“ANALYSIS OF SERVICE QUALITY OF

PUBLIC ROAD TRANSPORTATION- A

CASE OF MSRTC IN AHMEDNAGAR
DISTRICT”.
1) Prof. Rajendrasing Pardeshi. (Research Scholar)
Asstt. Professor, Marketing
Management, IBMRD, Ahmednagar – 414111
E-mail: kavirajthakur@yahoo.co.in
Mobile: 9420796119
 2) Name of the co author :
Prof. Dr. Meera Kulkarni ( Research Guide)
Professor, IMSCD&R, Ahmednagar -414001
 
 MSRTC: An Introduction
• Early bus services in Maharashtra (then part of the states of
Bombay, Madhya Pradesh and Hyderabad) were started in the
early 1920s largely due to efforts of local entrepreneurs. With
no regulatory laws governing public transportation services
these services run in ad hoc manner. The Motor Vehicle Act of
1939 brought in amongst many other things, regulation of
fares, standard routes and rules for governance and monitoring
of public transportation providers. As a result of the act
individual operators were asked to form a union on defined
routes in a particular area. Bus schedules were set in, pick-up
points, conductors, and fixed ticket prices were mandated.
• Still passenger woes continued and then in 1948 Bombay state
Government, started its own state sponsored road transport
service called State Transport of Bombay. The first blue and
silver-topped bus took off from Pune to Ahmednagar in 1948.
 Product Mix
• Shivneri: a Dadar-Pune-Dadar Volvo bus service
operating daily.
• Mahabus: An air conditioned bus service
operating between Pune and Mumbai
(Mantralay). Starts at 6:45 am and scheduled for
every 30 min till mid night
• Asiad: Asiad bus service which runs from Dadar
started in the year 1982. This was the first
venture of MSRTC in providing a semi luxury bus
service and has been a highly successful venture.
• Yatra (Festivity services): A seasonal service
targeted at travelers visiting various festivities of
Maharastra.
• Tourism packages: Along with normal bus
services MSRTC provides package tours whereby
you can buy a single ticket to travel a selective
group of tourist places in Maharastra. The groups
are mostly clubbed together based on the district
they belong to.
 MSRTC: Some facts

• MSRTC is one of the largest fleet owners in

India, operating a fleet of approximately
15,500 buses.
• They have three central workshops where the
bodies of their buses are built, approximately
2000 in numbers per year, which are located in
Pune, Aurangabad & Nagpur .
• The organization has 9 Tyre Retreading Plants.
32 Divisional Workshops.
 Rational & Significance of the study

• Today competition is not only rife, but growing more

intense constantly. However companies need to
start paying keen attention to their competitors, they
must understand their customers. MSRTC is
suffering from such competition. They have to
believe customers as core concept of their business;
customer satisfaction is what guarantees the future of
Transport companies and it is achievable by an
adoption between their services and passengers‘
needs. Finally, MSRTC must measure passenger’s
satisfaction and service quality seasonally to keep the
services corresponded with customers’ opinions.
 Review of literature and the need for
more research
• Mohammad Mehdi Bozorgi (2007) has researched in this particular
area of public transportation. In his thesis named Measuring
Service Quality in the Airline, he concluded that passengers of IAA
(Iran Asemian Airlines) are not satisfied with the perceived
services and it warns manager to focus on passengers‘
expectations. Completing a trip accurately is what the
passengers expect in the first. To improve empathy in IAA,
managers should study their target market precisely and recognize
customer’s attributes and their demands. What they really want
and how they can be satisfied.
• Dr.Das et.al. (2009) done analysis of gap in service quality through
SERVQUAL in a banking industry .They found that ‘Assurance’ is a
major service area where Banks can improve their services.
 Need for further research

• There is a need for further research in the area of

service quality in public road transportation services.
This area is neglected in India. Central Institute of Road
Transport (CIRT), Pune has done some research in
Traffic management, Road safety, Accident analysis
etc. but it is largely associated with operational
efficiency of road transport operators. There is a need
of understanding what passengers are expecting from
transport operators and what is their perception about
Maharashtra State Road Transport Corporation which
is a semi-government organization.
Research objectives & Methodology

