AN ASSESSMENT OF ONLINE TRANSPORTATION APPLICATION AND

CUSTOMER SATISFACTION OF BUSINESS PROCESSING

OUTSOURCING EMPLOYEES IN QUEZON CITY
S.Y. 2019-2020

A Research Paper
Presented at College of St. Catherine Quezon City
Senior High School Department

In Partial Fulfilment of the Requirements

In Accounting, Business and Management Strand
Under the K – 12 Program of the
Department of Education

ANGELICA AI S. FURUYA
JAZMINE VALERIE V. LICO
NAIZAH C. MANGOROBONG
DIANNE S. RECTO
JOHN PAUL N. SECOR
 Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

“This is the beginning, and the dawn of a new era of transportation. (Pishevar,

2017)”. Traffic is a huge issue to almost everyone especially to those that encounter it on

daily basis. The traffic congestion in Philippines, specifically in Manila is so heavy that it

was ranked 8th with an average of 55.33mins of travel time in the 2019 Traffic Index Rate

by Numbeo. Crowds or congestion can significantly decrease the comfort of passengers

or drivers. Comfort is an important aspect of the transit passenger experience (MIT CTL,

2018). People need to provide passengers with solutions that makes travelling easier by

applying available technologies with the traveller in mind (Salpeter, 2018).

People are constantly experiencing inconveniences in their way to their

destination. From hailing a transport vehicle to being stuck in traffic while experiencing

extreme heat or packed vehicle. One of the seen solutions are the online transportation

applications which provides more convenience. As a service provider they are tasked in

ensuring the quality of service that they provide to their passengers that seek their service

in order to avoid the inconveniences of other transport vehicle.

In line with this is the Service Quality Analysis for Online Transportation Service:

Case Study of GO-JEK (2017). The study aims to analyse the service quality

transportation focusing on the technology aspect. A survey was made and was answered

by 1670 respondents. The analysis result found out that GO-JEK's three best aspects are
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perceived cognitive, ease of use, and perceived website innovativeness. The three lowest

ones are compensation, trust and perceived risk. The study conducted was made solely

for GO-JEK.

The information in the study is not applicable to all online transportation

applications. The study also focuses on the technological aspect, whereas the researchers

want to assess online transportation application on its overall aspect of the application

including the driver, the vehicle used, and its performance. Assessing these aspects may

contribute a lot to online transportation providers for they may gain information on how

to further improve the service they provide.

Furthermore, in the study Service Quality and Customer Satisfaction - With

Special focus on the Online Cab Industry in India (Sharma & Das, 2017) which showed

not only how important customer satisfaction are in the online transportation service but

also how despite the growing popularity of the said transportation, studies about it are

scarce. The study also stated how the state of a country can affect the one of the factors

of customer satisfaction. Moreover, online transportation applications are used widely not

just by workers but also by tourist. On the study An Analysis on the Background of

Online Transportation Crew to Support the Tourism and Non-tourism Activities (2018)

by Supriono it showed how online transportation applications have greatly help the

transportation in a country specifically in tourism as it helps tourist that are not

knowledgeable of the routes to reach their destination.

The use of online transportation application in tourism enables tourist to have a

more comfortable experience in their stay. The downside of this study is that only few
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online transportation applications in the country can be used outside of Manila where

tourist spots are located.

Customer satisfaction plays an important role within a business (Copley, 2017).

Customers are asked to rate the performance of drivers after reaching their destination,

but the downside is that specific ratings are not included. As the researchers gather data

through the help of business processing outsourcing (BPO) employees the information

necessary for this study will be acquired. This in turn will help the respondents get to

know more what they should look for and how they should assess the service they

received as they are one of the regular users of the said transportation due the nature of

their work having far workplace and late shifts. The study may also provide information

that transport network companies (TNC) can use in improving their business.

The purpose of this study is to assess the online transportation application and

customer satisfaction of business processing outsourcing (BPO) employees located at

Quezon City as they are one of the workers that are most likely in need of more

convenient mode of transportation. Additionally, it aims to identify the level of

satisfaction of customers based on their experience which can benefit them in knowing

how to properly assess the service they receive. Furthermore, it can also be beneficial to

online transportation providers in identifying possible problems they may encounter.

Background of the Study

Online transportation application companies here in the Philippines are increasing

in a fast rate. The user penetration in our country as of 2019 is 5.8% and it is expected to
 4

increase by 5% by the year 2023 (Statista). It may not be as high as Singapore’s 34.2%

but seeing as how online transportation applications are becoming more and more

popular adjustments are necessary. In accordance to this, the Land Transportation

Franchising and Regulatory Board (LTFRB) issued licenses for transport network vehicle

services (TNVS) which are the Certificates of Public Convenience (CPC) and Provisional

Authority (PA). Only TNVS recognized by the LTFRB are allowed to operate. As of

June 2019, more than 40,000 are given CPC and about 30,000 PA to operate. That being

said, according to Brian Cu, Country Head of Grab Philippines, Grab is still undersupply

of vehicles given their hundreds of thousand almost a million bookings.

Online transportation applications came to the Philippines by 2014. The first

application was Uber. Uber’s competitor Grab also came to the Philippines by 2014. As

online transportation applications grow more businessman started making their own apps

(Vasquez, 2017). Some of the well-known online transportation applications are Grab,

Angkas, Hype, Go Lag, MiCab, and HirNa

Online transportation is one of the newest service innovations in m-commerce.

Online transportation service or ride-sharing is an individual transportation services

where a customer can order a ride (car, motorcycle, etc.) through mobile application and

the driver can respond the order through the apps (Wallsten, 2015). As online

transportation service provides convenience not just to passengers who now have more

accessibility in transportation but also to drivers that can earn while having flexible time

and routes. (Putri, Amin & Warjio, 2019). Online transportation applications have

continuously improved as its demand increases.

