Vol 11, Issue 2, (2022) E-ISSN: 2226-3624

Customer Satisfaction toward Ride-Hailing

Services in Kuantan, Pahang
Rosnini Jusoh1 & Mohd Rozaimy Ridzuan2
1Faculty
of Administrative Science & Policy Studies, UiTM Terengganu Branch, Dungun
Campus, Dungun, Malaysia, 2Faculty of Administrative Science & Policy Studies, UiTM
Pahang Branch, Raub Campus, 27600 Raub, Pahang, Malaysia

To Link this Article: http://dx.doi.org/10.6007/IJAREMS/v11-i2/13256 DOI:10.6007/IJAREMS/v11-i2/13256

Published Online: 21 May 2022

Abstract
Ride-hailing services are on-demand vehicle acquisition services that rely on network
connectivity and a specialized digital application via the Internet. Ride-hailing, often known
as e-hailing, is an act in which a customer orders a customized ride online, typically through a
smartphone application. As a part of Malaysia's transportation sector, it will continue to be
competitive in contributing to the economy. It is, however, more challenging to keep current
consumers happy than to attract new ones. There is no way for service providers to guarantee
that their customers will continue to use their apps because of the ongoing threat of
competition from comparable apps. This study examines factors associated with customer
satisfaction toward ride-hailing services among Kuantan residents. Five independent factors
associated with ride-hailing customer satisfaction are examined; tangibility, reliability,
responsiveness, assurance, and empathy. In this cross-sectional study, 160 Kuantan residents
were surveyed. The study's findings found that customer satisfaction is strongly linked to all
study's independent variables. This study will assist ride-hailing service providers in bettering
their services while also spurring the economy. This study will also enrich the knowledge of
ride-hailing services in Kuantan, Pahang. The findings of this study will help policymakers
formulate sound public policies and programs to encourage citizens, particularly youth, to
choose ride-hailing as their primary medium of transportation.
Keywords: Ride-Hailing, E-Hailing, Customer Satisfaction, Service Quality, Transportation
Network Companies (TNCs)

Introduction
The Internet and its supporting technologies have changed the way people communicate,
interact, and transact in the digital age. Technology has improved people's quality of life since
people can readily access information and conduct numerous daily tasks with smartphones.
Most businesses have enhanced their communication with customers to increase sales and
profits. Businesses must constantly keep up with technological trends and embrace creative
business models to meet current demands. According to Almunawar et al (2020), one of the
novel business ideas is mobile-based ride-hailing. Unlike traditional taxi businesses, a
company that manages a ride-hailing platform does not own vehicles and does not need to
hire drivers to run the service. It works by enticing car owners/drivers to register and agree

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to the terms and conditions supplied and then collaborate to locate customers using the app
available on their smartphones.
The most well-known transportation network firm that has challenged the traditional taxi
industry is Uber (Cramer & Krueger, 2016). Besides that, many Transportation Network
Companies (TNCs) provide ride-hailing services, such as Lyft, Grab (Malaysia), DiDi (China),
and GO-JEK (Indonesia). They use sophisticated internet-based mobile applications on
smartphones (Almunawar et al., 2020). According to Jang et al (2020), various fast-growing
ride-hailing apps, including Uber, Didi, Lyft, Grab, Ola, and BlaBlaCar, have disrupted the
pricey taxi business globally.
According to Wosskow (2014), ride-hailing services are a subset of the sharing economy
business model, which has continued to increase in acquiring transportation services. Jiang et
al. (2020) contend that ride-hailing services have aided the country's economy by creating job
opportunities. The ride-hailing app includes an integrated rating system that allows users to
review their drivers. This condition encourages drivers to maintain their vehicles clean and
deliver superior customer service, distinguishing these innovative ride-hailing services from
traditional taxi services (Kavadias et al., 2016). Clewlow & Mishra (2017) discovered that the
two primary reasons customers in metropolitan areas use ride-hailing services over driving
their cars are to avoid parking challenges and prevent driving while intoxicated, which could
result in an accident. Waiting periods for ride-hailing services are shorter and more
dependable than those for taxis, making them more convenient to use. Hence, ride-hailing
services' ease and benefits would entice more people to utilize them (Rayle et al., 2016).
Attracting new customers may be a challenge for ride-hailing service companies. However,
maintaining existing customers is more complex than recruiting new potential customers
(Kotler et al., 2017). The alternative appeal is the primary factor influencing users' ride-hailing
service switching behaviour (Cheng et al., 2017). In this regard, none of the service providers
can easily ensure consumers' continued usage of their apps, as the potential of alternate
attraction from other similar apps is constantly present. They can download other service
apps to their cellphones and any location without additional charges.
Much of the significant research on ride-hailing services has concentrated on the travel
customer's loyalty to ride-hailing services (Lee & Wong, 2021) and the implications on ride-
hailing service revenue (Caroline, 2018). However, limited studies provide a comprehensive
picture of ride-hailing and consumer satisfaction, particularly in Kuantan, Pahang. This study
is driven to address a research vacuum in this area by analyzing factors associated with
customer satisfaction with ride-hailing services in Kuantan, Pahang. The research findings may
benefit industry participants, policymakers, government agencies, and ride-hailing users by
elucidating the requirements and concerns of consumers who utilize ride-hailing services.

