Understanding consumer satisfaction with railway transportation service: An application of 7Ps marketing mix

Abstract

Railway transportation (RT) plays a crucial role and it is an inseparable part of one country’s main traffic network. However, due to the advantages of aviation industry and other modes of transportation, the share of RT of total traffic volume gradually decreases and RT enterprises are facing various difficulties. Customer satisfaction is one of the essential factors for the survival of any business organization. In order to accordingly offer products and services, RT companies must understand their customers and find out to what extent the consumer is sat-isfied with their offered services and products. The objective of this study is to evaluate the effect of each factor on the passengers’ satisfaction and freight owners for RT service in Vietnam’s context. The study utilizes 7Ps marketing mix (Product, Price, Place, Promotion, People, Process and Physical evidence) to analyze the customer satisfaction level. The collected data are analyzed through the multiple regression method by the use of SPSS software to understand the relationship of marketing mix elements and consumers’ satisfaction. The study finding helps us guide the RT operators on their marketing strategy formulation. Customers will benefit through enhanced knowledge regarding both core and augmented products associated with RT services. It is also expected that this work can be used as a reference material for RT managers to enhance competitiveness.

Keywords

• railway transport
• services marketing
• 7ps marketing mix
• customer satisfaction