The Impact of Technology-Enabled Service Quality on Customer Loyalty in Public Transportation: A Multi-Method Study of APSRTC Bus Services

Abstract

This study examines the complex relationship between technology-enabled service quality (TESQ) and customer loyalty within the public transportation sector, focusing on the Andhra Pradesh State Road Transport Corporation (APSRTC) bus services. Employing a mixed-methods approach, the research identifies key dimensions of TESQ unique to this context and assesses their impact on customer loyalty, mediated by satisfaction, trust, perceived value, perceived risk, brand image, and convenience. Data from a sample of 892 passengers are analyzed using exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM). The findings reveal a robust six-dimensional structure of TESQ (Tangibility, Reliability, Responsiveness, Assurance, Empathy, and Technology). The structural model confirms a significant direct effect of TESQ on customer loyalty, as well as a partial indirect effect mediated through satisfaction, trust, perceived value, perceived risk, brand image, and convenience. These results underscore the critical role of technology in shaping service quality and enhancing customer loyalty in public transport, providing actionable insights for both transportation operators and policymakers seeking to improve service delivery.