• To analyze gap between expectations &

perceptions of customers about transport
services provided by MSRTC and measure the
service quality of MSRTC.
• SERVQUAL – a methodology for measuring
service quality
• As a way of trying to measure service quality, researchers have
developed a methodology known as SERVQUAL – a perceived
service quality questionnaire survey methodology.
SERVQUAL examines five dimensions of service quality:
Reliability ,Responsiveness Assurance; Empathy, and Tangible
(e.g. appearance of physical facilities, equipment, etc.)
• For each dimension of service quality above, SERVQUAL
measures both the expectation and perception of the service on
a scale of 1 to 7, 22 questions in total. Then, each of the five
dimensions is weighted according to customer importance, and
the score for each dimension multiplied by the weighting.
Following this, the Gap Score for each dimension is calculated
by subtracting the Expectation score from the Perception score.
A negative Gap score indicates that the actual service (the
Perceived score) was less than what was expected (the
Expectation score).
• The Gap score is a reliable indication of each of the five
dimensions of service quality. Using SERVQUAL, service
providers can obtain an indication of the level of quality of their
service provision, and highlight areas requiring improvement.
 Population and sample
• Research is based on primary and secondary
data. A total of 289 questionnaires were filled up,
collected, and analysed. A total of 10 bus stands
in Ahmednagar district were randomly selected
and 30 questionnaires from each stand were
filled up. During the data entry 11 questionnaires
were rejected due to incomplete filling and for
reducing response biasedness.
•
 Administration of Questionnaire

• The generic questionnaire as used by

Parasuraman et al. (1988) will be used here
with22 statements under 5 dimensions. The
responses will be captured in 7- point Likert
scale and gap score will be calculated by
deducing perceptions from expectations (E –
P).At the time of data collection proper care
will be taken regarding demographic profile of
the users to ensure that the result will be free
from any sort of biasedness.
 Data Collection, Analysis & Findings
• Step I: Designing SERVQUAL Instrument
• In this study researcher has used the original instrument designed by
Parasuraman et.al (1988).
• The Survey: The questionnaire below is in two sections. The first section asks
you to rank all Public Transporters according to your expectations i.e. what you
expect all Public Transporters to provide. The second section asks you to rank
Public Transporters you chose for the survey according to your experiences and
perceptions
• Expectations: This section of the survey deals with your opinions of MSRTC.
Please show the extent to which you think MSRTC should posses the following
features. What we are interested in here is a number that best shows you
expectations about institutions offering Public Transportation services.
• Perceptions: The following statements relate to your feelings about the
particular Public Transportation companies you have chosen. Please show the
extent to which you believe this Public Transportation companies i.e. MSRTC
has the feature described in the statement. Here, we are interested in a
number from 1 to 7 that shows your perceptions about the MSRTC.
• Finally the score should be analysed to find
out the weak areas where more attention is
required. The gap score indicates the extent of
gap in service quality .The larger the gap score
is more is the dissatisfaction. Overall score
under each category and total can be
presented in a single table to get an overall
picture as shown below.
 Rank each statement as follows:

Strongly Disagree Strongly Agree

1 2 3 4 5 6 7

Expectations Perceptions Gap Score

Tangibles E Tangibles P E-P

Excellent Public Transportation companies 5.9 The MSRTC has modern looking 2.4 3.5
will have modern looking equipment. equipment.
The physical facilities at excellent Public 6.8 The MSRTC physical features are 2.9 3.9
Transportation companies will be visually visually appealing.
appealing.
Employees at excellent Public 5.8 The MSRTC reception desk employees 3.2 2.6
Transportation companies will be neat in are neat appearing.
their appearance.
Materials associated with the service 4.7 Materials associated with the service 3.1 1.6
(pamphlets or statements) will be visually (such as pamphlets or statements) are
appealing at an excellent Public visually appealing at the MSRTC.
Transportation companies

Total 23.2 11.6 11.6

Tangibles Average Gap Score ( Total of E-P/4 ) 2.9

Reliability E Reliability P E-P
When excellent Public Transportation 4.8 When the MSRTC promises to do 3.2 1.6
companies promise to do something by a something by a certain time, it does
certain time, they do. so.
When a customer has a problem, 5.6 When you have a problem, the MSRTC 3.1 2.5
excellent Public Transportation shows a sincere interest in solving it.
companies will show a sincere interest in
solving it.
Excellent Public Transportation 5.8 The MSRTC performs the service right 2.7 3.1
companies will perform the service right the first time.
the first time.
Excellent Public Transportation 6.1 The MSRTC provides its service at the 3.4 2.7
companies will provide the service at the time it promises to do so.
time they promise to do so.
Excellent Public Transportation 6.8 The MSRTC insists on error free 2.8 4.0
companies will insist on error free records.
records.
Total 29.1 15.2 13.9
Average Gap Score ( Total of E-P/5 ) 2.78
Reliability
Responsiveness E Responsiveness P E-P

Employees of excellent Public 6.3 Employees in the MSRTC tell you 3.4 2.9
Transportation companies will tell exactly when the services will be
customers exactly when services will performed.
be performed.
Employees of excellent Public Employees in the MSRTC give you
Transportation companies will give 5.3 prompt service. 3.2 2.1
prompt service to customers.
Employees of excellent Public 6.4 Employees in the MSRTC are always 3.1 3.3
Transportation companies will always willing to help you.
be willing to help customers.
Employees of excellent Public 5.7 Employees in the MSRTC are never 1.3 4.4
Transportation companies will never too busy to respond to your
be too busy to respond to customers' request.
requests.
Total 23.7 11.0 12.7

