In the News

Customer satisfaction surveys used to combat possible market failure on the trains

Jonny Clark

29th January 2016

I blogged yesterday about the teenage money-saver who took a flight home via Berlin as it was cheaper than using a train. So, keeping with my theme for the week, here's the next bit of evidence that there is an attempt to keep railway operating market in line despite the lack of competition on routes.

The annual train customer satisfaction survey is now available. It doesn't make good reading for those of you in the South East of England but the headline news appears to show that general levels of satisfaction have increased (up to an average of 76% satisfaction from 73% in 2014). The survey acts as a method of informing customers and potential consumers - it acts as a sort of 'name and shame' activity to hopefully force train operators to perform better whilst informing customers about their likely level of satisfaction which may or may not make them seek an alternative to trains.

For A Level economic students, this is an example of how information can be used to counter the impact of lack of competition within the train industry. The question that they may wish to ask is 'how much impact would a survey of this nature have?'

Click here for an article from the Independent.

Click here to go to the customer satisfaction full report.

Jonny Clark

Jon Clark has been teaching economics and business studies for over 25 years primarily in the Further Education sector. Before joining tutor2u, he was a senior manager at South Cheshire College in Crewe.

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