A Descriptive Study of Customer Preference Between Uber and Regular Taxi Cab and Its Services

A Descriptive Study of Customer Preference between Uber and Regular Taxi Cab and its
Services
________________________________________________________________________
A Research in Partial Fulfillment of the Subject

Practical Research 2
Cebu City
________________________________________________________________________
By
So, Ralph Eduard G.
Go, Johannes Anne T.
Selma, Kyla Francine
Tabanao, Sophia Sue T.
Ybanez, Cybil Rose S.
April 2018
APPROVAL SHEET
The research paper here to titled

A Descriptive Study of Customer Preference between Uber and Regular Taxi Cab and its
Services
Prepared and submitted by Ralph Eduard G. So, Johannes Anne T. Go, Kyla Francine Selma,
Sophia Sue T. Tabanao, and Cybil Rose S. Ybanez in partial fulfilment of the requirements for
the subject Practical Research 2 has been examined and is recommended for acceptance and
approval for ORAL DEFENSE.
RALPH EDUARD G. SO JOHANNES ANNE T. GO
KYLA FRANCINE SELMA SOPHIA SUE T. TABANAO CYBIL ROSE S. YBAÑEZ
Researchers
Accepted and approved in partial fulfilment of the requirements for the course
Practical Research 2 in the Accountancy, Business, and Management Strand of Senior High
School Department at Sacred Heart School- Hijas De Jesus.
___________________________
MS. MARIE NOELLE ALIÑO
Practical Research 2 Teacher
TABLE OF CONTENTS
COVER PAGE
APPROVAL SHEET
TABLE OF CONTENTS
ACKNOWLEDGEMENTS
CHAPTER 1: THE PROBLEM AND ITS SCOPE
1.1 Introduction ………………………………………………………………………….. 1
1.2 Statement of the Problem ……………………………………………………………. 4
1.3 Significance of the Study ……………………………………………………………. 4
1.4 Scope and Limitations ……………………………………………………………….. 6
1.5 Review of Related Literature ………………………………………………………... 6
CHAPTER 2: RESEARCH DESIGN AND RESEARCH METHODOLOGY
2.1 Research Method …………………………………………………………………... 18
2.2 Research Environment ……………………………………………………………... 18
2.3 Research Respondents…………………………………………………………….... 19
2.4 Research Instrument ………………………………………………………………... 20
2.5 Data Analysis ………………………………………………………………………. 21
CHAPTER 3: RESULTS
3.1 Interview Transcriptions……………………………………………………………. 22
CHAPTER 4: DISCUSSIONS ……………………………………………………………….... 44
4.1 Participant Group A ………………………………………………………………... 44
4.2 Participant Group B ………………………………………………………………... 47
4.3 Participant Group C ………………………………………………………………... 55
4.4 Themes ……………………………………………………………………………... 61
4.5 Limitations & Recommendations ………………………………………………….. 63
4.6 Implications of the Study …………………………………………………………... 63
CHAPTER 5: CONCLUSION ………………………………………………………………… 65
BIBLIOGRAPHY ……………………………………………………………………………… 66
APPENDICES …………………………………………………………………………………. 71
ACKNOWLEDGEMENTS
Firstly and most importantly, the research team would like to express their never ending
gratitude to our Father, the Almighty God, for providing them with the strength, enlightenment,
perseverance and blessings to persistently move forward and face their obstacles by finishing
their research paper.
To the participants of the research for being generous with their time in answering the
survey and for sharing their knowledge on the chosen topic during the interview.
To their Practical Research II adviser, Ms. Marie Noelle I. Alino, for encouraging the
researchers to pursue their chosen topic, for assisting the researchers to pursue their chosen topic,
for assisting the researchers in understanding and analyzing the data gathered which enabled
them to get a full clasp of the results, and for the guidance, time and effort given in times of any
major or minor setbacks and complications encountered along the way.
To the families, classmates, and friends for the prayers, support, and inspiration in
moments of downfall and hopelessness and for helping them stand back on their feet despite the
hardships.
To all those who were cited above, the researchers sincerely THANK YOU. For this
research paper would have never come to be without your wonderful contributions.
CHAPTER I
The Problem and Its Scope
Introduction
Transportation is the mobility of humans, animals and goods from one location to
another. According to S.M. Kumari et al. (2010) and K. Rehrl et al. (2007), having good
transportation network is one of every modernized city’s initial priorities, as today’s modern
society needs mobility in every aspect of life. When transport systems are efficient, they provide
economic and social opportunities and benefits that result in positive multipliers effects such as
better accessibility to markets, employment and additional investments (Rodrigue & Notteboom,
1998).
According to World Book Encyclopedia (2014), before the development of

engine-powered vehicles, nearly all transportation involved the shipment of goods; therefore,
passenger transportation was relatively uncommon. Today, passenger transportation is an
essential part of everyday life in industrialized countries. Workers in countries live much farther
from their places of employment than workers did in the past, having to require quick and
dependable transportation each workday. Many children need transportation to and from school,
families depend on transportation for grocery shopping or other errands, and many people travel
long distances on vacations where transportation is needed as well. In some industrialized
countries, more money is spent on passenger transportation than on the shipment of freight.
Passenger transportation includes both private and public transportation. People who use private
transportation operate their own business, and those who use public transportation pay to ride on
vehicles owned and operated by private companies or by the government.
Oxford University Press (2017) states that public transportation includes buses, trains,
and other forms of transport that are available to the public, charge set fares, and run on fixed
routes. It provides mobility and access to travel for those who do not have use of a private
vehicle thus acting as an alternative to travel by private motor vehicle. Public transport has the
capacity to transfer large numbers of people which then helps to reduce traffic congestion,
increase access to employment and business productivity, and lower the cost of living.
In 1994-1999, Cebu City’s share of the total vehicles registered in Cebu Province ranged
from 40-55%. From 1994 to 2000, motor vehicle registration in Cebu City tremendously
increased by 42.1% with an average annual growth rate of 7.0% while the increment in 2000 to
2006 was halved to 21.4% or an average annual growth rate of 3.6%. During the year 1995, there
was a total number of 124, 561 vehicles registered in Cebu Province (Barreveld, 1995). In
2000-2006, the share of diesel-fueled vehicles and the share of gasoline-fueled vehicles in Cebu
Province were almost constant at 20% and 80%, respectively. Cebu City’s public transport is
mainly road-based. There are three modes of public transportation excluding 2 or 3-wheelers
(CITOM, 2007) namely: (1) Public Utility Jeepneys, (2) Taxi, and (3) Buses and mini buses with
8,329 units, 5,788, and 952 units respectively.
However, these public transportation means, especially the taxi company, have faced
increased competition as the government announced the introduction of new transport categories
aimed at easing traffic congestion through "efficient use of road space." Vehicles of
application-based, ride-sharing service providers such as Uber has been launched in the country
(Paz, 2015). According to UberBlog, after the successful operation of Uber in Manila during
2014, Uber had then launched in Cebu on December 2015. In an article from The Freeman,
written by Carlo Lorenciana, the year had shown its rapid growth and its leverage on technology
has become a trend in the global public transport industry. With the help of good social media
marketing and aggressive recruitment of drivers, Uber has expanded with such a rapid rate.
Uber is a mobile app ride-hailing service developed to connect passengers with drivers of
vehicles for hire and to make ride-hailing more convenient. It was founded on 2008 by Travis
Kalanick and Garret Camp in San Francisco, California, United States of America. Since then,
according to Business Insider, Uber is one of the most lucrative companies now operating in
641+ cities in 77 countries which is currently valued at roughly $70 billion in just 9 years.
The concept of Uber is to connect the passengers and the drivers, who use their own
private vehicles, through the means of the internet and your smartphone. The passenger will be
able to see the location of the approaching vehicle, details of the Uber driver and vehicle, and the
estimated time of arrival to the passenger’s desired location. To start using Uber as a passenger,
you must first create an account and install the app from your smartphone. Once an individual is
through, he/she may set up their means of payment; either through cash, credit card, debit card or
PayPal. After this, the passenger is now able to pick their destination. There are different types of
Uber rides to choose from, namely: UberX which seats 4 passengers, UberXL seats 6 passengers
and UberPOOL where you share your Uber ride with another Uber user and split the cost.
However, the Philippine taxi industry is at odds with the government on the regulations
of the new transport category for ride-sharing service providers such as Uber, GrabTaxi and Easy
Taxi (Paz, 2015). In a news article published in GMA News Online written by Jon D. Cabuenas,
transport group Drivers Unite for Mass Progress and Equal Rights (DUMPER) stormed to the
Land Transportation Franchising and Regulatory Board (LTFRB) on March 27, 2017 to protest
the operations of Transport Network Vehicle Service (TNVS) in the country. According to
DUMPER Vice President Gerry Donesa, they are protesting the operations of both Grab and
Uber in the Philippines as they are causing the decline in the profit of regular taxi drivers in the
country.
In contrast to Uber, the regular taxicab is a conventional mode of transportation. A

