Transport Policy 101 (2021) 162–173

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Transport Policy
journal homepage: http://www.elsevier.com/locate/tranpol

Investigating the complexity of perceived service quality and perceived

safety and security in building loyalty among bus passengers in Vietnam – A
PLS-SEM approach
Duy Q. Nguyen-Phuoc a, *, Anh Thi Phuong Tran a, Tiep Van Nguyen b, Phuong Thi Le c,
Diep Ngoc Su d, e
a
Faculty of Bridge and Road Engineering, University of Science and Technology – The University of Danang, 54 Nguyen Luong Bang Street, Lien Chieu District, Danang
City, Viet Nam
b
Faculty of Transport Economics, Ho Chi Minh University of Transport, 2 Vo Oanh Street, Binh Thanh District, Ho Chi Minh City, Viet Nam
c
Faculty of Construction Engineering, University of Technology and Education – The University of Danang, 48 Cao Thang Street, Hai Chau District, Danang City, Viet
Nam
d
Advanced Institute of Science and Technology – The University of Danang, 41 Le Duan Street, Danang City, Vietnam
e
Faculty of Tourism, University of Economics – The University of Danang, 71 Ngu Hanh Son Street, Danang City, Viet Nam

A R T I C L E I N F O A B S T R A C T

Keywords: Previous studies have explored the effect of public transport (PT) passengers’ service quality perceptions, per­
Public transport sonal safety perceptions on loyalty intention. However, they have not yet studied the multidimensionality of
Service quality these constructs, nor applied a hierarchical-component model evaluation approach for testing their measure­
Safety
ments. In this study, an integrated model has been developed in the context of bus services within a developing
Satisfaction
Loyalty
country. Specifically, perceived safety and security is measured for the entire PT journey and operationalised as a
PLS-SEM formative second-order construct derived from three reflective dimensions: perceived safety and security during
access/egress, at bus stops and on board. Similarly, the four dimensions of tangibility, convenience, personnel
and reliability together form perceived service quality. Additionally, the moderating effect of gender in the
cultivation of passenger loyalty is also examined in this study. Data collected from 870 bus passengers in two
Vietnamese cities is used to validate the proposed model. Using partial least squares structural equation
modelling (PLS-SEM), the findings indicate that perceived service quality, perceived safety/security, image and
satisfaction have significant positive influences on passenger loyalty towards bus services. Female passengers are
also found to be significantly more loyal than their male counterparts when having a higher level of safety and
security perception. Based on the findings, authorities and policymakers can develop safer, more sustainable PT
systems and design more effective strategies to increase the loyalty of passengers.

1. Introduction same time (Nguyen-Phuoc et al., 2018a, 2020b). In many developing

Developing countries are suffering from urban traffic congestion due
to rapid and uncontrolled growth in the number of vehicles. Conse­
quently, there has been an increase in fuel consumption, emissions,
travel cost and reduced productivity (Redman et al., 2013). The
increasing relevance of congestion-related issues has been prompting
many cities to employ considerable efforts on encouraging the mode
shift to sustainable transport modes (Barabino et al., 2012). Public
transport (PT) is considered to be an appropriate solution to deal with
traffic congestion, as it can carry a large number of passengers at the
countries, buses are recognised as their only mode of PT, since this urban
transport system normally requires less investment in comparison to
other PT systems such as trains or trams. In terms of user perspective,
bus services are cost-effective, reliable, and accessible, encouraging a
mode shift from private vehicles as a consequence (Waterson et al.,
2003; Nguyen-Phuoc et al., 2018b). Bus services also increase people’s
accessibility to other PT modes (e.g. trains, airplanes), education, health
services, and employment (Public Transport Victoria, 2016).
Vietnam is a developing country demonstrating remarkable eco­
nomic growth over the last decade. As such, there has been an increasing

* Corresponding author.
E-mail address: npqduy@dut.udn.vn (D.Q. Nguyen-Phuoc).

