Passenger satisfaction and loyalty for app-based ride-sharing services: through the tunnel of perceived quality and value for money

Abstract

PurposeThe purpose of this study is to investigate the passengers' perception of app or application-based ride-sharing service in Bangladesh. The research directly measures the passengers' perception of perceived quality and value for money of using app-based ride-sharing services in Bangladesh and how it impacts passengers' satisfaction. The study also measures the indirect relationship of perceived quality and value for money and passengers' loyalty through the mediating effects of passenger satisfaction in app-based ride-sharing services.Design/methodology/approachThe authors used an online self-administered survey questionnaire to collect data from the respondents who have experienced app-based ride-sharing services in Bangladesh. In this study, 400 questionnaires were distributed to the respondents online (Google form) and received 281 useful responses that give a 70.25% response rate. The survey data were analyzed based on construct validity, convergent validity and structural equation modeling by using Smart PLS 3.FindingsThe research findings indicate that perceived quality and value for money positively and significantly influence passengers' satisfaction. The passengers' satisfaction has a direct and significant relationship with passenger loyalty. The research findings also indicate that perceived quality and value for money have an indirect relationship with passenger loyalty through the mediating effect of passenger loyalty in app-based ride-sharing services.Practical implicationsBoth perceived quality and value for money have been the key drivers of passenger satisfaction and loyalty. Thus, the ride-sharing service providers should emphasize enhancing passenger value perception and quality service to reinforce passenger satisfaction and loyalty by increasing communication with the passengers about their apps. Besides, the service providers need to keep track of passengers' satisfaction levels and adopt necessary initiatives to ensure satisfied passengers toward loyalty.Originality/valueLimited studies have investigated the impacts of perceived quality and value for money on passenger satisfaction and loyalty to app-based rideshare service. It is a suitable time as the research findings will help ride-sharing service providers enhance their quality performance to compete healthily. Simultaneously, passengers can enjoy improved, and value-added services due to increasing competition among the app-based service providers. Regulators can also emphasize passenger quality services and the importance of money as a proposition while formulating policy and regulations toward the management of ride-sharing companies.

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“…(2021), who revealed a strong effect of core product quality on behavioral intentions, particularly for non-professional sports. Our findings are equivalent to other service environments recently presented in TQM research (Ahmed et al. , 2021).…”

“…This result is in line with previous sport studies (Howat et al, 1999;Murray and Howat, 2002;Theodorakis et al, 2014;Garc ıa-Fern andez et al, 2018) and Biscaia et al (2021), who revealed a strong effect of core product quality on behavioral intentions, particularly for non-professional sports. Our findings are equivalent to other service environments recently presented in TQM research (Ahmed et al, 2021). However, we probed this theme more deeply by analyzing the mediating role of identification with the tennis club.…”

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