Chapter 1

“Customer Satisfaction on Online Bus Ticketing in Bangladesh”

Md. Abu Yousuf
Master of Business Administration
East West University

Abstract

Recently, internet technology is considered to be the most used information and communication
technology by organizations: it can ease the process of transactions and reinforce the relation
between companies and customers. Electronic services are shaping a new trend around the world.
The development of information technology and widespread use of the Internet makes it easier
to perform any work anywhere. New service trends are emerging. Bangladesh, as a developing
economy is also working to build a Digital Bangladesh. Automation systems are taking central
roles in all sorts of work, from government to private. One of the newest of these trends is the
introduction of online ticketing or e-ticketing and home delivery. During the busy times of the
year, especially during the festivals like Eid, Puja and other holidays, people rush to their homes
in villages by water, road and train. The struggle to get a single ticket has prompted this initiative.
In this study, a qualitative analysis has been made on impact of online ticketing technique on
customer satisfaction in Bangladesh. The findings indicate that customer satisfaction with e-
ticketing services was influenced by all of the independent variables measured (Data security,
Customer and Technical Support, and User-Friendliness) were noted to have significant impact on
customer satisfaction with e-ticketing services.

1. Introduction
The popularity of Internet technology has increased substantially over the course of the last
several years. As a result, organizations have worked diligently to develop new methods for
interfacing with customers. Central to this process has been the development of e-tickets. E-
tickets appear to offer a number of advantages to organizations, including lower costs and
increased operational efficiency. As such, it is projected that the use of e-tickets will only continue
to increase over time. Although it is not fair to argue that e-tickets have become ubiquitous, it is
evident that the proliferation of e-tickets represents a change in the way that traditional ticket
purchasing occurs. Even though e-ticketing services appear to be the future of operations for

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many organizations seeking to streamline operations and improve customer service, research
regarding e-ticketing and e-service indicates that these processes have not been without their
challenges et al.
The cognitive elements of e-ticketing have become such an important issue of concern for
organizations in recent years as efforts to expand e-ticketing progress. Specifically, the issue of
customer satisfaction in e-ticketing has become a central issue of focus, prompting organizations
to investigate the specific variables that shape customer outcomes when choosing e-ticketing
option. Using this as a foundation for investigation, the current research utilizes customer
satisfaction as the dependent variable to assess what specific independent variables (customer
technical support, infrastructure, data security and/or user-friendliness) shape customer
satisfaction in decision-making when it comes to purchasing an e-ticket. By correlating
independent variables with customer satisfaction, it will be possible to acquire a deeper
understanding of how customer satisfaction is developed when it comes to e-ticket purchasing
and use by consumers.

2. Literature Review

Mehedi Shahnewaz Jalil (2015) in his research paper entitled “E-Service Innovation: A Case
Study of Shohoz.com” tries to analyze the operation, structure, promotion and marketing
strategies of shohoz.com as an alternate service through electronic medium and converge in the
transport sector of Bangladesh. It was found in the study that the number of customer buying
bus tickets through online are increasing day by day. Most importantly the initiative is entirely
private funded. However, if a collaboration can be made between the government and the firm,
then it can thrive with more success in the marketplace.

Vyas, P. (2014) in his research paper entitled “The growth of online bus ticketing industry:
redBus route to success in the Indian market” attempts to give the readers an overview about
Indian travel industry in context of redbus. Although the bus travel industry is used by millions of
people in India, it is highly fragmented. After the buses being introduced to transport system it
took a little time to witness some innovations. The paper attempts to traverse through the
journey of ‘redbus’ which is the largest online bus ticketing agency in India.

R. Ramya (2015) undertook the project entitled “Customer satisfaction on online bus ticket
booking” with an objective to analyze and evaluate the level of customer satisfaction. The main
aim of this study was to find out the level of customer satisfaction towards online reservation of
bus tickets. The study revealed that socio-economic factors like age, educational qualification,
occupation, monthly income earnings of the family have direct impact on the level of customer
satisfaction of the customers in relation to online reservation of bus tickets.

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 Chapter 2: Analysis and Interpretation
2.1 Factors influencing customer satisfaction on online bus ticketing
Critical review of the literature suggests that E-ticketing Technique factors such as Customer
Technical Support, Infrastructure, Security and User-Friendliness work together to shape the
relationship with customer satisfactions.

2.1.1 Customer/Technical Support

Evaluation of the factors which contribute to customer adoption of e-ticketing clearly indicates
that customer and technical support are critical issues of concern. Study asserts that customer
perceptions of service quality will play a significant role in shaping decision-making for the
individual to utilize e-ticketing services in Bangladesh. Customer perception influenced by the
level of support provided to the customer, especially when problems arise in e-ticketing service.
If the customer believes that the organization will provide customer service and support through
the purchase of e-tickets, customers will be more likely to purchase these products.

