Abstract
Public services are offered to the public based on the principle of
equality. Private services on the other hand are based on
differentiation. These differences raise the question of whether
customer preferences for public services are homogeneous while
preferences for private services are heterogeneous. Builds on an
empirical study of 1,000 customers using either bus, train or tram in
and around the greater area of the capital of Norway. Discusses customer
(dis)satisfaction with public transportation services. Concludes by
claiming that individual customer preferences exist and that high
– and low‐frequency users of public transportation services have
different preferences. As a consequence, the industry has a low overall
customer satisfaction score. Implementing differentiated public services
will improve the satisfaction score, i.e. expected utility, and thereby
reduce the need for privatizing the industry.
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