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

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  • 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
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    20. Wang, Zhiqi & Zhang, Yufeng & Jia, Bin & Gao, Ziyou, 2024. "Comparative Analysis of Usage Patterns and Underlying Determinants for Ride-hailing and Traditional Taxi Services: A Chicago Case Study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 179(C).
    21. 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.
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