Professional Documents
Culture Documents
INTERNATIONAL UNIVERSITY
SCHOOL OF BUSINESS
By
i
THE IMPACTS OF SERVICE QUALITY,
CUSTOMER TRUST AND PERCEIVED
RISK ON CUSTOMER LOYALTY
THE CASE OF UBER IN HCM CITY
In International Business
Under the guidance and approval of the committee, and approved by all its members,
this thesis has been accepted in partial fulfillment of the requirements for the degree.
Approved:
--------------------------------------- ---------------------------------------
Chairperson Committee member
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Committee member Committee member
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Committee member Committee member
ii
ACKNOWLEDGENTS
First of all, I would like to express my heartfelt gratitude and deepest
appreciation to my research supervisor, Mr. Nguyen Minh Tuan, the lecturer at
International University, Viet Nam National University, Ho Chi Minh City. Thanks
to his thoroughness, I could profound my knowledge and complete this thesis with
all my efforts. Especially in the final stage, his tutorials and recommendations and
helped me through the difficulties I had.
Secondly, I would like to give special thanks to all members of my thesis
committee for their comments and suggests as well as my professors and lecturers at
School of Business Administration, International University for teaching and training
me these four years.
The final is my appreciation and thanks to all the participants (my friends and
people in garment companies) who contributed to my work.
iii
Plagiarism Statements
I would like to declare that, apart from the acknowledged references, this thesis
does not use language, ideas, or other ortiginal material from anyone; nor has not
previously submitted to any other educational and research programs or institutions. I
fully understand that any writings in this thesis contradicted to the above statement
will automatically lead to the rejection from the BA program at the International
University – Vietnam National University Ho Chi Minh City.
iv
Copyright Statement
This copy of the thesis has been supplied on condition that anyone who
consults it is understood to recognize that its copyright rests with its author and that no
quotation from the thesis and no information derived from it may published without
the author’s prior consent.
©Nguyen Quoc Tran – BABAIU12072 – 2012
v
Table of Contents
ACKNOWLEDGENTS ............................................................................................ iii
2.4.4. Assurance................................................................................................. 10
vi
2.7 Relationship between customer trust and loyalty ........................................... 11
vii
5.8.1 Reliability ............................................................................................. 37
REFERENCES ......................................................................................................... 51
APPENDICES .......................................................................................................... 53
viii
List of Figures
ix
List of Tables
Table 4. 1: Measurement Scales ............................................................................. 20
x
ABSTRACT
Regarding to the purpose of this study, the quantitative and qualitative method
are combined to complete the method. Be more specific, 126 questionnaires were
distributed to students in VNU and 244 online surveys (email, google survey) to office
staffs in HCM City. As a result, the study showed that service quality and perceived
risk have influence on customer loyalty. Meanwhile, unlike the proposed model of
Gefen (2002), there is no relationship between customer trust and customer loyalty.
xi
xii
CHAPTER I: INTRODUCTION
1.1 Background
Vietnam 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. Urban transport provides the basic
link between homes and the place of employment, and between the users and producers
of goods and services. The level and nature of the urban transport network also
influences the cost and efficiency of other urban services like water and sewerage,
waste disposal, health, and education. Physical expansion of cities and rapid growth of
urban population exerts tremendous pressure on the cost and accessibility of transport
services. Due to the fact, the development of transportation in Vietnam are running
slow compared to other neighbor countries. It is being considered as the lower
perceived quality. There are various types of public transportation in Vietnam, Taxi is
one of them. The provision of taxi services is a traditional solutions, taking advantage
of the positive attitudes of both individual vehicle transport and public transport
services. Taxis are cars used for transport services which provides door to door
personal transport services.
1
subscribers moving from this brand to another one. This situation determines that
customers currently are no longer loyal to providers as in the period of monopoly
market before 2003.
In the future, it will be very difficult and costly for advertising and promotion
to find new customers when the number of taxis reach saturation point. The applicable
for this problem is the maintenance of existing customers because not only lessen the
efforts for advertisement and promotion, keeping customer loyal costs less 6 times
than attracting new customers (Rosenberg & czepiel, 1984). Moreover, Srivasta,
Shervani & Favey (2000) argued that customer loyalty is examined as a useful property
and a method to protect market share of companies (Dawkins & Reichheld, 1990).
From this fact, researching about customer loyalty brings necessity and enormous
implication which is not only for each taxi company in particular, but also for the
transportation sector of country in general.
1.2 Rationale
Nowadays, taxi becomes more and more important in our life. Considering as
one of the most useful mode of transport, taxis are used widely all over the world in
general and in Vietnam in particular. Taxi meets the need to travel speedily and safely,
saving time and other costs for users. Besides, smartphone currently grow into a
necessity for anyone in this social network century, which leads to the appearance of
a trending, smartphone application development. Under this highly dependent
characteristic, Travis Kalanick and Garrett Camp developed, marketed and operated
the Uber mobile app, which allows customers with smartphone to submit trip request
by finding and routing to Uber drivers who use their own cars. Taking advantage of
the combination of the positive characteristics of both individual vehical transport and
the explosive of smartphones, the service was available in over 60 countries and 404
cities worldwide.
In July 2014, Uber began to appear in Vietnam and it has brought a more
reliable and efficient transport option than old taxis for people with accurate GPS,
drivers’ information, type of car and fare based on GPS, etc. The contentment from
customers and benefit for drivers has been astounding lead to the explosion of Uber
registers. Therefore, make Vietnam become one of the fastest growing markets ever.
2
Vietnamese consumers clearly love choice and Uber is committed to providing more
options in cost and appearance for everyone.
Contrary to the enthusiastic support from the community, many parties such as
the largest taxi companies in HCM City are blocking the development of the
technology at any cost. Uber found they are putting their own benefits above the
interests of consumers to protect their monopoly position. In fact that, in the Southeast
Asian cities which personal income is similar or greater to Ho Chi Minh City, the taxi
cost is much cheaper. Be specific, the average cost for a taxi in Bangkok is
4,500VND/1km, in Manila is 5,600VND, in Jakarta is 7,200VND and even in
Singapore just 10,000VND /1 km. And in Ho Chi Minh City, the charges amounted to
17,000VND for one km. For that reason, the appearance of Uber bring more solutions
for Vietnamese users with a reasonable fare: 7,000 VND/1km for low-priced UberX
and 11,499 VND/1km for luxury UberBlack brand. Despite of leading all price points,
market share of Uber is still modest comparing to domestic taxi companies such as
Vinasun or Mai Linh, especially when those announced to compete Uber by releasing
taxi-calling app on smartphone, Vinasun app and the current competitor GrabTaxi.
The transportation market is a zero sum game where a benefit for one company is a
loss for another. Unlike chat app battle, people can download multiple chat apps and
use them simultaneously, with a car booking app, when a potential customer books on
Uber that is a loss for GrabTaxi. Therefore, in order to stay competitive with all of the
above , Uber should carry out well strategies to attract new customers as well as remain
the current ones. And when the subscribers reach to saturation point in the nearly
future, maintaining loyal customers is an extremely important responsibility. That is
why Uber should find out the appropriate strategies to build up the loyalty of
passengers to help company increase the market share in Vietnam transport market.
3
quickly and come to the better values, Uber with its extra $1.2 billion of funding (Wall
Street Journal) simply provides a better service via its app and high quality cars and
drivers. This slowly eat away at the taxi companies. These scenarios possible will not
play out. Hence, it is very necessary for Uber to conduct a research measuring the
loyalty of their customers. That is the reason why I decided to choose the topic:
4
student, so some skills are limited. Therefore, the result of this study only represented
for taxi Uber services in Ho Chi Minh City only; it is not used to generalize the whole
population.
1.7 Implication
The research is conducted by customers who have been using the mobile app
of Uber in Ho Chi Minh City. The result, hence, provides the overall picture of Uber
taxi in particularly and of taxi companies in generally, at the same time, indicates
which determinants help maintain the existing customers or building the customer
loyalty with company are. Since then, this research will suggest some
recommendations to promote and improve the customer loyalty not only for Uber but
also for all transportation sector in Ho Chi Minh City.
