Trust, Perceived Quality, and Value for Money as Determinants of Customer Loyalty: Insights from the inDrive App
Keywords:
Perceived Quality, Value For Money, Trust, Customer Loyalty, Ride HailingAbstract
One of the industries affected by the growth in the number of internet users and advances in digital technology in Indonesia is online transportation. However, the inDrive company showed the smallest performance, which only reached 4.03 million downloads, this merchant was very far behind its competitors, namely Gojek, Grab and Maxim. InDrive has implemented a unique concept, namely the bidding feature in order to achieve fairness and transparency and maximize services with the SHIELD security feature. Therefore, this study aims to identify the effect of value for money, perceived quality on trust, mediate trust in value for money and perceived quality on customer loyalty, and trust in customer loyalty. This research is a quantitative study, with data sources obtained from online questionnaires distributed to 130 respondents who have used the inDrive application in Indonesia who were analyzed using the Structural Equation Model on SmartPLS. The findings of this study are that perceived quality and value for money has a positive and significant effect on trust, trust mediates perceived quality and value for money on customer loyalty and trust has a positive and significant effect on customer loyalty. Trust is the most significant variable affecting customer loyalty, so inDrive Indonesia management must focus on maintaining consistency and increasing consumer trust
References
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Lacap, J. P. G., Plaza, M. N., Caballero, J., & dela Cruz, M. (2023). Factors affecting consumer attitude and loyalty: evidence from a Philippine chain of fast-food restaurants’ smart retailing technology. Journal of Science and Technology Policy Management. https://doi.org/10.1108/JSTPM-09-2022-0159
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Nadia, J., Sonia, S.-M., & Ignacio, A. J. (2016). Trust and Satisfaction: The Keys to Client Loyalty in Mobile Commerce. Academia Revista Latinoamericana de Administración, 29(4), 486–510.
Najib, M., Ermawati, W. J., Fahma, F., Endri, E., & Suhartanto, D. (2021). Fintech in the small food business and its relation with open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1). https://doi.org/10.3390/joitmc7010088
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Ricadonna, N. A., Saifullah, M., & Prasetyoningrum, A. K. (2021). The Effect of Trust and Brand Image on Customer Retention with Customer Loyalty as Intervening Variables to Customers of Sharia Commercial Banks. Jurnal Keuangan Dan Perbankan, 25(2), 311–323. https://doi.org/10.26905/jkdp.v25i2.5145
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Sawlani, D. K. (2021). Keputusan Pembelian Online: Kualitas Website, Keamanan dan Kepercayaan. Scopindo Media Pustaka.
Shanahan, T., Tran, T. P., & Taylor, E. C. (2019). Getting to know you: Social media personalization as a means of enhancing brand loyalty and perceived quality. Journal of Retailing and Consumer Services, 47(January 2018), 57–65. https://doi.org/10.1016/j.jretconser.2018.10.007
Shapoval, V., Murphy, K. S., & Severt, D. (2018). Does service quality really matter at Green restaurants for Millennial consumers? The moderating effects of gender between loyalty and satisfaction. Journal of Foodservice Business Research, 21(6), 591–609. https://doi.org/10.1080/15378020.2018.1483698
Statista. (n.d.). Leading ride-hailing apps in Indonesia in 2022, by number of downloads (in millions). Statista.Com. Retrieved July 17, 2023, from https://www.statista.com/statistics/1383211/indonesia-leading-ride-hailing-apps-by-downloads/
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Suhartanto, D., Djatnika, T., Suhaeni, T., & Setiawati, L. (2023). Halal trust during the COVID-19 outbreak: the role of quality, perceived benefit and health risk evidence from mobile food purchasing. Journal of Islamic Accounting and Business Research, 14(5), 767–781. https://doi.org/10.1108/JIABR-02-2022-0048
Suhartanto, D., Marwansyah, Muflih, M., Najib, M. F., & Faturohman, I. (2020). Loyalty formation toward Halal food: Integrating the Quality–Loyalty model and the Religiosity–Loyalty Model. British Food Journal, 122(1), 48–59. https://doi.org/10.1108/BFJ-03-2019-0188
