CHAPTER 1 Introduction
1.5 Scope and limitations
1.3 The purposes of this research
The purposes of this research were as follows:
1) To study the behavioral intention of Uber passengers in Bangkok city,
2) To study passengers’ behavioral intentions after experiencing the Uber service, 3) To study the connection between the influential factors in the essential tasks of service quality, perceived value, and user satisfaction,
4) To study the roles of service attitudes (i.e. service quality, perceived value, and user satisfaction) involved in the formulation of passenger behavioral intentions regarding the Uber service, and
5) To compare the behavior of working class customers using Uber cars within the Bangkok area. Demographic characteristics collected included gender, age, marital status, level of education, and monthly income.
1.4 Significances of this research
The outcome of the research will benefit all Uber users who are willing to assess information regarding the problems and opinions to develop online taxi services in the future. Results will also be advantageous to all departments involved in the planning and management of public transportation to effectively coordinate a world-class transportation system. Moreover, this information will assist Uber Managers and marketers to design effective blueprints to meet passenger needs, retain existing passengers, and attract new passengers to this exciting modern world of e-transportation.
1.5 Scope and limitations
Favorable behavioral intentions encompass three dimensions as word-of-mouth, purchase intentions, and price insensitivity, which together form customer loyalty. User satisfaction is generally seen as the main driver of consumer loyalty and behavior (Olsen, 2007). Studies based on the Theory of Planned Behavior (TPB), have widely identified customer satisfaction as the most important determinant of favorable behavioral intentions. Customer satisfaction is closely linked with perceived service quality and value for money
(Chen, 2008); (Jen & Hu, 2003); (Petrick, 2004). Customers who perceive good service quality are thus more likely to have a higher level of perceived value and satisfaction, and so continue to use the service.
The roles of service attitudes (i.e. service quality, perceived value, and satisfaction) involved in the formation of passenger behavioral intentions in the Uber service context are addressed here. To fill the gap in the current literature, this research aims to develop a relationship model that incorporates the main determinants of Uber passengers’ behavioral intentions and explores their interdependent effects. The paper is structured as follows: Part 2 presents the theoretical background and hypotheses of the proposed model, Part 3 describes the methodology with empirical results reported in Part 4, and a discussion of the findings and conclusions is presented in Part 5.
Chapter 2 Literature review
This chapter of this thesis provides information of literature published, which is collected form server theoretical of researcher and textbooks. Next is the hypothesis development in order to better understanding about the study of this research. The chapter starts with the theoretical of variables followed by the information of Uber in Thailand. This chapter ends with the research framework including all of hypotheses are performed here.
2.1 Theoretical of variables
2.1.1 Definition of behavioral intention
Behavioral intention is characterized as a person's apparent probability or
"subjective likelihood that he or she will take part in a given conduct. Behavioral intention is conduct particular and operational by direct inquiries, for example, "I mean to [behavior]," with Likert scale reaction decisions to gauge relative quality of goal. Goal has been spoken to in estimation by different equivalent words (I plan to [behavior]) and is unmistakable from comparable ideas, for example, craving and self-forecast (Armitage and Conner, 2001). Icek Ajzen (1991) contended that BI reflects how hard a man will attempt, and how roused he or she is, to play out the conduct
Because of the Theory of Planned Behavior (TPB), behavioral expectations assume to be the future behavior (I. Ajzen and Fishbein, 1980). Richard L Oliver (1997) expressed that ideal behavioral expectations could prompt client reliability, which is characterized as a pledge to repurchase or return for a favored item or administration later on. Behavioral aims can be signs that show whether a client will keep on utilizing an organization's administrations or alter their opinion to another diverse supplier (Zeithaml et al., 1996). Therefore, for better comprehension the traveler conduct, advertisers and supervisors of Uber frameworks will be better given to build up their items methodologies and more proper promoting administrations with a specific end goal to draw in new travelers and in addition hold existing ones
Fornell (1992) expressed that two practices which included over and over utilize the administration supplier and prescribing an administration supplier to other individuals are appear as an imperative keys of client unwaveringness. Yang and Peterson (2004) notice that numerous analysts have a tendency to apply the behavioral goal measure to speak to client dependability, since activity unwaveringness is hard to watch and is regularly similarly hard to quantify. Our study utilizes the behavioral aim measure of client faithfulness, which incorporates repurchase and behavior intention.
