines and travel statistics. About 85 percent of SJ sales volume is

through four main channels: (www.sj.se), travel agencies, the contact center and SJ’s

Resebutik outlets. The Internet is clearly the largest sales channel, with about 40

percent of total sales, and at the same time the fastest growing. In the future, self-

service options are expected to continue to grow, especially among commuters.

3.6 Customer Satisfaction Index in Statens Järnvägar (SJ) AB, Sweden

This part describes the existing condition of Statens Järnvägar (SJ) AB service

performance. Data were obtained from document review, such as SJ Annual Report

2001 until 2008. These documents were obtained officially from Statens Järnvägar

(SJ) AB.

SJ AB puts great emphasis on listening to its customers. SJ AB wants to know

what their customers think of SJ and what SJ can do to improve customer travel

experience. SJ AB invests heavily in measuring customer attitudes annually via

Customer Satisfaction Index (CSI). The index is based on questions put to customers

while traveling onboard SJ train, an approach that their belief best captures the full

range of feeling and attitudes towards SJ services. The survey measures satisfaction

with SJ as a company and their products and services, as well as their success in

meeting customer expectations.

Table 3.6 Customer Satisfaction Index in SJ AB, Sweden

Customer Satisfaction Index – SJ AB 2006 2007 2008 Comfort 71 73 72 Information 73 75 76 Punctuality 63 61 59 Customer care 73 74 73 CSI Total 1) 71 73 73 1) Each question is asked separately, including the “Overall SCI for SJ” metric. Source: SJ Sustainability Report 2008 (www.sj.se)

From table 3.6 above, it can be seen that in 2008 the overall CSI was 73, which

respondents to a rating of “Good”. Onboard comfort has a big impact on customer

satisfaction. Comfort includes basic questions like whether a train is clean,

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comfortable and in good working order, and whether there are working toilettes and

adequate luggage space. The current customer rating for onboard comfort is 72. The

data has held steady at a satisfactory level for the three years. Onboard customer care

is another key component to of customer satisfaction. SJ customer care rating of 73

in the CSI has held steady in the recent years.

Clear and readily available travel information is a vital service to customers.

With regard to information provided onboard trains, SJ improved their CSI value in

2008 (76) compared to 2007 (75). In the case of traffic delays, it is particularly

important to quickly inform passengers of the underlying cause, whether further

delays are expected and how their connection are affected. In such instances, it is

important that SJ staffs are visible and available to answer question.

As an element in providing better information, SJ equipped all train attendants

with new handheld computers in 2008. Linked to traffic centers locally and

nationally, they allow attendants to keep track of delays and other traffic disruptions.

Information can then be passed on to customers, including the length of the delay,

the availability of replacement services and other connections. In 2008, SJ also

improved its cooperation with Banverket in the area of traffic information, including

announcements at stations and on trains. This will provide greater clarity for travelers

and help to ensure that SJ always provide accurate, up-to-date information. SJ

continuously reviews traffic information, and www.sj.se is becoming an increasingly

important tool in this work.

Punctuality is SJ principal quality metric. In 2008 average punctuality,

measured as the percentage of trains arriving at their destination within five minutes

of the scheduled time, was 90 percent (90). SJ has ambitious goals with regard to

punctuality, which is not yet satisfactory on certain lines.

Table 3.7 Punctuality in SJ AB Sweden

Punctuality, SJ AB, % 2003 2004 2005 2006 2007 2008 Target 2009

All SJ Trains 1) 92 93 91 90 90 90 93 X 2000 72 81 77 74 74 69 Long distance trains 88 87 84 82 85 85 Regional trains 92 93 91 89 91 91 Commuter train 95 95 95 95 93 94

1) Excluding Stockholmståg. Source: SJ Sustainability Report 2008 (www.sj.se)

53

Many of SJ delays are caused by external factors such as collisions with wild

animals, fallen trees and power cuts. Since the rail network is congested, particularly

in metropolitan areas at peak times, delays on one line often affect other trains in the

system and cause additional delays.

3.7 Complaint handling System in SJ AB, Sweden

An effective complaint handling system can be an important quality

improvement tool. Many studies emphasize that customer feedback and complaint

should be welcomed and encouraged by the service provider because they generate

valuable information (Nyer and Gopinath 2005; Reynolds and Harris 2006; Tax and

Brown 1998). Unfortunately session interview between researchers with the operator

representative in SJ AB have not been realized. Therefore, the information about this

item is limited. In this case researchers only use related documents in SJ AB

including, General terms and condition for carriage by rail documents (GCC-

CIV/PRR), Swedish Rail Carriage Act, and Regulation (EC) No 137 /2007 of the

European Parliament and of the Council of 23 October 2007 on rail passengers rights

and obligations.

When customers were facing the problem in the service of SJ AB as a train

operator in Sweden, they could convey their complaint to SJ AB through email,

website and customer service. SJ AB recorded and kept the complaint data in the

database. Complaints where the customer has requested a response will be responded

to within 5 working days of receiving the complaint.

In the event a passenger wishes to report a circumstance which entitles him to

compensation or assistance pursuant to these General Terms and Conditions (about

complaints and settlements of disputes), they should firstly contact the train staff or

the staff at staffed points of sale. Where such staff cannot make a decision regarding

compensation, the passenger should, not later than within three months, submit his

claim to SJ AB's Customer Service or via SJ AB's website (www.sj.se) or otherwise

in writing to SJ AB. Agreements regarding compensation entered into between a

passenger and train staff or staff at staffed points of sale must be noted on the ticket

or otherwise in writing. In the absence of any notation, the party wishing to invoke

an agreement must prove the existence and terms of such agreement.

54

The system of customer complaint handling from Statens Järnvägar (SJ) AB,

Sweden could be as guidance for PT KAI to implement the process to handling

complaint from customer and at least it can decrease the number of complaints about

services provided by PT KAI using the effective mechanism of customer complaint

handling system.

3.8 Service Guarantee in SJ AB, Sweden

A service guarantee is a statement that clarifies what the customers can expect

from a service, and what the company will do to rectify the situation if the service

does not meet expectations. Travel time guarantee is one of service guarantee. In SJ

AB Sweden, this guarantee was based on EU Directive and EC Regulation

1371/2007 that had been amended as of 10th October 2009. The roles of the

guarantee in SJ AB Sweden are:

1. A delay of 60-119 minutes grants a 25% refund on the ticket price.

2. A delay of 120+ minutes grants a 50% refund on the ticket price.

3. If you buy your ticket with SJ Prio points, you will receive compensation as per

the model above, but in SJ Prio points.

4. Cash compensation replaces credit values.

5. If the delayed journey is a single journey, and the compensation sum (per

passenger) is less than SEK 30, no compensation will be paid.

If the train delay lasts at least 60 minutes, passengers can claim compensation for:

1. Emergency telephone calls

2. Reasonable added expenses for food and accommodation

Travel time guarantee for multi-ticket travelers, the same delay rules apply as for

other travelers:

1. Annual pass – The price of the annual pass/240 (25% or 50% of the ticket price,

depending on the extent of the delay)

2. Monthly pass – The price of the monthly pass/36 (25% or 50% of the ticket price,

depending on the extent of the delay)

3. Annual commuter pass – The price of the annual commuter pass/360 (25% or

50% of the ticket price, depending on the extent of the delay)

4. Period pass 10 trips in 30 days – The price of the period pass/10 (25% or 50% of

the ticket price, depending on the extent of the delay)

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5. There is no lower limit for travel time guarantee compensation for season

travelers

To apply these guarantee compensation, customers can use official website of

SJ AB Sweden or the agent or representative from whom customers bought the

ticket. The complaint should be made within three months to SJ AB.

SJ AB shall have no liability when the delay, missed connection, or

cancellation can be attributed to any of the following causes:

1. Circumstances which are not linked to the operation of the railway which SJ AB

could not have avoided or the consequences of which it could not have

prevented, even if SJ AB had taken the care dictated by the circumstances;

2. Error or negligence of the passenger;

3. Behavior of a third party which SJ AB could not have been avoided or the

consequences of which it could not have prevented, even if SJ AB had taken the

care dictated by the circumstances. Another company which uses the same

infrastructure shall not be deemed a third party, nor shall the administrator of the

infrastructure.

SJ AB shall also have no liability when the delay, missed connection or

cancellation was known to the passenger, by means of information which he received

prior to his purchase of the ticket or when the passenger, notwithstanding the delay

or after rebooking arrived at the final destination station on time or subject to a delay

not exceeding 60 minutes.

The service guarantee policy from Statens Järnvägar (SJ) AB, Sweden, could

be used as guidance for PT KAI to implement this policy and at least it can increase

customers satisfaction when using train as a transportation choice.

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CHAPTER 4 RESEARCH METODOLOGY

This chapter presents the research approach used in this study, research

flowchart, research design & questionnaire, respondents, study area, research tool,

procedure and data analysis method. At the end of this methodology, part of validity

and reliability issues will be discussed to follow the quality standard of the research.

4.1 Research Flowchart

A flowchart for the research must be arranged before, to be able to conduct the

research systematically. The function of the flowchart is a navigator, to carry out the

research effectively. The flowchart of this research can be seen as below:

Figure 4.1 Research Flowchart

57

4.2 Research Design & Questionnaire

The questionnaire was divided into three parts: (1) items measuring satisfaction

towards PT KAI services with accessibility of station, availability of parking

facilities, fare payment & queuing the ticket, travel time, staff behavior, punctuality,

facilities for disabled, security, cleanliness, comfort and complaint handling system.

(2) complaint questionnaire to measure factors from service quality factors that

influence the passengers to make a complaint, the related item concern about travel

time, punctuality, information, cleanness, staff behavior, comfort, fleet availability,

security and safety condition on station, and information. (3) Demographics, the

questioner item correspondents of age, sex, last education, average wage and

frequency of using train transportation.

Respondents were asked to rate their satisfaction perception for service given

by PT KAI (in parts 1) and also rate their important perception about factors of

service quality that influence them to make a complaint (in parts 2). The

questionnaires were developed based on Benchmarking in European Service of

Public Transport survey’s tool and previous research conducted in Jogjakarta (Liden

et al. 2008). These questionnaires use Likert type format. The Likert-type format is

designed to allow customers to respond in varying degrees to each item that

describes the service. Likert-type scale rate from very bad, bad, neutral, good and

very good for questionnaire item in parts 1, and very not important, not important,

neutral, important and very important for questionnaire item in parts 2.

4.3 Respondents

The respondents are those who use train transportation when this survey was

conducted.

4.4 Sample Size

According to Gorsuch (1974) standard sample theory suggested that the

minimum respondent sample for factor analysis survey is “n = 5 X number of

variables in question”. In this research total of question is 20, then n = 5 X 20 = 100

respondents. While Santoso S. (2006) declare that for factor analysis survey, the

minimum respondent sample is around 50 to 100 respondents. The total of

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respondents for this research is 375 respondents consisting of 125 respondents for

each class of passengers (commuter class, business class, and executive class).

4.5 Study Area

Data collection was conducted in train station from passeengers in Jakarta

including Bogor, Tangerang, Bekasi and Depok, Pekalongan and Yogyakarta

province.

4.6 Research Tool

There are some tools and materials need to be prepared before collecting the

data in the field. The tools and materials are:

1. Pen/pencil, clipboard, used to fill in the survey (questionare) forms

2. Personal computer, used to process the data collected

3. Questionare form, used to record the data

4. Camera, used to get a picture in the field.

4.7 Procedure

The data were collected via field survey in the station located in Jakarta,

Yogyakarta and Pekalongan. Jakarta (Jabodetabek) was chosen for short distance

train (commuter train passenger) because in this area there are many passengers

using train to commute for their activity. Yogyakarta and Pekalongan were chosen

for long distance train (business and executive train passenger). In Yogyakarta and

Pekalongan, data were collected at 8-10 in the morning and at 4-7 in the afternoon,

because during this time actually business and executive trains usually departed and

arrival. For Jakarta area, data were collected during the working hours at around 8

a.m - 4 p.m.

In this study, the researcher uses self-rating questionnaire as a data collection

method. The respondents were asked to fill out the questionnaire at the train stations.

Those who declined to participate in the survey were asked why they had chosen not

to participate; the most common reason given was that they did not have time to fill

out the questionnaire. Data collection was terminated when the surveyor had reached

and collected data from 375 respondents.

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4.8 Type of Data

In this research, the data were divided into secondary data and primary data.

1. Secondary Data

The secondary data is data which is collected to support the primary data and as

comparison to other studies. The secondary data in this research are obtained from

the institution or organizations associated with the research object such as

Directorate General of Railways (DGR) Ministry of Transportation, PT. KAI,

PT. KA Commuter Jabodetabek (PT. KCJ), Banverket and Statens Järnvägar

(SJ) AB, Sweden, both directly go to those offices or through the official website.

Secondary data required are as follows:

a. Complaint handling management system, service guarantee policies, and

service standards associated with the railways services

b. Other supporting data about characteristic of service operation such as:

railway network, the number of users, the number of stations and fleets, the

fare structure, and customer satisfaction index

2. Primary Data

The primary data is data which are collected in the field based on the existing and

reality condition. This data were conducted by questionnaire survey.

4.9 Data Analysis

The aim of this study is to know the service quality attributes that have

significant influences on customer satisfaction towards PT KAI Services for

Commuter class, Business class, and Executive class, and are there influence

between customer satisfactions towards provided service and the desire to do a

complaint. Questionnaire is the most common tool to investigate the similar aim.

Statistical tools (SPSS) were use for data input and analysis. The data that were

collected will be analyzed using statistical method. There are:

a. Statistic Deskriptve Analysis, in this statistic analysis, the data will be presented

with some simple tables as well as frequency distribution tables, line and/or stick

diagram, pie chart, gouph description through modus median, and variation

thrugh standard deviation.

b. Factor Analysis, this analysis is for finding the factor that has significant

influences on customer satisfaction towards PT KAI Services. Analysis are

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divided into 3 classes of customer, there are; commuter class, business class, and

executive class.

c. Regression Analysis, this analysis is for finding where there is influence between

customer satisfactions towards provided service and the desire to do a complaint.

4.10 Validity and Reliability

The principles of validity and reliability are fundamental cornerstones of the

scientific method and it is a key concept in quantitative research. Together, they are

at the core of what is accepted as scientific proof, by scientist and philosopher alike.