Literature Review
Ride-Hailing and Customer Satisfaction
Customer satisfaction is a crucial factor in determining whether or not a client will remain a
customer (Jin et al., 2012). Customer satisfaction can be defined as a customer's assessment
of the extent to which their criteria have been met, referring to the gap between expectations
and actual performance (Hanif et al., 2010). In terms of passenger satisfaction, satisfaction
refers to the passenger experience following the receipt of service compared to their
predetermined expectation (Morfoulaki et al., 2010; Li et al., 2019).
The concept of customer satisfaction has long been linked to service quality. According to
Man et al (2019), to compete, ride-hailing companies must maintain high service quality

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standards to assure consumer happiness. SERVQUAL, developed by Parasuraman et al (1985),

has been adopted by most researchers for studying service quality across five significant
dimensions: tangibility, reliability, responsiveness, assurance, and empathy.
The explanation for these dimensions is as follows: (1) tangibility refers to an organization's
physical environment, (2) reliability refers to an organization's ability to perform the service
accurately, and dependable, and (3) responsiveness refers to an organization's ability to
respond to customer requirements promptly and the employee's willingness to help and
serve the consumers. (4) Assurance refers to employees' capacity to develop trust and instil
confidence in customers based on their knowledge and competence, and (5) empathy refers
to employees' ability to care and be concerned about the client (Saghier, 2015; Naik et al.,
2010).
In general, tangible elements refer to the physical environment consisting of three
components: design factors, social factors, and ambient factors (Moon, 2013). Khurshid et al
(2012) found a positive relationship between tangibility and customer satisfaction with
Pakistan's public transport services. A higher level of tangibility leads to a higher level of
customer satisfaction. Khuong & Dai (2016) found that service tangibility significantly impacts
customer satisfaction in local taxi companies in Vietnam.
Randhir (2018) stated that reliability promises a consistent and exact service delivery by
getting it right the first time and every time. The statement guarantees the customer that
service will be provided on time and accurate information will be provided without exceeding
the time limit. According to Balachandran & Hamzah (2017), reliability is service steadiness,
regularity, and transportation services. For example, ride-hailing drivers should arrive on
time, be honest about journey length, have good communication skills, and use effective
scheduled routes to establish and maintain customer loyalty. Horsu & Yeboah (2015)
discovered that reliability was substantially connected with customer satisfaction in their
study on minicab taxi services in Ghana. Similarly, Khuong & Dai (2016); Mudenda & Guga
(2017) testified that reliability is highly related to customer satisfaction with public
transportation services.
Responsiveness refers to a firm's ability to assist the customer and provide accurate time
service and was found to be positively related to customer satisfaction as well (Siew et al.,
2011; Saghier & Nathan, 2013; Hong & Marimuthu, 2014; Al-Azzam, 2015; Minh et al., 2015).
Randhir (2018) contends that responsiveness is the willingness to deliver quick services in
helping customers by fulfilling the customers' needs and expectations. The responsive drivers
will keep the customers well informed of any delay or inability to deliver services. Akram et
al. (2020) also discussed two crucial factors: willingness and promptness in presenting
services.
Tazreen (2012) believes that those that instil confidence and trust in their clients will achieve
a high level of certainty. In his previous study, Randhir (2018) defined assurance as personnel
knowledge and civility in behaviour. Service providers can create trust and confidence among
customers to increase customer satisfaction. Assurance guarantees the delivery's integrity
and usability to the recipients. Assurance refers to someone's assessment of knowledge and
capacity to provide trust and confidence, which includes expertise, civility, credibility, and
security. In this case, ride-hailing drivers demonstrate assurance services by being highly
timely when it comes time to pick up the passengers at the requested place and ensure that
they arrive on time and safely at their destination. According to Akram et al (2020), individual
services are presented well if both parties, ride-hailing drivers and passengers, are good
communicators, energetic, and accept both objectives, needs, and expectations.

