| AN EMPIRICAL STUDY OF THE SERVICE QUALITY-CUSTOMER LOYALTY RELATIONSHIP IN THE MACAU PUBLIC TRANSPORTATION SECTOR Mandy Lei and Lancy Mac Issue 30 (Vol. 15, No. 2), December 2005, pp. 99-111. Quality service has long been attributed as one of the major determinants of long-term customer loyalty. This study seeks to investigate the relationship between service quality and customer loyalty in the context of Macau, a small city in South China. Based on an empirical study of 387 valid responses, it is found that tangibles, assurance, empathy and responsiveness are important determinants of customer loyalty in the transport service sector. Besides improving service quality, the public bus service providers should also consider offering differentiated service as it is found that frequency of usage of bus services does moderate the relationship between service quality and customer loyalty. A differentiated offer which meets high and low frequency users�� preferences will improve the overall customer loyalty and thus ensure long term profitability. |