Previous research regarding this issue suggests that while many companies employing e-ticketing
believe that this service should preclude the need for extensive customer service - thus reducing
costs - in actuality, this is not the case. Researchers have found that the implementation of e-
ticketing often requires the development of targeted customer service practices that address
specific customer needs related to e-ticketing and e-service. Without these supports in place,
customers will view the e-ticketing process as cumbersome and will not gravitate to e-service to
meet their needs.

2.1.2 Infrastructure

Infrastructure to support e-ticketing operations may also play a role in developing customer
satisfaction for these services. As noted in the introduction of this investigation, e-ticketing
services typically developed in an ad hoc manner within the organization. As a result, e-ticketing
was not initially integrated with other operations, leading to problems when customers required
additional service or support. In order to ensure effective and efficient use of e-tickets,
organizations have to establish network architectures to support e-ticketing services. These
infrastructures have been essential to creating a comprehensive system that simultaneously
addresses customer needs while creating the supports needed to streamline operations within
the organization. Without the infrastructure to support e-ticketing, organizations would not be
able to utilize these services to achieve cost reductions and enhanced customer satisfaction. The
infrastructure used by the organization will have implications for the ability of the customer to
use the system and to ensure accuracy when purchasing a ticket.

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2.1.3 Data Security

Data security is also an issue of concern impacting consumer behavior and decision-making with
regard to online bus ticketing in Bangladesh. The security concerns associated with e-ticketing,
noting that security breaches remain a significant barrier for the adoption of e-ticketing services
in many transportation organizations and agencies.

Researches examine security issues that can arise in the use of e-ticketing services. As
acknowledged by researchers, security issues have been reported with e-tickets as a result of
efforts on the part of organizations to integrate e-services with other customer relationship
management (CRM) programs.

Security issues in online services including e-ticketing have been noted to be a significant problem
for many consumers. Perceptions of security impact the level of trust for the consumer. If trust
is not present in the relationship between the customer and the e-service provider, there is less
likelihood that the consumer will conduct business with the organization.

2.1.4 User Friendliness

E-ticketing services must also be user-friendly for the customer. The issue of user-friendliness,
noting that customers, depending on their willingness to use mobile technology, will view this
issue differently. Specifically, the researchers examined the use of e-ticketing systems in the
public transportation system of Bangladesh. Tracking usage patterns and customer preferences,
found that e-ticketing services were convenient for regular and semi-regular customers using the
transportation system. These individuals found the e-ticketing system easy to use and navigate.
For less regular users, the system was viewed as difficult to utilize, resulting in a decline of e-
ticket use among this group.

2.2 Hypotheses
Hypotheses 1: There a significant effect of e-ticketing factors on customer satisfaction.
Hypotheses 2: There is a significant effect of “customer/technical support” on customer
satisfaction of online bus ticketing in Bangladesh.
Hypotheses 3: There is a significant effect of “infrastructure” on customer satisfaction of online
bus ticketing in Bangladesh.
Hypotheses 4: There is a significant effect of “Data Security” on customer satisfaction of online
bus ticketing in Bangladesh.
Hypotheses 5: There is a significant effect of “User-Friendliness” on customer satisfaction of
online bus ticketing in Bangladesh.

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2.3 Population and Sample
This research was conducted in Dhaka city to find out the factors affecting the online reservation
of bus tickets in Bangladesh and also to find out at what extent the customers are satisfied with
current pace of service of e-ticketing service providers in Bangladesh. A questionnaire was used
to get the responses from population consist of students, job holders, businessmen and general
public who have used the online bus ticketing service. Sample size was taken to be 50.
Hypotheses were formed to find out the factors (customer technical support, infrastructure, data
security and/or user-friendliness) shape customer satisfaction in decision-making when it comes
to purchasing an e-ticket.

2.4 Data Collection and Analysis

For the purpose of this investigation multiple regression modeling and simple regression was
used to evaluate the relationships between variables. The questionnaire used for the research
was designed based on an analysis of the empirical literature. Components of e-ticketing on
customer satisfaction were measured using a 5-point scale with 5 = Excellent and 1 = Poor.
Respondents were asked to evaluate their reaction to each of the assessments, identifying areas
for agreement and disagreement.

Scoring for the questionnaire included an overall review of the total scores for all independent
variables (customer and technical support, infrastructure, data security and user-friendliness).

H1: There is a significant effect of e-ticketing factors on customer satisfaction.

