“How” and “What” Service Quality Influence Passenger’s Satisfaction in Grab, Ride-hailing Service, Malaysia
This research integrated the SERVQUAL model into European perspective of two-dimensional service quality concept focusing on “how” and “what” service quality influence the passenger satisfaction in Grab, ride-hailing services in Malaysia. A second-order model approach was developed to conceptualize the functional quality “how” dimension and outcome quality “what” dimension. Functional quality dimension is measured by the first-orders construct of assurance, empathy, responsiveness and reliability, while the Outcome quality dimension is measured by tangible, waiting time and valence. A non-probability judgmental sampling method via questionnaire was conducted and collect from 242 Grab-ride healing passenger in Malaysia. Partial least squares structural equation modelling (PLS-SEM) and Statistical Programmers for Social Science software (SPSS) were employed for data analysis. From the PLS-SEM measurement model analysis, all the construct reliability and validity are met and the structural model shows a substantial explanatory power and predictive accuracy for this study. The results show all the hypotheses were supported. Therefore, it validated the European perspective of understanding “how” and “what” service quality on passenger satisfaction in Grab, ride-hailing service in Malaysia. It further confirmed the service quality in ride-hailing service is multi-dimensional which both of the functional and outcome quality brings significant influence on passenger satisfaction. The model and result provide practical guideline and theoretical insight for service providers and researchers to understand how service should be delivered and what service outcome that passenger expected for future quality and strategy improvement in order to sustain and for long term success.
Alonso, B., Barreda, R., dell’Olio, L., & Ibeas, A. (2018). Modelling user perception of taxi service quality. Transport Policy, 63(2018), 157-164.
Arne, D. K. & Bart, L. (2014). How technical and functional service quality drive consumer happiness. Journal of Service Management, 25(1), 30-48.
Brady, M. K., & Cronin, J. Jr. (2001). Some new thoughts on conceptualizing perceived service quality: a hierarchical approach. Journal of Marketing, 65(3), 34-49.
Brady, M. K., Voorhees, C. M., Cronin, J. J., & Bourdeau, B. L. (2006). The good guy don’t always win: the effect of valence on service perceptions and consequence. Journal of Service Marketing, 20(2), 83-91.
Brown, A., & LaValle, W. (2021). Hailing a change: comparing taxi and ridehail service quality in Los Angeles. Transportation, 48, 1007-1031.
Buttle, F. (1996). SERVQUAL: review, critique, research agenda. European Journal of Marketing, 30(1), 8-32.
Chia, K. M., Rohizan, A., Tee, P. K., & Tajuddin, A. R. (2019). Evaluation of service quality dimensions towards customer’s satisfaction of ride-hailing services in Kuala Lumpur, Malaysia. International Journal of Recent Technology and Engineering, 7(5S), 102-109.
Chica-Olmo, J., Gachs-Sánchez, H., & Lizarraga, C. (2018). Route effect on the perception of public transport services quality. Transport Policy, 67, 40-48.
Choy, J. Y. (2013). A study of service quality, customer satisfaction, and behavioral intention of consumers for fast food industry in Malaysia. Unpublished master’s dissertation, Universiti Tunku Abdul Rahman, Kampar, Perak, Malaysia.
Dabholkar, P. A, Thorpe, D. I., & Rentz, J. O. (1996). A measure of service quality for retail stores: scale development and validation. Journal of Academy of Marketing Science, 24(1), 2-16.
Faizan, A., Kashif, H., Rupam, K., & Jeon, J. M. (2017). The effect of technical and functional quality on guests’ perceived hotel service quality and satisfaction: a SEM-PLS analysis. Journal of Quality Assurance in Hospitality & Tourism, 18(1), 354-378.
Fatima, T., Malik, S.A. & Shabbir, A. (2018). Hospital health care service quality, patient satisfaction and loyalty: An investigation in context of private health care systems. International Journal of Quality & Reliability Management, 35(6) 1195-1214.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
Grab (2016, November 3). Grab awarded ride-hailing industry’s first ISO certification. Grab Press Centre. https://www.grab.com/sg/press/social-impact-safety/grab-awarded-ride-hailing-industrys-first-iso-certification/
Gregor, S. (2006). The nature of theory in information systems. MIS Quarterly, 30(3), 611-642.
