Customer Satisfaction Towards App Based Local ...

Customer Satisfaction Towards App Based Local

Transportation In Bengaluru City

*Lalitha.K1, Arockia Rajasekar2

1.Assistant Professor, Department of Travel & Tourism, Mount Carmel College and

Research Scholar (PT) PG & Research Department of Commerce, St. Joseph’s College

Autonomous Tiruchirappalli, affiliated to Bharathidasan University

2.Assistant Professor, PG & Research Department of Commerce, St. Joseph’s College

Autonomous Affiliated to Bharathidasan University Tiruchirappalli

1.email id: [email protected]

2.email id: [email protected]

Abstract

APPs are developed and designed by Entrepreneurs to operate every type of travel related

business through Information and Communication Technologies (ICT) enabled E-tourism.

Providing local transportation in Indian cities is also one of such venture. This paper studies the

customer satisfaction towards APP based local transportation a division of tourism services in

Bengaluru city. Primary data was collected from around 400 respondents prevailing in

Bengaluru urban district to carry out the descriptive research study. Data analysis of Bengaluru

city local commuters indicates that qualification and age play a vital role in the use of App

/internet-driven technology. App based technology caters to young generation commuters who

prefer to pay little extra money to access the facilities operated through Apps and enjoy doorstep

service. App based transport operation with OTP (One Time Password) generates employment

opportunities in the ever-growing travel and tourism industry and promotes easy commuting

from any part of the city with GPS tracking facilities that ensure safety of the commuters. ICT

and internet connectivity has facilitated e-commerce in retail tourism through websites, Online

Travel Portals (OTP) and recently it has also developed APP based local transportation driven

mobile commerce. This industry encourages intermediary services and provides ample scope for

transport aggregators and consolidators to operate APP based local transportation to local’s

according to customer’s preference and choice with satisfaction. KEY WORDS: Local transportation, Aggregators, Consolidators, M-Commerce,

Retail sector, APP services

1 .Assistant Professor, Department of Travel & Tourism, Mount Carmel College and

Research Scholar (PT) PG & Research Department of Commerce, St. Joseph’s College

Autonomous Tiruchirappalli, affiliated to Bharathidasan University 2 .Assistant Professor, PG & Research Department of Commerce, St. Joseph’s College

Autonomous Affiliated to Bharathidasan University Tiruchirappalli

Journal of Information and Computational Science

Volume 9 Issue 12 - 2019

ISSN: 1548-7741

www.joics.org663

INTRODUCTION

Internet and Information and Communication Technology (ICT) enabled APP driven facilities

through use of smartphones have caught the imagination of the consumers for day to day

requirement. Recent marketing trends have seen rapid growth with emerging concepts such as

online business, digital payments and APP based marketing to attract customers.

Mobile/Smartphone based App services play a vital role in tourism industry which includes local

transportation sector also. APP helps to identify the location with GPS. APP driven travel

services through Mobile and Smartphones consolidates and facilitates services in transport sector

and caters to local transportation of any city. Indian government’s push for digital economy has

also paved way for online payments for the services availed through App. There is a continuous

and steady increase in service industry business despite economic slowdown either through

internet driven E-Commerce or APP driven M-Commerce.

Lalitha.K & Arockia Rajasekar(2016) E-Commerce and Mobile-Commerce (M-Commerce)

models are categorized as Business to Consumer (B2C) model in the recent trend of marketing.

Online business models have developed Apps which promotes Mobile Commerce (M-

Commerce). Travel & Tourism industry has adopted this recent trend of App based M-

Commerce also in addition to E-Commerce. Lalitha.K & Arockia Rajasekar(2018)

Mobile/Smartphone based App services play a vital role in tourism industry since it caters to

transportation sector, railway and airline sectors. It helps in identifying a location with best

shortest route to reach the destination. App helps in guiding tourists with details of tourist

location. App provides all travel related information. E-commerce and App driven M-Commerce

are the leading applications of B2C model of marketing in tourism industry. Indian travel and

tourism industry is the second fastest growing industry in the world Online Travel Portal and it

has evolved App driven services and paved way for M-Commerce in retail tourism which is

currently very popular.