 5

The customer satisfaction of TNC is a vital aspect specially since it is a service

provider. Customer satisfaction is the key factor for successful business and depends

highly on the behaviors of frontline service providers (Lee et. al, 2016). As customer

satisfaction provides a metric that can be used in order to measure and improve a

business (Bramley, 2017). Business owners would be able to identify problems, improve

service or their product and become more successful. When customers get satisfied with

the service that you provide them, then they will not just retail but also help your business

to increase by word of mouth publicity. This just shows how customer satisfaction is very

important in a business. The satisfaction of customers varies from person to person. In

order to have a general understanding of what makes up the satisfaction of customers in

regard to transportation, the service quality theory (ServQual) which composes of

reliability, assurance, tangibles, empathy, and responsiveness is applied.

As of now online transportation applications are currently well-known and is still

continuously growing. More and more online transportation applications are appearing

with the intent of providing convenient transportation. The market penetration of this

TNC are said to increase even more in the coming years (Boston Consultation Group,

2017) and are overthrowing public transportation in some countries causing

transportation rites. Studies have shown both positive and negative result of the said

transportation. With this study people will be more informed as the researchers assess

online transportation applications.

Private hire cars under online transportation applications can provide more

convenience but it also causes congestion. The number of private transportations may

have lessened but the private-hired cars have been continuously growing making it more
 6

congested. A survey was conducted showing 84% of people planning to buy cars in the

next 5 years. This could in turn result to a heavier traffic. But if ridesharing can meet

their transport requirements then they are willing to forgo buying a car. This are

according to the study Unlocking Cities (2017) by Boston Consulting Group.

In the study, Analysis of User Acceptance towards Online Transportation

Technology Using UTAUT 2 Model: A Case Study in Uber, Grab and Go-Jek in

Indonesia (2015) it tackles the acceptance of people towards online transportation

technology by using the variables under the UTAUT 2 model. At the end the factors that

influence the Behavioral Intention on the adoption of online transportation services are

Habit, Hedonic Motivation, Performance Expectancy. While factors that influencing Use

Behavior are Habit, Facilitating Condition, and Behavioral Intention. These factors can

be used in further improving of online applications for better performance and customer

satisfaction.

This study aims to assess the online transportation application and its customer

satisfaction of BPO employees in Quezon City. In this study, the researchers will assess

the online transportation application as convenient and faster mode of transportation that

can decrease heavy traffic. As traffic has been a huge problem and base on a study by

Boston Consulting Group which says traffic is sure to get worse in the next five years the

need for a solution is a must. Therefore, the researchers having seen one possible solution

decided to assess the online transportation and provide more information that will help

solve this on-going crisis.

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Theoretical Framework

These are the following theories that the researchers used in order to strengthen

their study as it tackles about the customers satisfaction and the innovating technology

that people used nowadays, the list of the theories are the following:

Service Quality Theory (Parasuraman et. al., 1998) is a multi-item scale develop

to assess customer perceptions of service quality in service and retail businesses.

SERVQUAL represents service quality as the discrepancy between a customer's

expectations for a service offering and the customer's perceptions of the service received,

requiring respondents to answer questions about both their expectations and their

perceptions (Parasuraman et. al., 1988). The scale decomposes the notion of service

quality into five constructs as follows:

 Tangibles – physical facilities, equipment, staff appearance, etc.

 Reliability – ability to perform service dependably and accurately

 Responsiveness – willingness to help and respond to customer need.

 Assurance – the ability to staff to inspire confidence and trust.

 Empathy – the extent to which caring individualized service is given.

This theory is aligned in this study as it discusses the quality of service that leads

to customer satisfaction. Through its five notion we can assess the experience of the

customers. The tangibles represent the driver and the vehicle. The reliability shows the

driving performance of the driver. The responsiveness shows the personality of the driver

in regard to the customer making request. The assurance represents the safety the

customer felt in their experience. And last the empathy is for individualized care the
 8

customer was given. All in all, it shows how to gather data that will show the expectation

and perception of customers.

Unified Theory of Acceptance and Use of Technology (UTAUT) 2, Venkatesh et al

(2003). UTAUT model aims to explain technology acceptance. It has four main

determinants of Behavioral Intention which are Performance Expectancy, Effort

Expectancy, Social Influence and Facilitating Conditions and, four moderating variables

that affect the determinants: gender, age, experience and voluntariness of use.

In 2012, Venkatesh, Thong, and Xu extend the unified theory of acceptance and

use of technology (UTAUT) to study acceptance and use of technology in a consumer

context. Meanwhile, the previous UTAUT is related to the use of technology in the

organizational context.

Customer Satisfaction (CSAT) (Barsky 1992) is a commonly used key

performance indicator that tracks how satisfied customers are with your organization's

products and/or services. It’s a psychological state that is measured by the customer’s

expectations.

In this theory the researchers will able to track how satisfied customer is,

somehow this theory also explains how to measure expectation that lead to satisfaction it

can be measured by the importance, overall affect-satisfaction expectations, fulfillment of

expectation and expected value from use.

Expectation Confirmation Theory, Richard L. Oliver (1977, 1980). it is a

cognitive theory which seeks to explain post-purchase or post-adoption satisfaction as a

function of its four primary constructs which are expectations, perceived performance,

and disconfirmation of beliefs.

 9

 Expectation - it refers to the attributes or characteristics that a person anticipates

or predicts will be associated with an entity such as a product, service, or

technology artifact.

 Perceived Performance - it refers to a person’s perceptions of the actual

performance of a product, service, or technology artifact.

 Disconfirmation of Beliefs - it refers to the judgments or evaluations that a person

makes with respect to a product, service, or technology artifact.

 Satisfaction - it refers to the extent to which a person is pleased or contented with

a product, service, or technology artifact after having gained direct experience

with the product, service, or artifact.

The researchers used expectation confirmation theory as one of their theory

because it discussed the behavior of a customer after he/she done assesses whether he is

satisfied or dissatisfied with the service or product.

