Development of Customer Loyalty Model on Online Transportation Service: A Case Study in Indonesia

The impact of technology on public transport has led to a new online transportation service. Its emergence makes the competition increasingly competitive. Therefore, customer loyalty becomes an important aspect of winning the competition. This research analyzed the effect of customer service, servic...

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Main Authors: Budhi Prihartono, Karina Rizky Ismantia, Fidruzal Fahlevi
Format: Article
Language:English
Published: Jurusan Teknik Industri, Fakultas Teknik Universitas Muhammadiyah Malang 2023-03-01
Series:Jurnal Teknik Industri
Subjects:
Online Access:https://ejournal.umm.ac.id/index.php/industri/article/view/22533
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author Budhi Prihartono
Karina Rizky Ismantia
Fidruzal Fahlevi
author_facet Budhi Prihartono
Karina Rizky Ismantia
Fidruzal Fahlevi
author_sort Budhi Prihartono
collection DOAJ
description The impact of technology on public transport has led to a new online transportation service. Its emergence makes the competition increasingly competitive. Therefore, customer loyalty becomes an important aspect of winning the competition. This research analyzed the effect of customer service, service delivery, onboard experience, public image, service value, and customer satisfaction on customer loyalty to online transportation. 517 respondents were obtained and divided into two groups: captive rider and choice rider. Data processing is carried out using a multigroup SEM technique. The results showed that there was a significant moderation effect of the different characteristics of users. In the captive rider group, onboard experience and service value did not affect customer satisfaction, and service value did not affect customer loyalty. Customer satisfaction influenced customer loyalty, and the effect was more robust than the choice rider group. In the choice rider group, the public image did not affect customer satisfaction, but service value influenced customer loyalty. Factors proven to influence customer loyalty significantly can be developed by companies to improve their competitive advantage in an increasingly competitive market of online transportation services.
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spelling doaj.art-3fc70a14e71846beae531194fc19c8902024-03-05T04:34:33ZengJurusan Teknik Industri, Fakultas Teknik Universitas Muhammadiyah MalangJurnal Teknik Industri1978-14312527-41122023-03-0124111610.22219/JTIUMM.Vol24.No1.1-1620265Development of Customer Loyalty Model on Online Transportation Service: A Case Study in IndonesiaBudhi Prihartono0Karina Rizky Ismantia1Fidruzal Fahlevi2Institut Teknologi BandungInstitut Teknologi BandungInstitut Teknologi BandungThe impact of technology on public transport has led to a new online transportation service. Its emergence makes the competition increasingly competitive. Therefore, customer loyalty becomes an important aspect of winning the competition. This research analyzed the effect of customer service, service delivery, onboard experience, public image, service value, and customer satisfaction on customer loyalty to online transportation. 517 respondents were obtained and divided into two groups: captive rider and choice rider. Data processing is carried out using a multigroup SEM technique. The results showed that there was a significant moderation effect of the different characteristics of users. In the captive rider group, onboard experience and service value did not affect customer satisfaction, and service value did not affect customer loyalty. Customer satisfaction influenced customer loyalty, and the effect was more robust than the choice rider group. In the choice rider group, the public image did not affect customer satisfaction, but service value influenced customer loyalty. Factors proven to influence customer loyalty significantly can be developed by companies to improve their competitive advantage in an increasingly competitive market of online transportation services.https://ejournal.umm.ac.id/index.php/industri/article/view/22533customer loyaltycustomer satisfactionservice factorsonline transportationmultigroup sem
spellingShingle Budhi Prihartono
Karina Rizky Ismantia
Fidruzal Fahlevi
Development of Customer Loyalty Model on Online Transportation Service: A Case Study in Indonesia
Jurnal Teknik Industri
customer loyalty
customer satisfaction
service factors
online transportation
multigroup sem
title Development of Customer Loyalty Model on Online Transportation Service: A Case Study in Indonesia
title_full Development of Customer Loyalty Model on Online Transportation Service: A Case Study in Indonesia
title_fullStr Development of Customer Loyalty Model on Online Transportation Service: A Case Study in Indonesia
title_full_unstemmed Development of Customer Loyalty Model on Online Transportation Service: A Case Study in Indonesia
title_short Development of Customer Loyalty Model on Online Transportation Service: A Case Study in Indonesia
title_sort development of customer loyalty model on online transportation service a case study in indonesia
topic customer loyalty
customer satisfaction
service factors
online transportation
multigroup sem
url https://ejournal.umm.ac.id/index.php/industri/article/view/22533
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AT karinarizkyismantia developmentofcustomerloyaltymodelononlinetransportationserviceacasestudyinindonesia
AT fidruzalfahlevi developmentofcustomerloyaltymodelononlinetransportationserviceacasestudyinindonesia