Factors Affecting Customer Satisfaction in the Taxi Service Market in India

Abstract

In taxi service industry, like any other industry, the consumer is always at the centre of all managerial processes forming a focal point around which the business revolves. A company creates products and services with the needs and wants of the consumer in mind. Taxi service industry is one of the fastest growing transportation industries in India and in order to provide excellent service, the industry needs to identify and evaluate the existing products and services, as observed in the industry, finding out what the significant needs and preferences of the consumer are and what leads to customer satisfaction. With this objective this empirical research was conducted to consider the taxi service industry in India and determine the factors affecting customer satisfaction in this industry. This industry has seen a very significant growth in the recent past and there are many players operating here, some of whom started as entrepreneurs having innovative ideas to implement in this market. All the same, like in any other service industry, the most important feature here is customer satisfaction. In this research the authors endeavor to understand what constitutes customer satisfaction in this market. Using the empirical data base obtained from the survey, a preliminary significant testing was carried out followed by structural equation modeling, SEM, which brought out the factors which significantly lead to customer satisfaction.

Keywords: Customer Satisfaction, Empirical Research, Structural Equation Modeling, Exploratory Research

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