“How” and “What” Service Quality Influence Passenger’s Satisfaction in Grab, Ride-hailing Service, Malaysia

Abstract

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.