Susilawati, A. D., Wahyudi, F., Putra, W. P., Supriyanto, W., & Limpo, L. (2024). The Impact of Digital User Experience on Brand Perception and Consumer Loyalty in the E-Commerce Industry in Indonesia. The Eastasouth Journal of Information System and Computer Science, 1(03), 109–122. https://doi.org/10.58812/esiscs.v1i03.244
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van Lierop, D., Badami, M. G., & El-Geneidy, A. M. (2018). What influences satisfaction and loyalty in public transport? A review of the literature. Transport Reviews, 38(1), 52–72. https://doi.org/10.1080/01441647.2017.1298683
Wantara, P., & Tambrin, M. (2019). ITHJ International Tourism and Hospitality Journal The Effect of Price and Product Quality Towards Customer Satisfaction and Customer Loyalty on Madura Batik. International Tourism and Hospitality Journal, 2(1), 1–9. https://rpajournals.com/ithj:https://rpajournals.com/ithj
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Wongkitrungrueng, A., & Assarut, N. (2020). The role of live streaming in building consumer trust and engagement with social commerce sellers. Journal of Business Research, 117(September 2018), 543–556. https://doi.org/10.1016/j.jbusres.2018.08.032
AboElHamd, E., Abdel-Basset, M., Shamma, H. M., Saleh, M., & El-Khodary, I. (2021). Modeling Customer Lifetime Value Under Uncertain Environment. Neutrosophic Sets and Systems, 39, 10–30. https://doi.org/10.5281/zenodo.4444936
Ahmad, N., Mahmood, A., Ariza-Montes, A., Han, H., Hernández-Perlines, F., Araya-Castillo, L., & Scholz, M. (2021). Sustainable businesses speak to the heart of consumers: Looking at sustainability with a marketing lens to reap banking consumers’ loyalty. Sustainability (Switzerland), 13(7), 1–16. https://doi.org/10.3390/su13073828
Ahmed, S., Choudhury, M. M., Ahmed, E., Chowdhury, U. Y., & Asheq, A. Al. (2021). Passenger satisfaction and loyalty for app-based ride-sharing services: through the tunnel of perceived quality and value for money. TQM Journal, 33(6), 1411–1425. https://doi.org/10.1108/TQM-08-2020-0182
Akman, I., & Mishra, A. (2017). Factors influencing consumer intention in social commerce adoption. Information Technology and People, 30(2), 356–370. https://doi.org/10.1108/ITP-01-2016-0006
Al-Ansi, A., & Han, H. (2019). Role of halal-friendly destination performances, value, satisfaction, and trust in generating destination image and loyalty. Journal of Destination Marketing and Management, 13(May), 51–60. https://doi.org/10.1016/j.jdmm.2019.05.007
Alamsyah, A., & Rachmadiansyah, I. (2018). Mapping online transportation service quality and multiclass classification problem solving priorities. Journal of Physics: Conference Series, 971(1). https://doi.org/10.1088/1742-6596/971/1/012021
Almunawar, M. N., & Anshari, M. (2022). Customer acceptance of online delivery platform during the COVID-19 pandemic: the case of Brunei Darussalam. Journal of Science and Technology Policy Management. https://doi.org/10.1108/JSTPM-04-2022-0073
Amoako, G. K., Neequaye, E. K., Kutu-Adu, S. G., Caesar, L. D., & Ofori, K. S. (2019). Relationship marketing and customer satisfaction in the Ghanaian hospitality industry: An empirical examination of trust and commitment. Journal of Hospitality and Tourism Insights, 2(4), 326–340. https://doi.org/10.1108/JHTI-07-2018-0039
Anshari, M., Almunawar, M. N., Shahrill, M., Wicaksono, D. K., & Huda, M. (2017). Smartphones usage in the classrooms: Learning aid or interference? Education and Information Technologies, 22(6), 3063–3079. https://doi.org/10.1007/s10639-017-9572-7
APJII. (2022). APJII di Indonesia Digital Outloook 2022. Apjii.or.Id. https://apjii.or.id/berita/d/apjii-di-indonesia-digital-outloook-2022_857#:~:text=Internet Indonesia (APJII)%2C jumlah,ke internet pada tahun 2021.
Desembrianita, E., Mulyono, S., Putra, W. P., & Tarjono. (2024). Influence of Digital Marketing, Consumer Trust, and Brand Loyalty on Purchase Intention (Case Study of Green Product Consumers). International Journal of Business, Law, and Education, 5(2), 2003–2015. https://doi.org/10.56442/ijble.v5i2.775
Febrinastri, F. (2022). inDrive Tawarkan Banyak Fleksibilitas dan Peluang Menghasilkan Uang. Suara.Com.
Gao, L., Waechter, K. A., & Bai, X. (2015). Understanding consumers’ continuance intention towards mobile purchase: A theoretical framework and empirical study - A case of China. Computers in Human Behavior, 53, 249–262. https://doi.org/10.1016/j.chb.2015.07.014
Ghozali, I., & Latan, H. (2021). Partial Least Square : Konsep, Teknik, dan Aplikasi Menggunakan Progam SmartPLS 3.0 untuk Penelitian Empiris. Badan Penerbit Universitas Diponegoro.
