Track: Undergraduate Student Paper Competition

Abstract

Ride-hailing business in Indonesia is facing challenges due to the COVID-19 pandemic. This situation urgently needed readjustment to maintain customer satisfaction with unexplored antecedents and its relationships between known variables from before the pandemic. Therefore, this study will explore the relationship between ride-hailing customer satisfaction and its antecedents in terms of price perception and COVID-19 prevention services during the new normal era. This study conducted an online survey with convenience sampling techniques in the sampling process. Afterward, Partial Least Square (PLS)-Structural Equation Modeling (SEM) is used as the analysis tool because the predictability of exogenous variables is the main objective. In this exploratory study, the formative measurement model is used and analyzed thoroughly by the SMART-PLS application. The results show that price perception and COVID-19 prevention service significantly influence ride-hailing customer satisfaction. However, the COVID-19 prevention service does not have a significant indirect effect on customer satisfaction through price perception as a mediator variable. The discussed strategies that can be applied to maintain and increase customer satisfaction are developing exclusive features for female customers, improving health protocols in the new normal era, and strengthening the market position with operational excellence.