Bus Co is a large bus operator, operating long-distance bus …
Bus Co is a large bus operator, operating long-distance bus services across the country There are two other national
operators in the country Bus Co’s mission is to ‘be the market leader in long-distance transport providing a greener,
cleaner service for passengers nationwide’ Last month, an independent survey of 40,000 passengers was carried
out, the results of which are shown in the table below:
Table: Bus passenger satisfaction % by national operator
Operator
Overall satisfactionValue for moneyPunctualityJourney time
Bus
*
67
80
82
Prime
*
58
76
83
Express
*
67
76
89
* denotes that the percentage has not yet been calculated
The ‘overall satisfaction’ percentages, which have not yet been inserted into the table, are calculated using a weighted
average which reflects the importance customers place on each of the other three criteria above The weightings used
are as follows:
Value for money
40%
Punctuality
32%
Journey time
28%
The managing director (MD) of Bus Co has said: ‘Independent research has shown that our customers are the most
satisfied of any national bus operator We are now leading the way on what matters most to customers – value for
money and punctuality’
Required:
(a) Calculate the ‘overall satisfaction’ percentage for each operator
(2 marks)
(b) Taking into account all the data in the table and your calculations from part (a), discuss whether the
managing director’s statement is true
(4 marks)
(c)
When measuring performance using a ‘value for money’ approach, the criteria of economy, efficiency and
effectiveness can be used
Required:
Briefly define ‘efficiency’ and ‘effectiveness’ and suggest one performance measure for EACH, which would
help Bus Co assess the efficiency and effectiveness of the service it provides
(4 marks)
(10 marks)