Chapter 1: Introduction
This chapter presents the research background of the thesis, problem statement,
research question, research objectives, scope and implication
This chapter analyzes the data collected and presents the findings of the
research.
5
CHAPTER II: LITERATURE REVIEW
Since then, building customer loyalty is regarded as the main feature in getting
market share in any industry, particularly in this transport market where dominated by
old domestic companies. Nevertheless, it is very challenging to build up the loyalty of
customers (Lovelock & Wirtz, 2011). For a customer to become and remain loyal, he
or she needs to believe that the products or services the organization offers are the best
alternative for him or her (Oliver, 1999; Dhevika & Subramani, 2005). A company can
get the sufficient benefits by remaining the current loyal customers (Pan, Sheng & Xie,
2011).
6
2.2 The role of customer loyalty in taxi industry
In the keen competition environment of the taxi industry, customer loyalty was
measured as the base of competitive advantage and has an essential role on company’s
performance (Rust et al., 2000). The goal of any business is to increase profits through
some combination of lessening costs and surging revenue. However, focusing solely
on gaining new customers may not be the most economical way to increase
profitability. To reach a new customer, firms will have to spend more than five times
as much as to retain an existing one (Kotler and Keller, 2006; Wills, 2009). Customers
who already use the product or service do not require any attraction or marketing costs
because they are already familiar with the company and its product. While the
transportation industry's main focus is not making a profit but to stay competitive in
the transportation market, limited budgets make it important both to find ways to cut
costs and to increase revenue at the same cost. It seems likely that focusing some
efforts to increasing loyalty can do just that.
A loyal customer will continue to purchase or use the product or service in the
future; however, not only do they continue their patronage but they also tend to
increase their purchase volume over time (Reichheld 1996). For example, a person
may start to take the taxi for their commute trip to avoid high downtown parking costs.
If they receive quality service and are satisfied with the service, they will become more
comfortable with this travel option and may start using it to go to work every day.
Another benefit of repeat customers who trust the product or service provider
is that they will be less likely to defect the problems when they have one negative
experience because they know their overall experience has been positive and they trust
that the provider will correct the mistake so that the problem will not repeated. A first-
time taxi rider may never ride again if they happen to be on a taxi that experiences a
long delay, whereas, a loyal rider knows that this is not a common occurrence and this
one bad experience is less likely to cause them to choose another alternative.
8
specific, since quality service is something that clients regularly need and esteem,
providing superb quality service should ostensibly build their eagerness to return and
repurchase more. Research indeed shows that perceived service quality, as measured
by adjusted SERVQUAL scales, in many well-known companies emphatically and
specifically impacts customer loyalty (Zeithaml et al. 1996).
The SERVQUAL, a gap model by Parasuraman, et al. (1988) has been proven
to be one of the appropriate ideal approaches for measuring the customers’ received
service quality. Moreover, it is a hypothetically valid method for measuring perceived
quality of users’ experience in transport. Because of the statement “perceived” and
expected” service, it apparently goes to one individual who unquestionable is a
consumer. Parasuraman, et al. (1985) indicated that five service quality dimensions,
identified by the SERVQUAL instrument, are used in various service organizations
and industries to measure service quality crosswise over industries including transport
service (Zeithaml et al. 1996). When applied SERVQUAL model to analyze in
transport service, Angur et al. (1999) concluded that the best measure of service quality
in transport service is SERVQUAL, which adapted attributes were: reliability,
responsiveness, assurance, empathy and tangibleness (Parasuraman et al., 1988).
2.4.1. Reliability
Parasuraman et al. (1988) stated that reliability is the most important variable
in common service. Reliability refers to take care of customers' services problems;
performing beneficial services right the first run; provide services at the guaranteed
time and keeping an error-free record. Reliability also consists of accurate order
fulfillment; exact in history and quote; correct in billing; accurate figuring of
commissions; keep services guaranteed. Reliability is an essential element of any
transport service. Enhancements in reliability benefit both clients and operators, as less
variable services diminish waiting time for passengers and allow for an efficient use
of resources by players (Nelson Carrasco, 2011).
2.4.2. Responsiveness
Parasuraman et al., 1985 defined responsiveness as the willingness or
preparation of employees to provide service. It involves timeliness of services.
According to Kumar et al. (2009) responsiveness includes understanding needs and
wants of the customers, advantageous working hours, individual consideration given
by the drivers, attention to problems and customers’ safety in their trip. The
9
responsiveness in transport service is the eagerness to help clients within the provided
services. Are employees helpful and ready to provide good service? Do they rapidly
notice to customers about changes in cost and operation schedule as well? Are they
willing to answer customers’ questions? Equally essential is that the management of
transport companies has realized the significance of excellent customer service and
actively works when clients’ needs their help (Ministry of transport, 2006). The greater
customers appreciate on Responsiveness, the higher customer loyalty is.
2.4.3. Empathy
Empathy was defined as the binding and individual thought the firm provides
its clients such as employees who understand the needs to pay personally attention to
their customers and advantageous business hours for customers (Parasuraman et al.
1985). To support that point, Ananth et al. (2011) referred to empathy in their research
on passenger transport service as giving convenient operating hours; giving personal
attention; and understand clients’ requirements. The higher customers appreciate on
Empathy, the higher customer loyalty is.
2.4.4. Assurance
Parasuraman et al. (1985) defined assurance as knowledge and cordiality of
employees and their approachability to inspire confidence and trust. In transport
section, assurance implies the polite and amiable employees and an ensured trip quality
to ensure passengers arrive at destination safely (Sadek et al., 2010). The higher
customers appreciate on Empathy, the higher customer loyalty is.
2.4.5. Tangibeness
According to Parasuraman, et al. (1985), tangibleness is defined as the
appearance of physical attitude as personnel, equipment or written materials. In the
study of transportation, tangibility includes modern looking equipment, physical
facility, and employees are well-dressed and materials are visually appealing. (Ananth,
et al., 2011). The location, the officers, the cars also take account of tangibleness
factor.
Deutsch (1958) and Fukuyama (1995) argue about the important and necessary
of trust, because it is almost impossible to determine the business agreement fully and
rely on the other party not to take unfair advantage and not to engage in opportunistic
conduct without trust. According to Gefen (2000, 2002) research in e-commerce,
customer trust will refrain from unethical, opportunistic and undesirable behaviors. In
like manner, taxi industry, also has disreputable behaviors such as imprecise pricing,
presenting inaccurate route and distributing individual information without
permission.
11
product or service to non-users and vice versa. Specifically, Sharma (2003) stated that
trust is a critical factor for a stable relationship. In 2011, research from Aurier and de
Lanauze’s noted that relationship between trust and attitudinal loyalty is causal.
Similarly, to gain the loyalty of customers, a business must first gain their trust
(Reichheld and Schefter, 2000). Moreover, support for those ideas comes from
research Gefen (2000) showing that the more customers who have experience in doing
business with the supplier, trust that service, the more they prefer to repurchase that
same service. Accordingly, it is hypothesized that:
12
H4: Customer trust has a positive impact on perceived risk
13
(Gefen, 2002)
The second set for this construct is the basic relationship between customer
loyal, customer trust and perception of risk. Specifically, for online purchasing,
customer trust is significantly necessary to increase customer loyalty through
diminishing customers’ perceived risk (Reichheld and Schefter 2000).
In addition, as hypothesized in Gefen (2002), customer loyalty in e-commerce
increased with dimensions of service quality both directly and indirectly through
customer trust.
2.11.2 Conceptual framework
In a competitive market, developing and sustaining the customer loyalty
becomes the biggest challenge in any multidimensional construct. The conceptual
framework of this study is adjusted from the model suggested by David Gefen (Journal
of the Association for Information Systems Volume 3, 2002), that conducted study of
the customer loyalty in e-commerce. The reason is that choosing this model helps to
make sure the strong relationship with perspective used to examine customer loyalty.
