Service attribute factors affecting customer satisfaction

Service Attribute factors affecting
Customer Satisfaction and Repeat
Purchases
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Table of Contents
ABSTRACT....................................................................................................................................2
CHAPTER 1....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
1.1 Role of the Transport Industry...............................................................................................3
1.2 Role of PickMe in the Transport industry of Sri Lanka.........................................................3
CHAPTER 2....................................................................................................................................4
2.0 LITREATURE REVIEW..........................................................................................................4
2.1 Customer Satisfaction............................................................................................................4
2.2 Information Communications Technology (ICT)..................................................................5
2.3 Repeat purchases...................................................................................................................6
2.4 Safety.....................................................................................................................................6
2.5 Price.......................................................................................................................................6
2.6 Convenience..........................................................................................................................7
2.7 CHAPTER SUMMERY........................................................................................................7
CHAPTER 3....................................................................................................................................8
3.0 CHAPTER INTRODUCTION..................................................................................................8
3.1 Conceptual Framework..........................................................................................................8
3.2 Dependent Variable...............................................................................................................8
3.3 Independent Variable.............................................................................................................8
3.4 Hypothesis.............................................................................................................................8
3.5 Methodology.........................................................................................................................9
3.52 Sampling Method................................................................................................................9
3.53 Data Collection....................................................................................................................9
3.55 Limitations.......................................................................................................................10
CHAPTER 4.....................................................................................................................................11
DATA INTERPRETATION AND ANALYSIS...........................................................................11
4.1 Descriptive Statistics...........................................................................................................12
4.1.0 Safety............................................................................................................................12
4.1.1 Price..............................................................................................................................12
4.1.2 Convenience.................................................................................................................13
4.1.3 Customer Satisfaction...................................................................................................13
4.1.4 Repeat Purchases..........................................................................................................14
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CHAPTER 5..................................................................................................................................15
5.0 IMPLICATIONS AND CONCLUSION.................................................................................15
5.1 Implication and Conclusion.................................................................................................15
5.2 Drawbacks...........................................................................................................................16
CHAPTER 6..................................................................................................................................17
6.0 CONCLUSION AND RECOMMENEDATIONS..................................................................17
REFERENCES..............................................................................................................................18
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ABSTRACT
The Transportation industry is one of the largest sectors in the global economy; it changes
in-tandem rapidly with the innovations of technology. Pickme is one of the latest
technology advancement developed in the transportation industry of Sri Lanka. The
primary purpose of this research is to measure customer satisfaction level on the service
attributes of Pickme. This research will outline the issues of service attributes of Pickme
with customer satisfaction and the repeat purchases.
The quantitative research approach was chosen to obtain relevant data for this
study and the participants of the study were users who experienced PickMe services in the
Kandy and Colombo District of Sri Lanka. A total of 400 questionnaires were distributed
by some of the participants filling the questionnaire via online methods.
The results of this study revealed that service attributes of PickMe including;
Safety, Price, Convenience and Information and Communication Technology (ICT) has
an influence on customer satisfaction and repeat purchases. This study found that it is
imperative for PickMe operators to improve their services and provide better services that
fit the current consumer demands on public transportation. In addition, ICT is crucial in
transportation and tourism industry because it has a great impact on ensuring sustainable
global and tourism development.
Keywords: Service Attribute Factors, Customer Satisfaction and Repeat purchases
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CHAPTER 1
Chapter Introduction
In this chapter it will be giving a picture on the background of the company and the
background of its operating industry. The research problem is identified and has detailed
out the influences and its background. Also the researcher has developed the Research
Questions in respective to the Research objectives.
INTRODUCTION
1.1 Role of the Transport Industry
Transportation is a fundamental driver of the tourism industry as it is a precondition
for travel since it facilitates mobility and the movement of tourists from their place of
origin (i.e., their home area) to their destination and vice versa. Concerning this
statement, it can be seen that transportation has a symbiotic relationship with tourism
in which one cannot occur without the other, and the two are co-dependent. Taxis, in
various forms and with various names, have been around for at least several centuries.
Modern taxis are generally considered to have evolved from the horse-drawn
carriages for hire in Paris and London in the mid-1600s. Ridesharing companies like
PickMe and Uber, are activated by using a Smartphone app to match consumers
requesting rides with drivers that will take them there. Since its inception in 2015,
PickMe has gained significant market share in Sri Lanka. (PickMe)
The advancement in technologies has delivered new trends in almost anything,
transportation included, in this modern era. Nowadays, people start to look into the latest
and latest trend to go about their daily life. Transportation wise, the growth in technology
has transformed the customer's preferences to use PickMe services over any other mode
of transportations.
1.2 Role of PickMe in the Transport industry of Sri Lanka.
The PickMe software platform facilitates and enables a real time connection between the
taxi passenger and the taxi driver, creating a mutual engagement for the receipt and
delivery of a seamless service. PickMe has now opened up its operations by linking with
other organisations to deliver the products ordered by its respective customers.
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CHAPTER 2
CHAPTER INTRODUCTION
This chapter is giving the maximum understanding on the problem and the insight of new factors
conducted in relation to the research problem. And also theories are identified to develop the
conceptual frame work of the operation. In this chapter, the literature review is done on the basis
of the independent variables.
2.0 LITREATURE REVIEW
2.1 Customer Satisfaction
It is essential to any business entity to satisfy every customer who uses the products or
services offered by them. According to Oliver (1999), customer satisfaction is a vital
indicator of a company’s past, current, and future performance and, hence, marketing
experts and scholars has been critically focusing on this since long ago. There are two
general conceptualizations of satisfaction that exist in the literature which are
transaction-specific satisfaction and cumulative satisfaction in modeling satisfaction
(Anderson & Fornell, 1993; Boulding, Kalra, Staelin, & Zeithhaml, 1993). In the
transaction-specific perspective, satisfaction is transient (Cronin & Taylor, 1992).
Conversely, Cumulative satisfaction is a customer’s evaluation of the total utilization
involvement with a product or service to date, which directly affects post-purchase
phenomena such as attitude change, repeat purchase and brand loyalty (Johnson &
Fornell, 1991). It is common to associate satisfaction with emotional affluence
among individual who is experiencing a situation that leads to behavioral intentions.
As an example, Oliver (1993) argued that positive and negative affective
responses were partial by consumer attributions about overall customer satisfaction.
The contradiction between prior expectation and actual performance is a function of
disconfirmation that results in customer dissatisfaction (Bolton & Drew, 1991). For
instance, it has been shown that dissatisfied customers generally tend to complain to
the establishment or are trying to find redress from them more regularly to relieve
cognitive dissonance and failed consumption experiences (Oliver, 1987; Nyer,
1999). Dissatisfaction can prompt customers spreading out negative outcomes also
known as negative word of mouth. If the management does not review back their
business, this situation can become worst and affect their performance. Unsatisfied
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