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AN EVALUATION OF TRANSPORT MANAGEMENT AND CUSTOMERS SATISFACTION IN LAGOS METROPOLIS (A CASE STUDY OF LAGBUS, LAGOS STATE)

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TABLE OF CONTENT

 

Title Page                                                                                       i

 

Certification                                                                                                                       ii

 

Dedication                                                                                                                          iii

 

Acknowledgement                                                                                 iv

 

Table of content                                                                                                                 vi

 

Abstract                                                                                                                              ix

 

 

CHAPTER ONE: INTRODUCTION

 

1.1       Background of the study                                                                                      1

 

1.2       Statement of the problem                                                                                     4

 

1.3       Research questions                                                                                               5

 

1.4       Objectives of the study                                                                                         6

 

1.5       Research hypothesis                                                                                             6

 

1.6       Significance of the study                                                                                      6

 

1.7       Scope of the study                                                                                                8

 

 

CHAPTER TWO: LITERATURE REVIEW

 

2.0       Introduction                                                                                                          9

 

2.1       Conceptual framework                                                                                         10

 

2.1.1 Management Systems on Transportation                                                           10

 

2.1.2    Strategic Planning                                                                                                 12

 

 

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2.1.3    Transportation Planning                                                                                      12

 

2.1.4    Transportation Management                                                                                13

 

2.1.5    Customer Satisfaction in Transportation Planning Process                              15

 

2.1.6    Transportation Planning Process                                                                        16

 

2.1.7    Performance Management in Transportation                                                     28

 

2.1.8    Public Management of Customer Satisfaction on Transportation                   34

 

2.1.9    The Development of Coordinated Transportation System                               38

 

2.1.10 Transport Operation Management                                                                     45

 

2.1.11 Transportation Manager                                                                                     47

 

2.1.12 Role of Road Transport in Lagos Society                                                          49

 

2.1.13 Problems of Road Transportation in Lagos                                                        53

 

2.1.14 Managing the road transportation                                                                        55

 

2.1.15 Justification of Road Transport Regulation                                                      61

 

2.1.16 Factors of Customer Satisfaction in Transportation                                           62

 

2.1.17 Managerial Roles in Transportation Management                                              65

 

2.2       Theoretical framework                                                                                         71

 

2.3       Empirical framework                                                                                            80

 

2.4       Identification of knowledge gap in the literature                                               82

 

 

CHAPTER THREE: METHODOLOGY

 

3.0       Introduction                                                                                                          83

 

3.1       Research design                                                                                                    84

 

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3.2       Population of the study                                                                                        84

 

3.3       Sample size and sampling technique                                                                  85

 

3.4       Method of data collection                                                                                    86

 

3.5       Research instrument                                                                                             86

 

3.6       Method of data presentation and analysis                                                          87

 

3.7       Validity and reliability of the research instrument                                            87

 

 

 

 

CHAPTER FOUR:

 

4.0      Introduction

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDING

88

 

 

4.1       Demographic characteristics                                                                                88

 

4.2       Data presentation and analysis                                                                            92

 

4.3       Testing of hypothesis                                                                                           111

 

4.4       Discussion of findings                                                                                         120

 

CHAPTER FIVE:     SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

 

 

5.0       Introduction                                                                                                          122

 

5.1       Summary of findings                                                                                            122

 

5.2       Conclusion                                                                                                            125

 

5.3       Recommendations                                                                                                126

 

5.4       Suggestion of future research                                                                                                                    127 References                                                                                                                    128 Appendix                                                                                                                    136

 

 

 

 

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Abstract

 

Poor planning process and ignoring managerial roles in road transportation system have crippled development and the collapse of many economic and social activities which have resulted in dissatisfaction among the customers in the industry. This is characterized by poor management that has resulted in the loss of life and property including damages worth unquantifiable amount of money. The title of this project is an evaluation of transport management and customer satisfaction in Lagos metropolis.         The objectives of this project is to evaluate the relationship that determine the factors of customer satisfaction, to evaluate the impact of planning process on customer loyalty in LAGBUS, to examine and investigate the impact of managerial roles on quality of service. The researcher made use of survey design for this study. The researcher used primary sources for data collection in the study. The study covers the populations of Lagos but focuses on commuters who patronize LAGBUS transport service. This sample size was 270 respondents. This research tested the relationships that determine the factors of customers satisfaction which include availability of buses, safety of lives and property, cost of transport, comfortability and time delivery. It also tested the impact of planning process on customer loyalty and also the impact of managerial roles on quality of service. The researcher made use of correlation and multiple regression analysis to test the hypothesis. The findings on the factors of customer loyalty shows there is a significant relationship between them. The findings on the impact of planning process on customer loyalty shows a significance level of .000 which is less than the alpha level of 0.1 this indicate that there is a relationship between planning process and customer loyalty. The findings on the impact of managerial roles on quality of service shows a significance level of .000 which is less than the alpha level of 0.1 this indicate that there is a relationship between managerial roles and quality of service. The factors of customer satisfaction have an influence on commuters before choosing a transport service. Inefficient planning process of both bus route and schedule makes commuters uncomfortable and that managerial roles increase the quality of service been offered by public transport. The researcher recommended transport company should ensure that all factors that lead to customer satisfaction should not be taking for granted because the influence commuters in choosing a transport service. Road transport companies should adopt using proper planning process and managerial roles in order to satisfy their customers. Use of effective management system to address any situation that might lead to customers dissatisfaction. Regular monitoring of employees performance and provision of quality service to customers will lead to customers satisfaction.