To answer the main research question “to what extent does the proposed model, and in
particular the role of components: Customer Technical Support, Infrastructure, Security and
User-Friendliness, play in Customer Satisfaction?” Multiple linear regression analysis was used to
explore the impact of the independent variables (customer and technical support, infrastructure,
data security and user-friendliness) on the dependent variable customer satisfaction. The total
R2 value includes a unique results support and accepting hypotheses H1 with (R2= .763) shown
in Table 3, which indicates that the hypothesis was accepted.

E-Ticketing B Beta t-value Sig R2 Adjusted R2 F Sig hypothesis

Factors
E-Ticketing .637 .712 13.409 .000 .763 .577 121.2 .000 Accepted
Factors

H2: There is a significant effect of “customer/technical support” on customer satisfaction of

online bus ticketing in Bangladesh.

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The results from the single linear regression analysis as shown in table provide support for
accepting hypotheses h2. The coefficient of determination (R2 = .474) indicates that a strong
effect exists between Customers/Tech Support and Customer Satisfaction.

E-Ticketing Factors B Beta t-value Sig R 2 Adjusted R2 F Sig hypothesis

Infrastructure .431 .474 7.125 .000 .474 .220 50.76 .000 Accepted

H3: There is a significant effect of “infrastructure” on customer satisfaction of online bus ticketing
in Bangladesh.

The results from the single linear regression, as shown in Table, provide support for accepting
hypotheses h3 by showing that there is a positive correlation between the independent variable
of Infrastructure and the dependent variable of Customer Satisfaction, which indicates that
Infrastructure accounts for a larger amount of the variance in customer satisfaction with R = .306.

E-Ticketing Factors B Beta t-value Sig R 2 Adjusted R2 F Sig hypothesis

Infrastructure .486 .553 8.789 .000 .306 .302 77.2 .000 Accepted

H4: There is a significant effect of “Data Security” on customer satisfaction of online bus ticketing
in Bangladesh.

The results from the single linear regression, as shown in Table, provide support for accepting
hypotheses h4 by showing that there is a positive correlation between the independent variable
of data security and the dependent variable of Customer Satisfaction, which indicates that
Infrastructure accounts for a larger amount of the variance in customer satisfaction with R = .507.

E-Ticketing Factors B Beta t-value Sig R 2 Adjusted R2 F Sig hypothesis

Data Security .637 .712 13.409 .000 .507 .504 179.8 .000 Accepted

H5: There is a significant effect of “User-Friendliness” on customer satisfaction of online bus

ticketing in Bangladesh.

The results from the single linear regression, as shown in Table 6, provide support for accepting
hypotheses h5 by showing that there is a positive correlation between the independent variable
of user-friendliness and the dependent variable of Customer Satisfaction, which indicates that
Infrastructure accounts for a larger amount of the variance in customer satisfaction with R2 =
.443.

E-Ticketing Factors B Beta t-value Sig R 2 Adjusted R2 F Sig hypothesis

User-Friendliness .487 .665 11.792 .000 .443 .440 139.056 .000 Accepted

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 Chapter 3: Findings and Recommendations
3.1 Findings
Based on the data obtained for this investigation, it becomes evident that there is an impetus for
organizations using e-ticketing services to carefully consider each of the independent variables
noted in a comprehensive platform for online bus ticketing in Bangladesh. Each of the variables
contributes significantly to the development of customer satisfaction. However, it is evident that
data security, customer and technical support, and user-friendliness represent the most
significant variables for consideration. Infrastructure is clearly important but may not be as
evident to the customer utilizing an e-ticketing system. Infrastructure for e-ticketing appears to
support the other functions of security, customer service, and user-friendliness.

The results in conjunction with the literature reviewed on the topic suggest that the development
of an integrated system is thus imperative for the success of online bus ticketing systems in
Bangladesh. When information technology architecture is developed and integrated as part of
the organization’s system for customer service, the end result is a fully functioning system that
can provide elements of data security, customer and technical support as well as user-
friendliness. As in the literature, the need for creating a comprehensive and integrated
infrastructure for the development of e-ticketing systems is emphasized.

3.2 Recommendation
The ad hoc systems of bus ticketing have been widely used in the past and it is evident that in
order to achieve high levels of customer satisfaction, integrated systems that offer a number of
different supports for the end user are needed. When developing e-ticketing services,
organizations must be aware of the need for: customer, data security and the development of
systems that are easy to use from the point of view of the customer. The development of user-
friendliness in e-ticketing can be tricky and may require the organization to garner an integral
understanding of its customer base.

The implications of this research are quite significant as they require the organization to
comprehensively and holistically develop and implement online bus ticketing services. By
addressing e-ticketing in this manner, organizations will be able to effectively cover most of the
pertinent concerns that will impact customer satisfaction with e-ticketing. Although the process
is one that will require the organization to engage in more extensive planning and development
for e-ticketing, it is also one that should improve the ability of the organization to establish
effective and efficient e-ticketing services without the need for continual change and
improvement to the systems over time. However the following actions can be taken to for
superior customer satisfaction in online bus ticketing:

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● The services should be provided as per the promises made by service provider.
● Personal information should be safe.
● Few more facilities for online payment should be added to the websites.
● Refund should be done as soon as possible.
● Details related to the monetary transactions should be secured.