Travel Behavior Theory, Walter hook (2007). The theory of travel behavior is one

of the most important theories in the traffic management and control area. Travel

behavior refers to the complicated decision-making process of travelers during a trip,

regarding travel mode choice, route choice, departure time choice, destination choice, and

so on.

This theory shows the customer's choice in terms of the route, time and mode of

travel, moreover it is about customers behavior about the best time to travel and finding a

short cut or a free route where it can avoid the traffic.

These are the theories that the researchers used to support their study where these

five theories tackles about how should service be offered and tracking the level of
 10

satisfaction of a customer in a service, Moreover it is part of the basis of the study where

technology affects the online transportation application and the innovation of

technologies used nowadays.

Conceptual Framework

Online Transportation Application

Service Quality Demographic Profile

 Age
 Sex
 Frequent use of
application
 Application used

Responsiveness Tangibles Reliability

Assurance Empathy

Customer Satisfaction
 11

Figure 1 Research Paradigm

Figure 1 shows the relationship between the Online Transportation Application

and Customer Satisfaction. The ones below the Service Quality which is the RATER

model is used as basis for the Business Process Outsourcing (BPO) customers to evaluate

the service provided and how convenient to use the online transportation application.

Between the variable of Online Transportation Application its inserted there the

Demographic profile of the respondent where Age, Sex and Frequent use of application

are included.

The next variable shows that Service Quality has a five notion which is

Responsiveness, Assurance, Tangibles, Empathy and Reliability which is also known as

RATER theory. From the variable of the Online Transportation Application to the

Service Quality and its five notion it may affect the evaluation and the assessment of the

respondent to the online transportation application and may cause satisfaction to the

customer.

Moreover, it will help the customer to assess the online transportation application

and help them to decide whether they are satisfied or dissatisfied on the service provided

of the online transportation application.

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Statement of the Problem

The study aims to assess the online transportation application and customer

satisfaction of Business Processing Outsourcing (BPO) employees. Specifically, it aims

to answer the following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 Age

1.2 Sex

1.3 Frequent use of the application

2. What is the assessment of the respondents in online transportation application in

terms of?

2.1 Reliability

2.2 Assurance

2.3 Tangibles

2.4 Empathy

2.5 Responsiveness

3. What is the level of satisfaction of the respondents based on their experience in

using online transportation application?

4. Are there any differences between the assessment of the respondents in online

transportation application if group according to profile?

5. Are there any differences between the level of satisfaction of the respondents if

group according to profile?

6. What are the problems encountered by the respondents in using online

transportation application?
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Hypotheses

The following hypotheses will be tested at 0.05 level of significance:

Hn1: There is no differences between the assessment of the respondents in online

transportation application if group according to profile.

Ha1: There is a difference between the assessment of the respondents in online

transportation application if group according to profile.

Hn2: There is no differences between the level of satisfaction of the respondents if

group according to profile.

Ha2: There is a difference between the level of satisfaction of the respondents if

group according to profile.

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Locale of the Study

Figure 2 Location Map

The respondents in this study are the Business Processing Outsourcing (BPO)

employees located in Quezon City. Quezon City is the most urbanized and populous city

in the Philippines. It was founded by and named after Manuel L. Quezon, the 2 nd

President of the Philippines. It is the largest city in terms of population and land area in

Metro Manila. Quezon City hosts a number of government offices, the most important of

which are the Batasang Pambansa Complex, and the Quezon City Reception House it is

the current seat of the Vice President, it also serves home to the University of the

Philippines Diliman, the National University and Ateneo de Manila University.

 15

Based on the Brittanica written by the editors of Encyclopedia Brittanica and the

site of Quezon City Government, Quezon City is a chartered city and capital of the

Philippines from 1948 to 1976. The city is located immediately northeast of Manila, in

central Luzon. Quezon City is also known as "City of the Stars" and it is the most

urbanized and populous city in the Philippines which has 2.936 Million as of 2015 it also

has 142 barangays.

Year 1939, the National Assembly approved Bill No. 1206 as Commonwealth Act

No. 502, otherwise known as the Charter of Quezon City signed by President Quezon on

October 12, 1939, the law defined the boundaries of the City and gave it an area of 7,000

hectares carved out of the towns of Caloocan, San Juan, Marikina, Pasig, and

Mandaluyong, all in Rizal Province.

Also located in Quezon City is the Quezon Memorial Circle, a national park. The

park is an ellipse bounded by Elliptical Road. Its main feature is the Quezon Memorial

Shrine, a 66-meter-tall mausoleum containing the remains of President Quezon and his

wife, First Lady Aurora Quezon. The shrine is considered Quezon City's foremost

landmark and is depicted in its city seal.

Scope and Delimitations

This study is conducted to assess the online transportation application and its

customers satisfaction as an alternative mode of transportation. An example of the said

application is Grab, Angkas, Joyride, MiCab and others. The researchers delimit the

respondents to 100 BPO employees for they are one of the seen common user of online

transportation application due to their working hours. The research study will be
 16

delimited and conducted only at the vicinity of Quezon City. The method that the

researchers will use is mixed method where in both qualitative and quantitative data can

be provided. The data gathering tool to be used are surveys that will be the basis in

assessing the online transportation application and customer satisfaction.

Significance of the Study

The aim of this study is to provide information about the assessment of the online

transportation application and its customer satisfaction. Thus, the findings of this study

seek to be beneficial to the following:

For the Government. This study will help the government through providing

information about one of the most popular type of application which they can use in

enhancing laws that affects the said application.

For the Transport Network Companies. The information in this study will help in

further developing their application and service. Additionally, the study will also be

helpful in finding out customer satisfaction of their users through more specific criteria.

For the Business Processing Outsourcing Employees. This study will help the

respondents by knowing which characteristics they should look for and use in assessing

which transport network company provides better service.

