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The service quality imperative: Sustaining ridesharing adoption in the developing world

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Abstract

This study aims to assess user perceived quality and its impact on sustaining the adoption of app-based ride- sharing services in the context of a developing country. Adopting the E-S-QUAL model as a theoretical frame- work, data have been collected from 250 ride-sharing app users in Bangladesh. Utilizing the PLS-SEM method, the structural model confirms that service quality is a hierarchical second order model which extensively impacts customer satisfaction and positively affects service loyalty. Specifically, fulfillment, security & privacy, system availability, and efficiency factors of e-service quality emerged as significant determinants of user loyalty and satisfaction. In addition, customer satisfaction fully mediates the relationship between service quality and intention to continue using the ridesharing services. The findings highlight the role of delivering high-quality digital services in fostering customer loyalty, commitment, and retention in the ride-sharing domain, particu- larly in developing economies. In addition, this study highlights that Bangladeshi perspectives on the sharing economy emphasize the need for better infrastructure, improved safety and privacy for women, and affordable, reliable service, insights that are also relevant for other emerging economies. Theoretically, this study extends the research of ridesharing services by applying the well-established E-S-QUAL framework while assessing the mediating role of customer satisfaction in ensuring service viability. Practically, it provides implications for ride- sharing platforms to enhance service attributes such as responsiveness, timeliness, and system reliability, thereby improving user experience and encouraging continued usage.

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... The WebQual method is a measurement method for website quality based on the perceptions of end users (the public) [13]. This method is an extension of Servqual and has evolved from WebQual 1.0, which focused on analyzing information quality but had shortcomings in service interaction [14]. Then, WebQual 2.0 emphasized analysis of interactions but lacked in analyzing information quality. ...
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Purpose This study aims to understand the effect of cultural dimension (individualism/ collectivism) on promotional rewards (social or economic) resulting in incentivizing consumers to engage in electronic word-of-mouth (eWOM), further impacting their repurchase intentions. Design/methodology/approach In Study 1, a 2 (culture: individualism vs collectivism) × 2 (promotional rewards: social vs economic) between-subjects design was used. Structural equation modeling was used to test the hypotheses. In Study 2, culture was measured instead of just being manipulated. The authors used regression analysis in this study. Findings Owing to the characteristics of collectivistic individuals, consumers in collectivistic cultures were more likely to respond to social rewards as an incentive to engage in eWOM. However, consumers in individualistic cultures were more motivated to engage in eWOM when economic rewards were offered. Originality/value Despite the global nature of eWOM, little research has explored the effects of cultural traits on consumer response to amplified eWOM strategy. Additionally, though many organizations now offer various promotional incentives to reviewers, little research has explored the effects of promotional offers on a reviewer’s subsequent behavior, and no research has explored the relationship between cultural dimensions and current and future response to promotional eWOM rewards.
Article
Recent literature highlights the necessity of adapting conventional brand equity theories to emerging digital business models. To fill this need, the current study proposes a brand resonance model tailored to on-demand ride-hailing brands. The model was tested on 363 ride-hailing users from two diverse countries, the USA and Pakistan. The findings indicate that users’ perceptions of value and personal reputation have a direct impact on brand resonance, while brand trust mediates the influence of personal reputation, value, and digital platform performance on brand resonance. Moreover, the study reveals that digital natives in both countries exhibit similar patterns of user behaviour and service expectations. Notably, the study highlights that being a ‘trusted brand’ is a crucial aspect of the on-demand ride-hailing brand identity. Keywords: ride-hailing; brand equity; brand trust; sharing economy; digital branding.
