Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This Chapter consist of local and foreign literature and studies. The researcher made use of various
relevant references on the current study, such as theses, dissertation, books, newspapers and web articles. These
reading materials used are fundamentals on expanding the knowledge of the researchers as regards with the topic.
These can also guide the researcher throughout the study by getting different ideas and viewpoints from other
researchers, and make further developments concerning the study, as possible.

PRICE

A value that will purchase a finite quantity, weight, or other measure of a good or service.
As the consideration given in exchange for transfer of ownership, price forms the essential basis of commercial
transactions. It may be fixed by a contract, left to be determined by an agreed upon formula at a future date, or
discovered or negotiated during the course of dealings between the parties involved.

In commerce, price is determined by what (1) a buyer is willing to pay, (2) a seller is willing to accept, and (3) the
competition is allowing to be charged. With product, promotion, and place of marketing mix, it is one of the
business variables over which organizations can exercise some degree of control.

It is a criminal offense to manipulate prices (see price fixing) in collusion with other suppliers, and to give a
misleading indication of price such as charging for items that are reasonably expected to be included in the
advertised, list, or quoted price.

Also called sale price and selling price.

Read more: http://www.businessdictionary.com/definition/price.html

The expenses involved in moving products or assets to a different place, which are often passed on to consumers.
For example, a business would generally incur a transportation cost if it needs to bring its products to retailers in
order to have them offered for sale to consumers.

Read more: http://www.businessdictionary.com/definition/transportation-cost.html

CONVINIENCE

The experience of transport systems users, in terms of comfort, reliability, safety and above all convenience, is
critical in determining demand for transport services, at least when there is a choice of alternative ways to travel.
Convenience is one of the strongest attractions of the private car for passenger transport. For users of public
transport, convenience is also clearly important but not always clearly defined and not often measured in
designing transport systems or monitoring their operating performance. In many situations, an increase in public
transport convenience reduces the unit costs of travel (euros/dollars per hour or cents per minute) and so provides
benefits equivalent to an increase in travel speed.

This report focuses on convenience and its importance to the user experience. It reviews operational definitions of
convenience, evidence for the willingness of users to pay for convenience and the use of indicators to assess and
improve the convenience of public transport, with a view to making it more effective and more competitive.

Read more: http://www.oecd.org/publications/valuing-convenience-in-public-transport-9789282107683-en.htm

This article is about the term "convenience". For other uses see Convenience Township, Pope County, Arkansas
and Convenience (horse)
Convenient procedures, products and services are those intended to increase ease in accessibility, save resources
(such as time, effort and energy) and decrease frustration. A modern convenience is a labor-saving device, service
or substance which make a task easier or more efficient than a traditional method. Convenience is a relative
concept, and depends on context. For example, automobiles were once considered a convenience, yet today are
regarded as a normal part of life.

Because differences in lifestyles around the world, the term is a relative term based upon the conveniences
previously available to a person or group. For instance, an American definition of 'modern convenience' is likely
different from that of an individual living in a developing country. Most of the time, the term 'modern
convenience' is used to express personal lifestyle and home life.

Read more: https://en.wikipedia.org/wiki/Convenience

SERVICE AND QUALITY

Service is an act or performance that one party can offers to another that is essentially intangible and does not
result in transfer of ownership (Philip Kotler and Others, Marketing Management, 13th Edition, Pearson) Service
quality can be defined as the difference between customer expectation for service performance prior to the
service encounter and their perceptions of the service received (Asubonteng et al., 1996). The SERVQUAL
Approach is most popular model used for evaluation of service quality developed by (Parasuraman et al., 1985,
1988). This model explains Customer’s Expectation*** and Customer’s Perception^^ with respect to service
quality. Five dimensions as per SERVIQUAL Model. 1. Reliability : The ability to perform promised service
dependably and accurately 2. Assurance: the knowledge and courtesy of employees and their ability to convey
trust and confidence 3. Tangibles: The appearance of physical facilities equipment's, personnel and communication
materials. 1. Empathy : The provision of caring, individualized attention to custom. 2. Responsiveness: The
willingness to help customers and to provide prompt service ***Expectations: What customers are looking for,
^^Perception : interpretation of actual service what they actually get.

Read more: https://www.slideshare.net/Narayan92/service-quality-53092721

An assessment of how well a delivered service conforms to the client's expectations. Service business operators
often assess the service quality provided to their customers in order to improve their service, to quickly identify
problems, and to better assess client satisfaction.

Read more: http://www.businessdictionary.com/definition/service-quality.html