Open AccessModelling customer loyalty using partial least square: An empirical evidence from online food industry
Author(s) -
Dwi Suhartanto,
Gundur Leo,
Lina Setiawati,
Siti Samsiyah Purwaningsih
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/830/3/032089
Subject(s) - loyalty business model , marketing , loyalty , business , customer retention , empirical research , service quality , food industry , service (business) , statistics , mathematics , political science , law
The online food delivery service industry has emerged as huge and prospective industry. In this competitive business environment, having and developing loyal customer are essential; yet, research to examine customer loyalty modelling in this industry is limited. This study is designed to assess the applicability of Partial Least Square Modelling to assess the customer loyalty toward online food delivery service. This study uses a survey of 405 online food service customers collected from greater Bandung region. The model, including four quality system predictors (efficiency, fulfilment, availability, and privacy), was examined using SmartPLS software. The results show that the model of loyalty toward online food has an acceptable Goodness of Fit Index. Further, the R2 of the customer loyalty in the model is 0.67. These results indicate that the method applied is suitable for modelling customer loyalty. This study offers an empirical evidence on the applicability of Partial Least Square to model the customer loyalty toward online food delivery service. This result extends the existing methodological and managerial practices to develop loyalty in the online food industry.