- Business of transportation Online is growing
in Indonesia. The competition is very competitive. The
aim of this study is to analyze the effect of price and
customer satisfaction on customer loyalty at online
transportation in Indonesia. Customer loyalty is
required factor for long-term profitability. The
responses collected were 102 completed questionnaires.
The data were analyzed using Structural equation
modeling (SEM) method using AMOS 24. Some items
were removed to get an adequate goodness of fit
through the measurement model using confirmatory
factor analysis with verification of the modified index.
Goodness of fit for the structural models of
hypothesized model shows promising findings. Result of
analysis show that price is related positively with
customer satisfaction and customer satisfaction is
related positively to customer loyalty. Customer
satisfaction variables as an intervening variable on the
price towards the customer loyalty. From the result of
analysis, it can be recommended that the online
transportation’s firm should pay attention to price in
order to increase customer satisfaction and ultimately
increases customer loyalty on all services issued by
online transportation’s firm.
Keywords : Price, Customer Satisfaction, Customer Loyalty, SEM. I