The impact of surge pricing on customer retention

Abstract

This study explores how satisfied customers are when they face surge pricing as well as how customer satisfaction affects customer retention. This study uses fuzzy set/Qualitative Comparative Analysis to generate relations and then qualitative analysis with structural associations to propagate the values and refine these relations. Both methods together generate proper relations for multi-layered problems. With data gathered from a group of executive MBA students in Taiwan, the empirical results show that loyal riders are more tolerable to surge pricing than non-loyal riders. Lastly, the evidence presents that customer satisfaction does not always positively affect customer retention.