Measuring Customer Satisfaction and Its relationship ...

[Pages:4]International Journal of Engineering & Technology IJET-IJENS Vol:15 No:01

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Measuring Customer Satisfaction and Its relationship

Towards Taxi's Service Quality Around Capital City

Jakarta

M. Dachyar and A. Rusydina

Industrial Engineering Dept., University of Indonesia, Depok 16424, Indonesia E-mail: mdachyar@

Abstract-- The high demand of urban transportion services has become an opportunity for companies to gain customers. The important key for company in maintaining and improving customer relationship is customer satisfaction. The samples of this research are 1200 taxi users of BB taxi, EX taxi, and TX taxi which rush ini around Jakarta City. Structural equation modeling is used for data processing and analyzing. The result of this study indicates the company image has the strongest impact. Thus, companies needs to consider company image and other several significant factors to increase customer satisfaction and earn customer loyalty.

Index Term-- Customer Satisfaction, Structural Equation Modeling, Transportation, Quality Service

I. INTRODUCTION Indonesia is one among many countries that has rapid population growth. Transportation is a necessity due to the derivative activities supporting the development of political, economic, social and etc. Due to the fact, the development of transportation in Indonesia are running slow compared to other neighbour countries. It is being considered as the lower perceived quality. There are various types of public transportation in Indonesia, Taxi is one of them.

In Indonesia, taxi's service industry are grow very fast, especially in the large cities, business centers, tourist attractions, and etc. Potential revenue on ground transportation industry, especially taxi is expected to rise around 54.54% in the year of 2011-2015 (, 2011). In 2011 the number of taxi users have reach to 338 thousand of passengers. It is expected to grow to an enormous amount; 18.2% by the year 2012 until 2016 (General Directorate of Land Transportation in , 2012). As can be seen in Fig 1.

The prospective of business development has become more competitive. Company expected the customers to be maintained for long time period, by improving quality of their services and achieved customer satisfaction. According to Parasuraman et. al. service quality is how far the different between performance and expectation. (Parasuraman, Zeithmal and Berry, 1998). Customer satisfaction can be defined as one's feelings after comparing the performance or results of perceived customer with their expectations (Armstrong, 1996). In previous research about customer satisfaction in different industries has been studied by many researchers (Dachyar, 2012; Hasoloan, 2012; Lee, 2005). Consumers are the only can judge the quality of services. The

results is a consequences of factors such as complaints or customer loyalty (Johnson et. al., 2001). Nowadays, companies have relies on committed customer often brings greater profits for companies by word of mouth, customer satisfaction, and loyalty. Customer loyalty is the use / repeat purchases where arises when buy what is offered repeatedly (Jacoby, 1971).

20000

15000

10000

5000

0

Fig. 1. Taxi summary in Around Jakarta based on fleet >500 (Source : General Directorate of Land Transportation, 2012)

II. METHODOLOGY Structural Equation Modeling (SEM) is a method are used for this study. SEM is a general term that has been used to describe a large number of statistical models which were used to evaluate the validity of substantive theories with empirical data. Statistically, an extension of factor analysis, and regression. SEM requires confirmation (hypothesis testing) to establish the relationship between several variables (Lei, 2007). There are basic steps that involve on creation SEM ; specification model , identification model, estimation model, evaluation model, and respesification model (Kline, 2011). Initial model can be obtained from literature (Canming, 2011; Tenenhaus, 2008) and based on American Customer Satisfaction Index (ACSI) model, which is adjusted with the condition in Indonesia by using expert validation. Customer satisfaction model is a model based on the assumption of several factors such as, customer expectation, company image, customer trust, perceived quality, perceived value, customer satisfaction, customer complaint, and customer loyalty. This study uses IBM SPSS AMOS 21 software which aims to get the factors that influence customer satisfaction in all three

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Taxi company rush in around Jakarta city; are Blue Bird taxi, Express taxi and Taxiku taxi.

