IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v134y2020icp96-112.html
   My bibliography  Save this article

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

Author

Listed:
  • Nguyen-Phuoc, Duy Quy
  • Su, Diep Ngoc
  • Tran, Phuong Thi Kim
  • Le, Diem-Trinh Thi
  • Johnson, Lester W.

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.

Suggested Citation

  • Nguyen-Phuoc, Duy Quy & Su, Diep Ngoc & Tran, Phuong Thi Kim & Le, Diem-Trinh Thi & Johnson, Lester W., 2020. "Factors influencing customer's loyalty towards ride-hailing taxi services – A case study of Vietnam," Transportation Research Part A: Policy and Practice, Elsevier, vol. 134(C), pages 96-112.
    • Handle: RePEc:eee:transa:v:134:y:2020:i:c:p:96-112
    DOI: 10.1016/j.tra.2020.02.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856419303131
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2020.02.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yuksel, Atila & Yuksel, Fisun & Bilim, Yasin, 2010. "Destination attachment: Effects on customer satisfaction and cognitive, affective and conative loyalty," Tourism Management, Elsevier, vol. 31(2), pages 274-284.
    2. Nguyen-Phuoc, Duy Quy & Nguyen, Ha Anh & De Gruyter, Chris & Su, Diep Ngoc & Nguyen, Vinh Hoang, 2019. "Exploring the prevalence and factors associated with self-reported traffic crashes among app-based motorcycle taxis in Vietnam," Transport Policy, Elsevier, vol. 81(C), pages 68-74.
    3. William Jen & Rungting Tu & Tim Lu, 2011. "Managing passenger behavioral intention: an integrated framework for service quality, satisfaction, perceived value, and switching barriers," Transportation, Springer, vol. 38(2), pages 321-342, March.
    4. William H. DeLone & Ephraim R. McLean, 1992. "Information Systems Success: The Quest for the Dependent Variable," Information Systems Research, INFORMS, vol. 3(1), pages 60-95, March.
    5. Shaaban, Khaled & Kim, Inhi, 2016. "Assessment of the taxi service in Doha," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 223-235.
    6. Oliver, Richard L, 1993. "Cognitive, Affective, and Attribute BAses of the Satisfaction Response," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(3), pages 418-430, December.
    7. Lai, Wen-Tai & Chen, Ching-Fu, 2011. "Behavioral intentions of public transit passengers--The roles of service quality, perceived value, satisfaction and involvement," Transport Policy, Elsevier, vol. 18(2), pages 318-325, March.
    8. Medi YARMEN & Sik SUMAEDI, 2016. "Perceived Service Quality of Youth Public Transport Passengers," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 11(1), pages 99-111, March.
    9. Clewlow, Regina R. & Mishra, Gouri S., 2017. "Disruptive Transportation: The Adoption, Utilization, and Impacts of Ride-Hailing in the United States," Institute of Transportation Studies, Working Paper Series qt82w2z91j, Institute of Transportation Studies, UC Davis.
    10. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    11. James E. Bailey & Sammy W. Pearson, 1983. "Development of a Tool for Measuring and Analyzing Computer User Satisfaction," Management Science, INFORMS, vol. 29(5), pages 530-545, May.
    12. van Lierop, Dea & El-Geneidy, Ahmed, 2016. "Enjoying loyalty: The relationship between service quality, customer satisfaction, and behavioral intentions in public transit," Research in Transportation Economics, Elsevier, vol. 59(C), pages 50-59.
    13. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    14. Chen, Ching-Fu, 2008. "Investigating structural relationships between service quality, perceived value, satisfaction, and behavioral intentions for air passengers: Evidence from Taiwan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(4), pages 709-717, May.
    15. Ehab I. Diab & Madhav G. Badami & Ahmed M. El-Geneidy, 2015. "Bus Transit Service Reliability and Improvement Strategies: Integrating the Perspectives of Passengers and Transit Agencies in North America," Transport Reviews, Taylor & Francis Journals, vol. 35(3), pages 292-328, May.
    16. de Oña, Juan & de Oña, Rocío & Eboli, Laura & Mazzulla, Gabriella, 2016. "Index numbers for monitoring transit service quality," Transportation Research Part A: Policy and Practice, Elsevier, vol. 84(C), pages 18-30.
    17. Dea Lierop & Ahmed El-Geneidy, 2018. "Is having a positive image of public transit associated with travel satisfaction and continued transit usage? An exploratory study of bus transit," Public Transport, Springer, vol. 10(2), pages 241-256, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammadbashir Sedighi & Hamideh Parsaeiyan & Yashar Araghi, 2021. "An Empirical Study of Intention to Continue Using of Digital Ride-hailing Platforms," The Review of Socionetwork Strategies, Springer, vol. 15(2), pages 489-515, November.