passenger can access a taxicab by hailing, waiting in line at a taxi bay, or booking through phone
call or application. Taxicabs have installed analog meters that computes the fare. The only
method of payment in this mode is cash. These local taxicabs have graced the Philippine streets
since 1990s and have been a very essential public transportation for Filipinos when they need to
travel from one destination to another.
However, with the presence of Uber in Cebu City, traditional taxi companies face
increased competition. Taking into consideration of the said situation, the researchers aim to
create a layout containing the advantages and disadvantages of one mode over the other as well
as the demography and preferences of each mode’s existing market. Hence, the study will aid in
improving the service quality of both modes of public transportation that will help in attaining
customer satisfaction. For this purpose, this study was conducted.
Statement of the Problem
Two of the main public transportation systems utilized in the Philippines are taxicabs and
Uber. In the Philippines, taxicabs have served the Filipino people for decades whereas according
to Uber Philippines, they have only started catering to the needs of the Filipino people since
February of 2014. In a recent study conducted by Patrick Nistal, a student of University of the
Philippines, he was able to discover that most of the population in Manila prefer the services of
Uber than those of the local taxicabs. The purpose of this research is to determine whether the
population in Cebu City would favor either the local taxicab or Uber as well as to infer more
about factors which caused such preference to occur. The following are guidelines for
conducting this study:
1. What is the preferred mode of transportation of the local commuters of Cebu

City?
2. What factors contribute to the preferred mode of transportation?
3. What are the improvements needed of both companies to be achieved in order to
reach customer satisfaction?
Definition of Terms
Application - Application is a computer or mobile program designed to perform a group of

coordinated functions, tasks, or activities for the benefit of a user.
Commuter - Commuter is a traveler on a public or private conveyance other than the driver, pilot,
or crew.
Driver - Driver is a person who is responsible for the utilization of a motor vehicle.
Income - Income is salary acquired through the process of manual labor or investments
Preference - Preference is a greater liking for one alternative over another or others.
TNVS - TNVS is the official term used to describe vehicle owners who provide services via the
Uber application.
Significance of the Study
This study is beneficial for various sections of Taxi businesses, Uber Company, and the
society as a whole.
The Management
The management of both Uber and taxi companies will be provided with the data to act as
a basis for decision-making for any improvements to their services in order to meet and exceed
the expectations and satisfaction of the customers for their entrepreneurial venture. Moreover,
this study allows the companies to foresee various obstacles in the business, thus devising
solutions for it.
Entrepreneurs
Since entrepreneurs are vital to the progress of the country’s economy, they are to serve
as instruments for instilling a variety of change in the society. This study will be very beneficial
to startup entrepreneurs as it may help them gain more knowledge regarding the economy, its
social processes and its impact on their investments.
Commuters
As contributors to the profitability of both Uber and taxi companies, the perspectives and
recommendations of the commuters are of significance in determining the factors that affect the
preference between the said two companies. Consequently, they may be able to experience the
improvements that will be established by the businesses.
LTFRB
As an agency under the Department of Transportation, it is the duty of the LTFRB to

ensure the stability of the country’s economy and to enforce laws that will promote general
economic fairness. This study will aid in raising awareness of the current issues happening in the
society in terms of transportation. Consequently, they will be able to coordinate and cooperate
with other government agencies and entities concerned to solve any said problems and issues of
certain transportation means and its services.
Future Researchers
This study will serve future researchers as a reference data for conducting new studies of
the same nature or for testing the validity of other related findings.
Scope and Limitations
In the year 2018, user perception surveys were conducted to one hundred (100)
respondents in Cebu City to gain their respective preferences between Uber and regular taxi cabs
as modes of public transportation. This was done to identify the different factors that affect the
service quality of either company which aids to the overall satisfaction of the customer.
The study area is only limited to Cebu City to identify the performances of Uber and
regular taxi cab within the vicinity. Moreover, the study will not evaluate modifications on the
Uber smartphone application, thus will only concentrate on the transportation service of the
company. Lastly, the results of this study cannot represent other TNC variants currently
operating in Cebu City like GrabCar and Grabtaxi since Uber is the pioneer and the most widely
known TNC variant worldwide.
Review of Related Literature
This study was anchored on Abraham Maslow’s Hierarchy of Needs (1943, 1954), and
the Gap Model (1985).
Abraham Maslow’s Hierarchy of Needs
Maslow’s (1943, 1954) Hierarchy of Needs is a motivational theory in psychology

