E-Service Quality and Price to Build Online Transportation Loyalty in Indonesia

Abstract

Objective - The development of the online transportation industry has led to increasing competition. In Indonesia, Gojek and Grab are competitors in their industry. Each company strives to maintain the loyalty and satisfaction of its customers by setting up procedures such as e-service quality programs and pricing policies. Under these programs, consumers have different levels of satisfaction and loyalty for each type of online vehicle. This study aims to measure the influence of e-service quality and price to build loyalty through customer satisfaction Gojek and Grab. Methodology/Technique - The type of the study is verification. An explanatory survey with simple random sampling technique is used. The sample includes 200 respondents from both online transportation operator's customers. The data of this study employs a path analysis with SPSS 25.0 and AMOS. Findings - The results show that there is a positive influence between e-service quality and price to build loyalty through each Gojek and Grab customers' satisfaction. Thus, we can say that Gojek and Grab consumers are quite satisfied with the quality and price so they pay with loyalty. Novelty – Good management in service companies will serve customers with great satisfaction, thus affirming the rightness of consumer loyalty to the company. Therefore, prices will be appropriate in addition to quality electronic services. This is because the relationship between the two can produce positive impacts such as consumer loyalty with mediation through satisfaction. Our study has several contributions, including adding insight into e-service studies, price, customers' satisfaction, and loyalty, especially in the online transportation industry. Type of Paper - Empirical Keywords: E-Service Quality, Price, Loyalty, Customer Satisfaction, Online Transportation. JEL Classification: M20, M21.

Investigating the Determinants of App-based Land Transportation User Loyalty in Jakarta Using PLS-SEM Framework

“…This supports the research conducted by Leninkumar (2016) where responsiveness is not significant to user loyalty. However, this result contrasts with the research conducted by Hendrayati et al, (2020) where responsiveness which is part of service quality is still an important thing that affects the loyalty of users of application-based transportation modes. Further results in this study explain that service adjustment factors made by service providers has no effect user loyalty.…”

“…This also explains that with the existence of social media, the speed in responding to customer complaints on applications is less attractive to customers. This result is interesting and contradicts Hendrayati et al, (2020) which explains that in an effort to shape the behaviour of satisfied users, responsiveness in responding to customer complaints is a key factor. In other studies Rana, Osman, & Othman (2015) and Carolyn & Andaleeb (2006) explained that responsiveness affects consumer attitudes to take further action.…”

“…Apart from being influenced by price, factors such as ease of use of the application, user-friendly appearance of the application, fast response, and adjustments to other service offerings also affect user tastes. Although in several research studies it is clear that one of the keys to loyalty lies in providing quality for customer satisfaction (Azzahro et al, 2020;Hendrayati, Askolani, Achyarsyah, Sudrajat, & Syahidah, 2020;Siangta, Solichin, & Hendriana, 2020), however service providers still find it difficult to maintain the quality of these services consistently. Therefore, the attitude of users to persist in using an application-based transportation mode brand will tend to change.…”

Faktor Tampilan dan Penyesuaian Aplikasi pada Kualitas Layanan dalam Menganalisis Loyalitas Pengguna Transportasi Daring

“…Hal ini dapat dibentuk dengan melakukan integrasi optimal dari aspek teknologi, sumber daya manusia yang terlibat, dan proses bisnis (Shukla & Pattnaik, 2019;H Hendrayati & Syahidah, 2018). Loyalitas merupakan refleksi dari perilaku individu untuk melakukan pembelian ulang produk (Hendrayati et al, 2020). Keinginan untuk pembelian ulang dapat didefinisikan sebagai pembelian produk untuk yang kedua kali dan seterusnya baik untuk produk yang sama maupun variasi/berbeda (Zeng et al, 2009).…”

“…Berdasarkan hasil inimaka dapat dijelaskan bahwa bahwa Hipotesis 3 diterima. Hasil ini mendukung penelitian yang dilakukan oleh Heny Hendrayati et al, (2020), Shukla & Pattnaik (2019), dan Zehir & Narcıkara, (2016).…”