    2. Kumar, Akshay & Gupta, Akshay & Parida, Manoranjan & Chauhan, Vivek, 2022. "Service quality assessment of ride-sourcing services: A distinction between ride-hailing and ride-sharing services," Transport Policy, Elsevier, vol. 127(C), pages 61-79.
    3. Nguyen-Phuoc, Duy Quy & Su, Diep Ngoc & Nguyen, Minh Hieu & Vo, Nguyen S. & Oviedo-Trespalacios, Oscar, 2022. "Factors influencing intention to use on-demand shared ride-hailing services in Vietnam: risk, cost or sustainability?," Journal of Transport Geography, Elsevier, vol. 99(C).
    4. Quy Nguyen-Phuoc, Duy & An Ngoc Nguyen, Nguyen & Nguyen, Minh Hieu & Ngoc Thi Nguyen, Ly & Oviedo-Trespalacios, Oscar, 2022. "Factors influencing road safety compliance among food delivery riders: An extension of the job demands-resources (JD-R) model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 541-556.
    5. Son, Dong-Hoon, 2023. "On-demand ride-sourcing markets with cryptocurrency-based fare-reward scheme," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    6. Zheng, Yunhan & Meredith-Karam, Patrick & Stewart, Anson & Kong, Hui & Zhao, Jinhua, 2023. "Impacts of congestion pricing on ride-hailing ridership: Evidence from Chicago," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    7. Tuan, Vu Anh & Van Truong, Nguyen & Tetsuo, Shimizu & An, Nguyen Ngoc, 2022. "Public transport service quality: Policy prioritization strategy in the importance-performance analysis and the three-factor theory frameworks," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 118-134.
    8. de Oña, Juan, 2020. "The role of involvement with public transport in the relationship between service quality, satisfaction and behavioral intentions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 296-318.
    9. Nguyen-Phuoc, Duy Q. & Zhou, Meng & Hong Chua, Ming & Romano Alho, André & Oh, Simon & Seshadri, Ravi & Le, Diem-Trinh, 2023. "Examining the effects of Automated Mobility-on-Demand services on public transport systems using an agent-based simulation approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    10. Peng, Zixuan & Shan, Wenxuan & Zhu, Xiaoning & Yu, Bin, 2022. "Many-to-one stable matching for taxi-sharing service with selfish players," Transportation Research Part A: Policy and Practice, Elsevier, vol. 160(C), pages 255-279.
    11. Chen, Xian & Bai, Shuotian & Wei, Yongqin & Zhao, Yanhui & Yan, Peng & Jiang, Hai, 2023. "Passenger engagement dynamics in ride-hailing services: A heterogeneous hidden Markov approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    12. Quy Nguyen-Phuoc, Duy & Nguyen, Teron & Ngoc Su, Diep & Thi Le, Phuong & Oviedo-Trespalacios, Oscar, 2022. "How do social cues from other passengers affect word-of-mouth and intention to continue using bus services? A second-order SEM approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 158(C), pages 302-320.
    13. de Oña, Juan, 2021. "Understanding the mediator role of satisfaction in public transport: A cross-country analysis," Transport Policy, Elsevier, vol. 100(C), pages 129-149.
    14. Muhamad Rizki & Tri Basuki Joewono & Dimas Bayu Endrayana Dharmowijoyo & Dwi Prasetyanto, 2021. "The Effects of On- and Before- Journey Advantages Using Ride-Sourcing in Indonesia," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    15. Seojin Lee & Woojin Lee & Christine A. Vogt & Ying Zhang, 2021. "A comparative analysis of factors influencing millennial travellers’ intentions to use ride-hailing," Information Technology & Tourism, Springer, vol. 23(2), pages 133-157, June.
    16. Sun, Shichao & Xu, Lingyu & Yao, Yukun & Duan, Zhengyu, 2021. "Investigating the determinants to retain spurious-loyalty passengers: A data-fusion based approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 70-83.
    17. Nguyen-Phuoc, Duy Q. & Phuong Tran, Anh Thi & Nguyen, Tiep Van & Le, Phuong Thi & Su, Diep Ngoc, 2021. "Investigating the complexity of perceived service quality and perceived safety and security in building loyalty among bus passengers in Vietnam – A PLS-SEM approach," Transport Policy, Elsevier, vol. 101(C), pages 162-173.
    18. Nguyen-Phuoc, Duy Quy & Vo, Nguyen S. & Su, Diep Ngoc & Nguyen, Vinh Hoang & Oviedo-Trespalacios, Oscar, 2021. "What makes passengers continue using and talking positively about ride-hailing services? The role of the booking app and post-booking service quality," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 367-384.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diep Ngoc Su & Duy Quy Nguyen-Phuoc & Lester W. Johnson, 2021. "Effects of perceived safety, involvement and perceived service quality on loyalty intention among ride-sourcing passengers," Transportation, Springer, vol. 48(1), pages 369-393, February.
    2. Nguyen-Phuoc, Duy Quy & Vo, Nguyen S. & Su, Diep Ngoc & Nguyen, Vinh Hoang & Oviedo-Trespalacios, Oscar, 2021. "What makes passengers continue using and talking positively about ride-hailing services? The role of the booking app and post-booking service quality," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 367-384.
