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Changing Consumer Behavior Paradigms: Does Passenger Age Impact Factors Influencing MRT Usage?

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Abstract

Mass Rapid Transit (MRT) services including metro and tram services are designed to convey large volumes of passengers, while tackling congestion and environmental concerns faced in large urban areas. However, MRT involves a major capital outlay, and in order to recoup their investment and to leverage the environmental benefits of MRT services, operators must determine novel approaches to motivate widespread use of the service. It is known that age often impacts consumer behavior, while many of the growing markets in Asia have a much younger demographic profile compared with western markets that could impact traditional models and accepted practices for achieving customer loyalty. In this regard, a conceptual model of consumer behavior in MRT services was tested using structural equation modeling based on age segmentation, with data collected from Dubai metro passengers. While service quality, corporate reputation and engagement were all determinants of perceived value for those over 30 years (p<0.05), for younger passengers (<30 years) only reputation was found to influence value. The overriding effect of reputation influencing consumer behavior, particularly for younger consumers, using the Dubai metro ran contrary to the traditional findings where quality has been the key determinant of value. The reasons and implications of the preponderant role of corporate reputation in visible services in a collectivist Asian culture are discussed and suggestions are made to motivate the enhanced use of metro services.

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Authors and Affiliations

  1. e-School of Business and Quality Management, Hamdan Bin Mohammed e-University, Dubai, UAE

    Sanjai Parahoo

  2. Higher College of Technology, Sharjah, UAE

    Heather Harvey

  3. Hamdan Bin Mohammed e-University, Dubai, UAE

    Gihad Radi

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  1. Sanjai Parahoo
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  2. Heather Harvey
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  3. Gihad Radi
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Appendix

Appendix

Appendix Measurement Items

Customer loyalty (Zeithaml et al., 1996)

  1. 1

    I intend to continue to use Dubai metro in future.

  2. 2

    If I have the opportunity, I intend to increase the use of Dubai metro in future.

  3. 3

    I say positive things about Dubai metro.

  4. 4

    I recommend Dubai metro to my friends.

Customer satisfaction (Forgas et al., 2010)

  1. 1

    I am very satisfied with the services provided by Dubai metro.

  2. 2

    Dubai metro has fulfilled my needs.

Value (Forgas et al., 2010)

  1. 1

    Considering the price I pay and the benefits I get, using Dubai metro represents a good option to travel.

  2. 2

    Dubai metro is accessible to me.

Service quality (Parasuraman et al., 1988)

  1. 1

    I received excellent customer service at Dubai metro.

  2. 2

    The physical appearance of Dubai metro and its infrastructure is visually appealing.

  3. 3

    I like the ambience at Dubai metro stations.

Reputation (Forgas et al., 2010; Brown and Dacin, 1997).

  1. 1

    Dubai metro has a good reputation.

  2. 2

    The image associated with Dubai metro is positive.

  3. 3

    Dubai metro represents a smart way to travel.

Engagement (drafted from conceptualization of construct and in-depth interviews)

  1. 1

    I play an active role in my travel by using self-service equipment at Dubai metro stations.

  2. 2

    I have good interactions with Dubai metro in self-managing my transport service.

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Parahoo, S., Harvey, H. & Radi, G. Changing Consumer Behavior Paradigms: Does Passenger Age Impact Factors Influencing MRT Usage?. Corp Reputation Rev 17, 64–77 (2014). https://doi.org/10.1057/crr.2013.25

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