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Empathy refers to an employee's attitude toward a client based on an emotional experience,

and it has been demonstrated to be significantly positively associated with customer
satisfaction (Hassan et al., 2013; Saghier & Nathan, 2013; Al-Azzam, 2015; Bahadur et al.,
2018). Empathy can also be defined as providing care and specialized attention to someone
or clients, involving access, communication, and understanding. This study evaluates the
empathy factor to determine the level of happiness among consumers who use ride-hailing
services by understanding the customers' needs and wants and providing services 24 hours a
day, seven days a week. Tazreen (2012) stated that empathy is a positive behaviour in taking
care of and personalizing regard for the firm through giving services to customers. Empathy
is the ability to put oneself in the shoes of another human being, a learned skill or life
behaviour that involves transferring and understanding feelings and emotions. Happiness,
disappointment, enthusiasm, grief, discomfort, and perplexity are all ways to communicate
empathy.

Based on the above discussion, the present study developed several hypotheses as follows
H1: There is a significant relationship between tangibility and customer satisfaction toward
ride-hailing services.
H2: There is a significant relationship between reliability and customer satisfaction toward
ride-hailing services.
H3: There is a significant relationship between responsiveness and customer satisfaction
toward ride-hailing services.
H4: There is a significant relationship between assurance and customer satisfaction toward
ride-hailing services.
H5: There is a significant relationship between empathy and customer satisfaction toward
ride-hailing services.

Research Methodology
This study employs a cross-sectional study to examine factors associated with customer
satisfaction toward ride-hailing services among Kuantan residents. The study's unit of analysis
is individual residents in Kuantan who uses ride-hailing services. The sample size of the study
is 160 respondents. The questionnaires were distributed to the respondents through a google
form. This study employs a purposive sampling technique since only those who have
experienced using ride-hailing can only respond to questionnaires. Statistical Packages for the
Social Science (SPSS) version 26 was utilized to examine the correlation between service
quality dimensions (i.e., tangibility, reliability, responsiveness, assurance, and empathy) and
customer satisfaction with ride-hailing services.

Profile of Respondents
The demographic profile of respondents is depicted in Table 1. Females make up 58.1 per cent
of this study, which is slightly higher than males. The majority of respondents were between
the ages of 26 and 35. The majority of respondents worked in the public and private sectors,
and the majority of them lived in cities.

Table 1
Profile of Respondents

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Items N= 160
Frequency Percentage
Gender
Male 67 41.9
Female 93 58.1
Age
15-25 years old 26 16.3
26-35 years old 93 58.1
36-45 years old 29 18.1
46 years old above 12 7.5
Working Sector
Private Sector 60 37.5
Government Sector 63 38.8
Self-employed 13 8.1
Retired 1 0.6
Student 13 8.1
Unemployed 11 6.9
Living Area
Urban 69 43.1
Semi Urban 65 40.6
Rural 26 16.3

Results and Discussion

Table 2 depicts the relationship between the study's independent variables (tangibility,
reliability, responsiveness, assurance, and empathy) and the dependent variable (customer
satisfaction toward ride-hailing). The Pearson correlation analysis found that all the study's
independent variables significantly associate customer satisfaction with ride-hailing services.
The p-value is less than .005. Besides that, the relationship between independent variables
and the dependent variable is positive. The study's findings also found that the relationship
between variables is strong as the r value for all variables is more than .800. Hence, all the
alternate hypotheses of the study (H1 until H5 ) can be accepted.

Table 2
Correlation results

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Customer Satisfaction
Tangibility Pearson Correlation 0.860
Sig. (2-tailed) 0.000
N 160