For the Future Researchers. This study will provide information about the

assessment of the online transportation application such as: Grab, Angkas, etc. The

researchers that will conduct a similar or related study will find this research paper to be

helpful especially since studies related to this topic specifically online transportation

application are not that many. They may also find information regarding customer
 17

satisfaction in terms of transportation. The researchers encourage the future researchers to

conduct more studies regarding transportation in order to help improve

Definition of Terms

The following terms are defined for better understanding as it was commonly

used in this study:

Assessment. Evaluation of an activity, skill, or talent of a person. This is what the

researchers will do to online transportation applications.

Assurance. One of the aspects of the RATER model. It gives declaration or

promises of safeness of a service.

Business Processing Outsourcing (BPO). Companies that provide services or

activities to a third-party company. The one who most commonly use OTA due to the

nature of their work.

Congestion. Blockage of the passage of route cause by traffic.

Customer Satisfaction. The rate of satisfaction customers gets from the products

they use or service they get. One of the variables to be assessed.

Empathy. Another aspect of the RATER model. This aspect provides allows the

customers to know or feel that they are being heard and understood. An important aspect

especially to customers complaining.

M-Commerce. Services through smartphone or any electronic gadgets. Online

transportation applications are an example of this

Online Transportation Application (OTA). Applications that are used in order to

book a ride through internet or calls.

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Transport Network Company. Companies that provide online transportation

applications such Grab and Angkas.

 Chapter 2

REVIEW RELATED LITERATURE AND STUDIES

The following related literature and studies tackle the factors in the study being

conducted such as transportation, online business, etc. The given literature and studies

will then be the foundation of this research.

Online Transportation Application

In accordance to Department of Geography Education, Universitas Pendidikan

Indonesia, Bandung, Indonesia in their study "The Influence of Online Transportation

Application to the Mobility and Economic of the Society (Case Study on Using Grab and

Go-Jek in Bandung, Indonesia" aimed and analyses the Influence of the online

transportation to the mobility and economic of society, particularly in urban communities

such as Bandung, Indonesia which were using GRAB and GO-JEK as online

transportation application. The research focus on the existing of GRAB and GO-JEK as

the most popular alternative online transportation application for the society compared to

the other application, how they affect to the community especially for mobility and

economic, and analyses what are the shortcomings of GRAB and GO-JEK that need to be

addressed and developed.

Based on the study of Virginia Tech (2018) titled "Understanding use of

Transport Network Companies (TNC) in Virginia Paranjyoti Lahkar" deals with

understanding familiarity with transportation network companies (TNCs) and their use

frequency. Ordered logistic regression models were used to identify factors associated
 20

with the respondents perceived familiarity with transportation network companies

(TNCs) and use frequency.

On the study of Nandi (2019) titled "The Influence of Online Transportation

Application to the Mobility and Economic of the Society " stated that the development of

information and technology on society cannot be ignored. One of the impacts was on the

transportation infrastructure development. The using of online transportation application

was necessity on urban community. The research aimed at analyses the Influence of the

online transportation to the mobility and economic of society, particularly in urban

communities such as Bandung, Indonesia which were using GRAB and GO-JEK as

online transportation application.

Customer satisfaction

In accordance to Zeithaml, Mary Jo Bitner and Dwayne D. Gremler (2010) in

their book " Service Marketing" satisfaction is more inclusive: it is influenced by

perception of service quality, product quality and price, as well as situational factors and

personal factors. Furthermore, Customer satisfaction is a broader concept that will

certainly be influenced by perceptions of service quality but that will also include

perceptions of product quality, price, personal factors such as customer`s emotional state

and even uncontrollable situational factors such as weather conditions and experiencing

driving to.

In additional to the book "Service Marketing" written by Zeithaml, Mary Jo

Bitner and Dwayne D. Gremler (2010) explain there that satisfaction is the consumer`s
 21

fulfilment response. It is a judgement that a product or service feature, or the product

service itself, provides a pleasurable level of consumption-related fulfilment.

Based on the site of "Wiley International Encyclopaedia of Marketing" which in

the topic of " Customer Satisfaction" written by Richard L. Oliver (2010' explains that the

concept of customer satisfaction is reviewed from a theory‐based applied perspective

based on a large body of work in the academic community that has only recently found

its way into non-academic surveys. Although other conceptualizations have been

suggested, the expectancy disconfirmation with performance model is used here as a

guiding framework wherein satisfaction is viewed as an end‐state with distinct

antecedents.

According on the study of David M. Szymanski and David H. Henard entitle

"Customer Satisfaction: A Meta-analysis of the Empirical Evidence" found out that the

growing number of academic studies on customer satisfaction and the mixed findings

they report complicate efforts among managers and academics to identify the antecedents

to, and outcomes of, businesses having more-versus less-satisfied customers. The authors

conduct a meta-analysis of the reported findings on customer satisfaction. They document

that equity and disconfirmation are most strongly related to customer satisfaction on

average.

Business Processing Outsourcing (BPO)

As specified by John K. Halvey and Barbara M. Melby (2012) in their book

"Business Process Outsourcing: Process, Strategies, and Contracts, Second Edition,

 22

Chapter 5" explains the features of business process outsourcing contract. The business

process outsourcing (BPO) contract provides the framework pursuant to which the

outsourcing vendor assumes responsibility for, and manages on an ongoing basis, all or

part of a customer's business processes, including the applicable scope, performance

requirements, and compensation schedules.

On the book "Wiley Encyclopedia of Operations Research and Management

Science" which the article of Andy A. Tsay (2011) is included and the title is "Business

Process Outsourcing" explains that the Business Process Outsourcing (BPO), discusses

the decision process for choosing whether or not to outsource an activity, summarizes

best practices for managing the service providers.

In the study of Kayhan Atescia and Peter Balohb (2010) title "Business process

outsourcing: A case study of Satyam Computers" stated that the prominence of business

process outsourcing (BPO) continues to intensify in today's hyper-competitive

marketplace. Moreover, Engaging in BPO can help an organization focus on its core

competencies, while gaining specialized knowledge, skills, and processes in auxiliary

spaces.

