The Effect of Service Quality and Trust on Customer Loyalty and Satisfaction: A Case Study of Online Taxi Customers in Indonesia
Keywords:
service quality, trust, customer satisfaction, customer loyaltyAbstract
Online taxis have begun to displace conventional public transportation. Dissatisfied with public transportation, users have switched to using online taxis, apparently due to poor service quality and low user trust in modes of public transportation. This research investigated the effect of service quality and trust on customer loyalty and satisfaction, a case study of online taxi customers in Cirebon, Indonesia. This research was conducted using quantitative survey methods. The sample size was 200 customers, and researchers employed judgment sampling and path analysis techniques. The statistical calculations suggested that service quality and customer trust had a positive and significant effect on customer satisfaction. Similarly, service quality had a positive and significant influence – and directly influenced – on customer loyalty. This study concluded that, partially, service quality and trust had a positive impact on customer satisfaction, and that customer loyalty was partly influenced by service quality, trust, and customer satisfaction. The main contribution of this study is the effect of service quality and trust on customer loyalty and satisfaction: a case study of online taxi customers in Cirebon, Indonesia.
References
Ahmed, I., Nawaz, M., Usman, A. and Shaukat, M. Z. (2010). “Impact of service quality on customer‟s satisfaction: Empirical evidence from telecom sector of Pakistan”, Interdisciplinary Journal of Contemporary Research in Business, Vol. 1 No. 12, pp. 98-113.
Auh, S., and Johnson, M. D. (2005). “Compatibility effects in evaluations of satisfaction and loyalty”, Journal of Economic Psychology, Vol. 26 No. 1, pp. 35-57. doi.org/10.1016/j.joep.2003.10.002.
Awan, H. , Siddiquei, A., Jabbar, A., Abrar, M. and Baig, S. (2015). “Internal marketing and customer loyalty: a dyadic analysis”, Journal of Service Science and Management, Vol. 8 No. 1, pp.216-228. doi: 10.4236/jssm.2015.82024.
Beneke, J., Hayworth, C., Hobson, R. and Mia, Z. (2012). “Examining the effect of retail service quality dimensions on customer satisfaction and loyalty: The case of the supermarket shopper”, Acta Commercii, Vol. 12 No. 1, pp. 27-43. doi 10.4102/ac.v12i1.129
Bitner, M. J. and Zeithaml, V. A. (2003). “Service marketing, Third Edition”. McGraw Hill, New Delhi.
Bodet, G. (2008). “Customer satisfaction and loyalty in service: Two concept, four construct several relationships”, Journal of Retailing and Consumer Service, Vol. 15 No. 3, pp. 156-162.
Feliks, A. B. K., and Panjaitan, H. (2014). “Analysis of customer loyalty through total quality service, customer relationship management and customer satisfaction”, International Journal of Evaluation and Research in Education, Vol. 3 No. 3, pp. 142-151.
Ghozali, I. (2011). “Aplikasi Analisis Multivariate Dengan Program SPSS 19. Cetakan kelima”, Badan Penerbit Universitas Diponegoro, Semarang.
Griffin, J. (1995). Customer Loyalty: How to Earn It, How to Keep It, Lexington Books, New York.
Gro ̈nroos, C. (2001). The perceived service quality concept – a mistake? Managing Service Quality, Vol. 11 No. 3, pp. 150-152.
Hafeez, S and Muhammad, B. (2012). “The impact of service quality, customer satisfaction and loyalty programs on customer‟s loyalty: Evidence from banking sector of Pakistan”, International Journal of Business and Social Science, Vol. 3 No. 16, [Special Issue – August 2012].
Hidayat, Saifullah, S. and Ishak, I. (2016). “Determinants of satisfaction, trust, and loyalty of Indonesian e-commerce customer”, International Journal of Economics and Management, Vol. 10 No. 1, pp. 151-166.
Iqbal, M. and Shah, A. B. A. (2016). The impact of customer satisfaction on customer loyalty: Mediating role of customer trust. Journal of Business Management and Economic Studies, Vol. 1 No. 1, pp. 1-15.
Kandampully, J. and Juwaheer. (2009). “Relationships and impact of service quality, perceived value, customer satisfaction, and image: an empirical study”, Service Industries Journal, Vol. 29 No. 2, pp. 111-125.
Khan, I. (2012). “Impact of cuastomer satisfaction and customer retention on customer loyalty”, International Journal of Scientific and Technology Research, Vol. 1 No. 2, pp. 106-110.
Kheng. L. L., Mahamad, O., Ramayah. T., and Mosahab, R. (2010). “The impact of service quality on customer loyalty: a study of banks in Penang, Malaysia”, International Journal of Marketing Studies, Vol. 2 No. 2, pp. 57-66.