https://doi.org/10.1016/j.tranpol.2020.12.010
Received 20 September 2020; Received in revised form 8 December 2020; Accepted 21 December 2020
Available online 24 December 2020
0967-070X/© 2020 Elsevier Ltd. All rights reserved.
D.Q. Nguyen-Phuoc et al.
demand for transport services to satisfy the rapidly evolving economy,
as well as in the population itself, particularly in the bigger and more
crowded cities such as Ho Chi Minh, Hanoi and Danang (Nguyen-Phuoc
et al., 2019). The authorities have been developed bus systems,
currently the only formal PT mode available in Vietnam, to aid in
reducing the high level of traffic congestion in these cities. However, the
number of people using these services is not as high as expected (Hoang
and Okamura, 2015). Previous studies indicated that poor quality ser­
vices and safety issues are the main causes leading to the fact that bus
services have been used predominantly by students and low-income
passengers (Astrop et al., 1996; Lan et al., 2013). In fact, the literature
shows that there is a close connection between the ridership and pas­
sengers’ loyalty which is significantly associated with a number of de­
terminants such as perceived service quality or perceived safety (Lai and
Chen, 2011; Su et al., 2019). As such, it is needed to better understand
how passengers perceive service quality, as well as the personal safety
and security of current bus systems, and exactly how these perceptions
affect passenger satisfaction and loyalty in the context of developing
countries.
According to Beirao and Cabral (2007), passengers should be
considered as the core recipients of PT policies. As such, differences
between the perception of transport managers and that of passengers
can be reduced, enhancing the success of the application of mobility
management decisions as a result. For most developing countries, there
is a limited financial resource in the investment of PT facilities
(Nguyen-Phuoc et al., 2019). Thus, investigating which elements might
lead to mode shifts from private vehicles to PT and developing soft
policies to encourage these mode shifts are recognised to be more costly
and timely effective than hard policies (Brög et al., 2009). Currently,
safety and security perception in PT services, a key factor affecting
passenger satisfaction and loyalty, have been examined in several prior
studies; however, most of them have focused on perceived on-board
safety (Minser and Webb, 2010a; Şimşekoğlu et al., 2015). The
perception of safety and security towards the entire PT journey
including access to PT, waiting environment and in-vehicle experience
have received less concern from researchers. Similarly, perceived ser­
vice quality has been found to be significantly associated with overall
passenger satisfaction and loyalty towards PT services (Ratanavaraha
et al., 2016; van Lierop and El-Geneidy, 2016; De Oña et al., 2016; Su
et al., 2019; Nguyen-Phuoc et al., 2020a; de Oña, 2020). These re­
lationships have been widely explored in the literature on transport;
however, studies exploring the effect of each service quality dimension
(tangibility, convenience, personnel, and reliability) on overall service
quality perception, have been limited (Chou et al., 2014). Furthermore,
just how a passenger views a PT system has been found to affect their
satisfaction and loyalty in the context of developed countries (van Lierop
et al., 2018; Lierop and El-Geneidy, 2018). There has been a lack of
studies investigating the impact of passengers’ image of PT on loyalty in
the context of PT systems in developing countries.
In response to the above-discussed research gaps, the main objectives
of this study are: (1) to validate the multi-dimensionality of perceived
service quality and perceived safety/security; and (2) to construct and
empirically validate a full model of bus passengers’ loyalty formation
using the PLS-SEM approach. In particular, the direct and indirect re­
lationships between each of four constructs (perceived safety and se­
curity, perceived service quality, image and satisfaction) and the loyalty
of passengers towards bus services in Vietnam are explored. In the
proposed model, perceived safety and security is measured for the en­
tirety of the PT journey. As such, this latent variable is operationalised as
a formative second-order construct formed by the three dimensions of
first-order constructs: perceived safety and security during access/
egress, at bus stops, and on-board. These perceived safety and security
dimensions are considered to contribute to the overall perceived safety
and security construct. Similarly, perceived service quality is manifested
by the four dimensions of tangibility, convenience, personnel and reli­
ability. The findings from a formative measurement approach could
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Transport Policy 101 (2021) 162–173
enable PT managers to identify specific areas that require action. As
such, authorities and policymakers can develop safer and more sus­
tainable PT systems, as well as design more effective strategies focusing
on keeping current bus customers and attracting new ones.
Moreover, the difference in mobility habits and preferences between
men and women needs improved understanding, as it helps to reveal the
distinct issues faced by each group. Hence, the moderating impact of
gender in the formation of bus passenger loyalty is also examined in this
study. The findings can help PT providers to plan strategies aimed
specifically at certain groups of passengers to enhance their satisfaction
and loyalty to PT systems.
The paper is organised as follows. The next section describes the
hypothesis development of the developed model. It is followed by the
methodology section which presents survey design, data collection and
data analysis. The results of the study are then detailed. The paper
concludes by discussing the findings, highlighting areas for further
research and displaying some conclusions.
2. Hypothesis development
2.1. Customer loyalty towards a service
There has been no universal acceptance regarding the definition of
loyalty due to the difficulty of measurement and associated methods
used for this purpose (van Lierop et al., 2018). From the literature, many
authors have attempted to define the concept of loyalty based on their
own worldviews. Oliver (1999) defined loyalty as the deep commitment
of customers to purchasing a preferred product in the future in a
consistent manner. In a recent study, Zhao et al. (2014) provided a
specific approach to assess loyalty by suggesting that loyalty should be
divided into two major parts: (1) the behaviour of a customer regarding
the continuous purchase or use of a service; (2) the customer’s attitude
and behaviour towards a service on an on-going basis. This approach
was consistent with that of previous research (Lai and Chen, 2011;
Minser and Webb, 2010b; Zhao et al., 2014), when authors also claimed
that the definition of loyalty was based on: (1) intended usage in the
future; and (2) a willingness to buy or recommend a product/service to
other people. This highlighted actual future usage and reflected the
loyalty of customers. In practice, generating and maintaining traveller
loyalty has received much concern from both practitioners and aca­
demics. This topic has been mentioned in many studies in the tourism
industry; furthermore, traveller loyalty has always been carefully
examined within specific contexts in order to seek out solutions (Chua
et al., 2017; Zhang et al., 2014). The increase in the level of customer
loyalty has been recorgnised to be a critical factor for the long-term
success of a firm (TaghiPourian and Bakhsh, 2015).
On the other hand, the topic of passenger satisfaction regarding PT
services was initially studied in the mid-1960s. However, until the
1990s, the application of marketing techniques facilitated studies about
satisfaction with respect to travel (Fornell et al., 1996). As such, the
concept of satisfaction with travel was initially established and subse­
quently was frequently updated from that point of time, as can be seen in
the transport literature. Researchers have made many attempts to seek
solutions to increasing PT ridership through enhancing patron satisfac­
tion towards PT services. At the beginning of the twenty-first century,
the concept of satisfaction was extended and examined via comparisons
with the concept of loyalty. There are many ways to define satisfaction;
one commonly used definition in the context of PT is “overall affective
response to a perceived discrepancy between prior expectation and
perceived performance after consumption” (Bilişik et al., 2013). In line
with that comparison, a number of studies were carried out to investi­
gate variables that have either a direct or indirect impact on passenger
satisfaction and loyalty (Webb, 2010; van Lierop and El-Geneidy, 2016;
Sun, 2018). In the current study, passenger satisfaction is considered to
be a determinant of loyalty intention, as the link between these two
variables has been confirmed in previous studies (Lai and Chen, 2011; Su
D.Q. Nguyen-Phuoc et al. Transport Policy 101 (2021) 162–173

et al., 2019; Carreira et al., 2014). businesses (Ladhari, 2009). This topic has been also discussed frequently
in other fields including PT services, as it has played a vital role in
developing policies to increase PT ridership (Lai and Chen, 2011; Lad­
2.2. The role of perceived safety and security, perceived service quality,
hari, 2009). There have been several empirical studies demonstrating
image and satisfaction on loyalty intention
that good service quality positively influenced PT passengers’ behaviour
and their intentions to continue using PT in the future (Lai and Chen,
2.2.1. Perceived safety and security
2011; Jen et al., 2011). According to Zeithaml (1988), perceived service
The European Commission (1998) asserted that security-related is­
quality was "the consumer’s judgment about a service’s overall excel­
sues fall into three major categories: (1) safety from crime (e.g., the
lence or superiority". Based on this definition, the perceived service
availability of polices or emergency assistance points); (2) safety from
quality of a PT service can be examined via the overall judgment of
accidents (e.g., avoidance of hazards, safeguarding, and the likelihood of
passengers about a PT service in regard to excellence or superiority. In
avoiding accidents leading to motalities); and (3) the perceptions of
addition, some authors stated that the positive linkage between service
citizens in terms of security (e.g., the meaning behind what people
quality and future customer intention could be reflected via the reuse of
perceive subjectively as safety mentioned in the two groups above). In
a service and word-of-mouth communication (Jen et al., 2011). How­
terms of transport, security and safety were considered as the proba­
ever, there have been many hidden aspects in transport services which
bility that passengers might experience an accident or become the victim
have proven difficult to define or measure; thus, scholars have changed
of a crime (security). Passenger perception of personal safety was
their approach over time to assessing the quality of PT.
considered to be a critical factor that highly influenced the use of PT
In a study carried out in Taiwan, Wen et al. (2005) explored the
(Currie et al., 2013; Su et al., 2019). A previous research from the United
service quality dimension of intercity bus travel. The results of this study
Kingdom indicated that around 10% of the population would reconsider
indicated that the four main factors comprising service quality were
the usage of public transport if their safety fears could be addressed
station performance, on-board amenities, attitude of the crew, and
(Concern, 2004).
operational performance. By focusing on local Spanish bus services,
Subjective safety and security were also integral elements of PT
Pérez et al. (2007) suggested that service quality consisted of five main
passenger satisfaction, along with other variables such as availability,
components: tangibility, reliability, receptivity, assurance, and
information, accessibility, customer support, comfort, time and envi­
empathy. In another study conducted in India, Prasad et al. (2010)
ronmental impact (Winzer and Schulze-Bramey, 2009). According to
asserted the service quality of the railway system depended on the eight
Iseki and Taylor (2009), perceived personal safety was one of three main
main factors of assurance, empathy, reliability, responsiveness, tangi­
factors that might lead to feelings of uncertainty during passenger
bility, comfort, connection, and convenience. Currently, Chou et al.
waiting times at stations, especially for delays; this, in turn, influenced
(2014) used exploratory factor analysis (EFA) to reduce the 24 Taiwan
their satisfaction and subsequent levels of ridership (Mishalani et al.,
high-speed rail service quality attributes into smaller sets of dimensions.
2006). The linkage between perceived safety and the loyalty of pas­
They found that passengers’ perceptions of service quality were
sengers have been confirmed by few studies in the context of PT. Figler
considered as a reflective construct formed by the four dimensions of
et al. (2011) showed that service reliability and safety during waiting
tangiblility, convenience, personnel and reliability of service. After
times at stations and while travelling on buses were the two main factors
reviewing the past studies, several forms of perceived service quality
that could be used as predictors for passenger loyalty towards PT ser­
were either measured and examined separately or used as being
vices. Thus, it is important to attract more people to use PT through
reflective of a particular measure; simply put, they were considered to be
channeling passengers’ intentions towards safety benefits such as the
interchangeable. However, these forms were conceptually distinct in
very low likelihood of accident involvement and low number of crimes
that the individuality of each of them could not be ignored. As such, in
(Şimşekoğlu et al., 2015).
this study, perceived service quality is considered to be formed by four
The fears of crime in public spaces by citizens have been addressed
dimensions of first-order constructs, as Chou et al. (2014) suggested;
by both researchers and policymakers in many studies. In the study of
however, this variable is operationalised as a formative second-order
Joewono and Kubota (2006), factor analysis was utilised to highlight the
construct.
major concerns of such passengers. Clearly the attitudes of PT users have
The perceived service quality of PT services has been widely
been very influential in shaping public opinion regarding transport op­
explored as a driver of satisfaction and loyalty (Hensher, 2014; Wang
erations. Recently, scholars and practitioners have concentrated on the
et al., 2017; van Lierop and El-Geneidy, 2016; Eboli and Mazzulla,
perception of subjective security towards a PT service in an attempt to
2007). The linkage between perceived service quality and perceived
improve the positivity of its image and to increase its share of total
safety have been confirmed in the context of ride-hailing services (Su
transportation options. Based on the literature review, there has been a
et al., 2019). In addition, service quality was found to be chiefly
lack of research examining the perception of safety and security across
responsible for the construction of the corporate image of PT services
the entire PT journey, as well as its effects on passengers’ travel
(Kuo and Tang, 2013). In this research, there are four hypotheses
behaviour. As such, in the current study, this construct is operationalised
regarding the perceived service quality of bus services, as follows:
as a formative second-order construct formed by three components of
first-order constructs: perceived safety and security during access/e­ H2a. Perceived service quality positively affect perceived safety and
gress, at bus stops and on board. The hypotheses of the relationships security
among perceived safety/security and each of image, passenger satis­
H2b. Perceived service quality positively affect the image of bus
faction, and loyalty for bus services are proposed as follows:
services
H1a. Perceived safety and security positively affect the image of bus
H2c. Perceived service quality positively affect passenger satisfaction
services
towards bus services
H1b. Perceived safety and security positively affect passenger satis­
H2d. Perceived service quality positively affect passenger loyalty to­
faction towards bus services
wards bus services
H1c. Perceived safety and security positively affect passenger loyalty
towards bus services 2.2.3. Image
Generally, corporate image has referred to customer perception
2.2.2. Perceived service quality about a product/a service and the associated silent attributes that were
Service quality has been one of the key topics in the study of service generated via processing information from different sources (Bloemer

