Abstract
Sophisticated and ever-evolving technology enacts many companies use and utilize technology as a mean of delivering innovative and creative new services. Technological developments are widespread in various fields and one of them is in the field of online transportation. The high demand for fast and efficient transportation modes causes the companies engaged in the sector by providing online transportation services are increasing. High competition and large number of drivers require the companies to focus highly on providing high quality services to maintain and increase the number of consumers. This study aims to analyze the effect of service quality on word-of-mouth and repurchase intentions to 80 consumers of online transportation in Indonesia. Partial Least Square Structural Equation Model (PLS-SEM) was employed to analyze the data. The results signifies that there is a positive relationship between service quality to word-of-mouth and repurchase intention. Similarly, word-of mouth significantly influences repurchase intention. Further managerial implications are discussed.
Highlights
Enterprises in the field of public transportation services today become a profitable business prospects, especially in the big cities and surrounding areas
While the word of mouth (WOM) indicators are adopted from Zeithaml et al (1996) which are the result of the question: I will invite my relatives to use online transportation services and I will share information about online transportation services to others through social media
The indicators of repurchase intention are adopted from Liu & Lee's (2016) model which are the result of the questions: 1) I always use this online transportation service as a top priority, 2) I will keep using this online transportation service service over others, 3) I always prioritize this online transportation service for future use, 4) I will always use online transportation service even though there are many other competitors, 5) I will keep using this online transportation service other brands are more famous, 6) I
Summary
Enterprises in the field of public transportation services today become a profitable business prospects, especially in the big cities and surrounding areas. Communities need practical and fast transportation services, because it cannot be denied the most critical points of congestion is in Jakarta and surrounding areas. Ojek is an informal public transportation because its operation does not have permission from the government. Still, it is considered as an interested transportation mean because it is faster, can pass through the jam, and able to reach the areas with narrow alleys which are difficult to pass by large vehicles such as cars. At the beginning of the emergence of this online transportation in Indonesia in 2011, there is only one brand existing that serves the needs of the community. The high competition in this online transportation industry requires online transportation companies to pay attention, maintain, and improve the quality of services so that consumers do not switch to other brands
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