Factors influencing customer's loyalty towards ride-hailing taxi services – A case study of Vietnam

Duy Quy Nguyen-Phuoc, Diep Su, Phuong Tran, Diem-Trinh Thi Le and Lester W. Johnson

Transportation Research Part A: Policy and Practice, 2020, vol. 134, issue C, 96-112

Abstract: With the emergence of new transport technologies, ride-hailing services have become increasingly popular around the world in recent years. Particularly in developing countries where public transport (PT) systems are normally poor due to the lack of investment, these services have become more prevalent as they are considered as a form of PT mode. Thus, understanding the loyalty intention of ride-hailing passengers is important as it is seen to be a prime determinant of long-term financial performance. Additionally, the operation of these services can increase urban mobility, which can lead to an increase in local spending and government revenue. The aim of this study is to understand better the complexities of factors influencing ride-hailing passenger satisfaction and loyalty intention. The data collected by surveying 559 ride-hailing passengers in Vietnam was analysed using a Partial Least Squares - Structural Equation Modelling (PLS-SEM) approach. The findings show that three factors including perceived benefits of the booking app, perceived sales promotion and perceived service quality have direct influences on passenger satisfaction and loyalty in which perceived service quality is more important than the other factors. Insight into the perceptions of passengers provides ride-hailing firms and even their competitors (traditional taxi services) with managerial implications aiming to maintain and increase patronage.

Keywords: Ride-hailing; Loyalty; Satisfaction; Booking app; Sales promotion; Service quality (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0965856419303131
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:134:y:2020:i:c:p:96-112

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.tra.2020.02.008

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Catherine Liu ().