Abstract

Background: Transportation is a service that Government across the world recognize as being an important facet in the advancement of environmentally, socially, and economically sustainable communities. However, the public transport usage is still much lower than automobile in most of the regions around the globe, and therefore,, novel strategies requires to be updated to promote the usage public transportation.

Purpose: This research aims to explore the antecedents and consequences of customer/passenger’s satisfaction in the context of transportation industry in Ghana. In addition, to investigate the mediating role of customer satisfaction between service quality and customer loyalty.

Design/methodology/approach: The study randomly selected respondents and data was collected through sharing online survey form generated using Google form. The study used partial least square structural equation modeling for the path analysis of 423 passengers of bus transport.

Findings: The research findings of the study includes the direct positive and significant effect of service price and service quality on customer satisfaction and customer satisfaction on repurchase intention and customer loyalty. In addition, customer satisfaction partially mediate the relationship between service quality and customer loyalty.

Conclusion: This research has implications for practitioners and scholars interested in exploring importance of service quality and customer satisfaction in the context of transportation. It builds an empirical, hypothesized model, which has 38.5% explanatory power.