Who stays loyal to transit? Understanding preference-based heterogeneity in service satisfaction

Sina Asgharpour, Sajad Askari and Mohammadian, Abolfazl (Kouros)

Research in Transportation Economics, 2025, vol. 112, issue C

Abstract: Public transit ridership has faced a severe decline in recent years, further intensified by the COVID-19 pandemic. To counter this, transit providers are implementing policies to retain their users. One such strategy is to improve service quality, which enhances rider satisfaction and loyalty. However, due to differences in perception among users, a one-size-fits-all policy may not address riders’ diverse needs effectively. In this study, we addressed heterogeneity in how service quality factors influence satisfaction and future use among transit users, using market segmentation approach and survey data collected from 10,547 transit riders in Chicago in 2022. First, we applied a multi-group analysis to assess the statistical significance of heterogeneity in the factors influencing transit satisfaction and loyalty. Subsequently, to translate heterogeneity into actionable policies, we conducted Importance-Performance Analysis (IPA). Findings indicate that individuals with higher incomes and higher education prioritize cleanliness and reliability. For female passengers, enhancing safety measures is crucial, while riders with disabilities would benefit significantly from improvements in service comfort. Furthermore, intersectional analysis demonstrates that accounting for overlapping socio-demographic characteristics reveals a more accurate pattern of heterogeneity than one-dimensional analysis. The findings help transit agencies to customize their services to user-specific needs and encourage transit ridership.

Keywords: Public transit; Service quality; Satisfaction-loyalty theory; Market segmentation; Multi-group analysis; Importance-performance analysis (search for similar items in EconPapers)
JEL-codes: R4 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.retrec.2025.101608

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