This study used primary data by questionnaire. Respondents in this study is the BB taxi customers, EX taxi, and TX taxi for customers using minimum twice in one month, the sample size was 1200 respondents. The sample size adjusted to the analytical model used in structural equation modeling (SEM). The sample size using maximum

estimation model (MLE) around 100-200 samples (Hair et. al.,2006), or with a minimum sample of five times the number of questions analyzed. In this study the questionnaire contain 39 observed variables, whereas the model in this research is path diagram depicted in Fig 2 with the hypothesis. The minimum number of samples required is 195 respondents, so the sample in this study was considered sufficient.

PQ1

PQ2

PQ3

PERCEIVED

PQ4

QUALITY

PQ5

PQ6

CS1 CS2

CC1

CC2

CUSTOMER

COMPLAINTS

CC3

CS3

CC4

H5

CS4

CS5

H12 H9

H4

PERCEIVED

H6

VALUE

CE1

PV5

CE2

H3

PV1

H15

PV4

CUSTOMER

CE3

EXPECTATION

PV2

CE4

PV3 H7

CUSTOMER

CL1

SATISFACTION

H13

CL2

CUSTOMER

LOYALTY

CL3

CL4

CL5

CE5

H11

H2 H1

H8 H14

COMPANY IMAGE

CUSTOMER

H10

TRUST

CI1

CI5

CI3

CT1 CT3

CI2

CI4

CT4 CT2

Fig. 2. Hypothesis model of customer satisfaction in Taxi Industry

There are fifteen hypothesis to be tested in this study as follows : H1 : Company image has a positive effect on customer

expectation H2 : Customer expectation has a positive effect on

perceived quality H3 : Customer expectation has a positive effect on

perceived value H4 : Perceived quality has a positive effect on perceived

value H5 : Perceived quality has a positive effect on customer

satisfaction H6 : Perceived value has a positive effect on customer

satisfaction H7 : Company image has a positive effect on customer

satisfaction H8 : Customer satisfaction has a pssitive effect on

customer complaint H9 : Customer complaint has a positive effect on

customer trust H10 : Company image has a positive effect on customer

trust

H11 : Company image has a positive effect on customer loyalty

H12 : Customer complaint has a positive effect on customer loyalty

H13 : Customer satisfaction has a positive effect on customer loyalty

H14 : Customer trust has a positive effect on customer loyalty

H15 : Customer expectation has a positive effect on customer satisfaction

III. RESULT AND DISCUSSION Modification of Goodness of Fit Model The goodness of fit of this model aims to find out how the goodness of fit between model that are used and data existed. Fit Indices which will be used to assess the suitability of the model, this include TLI, CFI and RMSEA (Schreiber et. al., 2006) as well as CMIN / Df (Hooper, Coughlan, & Mullen, 2008). Suitability index models after modification, parameters reached the standard model of goodness of fit. Respectively are BB (0.902, 0.910, 0.058, 2.355); EX (0900, 0912, 0057, 2287); TX (0.900, 0.915, 0.052, 2.072).

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Comparison Result Table 1 shows the summary comparison of the hypothesis testing between BB Taxi, EX taxi and TX taxi.

Table I Comparison Result

Table II Direct, Indirect, and Total Effects between Latent Variable Model for

Customer Satisfaction and Customer Loyalty in the BB Taxi

Customer_ Satisfaction Direct Effect Indirect Effect Total Effect

Company_ Image

0.755 -0.028* 0.727

Customer_ Perceived_ Perceived_ Expectation Quality Value

0.145 -0.262* 0.464 0.033* 0.300 0.000 0.178 0.038* 0.464

Customer_ Complaint

Customer_ Trust

Customer_

Loyalty

Direct

0.589 0.000 0.000 0.000 -0.042* 0.215

Effect

Indirect

0.123 0.000

0.000 0.000 0.059* 0.000

Effect

Total Effect 0.712 0.000 0.000 0.000 0.017* 0.215

The structural model in this research, shows the differentiation between hypothesis that is accepted and rejected, 13 hypothesis are accepted for BB Taxi, 12 hypothesis are accepted for express taxi and 12 hypothesis are accepted for taxiku taxi, as can be seen on table 1 with the significant value of p-value 0:10 (mark "***" indicates p-value less than 0.001)

Total Effect Analysis and its Relationship Among the Potential Variables The next step is analyzing the magnitude effect from one variable to anothers. The value entered is significant on total effect are related to customer satisfaction and customer loyalty which is company image. Customer expectation, customer trust, perceived quality, perceived value, and customer complain, which can be seen in table II, III, and IV.

