Effects of service quality and customer satisfaction on customer loyalty in high-speed rail services in Taiwan

Abstract

Service quality and customer satisfaction as perceived by 1235 passengers on high-speed rail (HSR) services in Taiwan were examined using structural equation modeling (SEM) to explain customer loyalty. The relationships among the constructs in the SEM model were tested, namely: service quality, customer satisfaction and customer loyalty. Results indicated that the five service quality attributes in HSR services with which passengers most agreed were car cleanness, followed by neat appearance of employee, employee service attitude, comfort of air conditioning, and on-time performance. Findings also revealed that service quality had a positive effect on customer satisfaction and customer loyalty, while customer satisfaction had a positive effect on customer loyalty. Theoretical and practical implications of the findings for HSR services are discussed.

Keywords:

• service quality
• customer satisfaction
• customer loyalty
• structural equation modeling
• high-speed rail