Price and Customer Satisfaction on Loyalty: An Empirical Study of Online Transportation in Indonesia


Authors : Andy Hamzah Permana

Volume/Issue : Volume 5 - 2020, Issue 3 - March

Google Scholar : https://goo.gl/DF9R4u

Scribd : https://bit.ly/2K92QAd

- Business of transportation Online is growing in Indonesia. The competition is very competitive. The aim of this study is to analyze the effect of price and customer satisfaction on customer loyalty at online transportation in Indonesia. Customer loyalty is required factor for long-term profitability. The responses collected were 102 completed questionnaires. The data were analyzed using Structural equation modeling (SEM) method using AMOS 24. Some items were removed to get an adequate goodness of fit through the measurement model using confirmatory factor analysis with verification of the modified index. Goodness of fit for the structural models of hypothesized model shows promising findings. Result of analysis show that price is related positively with customer satisfaction and customer satisfaction is related positively to customer loyalty. Customer satisfaction variables as an intervening variable on the price towards the customer loyalty. From the result of analysis, it can be recommended that the online transportation’s firm should pay attention to price in order to increase customer satisfaction and ultimately increases customer loyalty on all services issued by online transportation’s firm.

Keywords : Price, Customer Satisfaction, Customer Loyalty, SEM. I

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