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D.Q. Nguyen-Phuoc et al. Transport Policy 101 (2021) 162–173

and De Ruyter, 1998). There has been growing empirical evidence from 2.3. Moderating effect of gender
studies claiming that the overall image of a product/a service and the
past behaviour of customers significantly impacted their future in­ Gender has been identified as moderating the impact of antecedents
tentions or behaviour (Han and Ryu, 2007). The marketing literature on the loyalty of customers in the context of marketing (Sanchez-Franco
showed that image had a positively direct influence on satisfaction and et al., 2009; Kim, 2016; Ndubisi, 2006). However, the moderating effect
played an major role in the development of behavioural loyalty (Mar­ of this demographic variable on the formation of passenger loyalty in the
tenson, 2007; Han et al., 2009). Customers who had a good image about context of PT services has not received much attention from researchers.
a product/service were likely to be satisfied with and loyal to that Thus, the following hypotheses are established:
particular product/service. In the domain of transportation, Sumaedi
H5. (a,b,c,d) Gender moderates the effect of the following antecedents
et al. (2014) found that passengers’ loyalty was directly influenced by
on bus passenger loyalty: perceived service quality, perceived safety and
the image of the PT service in question. Most researchers agreed that the
security, image, and satisfaction.
overall image of a product or a service was formed via undertaking both
This proposed model was shown in Fig. 1 where continuous arrows
a cognitive and perceptual process of customers (Han et al., 2009;
indicated direct effect and dotted arrows indicated moderating effect.
Bloemer and De Ruyter, 1998). This process was complicated, requiring
a specific measurement to examine both direct and indirect relation­
3. Methodology
ships. Thus, our research focuses on investigating the effect of the image
of bus services on passenger loyalty in the context of developing coun­
3.1. Survey
tries, as shown in the following hypotheses:
H3a. The image of bus services positively affect passenger satisfaction Self-administered questionnaire-based surveys were carried out to
towards bus services collect data for this study. The survey questionnaire included three main
sections, as follows. The first section collected information related to bus
H3b. The image of bus services positively affect passenger loyalty to­
trips such as trip frequency, the purpose of the trips or average travel
wards bus services
time. In the second section, the main part of the questionnaire, a number
of 7 point-Likert scale questions ranging from ‘strongly disagree’ (1) to
2.2.4. Satisfaction
‘strongly agree’ (7) were designed to determine the bus passengers’
Passenger satisfaction has been one of the most important factors
behaviour. In particular, 22 items measuring perceived safety and se­
used to form transport planning strategies for urban centers. The linkage
curity were chiefly adapted from Su et al. (2019) and Currie et al.
between passenger satisfaction and loyalty in the context of PT have
(2013). Perceived service quality was measured with 18 items adapted
been examined in a large number of previous studies (Ratanavaraha
from Chou et al. (2014). Image of bus services was measured by five
et al., 2016; van Lierop and El-Geneidy, 2016; Zanariah Bahtar et al.,
scales adapted from Jani and Han (2014). Three items used to measure
2014). In particular, satisfaction was found to have a positive and direct
bus passengers’ satisfaction were adapted from Yuksel et al. (2010)
impact, playing a critical role in explaining passenger loyalty intention
while loyalty (seven items) was operationalised through the scale pro­
towards a transport service. Once a passenger was satisfied with a
posed by Hwang et al. (2019) and Nguyen-Phuoc et al. (2020a). The last
transport service, they were likely to continue using that service and
part of the questionnaire focused on the socio-demographics of bus
recommend it to other people. In the current study, the linkage between
passengers such as age, gender, employment status or income.
the satisfaction and loyalty of bus passengers will be tested in the context
After designing the first draft of the questionnaire, it was sent to a
of a developing country; as such, the following hypothesis is proposed:
panel including five transport experts working in a number of univer­
H4. Passenger satisfaction positively affect passenger loyalty towards sities and departments of transport in Vietnam for checking content
bus services validity and getting feedback. The questionnaire was then editted based

Fig. 1. Proposed conceptual model.

