A Study on the Service Marketing Strategy for the Railroad Industry

Chung, Koo - Sup(Graduate School of Business Administration Inha University)

Although the transportation service extended by the railroad industry to customers have remarkably improved, it is perceived that the service has yet to meet customers' needs and desires due to the lack of a marketing-wise ideas.

With such a conception in mind, this study was aimed at reviewing local and foreign literature regarding general theories of service and its marketing, and thereupon, establishing the appropriate theories of railroad service and its marketing to which all the staff and employees can agree to achieve the railroad business goals effectively, and based on these theories, surveying and analyzing the conditions of railroad service to address the problems and put forwards their solutions for more market- and customer-oriented administration and management.

The results of this study can be summarized as follows;

First, concepts of railroad transportation service are defined, and thereupon, characteristics and strategies of railroad service are analyzed to put forwards an effective railroad marketing system and its strategy.

Second, reform measures for railroad operation are suggested to help customers use the railroad service comfortably.

Third, based on the results of the survey on customers' satisfaction with railroad services, the reform measures are presented for such service element meeting customers' needs little as comfortable railroad: travel, in-train shopping and restaurant, purchase and reservation of ticket, waiting room's ticketing box and other convenient facilities.

Fourth, since 76% of the customers surveyed answered that "they were using the railroad service because of little traffic congestion and safety", it is judged that the precise operation of the train schedule is most important. Therefore, it will be necessary to read just the current train schedule drastically by line and weekday to fulfill the train schedule resented to customers without fail.

Fifth, in terms of service level, the fares for Saemaul Line seems to be relatively more expensive than those for Mugunghwa Line. In particular, as the fares for special compartment are rated depending on, the line zones, they are rated highly for the points between zones. Therefore, it is necessary to reorganize the fare ratings and system per class of train.

Sixth, 39% of the customers said that they were little or never aware of the railroad sight-seeing commodities, while 42.3% of them were informed of the commodities through in-station or in-line information broadcasting. So, a more positive P. R. method through TV, newspapers, magazines and InterNet need to be explored.