Validity measures the extent to which the results of the study measured what they

were intended to measure. In the other hand, Reliability measures whether the

research is replicable in the similar situations or not.

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CHAPTER 5 ANALYSIS AND RECOMENDATION

This section contains finding from statistical analysis. Demographic statistics,

factor analysis and regression analysis are performed on the collected data. The

additional finding from local measurement is also included to enrich

recommendation that could be applied in local area.

5.1 Research Result

5.1.1 Steps of Analysis

To achieve the prescribed objective, a step of data analysis must be arranged

before. Method will perform the following logical steps as schematically shown in

figure 5.1.

Figure 5.1 Steps of Analysis

As mentioned before, the aim of this study is to know the service quality

attributes that have significant influences on customer satisfaction towards PT KAI

services for Commuter class, Business class, and Executive class. In addition, are

there influence between customer satisfactions toward provided service and the

desire to do a complaint. This step can be used as a navigator, to carry out the

research effectively. Details of step can be explained below:

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1. Step 1: Since respondent profile is very important to know the background and

characteristic of the respondents, it is included in the survey forms. These data

will be analyzed using statistic descriptive analysis. From this analysis we can

understand the data percentage about respondents such as age, sex, education,

average income and occupation.

2. Step 2: In this step, by using customer satisfaction questioner (form 1) the

researcher wants to analyze the service quality attributes from 20 item

questionnaires that have significant influences on customer satisfaction towards

PT KAI Services. In this analysis, the researcher also divides customer into 3

classes: commuter, business and executive class. These data will be analyzed

using factor analysis. This analysis reduces the attribute space from a larger

number of variables to a smaller number of factors.

3. Step 3: After the result of factor that has significant influences to customer

satisfactions had been analyzed. The next step is analyzing whether there is

influence between customer satisfactions towards provided service (smaller

number of factors) and the desire to do a complaint. This data will be analyzed

using regression analysis.

5.1.2 Demographic Data Analysis

In this section, the results of analyzing demographic questions are given. 6

questions were asked in section (part) 3 of the research questionnaire about the

passenger sex, age, education level, job and profession, frequency of travel in month

and average income per month.

Gender

From the demographic data, it can be seen that the proportion of male user for

commuter class, business class, and executive class is grater than female user (see

table 5.1).

Table 5.1 The Number of Respondent Based on Gender

Commuter Class Business Class Executive Class Gender

Respondent % Respondent % Respondent % Male 101 80.8 111 88.8 89 71.2 Female 24 19.2 14 11.2 36 28.8

Total 125 100 25 100 125 100 Source: Data Analysis Result, 2010

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From the data, it can be seen that approximately 81 % male users choose

commuter class. This also may mean that because male is the main breadwinner for

their families, it is logical that most of the commuter train users are males who use

these modes to support their daily work activities.

Meanwhile for long distance train, from 125 respondents for each class (business

and executive class) 11,2 % female passengers are opt for business class and 28.8 %

for executive class. The reason for this is that executive class is mainly safer and

more secure than business class, so it make them comfortable to use this class.

Age

In this research, the respondents are classified into the age range of <20, 21–

30, 31–40 and >41 years old. The proportion of respondents based on age can be

seen in table 5.2 below.

Table 5.2 The Number of Respondent Based on Age

Commuter Class Business Class Executive Class Age

Respondent % Respondent % Respondent % < 20 years 12 9.6 8 6.4 7 5.6 21 – 30 years 99 79.2 89 71.2 36 28.8 31 – 40 years 13 10.4 26 20.8 72 57.6 > 41 years 1 0.8 2 1.6 10 8

Total 125 100 125 100 125 100 Source: Data Analysis Result, 2010

As can be noticed, passengers between 21-30 years old are mostly opt for

commuter and business class, while for executive class is 31-40 years old (57,6%).

Educational Level

The respondents are classified based on the level of education such as: less and

equal high school degree, Diploma (D11-D3), Bachelor (S1) and Post Graduate.

Table 5.3 The Number of Respondent Based on Educational Level

Commuter Class Business Class Executive Class Education Level

Respondent % Respondent % Respondent % High School 105 84 63 50.4 12 9.6 Diploma(D1 – D3) 8 6.4 40 32 26 20.8 Bachelor (S1) 12 9.6 22 17.6 81 64.8 Post Graduate - - - - 6 4.8

Total 125 100 125 100 125 100 Source: Data Analysis Result, 2010

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From table 5.3, most of the respondents for executive class have Bachelor (S1)

degree (64,8 %), followed by Diploma (D1-D3) (20,8 %), a less and equal high

school (9,6 %) and Post Graduate (4,8%). Most of the executive train class users are

those who have higher educational level. It is reasonable that the higher educational

level, the higher the opportunity to get the better job and income.

Occupation

Of 375 respondents who answered this question, the occupation of respondents

for all class (commuter, business and executive class) was dominated by private

employee/businessman followed by civil servant/TNI/Polri, Students and other

profession. (See in table 5.4).

Table 5.4 The Number of Respondent Based on Occupation

Commuter Class Business Class Executive Class Profession

Respondent % Respondent % Respondent % Civil Servant/TNI/POLRI 22 17.6 29 23.2 32 25.6

Private Employee/Businessman 92 73.6 89 71.2 82 65.6

Students 10 8 6 4.8 11 8.8 Others 1 0.8 1 0.8 - -

Total 125 100 125 100 125 100 Source: Data Analysis Result, 2010 Frequently using train

From 375 respondents (including commuter, business and executive

passenger), 32,8 % use train once/week, twice/week (29,3 %), 3 times/week (1,6 %),

4 times/week (2,7 %), 5 times/week (1,3 %), and for commuter passenger especially

those who commuted frequently are 6 times/week (2,4 %) and more than 8

times/week (29,9 %).

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Table 5.5 The Number of Respondent Based on Frequently Using Train

Commuter Class Business Class Executive Class Total Frequently

Respondent % Respondent % Respondent % Respondent % 1 time/month - - 40 32 83 66.4 123 32.8 2 time/month - - 81 64.8 29 23.2 110 29.3 3 time/month - - 1 0.8 5 4 6 1.6 4 time/month 2 1.6 2 1.6 6 4.8 10 2.7 5 time/month 3 2.4 1 0.8 1 0.8 5 1.3 6 time/month 8 6.4 - - 1 0.8 9 2.4 >8 time/month 112 89.6 - - - - 112 29.9

Total 125 100 125 100 125 100 375 100 Source: Data Analysis Result, 2010

Level of Income

As can be noticed for long distance train, comparison results are based on the

level of income for business and executive class. The average income between

1.000.001-2.000.000 are consisting the most for business class (81,6%), while for

executive class the average income is 2.000.001-3.000.000 (59,2%), it is very logical

considering that this class is mainly intended for the better of class in society.

Table 5.6 The Number of Respondent Based on Level of Income

Commuter Class Business Class Executive Class Level of Income

Respondent % Respondent % Respondent % < 1.000.000 69 55.2 12 9.6 5 4.0 1.000.001-2.000.000 46 36.8 102 81.6 28 22.4 2.000.001-3.000.000 7 5.6 11 8.8 74 59.2 > 3.000.000 3 2.4 - - 18 14.4

Total 125 100 125 100 125 100 Source: Data Analysis Result, 2010

On the other hand, the most proportion of respondents for short distance train

(commuter train) have the income level per month is < 1.000.000 (55,2 %).

Therefore, it is reasonable if they choose commuter train than other transportation

mode to support their daily activities because of its cheaper and more affordable

tariff.

5.2 Service Performance Analysis

This part describes the existing condition of PT KAI service performance. The

exiting condition data is gained from customer satisfaction survey held in Jakarta,

Pekalongan and Yogyakarta. Jakarta (Jabodetabek) was chosen for commuter train

66

passenger because in this area there are many passengers using train to commute for

their activity. Yogyakarta and Pekalongan were chosen for business and executive

train passengers. This part also compares the operational service in case project

description between PT KAI and Statens Järnvägar (SJ) AB, Sweden.

For the first parts, the total respondents for this research are 375 which is

divided into 3 classes; commuter for short distance train, business and executive for

long distance train, each class consist of 125 respondents. Statistical tools of

Microsoft excel and SPSS were used for data input and analysis. Data Analysis was

conducted in descriptive analysis test, descriptive statistic was conducted to perform

in order to examine respondents’ perceived satisfaction on observed variable, general

satisfaction and service attributes that given by PT KAI.

Descriptive analysis step, means and number of valid response (in Appendix 2)

were summarized in table 5.7.

Table 5.7 Distribution of Satisfaction Responses

VB B N G VG Attributes of service (Satisfaction) N % N % N % N % N %

General satisfaction 2 0,5 31 8,3 296 78,9 37 9,9 9 2,4 Accessibility of station 4 1,1 25 6,7 193 51,5 128 34,1 25 6,7 Availability of parking facilities 8 2,1 89 23,7 195 52 69 18,4 14 3,7 Ticket price 7 1,9 98 26,1 191 50,9 71 18,9 8 2,1 Fare payment 4 1,1 26 6,9 156 41,6 139 37,1 50 13,3 Queuing the ticket 7 1,9 69 18,4 223 59,5 70 18,7 6 1,6 Safe station 8 2,1 71 18,9 199 53,1 84 22,4 13 3,5 Cleanliness 16 4,3 126 33,6 179 47,7 51 13,6 3 0,8 Safety & security equipment 17 4,5 140 37,3 171 45,6 42 11,2 5 1,3 Safety information 52 13,9 175 46,7 116 30,9 26 6,9 6 1,6 Facilities for disabled 45 12 213 56,8 87 23,2 25 6,7 5 1,3 Comfort ness 28 7,5 103 27,5 144 38,4 89 23,7 11 2,9 Security on train 85 22,7 175 46,7 82 21,9 31 8,3 2 0,5 Train condition 38 10,1 102 27,2 174 46,4 55 14,7 6 1,6 Appearance of service personal 1 0,3 5 1,3 139 37,1 201 53,6 29 7,7 Staff behavior 2 0,5 16 4,3 271 72,3 75 20 11 2,9 Readiness to help passenger 2 0,5 50 13,3 262 69,9 55 14,7 6 1,6 Availability of train fleet 5 1,3 58 15,5 204 54,4 95 25,3 13 3,5 Punctuality 5 1,3 34 9,1 206 54,9 118 31,5 12 3,2 Travel time 8 2,1 70 18,7 205 54,7 81 21,6 11 2,9 Complaint handling system 14 3,7 134 35,7 186 49,6 28 7,5 13 3,5

Source: Data Analysis Result, 2010 VB : Very Bad N : Neither bad or good VG : Very Good

B : Bad G : Good N : Number of Respondent

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From the descriptive statistic analysis table above, we can see from general

satisfaction that 78,9 % customer of PT KAI (train passenger) is almost satisfied

“neither bad or good” with the service and only 2,4 % of customer felt that service

that given by PT KAI is very good. From the central tendency finding, it can be

concluded that respondents are not satisfied with the quality of service. This indicates

that the quality of railway service is under passengers’ expectation. This means that

the level of service given by PT KAI as a train operator in Indonesia is still low.

For the seconds parts of the comparison of services, from previous chapter

(chapter 4), we can see the differences of the operational service between PT KAI

and Statens Järnvägar (SJ) AB, Sweden. The overall explanation of service can be

compared and seen in the following table:

Table 5.8 Comparison in Services

Section PT Kereta Api Indonesia Statens Järnvägar (SJ) AB, Sweden

Railway Network Owned by government (Directorate General of Railway)

Owned by government (Banverket)

Stations - The condition of emplacement in some station is lower than the train entrance door and some in the same level with train entrance door.

- The station is become responsible of PT KAI (DAOPS/DIVRE).

- Overall condition of station is already suitable with the technical standard and specification in related regulation.

- In general, the operation of stations is not the responsibility of SJ but that of municipality and government board (banverket).

The Fleets - Consists of electrical & diesel locomotive train.

- Is divided into three classes; economic, business, and executive class.

- Consists of electrical & diesel locomotive train

- Is divided into two classes; the first class & the second class.

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Continued Table 3.5 Section PT Kereta Api Indonesia Statens Järnvägar (SJ) AB,

Sweden Cost & Fare payments - Tariff for train

transportation is differentiated by origin-destination and type of service.

- Customers can buy the ticket through both manual and electronic channels.

- SJ’s prices are determined based on supply and demand.

- Tickets are sold through both manual and electronic channels.

From the table above, it can been seen that both PT KAI and Statens Järnvägar

(SJ) AB, Sweden do not have responsibility for the railway networks because it is

owned by government--DGR for Indonesian railway and Banverket for Sweden

railways.

5.3 Customer Satisfaction Analysis

In this section, the results of Factor Analysis are given. This analysis is for

finding the factor from service quality attributes that have significant influences on

customer satisfaction towards PT KAI Services. Analysis are divided into 3 classes

of customers, there are: commuter class, business class, and executive class.

Analyses were carried out by examining KMO and Bartlett’s tests. In addition,

KMO measures of sampling adequacy is an index that is used to examine the

relevance of factor analysis, by considering KMO value as follows:

a. KMO value = 1 means that correlation between variable pairs is perfect

b. KMO value ≥ 0,5 means that correlation between variable pairs can be analyzed

c. KMO value < 0,5 menas that correlation between pairs of variables can not be

explained by other variables and factor analysis is not appropriate

In Bartlett's Test of Sphericity, by observe a number of significance at level

0,05 or 5 %. If significant value greater than 0,05 (sig. > 0,05) it is means the result

not significant, then the population correlation is identity matrix. But if significant

value is less than 0,05 (sig. < 0.05) it is means the results is significant, then the

population correlation is not identity matrix, in other word variable is correlated in

the population (Supranto,2004).

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The next step is to determine the appropriate variable by looking at MSA

(Measure of Sampling Adequacy) value ranging from 0 until 1, with the criteria:

a. MSA value = 1, variable can be predicted without error by other variable

b. MSA value ≥ 0,5 , variable can still be predicted and also can be analyzed

c. MSA value < 0,5 , variable can not be analyzed

Principal component analysis with VARIMAX rotation and selection of factor

based on the Kaiser criterion was carried out. Principle component analysis was used

because the primary purpose was to identify and compute composite coping scores

for the factors underlying the short version of the attributes service quality.

5.3.1 Analysis Factor

Commuter Class

Analysis Factor is a statistical tool to explore the structure of the perceived

service quality. The identified dimensions (factors) define broader areas for planning

and action. The general purpose is to find a way to summarize the information

contained in a number of composite dimensions.