According to Abdulwahed Khalfan in his study "A Case Analysis of Business

Process Outsourcing Project Failure Profile and Implementation Problems in a Large

Organisation of a Developing Nation" states that Business process outsourcing (BPO) is

becoming a widely accepted management practice throughout the world. In recent years,

outsourcing of information services has become a pervasive phenomenon. Increasingly,

organisations rely on external service providers for IS/IT services.

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Transport Network Company

Based on the study of Gregory D. Erhardt, Sneha Roy, Drew Cooper, Bhargava

Sana, Mei Chen and Joe Castiglione (2019) Transportation network companies (TNCs)

have grown rapidly in recent years. In 2016, TNCs were 15% of all intra-San Francisco

vehicle trips, which is 12 times the number of taxi trips (1), while in New York in 2016,

TNC ridership equalled that of yellow cab and doubled annually between 2014 and 2016.

TNCs are on-demand ride services where rides are arranged through a mobile app to

connect the passenger with a driver, often a private individual driving their personal

vehicle. TNC’s are one form of shared mobility and one form of Mobility-as-a-Service

(MaaS).

According to the study "Profiling Transport Network Company Activity Using

Big Data" by Drew Cooper, Joe Castiglione, Alan Mislove, Christo Wilson, determined

that TNCs serve a substantial number of trips in San Francisco, over 170,000 on a typical

weekday, that these trips follow traditional time of day distributions, and that they tend to

take place in the busiest parts of the City. Transportation network companies (TNCs)

provide vehicle-for-hire services.

Cooper, Drew, et al. “Profiling Transport Network Company Activity Using Big

Data.” Transportation Research Record, vol. 2672, no. 42, 2018, pp. 192–20 stated that in

recent years, ride-hailing services (RHSs) have become increasingly popular, serving

millions of users per day. In this paper, we propose ORide (Oblivious Ride). ORide

supports key RHS features such as easy payment, reputation scores, accountability, and

retrieval of lost items. Using real datasets that consist of millions of rides, we show that

the computational and network over-head introduced by ORide is acceptable. For

 24

example, ORide adds only several milliseconds to ride-hailing operations, and the extra

driving distance for a driver is less than 0.5 km in more than 75% of the cases evaluated.

In short, we show that a RHS can offer strong privacy guarantees to both riders and

drivers while maintaining the convenience of its services

Online Business

Based on the study of Fatima University Research Journal ⇛ vol. 5 no. 1 (2013)

and the title is “Effects of the Rising Popularity of E-Commerce to the Travel Industry as

Perceived by Selected Travel Agency Managers in Quezon City. “found out that the most

visitors nowadays use the internet to purchase tour packages and facilities rather than ask

for middlemen's or travel agents' services. Moreover, the study focused on the increasing

popularity of e-commerce as viewed by selected travel agency managers in Quezon City

and its impact on the travel industry.

As stated by Carolyn Anderson (2012) stated that by putting your business online,

you are also widening your reach worldwide.

According to Kenneth C. Laudon and Carol Guercio Traver (2016) “E-

Commerce: Business, Technology, Society” emphasizes three driving forces behind the

expanding field of e-commerce: technology change, business development, and social

issues. In additional with a conceptual framework uses the templates of many modern-

day companies to further demonstrate the differences and complexities in e-commerce

today. An in-depth investigation of companies such as Uber, Pinterest, and Apple kick-

off the course while preparing students for real-life scenarios.

 25

Additionally, in the study “Electronic Commerce: A Study on Benefits and

Challenges in an Emerging Economy” by Abdul Gaffar Khan (2016) stated that

Information Technology has been playing a vital role in the future development of

financial sectors and the way of doing business in an emerging economy like Bangladesh.

Increased use of smart mobile services and internet as a new distribution channel for

business transactions and international trading requires more attention towards e-

commerce security for reducing the fraudulent activities.

Transportation in Technology

According to Teodoro A. Agoncillo and Fe B. Mangahas (2010) on their book

“Philippine History” stated there that Americans improved the various means of

transportation and communication and the road had been sanitized and widen during the

Commonwealth inauguration.

Based on Chicago IL: Worldbook (2009) on his book “Invention and

Discoveries: Transportation Vol. 11.” Transportation is the process of moving people or

things from one destination to another one. People use transportation to go and to get

things what they want or need.

In the study of Arden Glenn Paronda (2017) titled “An Exploratory Study on

Uber, GrabCar, and Conventional Taxis in Metro Manila” the study shows that the

innovation in the transportation industry in the Philippines gives everyone not just safer

and faster trips but also business opportunities. Furthermore, these online transportation

applications became popular in the market in terms of the premium services they provide

to riders.
 26

The study “Disruptive Innovation: A Case Study of Uber” by Vidula Damle

(2018)

showed that Uber grabbed this opportunity with detailed planning and meticulous

implementation to meet the expectations of the consumers, there by winning back the

trust of the existing customers as well as attracting the new ones.

Technology

According to David Clemons and Michael Kroth (2011) in their book " Managing

mobile in their workforce" stated there that the world is in the midst of mobile feeding

frenzy and technology today can be implemented at every organizational level and for

almost every business process needed. Moreover, for the businesses the stage is to take

advantage of the incredible opportunity to apply new forms of work and technologies that

will lead to competitive advantage in their markets.

Based on Jonnalagadda (2012) Global Positioning System is over a 1 billion of

people uses Google Maps in this day and age. It is pre-installed in most android phones

and is easy to access and use. Since its creation, Google Maps has become a powerful

mapping tool that is efficient at plotting routes and calculation travel time for driving. It

can find your specific location, allows you to save favorite locations, show the satellite

view and many more.

