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Customers' Loyalty Prediction Model for E-Hailing Mobility Service Companies in Nigeria

Domain:

socioeconomicmobility

Record type:

paper
Creator:
Awo
Publisher:
Zenodo
Host:avatar
The recent surge of inflation in Nigeria has significantly impacted the transportation sector. E-hailing mobility services, in particular, are likely to see a decline in customer loyalty, as they already had the highest fare rates even before the removal of subsidies on petroleum products. This research is aimed at developing a customer loyalty prediction model for e-hailing mobility services in Nigeria. Data used were collected through an online survey, with customer loyalty determined by frequency of use. A binary logistic regression model was fitted to analyze the data. The results indicated that the model has a good fit according to the Hosmer and Lemeshow Test of Goodness-of-fit, with a classification accuracy of 66%. Age and duration of service use were found to be statistically significant. Based on the odds ratio, students, self-employed individuals, low- and middle-income earners, civil and public servants, and daily and weekly users are more likely to be loyal compared to artisans, high-income earners, and yearly users. This study recommends targeted motivational service packages for these customer segments to attract and retain loyalty. Further research could explore the reason why these identified customer segments remain loyal despite rising transportation costs.