This conceptual model includes dimensions of SERVQUAL, customer trust, switching
cost and perceived risk in order to examine whether the customer loyalty can be
increased both directly and indirectly from customer trust in transportation of Vietnam.
However, based on Jones and Sasser (1995), if the products or service can be offered
by various suppliers, the switching cost is very low. Currently, Vietnam transportation
is dominated by many taxi companies with similar service method such as GrabTaxi
or Vinasun with developing process to create Vinasun app. Moreover, these creative
technology are free to use and not exclusive or unique make switching cost factor high.
Be specific, the process for changing to another providers is not difficult and take much
time. Consequently, switching cost is modified not to appear in this conceptual model.
This chapter presents brief description of the research methodology used in this
project. This includes proposed research model, research methodology; sample
selection methods, data collection methods and data analysis methods and so on which
brings a thorough road map of study is provided next.
14
Figure 2: Proposal conceptual framework
15
CHAPTER III: INTRODUCTION ABOUT UBER COMPANY
3.1 Introduction
Uber Technologies Inc. was established in March 2009. Main company’s
business line is an American multinational online transportation network company. It
develops, markets and operates the Uber mobile app, which allows consumers with
smartphones to submit a trip request which is then routed to Uber drivers who use their
own cars. As of April 12, 2016, the service was available in over 60 countries and 404
cities worldwide.
In June 2014, Uber officially launched in Vietnam and it has transformed the
way people move around Ho Chi Minh City and Hanoi with a more reliable and
efficient transportation option. After 10 months, the response from riders and drivers
has been overwhelming and they have made Vietnam one of the fastest growing
markets ever, the second-fastest growing market after China and has surpassed major
cities like London, Paris, San Francisco and Singapore. Vietnamese consumers clearly
love choice and Uber is committed to providing more choice for everyone. From April
2015, Uber thrilled to launch our most affordable ridesharing option – UberX in Hanoi
and Ho Chi Minh City
Uber process through customer requests from a smartphone app and Uber
sends its nearest driver to their location, using the phone’s GPS. Then, the fare is
precise predictable charged directly to your credit card. Moreover, Uber provides five
types of services: UberX, Uber Taxi, Uber Black, Uber SUV and Uber Lux. However,
in Vietnam, there are only two possible: UberX the cheapest option which allows for
the hiring of livery car drivers with a smartphone and UberBlack a private hire car.
Uber development in the hope of connecting individuals having cars and possible
business by private cars, so people who have a car and license can register to the Uber
Company. According to the company website, all ride-sharing and livery drivers are
thoroughly screened and the company conducts ongoing reviews of drivers’ motor
vehicle records throughout their time with Uber.
16
3.2 Organization structure
The drivers are friendly and safe with a rating system allows for transparency
and accountability to drivers. In addition, Uber cars are better, they are cleaner, newer
and have option of car classes. And also the better customer service: issues dealt with
quickly and fare often refunded when client unsatisfied with service, proactive
customer service when driver poorly rated and promotions, coupons, referral bonus.
17
Lastly, Uber hires more than 50,000 drivers worldwide each months, created jobs for
more than 15,000 people in Vietnam (Dang Viet Dung, Uber Director in Vietnam).
Driver managing is also a problem Uber company need to solve. There are
many allegation of the driver quality: unknown driver trainer, some Uber drivers have
less knowledge of the roads and routes and drivers’ nature and extent of background
check done by Uber unknown. Finally, surge pricing in rush hours of Uber meets a lot
of complaints from the customers.
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CHAPTER 4: RESEARCH METHODOLOGY
The statements in the questionnaire is clear and easy to understand, avoid making
respondents confused and bewildered. Besides, all the items in questionnaire are self-
designed by adapting from SERVQUAL scale and Gefen (2002).
These questions are designed as a clear statements expressing attitude toward the issue
with the five-point Likert Scale applied to judge the statement from (1) totally disagree;
(2) disagree, (3) neutral; (4) agree; (5) totally agree.
19
Table 4. 1: Measurement Scales
journey Zeithaml
and Bitner,
2000
Responsive RES1 Drivers always perform service promptly Bahram
ness and professionally Kheiry,
RES2 Drivers are always willing to help customers Maryam
Uber can provide timely and efficient service Alirezapou
RES3 Drivers informs customers any changes of r (2012)
timetable in advance
RES4
Assurance ASS1 Drivers control taxi safely and carefully
ASS2 Drivers’ behavior and service style are
professional
ASS3 I feel safe during the journey
ASS4 I feel fulfilled with Uber’s fare
Empathy EM1 Drivers always looks after the best interests
of their customers
EM2 Uber company has operating hours
convenient to all their customers
EM3 Uber provides various forms of payment (in
cash or by credit card)
EM4 Uber taxis are present at many places being
ready to serve customers
Tangiblene TAN1 Uber taxis is new and modern Valerie A.
ss TAN2 The inside cars are clean and professional Zeithaml,
(seat, perfume, air-conditioner, …) and
20
TAN3 Drivers are well-dressed and appear neat Leonard L.
TAN4 Uber have car options (UberX, UberBlack) Berry,
to fulfill customers’ needs Journal of
Marketing,
Fall 1985.
Customer CT1 I believe in the information which Uber Jarvepaa,
trust services provide Tractinsky
CT2 Uber has good will reputation to make me & Vitale,
feel comfortable using online payment (visa, 2000
sms banking, etc.)
CT3 I believe that the errors while using Uber
services rarely occur
CT4 I believe that advances in technology
security will protect me more while using
Uber services.
Perceived PR1 I totally feel secure about the safety when
risk using Uber taxis (careless checking drivers’
backgrounds, etc.)
PR2 I totally feel secure about qualification of
drivers
PR3 I totally feel secure about the accuracy of fare
I totally feel secure that other people cannot
PR4 know my personal information concerning
my online payment
Customer CL1 I often mention about the advantages of Uber Nguyen
loyalty to other people and
CL2 I introduce Uber whenever there are Leblanc
someone mention about transport service (1991)
CL4 I suggest friends and family using Uber taxi
CL3 The first transportation I think about is Uber
21
4.3 Data collection
The primary data will be compiled from the target population who have used
Uber taxi. The respondents should have enough experience and knowledge to
understand the questionnaire. Moreover, with the diversity of place, the data will be
collected fairly. And the alumni, who can give us the particular comparison and
discussion, are also a source of respondents.
The questionnaire will be spread out by web-based form (via available email
and social network address) and paper form. Questionnaires were asked to 126
students in HCM National University. The others were conducted through the mail and
google survey to office staffs of such companies Phu Thai Group, Viet Tien Garment
Corporation, Owen Garment Company, and etc. Firstly, the pilot study result will go
through some analysis in SPSS, as Cronbach’s Alpha, EFA, to test the validity and
reliability of the scale. Then, the full-scale study begins, and in this phase, the collected
data will be handled by some further analysis by AMOS software besides the SPSS.
Descriptive statistics: raw data after being collected through the survey is
transformed into meaningful information that describes the frequency, the measure of
tendency and dispersion.
22
computed concerning of average intercorrelations among items measuring the
concepts.” (Canava, R. Y., Delahaye, B. L. & Sekaran, U., 2001).
Factor analysis: factor analysis looks at the way each respondent completed the
opinion items and then compares together. Finally, factor analysis comes up with the
suggestion that certain items are included in particular factors/clusters (Canaval et al.,
2001). It helps to find out the elements influencing customer loyalty to Internet service
provider in Ho Chi Minh City.
23
CHAPTER V: DATA ANALYSIS & RESEARCH RESULT
According to this formula, this study has 32 items, the appropriate sample size
for this given population would be about 120, and we will distribute 300 questionnaires
to this target population just in case some unsuitable responses exist.
After collecting and checking, some observations were found to have the same
answers or incomplete, so there are 301 samples to primary tests.
