THE RELATIONSHIP BETWEEN GOVERNMENT REGULATION AND CUSTOMER REPURCHASE INTENTION ON ONLINE RIDE SHARING COMPANIES IN BANDUNG 2020

• Main Author: Azizi, Yusuf
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64609
• Institution: Institut Teknologi Bandung

On May 2019, the government issues regulation about online ride hailing which give impact on decreasing demand on the ride hailing industry. The government regulation regulate about the service stadardization on online ride hailing company and also tariff calculation. The standardization could increase the standar of service quality on online ride hailing company, which is good for repurchase intention.In other hand, the government also make regulation regarding tariff calculation which give increase the tariff for online ride hailing companies. Based on some literature, the increasing price could make good or bad effect on perceived price towards repurchase intention. So it is important to know the correlation of perceived price, and perceived service quality after the implementation of regulation towards the repurchase intention. This research also aim to know the relationship between perceived service quality towards repurchase intention, and also identify SERVQUAL gap. SEM-PLS has been applied in this research to know the causal modelling between two variables and also SERVQUAL analysis is executed to give insight about the SERVQUAL gap. Questionnaire item is built upon theories and to determine the most representative indicator in each variable. Final data collection is gathered through online questionnaires for 425 sample size who already experienced using the online ride hailing in Indonesia after May 2019. Gojek’s SEM-PLS result are there is indirect effect of perceived service quality towards repurchase intenion through customer satisfaction and customer loyalty, and there is indirect effect of perceived price towards the repurchase intention through customer satisfaction. While for Grab’s SEM-PLS result are there is indirect effect of perceived service quality towards the repurchase intention through customer satisfaction, and there is significance influence of perceived price towards repurchase intention and also there is indirect effetc of perceived price towards repurchase intention through customer satisfaction. In order to increase their perceived service quality both companies are suggested to follow the SERVQUAL analysis result. It is important to maintain good perceived service quality which can lead to repurchase intention.