Kishada, Z, M. E. M. and Wahab, N. A. (2015). “Influence of customer satisfaction, service quality, and trust on customer loyalty in Malaysian Islamic Banking”, International Journal of Business and Social Service, Vol. 6 No. 11, pp. 110-119.
Kotler, P. and Armstrong, G. (2009). Principle of Marketing. Pearson/Prentice Hall, New York.
Kotler, P. T. and Keller, K. L. (2009). “Marketing Management, 13th Edition”. Pearson, New York.
Minth, N. V. and Huan, N. (2016). “The relationship between service quality, customer satisfaction and customer loyalty: an investigation in Vietnamese retail banking sector”, Journal of Competitiveness, Vol. 8 No. 2, pp.103-116 https://doi.org/10.7441/joc.2016.02.08
Morgan, R. and Hunt, S. (1994). “The commitment-trust theory of relationship marketing”,
Journal of Marketing, Vol. 58 No. 3, pp. 20-38.
Mowen, J. C. and Minor, M. (1998). “Consumer Behavior”, Prentice-Hall, Texas.
Nejad, L. R., Firoozbakht, Z. and Taghipoor, A. (2014). “Service quality, relationship quality and customer loyalty: Case study of banking industry in Iran”, Open Journal of Social Sciences, Vol. 2 pp. 262-268. http://dx.doi.org/10.4236/jss.2014.
Nuchsarapringviriya, F., and Fadzil, S. (2015). “Service quality, customer satisfaction and customer loyalty in Thailand‟s audit firms”, International Journal of Management and Applied Science, Vol. 1 No. 5, pp. 34-40.
Osman, Z. (2013). “An empirical study of direct relationship of service quality, customer satisfaction and customer trust on customer loyalty in Malaysian rural tourism”, Journal of Tourism, Hospitality and Culinary Art, Vol. 5 No. 1, pp. 125–150.
Poku, K., Zakari, M., Soali, A. (2013). “Impact of service on customer loyalty in the hotel industry: An empirical study from Ghana”, International Review of Managemen and Busniness Research, Vol. 2 No. 2, pp. 600-609.
Rust, R.T. and Zahorik, A. J. (1993). “Customer satisfaction, customer retention, and market share”, Journal of Retailing, Vol. 69 pp. 193-215. http://dx.doi.org/10.1016/0022- 4359(93)90003-2
Sangadji, E. M. and Sopiah (2013). “Customer behavior: Perilaku Konsumen Dan Strategi Pemasaran, Jilid 2”, Erlangga, Jakarta.
Schnaars, S. P. (1991). “Marketing strategy: a customer-driven approach”, The Free Press, New York.
Setiawan, H. and Sayuti, A. J. (2017). “Effect of service quality, customer trust and corporate image on customer satisfaction and loyalty: An assessment of travel agencies customer
in South Sumatra Indonesia, “IOSR Journal of Business and Management”, Vol. 19 No. 5, pp. 31-40.
Soliha, E., Basiya, R., Rochmani, R., Darmawan, A. D., & Udin, U. (2019). “The effect of product quality and customer value on satisfaction and loyalty, “Transylvanian Review, 1(10).
Sugiyono. (2009). “Metode Penelitian Kuantitatif”, Alfabeta, Bandung,
Sumarwan, U. (2004). Perilaku Konsumen Teori dan Penerapannya dalam Pemasaran, Penerbit Ghalia Indonesia, Bogor.
Tjiptono, F. (2010). “Service Management: Mewujudkan Layanan Prima”, Andi Offset, Yogyakarta.
Tjiptono, F. (2015). “Strategi Pemasaran, Edisi 4”, Andi Offset, Yogyakarta.
Unidha, M. (2017). “The effect of service quality on trust and loyalty for giant customers in Malang city”, Arabian Journal of Business and Management Review, Vol. 7 No. 5, pp. 1-5.
Vesel, P., and Zabkar, V. (2010). “Comprehension of relationship quality in the retail environment”, Management Service Quality, Vol. 20 No. 3, pp. 213-235.
Widiyanto and Toro, J.S. (2012). “Analysis of influence of service quality and price on fairness with customer satisfaction customer loyalty, corporate image and variable trust as mediation: studies in consumer PO. Rosalia Indah Surakarta”, Fokus Manajerial, Vol. 11 No. 2, pp.195-212.
Wilkie, W. L. (2004). “Customer Behavior”, John Wiley and Sons, Inc., New York.
Yu, H. S., Zhang, J. J. Kim, D. H., Chen , K. K., Henderson, C. H., Min, S. D. and Huang, H. (2014). “Service quality, perceived value, customer satisfaction, and behavioral intention among fitness center members aged 60 years and over”, Social Behavior and Personality, Vol. 42 No. 5, pp. 757-768. http://dx.doi.org/10.2224/sbp.2014.42.5.757
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