For this class, in the first analysis, there are attributes that have MSA value less

than 0,5 (MSA < 0,5) that is accessibility of station and readiness to help passenger,

for that reason according to provision on above, these attributes can not be analyzed

and must be excluded from analysis.

After the variable has been excluded, the next step is doing factor analysis

without these variables. From table 5.9 below, it can be seen that KMO value for

commuter class is 0.753 (bigger than 0.5) and approximation chi-square is 421.079

with degrees of freedom 153, significant at alpha level 0,05, in this test sig. value is

0,000 ( sig < 0,05). According to the value of KMO and Bartlett’s test, then the data

can be analyzed further.

Table 5.9 KMO and Bartlett's Test (Commuter Class)

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.753 Approx. Chi-Square 421.079 Df 153

Bartlett's Test of Sphericity

Sig. 0.000 Source: Data Analysis Result, 2010

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The next step is to determine the appropriate variable by looking at MSA

(Measure of Sampling Adequacy) value ranging from 0 until 1, with the criteria that

can be seen in the previous explanation. It can be seen from the Anti image

correlation table (in appendix 3, commuter class), there is no MSA value (“a”

marked, the diagonal from top left to bottom right) that less than 0,5 (< 0,5). This

shows that these variables can be analyzed further.

Principle components analysis was used since the primary purpose was to

identify and compute composite coping scores for the factors underlying the short

version of the attributes service quality. Principal component analysis with

VARIMAX rotation and selection of factor based on the Kaiser criterion was carried

out.

Table 5.10 Rotated Component Matrixa,b (Commuter Class)

Component 1 2 3 4 5 6

Safety information 0.76 Facilities for disabled 0.75 Security on train 0.68 Cleanliness 0.71 Safe equipment 0.44 Complain system 0.67 Price 0.46 Queuing the ticket 0.75 Train condition 0.45 Punctuality 0.64 Comfort 0.39 Availability of parking 0.86 Staff appearance 0.56 Safe station 0.81 Availability of train 0.54 Travel time 0.41 Fare payment 0.77 Staff behavior 0.65 a. Rotation converged in 7 iterations. b. Only cases for which Type = Commuter Class are used in the analysis phase.

Source: Data Analysis Result, 2010

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From table 5.10, the analysis result for commuter class is in six factors

solutions. The newly formed sixth factors can be seen from the variable that has

eigenvalue greater than 1 (> 1), which explained 57,95 % of the variance (in

appendix 3, commuter class). A factor analysis with six factors revealed the

following. Attributes with bigger factor score weights are shown below:

Factor 1: - Safety information for passenger on board and off board, facilities for

disabled, and security on the train.

Factor 2: - Cleanliness of the train & station, safety & security equipment, and

complaint-handling system adopted on train.

Factor 3: - Ticket price, queuing the ticket, physical condition of the train, and

punctuality when using train.

Factor 4: - Availability of parking facilities at station, appearances of service

personal, and the comfort in using train

Factor 5: - Security while waiting at/leaving the station, availability of train fleet, and

travel time when using train.

Factor 6: - Fare payment, and staff behavior.

Business Class

For this class, in the first analysis there are attributes that have MSA value less

than 0,5 (MSA < 0,5) that is availability of parking, for that reason according to

provision on above, these attributes can not be analyzed and must be excluded from

analysis.

After the variable has been excluded, the next step is doing factor analysis

without these variables. From table 5.11 below, it can be seen that KMO value for

commuter class is 0.614 (bigger than 0.5) and approximation chi-square is 425.947

with degrees of freedom 171, significant at alpha level 0,05, in this test sig. value is

0,000 ( sig < 0,05). According to the value of KMO and Bartlett’s test, then the data

can be analyzed further.

72

Table 5.11 KMO and Bartlett's Test (Business Class) Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.614

Approx. Chi-Square 425.947 Df 171

Bartlett's Test of Sphericity

Sig. 0.000 Source: Data Analysis Result, 2010

The next step is to determine the appropriate variable by looking at MSA

(Measure of Sampling Adequacy) value ranging from 0 until 1, with the criteria can

be seen in the previous explanation. It can be seen from the Anti image correlation

table (in appendix 3, business class), there is no MSA value (“a” marked, the

diagonal from top left to bottom right) that less than 0,5 ( < 0,5). This shows that

these variables can be analyzed further.

Table 5.12 Rotated Component Matrixa,b (Business Class)

Component 1 2 3 4 5 6 7

Comfort 0.49 Fare payment 0.68 Punctuality 0.66 Travel time 0.78 Cleanliness 0.65 Complain system 0.76 Safe information 0.58 Facilities for disabled 0.55 Price 0.53 Safe station 0.16 Availability of train 0.84 Readiness to help 0.72 Staff appearance 0.53 Staff behavior 0.77 Security on train 0.51 Train condition 0.79 Safety equipment 0.73 Accessibility of station 0.77 Queuing the ticket 0.70 a. Rotation converged in 11 iterations. b. Only cases for which Type = Business Class are used in the analysis phase.

Source: Data Analysis Result, 2010

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From table 5.12, the analysis result for business class is in seven factors

solutions. The newly formed seventh factors can be seen from the variable that has

eigenvalue greater than 1 (> 1), which explained 61,90 % of the variance (in

appendix 3, business class). A factor analysis with seven factors revealed the

following. Attributes with bigger factor score weights are shown below:

Factor 1: - Fare payment, the comfort in using train, punctuality, and travel time.

Factor 2: - Cleanliness of the train & station, safety information for passenger on

board and off board, complaint handling system.

Factor 3: - Ticket price, security while waiting and leaving the station, facilities for

disable, and availability of train fleet.

Factor 4:- Appearances of service personal, staff behavior, and readiness to help

passenger.

Factor 5: - Security on train, and physical condition of the train.

Factor 6: - Safety & security equipment in train or station.

Factor 7: - Queuing the ticket, and accessibility of station.

Executive Class

From table 5.13 below, it can be seen that KMO value for executive class is

0.710 (bigger than 0.5) and approximation chi-square is 450.484 with degrees of

freedom 190, significant at alpha level 0,05, in this test sig. value is 0,000

( sig < 0,05). According to the value of KMO and Bartlett’s test, then the data can be

analyzed further.

Table 5.13 KMO and Bartlett's Test (Executive Class)

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.710 Approx. Chi-Square 450.484 Df 190

Bartlett's Test of Sphericity

Sig. 0.000 Source: Data Analysis Result, 2010

The next step is to determine the appropriate variable by looking at MSA

(Measure of Sampling Adequacy) value ranging from 0 until 1, with the criteria seen

in the previous explanation. It can be seen from the Anti image correlation table (in

appendix 3, executive class), there is no MSA value (“a” marked, the diagonal from

74

top left to bottom right) that less than 0,5 (< 0,5). This shows that these variables

can be analyzed further.

Table 5.14 Rotated Component Matrixa,b (Executive Class)

Component 1 2 3 4 5 6 7

Comfort 0.64 Staff appearance 0.56 Queuing the ticket 0.59 Punctuality 0.66 Cleanliness 0.75 Safe station 0.76 Fare payment 0.54 Safety equipment 0.58 Availability of train 0.67 Facilities for disabled 0.37 Accessibility of station 0.46 Safety information 0.85 Security on train 0.53 Complain system 0.66 Parking facilities 0.51 Staff behavior 0.82 Train condition 0.86 Travel time 0.66 Readiness to help 0.44 Price 0.74 a. Rotation converged in 21 iterations. b. Only cases for which Type = Executive Class are used in the analysis phase.

Source: Data Analysis Result, 2010

From table 5.14, the analysis result for executive class is in seven factors

solutions. The newly formed seventh factors can be seen from the variable that has

eigenvalue greater than 1 (> 1), which explained 60,317 % of the variance (in

appendix 3, executive class). A factor analysis with seven factors revealed the

following. Attributes with bigger factor score weights are shown below :

Factor 1: - Queuing the ticket, cleanliness of the train & station, the comfort in using

train, appearances of services personal, and punctuality.

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Factor 2: - Fare payment, security while waiting at/leaving the station, safety &

security equipment in train or station, facilities for disabled, availability

of train fleet, and accessibility of station.

Factor 3: - Safety information for passenger on board and off passenger, security on

the train, and complaint handling system.

Factor 4: - Staff behavior, and availability of parking facilities at station.

Factor 5: - Physical train condition.

Factor 6: - Travel time and readiness to help passenger.

Factor 7: - Ticket price.

5.3.2 Interpretation of Factors

By looking the highest correlation value between early variables with latent

factors, it will get a new factor that is the aggregation of previous variable. In other

words, from 20 variables, after the initial stages of factoring and rotation there will

be 6 factors (Commuter class) and 7 factors (Business and Executive class) that

consist of several variables factor. Next steps, by looking at the variables that make

up each of these latent factors, then it can be given a new name to simplify the

interpretation process. According Dillon (1984), naming of factor is based on value

(λ) of the largest variable factor. If two or more variables have the same value (λ),

then the process for giving the name is based on priority (1,2,3…), but if the variable

is derived from the same attributes, the naming of factor is equal with the name from

attributes factor.

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Table 5.15 Service attribute that use in factor analysis Variable Question Service attribute

X1 Accesibility of station (railway station should be easy to access/integrated system)?

Service coverage

X2 Availability of parking facilities at station Tangible X3 Ticket price Cost X4 Fare payment Cost X5 Queuing the ticket Service coverage X6 Security while waiting at/leaving the station Safety & security X7 Cleanliness of the trains & station Appearances X8 Safety & security equipment in train or station (fire

extinguisher,hammer & first aid) Safety & security

X9 Safety information for passenger on board and off board

Information

X10 Facilities for disabled (toilet, special seat, wheelchair space)

Tangible

X11 The comfort in using train transportation (appropriate climate control (air conditioner, heater, fan), seat comfort, and ride comfort)

Comfort

X12 Security on the train (become a victim of crime “pickpocket”)

Safety & security

X13 Physical condition of the train so far (AC, fan, seat & toilet condition)

Tangible

X14 Apperances of services personal (how they look/uniform)

Appearances

X15 Staff behaviour Comfort X16 Readiness to help passenger Comfort X17 Availability of train fleet (many operated fleets &

high frequency of fleet) Scheduling

X18 Punctuality in using train transportation Reliability X19 Travel time when using train Travel time X20 Complaint handling system adopted on train

transportation (in train & in the station) Information

In this research, the naming process (interpretation process) is done by

identifying the variables that have a high factor loading value. From the analysis

results, service attribute/variable that has a high factor loading value for each class of

train transportation can be seen in explanation below:

Commuter class

Service attribute that has a high factor loading value for commuter class are:

1. Safety information for passenger on board and off board is related to

“Information” attribute.

2. Cleanliness of the trains & station is related to “Appearances” attribute.

3. Queuing the ticket is related to “Service coverage” attribute.

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4. Availability of parking facilities at station is related to “Tangible” attribute

5. Security while waiting at/leaving the station is related to “Safety & security”

attribute.

6. Fare payment is related to “Cost” attribute.

For the next steps, this factor can be arranged for knowing service quality

attributes that have significant influences on customer satisfaction towards PT KAI

Services for commuter class passenger, the rank can be seen below:

1. Factor 1 : Information

2. Factor 2 : Appearances

3. Factor 3 : Service coverage

4. Factor 4 : Tangible

5. Factor 5 : Safety & security

6. Factor 6 : Cost

Based on that rank, factors that have significant influences on customer

satisfaction for commuter class is Information, followed by Appearances, Service

coverage, Tangible, Safety & security, and Cost.

Business Class

Service attribute that has a high factor loading value for business class are:

1. Travel time when using train is related to “Travel time” attribute.

2. Complaint handling system adopted on train transportation (in the station) is

related to “Information” attribute.

3. Availability of train fleet (many operated fleets & high frequency of fleet) is

related to “Schedulling” attribute.

4. Staff behaviour is related to “Commfort” attribute.

5. Physical condition of the train so far (AC, fan, seat & toilet condition) is related

to “Tangible” attribute.

6. Safety & security equipment in train or station (fire extinguisher,hammer & first

aid) is related to “Safety & security” attribute.

7. Accesibility of station (railway station should be easy to access/integrated

system) is related to “Service coverage” attribute.

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This factor can be arranged for knowing service quality attributes that have

significant influences on customer satisfaction towards PT KAI Services for business

class passenger, the rank can be seen below:

1. Factor 1 : Travel time

2. Factor 2 : Information

3. Factor 3 : Scheduling

4. Factor 4 : Comfort

5. factor 5 : Tangible

6. Factor 6 : Safety & security

7. Factor 7 : Service coverage

That rank explains a factor that has significant influences on customer

satisfaction for business class is Travel time, followed by Information, Scheduling,

Comfort, Tangible, Safety & security and Service coverage factor.

Executive Class

Service attribute that has a high factor loading value for executive class are:

1. Cleanliness of the trains & station is related to “Appearances” attribute.

2. Security while waiting at/leaving the station is related to “Safety & security”

attribute.

3. Safety information for passenger on board and off board is related to

“Information” attribute.

4. Staff behaviour is related to “Comfort” attribute.

5. Physical condition of the train so far (AC, fan, seat & toilet condition) is related

to “Tangible” attribute.

6. Travel time when using train is related to “Travel time” attribute.

7. Ticket price is related to “Cost” attribute.

For knowing the service quality attributes that have significant influences on

customer satisfaction towards PT KAI Services for Executive class passenger, this

factor must be arranged based on the interest of attribute, the rank can be seen below:

1. Factor 1 : Appearances

2. Factor 2 : Safety & security

3. Factor 3 : Information

4. Factor 4 : Comfort

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5. Factor 5 : Tangible

6. Factor 6 : Travel time

7. Factor 7 : Cost

For executive class, customers focus more on Appearances, followed by Safety

& security, Information, Comfort, Tangible, Travel time and Cost, that can influence

their satisfaction on provided services.