compromising a five tier model of human needs. Depicted in a pyramid, the theory explains the
different levels of importance of human psychological and physical needs. Needs in the lower
categories have to be satisfied before needs in the higher ones can act as motivators.
The five levels of needs are physiological needs, safety needs, belongingness and love
needs, esteem needs and self actualization. (1) The physiological stage focuses on the basic
needs for survival such as clothes, food, water, shelter and etc. (2) Safety needs is where one
wants to feel safe and protected from harm, violence and the like. (3) Belongingness and love
needs is when one has taken care of oneself physically, and is ready to build relationships with
others, such as with family and friends. (4) Esteem needs is where one dreams and aspires to
reach perfection, independence, and etc. It is where one feels comfortable with what one has
accomplished. (5) Lastly, the self-actualization needs is where one realizes personal potential. It
is where one seeks personal growth to become one’s ideal self.
To emphasize safety needs in Maslow’s hierarchy, this is the need for security protection.
These include law and order, employment, health and stability. When these needs are not met,
humans tend to search for the protection they need based on cultural background, beliefs and
more for these are related to one’s natural desire of a peaceful and orderly world.
In relation to this study, Maslow’s theory is of great benefit for the business for a better
understanding of the behavior and reaction of individuals in common instances. Furthermore,
business owners will know how to teach their employees to make their customers feel safe to
attain customer loyalty. The theory is of use as well by managers to better understand employees'
needs and motivations, allowing them to best provide for employees' needs and generate high
productivity and job satisfaction.
Gap Model
The Service Quality Model, also known as the GAP Model, was developed by
Parasuraman, Zeithalm and Berry in 1985. It highlights the main requirements for delivering a
high level of service quality by identifying five ‘gaps' that can lead to unsuccessful delivery of
service. A gap rises when the experience does not match the expectation of the customer. Under
the gap model lies five gaps: Customer Gap, Knowledge Gap, Policy Gap, Delivery Gap, and
Communication Gap.
Gap 1 - The Customer Gap. The Customer Gap is between customer expectations and
customer perceptions. Customer expectation is an assumption in deciding the purchase whereas
customer perception is an interpretation of collective information after purchase. In a
customer-orientated strategy, delivering a quality service for a specific product should be based
on a clear understanding of the target market. Understanding customer needs and knowing
customer expectations could be the best way to close the gap.
Gap 2 - The Knowledge Gap. This gap is between consumer expectation and
management perception. This gap arises when the management or service provider does not
correctly perceive what the customer wants or needs. In a customer-orientated business, it is
important to have a clear understanding of the consumer’s need for service. To close the gap will
require comprehensive market research.
Gap 3 - The Policy Gap. This gap is between management perception and service quality
specification. This happens when the management or service provider might correctly perceive
what the customer wants, but may not set a performance standard. Furthermore, according to
Kasper et al, it is the management’s incorrect translation of the service policy into rules and
guidelines for employees. This includes poor service design, failing maintenance and updates of
the provision of good customer service or simply a lack of standardisation. Employees must have
the mindset to give the customers the desired service to avoid them in seeking a similar product
with better service.
Gap 4 - The Delivery Gap. This is the gap between service quality specification and
service delivery. Organisations with a Delivery Gap may specify the service required to support
consumers but have subsequently failed to train their employees, put good processes and
guidelines in action. As a result, employees are ill equipped to manage consumer’s needs. Some
of the problems experienced if there is a delivery gap are: (1) employees lack of product
knowledge and have difficulty managing customer questions and issues and (2) organisations
have poor human resource policies. This is to acknowledge their weaknesses so the company or
management may be able to give them the right amount of training in terms of product
knowledge, in dealing with customers and maintaining the high level of satisfaction to
customers.
Gap 5 - The Communication Gap. This is the gap between service delivery and external
communication. Consumer expectations are highly influenced by statements made by company
representatives and advertisements. The gap arises when these assumed expectations are not
fulfilled at the time of delivery of the service. In some cases, promises made by companies
through advertising media and communication raise customer expectations. When
over-promising in advertising does not match the actual service delivery, it creates a
communication gap. Consumers are disappointed because the promised service does not match
the expected service and consequently may seek alternative product sources. This leads to the
company losing customers and the customers tend to seek for alternative product sources.
The gap model has been well recognized for playing a crucial role in improving
organizational profits because it is directly related to customer satisfaction (Baker & Crompton
2000; Zeithaml & Bitner, 2000). Recognizing and closing gaps offers high quality customer
service to the consumer and helps them to achieve their goal whilst maximizing market position,
market share and financial results through customer satisfaction. This information is of relevance
to both Uber and taxi companies to suggest certain strategies and methods on how to meet the
needs and expectations of the customers in order to maximize their satisfaction, loyalty and
retention. It also helps managers to identify areas of weakness and make improvements to a
company’s service delivery that would improve the services of the company which then would
give an edge to the transportation industry amidst the growing competition in this year of time.
Transportation Network Vehicle Services (TNVS)
According to LTFRB, one of the innovations in the transportation industry is the

internet-based application called “Online Enabled Transportation Service (OETS)” that connects
drivers with customers who request a ride. Once the request is granted, the driver picks up the
customer and brings them to their desired destination. Globally, this new type of service is
referred to by many jurisdictions as the Transportation Network Company (TNC). The
Transportation Network Company (TNC) is a form of organization that provides pre-arranged
transportation services that connects passengers with drivers using their personal vehicles
through the online-enabled application or platform technology. Upon recommendation by the
Land Transportation Franchising and Regulatory Board (LTFRB) and with the advent of OETS,
a new classification of public transport conveyances is created and designated as “Transportation
Network Vehicle Services.”
According to LTFRB, technological advancements have shown a very enormous growth
concerned with each and every field including the transportation industry thus directly affecting
the land transportation service. Because Uber is under the TNVS, this information is of relevance
in giving the advantages and disadvantages of such innovation to the transportation industry.
Competition
According to Dinio & Villasis (2017), competition is the rivalry among various sellers in
the market. According to Valentine Belonwu (2013), competition among businesses enables the
company to distinctively evaluate their customers which leads them to develop ways to properly
treat their customers the right way, making customer service better. It also leads to innovation,
for it pushes the company to develop and reinvent itself to be better and exceed the expectations
of their adversaries. Moreover, competition pushes businesses to provide exemplary and unique
products which makes the business stand out thus drawing more positive attention from the
consumers.
Information about competition is essential to the study for it permits the business to
evaluate its strengths and weaknesses in order to infer what needs to be improved and changed. It
also helps the business owners identify potential threats to their businesses due to the fact that
they can infer from their competitors what plans or strategies works perfectly or what does not
work well.
Instant Gratification
According to Neil Patel (2014), instant gratification is the desire to experience pleasure or
fulfillment without delay or deferment. In most psychological models, humans are believed to
act upon the “pleasure principle.” According to Sigmund Freud’s theory, the pleasure principle
is the impulse of a person to satisfy their desires.
According to Neil Patel, one of Forbes’ top ten marketers, instant gratification is not
necessarily bad but of a great advantage especially how most activities of the millennial era is
closely connected to gadgets and technology. Because of the constant usage of the internet, it
enables users to purchase and sell various products and services instantly and frequently which
gives off instant gratification.
In an article, The Psychology of Instant Gratification and How It Will Revolutionize

Your Marketing Approach by Neil Patel, it stated that those who are involved in a business,
anticipate overnight success for their businesses, and this is acquired by providing services which
the clientele needs in pronto. However, by doing so, the clients would always expect the same
type of service to be provided every time they engage with the business. Most customers want to
receive products and services immediately and this is how instant gratification comes into play.
Studying instant gratification proves the importance to this study by enabling a frame of
reference to what the consumers seek to find and expect from a business establishment in which
contributes to customer satisfaction.
Sharing Economy
Often known as a series of services and start-ups, sharing economy also refers to an
economic activity that involves online transactions wherein individuals or groups of people buy
or sell goods and services arranged by an online company or organization. These transactions are
often done via community-based online services.
Sharing economy may take a variety of forms. This includes using information
technology that provides individuals information where it allows the optimization of resources
through the mutualization of excess capacity in goods and services. The company may also
enable owners to rent out something they do not use through the peer-to-peer services. Examples
of these are cars, houses, and bicycles. According to Crowd Companies (2014), the highest
generating sectors within the sharing economy in 2013 were peer-to-peer finance (money lending
and crowd funding), exchange of space, transportation, services, and goods. A sharing economy
is comprised of the following building blocks:
People. It is a people’s economy, which means that people are active citizens and
participants of their communities and the wider society. The citizens involve a highly efficient
sharing system, to which all contribute and benefit from. They can act also as suppliers of goods
and services; they are creators, collaborators, producers, and distributors. In business, may it be
owner, employee, or customer, their opinions and ideas matter. These are being respected and
integrated into the business at all levels of the supply chain, organization, and development.
Production. In sharing economy, people are also active participants in production.

Production is open and accessible to those who wish to produce. The internet enables the
development of products and services in a collective manner.
Distribution. Resources are distributed and redistributed through a system that is both
efficient and equitable on local, regional, national, and global scale. This promotes a fair
distribution of assets that benefits the society as a whole.
Power. There is a redistribution of power to citizens which enables them to access to

power and decision-making.
Communications. Information and knowledge is shared, open, and accessible.
Culture. The sharing economy promotes a web-based culture where the wider community
and the greater good are considered. It enables people to connect and understand each other
more.
Lucy Henderson (2016) stated that the sharing economy creates value in at least five
ways. Firstly, it provides for the productive allocation of underutilised assets. Secondly, the
sharing economy enables a multitude of buyers and sellers to interact through its user friendly
platforms, which facilitate competitiveness on both the supply and demand side of its markets.
Third, it decreases transaction costs by reducing the cost of finding willing traders through
innovative apps, and fourth, peer review systems are able to mitigate the problem of asymmetric
information between producers and consumers, contributing to a highly efficient marketplace.
Finally it allows suppliers to create value for customers long underserved by those incumbents
who have become inefficient and unresponsive because of their regulatory protections.
Knowing that Uber is of part of the sharing economy, this research uses the said concept
to determine and connect the advantages of Uber and its greater efficiency as oppose to the taxi
industry.
Non-price Determinants of Demand

