CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Online booking or e-ticketing as it may also be called is making waves in nearly all the sectors of transportation (road, water, air and rail). It started with the US Airways in 1970 and found it ways to Nigeria in early 2000 and booming until now. With the sudden growth in electronic commerce (e-commerce) globally, businesses are now making efforts to gain a competitive advantage by using e-commerce to interact with customers (Aljunaid, 2006).
Today, the internet is not considered as only a networking medium again but also as a medium of transaction for online consumers (Chan et al., 2013). According to Nielson Company report in 2013, in global average online browsing and buying intention in the next six month, clothing, accessories and shoes come in the first place followed by tours and hotel reservation is the second place that customer will purchase (www.nielsen.com). From the report, it clearly illustrates that virtually everyone in the world is getting dependent on internet purchase that can act as the medium to buy or carryout survey on tours and hotel. The reason why online purchasing is getting in the heart of the users is mainly because the internet brings ease to customers. Online shopping, games, books, and even groceries can be purchase online.
In Nigeria today, the use of internet has greatly increased compared to early 2000s. The increment in smartphone user nowadays has contributed in driving internet accessibility worldwide. Customers make use of the internet not only to buy products and services online but also to compare prices, product features and after sale service facilities they will receive if they purchase the product or services from a particular store (Sulaiman et. Al., 2006). Therefore, it is important for the marketers to widen their market coverage to reach customers worldwide.
Online booking is now commonly used in the transport sector in Nigeria not only in road transport service section but also airline industries, and rail sector. Besides on transportation, online bookings also are spreading to entertainment industry such as cinemas, concerts and sports. The spreading usage of booking brings benefits to those who are using the services. The effectiveness, reliability, convenience and safety makes online booking to be widely accepted. Online booking is now a substitute to the paper-based receipt received for the purchase of goods. Online booking is a paperless electronic document used for ticketing passenger and particularly used by transport industry. By having e-ticket, it makes the traveller not to bring physical paper, instead they just need to bring the bar code that have been given to them. With the trending QR code (Quick Response), QR code can be act as e-ticketing as the function of QR code is exactly same as e-ticketing where all the information about customers is kept in the QR code. QR code is the square made up of black module on a white background (www.qrreaders.org).
In today’s world, the widespread of zeal for e-commerce is leading the transport industry into online booking (e-ticketing) system. In African countries particularly, in Nigeria, South Africa, Ghana and Egypt, the e-ticketing services is fast gaining popularity. In Nigeria, Aviation sector can be called the pioneer that introduced e-ticketing as a medium to sell airline ticket in the transportation industry, followed by other sectors like road, rail and water.
Online services such as online bus booking, selecting seat, web check-in and more importantly, buying tickets all considered as essential for road transport companies to succeed. For the travellers’ point of view, the main benefits are the stress-free nature of paperless ticket. As the travellers no longer require to carry a paper ticket, that is to say the tension of misplacing the ticket is totally eliminated (Wong, 2008). Hence, this study will investigate the impact of online bus booking on customer satisfaction by using God is Good Motors, Ajah Terminal Lagos State, as a case study.
1.2 Statement of the Problem
In Nigeria today, most transport service companies are now providing online booking which is also termed as e-ticketing to travellers, it is impossible to meet all customers’ need at a time and therefore, it is imperative to prioritize certain customer and their need (Sara and Erica, 2005). In Nigeria, with the presence of high competitive road Transport Company, it is hard to earn the trust of customers. Therefore, this study intends to find the best factors that can help online bus booking services to get loyal customer. As services is an intangible product and depends directly on customer’s experience and feeling to be satisfied and be loyal.
Satisfaction in using services is vital as it can determine the repetitive use of customer on using the service again. Many road transport companies are not up to the expectation of customers. Some of the online booking services might have problem on the website. Lagging, too much or very little information, buffering, too much rules and regulations and the services is not to expectation of customer make customer change to other online bus booking services. Elements from customer satisfaction have been selected to measure whether it has relationship with customer loyalty in online bus booking services. Therefore, this research is aimed at exploring the impact of online bus booking on customer satisfaction by using God is Good Motors, Ajah Terminal Lagos State, as a case study.
1.3 Objectives of the Research
The objective of this study is to examine the impact of online bus booking on customer satisfaction by using God is Good Motors, Ajah Terminal Lagos State, as a case study. However, the specific objectives are:
i) To study the effects of customer satisfaction on online bus booking patronage
ii) To understand the factors that that contribute to customer satisfaction on online bus booking
iii) To determine the effects of service quality on customer satisfaction on online bus booking
1.4 Research Questions
The following questions were generated during the course of this study:
i) What are the effects of customer satisfaction on online bus booking patronage?
ii) What are the factors that that contribute to customer satisfaction on online bus booking?
iii) What are the effects of service quality on customer satisfaction on online bus booking?
1.5 Research Hypotheses
The following hypotheses were formulated for this study:
i) There is a significant correlation between customer satisfaction and online bus booking patronage
ii) There is no significant relationship between service quality and customer satisfaction on online bus booking
1.6 Significance of the Study
This study will be of great benefit to the transport industry as it will throw more light on how to satisfy customers and also to improve on their service quality in their online booking service to ensure a better patronage in their companies. It will also add to the body of knowledge in the area of transport services.
1.7 Scope of the Study
This study investigates the impact of online bus booking on customer satisfaction by using God is Good Motors, Ajah Terminal Lagos State, as a case study. Therefore, the study will be limited to the staff and passengers of God is Good Motors, Ajah Terminal Lagos State.
1.8 Limitations of the study
Due to the time and resources constrains, the survey respond might have respondent who are not really aware on customer satisfaction and the response will be negative. Respondent also may ignore certain question. Financial constraints, since the researcher spent funds on traveling and paying for stationery. However, the researcher used personal savings.
