Moving Forward: The Role of Marketing in Fostering Public Transport Usage. (July 2019)

• Record Type: Journal Article
• Authors: Gijsenberg, Maarten J.; Verhoef, Peter C.
• Is Part Of: Journal of public policy & marketing. Volume 38:Number 3(2019)
• Page Start: 354
• Page End: 371
• Publication Date: 2019-07
• Subjects: advertising -- promotions -- public transport -- satisfaction -- services marketing; Marketing -- Periodicals; Marketing -- Social aspects -- Periodicals; 658.802
• DOI: 10.1177/0743915619846869
• Languages: English
• ISSNs: 0743-9156

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.