Structural equation modeling of user satisfaction of bus transit service quality based on stated preferences and latent variables

Few studies have been conducted on the service quality (SQ) of bus transit in developing countries. This paper presents a structural equation modeling (SEM) approach to identifying the relationships among major attributes that affect the SQ of bus transit in the city of Dhaka in Bangladesh. Specifically, 22 bus transit SQ attributes, drawn from 655 questionnaires, are used to develop different SEM models for the city. Along with stated preferences, the effect of three latent variables on SQ is analyzed. Among the developed models, the best model is selected by using different statistical approaches. With the best model, selected attributes are rated according to their relative importance on SQ. Acknowledging limited resources of a developing nation, this study gives a clear way ahead to planners, operating companies and transport managers to design appropriate transport policies which will ensure more effective services to current bus users as well as attracting new passengers.