5.3.3 Comparison of Factors

The previous explanation results of the factors of service quality attributes that

have significant influences on customer satisfaction towards PT KAI Services can be

clearly identified. There are different results for commuter, business and executive

class. The more comprehensive explanation of the results can be seen in this table:

Table 5.16 Comparison Results

Factor Commuter Class Business Class Executive Class

Factor 1

Factor 2

Factor 3

Factor 4

Factor 5

Factor 6

Factor 7

Information

Appearances

Service coverage

Tangible

Safety & security

Cost

-

Travel time

Information

Scheduling

Comfort

Tangible

Safety & security

Service coverage

Appearances

Safety & security

Information

Comfort

Tangible

Travel time

Cost

From table 5.16 above, it can be noted that a factor that has significant

influences on customer satisfaction for commuter class is Information. This factor

consists of safety information for passenger on board and off board, and complaint-

handling system adopted on train transportation. This makes sense because this mode

(commuter class) has become the main option for transportation modes to support

customer daily work activities especially in urban area. But in fact, the convenience

offered by operator is far from expectation, so it may disappoint the users of

commuter train. Because of that reason, if customers feel dissatisfied with the

provided services from the operator, the operator must provide the media for

customers who have complaints to convey their complaint easily.

80

Meanwhile for business class, the first factor is Travel time. There are two

conditions that can influence passenger travel time in this research; the waiting time

and the vehicle speed. Based on the analysis factor results, this factor becomes the

most factor that has significant influences on customer satisfaction for business class

passenger because their travel time is less than the travel time using other

transportation mode that has similar service for long distance public transportation

(Bus). This happens because train is free from traffic jam.

For executive class, customers focus more on Appearances. From table 6.6

about level of income, which can be noticed for long distance train, the average

income of passengers of executive class is 2.000.001-3.000.000 (59,2%), this result

is higher compared to that of business class of long distance train. It is very logical,

therefore, that this class is mainly intended for the better class in society. From that

explanation, we understand that passengers for this class is concerned with the

appearance factor including cleanliness on the trains & stations, also appearances of

service personal. This may be because they already pay higher price for this class and

expect better service for their comfort. This is called the appearance dimensions.

5.4 Customer Complaint Analysis

In this section, the results of Regression analysis are given. Regression analysis

examines the strength of a relation between a dependent variable and a number of

independent variables, also called explanatory variables. In this research, this

analysis is for finding whether there is influence between customer satisfactions

towards provided services and the desire to do a complaint. Analysis is also divided

into 3 class of customers; commuter class, business class, and executive class. Eq. (1)

below describes the linear regression model that is used in this analysis:

Υ = βo+β1χ1+………………..+βnχn+ε (1)

Where:

Υ = Dependent variable βo = Constant value β1 – βn = Independent variable coefficient χ1 - χn = Independent variable ε = Error

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In this analysis, the first step that researcher must do is making a hypothesis.

A hypothesis is a preliminary or tentative explanation or postulate by the researcher

considering the outcome of an investigation. The entire experiment and research

revolves around the research hypothesis (Ha) and the null hypothesis (Ho). Research

hypothesis (Ha) is the statement created by the researcher when they speculate upon

the outcome of a research or experiment, while the null hypothesis (Ho) is an

essential part of any research design, and is always tested, even indirectly. For this

analysis, hypotheses are as follows:

Ho1: Simultaneously, there is no influence between customers satisfaction

towards provided service attribute and the desire to do a complaint.

Ha1: Simultaneously, there is an influence between customers satisfaction

towards provided service attribute and the desire to do a complaint.

Ho2: Partially, there is no influence between customers satisfaction towards

provided service attribute and the desire to do a complaint.

Ha2: Partially, there is an influence between customers satisfaction towards

provided service attribute and the desire to do a complaint.

The second step is doing Z test (Significance test). Z test is used to check

whether constant value and model variables for each coefficient are significant in

certain significance levels. For Z-Test, the statistic hypothesis are as follows:

Ho: Insignificance coefficient variable (coefficient = 0)

H1: Significance coefficient variable (coefficient > 0)

Based on 95% significance level ( = 0.05), Ho is acceptable if the probability levels

are more than 0.05 and rejected if less than 0.05.

The next step is by looking at the R-square (R2) value. The R2 statistic indicates

how much of the variation in the observed data can be explained by the model and

how much of the variation that is attributed to error. A value R2 = 0 is equivalent to

using only β0 to model the response variable, while R2 = 1 corresponds to a perfect

model that yields exact predictions.

Commuter Class

Based on table 5.17 below, it can be seen that sig. value for commuter class

passenger is 0.034 (< 0.05). It means that Ho is rejected. Thereby simultaneously,

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there is an influence between six factors (Information factor, Appearances, Tangible,

Service coverage, Safety & security, and Comfort) and the desire to do a complaint.

Table 5.17 ANOVAb Table (Commuter Class)

Model Sum of Squares df Mean Square F Sig. Regression 2.044 6 0.341 2.370 0.034a Residual 16.964 118 0.144

1

Total 19.008 124 a. Predictors: (Constant), Faktor6, Faktor5, Faktor1, Faktor4, Faktor2, Faktor3 b. Dependent Variable: Y

The regression analysis for commuter class satisfaction is conducted to 20

attributes that are categorized into six groups; Information, Appearances, Tangible,

Service coverage, Safety & security, and Comfort. The regression equity for

commuter class is [Y = 2.657 – 0.042*(Information) + 0.015*(Appearances) +

0.059*(Service coverage) – 0.090*(Tangible) + 0.223*(Safety & security) +

0.100*(Cost)]. The confirmation results of the proposed hypotheses are as follows:

X1 (Information): with sig. value 0.493 (> 0.05) and (T- statistics = - 0.687) is

rejected and specifies that the Information attributes do not have a significant

influence on desire to do a complaint for commuter class passenger.

X2 (Appearances): with sig. value 0.820 (> 0.05) and (T- statistics = 0.228) is

rejected and specifies that the Appearances attributes do not have a significant

influence on desire to do a complaint for commuter class passenger.

X3 (Service coverage): with sig. value 0.513 (> 0.05) and (T- statistics = 0.657) is

rejected and specifies that the Service coverage attributes do not have a significant

influence on desire to do a complaint for commuter class passenger.

X4 (Tangible): with sig. value 0.183 (> 0.05) and (T- statistics = - 1.339) is rejected

and specifies that the Tangible attributes do not have a significant influence on desire

to do a complaint for commuter class passenger.

X5 (Safety & security): with sig. value 0.006 (< 0.05) and (T- statistics = 2.787) is

confirmed and specifies that the Safety & security attributes have a direct and a

significant influence on desire to do a complaint for commuter class passenger.

X6 (Cost): with sig. value 0.143 (> 0.05) and (T- statistics = 1.473) is rejected and

specifies that the Cost attributes do not have a significant influence on desire to do a

complaint for commuter class passenger.

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As can be seen in the explanation above, partially the five factors (Information

factor, Appearances, Service coverage, Tangible, and Cost) that relate to service

quality attributes explaining a factor that has significant influence on desire to do a

complaint are all rejected, except X5 (Safety & security) is accepted. It shows that

Safety & security has a significant influence on desire to do a complaint. It can be

interpreted that the service performance for commuter class in the Safety & security

attributes by the train operator (PT KAI) is low. The all dimensions explain 11.1 %

(R2 = 0.111) of the variance of service quality attribute which influence on desire to

do a complaint provided service.

Business Class :

The result in Table 5.18 shows that sig. value for business class passenger is

0.038 (< 0.05), meaning that Ho is rejected. Thereby simultaneously, there is an

influence between seven factors (Travel time, Information, Scheduling, Comfort,

Tangible, Safety & security and Service coverage) and the desire to do a complaint.

Table 5.18 ANOVAb Table (Business Class)

Model Sum of Squares Df Mean Square F Sig. Regression 1.869 7 0.267 2.208 0.038a Residual 14.148 117 0.121

1

Total 16.017 124 a. Predictors: (Constant), Faktor7, Faktor1, Faktor5, Faktor6, Faktor3, Faktor4, Faktor2 b. Dependent Variable: Y

The regression analysis for business class satisfaction is conducted to 20

attributes that are categorized into seven groups; travel time, followed by

Information, Scheduling, Comfort, Tangible, Safety & security and Service coverage

factor. The regression equation for business class is [Y = 2.459 + 0.054*(Travel

time) + 0.128*(Information) + 0.011*(Scheduling) + 0.168*(Comfort) +

0.034*(Tangible) – 0.029*(Safety & security) – 0.16*(Service coverage)]. The

confirmation results of the proposed hypotheses are as follows:

X1 (Travel time): with sig. value 0.374 (> 0.05) and (T- statistics = 0.893) is rejected

and specifies that the Travel time attributes do not have a significant influence on

desire to do a complaint for business class passenger.

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X2 (Information): with sig. value 0.030 (< 0.05) and (T- statistics = 2.200) is

confirmed and specifies that the Information attributes have a direct and a significant

influence on desire to do a complaint for business class passenger.

X3 (Scheduling): with sig. value 0.893 (> 0.05) and (T- statistics = 0.135) is rejected

and specifies that the Scheduling attributes do not have a significant influence on

desire to do a complaint for business class passenger.

X4 (Comfort): with sig. value 0.063 (> 0.05) and (T- statistics = 1.878) is rejected

and specifies that the Comfort attributes do not have a significant influence on desire

to do a complaint for business class passenger.

X5 (Tangible): with sig. value 0.494 (> 0.05) and (T- statistics = 0.063) is rejected

and specifies that the Tangible attributes do not have a significant influence on desire

to do a complaint for business class passenger.

X6 (Safety & security): with sig. value 0.476 (> 0.05) and (T- statistics = - 0.715) is

rejected and specifies that the safety & security attributes do not have a significant

influence on desire to do a complaint for business class passenger.

X7 (Service coverage): with sig. value 0.775 (> 0.05) and (T- statistics = - 0.287) is

rejected and specifies that the Service coverage attributes do not have a significant

influence on desire to do a complaint for business class passenger.

As can be seen in the explanation above, partially the six factors (Travel time,

Scheduling, Comfort, Tangible, Safety & security and Service coverage) that relate to

service quality attributes explaining a factor that has significant influence on desire

to do a complaint are all rejected, except X2 (Information) is accepted. It shows that

Information has a significant influence on desire to do a complaint. It can be

interpreted that the service performance for business class in the Information

attributes by the train operator (PT KAI) is low. The all dimensions explain 11.7 %

(R2 = 0.117) of the variance of service quality attribute which influence on desire to

do a complaint on provided service.

Executive Class

For this class, according to table 5.19, it can be seen that sig. value is 0.189

(> 0.05), meaning that Ho is accepted. Thereby simultaneously, there is not an

influence between seven factors (Appearances, Safety & security, Information,

Comfort, Tangible, Travel time and Cost) and the desire to do a complaint. It can be

85

interpreted that the executive class passengers are mostly satisfied with the service

given by PT KAI.

Table 5.19 ANOVAb Table (Executive Class)

Model Sum of Squares Df Mean Square F Sig. Regression 1.552 7 0.222 1.459 0.189a Residual 17.777 117 0.152

1

Total 19.328 124 a. Predictors: (Constant), Faktor7, Faktor5, Faktor2, Faktor4, Faktor3, Faktor1, Faktor6 b. Dependent Variable: Y

5.5 Recommendation

5.5.1 Complaint Handling System

In this research, it can be seen from the questionnaire answers that there are

many complaints about the service given by PT KAI. This is because the customers

do not get the service that meets their expectation or the service is still far from their

expectation. To decrease the number of complaints, some effective mechanisms to

handle the complaint must be taken. It is also important to learn from Statens

Järnvägar (SJ) AB, Sweden in handling their customer complaints. From the

previous chapter (chapter 4), we can see the different mechanism of handling

customer complaint between PT KAI and Statens Järnvägar (SJ) AB, Sweden. The

explanation of the system can be seen in this table:

Table 5.20 Customer Complaint Policy

Section PT Kereta Api Indonesia

Statens Järnvägar (SJ) AB, Sweden

Commitment to respond complaints

No information Good and high motivation

Most common complaint Security on train Punctuality of train Media of complaint Hotline number, mailing

list, official website, suggestion box

Hotline number, official website, SMS

Guarantee & compensation No information Give customer compensation (travel time guarantee) : refund on the ticket price (cash compensation), Reasonable added expenses for food and accommodation

Promise to respond and solve complaints

No information will be responded to within 5 working days of receiving complaints

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Based on the complaint handling policy of Statens Järnvägar (SJ) AB, Sweden,

PT KAI can adopt the process of handling customer complaints. The complaints

handling management system that will be applied is underpinned by these guiding

principles.

1. Quality improvement – Complaint management is an integral part of the quality

improvement approach that has been or will be adopt by PT KAI.

2. Open disclosure – PT KAI has a policy of open disclosure in relation to adverse

events and complaints.

3. Commitment – The management of PT KAI should fully commit to an integrated

complaint management system and will provide the necessary support for it to

operate effectively.

4. Accessibility – PT KAI encourages consumers to give feedback about the service

and makes it easy for them to do so.

5. Responsiveness – PT KAI should have a consumer-focused approach, being

receptive to complaints and treating complaints seriously.

6. Transparency and accountability – The complaint process is clearly articulated,

open and accountable to both staff and consumers.

7. Privacy and confidentiality – PT KAI should respect the privacy and

confidentiality of consumers and the information received during the complaints

process, while at the same time making its decisions open and accountable.

PT KAI as an operator must provide the media for customers who have

complaints to convey their complaints easily. Customers could submit or send their

complaints to the official website of PT KAI or they can use complaint/suggestion

box provided in station, besides the customer service call number that can be viewed

inside the train, in station or other place and media.

Every complaint through official website, customer service call, letter and

email is logged and given a unique reference number, which makes it easy to keep

track of. Customers making complaints must be prepared to give their names and

contact details for the complaint to be investigated. They will also be given the

option of having someone respond to them directly or not. Where the customer has

requested a response, they will be informed of the complaint reference number as

well as how long they should expect to wait for a response. In accordance with the

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Privacy Policy, any personal information collected to respond to a complaint will

remain confidential and will only be used to help resolve that complaint.

When a complaint is logged, it is forwarded to and dealt with by the

appropriate area within the PT KAI organization. Complaints where the customer has

requested a response will be responded to within 5 working days of receiving the

complaint. In the case of complaints concerning emergency situations, the relevant

area in PT KAI organization structure will be notified immediately.

5.5.2 Service Standard Design

Recommendations of service standard for PT KAI that are carried out in this

research were based on questionnaire results about customer satisfaction and

complaint in PT KAI services. Similar issue was also carried out by the study against

the service standards of Statens Järnvägar (SJ) AB Sweden.