Demand refers to the willingness and ability of buyers to purchase different quantities of
goods and services given different prices during a certain period of time (Viloria, Martinez &
Camus-Rivera, 2016). According to an article by Kimberly Amadeo, demand drives economic
growth. When demand increases, supply increases, and as supply increases, profits increase as
well. Economists have broken down the determinants of an individual's demand into 5
categories: price, income, price or related goods, taste and expectations.
Price - I t is the amount of money that an individual is willing and able to pay for a good
or service. In many cases, price is most likely to be the most fundamental determinant of demand
since it is often the first thing that people think about when they want to buy something. (Viloria,
Martinez & Camus-Rivera, 2016)
Income - I nvestopedia (2017) describes income as money that an individual or business

receives in exchange for providing a good or service or through investing capital. When income
increases, quantity demanded increases as well as when income decreases, so will the demand. It
is stated that the higher the income the individual has, the higher the propensity to consume and
the lower the income, the lower the propensity of consumption.
Price of Related Goods - Prices of substitute goods and complementary goods also affect
the consumer’s demands. A substitute good refers to the goods that are used in place of one
another. In this case, if a product can be used to replace a certain good because they both satisfy
a need or desire, an increase in its price will result in an increase in demand for a substitute.
Complementary goods, on the other hand, are goods that people tend to use together. In
complementary goods, an increase in demand for one would lead to an increase for the other.
Taste - When people’s desires, emotions, or preferences change in favor of a product, so

does the quantity demanded. In this sense, if the consumer’s tastes for a good or service
increases, then the quantity demanded increases, and vice versa.
Expectations - Demand also depends on the consumer’s expectations of future prices,

incomes, prices of related goods, etc. When people expect that the value of something will rise,
then they demand more of it. This phenomena would show that their reaction would be to buy
more of it while the price is still low. In addition, people who expect their incomes to increase in
the future often have an increase in their ability to consume.
Non-price factors have the potential to greatly influence the success of a good or service
on the market at any given time. Because of this, understanding these determinants is of wisdom
for marketers in preparation of formulating a marketing and promotions plan. While non-price
factors can vary greatly, they are an important consideration in any marketing strategy.
Customer Loyalty
According to Dick and Basu (1994), customer loyalty is viewed as the strength of the
relationship between an individual's relative attitude and repeat patronage. It deals with customer
intentions to do more business with the vendor and to recommend that vendor to other customers
(Zeithaml et al. 1996). Customer loyalty is the outcome of exceptional service and product
quality for it increases the willingness of customers to come back and do more business with the
entrepreneur. Those customers who have experienced low service quality will not rekindle its
transactions with the entrepreneur for the entrepreneur did not meet the expectations of the
customers.
Achieving customer loyalty depends to a large extent on the vendor’s ability to build and
maintain customer trust through quality service (Reichheld and Schefter 2000). A motivation for
service quality is the degree of trust the customer has with the entrepreneur. Trust is defined as
the willingness to make oneself vulnerable to actions taken by the trusted party based on the
feeling of confidence or assurance (Mayer et al.1995). Trust determinants in businesses are
depicted through how the business performs in a socially-appropriate manner, how the business
fulfills its various commitments, and how it will act in a generally ethical manner. It is a crucial
aspect since it diminishes the risks and fears of being taken advantage of.
Businesses should consider building customer loyalty for loyal customers tend to make
more than a single transaction. Furthermore, these customers are more likely to explore and try
out different products or service for they already had earned the trust of the business. The
Gartner Group found that 20% of existing customers generate 80% of the profits and Marketing
Metrics state that the chances of selling to new customers is 5-20%, whereas with existing
customers it reaches 60-70%. Qualities that have to be possessed by entrepreneurs are trust and
customer commitment.
Income Effect
According to Investopedia Academy (2018), the income effect represents the change in
an individual's or economy's income and shows how that change impacts the quantity demanded
of a good or service. The relationship between income and quantity demanded is a positive one;
as income increases, so does the quantity of goods and services demanded. Moreover, the
income effect is the change in demand of a good or service brought on by a change in a
consumer's discretionary income, where discretionary income is the amount of an individual's
income that is left for spending, investing or saving after paying taxes and paying for personal
necessities, such as food, shelter and clothing. The income effect can be observed under two
scenarios: if a person's aggregate level of income increases or if the relative price of goods
decreases. Both situations increase the amount of discretionary income available.
According to Business Dictionary (2018), Income Effect is any increase or decrease in

price correspondingly decreases or increases consumers' discretionary income which, in turn,
causes a lower or higher demand for the same or different good or service. An example to this
would be, if a consumer spends one-half of his or her income on bread alone, a fifty-percent
decrease in the price of bread will increase the free money available to him or her by the same
amount which he or she can spend in buying more bread or for something else. It is one of the
two effects caused by a price change.
With the research focusing mainly on customer preference, studying the income effect
will serve as a guide to the researchers since the income of a customer greatly affects their
preference between Uber and a regular taxicab.
Comparative Study of Uber and Regular Taxi Service Characteristics
A research related to this study is the Comparative Study of Uber and Regular Taxi
Service Characteristics. According to the research conducted by an undergraduate student,
Patrick D. Instal, studying Institute of Civil Engineering of UP Diliman, a taxicab and Uber are
very similar transportation means; however, the main difference between the said two is the
overall preference of Uber over the regular taxicab. Uber markets people in the workforce who
have good purchasing power and the commonality of having multiple cars, thus giving the idea
of a personal driver in the safety of their own private vehicle. Furthermore, according to the data
gathered from the survey of Mr. Instal, it has concluded that Uber has better services compared
to a regular taxicab. It includes the proper and effective dissemination of information about the
driver and the vehicle, the convenience of hailing a ride through technological advancements, the
comfort of newer cars and lastly, drivers who are performance conscious. Uber may have been
the most preferred ride-hailing service compared to taxicabs but its pricing feature is one
disadvantage that makes people think twice when choosing between Uber or a taxicab;
regardless, people would still choose Uber than a taxicab due to its many advantages.
This study is related to Instal’s research in that his research discussed several factors that
lead to the preference and satisfaction of the commuters as a mean of ensuring consequently
increasing profits by improving business strategies and procedures. Instal’s study also served as a
reference for this research to serve as a guide on the research methodology, as well as drawing
conclusions from data gathered.
Comparative Analysis of Transportation Network Companies (TNCs) and Conventional

Taxi Services in Metro Manila
The research presents a comparative analysis of Key Performance Indicators (KPIs) of

TNCs vs Conventional Taxis. The key performance indicators include travel speed, reliability,
passenger expense, and quality of service. Travel diaries from regular riders of Uber, GrabCar
and Conventional Taxi’s ran for 30 days in order to gather data and compare its KPIs. Hence,
additional surveys such as: (1) availability of vehicle check and (2) performance indicator survey
were also conducted in order to validate.
Based from the results of the travel diary submitted, Uber is faster than GrabCar and
Conventional Taxi. In terms of reliability or the number of available vehicles at a specified pick
up point, GrabCar dominates Uber and Conventional Taxi. Uber is said to be cheaper than
conventional taxis. However, GrabCar was costlier among the three (3) transport modes. Lastly,
Uber and GrabCar has better quality of service compared to conventional taxis.
A Study on the Influence of Employee Safety to Customer Satisfaction
A recent study of employees at an electric utility company found that workplace safety
may influence customer satisfaction, “suggesting that there are likely spillover effects between
the safety environment and the service environment.”
The study, which was conducted by the National Safety Council (NSC) and published in
the Journal of Safety Research, studied 821 employees at a Midwestern electric utility
company’s power delivery and customer care groups to consider how a company’s safety climate
and workplace injury statistics might impact customer satisfaction.
The study examined work groups at the utility company that were responsible for
customer-related functions including installation and service of distribution lines, meter reading,
billing, safety, emergency services and more. Work units that had more employee injuries,
researchers revealed, also had customers who were less satisfied with the service they received.
Researchers considered that safe working environments may create other benefits related to
quality of the work, which may subsequently impact customer satisfaction.
This study was related to the said research in that both researches aim to see the
correlation of safety and customer satisfaction. It provides information to businesses that safety
is a key component to consider for boosting customer satisfaction which will then aid in the
increase of profits in the businesses.
Conceptual Framework
CHAPTER II
Research Design and Research Methodology
Research Method
The study utilized a descriptive quantitative research to determine the customer’s

