Low passenger volume is the main reason why Kaohsiung Rapid Transit Corporation (KRTC) in Taiwan registered such big defi cits and demanded to be settled. Attracting more passengers having a trip on the KRTC trains seems to be a critical, but actually retaining customers is more important in the viewpoint of marketing management; one major way to retain customers is to delight them and understanding whether customers are delighted or not is required. This study uses refi ned Kano's models to understand Kaohsiung Rapid Transit System (KRTS) users' service quality requirements for improving service quality from psychological viewpoints and then uses analysis of variance (ANOVA) to identify significant demographic variables for market segmentation. With the application of refi ned Kano's model and ANOVA technique, management can accurately understand the diff erent preferences and requirements among diff erent segments and make diverse quality management or marketing management strategies to retain and then attract more KRTS users.
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