Average Gap Score ( Total of E-P/4 ) 2.68

Responsiveness
Assurance E Assurance P E-P

The behavior of employees in excellent 5.8 The behavior of employees in the 2.2 3.6
Public Transportation companies will MSRTC instills confidence in you.
instill confidence in customers
Customers of excellent Public 5.3 You feel safe in your transactions 3.2 2.1
Transportation companies will feel safe with the MSRTC.
in transactions.
Employees of excellent Public 4.8 Employees in the MSRTC are 2.6 2.2
Transportation companies will be consistently courteous with you.
consistently courteous with customers.
Employees of excellent Public 6.4 Employees in the MSRTC have the 3.6 2.8
Transportation companies will have the knowledge to answer your
knowledge to answer customers' questions.
questions.
Total 22.3 11.6 10.7

Average Gap Score ( Total of E-P/4 ) 2.68

Assurance
Empathy Empathy

Excellent Public Transportation 6.8 The MSRTC gives you individual 4.2 2.6
companies will give customers individual attention.
attention.
Excellent Public Transportation The MSRTC has operating hours
companies will have operating hours 6.2 convenient to all its customers. 3.1 3.1
convenient to all their customers.
Excellent Public Transportation 5.6 The MSRTC has employees who give 2.3 3.3
companies will have employees who give you personal attention.
customers personal service.
Excellent Public Transportation 6.0 The MSRTC has your best interests at 2.2 3.8
companies will have their customers' best heart.
interest at heart.
The employees of excellent Public 6.5 The employees of the MSRTC 3.4 3.1
Transportation companies will understand your specific needs.
understand the specific needs of their
customers.
Total 31.1 15.2 15.9
Average Gap Score ( Total of E-P/5 ) 3.18
Empathy
Dimension Stateme Expectatio Percepti Gap Score Average for
nt n Score on Score Dimension
Tangibles 1- 4 23.2 11.6 11.6 2.90
Reliability 5-9 29.1 15.2 13.9 2.78
Responsivene
ss 10-13 23.7 11.0 12.7 3.18
Assurance 14-17 22.3 11.6 10.7 2.68
Empathy 18-22 31.1 15.2 15.9 3.18

Total 14.72

Table 1 -SERVQUAL
Unweighted Average Calculation of SERVQUAL
score: ( Total / 5 ) Scores 2.944

Step II Calculation of Un-weighted score

Features Points
The appearance of the MSRTC’s physical facilities, equipment, 13
personnel & communication materials.(Tangibles )

The MSRTC’s ability to perform the promised service 23

dependably and accurately ( Reliability )
The MSRTC’s willingness to help customers and provide prompt 21
service. ( Responsiveness )
The knowledge and courtesy of the MSRTC’s employees & their 31
ability to convey trust and confidence.(Assurance )
The caring individual attention the MSRTC provides its 12
customers. ( Empathy )
Total: Table 2 - SERVQUAL Importance Weights 100

Step III: Assigning Weights

SERVQUAL from Table 1 from Table 2 Weighted
* =
Dimension Un-weighted Weights Score

Score (Step 2 ) (Step3)

Tangibility 2.90 * 0.13 = 0.377

Reliability 2.78 * 0.23 = 0.639

Responsivenes
s 3.18 * 0.21 = 0.669

Assurance 2.68 * 0.31 = 0.831

Empathy 3.18 * 0.12 = 0.382

Average Weighted score: 2.898

Table 3 - Calculation of Weighted SERVQUAL
Scores
Step IV: Calculation of weighted Score
 Findings
• The dimension Empathy has the highest average gap
score (un-weighted. But after after adjustment with
weights, the score becomes 0.382 that is no highest.
Thus, the weight has a lot of implication. Individually,
the customers are very much dissatisfied in this
category but they believe that it should have less
weight at the time of calculating aggregated score. On
the basis of weighted score, the dimension assurance
got the highest score. It means that the performance
of the MSRTC in this category is not good and it should
give sufficient attention to all of the subcategories
under this dimension.
 Further research

• This type of analysis may be done across all the

travel and tourist companies within the public
transportation industry to have an idea regarding
competitive position in terms of service quality
via customer satisfaction. This analysis may also
be done within the MSRTC over different periods
of time to analyze the improvements. If gap score
reduces gradually, the service quality improves
leading to more customer satisfaction.
 
 Conclusion

• Analysis of service quality is helpful in

identifying weak areas where immediate
action is warranted. This study concludes that
passengers are not so much satisfied in terms
of assurance. The score value individually may
mean nothing; still, it may reflect the ranking
(thrust areas) and improvements as compared
with earlier periods or years.
Thank You!