preference between Uber and a regular taxi cab. The research seeks to describe the current status
of a population without any intervention to obtain a general overview of a subject.
One hundred (100) respondents participated in the research by answering a survey to
obtain meaningful information and data for the success of the study. The questions that were
formulated for the survey was based off of two theoretical framework: Maslow’s Hierarchy of
Needs and the Gap Model.
The researchers analyzed Maslow’s Hierarchy of Needs to see whether both companies
of Uber and taxi have created an overall service that gives off the basic needs and protection of
an individual upon riding their mode of transportation. Moreover, the Gap Model enables the
questions to identify gaps of the service that the company needs to address in order to maintain
the satisfaction of the customers.
The relationship of all these factors were evaluated and analyzed to see the responses of
consumers towards the quality of service to Uber and regular taxi cabs to help the researchers
acquire meaningful information for the success of the study. The garnered information will be
used to provide answers for the business in terms of which mode of public transportation is
mostly preferred by the people and what factors affect such preference.
Research Procedure
The following are the procedures to be executed for the research: data collection,
analysis, and sample output and conclusion.
Surveys were given to one hundred (100) respondents in Cebu City who use either Uber
or regular taxi cab to determine the level of satisfaction customers receive from the service
rendered by the business in relation to their profile. The respondents were divided into fifty (50)
adults and fifty (50) teenagers to diversify the ending results of the survey. All respondents were
selected through the consecutive sampling. According to Flinders University, consecutive
sampling seeks to include all accessible subjects as part of the sample. This consecutive
sampling method was used to include a bigger scope of demographics and their respective
opinions. With all data collected from the surveys, data analysis will be done through descriptive
and inferential statistics.
Results for the user perception survey will be presented through graphical form. Graphs
of different respondent groups answering a similar question will be combined or presented side
by side for easier comparison and application of descriptive statistics. Moreover, results of the
inferential statistics (T-test and tests for normality) will also be presented in this manner for
easier access in checking which data sets are statistically different based from their respective
tests.
Statistical Treatment of Data
Descriptive statistics will be used on all survey items through simple summaries and
analysis with the use graphical representation. Usually, the modal answer, spread, and central
tendency is gathered and discussed and ratios are also used, particularly in gender analysis.
Inferential statistics is to determine whether two population means are statistically
different or not thus comparing ratings given to the taxicab versus those given to Uber among
different aspects of their service. The inferential test for comparison used in this study is the
T-test for two independent samples which determines a probability that two samples are the same
with respect to a variable tested. This can also be performed even if the two samples do not have
an equal number of data points. The null hypothesis of the T-test is “The difference between
population means is 0”, which means that there is no significant difference between the two
means.
The study assumed a confidence interval of 95%. In applied practice, confidence intervals
are typically stated at the 95% confidence level. A P-value less than 0.05 (5% margin of error)
means that we are more than 95% certain that the two sample means are different. Therefore, we
reject the null hypothesis.
Likert Scale
The Likert Scale was used to determine the mean for the different types of criterion. The data
were computed by the use of this formula:
f (x1) + f (x2) + f (x3)

hM = n
where
M = Mean
F = Frequency of respondents’ answer for a given criteria
X1, X2, X3 = Numerical rating for a given criteria
n = Number of respondents
The compound mean was analyzed and interpreted based on the remarks below:
Remark Rating
Prefer Uber 5.17 - 6
Moderately Prefer Uber 4.34 - 5.16
Slightly Prefer Uber 3.6 - 4.33
Somewhat Don’t Prefer Uber 2.68 - 3.5
Strongly Don’t Prefer Uber 1.84 - 2.67

Don’t Prefer Uber 1 - 1.83
The levels of each criterion is determined by the following formula:
( highest point in the Likert Scale − lowest point in the Likert Scale )
Additional remark for each level = #of levels used
3−1
Additional remark for each level = 3
Additional remark for each level = 0.66
Percentage
The percentage was used to determine the quantitative relation to the whole response. To
compute for percentage, the researchers used the equation below.
f
P= n
x 100
Where f = frequency of the response

N = total number of respondents
P = its percentage
Percentages were then shown on a bar graph or pie chart, where comparisons from the data could
be drawn and the most common answer of the respondents could be identified.
Research Instrument
To facilitate the development of a comprehensive research, surveys were given to the

respondents to gather vital primary quantitative source data. The researchers used a user
perception survey as a mean of gathering data for it is a fixed format questionnaire wherein all
questions were arranged in advance. Thus, providing the researchers to understand the study
better, to gather all initial and professional data, and to have a more detailed and systematic
study. The public survey was conducted through online means where it is posted in social media
platforms (e.g. Facebook and Twitter).
Participants input data on their demographics, ratings based on experience, preference,

and thoughts on multiple ideas about Uber and a regular taxicab. All the data gathered from the
participants were recorded and analyzed for the reference of the researchers of this study.
CHAPTER III
Presentation, Interpretation, and Analysis of Data
This chapter presents, analyzes, and interprets the data collected by the researchers in this
study. The data pertains to the factors affecting the preference between Uber and taxi services
among the respondents in Cebu City, Philippines. Based on the data gathered through the surveys
distributed to the respondents, the researchers have interpreted and analyzed the results by
establishing the data in graphs, calculating their corresponding means and percentages and
analyzing them in accordance with the theories and related studies in the literature review.
Figure 1. Age of Respondents

Note: X-axis is the age bracket, Y-axis is the total number of people

From the results gathered in the survey, the highest percentage of 37% are 17-year-old
respondents while the least percentage of 0.9% of the respondents are 28 and 44 years of age.
Figure 2. Gender of Respondents
With regards to the gender of the respondents, the highest percentage of 72.2% consists
of females who use these transportation services while the lowest percentage of 27.8% consists
of males.
Figure 3. Occupation of Respondents
With regards to the occupation of the respondents, 93.5% of the respondents consists of
students who utilize transportation services in their endeavors. In contrast, 0.9% of the
respondents consists of self-employed individuals.
Figure 4. Average Income of Respondent’s Parents
From the results gathered in the survey, it was found that the highest average income of
the respondent’s parents is Php250,000 with a percentage of 29.6%. Meanwhile, 9.3% of the
respondents’ parents earn approximately below Php 40,000. The results indicate that individuals
have their own respective income which would depend on their source of livelihood.
Figure 5. Preference between Uber and Taxi
From the results gathered in the survey, it was found that Uber is the most preferred
public transportation among the respondents with the percentage of 80.6% while taxi is the least
preferred with a percentage of 19.4%.
PARTICIPANT GROUP A: RESPONDENTS WHO PREFER TAXI SERVICES
Figure 6. Overall Service Rating of Taxi