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D.Q. Nguyen-Phuoc et al. Transport Policy 101 (2021) 162–173

on comments from the expert panel and a pre-test was subsequently 4. Results
performed on 50 University of Danang students. Finally, the question­
naire items were further refined by clarifying or eliminating problematic 4.1. Descriptive statistics
items reported by students before the full-scale survey was conducted to
bus passengers in the two cities. Table 2 provides details of the surveys with typical characteristics.
The total number of bus passengers who participated in this survey was
870, including: students (42.3%); full-time employees (35.1%); part-
3.2. Data collection
time employees (7.8%); unemployed people (0.5%); retired people
(5.2%); people working at home (6%); and others (3.1%). Table 2
The data analysed in this study were obtained from a field survey
demonstrates that the 18–25 year old age group accounted for the
spanning a three-month period from September to November 2019. Two
highest proportion of the survey (49%), while the 26–35 year old age
cities in Vietnam - Ho Chi Minh (a large city) and Danang (a medium-
group accounted for approximately 19.8%, followed by the 36–45 years
sized city) - were chosen as suitable for carrying out the survey. Two
age group with approximately 11.6%. For the older age groups, 46–55
groups of six undergraduate students from the Ho Chi Minh University of
years and the oldest age group (>55 years) accounted for the smallest
Transport and the University of Danang were recruited to assist the re­
proportions, with 9% and 10.6%, respectively. Most bus passengers
searchers with data collection. These students had participated in a short
were young people; thus, it was not surprising when the number of
training section delivered by a research team from this project from 15
single respondents was relatively high (more than 60%), while the
to 16 August to ensure that they understood the main purpose of the
number of people with ‘married’ status accounted for around 38.4%. In
survey and the survey method to be applied. The survey team members
terms of occupation, most survey attendents were high school students
were instructed to randomly approach bus passengers at bus stations and
and undergraduate students, accounting for the highest proportion with
on buses, then provide a clear explanation of the current research. They
32.5% and 42.2%, respectively. Regarding income, most people trav­
would start to conduct the survey when respondents agreed their
elling by bus had a low income, with those having an average salary per
participation. The selection of survey locations was associated with the
month lower than 5 million VND accounting for about 53%, followed by
distribution of the bus stop network in both Ho Chi Minh and Danang. In
the middle-income group of 5–10 million VND per month at approxi­
this study, 30 bus stations located in District 1, District 2, District 3, Binh
mately 28%. The high-income groups including people in the monthly
Thanh District and Go Vap District were randomly selected for con­
income range from 10 to 15 million VND and those with greater than 10
ducting this questionnaire survey, while this figure totaled around 20 in
million VND per month accounting for 13.8% and 4.3%, respectively.
Danang. The surveys were also carried out at different points of time,
The most important characteristic of this survey concerned the purpose
including in the day and at night, as well as during both weekdays and
of travellers. There was no surprise that most people travel by bus to
weekends, to minimise time-selection bias. In order to encourage the
work and to school (including university), with a significant proportion
respondents (bus passengers) to complete the questionnaire survey, a
of 35.2% and 34.6%, followed by the group of people who travelled by
prepaid scratch mobile phone recharge card with a value of 20,000
bus to visit their friends (11.5%).
Vietnamese Dong (VND, approximately US$1) was awarded as an
acknowledgement for their participation in this project.
4.2. First-order measurement model evaluation
More than 900 paper-based questionnaires were distributed to bus
passengers in Ho Chi Minh and Danang city to collect their opinions.
In this study, confirmatory factor analysis (CFA) was conducted as an
After excluding invalid responses, a total of 870 valid survey responses
integral part in evaluating the measurement model in the SEM which
were used for further analysis. Table 1 presents a general summary of
aimed at confirming and refining the items (components) and constructs
the number of respondents performing the questionnaire survey in the
(latent variables) in the model. There were three criteria that should be
two cities.
examined in this step, internal consistency reliability, convergent val­
idity, and discriminant validity Hair et al. (2016).
3.3. Data analysis

A structural equation model (SEM) has been employed to explore the

relationship between constructs and passenger loyalty. Due to the Table 2
complexity of the developed model (including both first-order and Survey respondent characteristics.
second-level constructs), the least squares-based method (PLS-SEM) has n % n %
been chosen to analyse the data in lieu of other structural equation
Gender Occupation
modelling procedures such as covariance-based structural equation Female 507 58.3 Student 368 42.3
modelling (CB-SEM). PLS-SEM consists of two main components. The Male 363 41.7 Full-time employee 306 35.1
first component is the measurement model which is referred to as the Age Part-time employee 68 7.8
18–25 427 49.0 Retired 45 5.2
outer model. The outer model estimates the contribution of each indi­
26–35 172 19.8 Unemployed 4 0.5
cator in representing its associated latent variable and assesses how well 36–45 101 11.6 Working at home 52 6.0
the combined set of indicators represents a variable. The inner model 46–55 78 9.0 Other 27 3.1
measures the direct and indirect relationships between the latent vari­ >55 92 10.6 Monthly income (VND)
ables (Hair et al., 2016). Marriage status <5 million 463 53.2
Single 536 61.6 5 - <10 million 250 28.7
Married 334 38.4 10 - <15 million 120 13.8
Table 1 Level of education ≥ 15 million 37 4.3
Number of respondents in two cities. Secondary school 58 6.7 Main purpose of most bus trips
High school 283 32.5 Going to work 306 35.2
Ho Chi Minh Danang Total
Undergraduate 367 42.2 Going to school/ 301 34.6
Distributed 481 429 910 university
Missing data in some important variables 21 2 23 Above 106 12.2 Going shopping 59 6.8
Same values in most of variables 6 2 8 undergraduate
Outlier values 3 6 9 Other 56 6.4 Visiting friends 100 11.5
Number of valid responses 451 419 870 Others 104 12.0
Valid response rate (%) 93.8 97.7 95.6
Note: 1 USD = 23,000 VND.

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D.Q. Nguyen-Phuoc et al. Transport Policy 101 (2021) 162–173