Griffin, J. (2019). Cutsomer Loyalty : Membutuhkan & Mempertahankan Kesetiaan Pelanggan. Erlangga.
Hair, J. F., M.Hult, G. T., M.Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). In Sage (2nd ed.). SAGE Publications.
Hassan, Y., & Pandey, J. (2020). Examining the engagement of young consumers for religiously sanctioned food: the case of halal food in India. Young Consumers, 21(2), 211–232. https://doi.org/10.1108/YC-01-2019-0940
Haverila, M., Twyford, J., & Haverila, K. (2020). Critical variables and constructs in the context of project management: importance-performance analysis. International Journal of Managing Projects in Business. https://doi.org/10.1108/IJMPB-02-2020-0071
Hendayani, R., & Fernando, Y. (2022). Adoption of blockchain technology to improve Halal supply chain performance and competitiveness. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-02-2022-0050
Ismail, I. J. (2023). Speaking to the hearts of the customers! The mediating effect of customer loyalty on customer orientation, technology orientation and business performance. Technological Sustainability, 2(1), 44–66. https://doi.org/10.1108/techs-03-2022-0016
Judijanto, L., Supriyanto, W., Afin, A., & Mayndarto, E. C. (2023). The Impact of Digital Technology Implementation on the Productivity of MSMEs in Jakarta: An Analysis of E-commerce Adoption, Business Process Automation, and Business Growth. West Science Journal Economic and Entrepreneurship, 1(12), 453–462. https://doi.org/10.58812/wsjee.v1i12.448
Khan, S. M., Ali, M., Puah, C. H., Amin, H., & Mubarak, M. S. (2022). Islamic bank customer satisfaction, trust, loyalty and word of mouth: the CREATOR model. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-01-2022-0017
Khuan, H., Putra, W. P., Muafiqie, H., Harsono, I., & Lau, E. A. (2024). The Effect of Service Quality, Price, and Destination Image on Customer Loyalty in the Tourism Industry in West Java. West Science Interdisciplinary Studies, 2(01), 235–243. https://doi.org/10.58812/wsis.v2i01.612
Lacap, J. P. G., Plaza, M. N., Caballero, J., & dela Cruz, M. (2023). Factors affecting consumer attitude and loyalty: evidence from a Philippine chain of fast-food restaurants’ smart retailing technology. Journal of Science and Technology Policy Management. https://doi.org/10.1108/JSTPM-09-2022-0159
Lee, S. H., Lee, B. Y., & Kim, H. W. (2019). Decisional factors leading to the reuse of an on-demand ride service. Information and Management, 56(4), 493–506. https://doi.org/10.1016/j.im.2018.09.010
Nadia, J., Sonia, S.-M., & Ignacio, A. J. (2016). Trust and Satisfaction: The Keys to Client Loyalty in Mobile Commerce. Academia Revista Latinoamericana de Administración, 29(4), 486–510.
Najib, M., Ermawati, W. J., Fahma, F., Endri, E., & Suhartanto, D. (2021). Fintech in the small food business and its relation with open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1). https://doi.org/10.3390/joitmc7010088
Penyalver, D., Turró, M., & Williamson, J. B. (2019). Measuring the value for money of transport infrastructure procurement; an intergenerational approach. Transportation Research Part A: Policy and Practice, 119, 238–254.
Putra, W. P., Hendayani, R., & Hidayah, R. T. (2023). Ipma’s Analysis on Factors Affecting Indrive Indonesia’s Customer Loyalty. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev, 8(6), 1–22. https://doi.org/https://doi.org/10.26668/businessreview/2023.v8i6.2320
Rahayu, Y. S., Setiawan, M., Irawanto, D. W., & Rahayu, M. (2020). Muslim customer perceived value on customer satisfaction and loyalty: Religiosity as a moderation. Management Science Letters, 10(5), 1011–1016. https://doi.org/10.5267/j.msl.2019.11.009
Ramezani Nia, M., & Shokouhyar, S. (2020). Analyzing the effects of visual aesthetic of Web pages on users’ responses in online retailing using the VisAWI method. In Journal of Research in Interactive Marketing (Vol. 14, Issue 4). https://doi.org/10.1108/JRIM-11-2018-0147
Ricadonna, N. A., Saifullah, M., & Prasetyoningrum, A. K. (2021). The Effect of Trust and Brand Image on Customer Retention with Customer Loyalty as Intervening Variables to Customers of Sharia Commercial Banks. Jurnal Keuangan Dan Perbankan, 25(2), 311–323. https://doi.org/10.26905/jkdp.v25i2.5145
Rifa’i, K. (2019). KEPUASAN PELANGGAN (CUSTOMER SATISFACTION) ; Membangun Loyalitas Pelanggan (1st ed.). Zifatama publisher. http://digilib.iain-jember.ac.id/693/1/BUKU MEMBANGUN LOYALITAS PELANGGAN OLEH Dr. KHAMDAN RIFA’I%2C SE.%2CM.Si.pdf
Sarkar, S., Chauhan, S., & Khare, A. (2020). A meta-analysis of antecedents and consequences of trust in mobile commerce. International Journal of Information Management, 50(March 2019), 286–301. https://doi.org/10.1016/j.ijinfomgt.2019.08.008
Sawlani, D. K. (2021). Keputusan Pembelian Online: Kualitas Website, Keamanan dan Kepercayaan. Scopindo Media Pustaka.