Grönroos, C. (1984). A service quality model and its marketing implications. European Journal of Marketing, 18(4), 36-44.
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Mediation Analysis. In Partial Least Square Structural Equation Modeling (PLS-SEM) Using R. Classroom Companion: Business. Springer, Cham.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). Sage.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24.
Hui, M. K., Tse, C. A. & Zhou, L. (2006). Interaction between two types of information on reactions to delays. Market Letter, 17(2), 151–162.
Indra, B., & Ibrahim, H. (2017). The influence of customer satisfaction on ride-sharing services in Malaysia. International Journal of Accounting & Business Management, 5(2), 184-196.
Jain, S., & Jain, S. K. (2015). Does outcome quality matter? An investigation in the context of banking services in an emerging market. Journal of Consumer Marketing, 32(5), 341-355.
Jöreskog, K.G. (1971). Simultaneous factor analysis in several populations. Psychometrika, 36(4), 409-426.
Jose, A. M. G., & Laura, M. C. (2010). Rethinking perceived service quality: An alternative to hierarchical and multidimensional models. Total Quality Management & Business Excellence, 21(1), 93–118.
Kang, G. D. (2006). The hierarchical structure of service quality: integration of technical and functional quality. Managing Service Quality: An International Journal, 16(1), 37-50.
Kang, G. D., & James, J. (2004). Service quality dimensions: an examination of Grönroos’s service quality model. Managing Service Quality: An International Journal, 14(4), 266-277.
Kokku, R., Ahmed, A. A-M., & Prince, V. J. (2011). Measuring commuters’ perception on service quality using SERVQUAL in public transportation. International Journal of Marketing Studies, 3(1), 21-34.
Kurniawati, A., Raj, M. S. S. & Singh, J. S. K. (2021). The study of customer satisfaction among grab users in Kuala Lumpur, Malaysia. Electronic Journal of Business and Management, 6(2), 30-64.
Mapunda, M. A. (2021). Customers’ Satisfaction on Bus Rapid Transit Services in Tanzania: The SERVQUAL Model Perspective. In J.N. Mojekwu, W. Thwala, C. Aigbavboa, L. Atepor, & S. Sackey (Eds.), Applied Research Conference in Africa 2020: Sustainable Education and Development (pp. 194-208). Springer.
Meesala, A. & Paul, J. (2018). Service quality, consumer satisfaction and loyalty in hospitals: thinking for the future. Journal of Retailing and Consumer Services, 40(2018), 261-269.
Ministry of Transport Malaysia. (2019). National Transport Policy 2019-2030. Retrieved from MyGOV - Government Policies | National Transport Policy 2019-2030 (malaysia.gov.my)
Nathan. L. (2019, May 13). Grab Malaysia scores lowest in effective crisis management. The Malaysian Reserve. https://themalaysianreserve.com/2019/05/31/grab-malaysia-scores-lowest-in-effective-crisis-management/#:~:text=E%2Dhailing%20firm%20Grab%20Malaysia,Crisis%20Management%20Communication%20Strategies%202019
Nguyen-Phuoc, D. Q., Su, D. N., Tran, P. T. K., Le, D. T. T., & Johnson, L. W. (2020). Factors influencing customer's loyalty towards ride-hailing taxi services–a case study of Vietnam. Transportation Research Part A: Policy and Practice, 134, 96-112.
Nunkoo, R., Teeroovengadum, V., Thomas, P., & Leonard, L. (2017). Integrating service quality as a second-order factor in a customer satisfaction and loyalty model. International Journal of Contemporary Hospitality Management, 29(12), 2978-3005.
Ocampo, L., Alinsub, J., Casul, R. A., Enquig, G., Luar, M., Panuncillon, N., Bongo, M., & Ocampo, C. O. (2019). Public service quality evaluation with SERVQUAL and AHP-TOPSIS: a case of Philippine government agencies. Socio-Economic Planning Science, 68, 1-14.
