The determinants of customer loyalty in the Indonesian ride-sharing services: offline vs online

Abstract

Purpose This study aims to analyze the effect of service quality on trust, satisfaction and loyalty by adopting two models, namely, conventional service quality model from Parasuraman and information systems (IS) success model from Delone and McLean. Design/methodology/approach Respondents of this study were users of shared-motorcycle services who filled out a complete questionnaire totaling 507. This research used a second-order structural equation model. All question items had quite high reliability and validity based on the result of confirmatory factor analysis with a value of average variance extracted and composite reliability which was higher than 0.70. The goodness of fit was quite good with the values x2/df = 2.493, incremental fit index = 0.921, Tucker-Lewis index = 0.917, comparative fit index = 0.921 and root-mean-square error of approximation = 0.054. Findings Online and offline ride-sharing services reveal a strong and positive influence on trust and satisfaction. Trust reveals a strong and positive influence on satisfaction and loyalty. Finally, satisfaction reveals a strong and positive influence on loyalty. The research in general shows that the quality of offline service is more influential than the quality of online service in the case of ride-sharing service provided by two companies in Indonesia. Research limitations/implications The sampling frame of the research was diverse, including students of various collages and junior high schools, various private company workers and government employees. So, the results cannot be generalized to all populations especially to all Indonesian customers. It is recommended to increase the number of samples by focusing on the community groups of customers of public motorbikes, so that these groups can be compared. Next, the research finds that both service quality based on IS and service quality models reveal a strong and positive influence on loyalty both directly and indirectly. Originality/value The research uses respondents who use motorcycle services both online and offline. The findings of the research are important for online and offline ride-sharing motorbike service providers. They have to maintain their excellent services to the customers.

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“…Thus, all indicators are also valid and meet measurement standards. Furthermore, to determine the reliability test, Composite Reliability (CR) the standard must be ≥ 0.70 and Cronbach's Alpha (CA) must be ≥ 0.70 (Kock, 2018). Based on table 3, Composite Reliability on all variables shows CR ≥ 0.70 and Cronbach's Alpha for all variables show CA ≥ 0.70.…”

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