4.2.1. Internal consistency reliability 4.2.2. Convergent validity

Internal consistency among the components in each construct was Convergent validity of the measurement model was examined based
checked using the Cronbach’s Alpha value. Table 3 presented that the on factor loadings and average variance extracted (AVE). Initially, a
CA values of all constructs ranged from 0.779 to 0.922, all coming in total of 55 measurement scales were used for the CFA; however, five
higher than the threshold value of 0.7 as suggested by Nunnally (1978). items (PSSW6, PSSS5, PSSB6, PSSB8 and PSQC2) having a factor loading
Also, the composite reliability (CR) values of all constructs were higher of less than 0.5 have been excluded from further analysis (Appendix A1).
than the recommended value of 0.7 (Nunnally and Bernstein, 1994), As can be seen in Table 3, most of the factor loading values of all
ranging from 0.850 to 0.941. These examinations assured reliability in components were higher than 0.7, representing ‘satisfactory to good’
the internal consistency among these constructs. reliability levels. All values ranging from 0.6 to 0.7 were considered to
be ‘acceptable in exploratory research’ (Hair et al., 2016). On the other
hand, the AVE values of the constructs which were used to measure the
Table 3 common variance in a specific construct were higher than the recom­
First-order model evaluation. mended value of 0.5, ranging from 0.509 to 0.832 (Fornell and Larcker,
Constructs Items Loadings CA CR AVE 1981). These above examinations indicated validity in the convergence
of the measurement model.
Perceived Safety & Security 1 0.810 0.864 0.518
(PSS): During access/egress PSSW1 0.754
PSSW2 0.801 4.2.3. Discriminant validity
PSSW3 0.777 Discriminant validity was checked using the Fornell-Larcker crite­
PSSW4 0.761 rion to determine to what extent a construct within its components
PSSW5 0.623
PSSW7 0.575
differs other constructs (Bagozzi and Yi, 1988). Accordingly, the square
Perceived Safety & Security 2 0.804 0.859 0.509 root of the AVE value of each construct was measured and compared to
(PSS): At bus stops PSSS1 0.792 cross-loading values with various constructs. Table 4 shows how the
PSSS2 0.802 square root of AVE for each construct was the highest value compared to
PSSS3 0.765
other correlation values showing a relationship with other factors.
PSSS4 0.764
PSSS6 0.501 Therefore, the evaluation of discriminant validity among the constructs
PSSS7 0.604 satisfied requirements.
Perceived Safety & Security 3 0.813 0.865 0.521 In summary, evaluations of the first-order measurement model
(PSS): On board PSSB1 0.766 regarding internal consistency reliability, convergent validity and
PSSB2 0.822
discriminant validity all met their requirements, empirically validating
PSSB3 0.759
PSSB4 0.762 the suitability of the measurement model in this study.
PSSB5 0.629
PSSB7 0.557 4.3. Second-order measurement model evaluation
Perceived Service Quality 1 0.851 0.900 0.693
(PSQ): Tangibility PSQT1 0.850
PSQT2 0.886 After checking the appropriateness of the first-order measurement
PSQT3 0.784 model, the next step was to evaluate the second-order measurement
PSQT4 0.806 model. As shown in the conceptual model proposal, there were three
Perceived Service Quality 2 0.779 0.850 0.531 formative components of perceived safety and security (PSS) constructs,
(PSQ): Convenience PSQC1 0.709
PSQC3 0.766
‘during access/egress’, ‘at bus stops’, and ‘on-board’, whereas the
PSQC4 0.715 number of components for perceived service quality (PSQ) was four:
PSQC5 0.766 ‘tangibility’, ‘convenience’, ‘personal’ and ‘reliability’.
PSQC6 0.684 In terms of collinearity, Table 5 showed that the variance inflation
Perceived Service Quality 3 0.880 0.918 0.738
factors (VIF) values for all PSS and PSQ dimensions ranged from 1.491 to
(PSQ): Personnel PSQP1 0.888
PSQP2 0.904 2.411 which did not exceed the threshold value (5.0), thus indicating
PSQP3 0.871 satisfactory reliability (Hair et al., 2010). As such, the results did not
PSQP4 0.767 demonstrate a multicollinearity problem and support the formative
Perceived Service Quality 4 0.816 0.879 0.645 nature of PSS and PSQ. Table 5 also showed that the weight of each
(PSQ): Reliability PSQR1 0.783
dimension was higher than the threshold value of 0.10 (Lohmöller,
PSQR2 0.822
PSQR3 0.832 2013). Additionally, the significant t-values of all these weights of
PSQR4 0.772 formative indicators provided empirical support to retain all the in­
Image (IMA) 0.922 0.941 0.762 dicators (Hair et al., 2011). As such, the findings revealed that all three
IMA1 0.823
dimensions of perceived safety and security - during access/egress, at
IMA2 0.872
IMA3 0.892 bus stops and on board - were significantly positively related to
IMA4 0.888 perceived safety and security constructs. Of these outcomes, perceived
IMA5 0.889 safety and security at bus stops was found to have the strongest
Satisfaction (SAT) 0.899 0.937 0.832 contribution. The second most important predictor of perceived safety
SAT1 0.906
and security was perceived safety and security during access/egress.
SAT2 0.933
SAT3 0.896 Regarding perceived service quality, tangibility and reliability were
Loyalty (LOY) 0.914 0.932 0.662 found to have the strongest influence on the overall perceived service
LOY1 0.807 quality, with outer weights of 0.444 and 0.382, respectively. The
LOY2 0.818
dimension of convenience had the lowest impact on the main construct
LOY3 0.775
LOY4 0.853 (0.151).
LOY5 0.866
LOY6 0.751 4.4. Structural model and hypothesis testing
LOY7 0.817

Note: CA= Cronbach’s Alpha; CR=Composite Reliability; AVE = Average 4.4.1. Model fit tests
Variance Extracted. This study adopted several criteria to assess the PLS-SEM model fit,

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Table 4
Fornell-Larcker criterion of the first-order factor model.
Construct AVE PSSW PSSS PSSB PSQT PSQC PSQP PSQR IMA SAT LOY

PSSW 0.518 0.720

PSSS 0.509 0.701 0.714
PSSB 0.521 0.619 0.675 0.722
PSQT 0.693 0.486 0.518 0.565 0.832
PSQC 0.531 0.288 0.321 0.360 0.419 0.729
PSQP 0.738 0.341 0.398 0.482 0.542 0.550 0.859
PSQR 0.645 0.371 0.436 0.488 0.477 0.634 0.636 0.803
IMA 0.762 0.386 0.376 0.542 0.521 0.497 0.557 0.573 0.873
SAT 0.832 0.398 0.397 0.483 0.525 0.508 0.561 0.583 0.599 0.912
LOY 0.662 0.442 0.443 0.533 0.544 0.513 0.552 0.582 0.663 0.764 0.813

empirically supported, with all t-values being more than 2.57 at the
Table 5
significant level of 1%, with the exception of the hypothesis H1b. It can
Second-order model evaluation.
be concluded that the loyalty of current bus passengers was positively
Second-order/ Variance Outer Standard t-value p- influenced by factors such as perceived safety and security (ßPSS→LOY =
First-order Inflation Weights Deviation values
0.101, t = 2.950, p = 0.003), perceived service quality (ßPSQ→LOY =
constructs Factors (VIF)
0.139, t = 3.317, p < 0.001), image (ßIMA→LOY = 0.225, t = 5.791, p <
Perceived Safety & Security (PSS)
0.001), and satisfaction (ßSAT→LOY = 0.486, t = 12.800, p < 0.001), for
During access/ 2.128 0.201 0.066 3.050 0.002
egress
which the effect of satisfaction on loyalty was greater than others. On
At bus stops 2.411 0.147 0.069 2.145 0.032 the other hand, results showed that both perceived service quality and
On board 1.990 0.749 0.054 13.975 <0.001 image were good predictors of satisfaction, with the coefficient values of
Perceived Service Quality (PSQ) 0.455 (p < 0.001) and 0.259 (p < 0.001), respectively. In contrast,
Tangibility 1.491 0.444 0.039 11.435
perceived safety and security did not have an effect on the satisfaction of
<0.001
Convenience 1.797 0.151 0.045 3.348 <0.001
Personnel 1.997 0.248 0.048 5.133 <0.001 bus users (ßIMA→SAT = 0.072, t = 1.901, p = 0.057 > 0.05) as proposed in
Reliability 2.130 0.382 0.048 7.920 <0.001 H1b. Last but not least, the findings indicated that perceived service
quality also had considerable positive effects on the perception of bus
passengers in terms of safety and security (ßPSQ→PSS = 0.645, t = 25.397,
including the standardised root mean square residual (SRMR), the p < 0.001) and image (ßPSQ→IMA = 0.538, t = 13.910, p < 0.001).
squared Euclidean distance (d-ULS) and the geodesic distance (d-G), and
the Normed Fit Index (NFI). The results confirmed that the suggested
4.4.2.2. Indirect relationships. As suggested by (Hair et al., 2014), the
structural model was good fit to the data with acceptable indices such as
mediating relationship among constructs was supported when the
SRMR = 0.051, d-ULS = 1.650, d-G = 0.3726, NFI = 0.864) (Henseler
t-value was exceeded the benchmark of 1.65 at a significance level of
et al., 2016). As can be seen, the SRMR value was lower than the
0.1, as well as the zero value being excluded from the confidence in­
threshold of 0.08 (Sinkovics et al., 2016) and the NFI value was above
terval. Table 7 showed all significant mediation relationships between
the suggested value of 0.8 (Hu and Bentler, 1998) which indicated that
the four constructs and loyalty. For example, image played a mediating
the satisfactory of the structural model fit to the requirement.
role in the causal link between perceived safety/security and loyalty
with a t-value of 3.892 at p < 0.001 and between perceived service
4.4.2. Path relationship evaluations
quality and loyalty with a t-value of 4.992 with p < 0.001.
The direct and indirect relationships among constructs were evalu­
ated using regression coefficients (ß). In addition, the bootstrap pro­
4.4.2.3. Total effects on LOY. Table 8 presented the total effects of
cedure was conducted to assess the significance of the ß values in
different determinants on the loyalty of bus users. While satisfaction
indirect relationships among the constructs based on the t-value. Ac­
alone had a direct effect on loyalty, other factors such as perceived safety
cording to Hair et al. (2014), the path relationship was deemed to be
and security, perceived service quality and image had both direct and
significant at 10%, 5% and 1% significance levels when the t-value was
indirect effects on loyalty. As shown in Table 8, PSQ had the greatest
higher than 1.65, 1.96 and 2.57, respectively.
total effect on LOY (β = 0.697, p < 0.001), followed by SAT (β = 0.486,
p < 0.001), IMA (β = 0.351, p < 0.001) and PSS (β = 0.205, p < 0.001),
4.4.2.1. Direct relationships. Table 6 showed that most of the proposed
hypotheses presenting direct relationships among constructs were
Table 7
Results of indirect effects between each constructs and LOY.
Table 6
Specific Indirect Effects Path SD t- p-
Results of direct effects among constructs.
Coefficient value values
Path relation Path SD t-value p- Result
PSS → IMA → LOY 0.044*** 0.011 3.892 <0.001
(Hypothesis) Coefficient values
PSS → IMA → SAT → LOY 0.025*** 0.006 3.828 <0.001
H1a: PSS → IMA 0.197*** 0.039 5.115 <0.001 Supported PSS → SAT → LOY 0.035* 0.019 1.878 0.061
H1b: PSS → SAT 0.072 ns 0.038 1.901 0.057 Rejected PSQ → PSS → IMA → LOY 0.028*** 0.007 3.778 <0.001
H1c: PSS → LOY 0.101** 0.034 2.950 0.003 Supported PSQ → IMA → LOY 0.121*** 0.024 4.992 <0.001
H2a: PSQ → PSS 0.635*** 0.025 25.397 <0.001 Supported PSQ → PSS → LOY 0.064*** 0.022 2.905 0.004
H2b: PSQ → IMA 0.538*** 0.039 13.910 <0.001 Supported PSQ → PSS → IMA → SAT → 0.016*** 0.004 3.756 <0.001
H2c: PSQ → SAT 0.455*** 0.047 9.763 <0.001 Supported LOY
H2d: PSQ → LOY 0.139*** 0.042 3.317 <0.001 Supported PSQ → IMA → SAT → LOY 0.068*** 0.015 4.526 <0.001
H3a: IMA → SAT 0.259*** 0.048 5.434 <0.001 Supported PSQ → PSS → SAT → LOY 0.022* 0.012 1.869 0.062
H3b: IMA → LOY 0.225*** 0.039 5.791 <0.001 Supported PSQ → SAT → LOY 0.221*** 0.030 7.390 <0.001
H4: SAT → LOY 0.486*** 0.038 12.800 <0.001 Supported IMA → SAT → LOY 0.126*** 0.025 5.107 <0.001
ns ns
Notes: non-significant, ***p < 0.01, **p < 0.05, *p < 0.1. Notes: non-significant, ***p < 0.01, **p < 0.05, *p < 0.1.