In addition to the train passenger responses on provided services, the real

condition on field of railway service is a very influential factor in deciding the

service standard for this mode. Passenger response and real condition on field will

give a benchmark parameter or the extent to which services are provided. Passenger

response is the means value of the answer about customer satisfaction towards PT

KAI services (very bad, bad, neither bad nor good, good, and very good), while the

real condition is a vivid description of the services that seen and felt by researcher

directly (primary data) or indirectly (secondary data). The more comprehensive

explanation of analysis is shown in this table:

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Table 5.21 Customer Responses and Real Condition on Field Towards Provided Service Satisfaction results

Commuter Class Business Class Executive Class Attributes of service Means value Interpretation Means

value Interpretation Means value Interpretation

Real condition on field

Accessibility of station 3,36 Neither bad nor good

3,28 Neither bad nor good

3,52 Good - Some stations already have interconnection with another mode (integrated mode)

- The location of station is near with the city (business area) for example shopping, bus terminal

Availability of parking facilities 2,99 Neither bad nor good

3,00 Neither bad nor good

2,94 Neither bad nor good

- Not all stations have parking facility, especially in small station (Jabodetabek area)

- Stations do not have the exact size (same size area) of the parking facilities.

Ticket price 3,02 Neither bad nor good

2,99 Neither bad nor good

2,78 Neither bad nor good

- For commuter train, the price is more cheaper than other modes, especially for economy commuter class

Fare payment 3,21 Neither bad nor good

3,62 Neither bad nor good

3,82 Good - For executive and business class, tickets can be purchased online.

Queuing the ticket 3,14 Neither bad nor good

2,89 Neither bad nor good

2,96 Neither bad nor good

- Queuing is still too long especially during peak hours and peak seasons, so that the service is not optimal.

Safe station 3,03 Neither bad nor good

3,19 Neither bad nor good

2,96 Neither bad nor good

- There is no CCTV in each station - Not all stations have security officers

especially for small stations

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Continued Table 5.21 Satisfaction results

Commuter Class Business Class Executive Class Attributes of service Means value Interpretation Means

value Interpretation Means value Interpretation

Real condition on field

Cleanliness 2,62 Neither bad nor good

2,65 Neither bad nor good

2,93 Neither bad nor good

- Most of the conditions of station and other facilities are less awakened. Many find rubbish strewn around. Some station have already provided a representative trash, but the number is not comparable with the existing area and their presence is less conspicuous

- There is no trash bin in each railway coach.

Safety & security equipment 2,50 Bad 2,63 Neither bad nor good

2,89 Neither bad nor good

- There is no emergency window for emergency exit and also the glasses breaker (hammer) in each railway coach

- Each railway coach has been already equipped by emergency brake, but the condition is very worrying so there is no guarantee if brake still works.

- There is no fire extinguisher in each railway coach.

- There is no instruction for using safety & security equipment in train and station.

- Warning/sanction for the use of emergency tool are also not found in train

- There is no medical box (P3K) in each railways coach

- Only on big stations, that have safety and security facilities.

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Continued Table 5.21 Satisfaction results

Commuter Class Business Class Executive Class Attributes of service Means value Interpretation Means

value Interpretation Means value Interpretation

Real condition on field

Safety information 2,19 Bad 2,38 Bad 2,49 Bad - Most of trains are not equipped with safety information

Facilities for disabled 2,21 Bad 2,34 Bad 2,31 Bad - Very rare facilities for the disabled both at stations and on train, there are only ramp for wheelchairs users. But there are no signs showing the priority for them

Security on train 2,04 Bad 1,98 Bad 2,50 Bad - Users have not received guarantees of security and safety in the train

- When using the train, there is no security officers in each railway coach

- Security controls are also not found Train condition 3,08 Neither bad nor

good 2,34 Bad 2,69 Neither bad nor

good - Good condition of train is only for

executive class and executive commuter class

Appearance of service personal 3,29 Neither bad nor good

3,72 Neither bad nor good

4,00 Good - Almost all employees already use uniforms, one thing which needs to be considered is the neatness and the clear identity of employees

Staff behavior 3,11 Neither bad nor good

3,11 Neither bad nor good

3,39 Neither bad nor good

- Many of employees who do not show hospitality when serving

Readiness to help passenger 3,00 Neither bad nor good

3,03 Neither bad nor good

3,06 Neither bad nor good

- There is no other officers who serve passengers in train, except the conductor and machinist (train driver)

Availability of train fleet 3,04 Neither bad nor good

2,93 Neither bad nor good

3,46 Neither bad nor good

- The headway between trains is bad especially for commuter class

Punctuality 2,99 Neither bad nor good

3,47 Neither bad nor good

3,32 Neither bad nor good

- on time arrival and departure of trains are rare

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Continued Table 5.21 Satisfaction results

Commuter Class Business Class Executive Class Attributes of service Means value Interpretation Means

value Interpretation Means value Interpretation

Real condition on field

Comfort ness 2,34 Bad 2,78 Neither bad nor good

3,50 Neither bad nor good

- The size of waiting room area in each stations is not the same (there is no standard for this)

- In daytime, lighting is bright enough because almost all stations have an open space area for waiting room. At night, the lighting is not bright enough, only a few locations are bright and not all lights functioning optimally.

- The seats are uncomfortable and the treatment is not good (ill-treatment), so many are damaged

- There is no priority seats for pregnant woman, disable, and elderly, especially for commuter class

- In practice, there is no limit for the number of standing passengers on the train (commuter train), especially during rush hours, so it make the passengers inconvenient

- Many passengers are smoking on the train, because there is no rule that prohibits it

- Traders hawkers and road musicians are still operating on train and there is no prohibition

Travel time 2,72 Neither bad nor good

3,30 Neither bad nor good

3,11 Neither bad nor good

- For commuter class, travel time is more better than other mode, because this mode is free from congestion

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Continued Table 5.21 Satisfaction results

Commuter Class Business Class Executive Class Attributes of service Means value Interpretation Means

value Interpretation Means value Interpretation

Real condition on field

Complaint handling system 2,58 Neither bad nor good

2,64 Neither bad nor good

2,91 Neither bad nor good

- There is no media for complaints (information to make a complaint) on train

- Only a few stations that allows passengers to lodge a complaint (provide a suggestion box)

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After knowing the comparison results of analytical studies of customer satisfaction

level towards provided service by PT KAI with the real conditions of service, the next

step that will be done is to use the results of the analysis as a basis for preparing and

determining minimum service standard for train transportation.

As mention in the section of theoretical framework and analysis above, service

quality attributes that are used in this research are based on passenger point of view

(TRB (2003a)). Those categories are divided into two main groups: availability and

convenience & comfort. Parasuraman service quality attributes that are tangible are also

used. Details of service standards can be seen below:

1. Service standard for safety and security aspect

a. Service standard in Station

Officers and their activities (in case only for service standard in Indonesia):

1) Station should be guarded by security officers using shift system, every 8 hours

(3-time shift/day), with the number of officer per shift is 12 officers for large

stations and 5 – 7 for small stations.

2) The number of officers can be adjusted to the level of activity on the station.

3) Conduct safety and security control of passengers at the station continuously and

periodically, every 1 hour.

Faccilities and equipment

1) Facilities:

a. Availability of security room at each station

b. Availability of health room/ P3K room at each station

c. Use of video surveillance cameras

d. Availability of fire alarm systems

2) Safety equipment:

a) Availability of hydrant for bigger stations

b) Availability of fire extinguisher

1. Mounted on the wall and sealed, and also marked “only use in case of

fire situation“ and “use outside the regulation will be penalized” was can

be read clearly and order/message that is sent could be understood by

passengers.

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2. Function and could be operated well and truly.

3. Provide information on how to use

c) Availability of medical box (P3K), minimum two boxes in each station

b. Service standard on train

Officers and their activities (in case only for service standard in Indonesia):

1) Each railway coach is on guard by security officers, with the number of officer

in each railway coach is two securities.

2) The number of officers can be adjusted to the total of railway coach that

operated.

3) Conduct safety and security control of passengers at the train continuously and

periodically, during train operation

Facilities and equipment:

1) Fire extinguisher must be available 2 units (every railway coach), are placed at

the front and behind, and also marked “only use in case of fire situation“ and

“use outside the regulation will be penalized” and also provide information on

how to use it. It must be concise, so that signs can be read and understood

quickly. They must be clear, consistent and unambiguous. Fire extinguisher

must function and could be operated well and truly.

2) Emergency brake should be available in every railway coach, and also marked

“Emergency brake”, “Only use in emergency situation” and “use outside the

regulation will be penalized” and also provide information on how to use. The

information must be concise, so that signs can be read and understood quickly.

They must be clear, consistent and unambiguous. They must function and could

be operated on well and truly.

3) Emergency window for emergency exit should be available 4 units (every

railway coach), is placed in the middle and there should be 4 units of the glasses

breakers (the hammer) in each emergency window, as well as the notification of

how to use it. The words “EMERGENCY WINDOW” shall be placed both

inside and outside directly above, on or adjacent to the exit in letters of one and

one-half inch minimum height. An arrow of contrasting colour (Red or Black)

shall also be placed on the interior and exterior of the window.

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4) Warning Light is very useful to warn passengers and serves as the best

prevention to save their life when in danger condition such as because of fire,

machine accident, and so on.

5) The first aid kit must be available in every each railway coach and the contents

must be adequate for the handling of minor injuries.

6) Pedestrian pathways shall be designed to minimize the crossing of the rail

tracks. Fence shall be provided between the tracks to discourage crossing except

for at designated locations.

7) Blind spots, tight quarters, alcoves, dark areas, or other design features that

could compromise the security of the station shall not be permitted.

2. Service standard for comfort and appearances (cleanliness)

a. Service standard in station:

1) Availability of secondary power supply (generators set), in the event of primary

power failure.

2) Availability of trash bin in stations, is placed at the strategic location, in the

good condition and could be made function and operated on well and truly (the

condition for the trash/rubbish must be closed well and when being closed it is

not smelly), and also must be controlled by cleaner officer every time.

3) Maintain cleanliness and comfort of station with regular cleaning, at least twice

a day.

4) Lighting level should be good and consistent throughout routes used by

passengers. No area should be excessively bright or dark.

5) Floor surface should be firm, even, easily cleaned and slip resistant when wet or

dry.

6) To allow easy access to the train, the platform height allows step-free access

between platform and train.

b. Service standard on train:

1) Availability of trash bin in each railway coach (minimum two units), is placed at

the front and behind the railway coach, in the good condition and could be made

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function and operated on well and truly (the condition for the trash/rubbish must

be closed well and when being closed it is not smelly).

2) The guidance of the priority of seats for the elderly, disable, and pregnant

woman (especially for commuter train), must be concise, so that signs can be

read and understood quickly. They must be clear, consistent and unambiguous.

3) All service staff should be easily identifiable and present a good image, wearing

full uniform including name badges. They should keep customer informed

during their journey and help with any problems, should they occur.

4) Standards for loading levels for commuter train (standing passenger in a rush

hour).

a) COMFORTABLE : 2-3 passenger per m2

2. UNCOMFORTABLE : 5 passenger per m2

3. UNACCEPTABLE : > 8 passenger per m2

3. Service standard for the availability of information aspects

a. Service standard in station:

1) Provide suggestion box and also media information for customers who have

complaints such as official website, customer service call number. They must be

placed in strategic places in every station.

2) The following information should be provided:

a) Safety information and safety instruction

b) Warning, prohibition and mandatory actions signs

c) Information concerning the departures of train service

d) Identifications of stations facilities, where provided, and access routes to

those facilities

b. Service standard on train:

1) Availability of map of the route as a guidance of the route that is passed through

by the train, as well as the name of the station, is placed equitable all over the

corner and in the middle of the trains, must be read clearly and order that is sent

could be understood by passengers.

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2) Availability of LCD/Liquid Crystal Display screen and the audio of station stop

information (especially for commuter train), the voice must be synchronous with

the information in LCD screen.

3) For commuter train, information on fares, timetables and route maps must be

widely available to the public on a continuous basis.

4) Provide information of customer service number (media information for

customers who have complaints) inside the train.

4. Service standard for tangible attributes

a. Station provides special facilities for disable passenger, such as special parking

facilities, toilets, seats and wheelchair space.

b. Seating layouts should allow a wheelchair (disable people) user and a person in

adjacent standard seating to sit together and in line with each other.

c. Operator should maintain their fleets (train) in a good condition and to high standard

of maintenance. Regular inspection should be carried out to ensure these standards

are maintained.

d. Availability of parking facilities on station

5. Service standard for service coverage attributes

a. The station must be attractive, durable, vandal resistant, and easy to maintain.

b. Stations must be easy to access and integrated with other mode of transportation.

c. At stations with major bus transfer or other intermodal facilities, the stations shall be

designed to include a transit center component. This shall include an indoor waiting

area with information center, vending and ticketing.

6. Service standard for the operations of train

a. The minimum time interval (headway) between trains is shorter especially for

commuter train.

b. Ensure that the percentage of trains arriving at their destination is within five

minutes of the scheduled time (punctuality standard)

c. Ensure availability of train fleet (many operated fleets & high frequency of fleet) at

most which is 90 % of all over the number of fleet.

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In this research, service standard design also concerns on technical aspect for train

transportation, details of technical service standards can be seen below:

1. Seats must resist the impact forces occurring on collision.

2. Seat backs should be sufficiently high and well padded on both the front and back

sides so as to afford proper support for the head and neck of a rearward traveling

passenger and not to cause face or neck injuries to a forward traveling passenger

who impacts with the seat ahead.

Figure 5.2 Seating Configurations

3. On a unidirectional seat equipped with a folding snack table, the table should be

designed as to not constitute an injury hazard.

4. The low back side of a unidirectional seat should also be equipped with an energy

absorbing padding element for the protection of knees and lower legs of the

passenger in the seat behind.

5. Seats must be firmly mounted to the vehicle floor to prevent dislodging during the

initial collision and secondary impact of passengers striking the seat.

6. Hard glass windows must be impervious to hard projectiles that may be thrown

against windows during a journey.