5.2 Demographic
Table 5. 1: Gender
The sample is 301 people who has experience with Uber taxi, which has rate
of female higher than male.
Table 5. 2: Age
24
The result of the surveys about age has high percentage rate is medium-age
from 26 to 45, who have worked and require to travel a lot.
Table 5. 3: Job
According to the result, it show that there are high percentage belongs to
student and office staff, about 69.8% of the total sample.
Table 5. 4: Income
Table 5. 5: Usage
Conclusion:
25
From tables above, it is obvious to see over half of the sample is female
(53.8%). The most respondents are young and medium-aged people with more than
70%. Moreover, the majority of respondents are students and official staffs to wages
not so high salary, about 37.2% under VND 3 million. Lastly, the times respondents
use Uber per month is low, 34.6% less than 1 time and 46.2% use taxi 1-3 times.
26
Drivers informs customers any 301 1 5 3,74 ,917
changes of timetable in advance
ASS Drivers control taxi safely and 301 2 5 3,52 ,764
carefully
27
Uber has good will reputation to 301 1 5 3,56 ,841
make me feel comfortable using
online payment (visa, sms banking,
etc.)
I believe that the errors while using 301 2 5 3,64 ,802
Uber services rarely occur
I believe that advances in 301 1 5 3,71 ,841
technology security will protect me
more while using Uber services
PR I totally feel secure about the safety 301 1 5 2.24 ,917
using Uber taxis (careless checking
drivers’ backgrounds, etc.)
28
301
Valid N (listwise)
(Source: data)
Reliability
The mean of all six items are calculated at the average of 3.122 > 3.
Compare to other factors, the lowest value means that customers do not impress much
to the reliable quality when decide to use taxi, especially the item “Uber always ensures
fare accurately” when it reaches highest mean in reliability.
Responsiveness
Assurance
The result shows that the average mean is high about 3.632 > 3. That implies
the necessary of creating safe feeling for passengers.
Empathy
The average mean of empathy is 3.727 > 3. It means that people who do the
survey have high expectation to the receiving benefits from the provider.
Tangibleness
Customer trust
Perceived risk
29
The result of average mean is high, 2.215 < 3. Despite of new and modern
technology of Uber, customers are still concern about the drivers’ background and
disadvantages of taxi Uber.
Customer loyalty
Being the goal of this research, customer loyalty’s average mean is the
highest 3.812 > 3. Therefore, increasing customer loyalty is significantly important.
30
REL4 ,730 ,813 ,730 ,813
Responsiven ,909 ,909
ess
RES1 ,811 ,876 ,811 ,876
RES2 ,805 ,880 ,805 ,880
RES3 ,771 ,891 ,771 ,891
RES4 ,795 ,883 ,795 ,883
Assurance ,671 ,776
ASS1 ,563 ,527 ASS4 ,614 ,697
ASS2 ,582 ,507 was ,605 ,708
ASS3 ,567 ,523 removed ,619 ,690
ASS4 ,133 ,776
Empathy ,727 ,876
EM1 ,704 ,542 EM3 was ,779 ,809
EM2 ,711 ,541 removed ,746 ,840
EM3 ,059 ,876 ,761 ,826
EM4 ,677 ,565
Tangiblenes ,614 ,802
s
TAN1 ,574 ,390 TAN2 ,641 ,737
TAN2 -,043 ,802 was ,634 ,746
TAN3 ,526 ,446 removed ,672 ,704
TAN4 ,615 ,353
Customer ,861 ,861
trust
CT1 ,742 ,809 ,742 ,809
CT2 ,680 ,835 ,680 ,835
CT3 ,698 ,827 ,698 ,827
CT4 ,713 ,821 ,713 ,821
Perceived ,742 ,853
risk
PR1 ,685 ,594 PR4 was ,692 ,825
PR2 ,650 ,613 removed ,723 ,796
31
PR3 ,702 ,577 ,760 ,760
PR4 ,152 ,853
Customer ,835 ,835
loyalty
CL1 ,589 ,823 ,589 ,823
CL2 ,629 ,807 ,629 ,807
CL3 ,741 ,756 ,741 ,756
CL4 ,703 ,774 ,703 ,774
Reliability
Responsiveness
Reliability analysis for responsiveness show that four items have high
correlation of over 0.5 with Cronbach’s alpha is 0.909, with all items also had
Corrected Item-Total Correlations that were higher than 0.3 and there were no
“Cronbach’s alpha if deleted”
Assurance
With the reliability test assurance, Cronbach’s alpha is 0.671 < 0.7, which is
unacceptable internal consistency reliability. Moreover, factor ASS4 has an
insufficient item to total correlation; therefore, ASS4 should be eliminated from the
questionnaire. After removing ASS4, the Cronbach’s alpha of assurance is better with
0.776 and three items remain
Empathy
The result of Cronbach’s alpha after testing empathy is acceptable with 0.727.
However, the Corrected Item-Total Correlation of EM3 is not satisfying the standard
level. Consequently, the empathy scale is reliable with 0.876 when item EM3 deleted.
Tangibleness
32
The Cronbach’s alpha after testing tangibleness was 0.614 with Corrected
Item-Total Correlations of TAN2 is insufficient to the standard level and have to be
removed. Thereafter, the Cronbach’s alpha of tangibleness goes up to 0.802 which is
very good for this construct.
Customer trust
In the dimension of trust, the Cronbach’s alpha is relatively good with 0.861.
Moreover, there are no items have Corrected Item-Total Correlation less than 0.3 and
no item which can increase the total Cronbach’s alpha if deleted. Therefore, all items
of CTs are retained
Perceived risk
Customer loyalty
The test of reliability was conducted for the overall Cronbach’s alpha of
customer loyalty from CL1 to CL4 is 0.835, which is very good. In addition, Corrected
Item-Total Correlations of all measurements items are over 0.3, then items of CL are
retained all for EFA.
33
Table 5. 8: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. ,895
Bartlett's Test of Approx. Chi-Square 4556,624
Sphericity df 378
Sig. 0,000
Rotation Sums of
Extraction Sums of Squared Loadings Squared Loadings
Total % of Variance Cumulative % Total
8,572 30,613 30,613 5,010
2,225 7,948 38,560 4,120
1,784 6,370 44,931 5,464
1,601 5,719 50,650 4,228
1,194 4,266 54,916 6,132
,894 3,193 58,108 4,816
,799 2,854 60,963 5,416
,720 2,573 63,536 3,115
Factor
1 2 3 4 5 6 7 8
RES1 ,871
RES2 ,868
RES4 ,829
RES3 ,815
REL4 ,828
REL3 ,795
REL1 ,780
REL2 ,717
CL3 ,881
CL4 ,781
CL2 ,612
34
CL1 ,601
EM1 ,905
EM4 ,817
EM2 ,795
CT4 ,818
CT2 ,786
CT1 ,777
CT3 ,625
TAN4 ,769
TAN3 ,768
TAN1 ,717
PR3 ,902
PR2 ,749
PR1 ,702
ASS3 ,747
ASS2 ,738
ASS1 ,723
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
Based on the results in Table 5.8, KMO is equal to 0.895 which is very good
for testing the partial correlation among variables. Moreover, the significant level of
Barlett’s test is 0.000., which is good to support the factorability of correlation
matrix.
In table Total Variance Explained, the result is that there were 8 components
extracted with the Rotation Sums of Squared Loadings with cumulative value is
63.536% > 50%, which showed that these factor explained 63.536 percent of data
variance.
Based on the table, it is obvious that 28 items were grouped into eight
components because all the variables have cross-factor loading are over the
satisfactory level (0.5).
35
In addition, this study conducts SEM with second-order factor is service quality
that constructed by variables reliability, responsiveness, assurance, empathy and
tangibleness.
