Customer Loyalty Model Development of Pool-To-Pool Shuttle Service

Abstract

The pool-to-pool shuttle service business, both for tourist and business purposes, has continued to grow in recent years owing to the aggressive competition among shuttle services which forces shuttle services to better understand their customers’ loyalty. This study seeks to develop a customer loyalty model by considering several factors that influence loyalty such as customer satisfaction, loyalty programs, corporate image, service recovery, perceived safety, price, and service quality. In addition, the effect of differences in the purpose of using the shuttle service was tested on the customer loyalty model. The sample of 384 respondents who have used shuttle services in the last 12 months were used in this study. Sample were divided into two groups, customer for business/college/school purpose and for vacations purpose. Data analysis is performed using multigroup SEM analysis. The SEM results of both of the group show that the absolute fit of the model is adequate judging by the RMSEA value of 0,062 and 0,063 respectively for each group. CFI and TLI which were used as the incremental fit also reach the value of more than 0,9 for both groups which indicate a good incremental fit. Furthermore, from the results showed that there was a significant moderating effect of the difference in the purpose of using the shuttle service on the customer loyalty model. In the group with business/college/school goals, safety perception has no effect on customer satisfaction and company image has no effect on customer loyalty. Customer satisfaction in this group is proven to influence customer loyalty, but the relationship is not stronger than the group with the purpose of using the shuttle service for vacations. In the group with vacation destinations, the perception of safety influences customer satisfaction, but company image has no effect on customer loyalty. Customer satisfaction in this group is proven to influence customer loyalty with a stronger tendency compared to the other group.