Choosing a flat rate over a pay-per-use tariff for public transport: Do psychological factors matter?

We investigate the relationship between various psychological factors (taximeter effect, flexibility effect, cost control effect, pre-commitment effect), annual distance traveled, and public transport tariff preferences (pay-per-use vs. flat rate). While a pay-per-use tariff entails ticket prices depending on usage intensity, a flat rate involves an annual public transport subscription covering all journeys within a year. Drawing from a sample of 3,381 Swiss public transport customers utilizing either the pay-per-use option or holding a flat-rate subscription, a binomial logistic regression highlights that the number of passenger kilometers traveled (pkm) predominantly influences the choice of a flat rate. However, the examined psychological factors also significantly shape decision-making. Notably, these effects vary based on the quantity of the product consumed. Specifically, both the taximeter and cost-control effects tend to increase with pkm. Conducting a simulation using binomial logistic regression, we illustrate how different psychological factors are related to the likelihood of opting for a flat-rate subscription. The findings suggest that the level of importance of the psychological factors are relevant to predict the odds of selecting a flat-rate subscription. Hence, emphasizing product advantages in marketing communications and strategically adjusting product design to leverage these psychological factors emerge as effective strategies for enhancing sales promotion and fostering customer loyalty. These results offer insights into consumer psychology and decision-making within the transportation sector. The implications are particularly valuable for managers aiming to address barriers to public transport use. By strategically refining ticket product ranges, managers can actively contribute to reducing CO2 emissions through induced modal shifts.

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Publication Details

Journal
Transportation Research Part A Policy and Practice
Published
2024-10-11
DOI
https://doi.org/10.1016/j.tra.2024.104247
Citations
6
Primary Topic
Transportation Planning and Optimization
Type
article
Field-Weighted Citation Impact
4.10
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article

Choosing a flat rate over a pay-per-use tariff for public transport: Do psychological factors matter?

Widar von Arx, Christian Weibel, Lisa Dang
6 citations
Transportation Research Part A Policy and Practice
Transportation Planning and Optimization
4.10
article

Choosing a flat rate over a pay-per-use tariff for public transport: Do psychological factors matter?

Widar von Arx, Christian Weibel, Lisa Dang
article en
6 citations

Abstract

We investigate the relationship between various psychological factors (taximeter effect, flexibility effect, cost control effect, pre-commitment effect), annual distance traveled, and public transport tariff preferences (pay-per-use vs. flat rate). While a pay-per-use tariff entails ticket prices depending on usage intensity, a flat rate involves an annual public transport subscription covering all journeys within a year. Drawing from a sample of 3,381 Swiss public transport customers utilizing either the pay-per-use option or holding a flat-rate subscription, a binomial logistic regression highlights that the number of passenger kilometers traveled (pkm) predominantly influences the choice of a flat rate. However, the examined psychological factors also significantly shape decision-making. Notably, these effects vary based on the quantity of the product consumed. Specifically, both the taximeter and cost-control effects tend to increase with pkm. Conducting a simulation using binomial logistic regression, we illustrate how different psychological factors are related to the likelihood of opting for a flat-rate subscription. The findings suggest that the level of importance of the psychological factors are relevant to predict the odds of selecting a flat-rate subscription. Hence, emphasizing product advantages in marketing communications and strategically adjusting product design to leverage these psychological factors emerge as effective strategies for enhancing sales promotion and fostering customer loyalty. These results offer insights into consumer psychology and decision-making within the transportation sector. The implications are particularly valuable for managers aiming to address barriers to public transport use. By strategically refining ticket product ranges, managers can actively contribute to reducing CO2 emissions through induced modal shifts.

Transportation Research Part A Policy and PracticeVol. 190
Lucerne University of Applied Sciences and Arts (CH)
Decent work and economic growth
Openalex Percentile: Top 7%
Transportation Planning and Optimization
4.10
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