36
Comparative fit index 0.991 > 0.9 0.994 > 0.9
(CFI)
Turker-Lewis Index (TLI) 0.989 > 0.9 0.992 > 0.9
Root mean squared errer 0.020 < 0.05 0.017 < 0.05
of approximation
(RMSEA)
There are eight variables and a total of 28 indicators were used to conduct CFA.
Following this analysis, Modification Indices are testing and co-variances are
examined if the modified model can result in better fit. After establishing covariance
between errors (which modification indicates more than 7) and conducting second
CFA test, the result is better with six indices used to evaluate model fits are all
qualified. This proved that the measurement model is very good in fitting with the data.
In conclusion, after testing the second CFA, the measurement model meets criteria for
convergent validity as well as the result cannot be much better.
The construct reliability based on table 5.15, all composite reliability (CR) of
eight contexts are higher than 0.7 with acceptable study that fluctuate between 0.777
and 0.91, which is satisfied the standard level to ensure the reliability with
Cronbach’s alpha criteria.
37
Estimate S.E. C.R. P Label
REL3 <--- REL 1,061 ,078 13,539 ***
REL1 <--- REL ,973 ,071 13,627 ***
REL2 <--- REL 1,055 ,082 12,936 ***
CL3 <--- CL 1,000
CL4 <--- CL ,974 ,067 14,556 ***
CL2 <--- CL ,873 ,067 12,943 ***
CL1 <--- CL ,771 ,065 11,780 ***
EM1 <--- EM 1,000
EM4 <--- EM ,958 ,058 16,596 ***
EM2 <--- EM ,933 ,058 16,136 ***
CT4 <--- CT 1,000
CT2 <--- CT ,948 ,074 12,735 ***
CT1 <--- CT 1,052 ,073 14,434 ***
CT3 <--- CT ,992 ,073 13,645 ***
TAN4 <--- TAN 1,000
TAN3 <--- TAN ,825 ,070 11,747 ***
TAN1 <--- TAN ,937 ,079 11,898 ***
PR3 <--- PR 1,000
PR2 <--- PR ,936 ,060 15,701 ***
PR1 <--- PR ,855 ,058 14,684 ***
ASS3 <--- ASS 1,000
ASS2 <--- ASS 1,047 ,104 10,079 ***
ASS1 <--- ASS ,982 ,096 10,218 ***
Estimate
RES1 <--- RES ,867
RES2 <--- RES ,855
RES4 <--- RES ,850
RES3 <--- RES ,814
REL4 <--- REL ,779
REL3 <--- REL ,841
REL1 <--- REL ,750
REL2 <--- REL ,806
CL3 <--- CL ,828
CL4 <--- CL ,791
CL2 <--- CL ,720
CL1 <--- CL ,661
EM1 <--- EM ,852
EM4 <--- EM ,846
EM2 <--- EM ,818
CT4 <--- CT ,767
CT2 <--- CT ,726
38
Estimate
CT1 <--- CT ,827
CT3 <--- CT ,797
TAN4 <--- TAN ,799
TAN3 <--- TAN ,730
TAN1 <--- TAN ,748
PR3 <--- PR ,855
PR2 <--- PR ,810
PR1 <--- PR ,776
ASS3 <--- ASS ,740
ASS2 <--- ASS ,725
ASS1 <--- ASS ,735
Based on the above table, it can be clearly seen that all factors loading were
statically significant (p < .001). Moreover, all standardizing load values are all over
than 0.5, which shows that currently all items are acceptable for further analyzing.
Max
CR AVE MSV R(H) PR RES REL CL EM CT TAN ASS
PR 0,855 0,663 0,417 0,860 0,814
RES 0,910 0,717 0,274 0,943 0,347 0,847
REL 0,873 0,632 0,165 0,959 0,293 0,383 0,795
CL 0,839 0,567 0,417 0,967 0,646 0,396 0,368 0,753
EM 0,877 0,704 0,305 0,973 0,447 0,275 0,212 0,318 0,839
CT 0,861 0,609 0,348 0,977 0,590 0,523 0,406 0,562 0,552 0,780
TAN 0,803 0,577 0,325 0,979 0,558 0,402 0,298 0,519 0,403 0,570 0,760
ASS 0,777 0,538 0,199 0,981 0,419 0,208 0,183 0,446 0,232 0,300 0,255 0,733
39
5.8.3 Discriminant Validity
Regarding examining discriminant validity, table 5.15 indicated that all MSV
and ASV are less than values of AVE, and all square root of AVE are greater than
inter-construct correlations. Therefore, the criteria of discriminant validity has been
met.
5.9 SEM analysis
After CFA confirmed that the model is realiable and valid, conducting the
SEM for the full model including measurement model and structural model is the
next step. Similar to several fit indices, the competence of the model was measured
by analyzing the chi-square value. According to a rule of thumb, if chi-square value
is less than 3, various model fit indices (e.g., CFI, TLI, GFI and RMSEA) will be
judged for the fit of the model. In the same way of evaluating CFA, goodness-of-fit
criteria of SEM were regarded with data from the survey to evaluate whether SEM
fits with data: chi-square/df < 5 (n > 200) or chi-square/df < 3 (n < 200), CFI, TLI
and GFI is range from 0.9 to 1 and RMSEA < 0.08.
40
Table 5. 16: P-value used for testing the hypotheses
Service
Customer trust <--- 1.148 .145 7.896 ***
quality
Customer
Perceived risk <--- -.821 .088 -9.361 ***
trust
Service
Responsiveness <--- 1.000
quality
Service
Reliability <--- .721 .120 6.014 ***
quality
Customer Service
<--- .487 .106 4.583 ***
loyalty quality
Service
Empathy <--- 1.117 .166 6.718 ***
quality
Service
Tangibleness <--- 1.028 .143 7.209 ***
quality
Service
Assurance <--- .456 .095 4.785 ***
quality
Customer Perceived
<--- -.275 .055 -5.012 ***
loyalty risk
41
Estimate S.E. C.R. P Label
Estimate
CT <--- SQ .912
PR <--- CT -.629
42
Estimate
EM <--- SQ .565
CL <--- SQ .883
CL <--- CT -.471
CL <--- PR -.405
43
Estimate
In summary, one of eight hypotheses is rejected and the seven remaining are
supported from structural equation modeling results. The table below shows the results
of all hypotheses testing:
44
H5: Perceived -0.405 -5.117 *** Supported -0.394 -5.012 ***
risk has a
negative impact
on customer
loyalty
***p < 0.001, **p < 0.01, *p < 0.05
As shown in Table 5.17, it could be seen that the results of the final model
reject the path between customer trust and customer loyalty when the p-value of
hypothesis 3 is over 0.05. Difference from proposed model of Gefen (2002), customer
loyalty is not effected directly from customer trust. Discusses about the results of
hypotheses below.
On the other hand, contrary to the proposed model of Gefen (2002) argued that
customer loyalty can be increased by service quality directly through customer trust in
e-commerce section, hypotheses 3 proposes that the relationship between customer
trust and customer loyalty is rejected because its p-value equal to 0.228 > 0.05. One
explanation for this could be in the market of Vietnam, the trustful level among
customers is not much high, which caused by the fear of being taken advantages of
among Vietnamese people, especially when there are many news about inappropriate
behaviors of taxi drivers. In term of relationship with perceived risk, customer trust is
supported to have a negative impact on risk perception with highly significant
45
standardized coefficient -0.627 and at the 0.001 level of significant, which is also
corroborates with findings previous study (Reichheld and Schefter 2000, Mayer et al.
1995). That is to say, the customer trust still impact on customer loyalty through
mediating perceived risk through the negative influencing of perceived risk on
customer loyalty with standardized coefficient -0.394 at significant 0.001.
Besides the testing of direct effects, SEM can be applied to test whether the
customer trust’s indirectly impact on customer loyalty was supported if flow only
through perceived risk. The result of this indirect standardized coefficient is 0.247.
46
CHAPTER VI: CONCLUSION & IMPLICATION
6.1 Conclusion
The purpose of this study investigated the relationship between service
quality, customer trust, perceived and customer loyalty. The model in this research is
modified from the model of David Gefen in Journal of the Association for
Information System (Volume 3, 2002) about the customer loyalty in e-commerce.