APP BASED LOCAL TRANSPORTATION

Apps are available to avail the services of transport operators such as Ola, Uber, Fast track, Call

taxi, Radio taxi, Meru & Saavari to name a few. E-commerce and APP based bookings have

affected the local transport operators since APP based OLA or Uber Auto and car services have

captured the public imagination by charging fare from the time passenger boards the vehicle

unlike transport operators charge based on slab rate for the time consumed and distance covered

from Shed to Shed basis instead of door to door basis.

The most popular travel consolidators in transportation sector of Indian consumer market are Ola

and Uber who cater to the requirement of hiring Autos or Cars for General public to access their

services and travel locally on daily basis. The Ola and Uber operator’s coordinate services from

suppliers such as Auto or taxi owners/drivers and caters to the need of the general public who

can access their services through App and make payment to them directly or through online such



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as Paytm. Both Ola and Uber APP owners are transport consolidators and vehicle aggregators

who hire the auto drivers and private cab drivers(2018).

Ola and Uber serve as an efficient auto and taxi aggregators. They bridge the gap between

auto/cab owners and commuters. Instead of buying and renting out their own autos and cars, Ola

and Uber partners with a number of auto and taxi drivers/owners to cater the customer’s need.

They enable the customers to book auto/cars at short notice with the help of internet and ICT

through APPs by using smartphones. Ola facilitates Ola money also for easy handling of

payments for the bookings. They provide attractive incentive and offers to drivers and customers

alike.

NEED FOR STUDY

APP based local transportation is safer with GPS tracking and it also facilitates third party

tracking which provides double proctection for travellers at odd times. Both Ola and Uber have

become home grown Apps with customers mostly preferring Ola for autos and Uber for cabs.

Sometimes customers compare the fares on both the Apps for both auto and cab before finalising

the ride. Driven by digital economy with wide useage of smartphones and online payments for

services availed APP based local transportation has gained popularity. APP based local transport

aggregators and consolidators dominate the local transportation facilities in a city which does not

have a robust public transport system for general public inspite of Bangalore Metropolitan

Transport Corporation (BMTC) buses and Metro rail services. Therefore there is a need to study

and ascertain “ Customer Satisfaction Towards App Based Local Transportation In Bengaluru

City”

REVIEW OF LITERATURE

Collett & King (1999) demonstrate that nearly 78% of the online shoppers never close the sale.

Getting customers to the website of a company is one thing, making them to purchase is just

another.

Chang and Arnett (2000) identified factors associated with website success in the context of

electronic commerce. The factors identified were information and service quality, system use,

playfulness, and system design quality. System design qualities have direct relationship with

website success.

Avery (2000) reports the quality and usability of the site plays a major role in converting visitors

into buyers. Web quality and usability are key factors in differentiating companies doing

business on the Web.

Phalguni Gupta (2001) Computer with power of internet and e-commerce has significantly

affected the general public in India. IT is the main force for achieving successful business

models that are capable of sustaining a high growth rate. India is well positioned as global hub

for IT-enabled services.

Siriginidi Subba Rao (2005) highlights the fruits of IT sector and states that India is in the

context of digital divide by discussing its infrastructural bottleneck in areas that includes

electricity, IT penetration, tele density and Internet industry.



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Rachel J.C. Chen. (2007) states Geographic information systems (GIS) have been adopted as a

useful tool by a wide range of disciplines. GIS helps in tourism-retail trading decisions, attraction

allocations, and visitor demographic data to demonstrate the value of GIS to decision makers and

planners of tourism destinations. Results suggest that the analyses of the GIS provide

comprehensive access to the database, query features, and create themes, layouts, and reports.

Jun Mo Kwon e.tal (2013) Promotional information is not an only reason to download

mobile applications; however, the results also showed that consumers who enjoy using

smartphones and who are confident in themselves are more likely to download the mobile

applications.

