Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Empirical Study on the Determinants of Service Quality Deterioration of Taxi Industry : Based on Traffic Accidents by Taxi in Seoul

택시서비스 품질 저하의 선행요인들에 관한 실증적 연구 : 서울지역 택시의 교통사고율을 중심으로

  • Lee, Sang Joon (Korea University Business School, Korea University) ;
  • Lee, Younsuk (Graduate School of Management of Technology, Sogang University) ;
  • Shin, Hojung (Korea University Business School, Korea University)
  • 이상준 (고려대학교 경영학과) ;
  • 이윤숙 (서강대학교 기술경영전문대학원) ;
  • 신호정 (고려대학교 경영학과)
  • Received : 2015.02.04
  • Accepted : 2015.10.28
  • Published : 2015.11.30
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Abstract

Taxi, one of the passenger services, is an essential transportation system in our society. In spite of the importance of taxi service, deterioration of the service quality is continuously reported. In particular, taxi service failures due to traffic accidents have emerged as the most serious social problem which may incur a considerable amount of social costs. In this study, we focus on analyzing the causes of service quality deterioration-traffic accidents of both corporately owned and privately owned taxies in Seoul. The research objective is to find out the determinants of service quality deterioration of Taxi industry and to suggest policies for improving the taxi service in Seoul. We collected the archival data from KTSA (Korea Transportation Safety Authority) and ODP (Open Data Portal), which span from 2005 to 2014. Hierarchical regression analyses and a set of mediation tests are conducted. The root factors inducing traffic accidents of taxies are divided into competitive, and profitability factors. The statistical results indicate that the accident ratio per taxi is not only affected by competitive/profitability factors such as number of active taxi drivers, number of bus passengers, and taxi fare, but also mediated by the traffic violation ratio. To alleviate the current problems with taxi service in Seoul, we conclude that the number of taxies be reduced and the taxi fare be increased. Finally, we suggest several policies to improve the endemic taxi industry problems, over-supply and the low profitability by enhancing the linkage between service quality and profitability.

Keywords

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