The factors we ought to apply for make a client dependability ought to be administration quality, satisfaction of consumer, and qualities are much of the time saw as key building pieces of client devotion (Chen, 2008). For a few analysts consider that higher nature of administration and levels of fulfillment can bring about positive behavioral expectations and client reliability. Cronin Jr et al. (2000) expressed that a few studies recommend that consumer loyalty ought to be utilized as a part of conjunction with perceived value, and the perceived value might be a superior indicator of repurchases intention than satisfaction. At that point, perceived value, satisfaction and service quality are embraced in this study to look at their impacts on behavioral intention.
2.1.2 Definition of perceived value
Zeithaml (1988) stated that perceived value concerned with a consumer’s overall assessment of the utility of a (product or service) based on perceptions of what is received and what is given. Specifically, perceived value comes from a trade-off between perceived benefits and perceived costs (Lovelock, 2007). Previous studies have suggested that perceived value may be a better predictor of repurchase intentions than either satisfaction or quality (Cronin et al., 2000; Petrick 2004; Woodruff ). Perceived value has been identified as lead to satisfaction and behavioral intentions. Cronin (2000) and Zeithaml (1988) said that many studies have concluded that service quality positively affects perceived value.
2.1.3 Definition of satisfaction
Satisfaction is an probably affective response to a perceived discrepancy between prior expectations and perceived performance after consumption (Oliver, 1980, 1999).
Johnson et al. (1995) implied that there are two general conceptual of satisfaction in the literature: transaction specific satisfaction (individual level) and cumulative satisfaction (customers’ total consumption experience).
In the real case, service quality and satisfaction are often used interchange, but differences between service quality and customer satisfaction are also clarified in the literature. Such as, the service quality judgments are more specific while customer satisfaction judgments are more holistic (Oliver (1997). Service quality is also related to knowledge judgments while customer satisfaction is associated with emotional judgments.
This study refers service quality to transaction specific satisfaction, which concerns the (dis) confirmation in the expectation gap of individual attributes, while cumulative satisfaction is conceptualized as overall satisfaction.
Chen (2008) and Fornell (1992) consider that in other words, overall satisfaction pertains to a holistic evaluation after a service delivery experience, and acts as a consequence of satisfaction with individual attributes. Past studies have shown evidence that customer satisfaction significantly affects customer loyalty and behavior intentions in various industries (Anderson and Sullivan, 1993; Cronin and Taylor, 1992; Fornell, 1992;
Oliver, 1980; Petrick and Backman, 2002).
2.1.4 Definition of service quality
Joewono and Kubota (2007) mentioned that service quality is a tool of measurement how well the service level delivered matches customer expectations, while a firm delivering quality service mean relative of customer expectations on a consistent basis. Thus, the explaination of which service performance matches customer expectations influences to the degree which customers feel satisfied. The SERVQUAL scale proposed by Parasuraman et al. (1985, 1988) based on the disconfirmation of expectations model (Oliver, 1980) is widely used to measure service quality. Moreover, this scale contains 22 items with five dimensions such as tangibility, reliability,
responsiveness, assurance, and empathy. Otherwise, these five dimensions and 22 associated items have been challenged as being inappropriate for some service businesses (Cronin and Taylor, 1992).
In the practice, appropriate modifications are thus generally needed in order to reflect the specific characteristics of the service context being studied.
Hu and Jen(2006) proposed a scale of bus service quality with 20 items under four dimensions interactions with passengers tangible service equipment, convenience of service, and operating management support and undertook a survey of bus services in Taipei, Taiwan. For interaction with passengers refers to the respect and care passengers feel when interacting with service providers, and how they respond to passengers
‘problems. Tangible service equipment relates to the level of comfort of the facilities and equipment operated by the service providers. Convenience of service concerns accessibility, the convenience of the service network and the information provided.
Finally, operating management support pertains to elements such as bus schedules, service periods, and the number of staff (Hu and Jen, 2006).
Joewono and Kubota (2007) measured the administration nature of Indonesian Para travel frameworks utilizing nine components with 54 traits. The nine elements are as per the following: accessibility, availability, dependability, data, client administration, solace, security, admission, and ecological effect. They investigated perceived of user service quality and overall satisfaction with the Para travel administration keeping in mind the end goal to make figures as to rivalry from engine vehicles in Bandung, Indonesia. The outcomes demonstrated that service quality has positive influence both overall satisfaction and customer loyalty, and overall satisfaction has a positive influence on customer loyalty. According to the study on measuring the service quality of Greek public transit systems, Tyrinopoulos and Antonious (2008) used a total of 23 attributes classified into 4 categories, including general characteristics of the public trans- port system, terminals & stops, vehicles, and transport points, based on the Handbook for Measuring Customer Satisfaction and Service Quality (Transportation Research Board, 1999). In the study, the service attributes are mainly based on those in Tyrinopoulos and Antonious (2008), and amended according to the specific service characteristics of UBER Taxi Service.