In authority of Stephanie Jones (2012) in her book "BRICS and Beyond:

Executive Lessons on Emerging Markets, Chapter 5" explains that over the last decade,

businesses all over the world have set up in cyberspace. The chapter explores how new
 27

sources of wealth and, thus, new segments of customers have spawned new

entrepreneurial opportunities of serving them.

Zheng, Yu, et al. “Understanding Transportation Modes Based on GPS Data for

Web Applications.” ACM Transactions on The Web, vol. 4, no. 1, 2010, pp. 1–36 stated

that user mobility has given rise to a variety of Web applications, in which the global

positioning system (GPS) plays many important roles in bridging between these

applications and end users. As a kind of human behavior, transportation modes, such as

walking and driving, can provide pervasive computing systems with more contextual

information and enrich a user's mobility with informative knowledge.

Service

In accordance, Patrick Dawson and Constantine Andriopoulos (2017) on their

book “Managing change, creativity and innovation.” Innovation involves the utilization

of ideas in solving problems, developing processes and improving the way we do things

in creating new products, services and organization. There are 4P's in innovation it is the

product, process, position and paradigm innovation.

 Paradigm innovation- refers to ways in our view of the world is reframed

 Position Innovation- refers to changes in the context within which product or

service are introduced

 Process and Product- ' innovation is the successful exploitation of new ideas' and

is ' the process of translating ideas into useful and used new products, processes

and service.'
 28

On the authority of Ailen P. Devicais (2012) on his study “Customer

Satisfaction on Small Business Loan by BDO Unibank Inc.: Basis for Service

Enhancement” presented that due to global economic shifts, many businesses especially

in service sector modified the way they do their business, attempted to attract and hold

customers. They tend to focus in providing quality customer service and environment in

which clientele wants are satisfied.

According to Melvin L Barnes Jr (2009) in his study “System, method, and

computer program product for providing location based services and mobile e-

commerce” A system, method, apparatus and computer program product for providing

location based functions and mobile e-commerce comprising a central processing unit

including a processor, a storage device, and programming stored in the storage device, a

display device, an audio input device, an audio output device, a communications module,

a commerce module, an image module, and a location module.

Based on Emad Bataineh and Sara Al Mutawa (2016) in their study “An Analysis

Study of Factors that determine E- Services Usage by End Users” focused to investigate

and identify the perceptions of potential end users relating to factors which impact on e-

service acceptance. Moreover, this study offers an understanding of people’s adoption of

e-government services with the help of established theories such as TAM and various

factors that influence the e-government adoption with reference to UAE.

 Chapter 3

RESEARCH METHODOLOGY

The chapter contains the research method, the population, procedures and

instruments used by the researcher in gathering the data needed in this study.

Methods of Research

The researcher used mixed method where they use not just one method in

gathering data and information. Mixed method research is a methodology in conducting

research where it consists accumulating, analyzing and emerging both qualitative and

quantitative research. Moreover, Mixed method as a method focuses on collecting,

analyzing, and mixing both quantitative and qualitative data in a single study or series of

studies. Its central premise is that the use of quantitative and qualitative approaches, in

combination, provides a better understanding of research problems than either approach

alone (Creswell, J. W., & Plano Clark, V. L. (2011). With this, the data gathered can be

used to provide information needed in the assessment of Online Transportation

Application and Customers Satisfaction. The researchers will provide statistical results

based on the experience of the respondent in using Online Transportation Application by

the end of the study.

In accordance to Shona McCombes (2019) Descriptive research aims to

accurately and systematically describe a population, situation or phenomenon. It can

answer what, when, where, when and how questions, but not why questions. To

determine cause and effect, experimental research is required.

 30

A descriptive research design can use a wide variety of quantitative and

qualitative methods to investigate one or more variables. Unlike in experimental research,

the researcher does not control or manipulate any of the variables, but only observes and

measures them. The researchers used descriptive research design because it focuses in

gathering information in terms in Online Transportation Application and Customers

Satisfaction. Furthermore, it will allow the respondents to express their experience in

using the OTA and their assessment in using it.

Population and Sampling Technique

The population of this study are business processing outsourcing (BPO)

employees located at Quezon City. A total of a hundred BPO employees will answer the

questionnaire. While the sampling technique used in this study is the non-random

technique which is convenience sampling. Convenience sampling is a non-probability

technique that chooses respondents in a way that makes it easier for the researchers. It

includes the proximity of the locale, the accessibility of the respondents and others that

meets a certain standard for the data needed to gather and the convenience of the

researchers. (Etikan, Musa & Alkassim, 2016)

Description of the Respondents

Business Processing Outsourcing (BPO) is also known as Information

Technology Enabled Services (ITES). BPO services include payroll, Human Resources

(HR), accounting, call centers, etc. Moreover, BPO is a subset of outsource that involves
 31

the contracting of the operations and responsibilities of a specific business functions to a

third-party service.

The researchers choose BPO employees who work at the vicinity of Quezon City

as they are one who frequently used Online Transportation Application due to their

different time of duty and to avoid traffic at the same time with a comfortable feeling

during their traveling going to their work. In that way it lessens their struggle in terms of

waiting and line up in a crowded public transportation station.

BPO allows a company to be far more flexible. Moreover, BPO employees are

very cost effective for the client company it also saves on investing in fixed assets and

fixed cost. Furthermore, they can redirect funds for their core activities and increase the

speed of the business processes outsourced to them. Also, they have a good

communicating skill in clients for them to focused on the core activities.

Data Gathering Procedure

The researchers gathered data from previous studies and on the internet in order to

make a suitable questionnaire which will be used to gathering the necessary data needed

in this study. An approval letter will be made to ask for approval to their research adviser

if the questionnaires are ready to be answered by the respondents which is the Business

Outsourcing Processing employees (BPO).

Upon the approval of the questionnaire the researchers will start conducting the

survey. The researchers will use their available time in going to BPO companies and look

for employees that are on break or are free to answer without hindering them from their

job. After distributing all the questionnaire and gathering the information, the researchers
 32

will now be tallying the scores using statistical method for them to have a concrete

survey result.