* not significant

Table III

Direct, Indirect, and Total Effects between Latent Variable Model

for Customer Satisfaction and Customer Loyalty in the EX Taxi

Company Customer_ Perceived_ Perceived_ Customer_ Customer_

_Image Expectation Quality Value Complaint Trust

Customer_

Satisfaction

Direct

0.521 0.237 0.184 0.541

Effect

Indirect 0.063* -0.141* 0.152 0.000 Effect

Total Effect 0.584 0.096* 0.336 0.541

Customer_ Loyalty Direct -0.111* 0.000 0.000 0.000 -0.012* 0.478 Effect Indirect 0.610 0.055* 0.192 0.309 0.217 0.000 Effect Total Effect 0.499 0.055* 0.192 0.309 0.097* 0.478

* not significant

Table IV Direct, Indirect, and Total Effects between Latent Variable Model for Customer Satisfaction and Customer Loyalty in the TX Taxi

Customer_ Satisfaction Direct Effect Indirect Effect Total Effect

Company _Image

0.875 -0.044 0.831

Customer_ Perceived_ Perceived_ Customer_ Customer_ Expectation Quality Value Complaint Trust

0.145 -0.128 0.252 0.009* 0.214 0.000 0.154 0.086* 0.252

Customer_

Loyalty

Direct Effect

1.068 0.000 0.000 0.000 0.343 0.297

Indirect Effect

-0.257 0.012*

0.000 0.028* 0.123

0.000

Total Effect 0.811 0.012* 0.000 0.028* 0.466 0.297

* not significant The results of the data is processed using the

statistical program AMOS, based on the results, obtained path analysis in structural equation. There are differences

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in the variables that affect customer satisfaction and customer loyalty in the all three taxi. Variables that affect the most on customer satisfaction is company image for the all three taxi, with the greatest influence in a row are, EX (0.831), TX (0.712), and BB (0.584), furthermore the variables that influence customer satisfaction is customer expectation. with the greatest influence is TX taxi (0.178), and EX (0.154) while for the BB taxi variables that influence customer satisfaction is perceived quality (0.336). Perceived value variable affect customer satisfaction for BB taxi (0.541), EX (0.252) and TX (0.464).

Meanwhile, customer loyalty is also influenced by company image for BB (0.499), EX (0.811), and TX (0.727). Furthermore for BB taxi, perceived quality, perceived value, customer trust affects customer loyalty with the respective value is 0.192; 0.309, and 0.478. Customer complaint and customer trust affect customer loyalty for EX with the respective value is 0.466; and 0.297, while the for TX, variables that influence customer loyalty is customer trust (0.215).

There are several common variables that affect customer satisfaction and customer loyalty, one of which is the company image. Good corporate image will build satisfaction and therefore customer loyalty.

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CONCLUSION Customer satisfaction is significantly affected by the total effect of the three factors in the model of BB taxi (company image, perceived value, and perceived quality), Express taxi (company image, perceived value, and customer expectation) and TX taxi (company image, perceived value, and customer expectation), while customer loyalty factors significantly influenced by 4 factors in the model BB taxi (company image, customer trust, perceived quality, and perceived value), 3 factors in the model EX taxi (company image, customer trust, and customer complaint) and 2 factors in the model TX taxi (company image and customer trust). Company image has the greatest affect to customer satisfaction and customer loyalty in the BB taxi, EX taxi and TX taxi.

REFERENCES

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