Article
Purpose Although the sharing economy improves comfort and convenience, it is yet unclear how it affects subjective well-being. This study aims to offer a conceptual model for understanding the linkages between the antecedents and consequences of subjective well-being in ridehailing services. Design/methodology/approach Using a non-probabilistic sampling method and a pre-tested survey instrument, 450 responses were collected from January to March 2020. The data were analysed using structural equation modelling. Findings Experience quality and perceived convenience are correlated with subjective well-being. Perceived value and personal innovativeness were not correlated with subjective well-being, as the former does not contribute to the latter’s development. Continuous usage intention significantly correlated with subjective well-being, followed by customer relationship proneness and advocacy. Regarding gender and age differences, men place higher value on customer relationship proneness than women, while women place higher value on subjective well-being than men. Older users value perceived convenience and customer relationship proneness in ridehailing services more than younger users. Practical implications Understanding key factors contributing to user well-being in ridehailing would promote a more affordable mobility sector globally. This understanding would enable ridehailing businesses to create more effective business and marketing plans while prioritising user well-being, thus enhancing user happiness and reducing turnover rates. Originality/value This research demonstrates how crucial it is for users’ well-being to have a positive experience and find the service convenient. It also highlights the importance of building strong customer relationships and examines how gender and age influence people’s adoption and use of these services.
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Purpose This study focuses on Aaker's Brand Equity Model, to check the effect of brand equity determinants on booking intention (BI) for ridesharing in India. The study also explores the moderation of ecologically conscious consumer behavior (ECCB) on the multiplicative effect of brand awareness (BAw), brand association (BA) and perceived quality (PQ) in influencing the BI. Design/methodology/approach Responses from 393 Indian ridesharing users were collected using judgmental sampling and were analyzed using Hayes Process macro. Findings The study found a direct relationship between BAw and BI, BAw and BA, BAw and PQ, BA and PQ, PQ and BI, and BA and BI. Findings revealed mediation of BA in BAw and BI relationship and PQ in BAw and BI relationship. Results revealed that BA and PQ serially mediate BAw and BI relationship. ECCB moderates PQ and BI relationship but not BAw and BI relationship. Research limitations/implications Serial mediation and moderated-mediation results draw various theoretical implications for determinants of Aaker's Brand Equity model and ECCB. Practical implications The research has several implications for managers in view of brand equity determinants and ECCB. The study also contributes to policy implications. Originality/value Study's novel contributions are mediation, serial mediation between brand equity determinants, and moderation of ECCB between BAw and BI for ridesharing.
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Purpose-The purpose of this study is to explore the interplay between electronic service quality, user experience (UX) and overall customer satisfaction. Additionally, it aims to assess the suitability of E-S-QUAL and UX metrics within the cultural context of Greece. Design/methodology/approach-Data were collected from 310 Internet users based on their last online purchase from an e-retail website. To evaluate the conceptual model, the authors used partial least squares structural equation modeling (PLS-SEM). Findings-The findings of this study validate the scales' reliability and validity in the realm of electronic commerce (e-commerce) in Greece. The findings also emphasize the favorable association between e-service quality and UX with overall satisfaction, while indicating that e-service quality plays a partial mediating role in the relationship between UX and customer satisfaction. Originality/value-The authors' study enhances the existing theory by introducing a new multi-dimensional conceptual framework that illuminates the relative importance of the dimensions within the scales. Additionally, it offers valuable insights into the impacts of e-service quality and UX on overall satisfaction, providing managers and practitioners with a tool to evaluate the quality of their electronic services and make necessary adjustments to meet the needs of their customers.
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With the development of the sharing economy, online ride-sharing has become a primary form of commuting. Using secondary transaction data, this study investigates the associations between the heterogeneous features and mutual trust in sharing economy-driven online ride-sharing transactions. Based on an examination of 12,404 ride-sharing orders in Beijing, we propose a set of trust distribution maps using order location data to reveal heterogeneous spatial patterns of the relationship between online ride-sharing transactions and mutual trust. The results show that the historical order completion rate and order distance are positively associated with mutual trust in ride-sharing transactions, whereas order time and departure density negatively and significantly influence mutual trust. Furthermore, we use machine learning algorithms to predict trust. The implications for theory and practice and future research directions are discussed.