Research Instrument

The researchers used a questionnaire that has been approved and validated by the

research adviser, panelist and the coordinator which will be answered by the respondents

where the data will come from. The main purpose of the questionnaire is to know what

the assessments of the respondents to online transportation application and their

satisfaction towards it are. Questionnaire is a set of questions for obtaining statistically

useful or personal information from individuals, a written or printed questionnaire often

with spaces for answers, a survey made using questionnaire (Merriam Webster, 2017).

The said questionnaire is divided into four parts. The top of the questionnaire

includes a cover letter. The first one is the demographic profile of the respondents

consisting of the age, sex, frequency of usage and the application the use. The second part

will be the assessment towards the online transportation application using the RATER

model. While the third one is for knowing the level of satisfaction of the customers. Both

the second and third part uses the Likert style with five points scale. And lastly, the fourth

one is an open-ended question which the respondents will answer base on their

experience and opinion regarding the topic.

 33

Table 1 Likert Scale

Verbal Interpretation Range

Strongly Agree/Satisfied 4.2 – 4. 9
Agree/Satisfied 3.4 – 4.19
Partially Agree/Satisfied 2.6 – 3.39
Disagree/Unsatisfied 1.8 – 2.59
Strongly Disagree/Unsatisfied 1 – 1.79

Statistical Treatment of Data

The following are the statistical tools that will be used in the gathered data in

order to come up with a conclusion.

Frequency. The amount a certain data or value is repeated or is occurring during a

given time. Symbolized by f.

Percentage. Expressed as a part of a whole. Wherein a whole would always be

equal to a hundred percent. Calculated by dividing a part to its whole. Usually

symbolized by % and sometimes by simple percent or pct.

Formula:

f
% = ×100
∑f

Where:

f = frequency

∑f = summation of frequency

Weighted Mean. A type of average in which weights and values are means to

determine the importance of each observation. Weighted mean is calculated by

multiplying the weight (w) with the value (x) and then adding all together and divided by

sum of the weights. Symbolized by x w

Formula:
 34

∑( w∗x )
xw =
∑w

Where:

x w = weighted mean

w = weight assigned to each observation

∑ (w*x) = sum of the weight of each element multiply that element

∑w = sum of all the weights

Analysis of Variance (ANOVA). The most used technique for comparing the

means of groups of measurement data. There are lots of different experimental, but the

researchers used one-way ANOVA. One-way refers to the number of independent

variables in Analysis of Variance test.

Formula:

Where:

F – is the variance ratio for all over test.

MST – is the mean square due to groups.

MSE – is the mean square due to error.

 Chapter 4

PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

This chapter presents the findings, interpretation and analysis of data that has

been collected in relation to the Assessment of Online Transportation Application and

Customers Satisfaction of Business Processing Outsourcing Employee in Quezon City.

1. Demographic Profile of the Respondents

1.1 Age

Table 2

Frequency Distribution of the Respondents According to Age

Age Frequency Percentage

20 years old and below 21 21
21-30 years old 51 51
31-40 years old 21 21
41-50 years old 6 6
51 years old and above 1 1
Total 100 100

Table 2 presents the Frequency Distribution of Respondents according to Age,

wherein 20 years old and below got a frequency of 21 (21%), 21-30 years old has

frequency of 51 (51%), 31-40 years old got 21 (21%), 41-50 years old got a frequency of

6 (6%) and for the age 51 years old and above only got a frequency of 1 (1%).

This shows that people around ages 21-30 years old which has the frequency of

51 (51%) are the range of age of people that commonly uses online transportation

application. Meanwhile only a few older people ages 41 years old and above have used

online transportation applications due to the reason being more used to using public

transportation or having their own vehicle.

 36

1.2 Sex

Table 3

Frequency Distribution of the Respondents According to Sex

Age Frequency Percentage

Male 33 33
Female 67 67
Total 100 100

Table 3 presents the Frequency Distribution of the Respondents according to sex

which Male got a frequency of 33 (33%) while Female got a frequency of 67 (67%).

This shows that the number of respondents in terms of their sex are not equal. Out

of a hundred (100) respondents more half of it are Female. Thus, gaining higher

frequency and percentage than Male who are only one-third of the respondents.

1.3 Frequent use of application

Table 4

Frequency Distribution of the Respondents According to

How Often They Use the Application

Frequent Use of Application Frequency Percentage

Two or more times a day 6 6
Daily 14 14
Every 2-3 days 20 20
Once a week 14 14
Every 2-3 weeks 8 8
 37

Once a month 4 4
Occasionally 34 34
Total 100 100

Based on the data gathered, out of one hundreds respondents (100), six percent

(6%) of the respondents are using online transportation application two or more times a

day, fourteen percent (14%) are using the application daily, twenty percent (20%) are

using the application every two to three days (2-3), fourteen percent (14%) are using the

application once a week, eight percent (8%) are using the application two to three weeks,

four percent (4%) are using the application once a month, and the last is thirty-four

percent (34%) are using the application occasionally.

The data showed that most of the people, about a third of them use the application

occasionally. While others use the application either every two to three days, daily or

once a week. And the only a few of them use the application every two to three weeks,

more than once a day or once a month.

1.4 Application used

Table 5

Frequency Distribution of the Respondents According to the Application Used

Application Frequency Percentage

Grab 82 59.42
Angkas 42 30.43
JoyRide 9 6.52
MiCab 1 0.72
Others 4 2.90
Total 138 100
 38

Table 5 presents Frequency Distribution of the Respondents According to the

Application Used, wherein the respondents can choose all the application that they are

using. Grab got a frequency of 82 (59.42%), Angkas with 42 (30.43%), JoyRide with 9

(6.52%), MiCab with 1 (0.72%) and lastly Others with a frequency of 4 (2.90%)

The result showed that most people use Grab and next to it is Angkas with it’s

growing popularity. This showed that Grab still continues to provide users with an even

better service and those other applications are improving the quality of their application

and service to par with those on the top.