 

 

 

 

 

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CHAPTER ONE

 

INTRODUCTION

 

1.1       Background of the Study

 

Transport or transportation is the movement of people, animals and goods

 

from one location to another. Modes of transport include air, rail, road, water, cable,

 

pipeline and space. The field can be divided into infrastructure, vehicles and

 

operations. Transport is important because it enables trade between people, which is

 

essential for the development of civilizations. Transport infrastructure consists of the

 

fixed installation including roads, railway, canals and pipelines and terminals such as

 

airports, railway stations, bus stations, warehouse, trucking terminals. Terminals may

 

be used for interchange of passenger and cargo and for maintenance.

 

Vehicles traveling on these networks may include automobiles, bicycles, buses

 

trains, trucks, people, helicopters, watercraft, spacecraft and aircraft. Operations deal

 

with the way the vehicles are operated, and the procedures set for this purpose

 

including financing, legalities, and policies. In the transport industry, operations and

 

ownership of infrastructure can be either public or private, depending on the country

 

and mode. Passenger transport may be public, where operators provide schedules

 

services or private.

 

A mode of transport is a solution that makes use of a particular type of vehicle,

 

infrastructure, and operation. The transport of a person or a cargo may involve one

 

mode or several of the modes, with the latter case being called intermodal or

 

 

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multimodal transport. Each mode has its own advantages and disadvantages, and will

 

be chosen for a trip on the basis of cost, capability, and route.

 

However on this particular study we are looking specifically on road

 

transportation and their management functions on how their services satisfy their

 

customer. In Lagos, road transport dominates other modes of transportation in the

 

movement of passengers and goods. This is because road transportation has numerous

 

advantages over other modes of transportation.

 

Road Transportation is a necessary end right from early history. Efficient

 

transport is a critical component of economic development, globally and nationally.

 

Transportation becomes the back bone of any economy especially countries like

 

Nigeria. The mobility of people and materials especially in the present days become

 

one of the greatest needs that have to be adequately satisfied on our society and

 

economy at large (Okakunori 2006).

 

Transportation is referred to as the engine of the economy (Kunri 2005). This

 

means that without transportation management system, the entire economy will suffer

 

stagnation (kunri2005). Transportation helps to bridge the gap between producers,

 

suppliers and industrials users as well as individual commuters. In many develop

 

countries transportation accounts between 6% and 12% of the GDP.(google 2017)

 

It is important to note that not much success can be accomplished in

 

distribution of goods and services including the movement of people without

 

transportation. (Okakunori 2006).It is as a result of the great importance attached to

 

 

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transportation that man has over the years developed various transportation modes in

 

other to facilitate the movement of people and materials. The mode of transportation

 

selected will greatly depend on price, time, delivery, condition and destination,

 

customer’s patronage, and past purchase satisfaction.

 

Therefore this poor transport management can therefore jeopardize the source

 

of procurement of materials; goods and services, movement or people and even course

 

increase in prices and loss of lives. Road transport form part in the day to day

 

activities for most individuals and in Nigeria it is the principal mode of transport.

 

Customer satisfaction is a term frequently used in marketing. It is measure of

 

how products and services supplied by a company meet or surpass customer

 

expectation. Customer satisfaction is also the number of customers, or percentage of

 

total customer, whose reported experience with a firm, its product, or its services

 

(Wikipedia 2013). Urban cities in Nigeria increasingly face problems cause by road

 

transport externalities and can lead to customer dissatisfaction. For example, there is

 

an increasing trend in road traffic crashes, traffic congestion and emission of carbon

 

dioxide. The impact from road transport traffic congestion, carbon emission and road

 

crashes is significant in time, pollution and economic loss. Part of these problems

 

result to customer dissatisfaction. In many part of the country, individual tend to use

 

their private vehicle due to lack of satisfaction they derive from the service of public

 

transport. For instance, the findings of cullinane (2002) in an attitudinal survey in UK

 

showed that 41% of private cars owners would reduce their car usage if public

 

 

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transport became frequently available and reliable. Good transport management plays

 

a social role in the urban environment: it improves access to work places and service

 

infrastructure and at the same time reduces travel expenses that can lead to customer

 

satisfaction.

 

 

 

1.2       Statement of the Problem

 

Poor road transport management is one major problem that is affecting the

 

growth of the economy. Poor road transport management has led to the ineffectiveness

 

and collapse of the Lagos road system through lack of strategic planning in LAGBUS

 

management system. Strategic planning issues in public transport involve how vehicle

 

are been selected and purchased, the types of buses in a fleet, operations of the buses,

 

maintenance and servicing and other examination of other issues.