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Table 8 Table 10a

Results of total effects on LOY. Results of invariance measurement testing using permutations (Step 1 and Step
Total Effects Path Coefficient SD t-value p-values
2).
Constructs Step 1 Step 2 Partial
PSS → LOY 0.205*** 0.038 5.324 <0.001
Measurement
PSQ → LOY 0.679*** 0.023 29.442 <0.001 Configural Compositional Invariance
Invariance
IMA → LOY 0.351*** 0.046 7.645 <0.001 Invariance
Established
SAT → LOY 0.486*** 0.038 12.800 <0.001 (Same
ns algorithm for Original Confidence
Notes: non-significant, ***p < 0.001, **p < 0.01, *p < 0.05.
both groups) Correlation Interval

PSS Yes 0.996 [0.960; Yes

respectively. This indicated that service quality was the most important 0.992]
determinant in building the loyalty of bus users. PSQ Yes 0.986 [0.973; Yes
0.993]
4.4.3. Predictive capability evaluation IMA Yes 1.000 [0.999; Yes
1.000]
One of the important parts in evaluating an SEM is testing the pre­
SAT Yes 1.000 [0.999; Yes
dictive accuracy and predictive relevance of the model. Predictive ac­ 1.000]
curacy is tested using the coefficient of determination (R2 value) which LOY 3Yes 1.000 [0.999; Yes
presents the degree of variance explained in each endogenous construct 1.000]
(Hair et al., 2019). As explained by Hair et al. (2019), a value of R2
ranging between 0 and 1with a higher value of R2 indicated a higher
indicated significant differences. The results of both methods indicated
level of predictive accuracy. As observed in Table 9, the R2 values of the
that there were three significant differences in the direct effects. The
loyalty construct was 0.67, indicating a substantial level of predictive
impacts of PSS and SAT on LOY among male passengers was smaller
accuracy, while other latent variables (perceived safety & security,
than that among females, while the impact of PSQ on LOY among males
perceived service quality and satisfaction) had R2 values ranging from
was higher than that among females. In terms of total effect, the sig­
0.404 to 0.497 (>0.33), indicating a moderate level of predictive ac­
nificant differences across groups were found for the linkages PSS →
curacy (Henseler et al., 2009). On the other hand, the evaluation of
LOY and SAT → LOY.
predictive relevance was based on the blindfolding procedure to calcu­
late the Q2 value using Smart PLS 3.0. Based on the suggestion of Hair
et al. (2014) the value of Q2 > 0 confirmed the predictive relevance 5. Discussion
among endogenous variables in the model. The statistical results showed
that all the Q2 values produced for each construct are positive, which 5.1. Theoretical implications
implied the sufficient predictive relevance of the proposed model in this
study. This study has contributed to the literature by developing a con­
ceptual model and multi-dimensional measures for predicting bus pas­
senger loyalty in the context of a developing country. In this model,
4.5. Moderating effect of gender - Multigroup analysis (MGA)
perceived safety and security and perceived service quality, which were
organised as formative second-order constructs, were considered to be
MGA was used to understand the significant difference between two
antecedents to image, passenger satisfaction and loyalty towards bus
groups, male passengers and female passengers, towards loyalty. Before
services. In terms of determinants directly affecting passenger loyalty
performing MGA, testing the measurement invariance of composite
towards bus services, satisfaction was found to be the most important
models (MICOM) using the three-step procedure is a necessary
variable. This finding strongly supports the core traditional satisfaction-
requirement (Sinkovics et al., 2016). According to Henseler et al. (2015,
loyalty relationship that has been widely investigated in previous
p. 117), testing for measurement invariance determines “whether or not,
research measuring passenger loyalty towards PT modes (e.g., train,
under different conditions of observing and studying phenomena,
bus) (Shiftan et al., 2015; Wen et al., 2005; Su et al., 2019). The image of
measurement models yield measures of the same attribute”. Tables 10a
bus services was the second important predictor of passenger loyalty.
& 10b presents the results of the MICOM three-step procedure: 1) con­
The concept of image was based on how a passenger viewed a PT service
figural invariance assessment; 2) the establishment of compositional
as contributing to both their own welfare and society at large. This
invariance assessment; 3) assessment of equal means and variances. The
finding was in line with those from previous research which indicated
findings showed that the measurement invariance of both groups had
that passengers with a positive image of PT would feel more satisfied
been partially established. This was the minimum requirement for
with that PT service (Minser and Webb, 2010a) and intend to use the
assessing the significant difference between the two groups using MGA
mode in the future (Şimşekoğlu et al., 2015; Lai and Chen, 2011). In
(Hair et al., 2016).
addition, perceived service quality was recognised to be the third sub­
The results of MGA was presented in Table 11. Both methods,
stantial determinant while perceived safety and security had the lowest
including Henseler’s MGA (the non-parametric method) and the Per­
influence on bus service user behaviour. The findings were in line with
mutation Test, were used. In Henseler’s MGA method, a p-value higher
those from prior studies which found that service quality and safety were
than 0.95 or lower than 0.05 demonstrated significant differences be­
the two major concerns, particularly in the context of developing
tween specific path coefficients across two groups at a significance level
countries (Joewono and Kubota, 2006; Morton et al., 2016).
of 5%. Nonetheless, in the Permutation Test, a p-value lower than 0.05
Currently, the influence of safety perception and service quality
perception on passenger loyalty in the context of PT services in devel­
Table 9 oped countries has been explored in a number of studies. However, these
Evaluation of predictive accuracy and predictive relevance. constructs were considered to be first-order variables which were
Constructs R2 SSO SSE Q2 (=1-SSE/SSO) designed from a composite of indicators (van Lierop and El-Geneidy,
PSS 0.404 2610.00 1878.75 0.280 2016; Nguyen-Phuoc et al., 2020a; Chonsalasin et al., 2020). In this
IMA 0.463 4350.00 2919.19 0.329 paper, these two constructs were funnelled into formative second-order
SAT 0.497 2610.00 1600.17 0.387 latent constructs. This type of model contributes to making the path
LOY 0.670 6090.00 3579.27 0.412
model more parsimonious and has also allowed researchers to enhance
SSO: sum of the square observations and SSE: sum of squared prediction errors. the content comprised by specific constructs (Cong, 2016). This is being