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Figure 5.3 Windows Designs

7. Emergency lighting must be reliable and have the following characteristics:

- Robust—fixtures must survive all forces exhibited in a crash

- Self-contained energy source

- Uniformity of lighting—no bright and shaded areas

- Very low voltage, amperage draw

- Last a minimum of 3 hours

5.5.3 Service Guarantee Design

As is mentioned before, service guarantee is a promise by a firm that the firm will

perform at a certain level and, if that level is not met, the firm also promises to

compensate customers in some ways. Travel time guarantee is one of service guarantee,

learning from Statens Järnvägar (SJ) AB, Sweden in doing their service guarantee, PT

KAI can adopt and use their system to increase customer satisfaction. Details of service

guarantee (travel time guarantee) can be seen below:

1. A delay of 60-119 minutes grants a 25% refund on the ticket price.

2. A delay of 120+ minutes grants a 50% refund on the ticket price.

If the train delay lasts at least 60 minutes, passengers can claim compensation for:

1. Telephone and other telecommunications messages

Expenses for necessary telecommunication messages shall be compensated.

Compensation for such expenses is also provided in those cases where the

passenger, as a consequence of the service disruption, elects not to travel by train

2. Reasonable added expenses for food

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Reasonable additional expenses for food shall be compensated. Where PT KAI has

offered food, free of charge, compensation shall not be provided for corresponding

costs. Extra expenses for food are not compensable where the passenger elects not to

travel by train.

3. Reasonable alternate mode

PT KAI shall offer the passenger transportation, free of charge, from the train to the

train station, to an alternative point of departure or to the locality of the final

destination for the connection if the train is delay and canceled.

PT KAI shall have no liability when the delay, missed connection, or cancellation

can be attributed to any of the following causes:

1. Circumstances which are not linked to the operation of the railway which PT KAI

could not have avoided or the consequences of which it could not have prevented,

even if PT KAI had taken the care dictated by the circumstances;

2. Error or negligence of the passenger;

3. Behavior of a third party which PT KAI could not have avoided or the consequences

of which it could not have prevented, even if PT KAI had taken the care dictated by

the circumstances. Another company which uses the same infrastructure shall not be

deemed a third party, nor shall the administrator of the infrastructure.

In the event a passenger wishes to report a circumstance which entitles him to

compensation or assistance pursuant to these General Terms and Conditions, he should

firstly contact the train staff or the staff at staffed points of sale. Where such staff cannot

make a decision regarding compensation, the passengers should, not later than within

three months, submit his claim to PT KAI Customer Service or via PT KAI website or

otherwise in writing to PT KAI.

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CHAPTER 6 CONCLUSION

This section contains conclusion, practical recommendation, things that could

have been carried out in better way. At the end of the section, future study

recommendation is presented.

6.1 Conclusion

Through research and observation from literature review and case study, the

research questions are answered below:

1. What are the service quality attributes that have significant influences to customer

satisfaction towards PT KAI Services for short distance train (Commuter class), and

long distance train (Business class, and Executive class)?

The results of factor analysis show that there are six factors of service quality

attributes that have significant influences to customer satisfaction towards PT KAI

services for commuter class; Information, Appearances, Service coverage, Tangible,

Safety & security, and Cost. Meanwhile, there are seven factors of service quality

attributes that significantly influence customer satisfaction; Travel time,

Information, Scheduling, Comfort, Tangible, Safety & security, and Service

coverage. Similarly, there are seven factors that have significant influences on

customer satisfaction in the executive class: Appearances, Safety & security,

Information, Comfort, Tangible, Travel time, and Cost.

The naming process for all factors is done by identifying the service

attribute/variable that has high factor loading value for each class of train

transportation. The factors are also arranged based on the rank of service attributes

that has significant influences on customer satisfaction towards provided service.

For commuter class, factors that have significant influences on customer satisfaction

(is arranged based on the importance rate), namely Information factor, followed by

Appearances, Service coverage, Tangible, Safety & security, and Cost. This rule

also used for business and executive class.

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2. Are there influences between customer satisfactions towards provided services and

the desire to make a complaint?

The results of regression analysis shows that for commuter class passengers,

there is an influence between six factors (Information factor, Appearances, Service

coverage, Tangible, Safety & security, and Cost) and the desire to do a complaint.

But partially, the five factors (Information factor, Appearances, Service coverage,

Tangible, and Cost) that relate to service quality attributes explaining a factor that

has significant influence on desire to do a complaint are all rejected, except X5

(Safety & security) is accepted. It shows that Safety & security has a significant

influence on desire to do a complaint. It can be interpreted that the service

performance for commuter class in the Safety & security dimension by the train

operator (PT KAI) is still low.

For business class, there is an influence between seven factors (Travel time,

Information, Scheduling, Comfort, Tangible, Safety & security and Service

coverage) and the desire to do a complaint. And in partially the six factors (Travel

time, Scheduling, Comfort, Tangible, Safety & security and Service coverage) that

relate to service quality attributes explaining a factor that has significant influence

on desire to do a complaint are all rejected, except X2 (Information) is accepted. It

shows that Information has a significant influence on desire to do a complaint. It can

be interpreted that the service performance for business class in the Information

dimension by the train operator (PT KAI) is still low.

For the executive class, there is not an influence between seven factors

(Appearances, Safety & security, Information, Comfort, Tangible, Travel time and

Cost) and the desire to do a complaint. It can be interpreted that for executive class,

passengers are mostly satisfied with the service that given by PT KAI.

3. What is the effective mechanism to handle passenger complaint for PT KAI?

In this research, to decrease the number of complaints from customers, PT KAI

as an operator must provide the media for customers who have complaints to convey

their complaint easily. Learning from how Statens Järnvägar (SJ) AB, Sweden doing

their customer complaint handling, it can be conclude that customer could submit or

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send their complaints to the official website of PT KAI or they can use

complaint/suggestion box that provided in station, besides the customer service call

number that can be viewed inside the train, in station or other place and media.

Every complaint through official website, customer service call, letter and email

is logged and given a unique reference number, which makes it easy to keep track

of. Customers making complaints must be prepared to give their name and contact

details for the complaints to be investigated. They will also be given the option of

having someone respond to them directly or not. Where the customer has requested

a response, they will be informed of the complaint reference number as well as how

long they should expect to wait for a response. In accordance with the Privacy

Policy, any personal information collected to respond to a complaint will remain

confidential and will only be used to help resolve that complaint.

When a complaint is logged it is forwarded to and dealt with by the appropriate

area within the PT KAI organization. Complaints where the customer has requested

a response will be responded to within 5 working days of receiving the complaint. In

the case of complaints concerning emergency situations, the relevant area in PT KAI

organization structure will be notified immediately.

4. What kind of service standards and service guarantee that can be recommended to

PT Kereta Api Indonesia in order to improve their service?

To design service standards, the operator or company must know what

customers want and expect while using the service. If they are dissatisfied or their

expectation towards provided service cannot be reached, there must be something

inappropriate with this service. Therefore, it can be a cause for customer to convey

the complaint. According to the results of customer satisfaction in this research,

service standards of PT KAI can be classified into 6 details of service: service

standard for safety and security aspect; service standard for comfort and

appearances; service standard for availability of information aspect; service standard

for tangible attributes; service standard for service coverage; and service standard

for the operations of train.

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In terms of service guarantee design, this research focuses on travel time

guarantee. Learning from Statens Järnvägar (SJ) AB, Sweden when doing their

service guarantee, PT KAI can adopt and use its system to increase customer

satisfaction. Details of travel time guarantee can be explained as follows; a delay of

60-119 minutes grants a 25% refund on the ticket price, a delay of 120+ minutes

grants a 50% refund on the ticket price. If the train delay lasts at least 60 minutes,

passengers can claim compensation for: telephone and other telecommunications

messages, reasonable added expenses for food, reasonable alternate mode.

6.2 Future Studies

The suggestion that could be given for future research is related to the process and

analysis of survey in which the result will be more accurate. In addition, research can be

carried out not only for train transportation mode but also for other mode like air and

sea transportation mode. Such a research also needs to be conducted annually because

customer satisfaction always changes time to time.

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Data source about PT KAI. Official website of PT KAI. (electronic). Available:

http://www.kereta-api.com Data source about customer complain form in PT KCJ. Official website of PT KCJ.

(electronic). Available: http://www.krl.co.id Data source about SJ Annual Report 2001. Official website of SJ AB. (electronic).

Available: http://www.sj.se Data source about SJ Annual Report 2002. Official website of SJ AB. (electronic).

Available: http://www.sj.se Data source about SJ Annual Report 2003. Official website of SJ AB. (electronic).

Available: http://www.sj.se Data source about SJ Annual Report 2004. Official website of SJ AB. (electronic).

Available: http://www.sj.se Data source about SJ Annual Report 2005. Official website of SJ AB. (electronic).

Available: http://www.sj.se Data source about SJ Annual Report 2006. Official website of SJ AB. (electronic).

Available: http://www.sj.se Data source about SJ Annual Report 2007. Official website of SJ AB. (electronic).

Available: http://www.sj.se Data source about SJ Annual Report 2008. Official website of SJ AB. (electronic).

Available: http://www.sj.se Data source about SJ AB’s General Term and Conditions for Carriage by Rail. Official

website of SJ AB. (electronic). Available: http://www.sj.se Data source about SJ Sustainability Report 2008. Official website of SJ AB.

(electronic). Available: http://www.sj.se

108

APPENDIX

Appendix 1 : Customer survey form Good morning/afternoon/evening, we are from the Magister of Engineering and Transport System of Gadjah Mada University, Indonesia. For the time being, we are conducting a survey to learn customer perceptions when using public transportation services especially on Train Transportation. We kindly hope that you could spare some time to help us in this research by answering the following questions. Could we have your opinions? Yes/No*, (if no: I refuse to be interviewed because I: have no time/don’t want to

answer/have another reason i.e. .....................................................) *striketrough the unused choices.

A. CUSTOMER PERCEPTIONS TOWARDS PT KAI SERVICES You are kindly requested to respond to question No. 1 to No. 21 by circling ( ) the appropriate number that suits your personal opinion. Choice number 1 stands for “Very bad”, number 2 for “Bad”, number 3 for “Neither bad nor good”, number 4 for “Good”, and number 5 for “Very Good”.

Very Bad [1] < ----------------- > [5] Very good 1. Accesibility of station (railway

station should be easy to access/integrated system)? 1 2 3 4 5

2. Availability of parking facilities at station? 1 2 3 4 5

3. Ticket price? 1 2 3 4 5

4. Fare payment? 1 2 3 4 5

5. Queuing the ticket? 1 2 3 4 5

6. Security while waiting at/leaving the station? 1 2 3 4 5

7. Cleanliness of the trains & station? 1 2 3 4 5

8. Safety & security equipment in train or station (fire extinguisher,hammer & first aid)? 1 2 3 4 5

9. Safety information for passenger on board and off board 1 2 3 4 5

10. Facilities for disabled (toilet, special seat, wheelchair space)? 1 2 3 4 5

11. The comfort in using train transportation (appropriate climate control (air conditioner, heater, fan), seat comfort, and ride comfort)? 1 2 3 4 5

12. Security on the train (become a victim of crime “pickpocket”)? 1 2 3 4 5

13. Physical condition of the train so far (AC, fan, seat & toilet condition)? 1 2 3 4 5

14. Apperances of services personal (how they look/uniform) ? 1 2 3 4 5

15. Staff behaviour? 1 2 3 4 5

16. Readiness to help passenger? 1 2 3 4 5

17. Availability of train fleet (many operated fleets & high frequency of fleet)? 1 2 3 4 5

109

18. Punctuality in using train transportation? 1 2 3 4 5

19. Travel time when using train? 1 2 3 4 5

20. Complaint handling system adopted on train transportation (in the station)? 1 2 3 4 5

21. In general, what is your opinion about the current service conditions of train transportation? 1 2 3 4 5

B. COMPLAINT QUESTIONNIARES (FACTORS THAT INFLUENCE PASSENGERS TO MAKE A COMPLAINT)

(You are kindly requested to respond the following statements by checking "X" according to your personal opinion, Choice number 1 stands for “Very not important”, number 2 for “Not important”, number 3 for “Neutral”, number 4 for “Important”, and number 5 for “Very important”.

Very not important [1] < ----------------- > [5] Very important In your opinion, do the statement below become your consideration to make a complaint for the service in public transport, especially Train transportation? 1. Accesibility of station (railway

station should be easy to access/integrated system)? 1 2 3 4 5

2. Availability of parking facilities at station? 1 2 3 4 5

3. Ticket price? 1 2 3 4 5

4. Fare payment? 1 2 3 4 5

5. Queuing the ticket? 1 2 3 4 5

6. Security while waiting at/leaving the station? 1 2 3 4 5

7. Cleanliness of the trains & station? 1 2 3 4 5

8. Safety & security equipment in train or station (fire extinguisher,hammer & first aid)? 1 2 3 4 5

9. Safety information for passenger on board and off board 1 2 3 4 5

10. Facilities for disabled (toilet, special seat, wheelchair space)? 1 2 3 4 5

11. The comfort in using train transportation (appropriate climate

control (air conditioner, heater, fan), seat comfort, and ride comfort)? 1 2 3 4 5

12. Security on the train (become a victim of crime “pickpocket”)? 1 2 3 4 5

13. Physical condition of the train so far (AC, fan, seat & toilet condition)? 1 2 3 4 5

14. Apperances of services personal (how they look/uniform) ? 1 2 3 4 5

15. Staff behaviour? 1 2 3 4 5

16. Readiness to help passenger? 1 2 3 4 5

17. Availability of train fleet (many operated fleets & high frequency of fleet)? 1 2 3 4 5

18. Punctuality in using train transportation? 1 2 3 4 5

19. Travel time when using train? 1 2 3 4 5

20. Complaint handling system adopted on train transportation (in the station)? 1 2 3 4 5

110

C. RESPONDENT DATA If you don’t mind, please share your personal information with us. We would do our best to keep it confidential. 1. Gender a. Male b. Female 2. Your current age a. < 20 year c. 31 to 40 year b. 21 to 30 year d. > 41 year

3. Your current job a. Civil servant/TNI/POLRI c. Students

b. Private employee/ Businessman d. Other

(…..…………………) 4. Your last education a. High School c. Bachelor (S1) b. Diploma (D1 – D3) d. Post Graduate (S2/S3)

5. Frequency to using train a. < 2 c. 4 to 5 Per month b. 2 to 3 d. > 5 6. The average income a. < 1.000.000 c. 2.000.001 to 3.000.000 Per month b. 1.000.001, to 2.000.000 d. > 3.000.000

Please kindly give comment for improvement

Surveyor Name : ........................................................

