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)