Note: X-axis is the rating bracket, Y-axis is the total number of people
From the results gathered in the survey, the highest percentage of 59.1% indicates that
most of the respondents rated the service of the taxi business as 4 while the lowest percentage of
4.5% rated it as 1 and 5. With the use of the Likert scale, a mean of 3.59 was able to come up
with a conclusion that people somewhat do not prefer Uber.
The rating of 4 indicates that it is a fairly good business; it is not entirely excellent nor
entirely poor. It suggests that it has its strengths as well as its weaknesses that need to be
improved on. Moreover, the rating of 1 indicates that the service is entirely poor and it suggests
that the company has to improve on its services in order to achieve satisfaction to the customers.
Lastly, the rating of 5 indicates that the taxi business is almost an excellent service but has yet a
few more problems that need to be addressed.
According to the Gap model, a gap arises within the business when the experience does
not match the expectation of the customer. The Knowledge and Delivery Gap specifically must
be taken accounted by the company in order to look at the expectations of the customer to deliver
their services effectively. Upon addressing these gaps, an increase of rating of the taxi business
will be expected, as well as the customer loyalty of the customers.
Figure 7. Factors Affecting the Services of the Taxi
Note: The x-axis is the total number of people, the y-axis are the choices listed according to the survey
From the results gathered in the survey, it has been identified that 72.7% of the
respondents perceived that the factor which contributed most to the the overall satisfaction of
taxi services was due to the courtesy of the drivers to their customers. Meanwhile, several factors
gained each the lowest percentage of 4.5%. These factors include taxicabs not asking for extra
fees, having a pleasant odor, being considerably cheaper and a faster mode of transportation as
well as taxicab drivers giving change to their customers.
The results are in relation to the Non-price Determinants of Demand wherein demand is
the eagerness to purchase various goods and services backed by the ability to purchase such
commodities. Demand is driven by the following factors: price, income, price or related goods,
taste and expectations. In this case, the factor that drives the consumers to partake in the services
provided by the taxis is caused by taste or consumer preferences. When the consumer’s
fascination and inclination changes favoring a specific product of choice, so does the demand.
Hence, demand is present since the services provided by the taxicabs assuages the fascination,
fervor, and inclination of the consumers.
Figure 8. Problems Encountered with Taxis
respondents perceive that the problems they have experienced when partaking in the services
provided by taxicabs is that the condition of the car is poor as well as an inconvenience in
accessing the services provided by various taxicabs. Meanwhile, the lowest percentage of 4.8%
of the respondents perceive that the problems they have encountered was due to the fact that the
drivers would choose a longer route when bringing their consumers to the selected destination.
The results are in relation to the Gap Model or the Service Quality Model wherein
customer’s viewpoints must be put into consideration in order to meet and exceed their needs.
The Gap Model accentuates the fundamental requisites in order to administer exceptional quality
services to its consumers by identifying the gaps that need to be intensified so as to meet
customer expectations and needs. In this case, taxicabs must look into the Customer Gap and the
Policy Gap. The Customer Gap is the disparity between customer expectation and customer
perception, thus taxicabs must comprehend on ways to appease customer needs by identifying
their customer’s expectations. Moreover, the Policy Gap is the disparity between management
perception and service quality specification. This occurs when service provider has precisely
distinguished consumer’s wants however they are unable to satisfy the set standard. Hence,
taxicabs must look into this in order to refrain their consumers to partake in other businesses that
provides similar services but with better quality.
Figure 9. Span of Use of Taxis
respondents rarely utilize the services provided by the local taxicabs. Meanwhile, 8.7% of the
respondents utilize the services provided by the local taxicabs four (4) to six (6) times a week.
The results are in relation to Non- Price Determinants of Demand as well as Customer
Loyalty. Non-Price determinants of demand are factors in which demand depends upon the
consumer’s willingness and ability to purchase desired goods or services. There are determinants
that motivates an individual to purchase goods and services and these include price, income,
price-related goods, tastes and expectations. When these determinants are not sufficiently met by
service providers then there is a shift in the demand of the particular service hence may be the
cause of why consumers seldomly partake in the services provided by local taxicabs. When
consumer expectations aren’t met then consumers may opt for another service provider that
satisfies their needs and expectations hence would then cause a decline in customer loyalty.
Customer loyalty is the result of exceptional service and product quality for it boosts the
willingness of customers to come back and do more business transactions with the business
venture. When the quality of service provided is not sufficient, consumers would be hesitant in
investing their time and money on a particular business which would result to the decline of
customer loyalty or the relationship between consumers and producers.
Figure 10. Purpose of Travel with Taxis
As seen in the chart above, a proportion of 39.1% shows the highest percentage wherein
running errands is the respondent’s main purpose of traveling with a taxi. In contrast, a
proportion of 13% shows the lowest percentage wherein traveling from school or work is the
least purpose of traveling using a Taxi, voted by the respondents.
This is in relation to Instant Gratification, wherein it is the desire to experience pleasure

or fulfillment without delay or deferment (Patel, 2014). According to Sigmund Freud’s theory,
the pleasure principle is the impulse of a person to satisfy their desires as soon as possible.
Because of the constant usage of the internet, it enables users to acquire services instantly and
frequently which gives off instant gratification. From the results gathered in this graph, it can be
concluded that the main reason for respondents to travel with a taxi is for errand purposes so as
they may complete their errands instantly.
Figure 11. Waiting Time of Taxi
As presented in figure 11, the highest percentage of 52.2% shows that most of the
respondent’s waiting time for a taxicab is from six (6) to ten (10) minutes. On the other hand, the
lowest percentage of 4.3% shows that the respondent’s waiting time for the arrival of the taxi is
within twenty-one (21) to thirty (30) minutes.
The data gathered is in relation to Customer Loyalty. It is viewed as the strength of the
relationship between an individual's relative attitude and repeat patronage (Basu and Dick,
1994). It deals with customer intentions to do more business with the vendor and to recommend
that vendor to other customers (Zeithaml et al. 1996). Customer loyalty is the outcome of
exceptional service for it increases the willingness of customers to come back and do more
business with the entrepreneur. Those customers who have experienced low service quality will
not rekindle its transactions with the entrepreneur for the entrepreneur did not meet the
expectations of the customers. When the waiting time of the taxi is consistently low, the taxi
industry may continue to achieve customer loyalty.
Figure 12. Mostly Agreed Statements
From the results gathered in the survey, 79.2% of the respondents who prefer taxi believe
that both the Uber and Taxi will remain to coexist in the future, while 20.8% believe that Uber
will still be sustainable in the long-run. None of the respondents chose the option of the taxi
continuing to pioneer in the public transportation industry.
In relation to the results, the Non-price Determinants of Demand states that a demand
depends on the consumer’s expectations of future prices, incomes, prices of related goods, and
etc. As people become aware of the rising of a value of an object, they demand more of it. With
the globalization of the 21st century, information is disseminated quickly in which people are
able to create or follow new trends in order to meet the demands and expectations of the society.
From the results gathered in the study, it is presented that people use Uber more frequently than
Taxis for its overall service. However, most of the respondents still believe that both Uber and
Taxi will continue making business in the future. This would be for the reason that we live in a
diverse society, where people have their own preferences, perspectives, and opinions.
Moreover, competition has intensified in the public transportation industry with the
emergence of Uber. According to Cooley (1894), “Competition is a universal aspect of life, as
we have seen; that it is neither good nor bad in itself but may be either, dependent upon its
relation to the larger social order and the goals of competition; that it serves useful purposes in
any social order; and that, though capable of refinement, it is ineradicable.” With competition,
affects customer loyalty. Achieving customer loyalty depends to a large extent on the vendor’s
ability to build and maintain customer trust through quality service (Reichheld and Schefter
2000). The gaps in the Gap Model must be taken to account to both companies in order to
achieve customer loyalty to make their businesses maintain its relevance in the industry.
PARTICIPANT GROUP B: RESPONDENTS WHO PREFER UBER SERVICES
Figure 13. Overall Service Rating of Uber