2.2 What is Uber?
Uber Technologies Inc. is an American multinational online transportation network company in San Francisco, California. It develops, markets and operates the Uber mobile application, which allows consumers with smartphones to submit a trip request, which is then routed to Uber drivers who use their own cars(Rusli, 2014).
2.3 Uber in Thailand
There are three UBER car services in Thailand such as UBER X, UBER BLACK, and UBER Taxi are in following detail.
a) UberX is licensed, if you booked a "regular" Uber car and one of these showed up, you'd be disappointed, and might leave some carping feedback. But by setting up a significant price differential, they can now expand the fleet (and car availability), with full disclosure that you might get a non-luxury car, but at least it will be much cheaper(Rose, 2014). UberX : price starts at 25 THB and increases 1 THB per minute and 4.5 THB per kilometer. The minimum cost per ride is 45 THB and there is also a 45 THB fee if you cancel the ride.(UberTechnologiesInc, 2016)
b) UberBlack is a "Black Car" in the Bangkok city hierarchy, and is the type typically used by businesses, usually a Lincoln, Cadillac or Mercedes town car that seats up to five passengers(Rose, 2014). UberBLACK: price starts at 50 THB and increases 2 THB per minute and 14 THB per kilometer. The minimum cost per ride is 50 THB and there is also a 75 THB fee if you cancel the ride.(UberTechnologiesInc, 2016)
c) UberTaxi is exactly what it sounds like: real, live, licensed taxicabs. The problem here is that in most jurisdictions, taxis are subject to very strict licensing, operating, franchise and fare regulations that are quite different from For Hire Vehicles. This is structurally the antithesis of the Uber post-modern philosophy of a free-wheeling, free-market, tech- and algorithm-based society(Rose, 2014).
2.4 Research framework
Figure 1: the conceptual framework
Based on the review of the literature the current study proposes the conceptual framework shown in Fig. 1. The hypotheses are stated as follows:
2.5 Research Hypothesis
Hypothesis 1: Service quality has positive influence on perceived value.
In order to study about the standard of the service that received of Uber passenger influence on the value of the service provided, based on their estimations of what is received and what is given.
Hypothesis 2: Service quality has positive influence with satisfaction.
In order to study about the standard of the service that received of Uber passenger influence on the ability of the trip experience to meet the need, expectations and the desires of passengers of Uber
Hypothesis 3: Service quality has positive influence with behavioral intention.
In order to study about the standard of the service that received of Uber passenger influence on the decisions of the UBER passengers about the possibilities of repurchase the Uber service.
Hypothesis 4: Perceived value has positive influence with satisfaction.
In order to study about the ability of the trip experience to meet the need, expectations and the desires of passengers of Uber influence on the ability of the trip experience to meet the need, expectations and the desires of passengers of Uber.
Hypothesis 5: Perceived value has positive influence with behavioral intention.
In order to study about the ability of the trip experience to meet the need, expectations and the desires of passengers of Uber influence on the decisions of the Uber passengers about the possibilities of repurchase the Uber service.
Hypothesis 6: Satisfaction has positive influence with behavioral intention.
In order to study about the ability of the trip experience to meet the need, expectations and the desires of passengers of Uber service influence on the decisions of the Uber passengers about the possibilities of repurchase the Uber service.
The focusing each of the measure constructs is as follow:
Behavioral intention: the decisions of the Uber passengers about the possibilities of repurchase the Uber service or tell others to use as recommendation.
Satisfaction: overall pleasure or satisfaction is Uber users, resulting from the ability of the trip experience to meet the need, expectations and the desires of passengers of Uber.
Perceived value: the Uber passenger's overall evaluation of the value of the service provided, based on their estimations of what is received (benefits) and what is given (costs or sacrifice)
Service quality: the evaluations of the Uber passengers of the standard of the service that received.
