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CUSTOMER SATISFACTION: IMPACT OF ROAD TRANSPORTATION SERVICE

Topic:Determining the Impact of Road Transportation Service on Customer’s Satisfaction. “A Study of Peace Mass Transit – Abakaliki, Ebonyi State

CHAPTER ONE

INTRODUCTION

1.1:   Background of the Study

Due to the changing nature of businesses today coupled with increased customer demanding nature and also alternative sources of goods and services, organizations try to migrate from traditional marketing to modern marketing (Bose, 2002). Whereas the traditional marketing merely consisted in developing a product or service (product), pricing it (price) promoting it (promotion) and making it available (place) to the customer (the four P’s of marketing), modern marketing involves trust building as well as good relationship with individual customer. Thus, the result of practicing traditional marketing is to increase the volume of transaction while modern marketing will result in value addition to the customer.

Road transport has become one of the predominant modes of transport in Nigeria, aside other modes like rail and air (http://www.gipc. org.wg/pases.aspx=id=71). This mode of transport serves the vast majority of Nigerians due to its cheap nature. With a population growth in Nigeria of an average of 2% per annum in major cities, reaching a size of 24 million (in 2011) and the transport industry has grown alongside. By this development, there has been an emergence of small and medium size companies to satisfy the growing demand (Oyesikie, 2002).

Being a very competitive industry, customers’ satisfaction in Nigeria’s transport industry no longer guarantees loyalty of the customers. Numerous factors including unrestricted entry into the industry, among others, account for this. However, in order to keep and attract more passengers, road transport companies must have high service quality to satisfy and fulfill more wide range of different customer’s needs. It is important to summarize knowledge about what drives customer satisfaction and dissatisfaction in road transport are to design and attractive and marketable public transport. The focus of this study is ‘Peace Mass Transit, Abakaliki, Ebonyi State’ where the number of transport companies is increasing rapidly.

1.2:   Statement of the Problem

The advancement in today’s business world, organizations is faced with the challenges of effective customer satisfaction or customer relationship management. (Alguyen, et al, 2007) stated that one of the goals that management has its employees achieve is based on the maxim such as “the customer is always right” and “do whatever it takes to deliver your promise” or “something similar”.

The practice of neglecting or not recognizing the customer has gone on for many years, until recently when companies started realizing that their customer, did not come back. In their quest to break this barrier, many companies face a lot of challenges, especially when they lack the requisite tools or methods to arrive at this goal.

Majority of the transport companies composed by small-sized vehicles owned and operated are low-skilled young men who migrated to cities from the countryside. Over abundances of idle labour makes road transport an attractive employment opportunity. This condition leads to ignorance of passengers’ safety and discipline in using road.

Most transport companies in Nigeria are delivering poor service quality, poor maintenance of fleet and unsafe service. Big share of the vehicle fleet consists of secondhand vehicles purchased from industrialized countries ages of the vehicles are quite old and there is a low maintenance budget.

Road transport is the principal mode of transportation in Nigeria accounting for the vast majority of freight and passenger travel. The country’s road construction boom followed independence 1960, making it a hub, linking the entire West African trade zone. Privatization of many transport and logistics enterprises has led to greater efficiency, though the government continues to foot the bill for road construction and maintenance, while private contractors assume the implementation task.

Reliability, convenience and travel time are considered to have a great impact on customer satisfaction in relation with the type of the trip, but most transport companies do not take it seriously.

1.3:   Objective of the Study

The overall objective of this research is to determining the impact of road transportation service on customer’s satisfaction.

Other sub-objectives are as stated below:

  1. To identify the roles of road transportation in the movement of goods and services in Nigeria.
  2. To evaluate customers satisfaction in the Nigeria road transportation
  3. To find out strategies that could enhance customer satisfaction of Peace Mass Transit, Abakaliki.

1.4:   Research Question

To enable the research proffer solutions to the research problems, certain questions were raised. It is also believed that if the right answers to the questions are obtained it would lead to the achievement of the purpose of this study.

They are

  1. Does Road transportation play any role in the movement of goods and services?
  2. Are customers satisfied with the Nigerian road transport system
  3. What strategies could be implemented to enhance customers’ satisfaction in Peace Mass Transit, Abakaliki?

1.5: Hypothesis

H0:       There is no significant role road transportation play in the movement of goods and services.

H1:       Road transportation play a significant role in the movement of goods and services.

H0:       Customers are not satisfied with the Nigerian road transport system.

H1:       Customers are satisfied with the Nigerian road transport system.

H0:       There is no significant barriers to customers satisfaction in Peace Mass Transit, Abakaliki.

H1:       There is a significant barrier to customers satisfaction in Peace Mass Transit, Abakakili.

 1.6: Significant of the Study

This research work has academic significance due to its relevance in the field of educational institution most specifically undergraduates in marketing which is among the educational unit that trains future managers and administrators, etc. Its findings and suggestions are likely to generate academic debate on the matter and interest among scholars.

The study could also help the ministry of transport to better understand the current situation in road transportation management. And accordingly make changes to address the factors that contribute to customers’ satisfaction; this will consequently help to formulate policies aimed at solving the problem of road transportation management on customer’s satisfaction. The study will be of great importance to private organization such as transport companies and individuals concerned with the business of transportation; it will serve as a guide in the area of implementing customer satisfaction, staff training on customer satisfaction, to address the obstacle hindering effective customer satisfaction.

On the part of transport owner, it will help create awareness among them; it will help the transport owners to keep abreast of the importance of customers’ satisfaction.

Lastly, students and researchers would want to benefit from this study.

1.7: Scope of the Study

The scope of this study covers the road transportation service on customer’s satisfaction using Peace Mass Transit, Abakaliki, Ebonyi State.

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DETERMINING THE IMPACT OF ROAD TRANSPORTATION SERVICE ON CUSTOMER’S SATISFACTION. “A STUDY OF PEACE MASS TRANSIT – ABAKALIKI, EBONYI STATE”.

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