47
(1994) that trust affects long-term orientation by decreasing perceived risk of
customers.
6.2 Implications
The theoretical purpose of this study is to make an effort by applying the model
in e-commerce of Gefen (2002) to the transport industry to discover whether there are
relationships between service quality, customer trust, and perceived risk and theirs
influences on customer loyalty. In this regard, the study examines how important
service quality and customer trust are for overall transport generally and Uber
particularlly.
According to Reichheld and Sasser (1990), it is more advisable and less costly
to concentrate on creating with loyal customers a trust-based relationship more than
spend efforts on gaining new customers. However, there are many dimensions in
service quality for providers to find and increase them. As the result, this study also
suggests guidelines that the most important dimensions of service quality from high to
low are tangibleness, empathy, reliability, responsiveness, and assurance.
The current study also indicated two aspects of trust: whether it impacts
directly to customer loyalty or whether this is done indirectly through perceived risk.
Because of the difference in industry and point of view, the relationship between
customer trust and loyalty is rejected in this study, which might imply that Vietnamese
passengers tend not to trust to the providers without a low perceived risk.
6.3 Recommendation
This research confirmed once again the role of service quality towards the
loyalty of customers. Therefore, in order to increase customer loyalty, Uber should
pay more attention to their service quality. Among the attitudes of service quality, the
high to low impact are tangibleness, empathy, reliability, responsiveness and
assurance.
Tangiblenes
The car quality should be assessed equally to the service. As reported in this
research, appearance is the most important competitive advantages of Uber. Because
of their various types of car, Uber service can be valued as a tangible expression of
consumers’ lifestyles through luxurious UberBlack. Therefore, Uber need to keep
48
observing and updating the quality of cars not for outlook only, but also for the
experience of clients.
Besides the quality of cars, Uber should pay more attention to their quantity.
The reason is that Uber currently converge essentially in HCM or HN City and
ignore the potential market in other cities, which could be a loss for Uber.
Accordingly, it is necessary for Uber to collect customers’ ideas for expanding their
operating area.
Although the strategy “surge pricing” that the fare increases during rush
hours is an elusive situation, Uber should make the surge pricing as a true live
auction by let the passengers decide how much they are willing to pay, and Uber can
provides an estimate of how much waiting time that will give them. In other words,
Uber should give customer a choice – have a queuing time for an available car or a
surge price to jump the queue.
Reliability
At the heart of any operations and logistics companies, one of the key
components of their success is optimizing for speed pickup and speed of route. There
are many inconveniences of pickup speed not only for customers, but also for the
drivers. Be more specific, during driving passenger to destination, the drivers must
mark as dropped off in app, after that they have to ride around to find other
passengers for another circle. The recommendation here is that the drivers should be
told the next pickup while they are working in order to reduce the waiting time.
Responsiveness
While the initial magic of Uber was the ability to summon a cab in minutes,
at this point, it is convenient for loyal customers but not for non-users. There are a
number of times that customers need to book in advance for a meeting or the airport.
By developing Uber for a taxi booking app, which may sync with smartphone
calendar and let people choose when they would like to advance book trips for, Uber
will be more operationally efficient.
Besides the impact of service quality, customer loyalty also has influence
from perceived risk. The uncertain possibilities and affordable price cause customers
49
to search more information about the service. However, Uber has faced many flawed
news because of the relationship between domestic taxi companies and media, which
would affect adversely to their loyal customers. Therefore, one solution is that Uber
should focus on goodwill marketing and loyalty programs such as a discount on
surge or a free airport ride if passengers hit 20 rides in one month.
6.4 Limitation
Firstly, the major limitation of this study is that data were collected relating to
only one well-known taxi company, which may skwed the results with the rejecting
of the path from customer trust to customer loyalty.
Finally, there are many newbies had few experience in using Uber and they
might not use all provided service such as UberBlack. Besides, because of the
difference in knowledge and education, some surveys were not done as well as their
thought.
50
REFERENCES
Gefen, D. (2002). “Customer Loyalty in E-Commerce”, Journal of the
Association for Information System, Vol. 3
Grönroos, (1984) "A Service Quality Model and its Marketing Implications",
European Journal of Marketing, Vol. 18 Iss: 4, pp.36 – 44
51
Maneesh Kumar, Niraj Kumar, (2016) "Three dimensions of service recovery:
examining relationship and impact", Supply Chain Management: An International
Journal, Vol. 21 Iss: 2, pp.273 - 286
C.C. Deng, H.L. Ong, B.W. Ang, T.N. Goh, (1992) "A Modelling Study of a
Taxi Service Operation",International Journal of Operations & Production
Management, Vol. 12 Iss: 11, pp.65 - 78
52
APPENDICES
Appendix A
Reliability (REL)
Reliability Statistics
Cronbach's N of
Alpha Items
,861 4
Descriptive Statistics
N Minimu Maximu Mean Std.
m m Deviation
REL1 301 1 5 3,08 ,970
REL2 301 1 5 3,26 ,979
REL3 301 1 5 3,03 ,943
REL4 301 1 5 3,12 ,959
Valid N
301
(listwise)
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
REL1 9,41 6,135 ,704 ,824
REL2 9,23 6,184 ,681 ,833
REL3 9,46 6,215 ,713 ,820
REL4 9,37 6,086 ,730 ,813
Responsiveness
53
N %
Valid 301 100,0
Cases Excludeda 0 ,0
Total 301 100,0
a. Listwise deletion based on all
variables in the procedure.
Reliability Statistics
Cronbach's N of
Alpha Items
,909 4
Descriptive Statistics
N Minimu Maximu Mean Std.
m m Deviation
RES1 301 1 5 3,76 ,967
RES2 301 1 5 3,88 1,026
RES3 301 1 5 3,75 ,921
RES4 301 1 5 3,74 ,917
Valid N
301
(listwise)
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
RES1 11,37 6,594 ,811 ,876
RES2 11,25 6,343 ,805 ,880
RES3 11,38 6,964 ,771 ,891
RES4 11,40 6,887 ,795 ,883
Assurance
54
a. Listwise deletion based on all
variables in the procedure.
Descriptive Statistics
N Minimu Maximu Mean Std.
m m Deviation
ASS1 301 2 5 3,52 ,764
ASS2 301 1 5 3,80 ,826
ASS3 301 2 5 3,66 ,773
ASS4x 301 2 5 3,55 ,680
Valid N
301
(listwise)
Reliability Statistics
Cronbach's N of
Alpha Items
,671 4
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
ASS1 11,01 2,683 ,563 ,527
ASS2 10,74 2,481 ,582 ,507
ASS3 10,87 2,653 ,567 ,523
ASS4
10,99 3,860 ,133 ,776
x
Reliability Statistics
Cronbach's N of
Alpha Items
,776 3
Item-Total Statistics
55
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
ASS1 7,46 1,963 ,614 ,697
ASS2 7,19 1,827 ,605 ,708
ASS3 7,32 1,932 ,619 ,690
Empathy
Descriptive Statistics
N Minimu Maximu Mean Std.
m m Deviation
EM1 301 1 5 3,74 1,131
EM2 301 1 5 3,73 1,100
EM3x 301 1 5 3,57 ,955
EM4 301 1 5 3,87 1,091
Valid N
301
(listwise)
Reliability Statistics
Cronbach's N of
Alpha Items
,727 4
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
EM1 11,17 5,190 ,704 ,542
EM2 11,18 5,290 ,711 ,541
56
EM3
11,35 8,854 ,059 ,876
x
EM4 11,04 5,458 ,677 ,565
Reliability Statistics
Cronbach's N of
Alpha Items
,876 3
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
EM1 7,60 4,033 ,779 ,809
EM2 7,61 4,258 ,746 ,840
EM4 7,47 4,243 ,761 ,826
Tangibleness
Reliability Statistics
Cronbach's N of
Alpha Items
,614 4
Descriptive Statistics
N Minimu Maximu Mean Std.
m m Deviation
57
TAN1 301 1 5 3,60 ,949
TAN2x 301 1 5 3,04 ,828
TAN3 301 1 5 3,67 ,857
TAN4 301 1 5 3,66 ,948
Valid N
301
(listwise)
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
TAN1 10,37 3,134 ,574 ,390
TAN2
10,93 5,448 -,043 ,802
x
TAN3 10,30 3,536 ,526 ,446
TAN4 10,31 3,034 ,615 ,353
Reliability Statistics
Cronbach's N of
Alpha Items
,802 3
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
TAN
7,33 2,588 ,641 ,737
1
TAN
7,26 2,871 ,634 ,746
3
TAN
7,27 2,524 ,672 ,704
4
58
N %
Valid 301 100,0
Cases Excludeda 0 ,0
Total 301 100,0
a. Listwise deletion based on all
variables in the procedure.
