Marketing of Public Services The impact of Service quality, Reputation and Consumer Engagement on Customer Perceived Value, Satisfaction and Loyalty

Main Article Content

Madhavi Ayyagari
Sanjai Parahoo
Heather Lea Harvey


Public services are provided by government and have been traditionally supply-oriented. Changing citizen expectations put pressure on government agencies and public sector organizations to be accountable for efficiency and effectiveness. Further, the quest to enhance international competitiveness by ranking high in the echelons of world’s best governments, led to the adoption of proven marketing philosophy and methodologies in the domain of public service as well. The present study aims at examining the impact of Service quality, Reputation and Consumer Engagement on Customer Perceived Value, Satisfaction and Loyalty for an important public service viz., Dubai Metro which operated in an intensely competitive market. The study aimed at developing and empirically testing a structural model of travel behavior based on variables such as satisfaction, value, quality, reputation and engagement that have been found to drive loyalty in various industry settings. An understanding of the drivers of satisfaction contributes to the government’s aim of delivering services that rival the best in the private sector; contributes to the neglected public service context in the service management literature and captures insights that help the shift to service-dominant thinking within the public sector.

Article Details

Author Biographies

Sanjai Parahoo, Hamdan Bin Mohammed Smart University

First Author

Sanjai K. Parahoo is Associate Professor of Marketing at the Business School at Hamdan Bin Mohammed Smart University, Dubai. He has extensive innovation management and contract research experience in various African countries. His research interests are consumer behavior in business and e-learning environments.

Heather Lea Harvey

Dr. Heather L Harvey earned her doctorate in public health, from the University of South Carolina in 1999, and has taught for more than 10 years at the university and secondary level in the US and more recently the UAE, West Indies, Saudi Arabia & Jordan. Her research interests have expanded from program evaluation to include efficacy and behavior.