Suggestion Box: ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

111

Appendix 2: Descriptive analysis results Demographic Data Frequency Gender Frequency Percent Cumulative

Percent MALE 301 80.3 80.3 FEMALE 74 19.7 100

Valid

Total 375 100 Age Frequency Percent Cumulative

Percent < 20 27 7.2 7.2 21 - 30 224 59.7 66.9 31 - 40 111 29.6 96.5 > 41 13 3.5 100

Valid

Total 375 100 Profession Frequency Percent Cumulative

Percent CIVIL SERVANT/TNI/POLRI 83 22.1 22.1 PRIVATE EMPLOYEE/BUSINESSMAN 263 70.1 92.3

STUDENTS 27 7.2 99.5 OTHERS 2 0.5 100

Valid

Total 375 100 Education Level Frequency Percent Cumulative

Percent HIGH SCHOOL 180 48 48 DIPLOMA (D1 - D3) 74 19.7 67.7 BACHELOR (S1) 115 30.7 98.4 POST GRADUATE 6 1.6 100

Valid

Total 375 100

112

Frequency Frequency Percent Cumulative

Percent 1 permonth 123 32.8 32.8 2 permonth 110 29.3 62.1 3 permonth 6 1.6 63.7 4 permonth 10 2.7 66.4 5 permonth 5 1.3 67.7 6 permonth 9 2.4 70.1 > 8 permonth 112 29.9 100

Valid

Total 375 100 Level of Income Frequency Percent Cumulative

Percent < 1.000.000 86 22.9 22.9 1.000.001 - 2.000.000 176 46.9 69.9 2.000.001 - 3.000.000 92 24.5 94.4 > 3.000.000 21 5.6 100

Valid

Total 375 100 Question Frequency: Accessibility of station Frequency Percent Cumulative

Percent Very Bad 4 1.1 1.1 Bad 25 6.7 7.7 Neither Bad nor Good 193 51.5 59.2 Good 128 34.1 93.3 Very Good 25 6.7 100

Valid

Total 375 100 Availability of parking facilities Frequency Percent Cumulative

Percent Very Bad 8 2.1 2.1 Bad 89 23.7 25.9 Neither Bad nor Good 195 52 77.9 Good 69 18.4 96.3 Very Good 14 3.7 100

Valid

Total 375 100

113

Ticket price Frequency Percent Cumulative

Percent Very Bad 7 1.9 1.9 Bad 98 26.1 28 Neither Bad nor Good 191 50.9 78.9 Good 71 18.9 97.9 Very Good 8 2.1 100

Valid

Total 375 100 Fare payment Frequency Percent Cumulative

Percent Very Bad 4 1.1 1.1 Bad 26 6.9 8 Neither Bad nor Good 156 41.6 49.6 Good 139 37.1 86.7 Very Good 50 13.3 100

Valid

Total 375 100 Queuing the ticket Frequency Percent Cumulative

Percent Very Bad 7 1.9 1.9 Bad 69 18.4 20.3 Neither Bad nor Good 223 59.5 79.7 Good 70 18.7 98.4 Very Good 6 1.6 100

Valid

Total 375 100 Safe station Frequency Percent Cumulative

Percent Very Bad 8 2.1 2.1 Bad 71 18.9 21.1 Neither Bad nor Good 199 53.1 74.1 Good 84 22.4 96.5 Very Good 13 3.5 100

Valid

Total 375 100

114

Cleanliness Frequency Percent Cumulative

Percent Very Bad 16 4.3 4.3 Bad 126 33.6 37.9 Neither Bad nor Good 179 47.7 85.6 Good 51 13.6 99.2 Very Good 3 0.8 100

Valid

Total 375 100 Safety & security equipment Frequency Percent Cumulative

Percent Very Bad 17 4.5 4.5 Bad 140 37.3 41.9 Neither Bad nor Good 171 45.6 87.5 Good 42 11.2 98.7 Very Good 5 1.3 100

Valid

Total 375 100 Safety information Frequency Percent Cumulative

Percent Very Bad 52 13.9 13.9 Bad 175 46.7 60.5 Neither Bad nor Good 116 30.9 91.5 Good 26 6.9 98.4 Very Good 6 1.6 100

Valid

Total 375 100 Facilities for disabled Frequency Percent Cumulative

Percent Very Bad 45 12 12 Bad 213 56.8 68.8 Neither Bad nor Good 87 23.2 92 Good 25 6.7 98.7 Very Good 5 1.3 100

Valid

Total 375 100

115

Comfort ness Frequency Percent Cumulative

Percent Very Bad 28 7.5 7.5 Bad 103 27.5 34.9 Neither Bad nor Good 144 38.4 73.3 Good 89 23.7 97.1 Very Good 11 2.9 100

Valid

Total 375 100 Security on train Frequency Percent Cumulative

Percent Very Bad 85 22.7 22.7 Bad 175 46.7 69.3 Neither Bad nor Good 82 21.9 91.2 Good 31 8.3 99.5 Very Good 2 0.5 100

Valid

Total 375 100 Train condition Frequency Percent Cumulative

Percent Very Bad 38 10.1 10.1 Bad 102 27.2 37.3 Neither Bad nor Good 174 46.4 83.7 Good 55 14.7 98.4 Very Good 6 1.6 100

Valid

Total 375 100 Appearance of service personal Frequency Percent Cumulative

Percent Very Bad 1 0.3 0.3 Bad 5 1.3 1.6 Neither Bad nor Good 139 37.1 38.7 Good 201 53.6 92.3 Very Good 29 7.7 100

Valid

Total 375 100

116

Staff behavior Frequency Percent Cumulative

Percent Very Bad 2 0.5 0.5 Bad 16 4.3 4.8 Neither Bad nor Good 271 72.3 77.1 Good 75 20.0 97.1 Very Good 11 2.9 100

Valid

Total 375 100 Readiness to help passenger Frequency Percent Cumulative

Percent Very Bad 2 0.5 0.5 Bad 50 13.3 13.9 Neither Bad nor Good 262 69.9 83.7 Good 55 14.7 98.4 Very Good 6 1.6 100

Valid

Total 375 100 Availability of train fleet Frequency Percent Cumulative

Percent Very Bad 5 1.3 1.3 Bad 58 15.5 16.8 Neither Bad nor Good 204 54.4 71.2 Good 95 25.3 96.5 Very Good 13 3.5 100

Valid

Total 375 100 Punctuality Frequency Percent Cumulative

Percent Very Bad 5 1.3 1.3 Bad 34 9.1 10.4 Neither Bad nor Good 206 54.9 65.3 Good 118 31.5 96.8 Very Good 12 3.2 100

Valid

Total 375 100

117

Travel time Frequency Percent Cumulative

Percent Very Bad 8 2.1 2.1 Bad 70 18.7 20.8 Neither bad nor Good 205 54.7 75.5 Good 81 21.6 97.1 Very Good 11 2.9 100

Valid

Total 375 100 Complaint handling system Frequency Percent Cumulative

Percent Very Bad 14 3.7 3.7 Bad 134 35.7 39.5 Neither Bad nor Good 186 49.6 89.1 Good 28 7.5 96.5 Very Good 13 3.5 100

Valid

Total 375 100

General satisfaction Frequency Percent Cumulative

Percent Very Bad 2 0.5 0.5 Bad 31 8.3 8.8 Neither Bad nor Good 296 78.9 87.7 Good 37 9.9 97.6 Very Good 9 2.4 100

Valid

Total 375 100

118

Means of Customer satisfaction

Type station parking price payment queuing Safe

station clean Safe equip

Safe info disabled comfort

Secure train

Train condition appearance behavior help

Avail train punctual

Travel time complain

Commuter Class 3.3600 2.9920 3.0240 3.2080 3.1440 3.0320 2.6160 2.5040 2.1920 2.2080 2.3440 2.0400 3.0800 3.2960 3.1120 3.0080 3.0400 2.9920 2.7200 2.5840

Business Class 3.2800 3.0080 2.9920 3.6160 2.8880 3.1920 2.6480 2.6320 2.3840 2.3360 2.7760 1.9840 2.3440 3.7200 3.1120 3.0320 2.9280 3.4720 3.3040 2.6400

Executive Class 3.5200 2.9360 2.7840 3.8160 2.9600 2.9600 2.9280 2.8880 2.4960 2.3120 3.4960 2.4960 2.6880 4.0000 3.3920 3.0640 3.4560 3.3200 3.1120 2.9120

Total 3.3867 2.9787 2.9333 3.5467 2.9973 3.0613 2.7307 2.6747 2.3573 2.2853 2.8720 2.1733 2.7040 3.6720 3.2053 3.0347 3.1413 3.2613 3.0453 2.7120

119

Appendix 3 : Factor analysis results Commuter Class : KMO and Bartlett's Testa Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .753

Approx. Chi-Square 421.079 df 153

Bartlett's Test of Sphericity

Sig. .000 a. Only cases for which Type = Commuter Class are used in the analysis phase.

Anti-image Matrices

SIparking Sprice Spayment Squeing Ssafestation Sclean Ssafeequip Ssafeinfo Sdisabled Scomfort Ssecurintrain Straincondition Sappearance Sbehavior Savailtrain Spunctual Straveltime Scomplain

SIparking .571a -.081 -.203 -.133 -.052 -.065 -.053 .257 .001 -.128 .070 -.080 -.333 .044 -.097 .011 -.039 -.084 Sprice -.081 .800a .055 -.126 .004 -.259 -.015 -.191 -.038 .053 .043 -.104 .082 -.041 .018 .019 -.039 -.013

Spayment -.203 .055 .539a .026 .026 .105 -.071 -.111 -.069 .130 -.028 .099 -.034 -.105 -.057 -.091 -.111 .089

Squeing -.133 -.126 .026 .686a -.066 -.004 -.067 -.029 -.008 -.052 -.039 -.147 .038 .007 .126 -.280 .012 .145

Ssafestation -.052 .004 .026 -.066 .567a .104 -.043 -.060 -.071 -.032 .023 .081 .162 .060 -.234 .043 -.037 -.038

Sclean -.065 -.259 .105 -.004 .104 .817a -.186 -.125 .032 -.055 .034 .019 .010 -.038 -.044 -.104 -.082 -.151

Ssafeequip -.053 -.015 -.071 -.067 -.043 -.186 .892a -.050 -.030 -.121 -.088 -.121 .060 -.055 -.065 .002 -.017 -.091

Ssafeinfo .257 -.191 -.111 -.029 -.060 -.125 -.050 .768a -.349 .012 -.211 -.053 -.206 -.116 -.099 -.089 .002 .025

Sdisabled .001 -.038 -.069 -.008 -.071 .032 -.030 -.349 .802a -.168 -.074 -.183 -.175 .194 -.030 -.087 .053 -.055

Scomfort -.128 .053 .130 -.052 -.032 -.055 -.121 .012 -.168 .816a -.164 -.013 -.086 .117 -.155 -.107 -.141 .054

Ssecurintrain .070 .043 -.028 -.039 .023 .034 -.088 -.211 -.074 -.164 .795a -.054 -.084 -.052 -.001 .141 .078 -.240

Straincondition -.080 -.104 .099 -.147 .081 .019 -.121 -.053 -.183 -.013 -.054 .828a .056 .048 -.070 .008 -.099 .042

Sappearance -.333 .082 -.034 .038 .162 .010 .060 -.206 -.175 -.086 -.084 .056 .625a -.035 -.011 .223 .094 -.052

Sbehavior .044 -.041 -.105 .007 .060 -.038 -.055 -.116 .194 .117 -.052 .048 -.035 .587a -.270 -.096 .004 -.037

Savailtrain -.097 .018 -.057 .126 -.234 -.044 -.065 -.099 -.030 -.155 -.001 -.070 -.011 -.270 .767a .104 -.142 -.117

Spunctual .011 .019 -.091 -.280 .043 -.104 .002 -.089 -.087 -.107 .141 .008 .223 -.096 .104 .659a -.147 -.248

Straveltime -.039 -.039 -.111 .012 -.037 -.082 -.017 .002 .053 -.141 .078 -.099 .094 .004 -.142 -.147 .800a -.049

Anti-image Correlation

Scomplain -.084 -.013 .089 .145 -.038 -.151 -.091 .025 -.055 .054 -.240 .042 -.052 -.037 -.117 -.248 -.049 .765a a. Measures of Sampling Adequacy(MSA) b. Only cases for which Type = Commuter Class are used in the analysis phase.

120

Rotated Component Matrixa,b Component

1 2 3 4 5 6 SIparking -.049 .120 .110 .859 .053 .072 Sprice .206 .390 .460 -.058 -.140 .012 Spayment .112 -.217 .130 .276 .074 .771 Squeing .088 -.091 .748 .095 -.011 -.034 Ssafestation .094 -.084 .015 -.087 .810 -.029 Sclean .111 .707 .301 .063 -.100 -.028 Ssafeequip .276 .436 .253 .147 .194 .038 Ssafeinfo .758 .214 .214 -.135 .049 .224 Sdisabled .751 .025 .245 .145 .134 -.041 Scomfort .351 .231 .174 .388 .337 -.260 Ssecurintrain .680 .233 -.118 .007 .041 .008 Straincondition .364 .097 .451 .134 .077 -.178 Sappearance .509 .019 -.266 .557 -.229 .098 Sbehavior .003 .405 -.086 -.173 .010 .651 Savailtrain .235 .400 -.133 .171 .541 .266 Spunctual -.060 .276 .641 -.090 .100 .149 Straveltime -.161 .319 .343 .178 .411 .127 Scomplain .192 .665 -.050 .081 .130 .012 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 9 iterations. b. Only cases for which Type = Commuter Class are used in the analysis phase.

121

Business Class : KMO and Bartlett's Testa Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .614

Approx. Chi-Square 425.947 Df 171

Bartlett's Test of Sphericity

Sig. .000 a. Only cases for which Type = Business Class are used in the analysis phase.

