IJIMT 2016 Vol.7(5): 228-233 ISSN: 2010-0248
doi: 10.18178/ijimt.2016.7.5.678

The Factors Affecting Customer Satisfaction and Customer Loyalty — A Study of Local Taxi Companies in Ho Chi Minh City, Vietnam

Mai Ngoc Khuong and Ngo Quang Dai
Abstract—Recent years have seen that a wide range of service providers have realized the importance of customer loyalty. One of the key challenges they face is how to manage service quality, which is pivotal for satisfying customers, retaining them and creating loyalty among customers. This research was conducted to examine the factors affecting Customer Satisfaction (CS) and Customer Loyalty (CL) to help improve profit for the local taxi companies of Ho Chi Minh City, Vietnam. Five dimensions in service quality (SERVQUAL): Tangibility, Reliability, Responsiveness, Empathy, and Assurance and IDCTP model: Information, Dignity, Comfort, Trip time and Price have been considered for this empirical research. The research methodology was carried out in a survey cross-sectional applied to 288 respondents. The collected data was analyzed by using reliability method, factor analysis, correlation and regression. The empirical results showed that reliability, responsiveness, price and satisfaction directly affected customer loyalty. In addition, comfort and price indirectly affected customer loyalty through the mediation of satisfaction. Finally, this study assisted marketing managers better understand the key drivers of taxi service in order to generate and uphold user satisfaction as well as fidelity in an extremely intricate marketplace.

Index Terms—Service quality (SERVQUAL) dimensions, RECSA model, customer satisfaction, customer loyalty, taxi service.

The authors are with the International University-VNU-HCMC, Vietnam (e-mail: mnkhuong@hcmiu.edu.vn, qdai2908@gmail.com).

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Cite: Mai Ngoc Khuong and Ngo Quang Dai, " The Factors Affecting Customer Satisfaction and Customer Loyalty — A Study of Local Taxi Companies in Ho Chi Minh City, Vietnam," International Journal of Innovation, Management and Technology vol. 7, no. 5, pp. 228-233, 2016.

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