Geeta Kesavaraj (2013), reveals that “As global competition grows, communication and

technology channels open up new markets, and products and services are translated into a wide

array of choices for our audiences, companies must work harder than ever to gain and keep

customers at a competitive cost.

Technopedia, n.d (2015) states Mobile applications, frequently referred to as Apps, are a type of

software Application explicitly developed to run on a mobile device such as smartphones or

tablets. Mobile apps often reflect similar services as the ones provided on a PC.

Kahini Chakraborty’s (2015) The online travel sector comprises more than 50 per cent of the

estimated range of US$ 11-16 billion e-commerce industry in India. This segment has seen the

largest number of around 200 start-ups. There is entrepreneurship revolution with Indian online

start-ups getting the support of both consumers and venture capitalists. Over the years a large

number of online travel start-ups have entered the fray to cash in on the e-commerce boom

driven by Indian travel segment in the country.

Md.Kashif Ansari et al. (2017) Tourism industry is a combination of various interrelated

industries, such as food industry, transport industry, hotel industry, etc. It was found that the

information and communication technologies have revived the Indian tourism industry like never

before. The impact can be noted in the form of price competition, changes in consumer behavior,

demand for customization, reduced barriers to entry and increased bargaining power of buyers.

Mark Brendau Expedia (2017) states in his report that the mobile audience operating App for

booking travel arrangements is big and is only getting bigger across all three market areas

studied. Report states that in April 2016 the percentage of visitors accessing online travel content

from mobile device or App was 75% in USA, 64% in Canada, and 82% in UK. There is a

substantial increase compared to previous year 2015. The report refers to an overwhelming

response from 76% of traveler’s worldwide saying that smartphones play a crucial role in today’s

lives, furthermore implying that Mobile devices critically support travelers at every stage in the

travel process.

Ruchi Shukla et.al (2017) “India is going through a possible 'Taxi Revolution' and studies

about two taxi aggregators who have radically changed the way "the great Indian middle class"

commutes daily-Ola and Uber. Both of these two taxi aggregators operate through Apps resulting

in M-Commerce in retail tourism services. Both of them are following the strategy of expanding

their operations and building customer base in key metropolitan cities across India. The motive is



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to increase market share and achieve economies of scale and at the same time provide customer

satisfaction.

V. Hemanth Kumar and K. Sentamilselvan (2018) reveal the customer satisfaction about the

call taxi services, the factors they give importance in selection of the service provider, tariff,

comfort, convenience, service quality and customer care rendered. This helps the service

providers as an important input to understand about the customer satisfaction. It also talks about

the convenience of App service in booking and availing call taxi services in Chennai.

OBJECTIVE OF STUDY

1. Ascertain the socioeconomic profile of respondents and the level of customer satisfaction

in APP based local transport booking.

2. Assess customer satisfaction towards local transportation facilities.

3. To understand the reasons for success of APP based local transport operators.

METHODOLOGY

The present study is descriptive in nature. The primary data was collected from 400 respondents

spread across the study area by means of questionnaire. Secondary data were collected from

various journals blogs website and articles related to the area of study. Based on known theories

a detailed questionnaire was drafted and information was collected.

The universe of the study comprises of travellers who do not travel by Bus and hire autos and

cabs to commute within Bengaluru city for their day to day activities. They avail APP based

services to hire local transportation services in Bengaluru City. Respondents were of different

age groups and qualifications. Questionnaire was designed to ascertain customer satisfaction

pertaining to APP based local transportation services that are available in Bengaluru city.

ANALYSIS OF DATA

Appropriate statistical tools are applied with the help of SPSS (Statistical Package for Social

Sciences) to study the relationship, preference and interpretation of findings by using Chi-square

test and Likert Scale Statements with percentage analysis for the information collected.

1.1 AGE AND APP DRIVEN

CHI-SQUARE TESTS

Value Df

Asymptotic

Significance (2-sided)

Pearson Chi-Square 106.158a 10 .000

Likelihood Ratio 41.722 10 .000

Linear-by-Linear

Association

14.569 1 .000

N of Valid Cases 400



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The association of variables namely respondents Age and Use of App driven services has got the

Chi-Square Test result of <0.1 and the value indicates that there is a direct association between

the Respondents age and their choice of using App driven services.