Note: X-axis is the rating bracket, Y-axis is the total number of people
From the results gathered in the survey, the highest percentage of 52.3% indicates that
most of the respondents rated the service of the Uber as 5 while the lowest percentage of 22.7%
rated it as 6. With the use of the Likert scale, a mean of 4.97 was able to come up with a
conclusion that these respondents moderately prefer Uber.
The rating of 5 indicates that the service of the Uber is almost excellent but needs to
address few more problems and concerns to their services while the rating of 6 indicates that the
service has already achieved excellency to their services and has achieved customer satisfaction.
With the Gap Model, it helps in understanding the gaps of the businesses in order to see
what weaknesses that need to be improved on. The Knowledge and Delivery Gap are of help in
assessing such problems to oversee what the customers are expecting on the services of the Uber.
With the knowledge gained from the Knowledge Gap, the company can improve such
aspects in order to have an effective service, thus closing the Delivery Gap. When an effective
service is being delivered to the customers, the rating of 5 may potentially increase to a rating of
6 which indicates that the customers are fully satisfied with the Uber service which then can
create loyalty among the customers
Figure 14. Factors Affecting the Preference of Uber

From the results gathered in the survey, the cleanliness of the vehicle’s interior carries the
highest percentage of 92%. As for the lowest percentage of 1.1%, the factors that affect the
respondents preference of Uber is their promos, the appearance of the driver, their cheaper fare,
their ability to send tracking monitors to family or friends, their convenience in booking, their
safety regulations and lastly, the knowledgeable of drivers in terms of technology.
The results are in relation to the Non-Price Determinants of Demand wherein demand
refers to the willingness and ability of buyers to purchase different quantities of goods and
services given different prices during a certain period of time (Viloria, Martinez &
Camus-Rivera, 2016). According to an article by Kimberly Amadeo, demand drives economic
growth. When demand increases, supply increases, and as supply increases, profits increase as
well. More specifically, the results can be related to the taste category wherein, people’s desires,
emotions, or preferences change in favor of a product, so does the quantity demanded. In this
sense, if the consumer’s tastes for a good or service increases, then the quantity demanded
increases, and vice versa.
In addition, the results are in relation to Abraham Maslow’s Hierarchy of Needs as well,
specifically in the safety needs level. These include law and order, employment, health and
stability. When these needs are not met, humans tend to search for the protection they need based
on cultural background, beliefs and more for these are related to one’s natural desire of a
peaceful and orderly world. In relation to this, safety is met among the customers thus the
customers’ preference of Uber because of its security.
Figure 15. Problems Encountered with Uber
From the results gathered in the survey, the problem with highest percentage of 65.8%
encountered in Uber is the inconvenience in accessing while a number of problems have the
lowest percentage of 1.3%. These problems include its waiting time, its expensive price rating,
the ignorance of the drivers with technology and the unavailability of cars due to high demand.
The said problems are of relation with the theory of the Gap Model specifically
Knowledge, Policy and Delivery Gap. Knowledge Gap states the importance in having a clear
understanding of the consumer’s need for service; Policy Gap states that service provider might
correctly perceive what the customer wants, but may not set a performance standard; and
Delivery Gap states that the business may specify the service required to support consumers but
have subsequently failed to train their employees, put good processes and guidelines in action.
These gaps must be put into consideration in order to meet and exceed the customers satisfaction
in order to achieve customer loyalty to maintain relevance to the industry.
Figure 16. Span of Use with Uber
From the data collected among the respondents, the highest percentage of 48.3% rarely
use Uber, while 4.6% either use Uber four (4) to six (6) times a week or everyday.
The results are in relation to Non-Price Determinants of Demand wherein demand

depends upon the consumer’s willingness and ability to purchase desired goods or services.
Because most respondents rarely use Uber, their services must consistently be of good quality in
order to achieve customer satisfaction to maintain its customer loyalty.
Figure 17. Purpose of Travel of Uber
From the results gathered in the survey, the highest percentage of 35.2% of respondents
choose Uber for the purpose of running errands while the lowest percentage of 1.1% use Uber
for either food trips, out of town plans, or the unavailability of a personal car.
In relation to Sharing Economy, more people prefer Uber than Taxi since Uber is an
online company where their transactions are done through community-based online services
which makes it easier and more convenient for customers to hail a ride. Moreover, because of the
innovation of the Uber application, people are constantly connected to different kinds of
technology and internet which enables them to hail an Uber anytime and anywhere. Because of
its accessibility, it gains instant gratification to the customers because of its convenience to
whatever their travel purpose may be, which then can lead to customer loyalty to the business.
Figure 18. Waiting Time of Uber
From the results gathered in the survey, it shows that the highest level of waiting time for
Uber upon arrival is six (6) to ten (10) minutes with a percentage of 64.8% while the lowest
percentage of 1.1% indicates a waiting time for twenty-one (21) to thirty (30) minutes.
The data gathered is in relation to Instant Gratification and Customer Loyalty. According
to Neil Patel (2014), instant gratification is the desire to experience pleasure or fulfillment
without delay or deferment. With the waiting time of six (6) to ten (10) minutes being the highest
percentage, it is a positive feedback of the customers because of its short span of time to wait
which then reflects as to why more people prefer Uber than the taxi cabs. This portrays the
theory of instant gratification because it offers the customers the satisfaction of a fast service in
order to not keep them waiting and avoid frustration and discontent to the company. With that
said, it is important to keep the waiting time low for the customers in order for their loyalty to be
maintained and achieved in order for the business to continue to grow in the industry.
Figure 19. Mostly Agreed Statements
From the results gathered in the survey, the highest percentage of 50.6% agree that Uber
and Taxi will remain to coexist in the future while the lowest percentage of 49.4% agree that
Uber is sustainable in the long-run.
With the agreed statement that Uber and Taxi will remain to coexist in the future,
competition is at hand. According to Valentine Belonwu (2013), competition among businesses
enables the company to distinctively evaluate their customers which leads them to develop ways
to properly treat their customers the right way, making customer service better. It is essential for
both companies to assess their own company’s strengths and weaknesses in order to infer what
needs to be improved or changed to achieve customer satisfaction and customer loyalty. Having
said the importance of competition, Uber has gained customer loyalty because 49.4% has agreed
that Uber is sustainable in the long-run, a close difference with the highest frequency of 50.6%.
It is implied that the business has recognized the gaps of customer expectation and customer
perception, resulting for the customers’ experience of instant gratification. Moreover, their safety
has been met which is an important factor to consider especially as part of the public
transportation industry, for it is situated in the second level of the Maslow’s Hierarchy of Needs.
With the gaps being recognized and safety being ensured, customer loyalty is currently being
achieved in the Uber business.
CHAPTER IV
Discussion
Limitations and Recommendations. Amidst these findings, there are limitations that have to be
noted. One limitation is that a number of students did not accurately answer the survey due to a
confusing format, thus their answers were invalid. A proper formatting of the survey is important
in order for the respondents to have a full understanding on the survey and on the study.
Moreover, there is a concentration on the teenager’s age of seventeen (17). It is best to have a
fairly equal amount between the ages under the teenage category for more accurate results.
The management of various taxi companies are recommended to focus more on their
vehicles and its physical appearance, as well as its taxi drivers’ services and attitude towards the
customers. Such can be done through the implementation of seminar programs for the drivers
and the management as a whole, in order to allow the companies to evaluate and learn the
feedbacks given by their customers. Moreover, the management of various taxi companies can
also improve through the creation of an online application for taxi customers, which would give
them an ease to access the transportation for the customers.
Future researchers shall use this study as an anchor to conduct another study still focusing
on the transportation services given by various companies, such as the perceptions of the people
on the possible merge between Grab and Uber Company. In addition, future researchers are also
recommended to increase the sample size of their study, particularly those aged twenty to thirty
years old, where more participants are gathered, thus giving more accuracy to the data.
here are various ways as to how the findings of the study can help
Implications of the Study. T
society and both businesses in the public transportation industry in Cebu City.
With regards to the local taxi industry, respondents have identified that the taxi business
must resolve their issues pertaining to its accessibility as well as the condition of the vehicle
being utilized in the business. Such must be put into consideration so that the local taxi industry
may be able to resolve the disparity between customer expectation and customer perception,
resulting to an increase in customer satisfaction and loyalty. It is important to take notice on the
opinions of consumers for they are the ones partaking into the services provided by the local
taxicabs. Without them, local taxi industry would not succeed. Therefore, the business must
include an ease in the accessibility of the transportation provider by producing an app where
consumers are able to hail taxi at ease. Moreover, improvements on the condition of the vehicle
being utilized may be addressed through revamping old model vehicles or making thorough
repairs on the various parts of the vehicle. Lastly, improvements on the attitude and manners of
taxicab drivers can be improved through engaging local taxicab driver in various talks and
lectures regarding service improvements as well as the rules and regulations implemented
pertaining to the industry at hand.
With regards to Uber, respondents across Cebu City have identified that Uber must
further look into the issues regarding its accessibility. Moreover, Uber has rightly identified
consumer wants however they must set a standard so as to fully address consumer wants and
needs. In addition, such matter must be dealt in order to meet and exceed consumer needs as well
as attain customer loyalty in order for Uber to continuously prevail in the industry. The business
must include its accessibility wherein they can provide further enhancements to their app in order
for consumers to have an ease in partaking with the services provided. Moreover, improvements
on the vehicles can be addressed through making thorough renovations on the vehicles.
Furthermore, attitudes of drivers can be improved through making drivers partake on various
seminars regarding service improvements as well as rules and regulations implemented in
regards to the transportation service.
Hence, the findings of the research will be able to help the local taxi industry and Uber
identify concerns pertaining to its respective commerce. When both the local taxi industry and
Uber would gain perception on such matters, then they would be able to take action and address
such concerns expressed by consumers which would then result to a boost in performance and
activity on both the local taxi industry and Uber.
CHAPTER V
Conclusions
Since its emergence in Cebu City, Uber has been the preferred mode of transportation
among the local commuters than the local taxi cabs. Uber operates with mostly the same
dynamics as the taxicab, but makes its users feel like they have a personal driver in the safety of
their own vehicle. The data concludes that Uber has better services and creates a negative
perception on the taxicab. Uber has an edge in safety through effective information
dissemination, convenience through technological advancements in booking and GPS, and
comfort through newer cars and performance-conscious drivers.
This study has sought points of improvement that need to be addressed by both
companies through the surveys that had been given to at least one hundred (100) customers. For
the taxi industry, points of improvement include the attitude of the drivers, cleanliness of the taxi
cabs and innovations to make taxis more convenient. On the other hand, although most prefer
Uber as their means of public transportation, problems they still need to address include the
inconvenience in accessibility, the condition of the car and the attitude of the driver. These are
important feedback to consider in order to gain customer satisfaction and loyalty in order for
their respective companies to maintain its relevance in the industry.
Income Distribution based on class link:
https://psa.gov.ph/sites/default/files/attachments/hsd/article/TABLE%208%20Distribution%20of
%20Families%20by%20Income%20Class%2C%20by%20Main%20Source%20of%20Income%
20and%20by%20Region%202012.pdf
https://psa.gov.ph/content/statistical-tables-2015-family-income-and-expenditure-survey
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A Descriptive Study of Customer Preference between Uber and Regular Taxi Cab and its