Present Affiliation: Hashemite University, School of Medicine, Zarqa Jordan


Agus, Arawati, Barker, Sunita & Kandampully, Jay (2007). An exploratory study of service quality in the Malaysian public service sector. International Journal of Quality and Reliability Management, vol. 24(2), p. 177-190
Bamford, D. and Xystouri, T. 2005,. A case study of service failure and recovery within an international airline. Managing Service Quality, (15)3: 306-22.
Barnett M.L, J.M., Jermier, and B.A. Lafferty. 2006. Corporate reputation: the definitional landscape. Corporate Reputation Review, 9(1): 26-38.
Brysland, A., & Curry, A. (2001). Service improvements in public services using SERVQUAL. Managing Service Quality, 11(6), 389-401
Butcher, K., Sparks, B., and O’Callaghan, F. 2001. Evaluative and relational influences on service loyalty. International Journal of Service Industry Management, 12(4): 310-327.
Caron, D. J., & Giauque, D. (2006). Civil servant identity at the crossroads: New challenges for public administrations. The International Journal of Public Sector Management, 19(6), 543-555. doi:
CDM 2010. Clean Development Mechanism: Baseline Methodology for Mass Rapid Transit Projects. (Accessed January 15, 2012).
CEC. 2001. “Commission of the European Communities ‘White Paper – European Transport Policy for 2010: time to decide. Office for Official Publications of the European Communities, Luxembourg.” (Accessed December 15, 2011).
Chang, J.S., and Lee, J.H. 2008. Accessibility Analysis of Korean High-speed Rail: A Case Study of the Seoul Metropolitan Area, Transport Reviews, 28(1): 87–103.
Churchill G.A. Jr., 1979. A paradigm for developing better measures of marketing constructs, Journal of Marketing Research. 16: 64-73.
Cronin J.J., M.K. Brady and C.T. Hult. 2000. Assessing the effects of quality, value, and customer satisfaction on consumer behaviour intentions in service environments. Journal of Retailing, 76(2): 193-218.
Deng, Z., Lu, Y., Wei, K. K. and Zhang, J. 2009. Understanding customer satisfaction and loyalty: an empirical study of mobile instant messages in China. International Journal of Information Management, 30(4):289-300.
Drew, J.H., and Bolton, R.N. 1987. Service Value and its measurement. In Add value to your service. Carol Suprenant, ed., Chicago: American Marketing Association: 49-54.
Dubai Metro, 2012. Dubai Metro hits the 100 million mark. Available at (Accessed on 07 January 2012).
Edvardsson, B, G. Ng, C.Z. Min, R. Firth, and D. Yi. 2011. Does service-dominant design result in a better service system? Journal of Service Management, 22:440 – 556.
Edvardsson, B, M.D Johnson, A. Gustafsson, and T. Strandvik. 2000. The effects of satisfaction and loyalty on profits and growth: products versus services. Total Quality Management 11:917-27.
Emma Dudley, Diaan-Yi Lin, Matteo Mancini, and Jonathan Ng (2015). Implementing a citizen-centric approach to delivering government services, Mckinsey Quartlery, July accessed on 3rd November
Fornell C, G.J., Tellis, and G. Zinkhan. 1982. Validity assessment: A structural equations approach using partial least squares. In: B.J. Walker et al. (eds.), AMA educators' proceedings, 405-409. Chicago: American Marketing Association.
Fouracre P, C. Dunkerley, and G. Gardner. 2003. Mass rapid transit systems for cities in the developing world. Transport Reviews. 23, 3: 299–310.
Gaebler, T. and Osborne, D.(1993), Reinventing Government. How the entrepreneurial spirit is transforming the public sector. Penguin, New York.
Garbarino E. and M.S. Johnson. 1999. The different roles of satisfaction, Trust and commitment in customer relationships. Journal of Marketing, 63: 70-87.
Gebauer, H, M. Johnson, and B. Enquist. 2010. Value co-creation as a determinant of success in public transport services: A study of the Swiss Federal Railway operator (SBB). Managing Service Quality, 20(6): 511 – 530.
Gerbing, D.W. and Anderson, J.C. 1988. An updated paradigm for scale development Incorporating unidimensionality and its assessment’, Journal of Marketing Research, ( 25)2: 186–192.
Gerbing, D.W. and Anderson, J.C. 1988. An updated paradigm for scale development Incorporating unidimensionality and its assessment, Journal of Marketing Research, 25(2):186–192.
Goldman T. and G. Roger. 2006. Sustainable urban transport: Four innovative directions. Technology in Society, 28:261–273.
Graham, M.E., and Bansal, P. 2007. Consumers' Willingness to Pay for Corporate Reputation: The Context of Airline Companies, Corporate Reputation Review, 10(3): 189–200.
Gulf News. 2012. Dubai Metro on right track: Green line extension project will make it the most viable form of public transport. Editorial, p 8.
