TESTING THE MEDIATING EFFECT OF CUSTOMERS’ PERCEIVED VALUE ON THE RELATIONSHIP BETWEEN MOBILE SERVICE QUALITY AND CUSTOMER LOYALTY IN MOBILE FOOD ORDERING APPS
Keywords:
mobile service quality, customer perceived value, customer loyalty, mobile food ordering applications, mediation analysis, PLS-SEMAbstract
There was a rise in the consumption of fast and convenience foods, as well as an increase in the use of mobile food-ordering apps. With a simple tap on your mobile phone, ordering food has become a comfortable, effortless habit. Consumers frequently use mobile food-ordering platforms to order the food and drinks they want. However, in their online purchases, they always expected high-quality mobile food-ordering applications. MFOA should provide high-quality service to maintain a competitive advantage and meet customer needs, which has a significant impact on how customers perceive a business's value. Perceived value was significantly influenced by perceived service quality: as service quality improved, customers perceived greater value. However, a single indicator scale cannot fully capture the concept of perceived value, as customers' perceived value is a subjective evaluation composed of several dimensions. While online applications have transformed how people shop, even for food, it was necessary to understand how consumers perceived these services. Customers evaluated the value of affection, relationship, financial accessibility, exploratory, and contextual benefits of mobile food-ordering apps. These are the key drivers of perceived value that influence customer purchasing decisions and loyalty to certain products and services. Despite its popularity, the mobile food-ordering application faces several challenges in delivering excellent service quality. The objective of this study was to examine the mediating effect of the dimensions of customer-perceived value on the relationship between mobile service quality and customer loyalty. WarpPLS version 8 was utilized to determine the initial sample size of this study. The structural model predicted seven latent factors that influenced customer loyalty. Inverse square root and gamma-exponential approaches were both used. The sample size estimates for the inverse-square-root method and the gamma-exponential approach were 100 and 140, respectively. The targeted sample size of this study was 190 to increase its efficiency and reliability. This study used and adapted an online survey questionnaire to collect primary data that would be used to assess the research hypothesis and to validate the conceptual framework. This study utilized WarpPls 8.0 for data analysis, incorporating factor loading, Cronbach's alpha, CR, and AVE. This was evaluated using confirmatory factor analysis to assess the model's validity. Subsequently, structural equation modeling (SEM) was employed to analyze the structural model and hypotheses. Findings of the study revealed that emotional value, social value, and monetary value had no mediating effect on the relationship between mobile service quality and customer loyalty, while epistemic value, convenience value, and conditional value partially mediate the relationship between mobile service quality and customer loyalty. This study recommended that MFOA developers and owners improve ease of navigation, speed, accuracy, transparency, and service recovery mechanisms to increase customer perceived value and influence loyalty. Meanwhile, the state should require fair compensation schemes for service failures. On the other hand, developers should adopt a transparent billing system and integrate functional, social, and monetary features, as well as a clear review of the food quality, delivery services, and efficacy of the digital application. The objective of this proposed recommendation is to capture the interest of both price-sensitive and busy individuals. Although emotional and monetary values indicate weaker effects, these can be improved through gamification, special offers, and cost-saving initiatives. Furthermore, strategies such as real-time delivery tracking, voice-assisted ordering, seasonal menus, and situational promotions should be implemented to sustain curiosity, continued use of the application, and long-term loyalty.
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