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Table 10b
Results of invariance measurement testing using permutations (Step 3).
Constructs Step 3_Part 1 Step 3_Part 2 Full Measurement Invariance
Established
Equal Mean Assessment Equal Variance Assessment

Mean Original Confidence Equal Variance Original Confidence Equal

Difference Interval Difference Interval

PSS 0.131 [-0.166; 0.158] Yes − 0.084 [-0.251; 0.244] Yes Yes
PSQ − 0.087 [-0.168; 0.158] Yes 0.003 [-0.294; 0.304] Yes Yes
IMA − 0.044 [-0.163; 0.143] Yes − 0.051 [-0.288; 0.292] Yes Yes
SAT − 0.044 [-0.156; 0.145] Yes − 0.119 [-0.285; 0.305] Yes Yes
LOY − 0.078 [-0.164; 0.151] Yes − 0.099 [-0.289; 0.307] Yes Yes

this study, perceived service quality was formed by the four dimensions
Table 11
of tangibility, convenience, personnel, and reliability. The results from
Multigroup analysis results: Male (M) vs Female (F).
the formative second-order approach indicated that reliability was the
Relationship Effect Path p-value Supported most important service quality dimension. It was followed by personnel,
Coefficient Difference
convenience and tangibility of service quality components. These find­
Difference(M- (One-tailed)
F) ings did not coincide with those obtained in previous research. For
instance, in Mauritius the quality of vehicles was found to be the most
Henseler’s Permutation
MGA Test
significant expectation of bus passengers (Champahom et al., 2019)
while the convenience of bus services was the most important attribute
PSS → LOY Direct − 0.140 0.982** 0.033** Yes/
affecting the bus passengers’ perception of service quality in Phnom
Yes
PSQ → LOY Direct 0.224 0.004** 0.004** Yes/ Penh, Cambodia (Sonita et al., 2020). Another study investigating key
Yes components of bus services was carried out in Taiwan and personnel
IMA → LOY Direct 0.071 0.183 0.182 No/ service was found to be the most critical service quality component
No
(Chou et al., 2014). These differences might be due to the differences in
SAT → LOY Direct − 0.185 0.993** 0.008** Yes/
Yes
the characteristics of distinct PT systems between Vietnam and other
PSS → LOY Total − 0.205 0.997** 0.008** Yes/ Asia countries.
Yes This study also found that gender played an important role in the
PSQ → LOY Total 0.044 0.158 0.172 No/ formation of passenger loyalty. The feelings of males and females about
No
PT services and the influences on their loyalty differed significantly. In
IMA → LOY Total 0.056 0.732 0.265 No/
No particular, the impact of perceived safety and security on loyalty among
SAT → LOY Total − 0.185 0.993** 0.008** Yes/ female passengers was significantly higher than that among males.
Yes Other studies on crime and fear of crime have emphasised that safety
Note: **p < 0.05 or p > 0.95. perception also differed significantly between genders in many cases
(Loukaitou-Sideris and Fink, 2009; Smith, 2008). Feelings of insecurity
increasingly used in PLS-SEM, particularly in the fields of marketing and and vulnerability to crime would limit the mobility habits of women
tourism. In the context of transport, very few studies have employed a through PT. In other words, it could be expressed as a barrier to taking
formative higher-order variable approach in SEM. The findings of this part in public life - not only socially, but also economically (Deniz,
study showed that perceived service safety and security positively and 2016). On the other hand, male passengers were found to be more
directly impacted not only passenger loyalty, but also the image of bus concerned with service quality; the influence of this variable on loyalty
services. However, the direct relationship between perceived service towards the bus services was significantly higher than that among fe­
safety and security and satisfaction was not confirmed in this study. The males. This was consistent with the findings from previous research in
findings also revealed that all three dimensions of perceived safety and marketing areas which found that males’ perception of the value of a
security - during access/egress, at bus stops and on board - were process was mainly based on its impacts on their performance (Whitley,
significantly positively related to the overall perceived safety and se­ 1997). It was also evident that there was a non-significant effect of
curity construct with different weights. These relationships have not gender in the linkage between image and loyalty. In summary, these
been explored in the previous studies in a PT context. On the other hand, results extend our knowledge about the formation of bus passengers’
previous research indicated that critical incidents produced substantial loyalty among different groups in the context of a developing country.
negative effects on perceived safety and security and perceived service
quality, which in turn influencing passengers’ satisfaction and loyalty 5.2. Managerial implications
(Allen et al., 2019, 2020bib_Allen_et_al_2020bib_Allen_et_al_2019). For
instance, a passenger who experienced a traffic accident or a property In terms of practical implications, the study proposed serveral crit­
crime when travelling on a bus was more likely to have a low level of ical implications for PT service providers to increase passenger loyalty,
perceived safety and security towards the service. Further research which will in turn lead to an increase in PT ridership. This study’s
should include critical incident contruct in the conceptual model to gain findings suggest that when developing high quality services, PT man­
a better understanding of what is causing dissatisfaction with specific agers and policy-makers need to be especially focused on how passen­
characteristics of a PT system, and hence provide better policy-related gers perceive their service quality attributes. This better understanding
findings for PT providers. is essential to helping PT providers prioritise one strategy or a set of
The findings also confirmed that high perceived service quality led to strategies over others. For instance, the findings suggest that the reli­
superior image, passenger satisfaction and loyalty. Among the four de­ ability and personnel of PT services needs focus, as they are the most
terminants influencing the loyalty of passengers, perceived service important subconstructs forming the perceived service quality of pas­
quality was indicated to have the highest total impact. This was due to sengers. As such, the operation of PT should strictly follow schedules and
perceived safety and security, image, and satisfaction being found to minimise schedule-related delays. With the development of technology,
fully mediate the causal link from perceived service quality to loyalty. In the implementation of a real-time passenger information system could

