Effect of Service Quality and Sales Promotion on Customer Loyalty in Online Transportation Services

Authors

  • Sherly Siangta, Julius Solichin, Evelyn Hendriana

Abstract

This research investigates the effect of service quality and sales promotion on customer loyalty in online transportation services with a focus on Indonesia. Samples of online transportation customers in Greater Jakarta were selected using judgmental sampling techniques. A total of 268 valid responses were analyzed using partial least square structural equation modeling (PLS-SEM). The results showed that service quality and sales promotion significantly influenced customer loyalty through satisfaction and trust. Between these variables, service quality had a greater effect on customer satisfaction and trust than sales promotion, which in turn increased customer loyalty. This indicates the need for online transportation companies to continuously provide superior service and offer sales promotions to customers to make them satisfied and loyal to the online transportation service provider.

Published

2020-11-01

Issue

Section

Articles