The Effect of Service Quality and Service Value on Suroboyo Bus Passenger Satisfaction

Abstract

It is important for the public transit operator to understand the effect of service quality and service value on passenger satisfaction, to maintain passengers loyalty and to attract more passengers. This study analyzed the effect of service quality and service value on Suroboyo Bus passengers satisfaction. Data were collected from a random sample of 300 Suroboyo Bus passenger and was analyzed using Structural Equation Modelling. Results show that service quality has significant positive effects on the service value, and both the service quality and the service value have significant positive effects on the passenger satisfaction. The results as well indicate that service quality only explains up to 4.5% variance of service value, while service quality and service value explains up to 48.8% variance of passenger satisfaction. Additionally, Suroboyo Bus passenger satisfaction more affected by service value, than by service quality.