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With the rapid development of ubiquitous computing, our society is witnessing a rapid expansion of mobility-on-demand services, in which ridesharing (e.g., Uber, Lyft, and DiDi) has become one of the most successful applications and has percolated into people’s daily life. Even though a large number of research studies have been conducted to understand the demand and supply patterns or improve the operation efficiency of ridesharing services, little is known at a comprehensive level on their evolution, especially during the widely-initiative vehicle electrification process that electric vehicles start to take over conventional gas vehicles gradually. Different from conventional gas vehicles, electric vehicles have some unique characteristics, e.g., long charging time compared to the refueling process of gas vehicles, which potentially makes a difference in providing ridesharing services. In this paper, we seek to shed light on the evolution of city-scale ridesharing services with the penetration of large-scale electric vehicles. In particular, our study is based on a ridesharing operation dataset from the Chinese city Shenzhen in 2019, including all orders served by over 50,000 unique ridesharing drivers. We perform a set of observations on the differences between gas vehicle and electric vehicle drivers for ridesharing services from different dimensions, e.g., spatial, temporal, and income, etc. Our study shows that understanding the evolution of city-scale ridesharing with the penetration of electric vehicles has strong implications for ridesharing drivers, passengers, operators, and city governments. On the one hand, our findings paint a promising picture of electric vehicles for ridesharing services, showing its prosperity in the Chinese city Shenzhen. On the other hand, our study also has the potential to provide some meaningful guidelines for other cities that plan to replace their vehicles for ridesharing services with electric vehicles based on the obtained insights, e.g., possible drawbacks for long trips and charging infrastructure deployment.
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The gig economy provides workers with the benefits of autonomy and flexibility but at the expense of work identity and coworker bonds. Among the many reasons why gig workers leave their platforms, one unexplored aspect is the lack of an organization identity. In this study, we develop a team formation and interteam contest field experiment at a ride-sharing platform. We assign drivers to teams either randomly or based on similarity in age, hometown location, or productivity. Having these teams compete for cash prizes, we find that (1) compared with those in the control condition, treated drivers work longer hours and earn 12% higher revenue during the contest; (2) the treatment effect persists two weeks postcontest, albeit with half of the effect size; and (3) drivers in hometown-similar teams are more likely to communicate with each other, whereas those in age-similar teams continue to work longer hours and earn higher revenue during the two weeks after the contest ends. Together, our results show that platform designers can leverage team identity and team contests to increase revenue and worker engagement in a gig economy. This paper was accepted by David Simchi-Levi, behavioral economics and decision analysis. Funding: Financial support from the platform through the Michigan Institute for Data Science is gratefully acknowledged. Supplemental Material: The e-companion are data are available at https://doi.org/10.1287/mnsc.2022.4624 .
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Customer Satisfaction and loyalty are critical indicators of the sharing economy’s long-term viability, particularly in developing countries. The main objective of this study is to develop a service quality model applicable in the sharing economy based on the ridesharing service perspective.Through synthesizing existing theories and literature, the dynamics of ridesharing service quality (RSSQUAL) have been conceptualized. To verify the study using thePLS-SEM analysis technique, data have been collected in Dhaka from 210 users of ridesharing services through an online questionnaire survey. This study finds that ridesharing service quality is a second- order model, whereby six primary dimensions including service availability, ease of use, empathy, tangibles, security & privacy, and cost constitute the primary dimensions. The study also finds significant relationships among RSSQUAL, service loyalty and customer satisfaction. Theoretically, this study extends the research of sharing economy through proposing the RSSQUAL model in a new research context. Practically, companies can focus on key quality dimensions to better satisfy the customers. Finally, the viability of sharing economy in the developing countries has been assessed through the determination of customer service loyalty and satisfaction.
