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The impact of surge pricing on customer retention

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  • Huarng, Kun-Huang
  • Yu, Tiffany Hui-Kuang

Abstract

This study explores how satisfied customers are when they face surge pricing as well as how customer satisfaction affects customer retention. This study uses fuzzy set/Qualitative Comparative Analysis to generate relations and then qualitative analysis with structural associations to propagate the values and refine these relations. Both methods together generate proper relations for multi-layered problems. With data gathered from a group of executive MBA students in Taiwan, the empirical results show that loyal riders are more tolerable to surge pricing than non-loyal riders. Lastly, the evidence presents that customer satisfaction does not always positively affect customer retention.

Suggested Citation

  • Huarng, Kun-Huang & Yu, Tiffany Hui-Kuang, 2020. "The impact of surge pricing on customer retention," Journal of Business Research, Elsevier, vol. 120(C), pages 175-180.
    • Handle: RePEc:eee:jbrese:v:120:y:2020:i:c:p:175-180
    DOI: 10.1016/j.jbusres.2020.07.043
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    References listed on IDEAS

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    Cited by:

    1. Yu, Tiffany Hui-Kuang & Huarng, Kun-Huang & Lai, Yun Ting, 2021. "Configural analysis of innovation for exploring economic growth," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    2. Tóth, Zsófia & Nemkova, Ekaterina & Hizsák, Gábor & Naudé, Peter, 2022. "Social capital creation on professional sharing economy platforms: The problems of rating dependency and the non-transferability of social capital," Journal of Business Research, Elsevier, vol. 144(C), pages 450-460.

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