Descriptive Statistics
N Minimu Maximu Mean Std.
m m Deviation
CT1 301 1 5 3,71 ,820
CT2 301 1 5 3,56 ,841
CT3 301 2 5 3,64 ,802
CT4 301 1 5 3,71 ,841
Valid N
301
(listwise)
Reliability Statistics
Cronbach's N of
Alpha Items
,861 4
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
CT1 10,91 4,469 ,742 ,809
CT2 11,06 4,566 ,680 ,835
CT3 10,98 4,656 ,698 ,827
CT4 10,91 4,473 ,713 ,821
59
Total 301 100,0
a. Listwise deletion based on all
variables in the procedure.
Descriptive Statistics
N Minimu Maximu Mean Std.
m m Deviation
PR1 301 1 5 2.24 .917
PR2 301 1 5 2.29 .962
PR3 301 1 5 2.20 .974
PR4x 301 1 5 2.13 .785
Valid N
301
(listwise)
Reliability Statistics
Cronbach's N of
Alpha Items
,742 4
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
PR1 11,38 4,122 ,685 ,594
PR2 11,43 4,066 ,650 ,613
PR3 11,34 3,873 ,702 ,577
PR4x 11,27 6,299 ,152 ,853
Reliability Statistics
Cronbach's N of
Alpha Items
,853 3
Item-Total Statistics
60
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
PR1 7,51 3,191 ,692 ,825
PR2 7,56 2,974 ,723 ,796
PR3 7,48 2,850 ,760 ,760
Reliability Statistics
Cronbach's N of
Alpha Items
,835 4
Item-Total Statistics
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted
CL1 11,48 3,504 ,589 ,823
CL2 11,42 3,338 ,629 ,807
61
CL3 11,43 3,120 ,741 ,756
CL4 11,44 3,154 ,703 ,774
Appendix B
Result of Exploratory Factor Analysis (EFA)
Communalities
Initial Extractio
n
REL1 ,537 ,607
REL2 ,535 ,560
REL3 ,565 ,636
REL4 ,577 ,667
RES1 ,704 ,765
RES2 ,682 ,750
RES3 ,614 ,663
RES4 ,688 ,723
ASS1 ,430 ,531
ASS2 ,438 ,551
ASS3 ,424 ,549
EM1 ,647 ,767
EM2 ,616 ,667
EM4 ,638 ,723
TAN
,475 ,552
1
TAN
,494 ,580
3
TAN
,521 ,630
4
CT1 ,611 ,682
CT2 ,498 ,565
CT3 ,586 ,627
CT4 ,555 ,640
PR1 ,579 ,609
62
PR2 ,582 ,638
PR3 ,638 ,790
CL1 ,420 ,434
CL2 ,481 ,512
CL3 ,612 ,736
CL4 ,552 ,637
Extraction Method:
Principal Axis Factoring.
Factor Matrixa
Factor
1 2 3 4 5 6 7 8
CT1 ,701
CT3 ,695
PR3 ,661 -,457
CT4 ,646 -,324
CL3 ,632 ,344 ,362
PR2 ,621 -,312
PR1 ,618
CL4 ,604
CT2 ,595 -,327
RES2 ,593 ,447 -,325
RES4 ,585 ,485
CL2 ,583
RES1 ,583 ,469 -,397
TAN
,575 -,319 ,376
4
RES3 ,557 ,419 -,317
TAN
,542 ,378
1
CL1 ,538
EM2 ,535 -,358
EM4 ,529 -,390 ,357
TAN
,518 ,405
3
REL2 ,471 ,356 ,312 ,335
REL3 ,453 ,434 ,398
REL1 ,422 ,447 ,302 ,362
EM1 ,486 -,498 ,348
REL4 ,456 ,384 ,309 ,458
ASS2 ,376 ,475
ASS3 ,355 ,303 ,443
ASS1 ,328 ,316 ,436
Extraction Method: Principal Axis Factoring.
a. 8 factors extracted. 12 iterations required.
64
Pattern Matrixa
Factor
1 2 3 4 5 6 7 8
RES1 ,871
RES2 ,868
RES4 ,829
RES3 ,815
REL4 ,828
REL3 ,795
REL1 ,780
REL2 ,717
CL3 ,881
CL4 ,781
CL2 ,612
CL1 ,601
EM1 ,905
EM4 ,817
EM2 ,795
CT4 ,818
CT2 ,786
CT1 ,777
CT3 ,625
TAN
,769
4
TAN
,768
3
TAN
,717
1
PR3 ,902
PR2 ,749
PR1 ,702
ASS3 ,747
ASS2 ,738
ASS1 ,723
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
Appendix C
Confirmatory Factor Analysis (CFA)
65
Modification Indices (Group number 1 - Default model)
66
Model fit summary
CMIN
67
Model NPAR CMIN DF P CMIN/DF
RMR, GFI
Baseline Comparisons
RMSEA
68
M.I. Par Change
EM2 <--- CL2 5,152 ,131
EM2 <--- CL4 5,435 ,133
EM2 <--- CL3 6,113 ,143
EM4 <--- PR1 4,312 ,090
EM1 <--- ASS 4,602 -,173
EM1 <--- CL 6,020 -,181
EM1 <--- ASS1 4,527 -,114
EM1 <--- CT2 4,092 -,099
EM1 <--- CL4 6,968 -,148
EM1 <--- CL3 5,112 -,129
CL3 <--- PR3 6,248 -,071
RES4 <--- REL4 4,404 ,069
RES1 <--- EM4 6,395 -,075
Estimate
RES1 <--- RES ,867
RES2 <--- RES ,855
RES4 <--- RES ,850
RES3 <--- RES ,814
REL4 <--- REL ,779
REL3 <--- REL ,841
REL1 <--- REL ,750
REL2 <--- REL ,806
CL3 <--- CL ,828
CL4 <--- CL ,791
CL2 <--- CL ,720
CL1 <--- CL ,661
EM1 <--- EM ,852
EM4 <--- EM ,846
EM2 <--- EM ,818
CT4 <--- CT ,767
CT2 <--- CT ,726
CT1 <--- CT ,827
CT3 <--- CT ,797
TAN4 <--- TAN ,799
TAN3 <--- TAN ,730
TAN1 <--- TAN ,748
PR3 <--- PR ,855
PR2 <--- PR ,810
PR1 <--- PR ,776
69
Estimate
ASS3 <--- ASS ,740
ASS2 <--- ASS ,725
ASS1 <--- ASS ,735
Appendix D
70
Model fit summary
CMIN
RMR, GFI
Baseline Comparisons
RMSEA
71
Model RMSEA LO 90 HI 90 PCLOSE
Default model ,026 ,015 ,035 1,000
Independence model ,196 ,191 ,201 ,000
First SEM
72
Estimate S.E. C.R. P Label
PR2 <--- PR ,919 ,059 15,502 *** par_17
PR1 <--- PR ,832 ,057 14,527 *** par_18
ASS3 <--- ASS 1,000
ASS2 <--- ASS 1,042 ,106 9,864 *** par_19
ASS1 <--- ASS ,967 ,096 10,059 *** par_20
Estimate
CT <--- SQ ,912
PR <--- CT ,629
RES <--- SQ ,585
REL <--- SQ ,476
EM <--- SQ ,565
TAN <--- SQ ,666
ASS <--- SQ ,398
CL <--- SQ ,883
CL <--- CT -,471
CL <--- PR ,405
RES1 <--- RES ,866
RES2 <--- RES ,856
RES4 <--- RES ,848
RES3 <--- RES ,815
REL4 <--- REL ,780
REL3 <--- REL ,842
REL1 <--- REL ,748
REL2 <--- REL ,806
CL3 <--- CL ,822
CL4 <--- CL ,791
CL2 <--- CL ,715
CL1 <--- CL ,657
EM1 <--- EM ,853
EM4 <--- EM ,842
EM2 <--- EM ,822
CT4 <--- CT ,763
CT2 <--- CT ,720
CT1 <--- CT ,821
CT3 <--- CT ,793
TAN4 <--- TAN ,799
TAN3 <--- TAN ,731
TAN1 <--- TAN ,747
PR3 <--- PR ,867
PR2 <--- PR ,807
PR1 <--- PR ,766
73
Estimate
ASS3 <--- ASS ,745
ASS2 <--- ASS ,726