1.2 QUALIFICATION AND APP DRIVEN SERVICES

CHI-SQUARE TESTS

VALUE DF

Asymptotic

Significance (2 Sided)

PEARSON CHI-SQUARE 38.395A 8 .000

LIKELIHOOD RATIO 40.331 8 .000

LINEAR-BY-LINEAR

ASSOCIATION

10.336 1 .001

N OF VALID CASES 400

The association of variables namely Respondents Qualification and Use of App driven services

has got the Chi-Square Test result of <0.1 and the value indicates that there is a direct

association between the respondents qualification and their choice of using App driven services.

1.3 REGULAR USER FOR APP BASED LOCAL TRANSPORT:

REGULAR USER OF APP BASED

LOCAL TRANSPORT

FREQUENCY PERCENT

SA 57 14.3

A 104 26.0

NAND 98 24.5

DA 77 19.3

SDA 64 16.0

TOTAL 400 100.0

Data was collected from 400 respondents out of which 14.3% strongly agree, 26% Agree, since

they use auto or cab services operated through APP. 24.5% neither agree nor disagree since they

either hire regular vehicles or use their own vehicle, 19.3% Disagree since they travel by BMTC

or Metro and 16% strongly disagree since they never hire APP based vehicles for their local

transportation.



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1.4 LOCAL TRANSPORTATION IS BOOKED THROUGH APP:

LOCALTRANSPORTATION

BOOKED THROUGH APP

FREQUENCY PERCENT

VALID SA 57 14.3

A 124 31.0

NAND 83 20.8

DA 92 23.0

SDA 44 11.0

TOTAL 400 99.9

Data was collected from 400 respondents out of which 14% strongly agree, 31% Agree that they

book their local transportation through APP. 20.8% neither agree nor disagree, 23% Disagree

and 11% strongly disagree that their local transportation is booked through APP operators.

1.5 SATISFIED WITH THE FARE QUOTED FOR APP BOOKING:

SATISFIED WITH FARE QUOTED

BY APP BOOKING

FREQUENCY PERCENT

VALID SA 109 27.3

A 170 42.5

NAND 53 13.3

DA 36 9.0

SDA 32 8.0

TOTAL 400 100.0

Data was collected from 400 respondents out of which 27.3% Strongly agree, 42.5% Agree,

13.3% neither agree nor disagree, 9% Disagree and 8% Strongly disagree with the fares quoted

for the APP based local transportation booking. The operators charge around Rs20/- to Rs30/-

extra as their operational charges and they also apply Peak period surcharge ranging Rs50/- to Rs

80/- for the trip. Customers agree to the fare offered since they are happy that vehicle is available

in the peak hour and the operators do offer discounts also for regular customers during non peak

hour journey.



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1.6 SATISFIED WITH THE DRIVERS SERVICE

Satisfied with Drivers Services

Frequency Percent

Valid SA 40 10.0

A 65 16.3

NAND 156 39.0

DA 98 24.5

SDA 41 10.2

Total 400 100.0

Data was collected from 400 respondents out of which only 10% of the respondents are satisfied

with drivers of APP booked vehicles and they Strongly agree with the drivers service, 16.3%

Agree, 39% neither agree or disagree, 24.5% Disagree and 10.2% Strongly disagree with level of

the service rendered by the APP based local transport operators. Majority of them feel that

drivers are rude, they call and ask for location and then cancel the booking and impose

cancellation charge for customer, they refuse to wait even for a reasonable time of five minutes

to board the vehicle or to stop enroute in a shop for any purchase needed on urgent basis. In short

APP based Ola or Uber vehicle drivers are not accommodative in rendering a little extra humane

services and therefore customers are not that happy with drivers behaviour.

