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482 quality, transportation<br />

aesthetics; environmental auditing; environmental<br />

compatibility; impact assessment, environmental;<br />

perception, environmental<br />

Further reading<br />

State of the Environment Advisory Council �1996)<br />

Australia, State of the Environment, 1996, Collingwood:<br />

CSIRO Publishing.<br />

quality, transportation<br />

JOHN J. PIGRAM, AUSTRALIA<br />

Providing transportation service can be an<br />

extremely challenging endeavour. First, the production<br />

of any service can be more difficult to<br />

manage than the production of goods, since<br />

services are largely intangible. In the production<br />

of a pure service, such as in transportation, there is<br />

no physical item to examine prior to purchase or<br />

use, so service quality is not as readily<br />

observable as in the case of goods. Customer<br />

perceptions are extremely important, making it<br />

necessary for the provider to perform the service to<br />

the expectations of the customer.<br />

Second, transportation service must be performed<br />

on a continuous basis. Unlike the production<br />

of goods, there can be no inventory of services<br />

to draw from to meet the needs of customers when<br />

demand increases. If transportation capacity is<br />

not available to meet the needs of customers at the<br />

time and place required, the opportunity to fill that<br />

need is lost forever. Additionally, production of<br />

transportation services necessarily involves management<br />

of people and equipment from a<br />

distance. Managers typically are not in the same<br />

geographic location as the transportation equipment<br />

or the employees operating it. This makes it<br />

very difficult for them to know how well the service<br />

is being provided and to make the necessary<br />

adjustments to ensure that the service conforms to<br />

the needs of the customer.<br />

As the transportation sector continues to mature<br />

in a deregulated environment, there has been an<br />

increasing emphasis on service quality competition.<br />

Today, managers are recognising that improved<br />

service quality can be used as an important tool to<br />

differentiate their service offering from that of<br />

other providers. This differentiation leads to<br />

enhanced customer satisfaction and improvements<br />

in market share and profitability and is true<br />

for both passenger and freight service. There are<br />

many dimensions to these services, but here the<br />

various dimensions of transportation service quality<br />

can be grouped into four general categories: speed,<br />

availability, dependability and communication.<br />

Tourists are concerned with the speed of<br />

transportation service. Not only are long trips<br />

typically very tiring, but in today's fast-paced<br />

economy, the value of the traveller's time plays an<br />

important role in the choice of transportation<br />

mode. Naturally, faster service is considered to be<br />

of higher quality and usually commands premium<br />

fares. For example, taking a long distance trip by<br />

bus or private automobile may be less expensive<br />

than flying, but airlines are generally much faster.<br />

Tourists will be more refreshed after a few hours of<br />

flying than after days of driving or riding, and more<br />

time is available to enjoy leisure visits or conduct<br />

business associated with the trip. In freight service,<br />

carriers that provide fast service typically charge a<br />

premium price for their services, such as for<br />

overnight parcel delivery services.<br />

Availability is also an important dimension of<br />

the service quality. Tourists prefer carriers which<br />

offer frequent and more convenient schedules to/<br />

from the desired origin and destination. Thus,<br />

carriers with more frequent service offerings to/<br />

from preferred locations on a given day have a<br />

distinct advantage over those with schedules of<br />

lower quality service. If tourists have to drive great<br />

distances to connect with an airline, bus or train,<br />

the carrier may be at a significant disadvantage<br />

relative to carriers that provide service to more<br />

communities.<br />

A carrier that has appropriate transportation<br />

equipment at the right locations and at the right<br />

time is another dimension to availability. Those<br />

that always have needed equipment available for<br />

pickup and delivery of passengers and/or freight<br />

shipments permit more flexibility in customer<br />

transportation decision making, thus providing an<br />

important competitive advantage. Dependability is<br />

still another important dimension of service quality.<br />

Business travellers must depend on the transportation<br />

provider to arrive on time so that they can

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