Article
This paper uses a difference‐in‐differences strategy and an event‐study analysis to evaluate the effect of Uber entries on vehicle miles travelled in 346 US Metropolitan statistical areas between 2011 and 2017. Empirical results demonstrate that Uber entries have no significant effect on the total vehicle miles travelled in a city. However, Uber is found to decrease the vehicle miles travelled on highways but increase them on collector roads. All these effects come mainly from large metropolitan statistical areas. A simulation exercise suggests that Uber entries cause longer travel times if the share of travel time spent on collector roads is high. Les services de covoiturage causent‐ils de l'encombrement de la circulation? Cet article utilise une stratégie des doubles différences et une analyse d'étude d'événement afin d'évaluer l'effet de l'arrivée du service Uber sur les véhicules‐milles parcourus (VMP) dans 346 régions métropolitaines aux États‐Unis entre 2011 et 2017. Les résultats empiriques montrent que l'arrivée d'Uber n'a aucun effet significatif sur les VMP totaux dans une ville. Toutefois, nous constatons qu'en raison d'Uber, les VMP diminuent sur les autoroutes et augmentent sur les routes collectrices. Tous ces effets proviennent surtout des grandes régions métropolitaines. Un exercice de simulation donne à penser que l'arrivée d'Uber provoque un temps de déplacement plus long si la proportion du temps de déplacement sur les routes collectrices est élevée.
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Ridesharing services such as Uber and Lyft have been substantially affected by the ongoing COVID-19 pandemic. Drawing on social capital theory, the current research investigates how social trust relates to three types of trust in compliance with COVID-19 guidelines and consumers' ridesharing intentions. Analyzing data from two economically and culturally distinct countries, the results suggest that social trust positively affects trust in platform companies' compliance with COVID-19 guidelines (TPC), but not (or to a lesser extent) trust in drivers' (TDC) and other riders (TRC) compliance with COVID-19 guidelines in both the United States and Bangladesh. Importantly, TPC, TDC, and TRC are positively related with consumers' ridesharing intentions in the United States but not in Bangladesh. Furthermore, the analysis reveals two counterintuitive moderating effects of fear of COVID-19 and trust in God. The results provide important insights on factors affecting the ridesharing industry in the context of the COVID-19 pandemic, and they emphasize the importance of considering cultural context in understanding consumers’ intentions to engage in the sharing economy.
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This study aims to investigate the effects of coffee brand service quality and customer experience on brand equity, brand personality, and brand reputation. To achieve this purpose, the proposed research model was examined with structural equation modeling using R. Empirical analysis indicates that brand personality and brand reputation are determined by brand equity, which is formed by customer experience explained by service quality. Specific service quality factors that affect customer experience are interaction and result qualities. However, physical environmental quality did not have a statistically significant effect on customer experience. Analysis results suggest that the personality, reputation, and equity that customers have in a coffee brand can be enhanced by customer experience through service quality. The results of this research support the idea of needing to compete with strong brands and how marketing and management tactics around service quality and customer experience can help a company compete.
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In light of the increasing development of technological innovation and information and communication technologies, features of mobile apps functions are also increasingly developed to meet people's needs and wants. Amongst the variety, shared transportation apps (STA) have emerged to optimize people's daily transportation needs. This study modified the expectation-confirmation theory and the post-acceptance model of information system continuance to examine the effects of customers' perceived STA performance (service performance, content provision, and system performance) and benefits (function, money worthiness, pleasure, and social interaction) on customer satisfaction with the usage of STA, which is expected to have a positive effect on customer retention on STA in a new theoretical framework, called the performance-benefit of the STA continuance model (PBCM). Moreover, brand awareness was expected to be an essential moderator on the effect of perceived performance and perceived benefits on customer satisfaction. 397 respondents were recruited online through a convenient sampling technique in the Vietnam market. Results show that service performance, money worthiness, pleasure, and social interaction are four important determinants of customer satisfaction with STA. Moreover, brand awareness significantly moderates the effects of service performance, system performance, money worthiness, and social interaction on customer satisfaction. Findings also contribute rational strategies for e-commerce managers in general and STA managers in particular.