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Using refined Kano's model in Evaluating Kaohsiung Rapid Transit System service quality

Abstract Low passenger volume is the main reason why Kaohsiung Rapid Transit Corporation (KRTC) in Taiwan registered such big deficits and demanded to be settled. Attracting more passengers having a trip on the KRTC trains seems to be a critical, but actually retaining customers is more important in the viewpoint of marketing management; one major way to retain customers is to delight them and understanding whether customers are delighted or not is required. This study uses refined Kano's models to understand Kaohsiung Rapid Transit System (KRTS) users’ service quality requirements for improving service quality from psychological viewpoints and then uses analysis of variance (ANOVA) to identify significant demographic variables for market segmentation. With the application of refined Kano's model and ANOVA technique, management can accurately understand the different preferences and requirements among different segments and make diverse quality management or marketing management strategies to retain and then attract more KRTS users.