Hayashi Y, K. Doi, M. Yagishita, M., and M. Kuwata, 2004. Urban Transport Sustainability: Asian Trends, Problems and Policy Practices. European Journal of Transport and Infrastructure Research, 4(1): 27-45.
Helgesen, O. and Nesset, E. 2007. Images, Satisfaction and Antecedents: Drivers of Student Loyalty? A Case Study of a Norwegian University College. Corporate Reputation Review, 10(1): 38 –59.
Hellier, P.K., Geursen G.M, Carr, R.A, and Rickard J.A. 2003. Customer repurchase intention, a general structural equation model. European Journal of Marketing, 37(11-12): 1762-1800.
Hessa Buhumaid, Margaux Constantin, and Jörg Schubert (2016), How the UAE government modernized citizen services, McKinsey Article, July,
Hu, L. and Bentler, P.M. 1999. Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1):1–55.
Hu, L. and Bentler, P.M. 1999. Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1):1–55.
HY, and J. John, 2008. Role of customer orientation in an integrative model of brand loyalty in services. The Service Industries Journal, 30(7): 1025–1046.
Ian R. Hodgkinson, Claire Hannibal, Byron W. Keating, Rosamund Chester Buxton, Nicola Bateman, (2017). Toward a public service management: past, present, and future directions. Journal of Service Management, Vol. 28 Issue: 5, pp.998-1023, Permanent link to this document:
Jansson, K. (1996). Welfare and markets in passenger transport. International Journal of Social Economics, 23(10/11): 120-136.
Järvinen R, and K. Suomi, 2011. Reputation attributes in retailing services: managerial perspective, Managing Service Quality, 21(4): 410 – 423.
275m use Dubai public transport in first half of 2017. (2017 August 5). Khaleej Times. retrieved from Accessed on August 15th August 2017
Kleine R.E., S.S. Kleine, and G.J. Brunswick. 2009. Transformational consumption choices: building an understanding by integrating social identity and multi-attribute attitude theories. Journal of Consumer Behaviour, Vol. 8: 54–70.
Kleine RE, Kleine SS. and Brunswick GJ. 2009. Transformational consumption choices: building an understanding by integrating social identity and multi-attribute attitude theories. Journal of Consumer Behaviour, 8(1): 54–70.
Knutsson S., 2003. Valuing rider quality in Swedish special transport services new findings. Journal of Public Transportation, 6, 3: 65-84.
Kwak D.H. and Kang, J.H. 2009. Symbolic purchase in sport: the roles of self-image congruence and perceived quality. Management Decision, 47(1): 85 – 99.
Lee H.S., 2010. Factors Influencing Customer Loyalty of Mobile Phone Service: Empirical Evidence from Koreans. Journal of Internet Banking and Commerce, August, 15 (2): 1-10.
Liang C.J., W.H., Wang and J.D. Farquhar. 2009. The influence of customer perceptions on financial performance in financial services. International Journal of Bank Marketing, 27(2): 129-149.
Lovelock C., G. Lewin , G. Day, J. and Bateson. 1987. Marketing Public Transit, Praeger, Marketing, 68(1): 1-17.
Madhavan, N. (2010). Mass Rejected Transit System: Case study Urban Infrastructure. Business Today, April 4.
Mahtani, S., and Wong, C.H. (2013), “Singapore metro blog”, In Wall Street Journal SouthEast Asia, (December 16, 2011), available at (Accessed 15 January 2013).
Maitha (2011). Dubai metro reduces traffic congestion. Article dated 29 April 2011. (Accessed January 7 2012).
Mc Dougall, G, H G and Levesque T. 2000. Customer satisfaction with services: putting perceived value in the equation. Journal of services marketing, 14(5): 392-410.
Metro (2012). Performance on target, customer satisfaction. Available at (Accessed January 28, 2012).
MoEW (UAE Ministry of Environment and Water) (2015), United Arab Emirates State of Green Economy Report 2014, MoEW, Dubai
Nguyen N. and G. LeBlanc. 2001. Corporate image and corporate reputation in Customers’ retention Decisions in Services. Journal of Retailing and Customer Service,s 8(4): 227-236.
Nunnally, J.C. 1978. Psychometric Theory. McGraw-Hill, New York, NY.
Oliver R.L. 1997. Satisfaction: A Behavior Perspective on the Consumer. NY: McGraw-Hill.
Osborne, S.P., Radnor, Z. and Nasi, G. (2013), “A new theory for public service management? Toward a (public) service-dominant approach”, The American Review of Public Administration, Vol. 43 No. 2, pp. 135-158
Parahoo, S., Harvey, H., & Radi, G. 2014. Changing Consumer Behavior Paradigms: Does Passenger Age Impact Factors Influencing MRT Usage? Corporate Reputation Review, 17(1), 64-77.
Parahoo, S.K., 2012. Credit where it is due: drivers of loyalty to credit cards. International Journal of Bank Marketing, 30(1), pp.4-19.