Anti-image Matrices

Sprice Spayment Squeing Ssafestation Sclean Ssafeequip Ssafeinfo Sdisabled Scomfort Ssecurintrain Straincondition Sappearance Sbehavior Savailtrain Spunctual Straveltime Scomplain Sstation Shelp

Sprice .757a -.035 -.189 -.062 -.070 -.005 -.003 -.065 -.062 -.005 -.037 .008 -.094 -.167 .133 -.004 -.085 -.026 -.007 Spayment -.035 .647a .117 .068 -.037 .029 .104 .030 -.151 .021 .068 -.045 .096 .105 -.165 -.198 .095 -.090 -.125

Squeing -.189 .117 .578a .126 -.130 .076 .000 .046 -.011 -.048 -.085 -.074 .194 -.127 .038 -.164 .012 -.247 -.071

Ssafestation -.062 .068 .126 .633a .072 .206 .069 .060 -.195 .149 .146 .019 .106 -.099 -.059 -.027 .000 -.138 -.091

Sclean -.070 -.037 -.130 .072 .710a -.125 -.195 -.017 -.032 .061 .052 -.017 .037 -.117 -.176 .152 -.143 -.081 .118

Ssafeequip -.005 .029 .076 .206 -.125 .620a .022 -.238 .147 -.175 .193 -.010 .033 .071 -.047 -.060 -.179 -.163 -.228

Ssafeinfo -.003 .104 .000 .069 -.195 .022 .770a -.028 -.096 -.132 -.082 -.022 -.141 .136 .011 -.091 -.143 -.129 .004

Sdisabled -.065 .030 .046 .060 -.017 -.238 -.028 .562a -.088 -.066 -.369 .026 .019 -.356 -.074 -.182 .197 .100 .043

Scomfort -.062 -.151 -.011 -.195 -.032 .147 -.096 -.088 .592a -.040 -.042 -.134 .194 -.053 .082 -.233 -.180 .022 -.143

Ssecurintrain -.005 .021 -.048 .149 .061 -.175 -.132 -.066 -.040 .794a -.118 .071 -.011 -.095 -.019 -.056 -.051 .003 .032

Straincondition -.037 .068 -.085 .146 .052 .193 -.082 -.369 -.042 -.118 .522a .010 -.097 .172 -.057 .226 -.059 -.010 -.151

Sappearance .008 -.045 -.074 .019 -.017 -.010 -.022 .026 -.134 .071 .010 .592a -.385 -.171 -.356 -.018 .216 .021 -.049

Sbehavior -.094 .096 .194 .106 .037 .033 -.141 .019 .194 -.011 -.097 -.385 .566a .038 .144 -.093 -.315 -.206 -.253

Savailtrain -.167 .105 -.127 -.099 -.117 .071 .136 -.356 -.053 -.095 .172 -.171 .038 .562a .109 .067 -.195 -.055 -.009

Spunctual .133 -.165 .038 -.059 -.176 -.047 .011 -.074 .082 -.019 -.057 -.356 .144 .109 .584a -.310 -.312 .020 .066

Straveltime -.004 -.198 -.164 -.027 .152 -.060 -.091 -.182 -.233 -.056 .226 -.018 -.093 .067 -.310 .625a .081 -.004 -.007

Scomplain -.085 .095 .012 .000 -.143 -.179 -.143 .197 -.180 -.051 -.059 .216 -.315 -.195 -.312 .081 .568a .142 .028

Sstation -.026 -.090 -.247 -.138 -.081 -.163 -.129 .100 .022 .003 -.010 .021 -.206 -.055 .020 -.004 .142 .554a .021

Anti-image Correlation

Shelp -.007 -.125 -.071 -.091 .118 -.228 .004 .043 -.143 .032 -.151 -.049 -.253 -.009 .066 -.007 .028 .021 .588a a. Measures of Sampling Adequacy(MSA) b. Only cases for which Type = Business Class are used in the analysis phase.

122

Rotated Component Matrixa,b Component

1 2 3 4 5 6 7 Sprice -.116 .122 .532 .141 .097 -.141 .338 Spayment .675 -.177 -.168 .025 -.112 -.040 .046 Squeing .074 .035 .277 -.134 .168 -.013 .700 Ssafestation .088 -.087 .159 .023 -.388 -.624 -.038 Sclean .067 .653 .193 -.159 -.055 .181 .250 Ssafeequip .160 .157 .165 .191 .016 .730 .054 Ssafeinfo .049 .575 -.193 .164 .403 -.013 .266 Sdisabled .237 -.090 .551 .000 .508 .245 -.091 Scomfort .491 .119 .249 .033 .213 -.536 .037 Ssecurintrain .086 .153 .139 -.039 .514 .355 .077 Straincondition -.158 .029 .002 .194 .785 -.047 -.015 Sappearance .399 .169 .154 .525 -.085 .033 .023 Sbehavior -.119 .312 -.037 .774 .092 .143 .051 Savailtrain -.040 .130 .842 .036 -.050 .011 .067 Spunctual .657 .426 -.020 .047 -.037 .144 -.151 Straveltime .777 .005 .056 .067 .051 .014 .109 Scomplain -.031 .764 .156 .202 .075 .041 -.134 Sstation .035 .057 -.044 .241 -.123 .108 .765 Shelp .117 -.175 .065 .715 .153 -.009 .066 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 11 iterations. b. Only cases for which Type = Business Class are used in the analysis phase.

123

Executive Class : KMO and Bartlett's Testa Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .710

Approx. Chi-Square 450.484 Df 190

Bartlett's Test of Sphericity

Sig. .000 a. Only cases for which Type = Executive Class are used in the analysis phase.

Anti-image Matrices

Sprice Spayment Squeing Ssafestation Sclean Ssafeequip Ssafeinfo Sdisabled Scomfort Ssecurintrain Straincondition Sappearance Sbehavior Savailtrain Spunctual Straveltime Scomplain Sstation Shelp SIparking

Sprice .650a .035 -.045 -.088 .026 .006 .026 -.172 -.058 .093 .031 .003 .022 .037 -.062 -.084 -.117 .124 -.108 -.066 Spayment .035 .777a -.057 -.189 -.067 -.021 -.068 .025 -.057 -.095 .225 -.208 .159 -.150 -.044 -.090 .053 -.055 -.099 -.031

Squeing -.045 -.057 .767a -.077 -.176 -.159 -.006 .054 -.185 .059 .044 .035 -.098 .023 -.158 -.001 .067 -.167 .057 .076

Ssafestation -.088 -.189 -.077 .699a .002 -.088 .045 -.059 .081 -.148 -.143 -.052 .054 -.271 .184 .019 .084 .047 -.197 -.112

Sclean .026 -.067 -.176 .002 .838a .054 -.063 -.048 -.150 -.123 .004 -.096 -.093 -.016 -.215 .019 -.004 .016 -.006 -.015

Ssafeequip .006 -.021 -.159 -.088 .054 .811a -.021 -.061 -.001 -.004 -.008 -.063 .097 -.164 .061 -.102 -.142 -.104 -.208 -.114

Ssafeinfo .026 -.068 -.006 .045 -.063 -.021 .556a -.249 .187 -.155 -.096 .043 .037 .077 -.130 .070 -.426 .007 .148 .047

Sdisabled -.172 .025 .054 -.059 -.048 -.061 -.249 .636a .085 -.081 -.083 .008 -.065 -.148 .036 .117 .119 -.020 -.026 -.171

Scomfort -.058 -.057 -.185 .081 -.150 -.001 .187 .085 .711a -.138 -.260 -.282 .141 -.066 -.032 -.075 -.005 .088 -.055 -.052

Ssecurintrain .093 -.095 .059 -.148 -.123 -.004 -.155 -.081 -.138 .805a -.018 .089 .075 -.047 -.167 -.056 -.095 -.072 -.045 .081

Straincondition .031 .225 .044 -.143 .004 -.008 -.096 -.083 -.260 -.018 .543a .086 .072 .135 -.019 -.162 .037 -.122 -.145 -.174

Sappearance .003 -.208 .035 -.052 -.096 -.063 .043 .008 -.282 .089 .086 .761a -.078 .022 -.111 -.017 -.026 -.078 .025 .097

Sbehavior .022 .159 -.098 .054 -.093 .097 .037 -.065 .141 .075 .072 -.078 .554a -.184 -.036 -.105 -.131 -.057 -.120 -.202

Savailtrain .037 -.150 .023 -.271 -.016 -.164 .077 -.148 -.066 -.047 .135 .022 -.184 .699a -.067 -.097 -.093 -.217 .194 .087

Spunctual -.062 -.044 -.158 .184 -.215 .061 -.130 .036 -.032 -.167 -.019 -.111 -.036 -.067 .766a -.091 .024 .059 -.195 -.108

Straveltime -.084 -.090 -.001 .019 .019 -.102 .070 .117 -.075 -.056 -.162 -.017 -.105 -.097 -.091 .801a -.138 .086 -.028 -.020

Scomplain -.117 .053 .067 .084 -.004 -.142 -.426 .119 -.005 -.095 .037 -.026 -.131 -.093 .024 -.138 .648a .040 -.127 -.167

Sstation .124 -.055 -.167 .047 .016 -.104 .007 -.020 .088 -.072 -.122 -.078 -.057 -.217 .059 .086 .040 .705a -.139 .015

Shelp -.108 -.099 .057 -.197 -.006 -.208 .148 -.026 -.055 -.045 -.145 .025 -.120 .194 -.195 -.028 -.127 -.139 .676a .195

Anti-image Correlation

SIparking -.066 -.031 .076 -.112 -.015 -.114 .047 -.171 -.052 .081 -.174 .097 -.202 .087 -.108 -.020 -.167 .015 .195 .580a a. Measures of Sampling Adequacy(MSA) b. Only cases for which Type = Executive Class are used in the analysis phase.

124

Rotated Component Matrixa,b Component

1 2 3 4 5 6 7 Sprice .057 .138 .016 .106 .080 .105 .739 Spayment .393 .539 .071 -.257 -.306 .099 .040 Squeing .587 .190 -.124 .167 .048 .026 -.173 Ssafestation .041 .755 -.045 -.099 .154 -.019 .158 Sclean .745 .031 .201 .092 .030 -.091 -.007 Ssafeequip .043 .580 .131 .111 .156 .346 -.045 Ssafeinfo -.017 -.018 .846 .056 .011 -.096 .018 Sdisabled -.020 .365 .350 .228 .222 -.503 .260 Scomfort .635 .081 -.190 -.178 .272 .234 .122 Ssecurintrain .340 .285 .530 -.260 .148 .046 -.113 Straincondition .070 .014 .052 .003 .861 .109 .026 Sappearance .556 .216 -.145 -.059 -.213 .189 .065 Sbehavior .111 .032 .049 .818 -.089 .119 -.052 Savailtrain .159 .666 .080 .247 -.234 .026 -.103 Spunctual .657 -.063 .313 .098 .067 .156 .047 Straveltime .186 .134 .082 .137 .092 .661 .172 Scomplain -.027 .064 .658 .263 -.017 .431 .129 Sstation .122 .458 -.012 .198 .166 -.004 -.592 Shelp .177 .335 .042 -.078 .346 .443 -.024 SIparking .008 .082 .133 .514 .326 -.088 .360 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 21 iterations. b. Only cases for which Type = Executive Class are used in the analysis phase.

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Appendix 4 : Regression Analysis Results Commuter Class : Model Summary

Model R R Square Adjusted R Square

Std. Error of the Estimate

Durbin-Watson

1 .328a .108 .062 .37916 2.035 a. Predictors: (Constant), Faktor6, Faktor5, Faktor1, Faktor4, Faktor2, Faktor3 b. Dependent Variable: Y

ANOVAb Table

Model Sum of Squares df Mean Square F Sig.

Regression 2.044 6 .341 2.370 .034a Residual 16.964 118 .144

1

Total 19.008 124

a. Predictors: (Constant), Faktor6, Faktor5, Faktor1, Faktor4, Faktor2, Faktor3 b. Dependent Variable: Y

Coefficientsa Table

Unstandardized Coefficients

Standardized Coefficients Model

B Std. Error Beta t Sig.

(Constant) 2.657 .362 7.337 .000 Faktor1 -.042 .061 -.071 -.687 .493 Faktor2 .015 .066 .023 .228 .820 Faktor3 .059 .090 .068 .657 .513 Faktor4 -.090 .068 -.127 -1.339 .183 Faktor5 .223 .080 .254 2.787 .006

1

Faktor6 .100 .068 .131 1.473 .143 a. Dependent Variable: Y

126

Business Class : Model Summary

Model R R Square Adjusted R Square

Std. Error of the Estimate

1 .342a .117 .064 .34775 a. Predictors: (Constant), Faktor7, Faktor1, Faktor5, Faktor6, Faktor3, Faktor4, Faktor2 ANOVAb Table

Model Sum of Squares df Mean Square F Sig.

Regression 1.869 7 .267 2.208 .038a Residual 14.148 117 .121

1

Total 16.017 124 a. Predictors: (Constant), Faktor7, Faktor1, Faktor5, Faktor6, Faktor3, Faktor4, Faktor2 b. Dependent Variable: Y Coefficientsa Table

Unstandardized Coefficients

Standardized Coefficients Model

B Std. Error Beta t Sig.

(Constant) 2.459 .358 6.861 .000 Factor 1 .054 .061 .081 .893 .374 Factor 2 .128 .058 .211 2.200 .030 Factor 3 .011 .079 .012 .135 .893 Factor 4 .168 .089 .178 1.878 .063 Factor 5 .034 .049 .063 .685 .494 Factor 6 -.029 .040 -.066 -.715 .476

1

Factor 7 -.016 .055 -.026 -.287 .775

127

Executive Class : Model Summary

Model R R Square Adjusted R Square

Std. Error of the Estimate

1 .283a .080 .025 .38979 a. Predictors: (Constant), Faktor7, Faktor5, Faktor2, Faktor4, Faktor3, Faktor1, Faktor6 ANOVAb Table

Model Sum of Squares df Mean Square F Sig.

Regression 1.552 7 .222 1.459 .189a Residual 17.777 117 .152

1

Total 19.328 124 a. Predictors: (Constant), Faktor7, Faktor5, Faktor2, Faktor4, Faktor3, Faktor1, Faktor6 b. Dependent Variable: Y Coefficientsa

Unstandardized Coefficients

Standardized Coefficients Model

B Std. Error Beta t Sig.

(Constant) 2.754 .353 7.797 .000 Faktor1 .121 .082 .145 1.472 .144 Faktor2 .023 .083 .027 .275 .784 Faktor3 -.025 .063 -.038 -.394 .694 Faktor4 .015 .063 .022 .235 .814 Faktor5 .008 .043 .018 .189 .850 Faktor6 .096 .083 .119 1.161 .248

1

Faktor7 .065 .046 .127 1.395 .166 a. Dependent Variable: Y