Moving Forward: The Role of Marketing in Fostering Public Transport Usage

Maarten J. Gijsenberg*, Peter C. Verhoef

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)
125 Downloads (Pure)

Abstract

To reduce traffic congestion and air pollution, public policy makers often try to stimulate the use of public transport, as it is a more sustainable alternative to traveling by car. This study therefore investigates the impact of firm-initiated marketing actions and traveler satisfaction on monthly cumulative traveled distance of a Western European railway firm, as well as possible effects of this cumulative traveled distance on satisfaction. Analysis of time-series data on traveled distance, advertising, promotions, and satisfaction using a vector autoregressive model with exogenous variables that accounts for seasonality, trending behavior, and gasoline prices reveals positive effects of advertising and promotions. Advertising elasticities are considerably smaller than meta-analytic values of brand-advertising elasticities. Similarly, promotion elasticities are lower than those frequently reported in marketing. The authors find no effect of satisfaction on traveled distance; however, they do find a negative effect of traveled distance on satisfaction, which could be explained by capacity constraints. The authors conclude that firm-initiated marketing actions are useful and effective in fostering public transport usage.

Original languageEnglish
Pages (from-to)354-371
Number of pages18
JournalJournal of Public Policy & Marketing
Volume38
Issue number3
DOIs
Publication statusPublished - Jul-2019

Keywords

  • advertising
  • promotions
  • public transport
  • satisfaction
  • services marketing
  • CUSTOMER SATISFACTION
  • TRANSIT RIDERSHIP
  • CONSUMER RESEARCH
  • SALES PROMOTIONS
  • DYNAMIC-MODEL
  • MODAL CHOICE
  • LONG-RUN
  • PRICE
  • IMPACT
  • DETERMINANTS

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