 

Poor management of LAGBUS transport system has caused breakdown of

 

vehicles that has resulted in goods and movement of people not being able to reach

 

their destination on time and this can lead to customer dissatisfaction. This has

 

become consistent because the management has not adopted continual transportation

 

planning in examining the transportation challenges facing them and to identify a plan

 

of action to improve transportation system performance. Transportation planning is a

 

process that develops information to help make decisions on the future development

 

and management of transportation systems in Lagos. Poor transportation planning

 

process by LAGBUS management has led to lack of monitoring existing conditions,

 

 

 

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lack of forecasting future population of both employees and customers, not identifying

 

current and projected future transportation problems and needs, not developing long-

 

range plan and short-range programs of alternative capital improvement and

 

operational strategies for moving people and goods and not developing a financial

 

plan for securing sufficient revenues to cover the costs of implementing strategies and

 

all this has led to the nation a damaged image, loss of huge amount of money, loss of

 

lives and properties and most customers are greatly dissatisfied with condition of road

 

transportation in Lagos.

 

And also lack of poor technological development to monitor or regulate the

 

speed of vehicles, lack of clean vehicles, high overloading of men and goods are great

 

problems to road transportation. In addition, the poor attitude of drivers towards their

 

passengers is nothing to write home about.

 

 

1.3       Research Questions

 

The specific research questions include:

 

  1. What are the relationships that determine the factors of customer

 

satisfaction in LAGBUS?

 

  1. What is the impact of planning process on customer loyalty in LAGBUS?

 

  1. What is the impact of managerial role on the quality of service in LAGBUS?

 

 

 

 

 

 

 

 

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1.4       Objectives of the Study

 

The major objective of the study is to evaluate the transport management and

 

customers satisfaction in LAGBUS.

 

  1. To evaluate the relationships that determines the factors of customer

 

satisfaction in LAGBUS.

 

  1. To evaluate the impact of .planning process on customer loyalty in LAGBUS.

 

  1. To examine and investigate the impact of managerial role on the quality of

 

service in LAGBUS.

 

 

1.5       Research Hypothesis

 

HO1:          There is no relationship that determine the factors of customer satisfaction in

 

LAGBUS

 

HO2:          Planning process does not have any impact in customer loyalty in LAGBUS.

 

HO3:         Managerial role does not have any impact on the quality of service in

 

LAGBUS.

 

 

1.6       Significance of the Study

 

This study will be useful to many sectors of the economy, such as road

 

transport companies, ministry of transport, (MOT) and academic will benefit

 

immensely from this study in the aspect of policy direction and control, formulation

 

and enforcement of all relevant laws affecting transportation. (LASTMA) Lagos State

 

 

 

 

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Traffic Management Authority will also benefit from this study in the aspect of driver

 

training, traffic safety and accident management of buses.

 

Also, the commuters, transportation companies and businessmen especially the

 

middlemen will equally benefit from the study in the aspect of service provided by

 

LAGBUS, access to available bus transit and time of delivery of both people and

 

goods. The study will be significant to the extent that it can identify the role of

 

transport management to satisfy customers in Lagos metropolis and also the country at

 

large. Explain to the transport management that using modern technology can help

 

improve their operation and give customers the satisfaction they deserve. Lastly, it

 

will be significant to the extent that is able to ascertain the benefit to be derived from

 

efficient and effective transport management in Lagos metropolis.

 

This study will benefit all this body in the aspect of provision of safe, efficient

 

and coordinated inter-modal transportation for the sustainable socio-development of

 

Nigeria at large.

 

This research will benefit the LAGBUS management on how to adopt

 

transportation management system and strategic planning process in their operation

 

that will affect their planning and decision making, transportation execution, transport

 

follow-up and measurement.

 

The research will also be significant to government in the areas of selecting and

 

determining policies and strategic programs necessary to achieve specific objectives

 

 

 

 

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enroute to the goals, and establishing the method necessary to assure that policies and

 

strategic programs are implemented.

 

 

 

1.7       Scope of the Study

 

This research work covers the transport system in Lagos metropolis with the

 

estimated population of 21million people (NPCN, Nigeria population commission of

 

Nigeria 2016) which makes it the largest city in Africa and known as one of the major

 

commercial center of the country and play an important role in the growth of Nigeria

 

economy with special focus to LAGBUS, their functions Operationalization,

 

maintenance culture, use of modern technology, problems and government policies to

 

regulate this industry as to deliver maximum satisfaction to the public. This research

 

also covers the time frame of LAGUS transport management from the period of 2007-

 

  1. LAGBUS started operations on the 17th of February 2007. This research focus

 

mainly on Lagos cause of the large population of commuters that travel by road and

 

how effective has LAGBUS management been able to reduce the problem facing

 

transport system in Lagos. LAGBUS has been one of the leading transport companies

 

in Lagos for moving people from one place to another for their daily activity. And

 

LAGBUS is one of the most patronize bus transit in Lagos. This brought about the

 

main focus and the reason for using Lagos and LAGBUS for this study.

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