Shanahan, T., Tran, T. P., & Taylor, E. C. (2019). Getting to know you: Social media personalization as a means of enhancing brand loyalty and perceived quality. Journal of Retailing and Consumer Services, 47(January 2018), 57–65. https://doi.org/10.1016/j.jretconser.2018.10.007
Shapoval, V., Murphy, K. S., & Severt, D. (2018). Does service quality really matter at Green restaurants for Millennial consumers? The moderating effects of gender between loyalty and satisfaction. Journal of Foodservice Business Research, 21(6), 591–609. https://doi.org/10.1080/15378020.2018.1483698
Statista. (n.d.). Leading ride-hailing apps in Indonesia in 2022, by number of downloads (in millions). Statista.Com. Retrieved July 17, 2023, from https://www.statista.com/statistics/1383211/indonesia-leading-ride-hailing-apps-by-downloads/
Statista. (2023). Number of ride-hailing and taxi users in Indonesia from 2018 to 2027 (in millions). Statista.Com. https://www.statista.com/forecasts/1383373/indonesia-ride-hailing-and-taxi-number-of-users
Suhartanto, D., Djatnika, T., Suhaeni, T., & Setiawati, L. (2023). Halal trust during the COVID-19 outbreak: the role of quality, perceived benefit and health risk evidence from mobile food purchasing. Journal of Islamic Accounting and Business Research, 14(5), 767–781. https://doi.org/10.1108/JIABR-02-2022-0048
Suhartanto, D., Marwansyah, Muflih, M., Najib, M. F., & Faturohman, I. (2020). Loyalty formation toward Halal food: Integrating the Quality–Loyalty model and the Religiosity–Loyalty Model. British Food Journal, 122(1), 48–59. https://doi.org/10.1108/BFJ-03-2019-0188
Susilawati, A. D., Wahyudi, F., Putra, W. P., Supriyanto, W., & Limpo, L. (2024). The Impact of Digital User Experience on Brand Perception and Consumer Loyalty in the E-Commerce Industry in Indonesia. The Eastasouth Journal of Information System and Computer Science, 1(03), 109–122. https://doi.org/10.58812/esiscs.v1i03.244
Syah, A. (2021). Manajemen Pemasaran Kepuasan Pelanggan (A. T. Putranto (ed.); 1st ed.). Penerbit Widina Bhakti Persada Bandung.
van Lierop, D., Badami, M. G., & El-Geneidy, A. M. (2018). What influences satisfaction and loyalty in public transport? A review of the literature. Transport Reviews, 38(1), 52–72. https://doi.org/10.1080/01441647.2017.1298683
Wantara, P., & Tambrin, M. (2019). ITHJ International Tourism and Hospitality Journal The Effect of Price and Product Quality Towards Customer Satisfaction and Customer Loyalty on Madura Batik. International Tourism and Hospitality Journal, 2(1), 1–9. https://rpajournals.com/ithj:https://rpajournals.com/ithj
Wartaekonomi. (2023). Prioritaskan Aspek Keselamatan dan Kenyamanan Pelanggan, inDrive Perkenalkan Modul Safety+ dan Top Driver Club. Wartaekonomi.Co.Id.
Wirtz, J., & Lovelock, C. (2019). Essentials of Services Marketing. In Journal of Service Management (3rd ed., Issue 1). Pearson India Education Services Pvt. Ltd. https://doi.org/10.1108/09564230910936887
Wongkitrungrueng, A., & Assarut, N. (2020). The role of live streaming in building consumer trust and engagement with social commerce sellers. Journal of Business Research, 117(September 2018), 543–556. https://doi.org/10.1016/j.jbusres.2018.08.032
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2025-01-30
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Putra, W. P., Supriyanto, W., Noraga, G. B. ., & Tarjono. (2025). Trust, Perceived Quality, and Value for Money as Determinants of Customer Loyalty: Insights from the inDrive App. Journal of Management Science (JMAS), 8(1), 378–384. Retrieved from https://exsys.iocspublisher.org/index.php/JMAS/article/view/653
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