ASS1 <--- ASS ,728
Second SEM
74
Estimate S.E. C.R. P Label
Estimate
CT <--- SQ .889
PR <--- CT -.627
CL <--- SQ .412
EM <--- SQ .577
75
Estimate
CL <--- PR -.394
76
Estimate
Estimate
e6 <--> e8 -,418
77
Estimate S.E. C.R. P Label
e17 ,339 ,032 10,506 *** par_56
e18 ,218 ,024 8,958 *** par_57
e19 ,238 ,025 9,508 *** par_58
e20 ,323 ,044 7,367 *** par_59
e21 ,341 ,037 9,106 *** par_60
e22 ,397 ,045 8,736 *** par_61
e23 ,235 ,035 6,641 *** par_62
e24 ,323 ,037 8,722 *** par_63
e25 ,347 ,036 9,592 *** par_64
e26 ,265 ,034 7,688 *** par_65
e27 ,321 ,040 8,118 *** par_66
e28 ,273 ,034 8,155 *** par_67
Estimate
CT ,831
PR ,396
ASS ,159
TAN ,443
EM ,319
CL ,576
REL ,226
RES ,342
ASS1 ,530
ASS2 ,527
ASS3 ,555
PR1 ,586
PR2 ,651
PR3 ,751
TAN1 ,558
TAN3 ,534
TAN4 ,639
CT3 ,629
CT1 ,674
CT2 ,519
CT4 ,583
EM2 ,676
EM4 ,708
EM1 ,727
CL1 ,432
CL2 ,512
CL4 ,625
CL3 ,676
78
Estimate
REL2 ,649
REL1 ,559
REL3 ,708
REL4 ,609
RES3 ,664
RES4 ,719
RES2 ,733
RES1 ,751
Estimate
CT <--- SQ ,912
PR <--- CT ,629
RES <--- SQ ,585
REL <--- SQ ,476
EM <--- SQ ,565
TAN <--- SQ ,666
ASS <--- SQ ,398
CL <--- SQ ,883
CL <--- CT -,471
CL <--- PR ,405
RES1 <--- RES ,866
RES2 <--- RES ,856
RES4 <--- RES ,848
RES3 <--- RES ,815
REL4 <--- REL ,780
REL3 <--- REL ,842
REL1 <--- REL ,748
REL2 <--- REL ,806
CL3 <--- CL ,822
CL4 <--- CL ,791
CL2 <--- CL ,715
CL1 <--- CL ,657
EM1 <--- EM ,853
EM4 <--- EM ,842
EM2 <--- EM ,822
CT4 <--- CT ,763
CT2 <--- CT ,720
CT1 <--- CT ,821
CT3 <--- CT ,793
TAN4 <--- TAN ,799
TAN3 <--- TAN ,731
TAN1 <--- TAN ,747
79
Estimate
PR3 <--- PR ,867
PR2 <--- PR ,807
PR1 <--- PR ,766
ASS3 <--- ASS ,745
ASS2 <--- ASS ,726
ASS1 <--- ASS ,728
Appendix E
Feedbacks from you will help me in completing this research . I hope that you have
time to answer the following statements. All of your answers will be very valuable for this
research and I sincerely thank the support and meaningful respondents .
A. Personal information:
1. Please indicate your gender
Female
Male
2. Age
Under 18
18 – 23
23 – 28
80
28 – 33
Over 33
2. Job:
Worker Housewife
Student Office staff
Others
3. Income:
Less than VND 3 millions VND 3 - 8 millions
VND 8 – 13 millions VND 13 – 18 millions
Over 13 – 18 millions
4. Usage per month
Less than 1 time
1 – 3 times
Over 3 times
Note: Please mark “X” in the box below the level of " agree " increases from 1 to 5 .
Meaning each level as follows:
1: Strongly disagree . 2: Disagree. 3: Neutral. 4: Agreed. 5: Strongly agree .
STATEMENT
(Absolute Security, to be used only for scientific research)
RELIABILITY
1. Strongly disagree; 2. Disagree; 3. Neutral. 4. Agree; 1 2 3 4 5
5. Strongly agree
REL1 Uber always provides punctual service
REL2 Uber always ensures fare accurately
Uber is always sincerely arranged for customers’ problems
REL3
81
RES1 Drivers always perform service promptly and professionally
ASSURANCE
1. Strongly disagree; 2. Disagree; 3. Neutral. 4. Agree; 1 2 3 4 5
5. Strongly agree
ASS1 Drivers control taxi safely and carefully
ASS2 Drivers’ behavior and service style are professional
EMPATHY
1. Strongly disagree; 2. Disagree; 3. Neutral. 4. Agree; 1 2 3 4 5
5. Strongly agree
EM1 Drivers always looks after the best interests of their customers
Uber company has operating hours convenient to all their
EM2
customers
Uber provides various forms of payment (in cash or by credit
EM3
card)
Uber taxis are present at many places being ready to serve
EM4
customers
TANGIBLENESS
1. Strongly disagree; 2. Disagree; 3. Neutral. 4. Agree; 1 2 3 4 5
5. Strongly agree
TAN1 Uber taxis is new and modern
The inside cars are clean and professional (seat, perfume, air-
TAN2
conditioner, …)
TAN3 Drivers are well-dressed and appear neat
Uber have car options (UberX, UberBlack) to fulfill
TAN4
customers’ needs
82
CUSTOMER TRUST
1. Strongly disagree; 2. Disagree; 3. Neutral. 4. Agree; 1 2 3 4 5
5. Strongly agree
CT1 I believe in the information which Uber services provide
Uber has good will reputation to make me feel comfortable
CT2
using online payment (visa, sms banking, etc.)
CT3 I believe that the errors while using Uber services rarely occur
I believe that advances in technology security will protect me
CT4
more while using Uber services
PERCEIVED RISK
1. Strongly disagree; 2. Disagree; 3. Neutral. 4. Agree; 1 2 3 4 5
5. Strongly agree
I totally feel secure about the safety when using Uber taxis
PR1
(careless checking drivers’ backgrounds, etc.)
PR2 I totally feel secure about qualification of drivers
PR3 I totally feel secure about the accuracy of fare
I totally feel secure that other people cannot my personal
PR4
information concerning my online payment
CUSTOMER LOYALTY
1. Strongly disagree; 2. Disagree; 3. Neutral. 4. Agree; 1 2 3 4 5
5. Strongly agree
CL1 I often mention about the advantages of Uber to other people
I introduce Uber whenever there are someone mention about
CL2
transport service
CL3 I suggest friends and family using Uber taxi
CL4 The first transportation I think about is Uber
83