    3. Nguyen-Phuoc, Duy Q. & Phuong Tran, Anh Thi & Nguyen, Tiep Van & Le, Phuong Thi & Su, Diep Ngoc, 2021. "Investigating the complexity of perceived service quality and perceived safety and security in building loyalty among bus passengers in Vietnam – A PLS-SEM approach," Transport Policy, Elsevier, vol. 101(C), pages 162-173.
    4. Quy Nguyen-Phuoc, Duy & Nguyen, Teron & Ngoc Su, Diep & Thi Le, Phuong & Oviedo-Trespalacios, Oscar, 2022. "How do social cues from other passengers affect word-of-mouth and intention to continue using bus services? A second-order SEM approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 158(C), pages 302-320.
    5. Mandhani, Jyoti & Nayak, Jogendra Kumar & Parida, Manoranjan, 2020. "Interrelationships among service quality factors of Metro Rail Transit System: An integrated Bayesian networks and PLS-SEM approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 140(C), pages 320-336.
    6. de Oña, Juan, 2020. "The role of involvement with public transport in the relationship between service quality, satisfaction and behavioral intentions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 296-318.
    7. Nguyen-Phuoc, Duy Quy & Su, Diep Ngoc & Nguyen, Minh Hieu & Vo, Nguyen S. & Oviedo-Trespalacios, Oscar, 2022. "Factors influencing intention to use on-demand shared ride-hailing services in Vietnam: risk, cost or sustainability?," Journal of Transport Geography, Elsevier, vol. 99(C).
    8. Thorsten Knauer & Nicole Nikiforow & Sebastian Wagener, 2020. "Determinants of information system quality and data quality in management accounting," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(1), pages 97-121, April.
    9. Sun, Shichao & Xu, Lingyu & Yao, Yukun & Duan, Zhengyu, 2021. "Investigating the determinants to retain spurious-loyalty passengers: A data-fusion based approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 70-83.
    10. de Oña, Juan, 2021. "Understanding the mediator role of satisfaction in public transport: A cross-country analysis," Transport Policy, Elsevier, vol. 100(C), pages 129-149.
    11. Tri Basuki Joewono & Ariel Matthew & Muhamad Rizki, 2021. "Loyalty of Paratransit Users in the Era of Competition with Ride Sourcing," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    12. Esmailpour, Javad & Aghabayk, Kayvan & Aghajanzadeh, Mohammad & De Gruyter, Chris, 2022. "Has COVID-19 changed our loyalty towards public transport? Understanding the moderating role of the pandemic in the relationship between service quality, customer satisfaction and loyalty," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 80-103.
    13. Machado-León, José Luis & de Oña, Rocío & de Oña, Juan, 2016. "The role of involvement in regards to public transit riders' perceptions of the service," Transport Policy, Elsevier, vol. 48(C), pages 34-44.
    14. Juan de Oña & Rocio de Oña, 2015. "Quality of Service in Public Transport Based on Customer Satisfaction Surveys: A Review and Assessment of Methodological Approaches," Transportation Science, INFORMS, vol. 49(3), pages 605-622, August.
    15. Prajitmutita, Lyn Manassannan & Perényi, à ron & Prentice, Catherine, 2016. "Quality, Value? – Insights into Medical Tourists’ Attitudes and Behaviors," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 207-216.
    16. Ahmad Nazrul Hakimi Ibrahim & Muhamad Nazri Borhan & Muhamad Razuhanafi Mat Yazid & Sitti Asmah Hassan & Ahmad Firdhaus Arham & Sharizal Hashim, 2023. "Modelling of Passenger Satisfaction and Reuse Intention with Monorail Services in Kuala Lumpur, Malaysia: A Hybrid SEM-ANN Approach," Mathematics, MDPI, vol. 11(15), pages 1-21, August.
    17. Ahmad H. Alomari & Taisir S. Khedaywi & Asalah A. Jadah & Abdel Rahman O. Marian, 2022. "Evaluation of Public Transport among University Commuters in Rural Areas," Sustainability, MDPI, vol. 15(1), pages 1-32, December.
    18. Sun, Shichao & Duan, Zhengyu, 2019. "Modeling passengers’ loyalty to public transit in a two-dimensional framework: A case study in Xiamen, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 295-309.
    19. Mu-Chen Chen & Chia-Lin Hsu & Mu-Ming Chen, 2019. "How Transportation Service Quality Drives Public Attitude and Image of a Sustainable City: Satisfaction as A Mediator and Involvement as A Moderator," Sustainability, MDPI, vol. 11(23), pages 1-18, December.
    20. Hadziroh Ibrahim & Nur Zahiyah Othman, 2014. "The Influence of Techno stress and Organizational-Is Related Support on User Satisfaction in Government Organizations: A Proposed Model and Literature Review," Information Management and Business Review, AMH International, vol. 6(2), pages 63-71.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:134:y:2020:i:c:p:96-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.