1.7 COMFORTABLE WITH APP WEBSITE AND LAYOUT

APP WEBSITE AND LAYOUT

FREQUENCY PERCENT

VALID SA 49 12.3

A 163 40.8

NAND 141 35.3

DA 29 7.3

SDA 16 4.0

TOTAL 398 99.5

Data collected from 400 respondents indicate 12.3% Strongly agree, 40.8% Agree, 35.3%

Neither agree or disagree, 7.3% Disagree and 4% strongly disagree that they are comfortable

with Ola or Uber APP based local transport operators website and layout.

1.8 COMFORTABLE WITH BOOKING PROCEDURE

BOOKING PROCEDURE

FREQUENCY PERCENT

VALID SA 61 15.3



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A 118 29.5

NAND 159 39.8

DA 32 8.0

SDA 28 7.0

TOTAL 398 99.5

Data collected from 400 respondents indicate 15.3% Strongly agree, 29.5% Agree, 39.8%

Neither agree or disagree, 8% Disagree and 7% strongly disagree that they are comfortable with

booking procedures of the APP local transport operators.

1.9 COMFORTABLE WITH ONLINE OR CASH PAYMENT:

ONLINE OR CASH PAYMENT

FREQUENCY PERCENT

VALID SA 129 32.3

A 132 33.0

NAND 91 22.8

DA 32 8.0

SDA 16 4.0

TOTAL 400 100.0

Data collected from 400 respondents indicate 32.3% Strongly agree, 33% Agree, 22.8% Neither

agree or disagree, 8% Disagree and 4% strongly disagree that they are comfortable with online or

cash payment for APP based booking of local transportation.

FINDINGS

The study was based on data collection made from 400 respondents spread across the Bengaluru

city comprising of different age group with different levels of qualifications. Statistical analysis

confirms that young qualified respondents are comfortable in operating App driven devices.

Respondents book autos and cabs for local travel on regular/daily basis APP based transport

operators such as Ola or Uber. They are comfortable and happy with door step service and

payment options such as ola money, wallet payment or cash payment. Ola drivers hand over the

change correctly. Similarly, they are comfortable about booking and cancellation procedure.

Customers are unhappy that Ola or Uber auto or taxi drivers do not pick up booking request

made for short distance and drivers sometime cancels the booking after calling and ascertaining

the destination or drop point and cancellation fee is charged to customer. Some of the Ola or

Uber drivers are rude, not polite and accommodative with humane considerations in serving the

customers. Grievance redressals by these APP operators are very quick and apt but still with only

online transaction, service with personal touch is missing. These APP operators provide sharing

rides in cabs which is quite popular since the rates are cheaper. Outstation rides and self driven



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options are yet to catch the imagination of the customers. Customers are sceptical about self

driven and outstation options. The website design and layout is user friendly. This clearly

indicates that respondents are happy and comfortable with APP based local transport operators

such as Ola or Uber for day to day mobility.

LIMITATIONS OF THE STUDY

This study is limited to Bengaluru urban city and does not cover the travellers view point from

PAN India. Respondent’s opinion may change time to time depending upon latest experience.

Analysis is based on APP based local transportation facilities alone and does not look into other

travel requirements of the respondents.

SCOPE FOR FURTHER RESEARCH

Research pertaining comparative study of traditional operators and APP based operators, Rate

comparison of App based operators and regular operators. Comparative studies with other cities

local transport, Comparative studies of the two leading APP operators Ola and Uber with regard

to their fares are few areas of further research.

CONCLUSION

Tech savy young generations are very satisfied and comfortable and satisfied with APP based

local transportation facilities that are provided by Ola and Uber. The APP based local

transportation is preferred by customers since it provided door to door service with transparency

in rates. The APP based booking facilitates customers to book transportation from any pickup

point to any drop point and the journey can be tracked to ensure the safety of travellers with

facility of online payment which can be made by the person who has booked the journey. The

drivers can be little more accommodative and polite in handling customers. These APP operators

provide sharing rides in cabs, outstation rides and self driven option is also provided at times.

Customers are sceptical about self driven and outstation options.

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