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
Table of content vi
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
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
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
DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDING
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
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.
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
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
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
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
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,
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:
- What are the relationships that determine the factors of customer
satisfaction in LAGBUS?
- What is the impact of planning process on customer loyalty in LAGBUS?
- What is the impact of managerial role on the quality of service in LAGBUS?
1.4 Objectives of the Study
The major objective of the study is to evaluate the transport management and
customers satisfaction in LAGBUS.
- To evaluate the relationships that determines the factors of customer
satisfaction in LAGBUS.
- To evaluate the impact of .planning process on customer loyalty in LAGBUS.
- 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
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
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
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
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-
- 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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