Factors Affecting Customer Satisfaction in Mobile App-Based Taxi Services

Abstract

With the technology revolution, studying about customer satisfaction has been a major concern for the companies in highly competitive industries. Transportation industry is not an exception, especially, the mobile app-based taxi industry in past few years with the increased usage of mobile applications. A good customer base for a company ensures the long-term survival and competitiveness in the market. Achieving customer satisfaction is the only way to gain and retain a good customer base for the company. Therefore, focusing on the factors affecting the customer satisfaction is important to gain competitive advantage and to become the leader in the industry. Though there were some studies done in this domain, there was a lack of research in relation to mobile app-based taxi service in the Sri Lankan context. Thus, the purpose of this study was to identify the factors affecting customer satisfaction in mobile app-based taxi services and to identify their impact. The research model and the hypotheses for the study were derived based on a comprehensive review of literature. The study followed a positivistic approach with the quantitative method. Convenience sampling method was used due to the time constraint of this research. An online questionnaire survey was administered to collect data for this study. Data analysis was done using structural equation modelling (PLS-SEM). The model was tested by collecting data from hundred mobile app-based taxi users in the Colombo District. Reliability and validity of the measurement instrument were established. Price, Trust and Coupon Redemption had significant effects on Customer Satisfaction in mobile app-based taxi services. The findings of this study provided implications for policy makers and mobile app-based taxi service companies.