The Impact of Customer Satisfaction on Customer Loyalty in Bus Services in Da Nang City

Abstract

This study was conducted to evaluate the factors influencing customer satisfaction with bus services, including the tangible characteristics of the vehicle, the quality of the service staff, empathy, and trust, and the impact of satisfaction on customer loyalty in Da Nang city. A combination of qualitative and quantitative research methods was employed, and the SmartPLS 4.0 software was used to analyze 214 samples from collected survey questionnaires. The results of the partial least square structural equation model (PLS-SEM) showed that the factors of tangible characteristics (β = 0.325), service quality (β = 0.294), empathy (β = 0.18), and trust (β = 0.247) all influence customer satisfaction. Simultaneously, satisfaction positively impacts customer loyalty (β = 0.721) of bus users in Da Nang city. The study suggests important managerial implications for improving customer satisfaction and loyalty, and for maintaining and attracting more bus users in the future.