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be another solution to reducing the waiting time of passengers, which
will in turn lead to an increase in the reliability of PT service quality. In
addition, PT agents should improve the quality of drivers and employees
(e.g, safe driving skills or attitudes towards passengers) through training
sessions before they start delivering their services.
Perceived safety and security were found to directly impact the
loyalty intention of bus passengers, in that perceived safety and security
at bus stops and during access/egress contributed higher impact to the
overall perception than did perceived safety and security on board.
Based on the ranking of prioritisation, some improvement measures can
be proposed, such as installing CCTV cameras at bus stops and areas
around bus stops, improving lighting, implementing traffic signage in
hazardous places that prohibit bus stops from access/egress, installing
traffic warnings in strategic places to campaign for road safety behav­
iour. In terms of improving the perception of safety and security on
board, several measures can be considered, such as installing commu­
nication devices to contact the police when a crime occurs, standardising
the quality of vehicles to be used as buses, or training bus drivers before
applying their services.
This study confirmed that positive attitudes of passengers towards PT
services were a significant predictor of their overall loyalty (Şimşekoğlu
et al., 2015; Zhao et al., 2014). As such, PT agencies were suggested to
focus on developing strategies aiming to motivate passengers to strongly
identify with PT services. Several strategies for motivating passengers to
develop a positive image of a PT service could be employed, such as
communicating an appropriate image through logos and graphic design,
mission statements (e.g., societal and environmental contributions),
slogans and media relations.
effect of other individuals’ socioeconomic characteristics such as age,
income or level of education have not yet been explored. A comparison
across these groups of passengers needs examination, as its findings can
help authorities to plan strategies aimed especially at a certain group to
enhance their loyalty towards PT services. Second, the findings need to
be confirmed by further evidence from other countries, particularly in
developed countries, given the difference in facilities and cultures
among different countries.
7. Conclusion
In summary, the study explored the direct and indirect impacts of
four constructs, namely perceived service quality, perceived safety/se­
curity, the image of the services and satisfaction regarding the loyalty of
passengers in the context of bus services in a developing country. The
findings from this study have contributed to both theory and practice. In
terms of theoretical implications, a sophisticated conceptual model has
been developed to provide a better understanding of how different
perceived safety/security and perceived service quality dimensions form
the perception of safety/security and service quality, and how these two
antecedents affect the image of the bus services, passenger satisfaction
and loyalty. Additionally, multigroup analysis was also employed to
examine the impact of gender on the formation of bus passenger loyalty.
In terms of practical implications, the study’s results are very useful for
both bus operation firms and policy-makers to develop effective strate­
gies aiming to retain their current passengers and attract the new ones.
Acknowlegdement

6. Limitations and future research
Despite its theoretical and managerial contributions, the current
study is not without limitations. In this paper, only the moderating effect
of gender in building bus passenger loyalty has been investigated. The
Anh Thi Phuong Tran was funded by Vingroup Joint Stock Company
and supported by the Domestic Master/PhD Scholarship Programme of
Vingroup Innovation Foundation (VINIF), Vingroup Big Data Institute
(VINBIGDATA).

Appendix

Table A1
Measurement scales

Code Measurement scales Mean Standard Deviation

(SD)

Perceived Safety & Security 1 (PSS): During access/egress

PSSW1 I feel safety from crime on the way to bus stops 4.770 1.742
PSSW2 I feel safety from traffic accidents on the way to bus stops 4.970 1.685
PSSW3 I feel safe when walking to bus stops in the daytime 5.374 1.425
PSSW4 I feel safe when walking to bus stops at night 4.252 1.677
PSSW5 There is pedestrian access (e.g. sidewalks) to bus stops 4.854 1.597
PSSW6 The neighbourhood in this area is good 3.924 1.606
PSSW7 Lighting levels on the way to bus stops meet safety requirements 5.166 1.376
Perceived Safety & Security 2 (PSS): At bus stops
PSSS1 I feel safe from crime at bus stops 4.514 1.757
PSSS2 I feel safe from traffic accidents when waiting at bus stops 4.959 1.617
PSSS3 I feel safe when waiting at bus stops in the daytime 5.337 1.365
PSSS4 I feel safe when waiting at bus stops at night 4.207 1.682
PSSS5 Video cameras are installed at stops 3.770 1.896
PSSS6 Staff/police are often present at stops 3.653 1.859
PSSS7 Lighting levels at bus stops meet safety requirements 4.883 1.595
Perceived Safety & Security 3 (PSS): On-board
PSSB1 I feel safe from crime on the bus 4.657 1.831
PSSB2 I feel safe from traffic accidents when travelling on buses 5.103 1.574
PSSB3 I feel safe to use bus services in the daytime 5.524 1.189
PSSB4 I feel safe to use bus services at night 4.833 1.576
PSSB5 Video cameras are installed on the bus 5.591 1.331
PSSB6 Staff/police present on the bus 6.010 0.923
PSSB7 Lighting levels on buses meet safety requirements 5.853 1.004
(continued on next page)

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D.Q. Nguyen-Phuoc et al. Transport Policy 101 (2021) 162–173

Table A1 (continued )
Code Measurement scales Mean Standard Deviation
(SD)

Perceived Safety & Security 1 (PSS): During access/egress

PSSB8 Safety equipment (fire extinguisher, first aid) is installed on the bus 5.713 1.213
Perceived Service Quality 1 (PSQ): Tangibility
PSQT1 Seating comfort 5.338 1.328
PSQT2 Comfort of air conditioning 5.378 1.442
PSQT3 Noise insulation in car 5.202 1.522
PSQT4 Car cleanliness 5.178 1.373
Perceived Service Quality 2 (PSQ): Convenience
PSQC1 Convenience of transfer to other transport modes 5.140 1.376
PSQC2 Convenience of ticketing 5.585 1.228
PSQC3 Frequency of bus schedule 5.131 1.379
PSQC4 Prompt response to passenger suggestions and complaints 4.771 1.367
PSQC5 Update of bus schedule change at stations 5.036 1.370
PSQC6 Coverage of the entire city 5.536 1.232
Perceived Service Quality 3 (PSQ): Personnel
PSQP1 Courtesy displayed by employees 5.328 1.291
PSQP2 Employee service attitude 5.314 1.299
PSQP3 Knowledge of employees 5.386 1.204
PSQP4 Neat appearance of employees 5.560 1.123
Perceived Service Quality 4 (PSQ): Reliability
PSQR1 On-time performance 4.946 1.434
PSQR2 Safety of driving 5.237 1.321
PSQR3 Accuracy of timetable information 5.011 1.390
PSQR4 Steadiness of driving 4.866 1.564
Image (IMA)
IMA1 In my opinion, this bus system has a good image in the minds of passengers 5.199 1.159
IMA2 Compared to other bus systems, this bus system has a better image 5.218 1.172
IMA3 The reputation of this bus system is good 5.355 1.128
IMA4 The impression of this bus system is good 5.367 1.169
IMA5 The overall image of this bus system is good 5.409 1.124
Satisfaction (SAT)
SAT1 I feel happy with my decision to travel by this transport service 5.328 1.238
SAT2 I believe I made the right decision by choosing 5.507 1.142
SAT3 I am satisfied with this transport service 5.505 1.149
Loyalty (LOY)
LOY1 I would tell other people positive things about this transport service 5.460 1.161
LOY2 I would recommend other people to travel by this transport service 5.498 1.173
LOY3 I would provide my friends, family and neighbours with positive advice about this transport service when they are choosing a transport 5.575 1.124
mode for travel
LOY4 I intend to travel by this transportation service more often in the future 5.317 1.251
LOY5 I feel better travelling by this transport service 5.372 1.268
LOY6 I prefer travelling by this transport service to others 5.078 1.500
LOY7 I intend to keep travelling by this transport service in the future 5.615 1.229

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