CHAPTER 3
RESEARCH METHODOLOGY
This chapter of this thesis provides information about the research methodology. First of all, the research design method has been chosen to determine the factors influencing passenger’s behavioral intention in Bangkok were performed in this chapter. Second, the construct of measuring variables and the approach that is taken in the questionnaire design stage are mentioned that shows the details of each factors or variables are measured. Third, The sampling technique has been described in the part of data collection, the information of sampling design and target population of this research paper. In addition, the information in the methods used to collect the data also provided in this part. Lastly, data analysis and methodology are also included in this chapter.
3.1 Research Design
For this research questionnaire survey is considered to be both exploratory and descriptive research based upon a review of the related literature(Lai & Chen, 2011). The logic behind this is that the questionnaire distributed is only exploring several problems about Uber service such as customer’s perceived value toward Uber. Also, the research provides a conclusion and the characteristics of the current situation under our study also to collect empirical data for this study. The design questionnaire divided into two parts.
The first part collected the general information of respondents’ demographic information of respondents, which were measured by multiple-choice questions. In order to collect respondents’ profile there are 5 questions in this parts asked about participates’ gender, age, marital status, education, and income per month, that the difference of demographic background may affect to the different result in this research. First of all, the given choices for gender are male and female. Second, below 18, 18-25 years old, 26-40 years old, 41-50 years old, and above 50 years are given choices of age. Third, the given choices of marital status are single, married, and divorce or separated. Forth, below bachelor Degree, bachelor degree, and higher than bachelor Degree are provided to be choices of education level. Finally, there are 6 multiple-choices for incomes per month are Below 5,000 Baht, 5,001-15,000 Baht, 15,001-25,000 Baht, 25,001-35,000 Baht, 35,001-45,000 Baht, and More than 45,000 Baht.
3.2 Construct of measuring variables
The questionnaire examined service quality 14 questions, perceived value 5 questions, Satisfaction 1 item questions and behavioral intention 2 questions that are measured using a Likert scale five point ranging from ‘strongly disagree (1)’ disagree (2)’ Neutral (3)’
agree (4) ‘strongly agree (5)’.
3.2.1 Service quality (dividend into two parts; core service and physical environment) Core Service
1. Service of the time (24 hr.) is able to response the need of the users 2. UBER’s network coverage is good
3. UBER’s general Information provision is good 4. Amount of vehicles is enough for the calling service 5. Uber’s fare price calculation is reliable and accurate
6. Total of the Uber fare price is reasonable in the level of the good service 7. The driver of UBER has good personality and able to trust.
8. The channel of the payment through credit card is convenient and solves the problem of the change.
9. There is the channel to evaluate the service, suggestion and request of each service that you use through the application
Physical environment
1. The driver is expert in the traffic and able to use the appropriate route.
2. Vehicle condition including inside and outside of the car are clean and safe 3. The total process for using the service App of Uber is easy to understand 4. I feel safe while using the service of Uber car
5. Size of the seat within the car suitable for the customers
3.2.2 Perceived value
1. Taking Uber is worth it compared with money I spent 2. Overall Uber meets my expectations.
3. Uber is at the top of my mind 4. Uber is the worth choice for me.
3.2.3 Satisfaction
1. Overall, I am satisfied with the service of Uber provided
3.2.4 Behavioral intention
1. I would like to recommend Uber to others
2. I will continue to use service of Uber in the future
3.4 Data collection
The target population for our research is the people in Bangkok which each person who has experience to used service of Uber. The sample size in our research is 300 respondents. The sampling technique that we used is “online questionnaire survey”, in which we distributed the questionnaire and let the respondents did it themselves without any helping and use convenience sampling technique by giving to anybody who has smartphones to answer the question designed via online questionnaire. Therefore, 300 questionnaires were distributed and 296 Thai passengers usable were obtained. Moreover, because of participants are Thai; these online questionnaires were translated into Thai languages with regard to avoid miscommunication as well as facilitate participants.
3.5 Data Analysis and methodology
The analysis of the survey data is processed using SPSS 22.0 and AMOS. First, for good construct reliability, Cronbach's alpha was calculated to examine the reliability of each variable, and Cronbach's alpha should be greater than 0.7 were acceptable.
Second, in this reserch, the data analyzed by the method of exploratory factor analysis through principle Component with VARIMAX rotation technique that construct dimensionalities of variables. Finally, According to the conceptual framwork in chapter 2, this research used regression Analysis in order to test the relationship of each variable
Second, in this reserch, the data analyzed by the method of exploratory factor analysis through principle Component with VARIMAX rotation technique that construct dimensionalities of variables. Finally, According to the conceptual framwork in chapter 2, this research used regression Analysis in order to test the relationship of each variable