Olawole, M. S. (2021). An empirical study of commuters’ satisfaction with taxi service quality in Abeokuta, Nigeria. Transportation Research Interdisciplinary Perspectives, 11, 1-8.
Oliver, R. (1980). A Cognitive Model of The Antecedent and Consequences Of Satisfaction Decisions. A Journal of Marketing, 17(10), 460-469.
Ooi, K. B., Foo, F. E., Tan, G.W.H., Hew, J.J. & Leong, L.Y. (2021). Taxi within a grab? A gender-invariant model of mobile taxi adoption. Industrial Management & Data Systems, 121(2), 312-332.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41-50.
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), 12-37.
Rossiter, J. R. (2002). The C-OA-SE procedure for scale development in marketing. International Journal of Research in Marketing, 19(4), 305-335.
Rust, R. T., & Oliver, R. L. (1994). Service quality: insights and managerial implications from the frontier. In Rust, R. T., & Oliver, R. L. (Eds.), Service quality: new directions in theory and practice. (p. 1-19). Thousand Oaks, CA: Sage Publications.
Sam, E. F., Hamidu, O., & Daniels, S. (2018). SERVQUAL analysis of public bus transport services in Kumasi metropolis, Ghana: core user perspectives. Case Studies on Transport Policy, 6, 25-31.
Shaaban, K., & Kim, I. (2016). Assessment of the taxi service in Doha. Transport Research Part A: Policy and Practice, 88, 223-235.
Stephany, A. (2015). The business of sharing: Making it in the new sharing economy. Springer
Tan, M. Z. (2019). Besides Grab, Have You Heard of Malaysia’s 41 Other E-Hailing Firms?, Malay Mail, available at: https://www.malaymail.com/news/life/2019/10/21/besides-grab-have-you-heard-ofmalaysias-41-other-e-hailing-firms/1802202 (accessed 20 March 2020)
Ting, C-T., Huang, Y-S., Lin, C-T., & Pan, S-C. (2019). Evaluation of consumers’ WTP for service recovery in restaurant: Waiting time perspective. Administrative Sciences, 9(3), 1-18.
Wan Rashid, W. E., & Jusoff, H. K. (2009). Service quality in health care setting. International Journal of Health Care Quality Assurance, 22(5), 471-82.
Wibawa, B. M., Anggadwita, G., Mardhotillah, R. R., Husin, S. N., Komara Putri, A. Z. & Putri, S, L. (2022). Gojek vs Grab: which one is better in creating customer satisfaction and loyalty? Business and Finance Journal, 7(1), 11-24.
Wong, K. K. K. (2013). Partial Least Squares Structural Equation Modeling (PLS-SEM) Techniques Using Smart PLS. Marketing Bulletin, 24(1), 1-32.
Wu, H. C., & Ko, Y. J. (2013). Assessment of service quality in hotel industry. Journal of Quality Assurance in Hospitality & Tourism, 14(3), 218-244.
Yao, Z-G., & Ding, X-D. (2011). Measuring Passenger’s Perceptions of Taxi Service Quality with Weighted SERVPERF: A Case of Hangzhou, China. Applied Mechanics and Materials, 97(98), 1181-1184.
Yusoff, S. Z., Ghazali, M. F., Mohamad, N., Hassan, I., Abdullah, N. H., Azmy, S. N. M. S., & Azmi, N. J. (2021). Transportation as a driver for sustainable tourism in Terengganu, Malaysia. Journal of Contemporary Issues in Business and Government, 27(1), 1-13.
Zakaria, Z., Hussin, Z. H, Batau, M. F. A., & Zakaria, Z. (2010). Service quality of Malaysian public transports: a case study in Malaysia. Cross-Cultural Communication, 6(2), 84-92.
Zeithaml, V.A. (1987). Defining and Relating Prices, Perceived Quality and Perceived Value, Marketing Science Institute, Cambridge, MA.
Zulkiffli, W. F. W., Mahshar, M., Hashim, N. A. A. N., Anuar, N. I. M. & Muhammad, M. Z. (2020). Investigating the effect of service quality on customer satisfaction case study: ride-hailing service in Malaysia. International Journal of Engineering Research and Technology, 13(12), 5423-5428.