International Journal of Applied Business and International Management
Vol 10, No 3 (2025): December 2025

The Influence of Service Quality and Price Perception on Customer Loyalty: The Mediating Role of Customer Satisfaction in Ride-Hailing Service

Kia Hui Gan (INTI International College Penang, 1-Z, 11900 Bayan Lepas, Malaysia)
Wei Chien Ng (Universiti Sains Malaysia, Jalan Sg Dua, 11800 Minden, Pulau Pinang, Malaysia)
Meenu Baliyan (ABESIT, NE-3, Near Crossing Republik, 201009 Ghaziabad, Uttar Pradesh, India)
Leena Zhee Keen Kee (Universiti Sains Malaysia, Jalan Sg Dua, 11800 Minden, Pulau Pinang, Malaysia)
Wai Voon Li (Universiti Sains Malaysia, Jalan Sg Dua, 11800 Minden, Pulau Pinang, Malaysia)
Shuo Li (Universiti Sains Malaysia, Jalan Sg Dua, 11800 Minden, Pulau Pinang, Malaysia)
Yiyang Liu (Universiti Sains Malaysia, Jalan Sg Dua, 11800 Minden, Pulau Pinang, Malaysia)
Visitra Dewangga Apriyanto (STIE Malangkucecwara, Jl. Terusan Candi Kalasan, Malang 65142, Indonesia)
Kushagra Verma (ABESIT, NE-3, Near Crossing Republik, 201009 Ghaziabad, Uttar Pradesh, India)
Daisy Mui Hung Kee (Universiti Sains Malaysia, Jalan Sg Dua, 11800 Minden, Pulau Pinang, Malaysia)



Article Info

Publish Date
20 Dec 2025

Abstract

The rapid growth of ride-hailing services in Southeast Asia has intensified competition, making customer loyalty a critical concern for platforms such as GrabCar. This study examines the effects of service quality and price perception on customer loyalty and investigates the mediating role of customer satisfaction among GrabCar users. A quantitative approach was applied using survey data collected from 150 users in Malaysia, Indonesia, and India through an online questionnaire. The data were analyzed using multiple regression and regression-based mediation analysis. The results indicate that service quality (? = 0.385, p 0.001) and price perception (? = 0.447, p 0.001) significantly influence customer satisfaction, explaining 78.1% of its variance (R² = 0.781). Customer satisfaction has the strongest positive effect on customer loyalty (? = 0.581, p 0.001), while price perception also directly affects loyalty (? = 0.234, p 0.001). In contrast, service quality does not have a significant direct effect on customer loyalty. The findings confirm that customer satisfaction fully mediates the service quality–loyalty relationship and partially mediates the price perception–loyalty relationship, highlighting satisfaction as the key driver of loyalty in ride-hailing services.

Copyrights © 2025






Journal Info

Abbrev

IJABIM

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences

Description

The International Journal of Applied Business and International Management (IJABIM) is a peer-reviewed journal that provides a platform for scholars, professionals, and policymakers to share pioneering research in international business, management, and economics. Published quarterly, the journal ...