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Transportation Dissertation

Title Marketing Strategies of Passenger Service in High Speed Rail Transport - A case of Taiwan High Speed Rail Corporation
Year 2007
Summary

Yi Chen Lee, 2007,06
National Sun Yat-sen University

  Safe, high speed, on time, high transport volume, minimum land use, low energy and low pollution are unique features of high-speed rail transport. In countries reaching a threshold level of economic development, traditional railway system will no longer satisfy the need of the mass in cross-township transport. As the cost of energy and demand for environmental protection escalates, high-speed rails have gradually surfaced as a competitive mode of transport in cross-township traveling. Furthermore, it is able to bring regional developments. However, high-speed rail transport is a new industry in Taiwan. There has been no hands-on experience in the passenger service. How then, through the development of marketing strategy and implementation, so as to promote the service quality and customer satisfaction, has been a primary operations objective of high-speed railways. This motivated the need to study the service marketing strategy in high-speed rail transport.   The Taiwan High Speed Rail Corporation (THSRC) is the subject of this study. The 7P marketing mix of the service industry was the theoretical foundation. Historical data on the service and marketing strategies of high-speed railways in countries such as Japan, France and Germany were collected. Questions for conducting in-depth interviews with experts in high-speed railway were devised from the study of these historical data. In addition, a survey questionnaire was developed from the data collected via interviews. Passengers taking the Taiwan High Speed Rail were surveyed for statistical analysis. Finally, an appropriate service and marketing strategy was developed.   The results show, the Taiwan High Speed Rail needs to first build a brand image of safety and credibility. It needs to schedule and allocate headways in line with its target passenger group and develop a comprehensive product strategy for its target customers. Having done that, it needs to propose competitive price strategies and promotion programs on corporate customers and travel agencies. Making use of the comprehensive mobile telephony coverage and internet network, and more convenient channels should be further developed. Furthermore, the THSRC needs to solve the problem of passenger transfers in station areas gradually. This is necessary to promote the overall service quality, satisfy divergent needs of the target market, and build up a recognized brand in high-speed railway transport. Finally, the recommendations made to THSRC were compared with service and marketing strategies in other countries. It is hoped that the results would be able to provide THSRC and any other countries planning to develop high-speed railway, some practical reference in planning their marketing strategies.
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