Factors Affecting Customer Loyalty: An Empirical Evidence from the Toll Road Industry in Indonesia
DOI:
https://doi.org/10.21512/bbr.v15i1.10045Keywords:
customer loyalty, toll road industry, perceived price justice, perceived satisfaction, service quality, revisit intentionAbstract
Toll road rest areas are one of the main pillars of the toll road industry, and higher interest in buying at toll road rest areas is one of the keys to their financial success. The research aimed to identify and analyze the relationship between revisit intention and customer loyalty, as well as perceived price fairness, perceived satisfaction, and service quality. These variables were believed to be the main drivers for toll road users to make purchases at toll road rest areas. A statistical analysis approach was used with the Partial Least Square-Structural Equation Modelling (PLS-SEM) method for 573 respondents. They were consumers of the Trans Java toll road rest area. The survey was conducted directly on customers of the Trans Java toll road rest area at 15 locations. The results show that perceived price justice and satisfaction positively and significantly impact revisit intention. Then, revisit intention has a positive and significant impact on customer loyalty. Service quality has a positive and significant impact on perceived satisfaction and customer loyalty. The findings show that service quality, which is most strongly influenced by assurance, responsiveness, and empathy, is the main factor influencing customer loyalty. Based on the research results, the practical application is how managers can improve service quality, perceived price justice, and perceived satisfaction for price-sensitive consumers, who also tend to be sensitive to the service quality they get.
Plum Analytics
References
Andani, I. G. A., Puello, L. L. P., & Geurs, K. (2021). Modelling effects of changes in travel time and costs of toll road usage on choices for residential location, route and travel mode across population segments in the Jakarta-Bandung region, Indonesia. Transportation Research Part A: Policy and Practice, 145, 81–102. https://doi.org/10.1016/j.tra.2020.12.012
Ardiyono, S. K., Parenrengi, N. P. A., & Faturachman. (2018). How does toll road impact accessibilities, trades, and investments in short term? A case study of Cipali toll road in West Java, Indonesia. Journal of Infrastructure, Policy and Development, 2(2), 226–247. https://doi.org/10.24294/jipd.v2i2.673
Brandano, M. G., Osti, L., & Pulina, M. (2019). How motivations and satisfaction influence wine tourists’ loyalty? An analysis of the Italian case. International Journal of Culture, Tourism, and Hospitality Research, 13(1), 55–69. https://doi.org/10.1108/IJCTHR-04-2018-0054
Cakici, A. C., Akgunduz, Y., & Yildirim, O. (2019). The impact of perceived price justice and satisfaction on loyalty: The mediating effect of revisit intention. Tourism Review, 74(3), 443–462. https://doi.org/10.1108/TR-02-2018-0025
Chou, S., Chen, C. W., & Wong, M. (2023). When social media meets low-cost airlines: Will customer engagement increase customer loyalty? Research in Transportation Business & Management, 47. https://doi.org/10.1016/j.rtbm.2023.100945
El-Adly, M. I. (2019). Modelling the relationship between hotel perceived value, customer satisfaction, and customer loyalty. Journal of Retailing and Consumer Services, 50, 322–332. https://doi.org/10.1016/j.jretconser.2018.07.007
Gibson, S., Hsu, M. K., & Zhou, X. (2022). Convenience stores in the digital age: A focus on the customer experience and revisit intentions. Journal of Retailing and Consumer Services, 68. https://doi.org/10.1016/j.jretconser.2022.103014
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on Partial Least Square Structural Equation Modeling (PLS-SEM). SAGE Publication.
Hanaysha, J. R., & Al-Shaikh, M. E. (2022). An examination of customer relationship management dimensions and employee-based brand equity: A study on ride-hailing industry in Saudi Arabia. Research in Transportation Business & Management, 43. https://doi.org/10.1016/j.rtbm.2021.100719
Irawan, M. Z., Simanjuntak, N. I. M., Bastarianto, F. F., Dwitasari, R., & Herawati. (2020). Predicting the impact of Trans Java Toll Roads on demand for intercity air travel in Indonesia. Journal of Air Transport Management, 87. https://doi.org/10.1016/j.jairtraman.2020.101848
Jeaheng, Y., Al-Ansi, A., & Han, H. (2020). Impacts of halal-friendly services, facilities, and food and Beverages on Muslim travelers’ perceptions of service quality attributes, perceived price, satisfaction, trust, and loyalty. Journal of Hospitality Marketing & Management, 29(7), 787–811. https://doi.org/10.1080/19368623.2020.1715317
Ji, C., & Prentice, C. (2021). Linking transaction-specific satisfaction and customer loyalty – The case of casino resorts. Journal of Retailing and Consumer Services, 58. https://doi.org/10.1016/j.jretconser.2020.102319
Mori, R. J. (2021). It’s not price; It’s quality. Satisfaction and price fairness perception. World Development, 139. https://doi.org/10.1016/j.worlddev.2020.105302
Kanduri, S., & Radha, B. (2023). Study on the impact of services offered on student satisfaction and the satisfaction led word of mouth by students pursuing management education. International Journal of Educational Management, 37(2), 526–538. https://doi.org/10.1108/IJEM-04-2022-0158
Kotler, P., & Armstrong, G. M. (2012). Principles of marketing. Pearson Prentice Hall.
