Factors affecting customer loyalty through satisfaction and trust toward the online food delivery service - The case of delivery Now
Abstract
In the competitive market, the role of customer loyalty in business success cannot be denied. The primary purpose of this thesis is to study the customer loyalty toward the online food delivery service, in case of Delivery Now of Foody, by determining and measuring the impacts of service quality and price through customer satisfaction and trust on loyalty. Based on these dimensions, the conceptual framework was built as the foundation of this research. This study utilises the quantitative approach with the data collected from 344 respondents by questionnaire. In this study, the collected data was analysed by Descriptive Statistics, Reliability Test, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), Structural Equation Modeling (SEM) and Bootstrap Test.
After data analysis, research findings show that customer satisfaction has a stronger directly impact than trust on customer loyalty. Besides, there is a significant finding that service quality and price both have positives influences on customer satisfaction. However, service quality has a stronger significantly impact than price on customer satisfaction. In overall, customer satisfaction plays the most critical role to improve customer loyalty in the online food delivery service. Some discussions and recommendations are also given to practice implication and further research.
Keywords: customer loyalty, trust, customer satisfaction, price, service quality, online food delivery.