The Effect of Service Quality and Price on Consumer Loyalty Through Consumer Satisfaction on Goride Ride Hailing Service

Abstract

Congestion will continue to occur with the increasing number of motorized vehicles, but with the development of technology, various innovations to reduce congestion have emerged, one of which is ride hailing. However, it cannot be denied that competition between ride hailing companies is getting tighter so that companies must think about how to maintain and increase customer satisfaction and loyalty, one of which is by looking at service quality and price factors. This study set out to ascertain the impact of pricing and service quality on consumer fulfillment and loyalty, with a focus on Bandung City students who utilize GoRide ride-hailing services. Quantitative techniques with descriptive causality are employed in this study. 135 students in Bandung City were used as the sample population, and the nonprobability sampling technique using purposive sampling types was used to conduct the sampling. Partial Least Square (PLS) - Structural Equation Modeling (SEM) with SmartPLS 3.2.9 application being the data analysis method employed. The study's findings indicate that customer satisfaction is significantly impacted by the quality of the services provided. The impact of cost on customer satisfaction is noteworthy. Customer loyalty is not significantly impacted by service quality. Customer loyalty is significantly impacted by customer satisfaction. Through client happiness, service quality has a major impact on customer loyalty. Through client happiness, price has a big impact on consumer loyalty. Keywords-service quality, price, consumer loyalty, consumer satisfaction