Customer Loyalty as an Impact of Perceived Usefulness to Grab Users, Mediated by Customer Satisfaction and Moderated by Perceived Ease of Use

Abstract

The development of Internet users in Indonesia increases quite rapidly each year. This phenomenon makes new online-based businesses increase. Even when the data show that Grab has got the market share in Indonesia, business competition is ubiquitous. The research analyzed the impact of perceived usefulness and customer satisfaction on customer loyalty in Grab users. It also studied the impact of perceived usefulness on customer satisfaction and the customer satisfaction (moderated by perceived ease of use) as a mediator between perceived usefulness and customer loyalty. Perceived usefulness and perceived ease of use were dimensions of the Technological Acceptance Model (TAM), which influenced the user’s choice of application usage. The phenomenon of interest in the research was Grab, as an online-based business application on smartphones. The research used quantitative approach. About 204 samples from 250 respondents were obtained using purposive sampling with questionnaires in Surabaya. The measurement used the 7-category of the Likert scale and adapted from the previous researches. For data analysis, the research used Hayes’s PROCESS model 7, and the reliability and validity tests were also conducted. The results show that all hypotheses are supported. Perceived usefulness influences customer satisfaction and customer loyalty positively. Then, customer satisfaction and perceived ease of use can work well as the mediator and moderator. These results contribute to the strategy formulation for business sustainability by Grab or other online-based businesses.