Abstract
M.Phil.
Competition in the bus industry is very fierce. To gain competitive advantage bus manufacturing companies have
resorted to various strategies such as intensive marketing, advertising, product innovation, and creation of a wider
range of products. These are not sufficient to remain competitive. Another strategy is improving service quality to
their customers. A study by Oskrowski et al (1993) showed that the airline companies were able to acquire and retain
customers‟ loyalty by continuing to provide perceived high quality services. Bus building companies operating in the
transportation industry (which is the same as airline companies); see improvement of the service quality being a
major pillar in acquiring new customers and also in retaining existing customers. Thus, providing superior service
quality by implementing stringent “Service Performance Logistics Metrics” should be the main agenda for all bus
building companies in order to remain competitive.
Many empirical studies had tried to measure different dimensions of service quality of the bus building companies.
Gourdin (1999) categorized the bus building industry‟s quality into three aspects: (a) price; (b) safety; and (c)
timeless. Gilbert and Wong (2003) have revised and adapted the three-aspects of service quality to include: (a)
reliability; (b) tangibility; (c) responsiveness; and (d) assurance.
This research thesis have re-looked at the service quality metrics, and categorized them in eight (8) broad measures;
namely: (a) reliability and availability; (b) parts and parts delivery; (c) repairs selection factors; (d) products design
aspects & environmental; (e) product support and warranty; (f) cost and cost service; (g) technical resolution,
information, & technical data/software; and (h) facilities characteristics and manpower. Gilbert and Wong (2003),
empirical study focused on the airline industry service quality metrics. These are not quite adaptable to the bus
building companies; hence this research was focused on the eight (8) broader aspects.
The research was conducted by three sets of questionnaires: (a) one for customers for the bus building industry; (b)
the second one for employees of the bus building companies; and (c) questionnaire for the customers for bus
dealerships networks. These questionnaires are attached as annexure 3 to 5 of this thesis. Focus Groups Interviews
(as per Annexure 2 of this thesis) were also held to guide the process of compiling the questionnaires, and also
deciding which questions/aspects needed to be included on the final questionnaires.
The sorting, analyses, and interpretation of data were primarily done by: - (a) Excel; (b) SPSS – Statistical Analysis
Software; and (c) PowerPoint. Data was organized in the form of: Metrics; Graphs (e.g. bar, pie charts); and
spreadsheets (with comments and explanatory notes).
In general, the study was motivated by the following reasons: - (a) seasonality nature of the manufacturing volumes
of buses in South Africa; (b) fragmentation nature of the bus building industry; (c) lack of available uniform
performance measures of services provided by bus building companies; (d) lack of government manufacturing
support program (i.e. almost the same as those that exist for car manufacturing in South Africa – MIDP). The re-focus
of government transportation activities, moving peoples away from personal cars to buses; rail; and taxis - made the
study even more important. The study will also serve as a benchmark measure of their services as they are at the
moment. It will also help those bus manufacturing companies that are not well geared towards competiveness. It
further contribute to the body of knowledge as there are limited studies (of this nature) being done in South Africa.
Thus, for investors who wish to enter the bus building industry in South Africa; the study will prove to be very helpful
in terms of the service status quo provided by bus building companies.