Lee, S., & Winterich, K. P. (2022). The price entitlement effect: When and why high price entitles consumers to purchase socially costly products. Journal of Marketing Research, 59(6), 1141–1160. https://doi.org/10.1177/00222437221094301
Li, F., & Xu, G. (2022). AI-driven customer relationship management for sustainable enterprise performance. Sustainable Energy Technologies and Assessments, 52. https://doi.org/10.1016/j.seta.2022.102103
Liu, X., & Kao, Z. (2022). Research on influencing factors of customer satisfaction of e-commerce of characteristic agricultural products. Procedia Computer Science, 199, 1505–1512. https://doi.org/10.1016/j.procs.2022.01.192
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.
Park, E., Choi, B. K., & Lee, T. J. (2019). The role and dimensions of authenticity in heritage tourism. Tourism Management, 74, 99–109. https://doi.org/10.1016/j.tourman.2019.03.001
Prentice, C., Hsiao, A., Wang, X., & Loureiro, S. M. C. (2023). Mind, service quality, relationship with airlines. Journal of Strategic Marketing, 31(1), 212–234. https://doi.org/10.1080/0965254X.2021.1894216
Prentice, C., Wang, X., & Loureiro, S. M. C. (2019). The influence of brand experience and service quality on customer engagement. Journal of Retailing and Consumer Services, 50, 50–59. https://doi.org/10.1016/j.jretconser.2019.04.020
Rashid, M. H. U., Nurunnabi, M., Rahman, M., & Masud, M. A. K. (2020). Exploring the relationship between customer loyalty and financial performance of banks: Customer open innovation perspective. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–19. https://doi.org/10.3390/joitmc6040108
Shahzad, A., Yaqub, R. M. S., Di Vaio, A., & Hassan, R. (2021). Antecedents of customer loyalty and performance improvement: Evidence from Pakistan's telecommunications sector. Utilities Policy, 70. https://doi.org/10.1016/j.jup.2021.101208
Shen, C., & Yahya, Y. (2021). The impact of service quality and price on passengers' loyalty towards low-cost airlines: The Southeast Asia perspective. Journal of Air Transport Management, 91. https://doi.org/10.1016/j.jairtraman.2020.101966
Solomon, M. R. (2016). Consumer behaviour; Buying, having, and being (12th ed.). Pearson.
Suhartanto, D., Dean, D., Chen, B. T., & Kusdibyo, L. (2020). Tourist experience with agritourism attractions: What leads to loyalty? Tourism Recreation Research, 45(3), 364–375. https://doi.org/10.1080/02508281.2020.1736251
Suhartanto, D., Dean, D., Wibisono, N., Astor, Y., Muflih, M., Kartikasari, A., ... & Hardiyanto, N. (2021). Tourist experience in halal tourism: What leads to loyalty? Current Issues in Tourism, 24(14), 1976–1990. https://doi.org/10.1080/13683500.2020.1813092
Tajeddini, K., Gamage, T. C., Hameed, W. U., Qumsieh-Mussalam, G., Chaijani, M. H., Rasoolimanesh, S. M., & Kallmuenzer, A. (2022). How self-gratification and social values shape revisit intention and customer loyalty of Airbnb customers. International Journal of Hospitality Management, 100. https://doi.org/10.1016/j.ijhm.2021.103093
Tarkang, M. E., Yunji, R. N., Asongu, S., & Alola, U. V. (2023). Antecedents of customer loyalty in mobile telecommunication companies in Cameroon. Information Development, 39(2), 187–201. https://doi.org/10.1177/02666669211047624
Truong, T. M. T., Friedrich, H., & Charoenngam, C. (2020). Success factors for financial sustainability of toll road projects: Empirical evidence from China. Transportation Research Procedia, 48, 1848–1860. https://doi.org/10.1016/j.trpro.2020.08.219
Uzir, M. U. H., Al Halbusi, H., Thurasamy, R., Hock, R. L. T., Aljaberi, M. A., Hasan, N., & Hamid, M. (2021). The effects of service quality, perceived value and trust in home delivery service personnel on customer satisfaction: Evidence from a developing country. Journal of Retailing and Consumer Services, 63. https://doi.org/10.1016/j.jretconser.2021.102721
Wasaya, A., Prentice, C., & Hsiao, A. (2022). The influence of norms on tourist behavioural intentions. Journal of Hospitality and Tourism Management, 50, 277–287. https://doi.org/10.1016/j.jhtm.2022.02.023
Yang, C. C., & Chao, C. C. (2017). How relationship marketing, switching costs, and service quality impact customer satisfaction and loyalty in Taiwan’s airfreight forwarding industry? Transportmetrica A: Transport Science, 13(8), 679–707. https://doi.org/10.1080/23249935.2017.1321696
Yang, Z., Cao, X., Wang, F., & Lu, C. (2022). Fortune or prestige? The effects of content price on sales and customer satisfaction. Journal of Business Research, 146, 426–435. https://doi.org/10.1016/j.jbusres.2022.03.075
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Denny Chandra Irawan, Yeshika Alversia
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)