The Joint Effect of Perceived Service Quality, Demographic Characteristics and Customer Satisfaction On Loyalty Among Passengers of Railway Transport Services in Kenya

Abstract

The objective of the study was to determine the joint effect of perceived service quality, demographics and customer satisfaction, on loyalty. The study employed descriptive cross-sectional research design. Proportionate stratified random sampling technique was employed in selecting samples from each railway service provider. A sample size of 357 respondents was realized through use of simple random sampling. The study population comprised all railway customers who had frequently used Madaraka Express, Nairobi Commuter Rail, Kisumu Safari Train and Nairobi-Nanyuki Train passenger services in Kenya. Gathering of data was by use of a self-administered questionnaire. Data was analyzed using descriptive and inferential statistics. Factor analysis tested convergent validity, divergent validity and construct validity. ANOVA test established the results’ statistical significance. Simple linear regression analysis and stepwise regression analysis tested the research hypotheses. Results indicated significant and moderate positive relationship between perceived service quality and customer loyalty (R² =38%, p-value<0.05, β=0.616). Customer satisfaction significantly and partially intervened the relationship between perceived service quality and customer loyalty (p-value<0.05, β= 0.400). The joint effect of perceived service quality, demographic characteristics and customer satisfaction on loyalty was statistically significant and robust. The study contributes to the existing literature by revealing the partial mediating influence of customer satisfaction on the link between perceived service quality and loyalty.

Keywords: Perceived Service Quality, Demographic Characteristics, Customer Satisfaction, Customer Loyalty, Railway Transport Services, Kenya.

DOI: 10.7176/JMCR/91-05

Publication date: December 30^th 2023