Conclusion
Online ticketing has revolutionized the entire transportation and communication industry
creating a borderless world. But companies are continuously pushing its limits to find an empty
space in the marketplace where they can tuck in. Customer satisfaction in e-ticketing is a complex
phenomenon that is shaped by a wide range of variables including customer technical support,
infrastructure, data security and user-friendliness. Understanding these issues is critical for
organizations to create e-ticketing systems that initially meet customer needs and generate a
high level of satisfaction. E-ticketing systems that meet these requirements will provide the
organization with satisfied customers who will express their satisfaction through loyalty and by
remaining with the organization over the long-term. High levels of customer retention will form
the foundation to maintaining the organization’s bottom line. Although creating e-ticketing
systems that achieve customer satisfaction is a significant undertaking for the organization,
addressing the key issues noted in this investigation should facilitate the ability of the
organization to create an e-ticket system that allows for building customer satisfaction, loyalty
and retention.
The online bus ticketing website shohoz.com in Bangladesh is one of the examples which clearly
indicates finding a customer’s problem and finding a way to solve it can create a new type of
business. Inspired by shohoz.com, Cash on Delivery (COD) system for railway e-tickets, offered
by BookmyTrain.com, has now been started by Indian Railways. Service innovation of one country
is opening up boundaries in another and eventually the whole world. The challenge is there to
find a new concept but having an open mind and a feeling of service providing attitude can find
new ideas and innovate services in a whole new level.

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BIBLIOGRAPHY & REFERENCE
Akounni, A. M. A. (2009). Mobile based applications for bus ticketing services. College of Arts and
Sciences, Universiti Utara Malaysia.

Bangladesh Bureau of Statistics website. Population of Bangladesh. Available at

http://www.bbs.gov.bd/PageReportList s.aspx?

Bangladesh Telecommunication Regulatory Corporation website. Internet subscribers in Bangladesh.

Available at http://www.btrc.gov.bd/content/internet-subscribers-bangladesh-may-2015

Bagrecha, D. Chaya & Alam, Sadiq (2016). Challenges and Opportunities in Online Reservation of Bus
Tickets. IOSR Journal of Business and Management (IOSR-JBM). Volume 18, Issue 6 .Ver. IV.

Jalil, Mehedi Shahnewaz (2015). E-Service Innovation: A Case Study of Shohoz.com. 6th International
Research Symposium in Service Management, IRSSM-6 2015, 11-15 August 2015, UiTM Sarawak,
Kuching, Malaysia.

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ANNEXURE
Questionnaire

Topic: “Customer Satisfaction on Online Bus Ticketing in Bangladesh”

Introduction

Online Bus Ticketing Portal initiative is similar to many other ticketing portals around the world.
Online Bus Ticketing Portal is designed to create a paperless ticketing, and also ease the traffic
congestion in bus stations.

Name: _________________________ Gender: □ Male □ Female □ Others

Age: ___________________________ Mobile No: _______________________

1. Have you heard of Online Bus Ticketing system before?

□ Yes □ No
2. Have you used this Online Bus Ticketing System to purchase a bus ticket before?

□ Yes □ No
3. Do you think that online bus ticketing is more efficient compared to buying a bus ticket over
the counter?

□ Yes □ No
4. Do you think online bus ticketing is user friendly?

□ Yes □ No
5. Are the bus ticketing web sites informative?

□ Yes □ No
6. Do you think online bus ticketing is cost and time effective?

□ Yes □ No
7. Do you find online bus ticketing is reliable?

□ Yes □ No
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8. Do you find online bus ticketing payment convenient?

□ Yes □ No
9. Do the system functions work accordingly?

□ Excellent □ Good □ Satisfactory □ Below average □ Poor

10. Is the system familiar to use?

□ Excellent □ Good □ Satisfactory □ Below average □ Poor

11. Is the system helpful in ticket purchasing?

□ Excellent □ Good □ Satisfactory □ Below average □ Poor

12. Would you suggest to include more features and other functions to the system?

□ Yes □ No
If yes, please comment

_____________________________________________________________________________________

13. Is the interface design attractive and easy to use for your operation?

□ Excellent □ Good □ Satisfactory □ Below average □ Poor

14. How do you rate your overall experience?

□ Excellent □ Good □ Satisfactory □ Below average □ Poor

15. Any suggestions to improve the system further.
Comments
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

~Thank you very much for your cooperation~

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