Parahoo, S.K., Harvey, H.L. and Tamim, R.M., 2013. Factors influencing student satisfaction in universities in the Gulf region: does gender of students matter?. Journal of Marketing for Higher Education, 23(2), pp.135-154.
Parasuraman A, L L., Berry, and V. Zeithaml. 1988. “SERVQUAL: A multiple item scale for measuring consumer perceptions of service quality.” Journal of Retailing, 64(1): 12-40.
Paulley, N., Balcombe, R., Mackett, R., Titheridge, H., Preston, J.M., Wardman, M.R., Shires, J.D., White, P. 2006. The demand for public transport: The effects of fares, quality of service, income and car ownership. Transport Policy, (13)4: 295-306.
PR 2.0. 2011. Public Relations. (Accessed 10 January 2012).
Prabha Ramseook-Munhurrun, Soolakshna D. Lukea-Bhiwajee, Perunjodi Naidoo (2010). “Service Quality in the Public Service,” International Journal of Management and Marketing Research Volume 3, No.1, 37-50,, accessed on 15th August 2017\
Pura, M., 2005. Linking perceived value and loyalty in location-based mobile services. Managing Service Quality, 15(6): 509-538.
Reichheld F, and T. Teal, 1996. The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value. Harvard Business School Press, Boston, MA.
Rhoades, D. L. and Waguespack, B. 2008. Twenty years of service quality performance in the US airline industry. Managing service quality, 18(1): 20-33.
Richard Batley , ClaireMcloughlin (2015), The Politics of Public Services: A Service Characteristics Approach, World Development, Volume 74, October, Pages 275-285
Richmond, J. 2008. Transporting Singapore-The air-conditioned nation, Transport Reviews, 28(3): 357–390.
Robert D.Behn (1998). “The new public management paradigm and the search for democratic accountability,” International Public Management Journal, Volume 1, Issue 2, 1998, Pages 131-164
Roberts P.W. and Dowling, G.R. 2002. Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23: 1077–1093.
Roy R and S. Ng, 2012. Regulatory focus and preference reversal between hedonic and utilitarian consumption. Journal of Consumer Behaviour, 11: 81–88.
RTA, 2011. Roads and Traffic Authority. (Accessed December 05, 2011).
Sebastien Katch and Tim Morse (2009). When citizens are your customers, McKinsey Quarterly August, accessed on 3rd nov
Serco. 2011. About Serco. (Accessed November 15, 2011).
Sustainability Report 2016 First GRI Standards sustainability report globally for the Roads and Public Transportation Sector
Tom Gash, Nehal Panchamia, Sam Sims and Louisa Hotson (2013). Making public service markets work: Professionalising government’s approach to commissioning and market stewardship, Institute for Government, July
Trasorras R , Weinstein A., and Russell A., 2009. Value, satisfaction, loyalty and retention in professional services. Marketing Intelligence and Planning, 27(5): 615-632.
Turel O, and A. Serenko, 2006. Satisfaction with mobile services in Canada: an empirical investigation. Telecommunications Policy, 30: 314-331.
UN. 2010. 2009- Revision of world urbanization process. (Accessed November 10, 2011).
Van de Walle, S. (2016), When public services fail: a research agenda on public service failure, Journal of Service Management, Vol. 27 No. 5, pp. 831-846.
Vargo S.L., and R.F. Lusch. 2008. Service-dominant logic: continuing the evolution. Journal of Public Administration Review, 40(3): 240-6.
Vidaver-Cohen, D. 2007. Reputation beyond the rankings: a conceptual framework for business school research. Corporate Reputation Review, 10(4): 278-304.
Wang Y, H.P Lo, R. Chi, and Y. Yang, 2004. An integrated framework for customer value and customer-relationship-management performance: a customer-based perspective from china. Managing Service Quality, 14(2/3): 169-82.
Wefald A.J. and Downey, R.G. 2009. Construct dimensionality of engagement and its relation with satisfaction. Journal of Psychology, 143(1): 91–111.
Wikipedia. 2012. Dubai Metro. Available at, (Accessed January 25, 2012).
Yigitcanlar T., Fabian L.F, and Coiacetto E. 2008. Challenges to urban transport sustainability and smart transport in a tourist city: the gold coast, Australia. The Open Transportation Journal, 2:29-46.
Yigitcanlar, T, Fabian, L. and Coiacetto, E. 2008. Challenges to urban transport sustainability and smart transport in a tourist city: the gold coast. The Open Transportation Journal, 2: 29-46.
Zeithaml, V., Parasuraman, A., & Berry, L. (1985). Problems and Strategies in Services Marketing. Journal of Marketing, 49(2), 33-46. doi:10.2307/1251563
Zeithaml, V.A., 1988. Consumer perceptions of price, quality and value: a means model and synthesis of evidence. Journal of Marketing, 52 (July): 2-22.