A Research in Partial Fulfillment of the Subject

The research paper here to titled

RALPH EDUARD G. SO JOHANNES ANNE T. GO

KYLA FRANCINE SELMA SOPHIA SUE T. TABANAO CYBIL ROSE S. YBAÑEZ

According to World Book Encyclopedia (2014), before the development of

In contrast to Uber, the regular taxicab is a conventional mode of transportation. A

Statement of the Problem

1. What is the preferred mode of transportation of the local commuters of Cebu

Application​ - Application is a computer or mobile program designed to perform a group of

Significance of the Study

As an agency under the Department of Transportation, it is the duty of the LTFRB to

Scope and Limitations

Review of Related Literature

Abraham Maslow’s Hierarchy of Needs

Maslow’s (1943, 1954) Hierarchy of Needs is a motivational theory in psychology

Transportation Network Vehicle Services (TNVS)

According to LTFRB, one of the innovations in the transportation industry is the

In an article, The Psychology of Instant Gratification and How It Will Revolutionize

Production.​ In sharing economy, people are also active participants in production.

Power​. There is a redistribution of power to citizens which enables them to access to

Communications​. Information and knowledge is shared, open, and accessible.

Non-price Determinants of Demand

Income - I​ nvestopedia (2017) describes income as money that an individual or business

Taste - ​When people’s desires, emotions, or preferences change in favor of a product, so

Expectations - Demand also depends on the consumer’s expectations of future prices,

According to Business Dictionary (2018), ​Income Effect is any increase or decrease in

Comparative Study of Uber and Regular Taxi Service Characteristics

Comparative Analysis of Transportation Network Companies (TNCs) and Conventional

The research presents a comparative analysis of Key Performance Indicators (KPIs) of

A Study on the Influence of Employee Safety to Customer Satisfaction

Research Design and Research Methodology

The study utilized a descriptive quantitative research to determine the customer’s

Statistical Treatment of Data

f (x1) + f (x2) + f (x3)

Prefer Uber 5.17 - 6

Moderately Prefer Uber 4.34 - 5.16

Slightly Prefer Uber 3.6 - 4.33

Somewhat Don’t Prefer Uber 2.68 - 3.5

Strongly Don’t Prefer Uber 1.84 - 2.67

The levels of each criterion is determined by the following formula:

Additional remark for each level = 0.66

Where f = frequency of the response

To facilitate the development of a comprehensive research, surveys were given to the

Participants input data on their demographics, ratings based on experience, preference,

Presentation, Interpretation, and Analysis of Data

Figure 1. Age of Respondents

Figure 3. Occupation of Respondents

Figure 5. Preference between Uber and Taxi

Figure 6. Overall Service Rating of Taxi

Figure 9. Span of Use of Taxis

Figure 10. Purpose of Travel with Taxis

This is in relation to Instant Gratification, wherein it is the desire to experience pleasure

PARTICIPANT GROUP B: RESPONDENTS WHO PREFER UBER SERVICES

Figure 13. Overall Service Rating of Uber

Figure 14. Factors Affecting the Preference of Uber

Figure 16. Span of Use with Uber

The results are in relation to Non-Price Determinants of Demand wherein demand

Arcilla Integrated Marketing.

Belonwu, V. (2013, January 21).​ 20 Proven Reasons Why Competition Is Good.

Retrieved August 21, 2017 from

28, 2017, from ​http://upfrontanalytics.com/the-pros-and-cons-of-observational-research/

Data collection in qualitative research. Retrieved August 27, 2017, from

Application - Application is a computer or mobile program designed to perform a group of

Production. In sharing economy, people are also active participants in production.

Power. There is a redistribution of power to citizens which enables them to access to

Communications. Information and knowledge is shared, open, and accessible.

Income - I nvestopedia (2017) describes income as money that an individual or business

Taste - When people’s desires, emotions, or preferences change in favor of a product, so

According to Business Dictionary (2018), Income Effect is any increase or decrease in

Belonwu, V. (2013, January 21). 20 Proven Reasons Why Competition Is Good.

28, 2017, from http://upfrontanalytics.com/the-pros-and-cons-of-observational-research/

etrieved February 25, 2018 from,

public transport travel. Global Journal of Computer Science and Technology,

2017, from http://ncts.upd.edu.ph/tssp/wp-content/uploads/2016/08/Nistal-Regidor.pdf

Transport. (2006). Merriam-Webster’s Dictionary. USA: Merriam-Webster, Incorporated.

Transportation. (2006). Merriam-Webster’s Dictionary. USA: Merriam-Webster,

(n.d.). Why Invest in Cebu? Retrieved January 28, 2018 from