Reliability Pearson Correlation 0.865

Sig. (2-tailed) 0.000
N 160

Responsiveness Pearson Correlation 0.855

Sig. (2-tailed) 0.000
N 160

Assurance Pearson Correlation 0.828

Sig. (2-tailed) 0.000
N 160

Empathy Pearson Correlation 0.835

Sig. (2-tailed) 0.000
N 160

The study's findings are consistent with previous research. Balachandran & Ibrahim (2017)
conducted a study on ride-hailing services in Malaysia and discovered that tangibility was
significantly associated with customer satisfaction. Moon (2013) proposed that expectations
about physical characteristics influence views about the environment and seemingly
unrelated service attributes. Because services are intangible and frequently require the
client's presence during the operation, measurable or physical elements may significantly
impact the quality standards of the service. The comfort and cleanliness of the seats make
the customers pleasure to be in the automobile on the journey. Aside from that, a well-
dressed driver might increase ride-hailing customers' satisfaction.
In terms of reliability, the findings of this study are similar to (Horsu & Yeboah, 2015; Stefano
et al., 2015). They also discovered a link between reliability and customer satisfaction. In this
study, responsiveness and customer satisfaction were also connected. Responsiveness
assesses the availability and readiness to give services as soon as possible. It measures the
availability and willingness to provide the services promptly. Clients should be able to use the
service quickly and easily. The clients should access the service smoothly and conveniently.
Moreover, it covers the ability to effectively solve problems and handle customer complaints
(Ruamchart, 2021). Ruamchart (2021) found that the highest score for both expectation and
perception in the responsiveness attribute was "ride-hailing service providers delivering their
service promptly".
According to the current study's findings, assurance has a significant association with
customer satisfaction. It addresses the capacity to effectively manage problems and handle
client complaints (Ruamchart, 2021). Ruamchart (2021) discovered that "ride-hailing service
providers delivering their service promptly" received the highest expectation and perception
scores in the responsiveness attribute. The findings corroborated those of (Pakurar et al.,
2019). According to Pakurar et al (2019), assurance is inextricably tied to the sense of security
when conducting a banking transaction in Jordan. Customers of Jordanian banks indicated

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satisfaction with their interactions with the bank, showing that bank employees exhibit
knowledge, civility, and the ability to inspire client confidence. In terms of empathy, a study
conducted by Bahadur et al (2018) discovered that workers who exhibit empathy-like
behaviour could positively impact customer satisfaction and loyalty. The warm and helpful
personalities of the drivers make the passengers feel at ease and glad to use the ride-hailing
services.

Conclusion
The current study has identified the factors associated with customer satisfaction with ride-
hailing services in Kuantan, Pahang. The factors that contribute to the achievement of
customer satisfaction are tangibility, reliability, assurance, responsiveness, and empathy. The
service provider can use the findings of this study to improve and boost the quality of its ride-
hailing services. Service providers must deliver the highest quality services possible to entice
customers to use their services. As previously stated, various transportation network firms
provided transportation to locals.
Service providers can use the study findings to improve their ride-hailing services to satisfy
clients. Ride-hailing companies can improve service quality in numerous ways. They must
arrive on time, be honest about the length of the travel, have good communication skills, and
use effective scheduled routes to build and sustain client satisfaction. Ride-hailing services
are more enjoyable for passengers because of the drivers' kind and helpful personalities.
Customers enjoy their journeys in the car because of the car's comfortable seats and spotless
cleanliness. Aside from that, a well-dressed driver may improve the experience of clients who
hail a ride-hailing vehicle. The service providers must ensure that their vehicles are always
clean and that customers' wait times are less than taxis.
The introduction of ride-hailing services has provided an option for individuals who rely on
public transit. It is also projected to alleviate congestion concerns in Malaysian cities. Ride-
hailing services benefit and save time for both drivers and riders. Passengers can use their
smartphones to book cabs, eliminating the need to wait on the side of the road or the chance
of not being picked up by a driver. Simultaneously, drivers can go right to their passengers
without looking for them. With the rise of the ride-hailing services business and the essential
role of this service industry, there is a need to explore further the service quality aspects and
customer satisfaction on ride-hailing services, particularly in the Malaysian context. It is
critical to gain a deeper grasp of client perceptions and expectations in these competitive
times, which influence satisfaction levels.
More studies must be conducted to improve ride-hailing services in Kuantan. On the other
hand, future studies should consider the sample size of respondents and open the survey
questions to a more extensive range of respondents. It will assist the researcher in gathering
additional data in diverse locations and collecting the data accurately following the specified
objectives. Since this study was limited to the Kuantan community only, the scope of future
study could be broadened and expanded to include other districts in Pahang. It is also
suggested that future researchers can use both mediating and moderating variables to
understand overall customer satisfaction better. Aside from that, employing the probability
sampling technique will assist future researchers in producing significant and interesting
study outcomes.

Acknowledgement

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This research is not under a specific grant from any funding agency in the public, commercial
or not for profit sectors. The authors would like to express their gratitude to the Universiti
Teknologi MARA for their support in the publication of this article.

Corresponding Author
Mohd Rozaimy bin Ridzuan
Faculty of Administrative Science & Policy Studies, UiTM Pahang Branch, Raub Campus
Email: [email protected]

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