Citation:

Vinsensius Gonaldson, Yos Sunitiyoso. "Ride-Hailing Landscape in Indonesia: A Segmentation Analysis Perspective" International Research Journal of Economics and Management Studies, Vol. 3, No. 5, pp. 220-233, 2024.

Abstract:

The objective of this paper is to find factors that affect the decision-making of ride-hailing users that focus on the transportation perspective, and assess each importance of factors on each segmentation. This paper uses a mixed method approach with the objective of in-depth interviews to find important factors in the decision-making of using ride-hailing services for transportation. Then, Factor Analysis is conducted to confirm whether the factor fits the analysis. Lastly, CA or Cluster Analysis is performed to segment the users of ride-hailing transportation. The outcomes of this study found that there are four segments in this study, one segment was found to be not a price-sensitive group, while the other are price sensitive. In general, factors of empathy were found to be influential in decision-making and reducing the price-sensitive thoughts of users. However, each segment has its own uniqueness of importance factors. The study is only focused on the industry, not on specific companies; thus, the implication will be general. Although most segments are price sensitive, if the company can identify important factors for them, there are indications that they will be less price sensitive. Segmentation one and four are the most suitable ones to be targeted by the marketer. It is known that both segments are prioritizing competence and empathy factors when choosing ride-hailing applications. These factors can be evaluated through past experience.

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Keywords:

Cluster analysis, Customer segmentation, Factor analysis, Price sensitive, Ride hailing industry, Service quality.