2. Assessment in Online Transportation Application

2.1 Reliability

Table 6

Assessment in Online Transportation Application of the

Respondents in Terms of Reliability

Weighted Verbal
Indicators
Mean Interpretation
1 Discounts are given to students, senior citizen
Strongly
and person with disability base on the 4.37
Agree
appropriate amount mentioned in the law.
2 The company have received no or less
3.60 Agree
complaints.
3 The driver arrives on time as it says on the
3.95 Agree
application.
4 The driver knows different routes that avoids
3.99 Agree
traffic.
Strongly
5 The driver is skillful in driving. 4.20
Agree
Overall 4.02 Agree
 39

Table 6 presents the factors in assessing online transportation application in terms

of reliability wherein, Reliability 1 got a weighted mean of 4.37 which interpreted as

strongly agree, Reliability 2 has a weighted mean of 3.60 interpreted as agree, Reliability

3 got a weighted mean of 3.95 interpreted as agree, Reliability 4 has a weighted mean of

3.99 which interpreted as agree and Reliability 5 got a weighted mean of 4.20 interpreted

as strongly agree which result an overall average of weighted mean 4.02 interpreted as

agree.

The result of this data shows us that the most agreed statement pertains to the

discounts given by the applications. With all the requirements provided the application

will give the necessary amount of discount in accordance to the law. On the other hand,

the least agreed indicator pertains to the complaints a company receive. It is inevitable

not to receive complaints and with a weighted mean of 3.60 the researchers can say that

the various applications have received their fair amount of complains.

2.2 Assurance

Table 7

Assessment in Online Transportation Application of the

Respondents in Terms of Assurance

Weighted Verbal
Indicators
Mean Interpretation
Strongly
1 I always arrive on my destination safely. 4.56
Agree
Strongly
2 The application have good feedback or rating. 4.27
Agree
3 The driver always follow the traffic laws. 4.47 Strongly
 40

Agree
4 The driver always use indicators when Strongly
4.27
changing lanes or overtaking. Agree
Strongly
Overall 4.39
Agree

Table 7 presents the factors in assessing online transportation application:

assurance wherein, indicator 1 got a weighted mean of 4.56 which interpreted as strongly

agree, indicator 2 has a weighted mean of 4.27 interpreted as strongly agree, indicator 3

got a weighted mean of 4.47 interpreted as strongly agree, indicator 4 has a weighted

mean of 4.27 which interpreted as strongly agree which result an overall average of

weighted mean 4. 39 interpreted as strongly agree.

The assurance has the highest overall weighted mean of 4.39 out of the five

factors. This means that online transportation application users can feel confidence and

trust especially when it comes to arriving to their destination, which is also the most

agreed indicator.
 41

2.3 Tangibles

Table 8

Assessment in Online Transportation Application of the

Respondents in Terms of Tangibles

Weighted Verbal
Indicators
Mean Interpretation
Strongly
1 The application is easy to use. 4.33
Agree
2 The application is available in different gadgets Strongly
4.50
like IOS, Android, Smartphones, Tablets, etc. Agree
3 The application doesn’t have any problems or
3.73 Agree
malfunctions such as errors or glitches.
4 The information of the driver and the vehicle
Strongly
(model and plate number) shown on the 4.53
Agree
application matches the ones that arrives.
5 The vehicle is well maintained and does not Strongly
4.41
have any problems. Agree
6 The vehicle has all the necessary equipment Strongly
4.38
(helmet, airbags, etc.) Agree
Strongly
7 The vehicle is clean. 4.45
Agree
8 The driver is wearing presentable clothes or his Strongly
4.41
uniform. Agree
9 The driver’s ID and license is visible. 4.16 Agree
Overall 4.32 Strongly
 42

Agree

Table 8 presents the factors in assessing online transportation application:

tangibles wherein indicator 1 got a weighted mean of 4.33 interpreted as strongly agree,

indicator 2 has a weighted mean of 4. 50 interpreted as strongly agree, indicator 3 got a

weighted mean of 3.73 interpreted as agree, indicator 4 has a weighted mean of 4.53

which interpreted as strongly agree, indicator 5 got a weighted mean of 4.41 which

interpreted as strongly agree, indicator 6 got a weighted mean of 4.38 which interpreted

as strongly agree, indicator 7 got a weighted mean of 4.45 which interpreted as strongly

agree, indicator 8 got a weighted mean of 4.41 interpreted as strongly agree, and indicator

9 with 4.16 interpreted as agree, which resulted to an overall average weighted mean of

4.32 interpreted as strongly agree.

The data gathered showed that indicator 4 which pertains to the visibility of the

ID and/or license of the drivers is the most agreed. Having such means of identification is

one way in ensuring the safety of the passengers. While the least agreed is about the

application not having any errors or malfunctions.

 43

2.4 Empathy

Table 9

Assessment in Online Transportation Application of the

Respondents in Terms of Empathy

Weighted Verbal
Indicators
Mean Interpretation
1 The customer service tends to inquiries,
3.89 Agree
complaints or problems of the user.
2 Listen effectively to the needs of the passenger. 4.05 Agree
Strongly
3 Shows consideration and respect. 4.24
Agree
4 The driver smiles or does not frown when
4.06 Agree
talking to passenger.
Overall 4.06 Agree

Table 9 presents the factors in assessing online transportation application:

empathy where in indicator 1 got a weighted mean of 3.89 which interpreted as agree,

indicator 2 with 4.05 which interpreted as agree, indicator 3 with 4.24 interpreted as

strongly agree, and indicator 4 with 4.06 which interpreted as agree, which result an

overall average of weighted mean 4 06 interpreted as agree.

The tables most agreed indicator is indicator 3 pertaining to the consideration and

respect of the employees/drivers of the application. Meanwhile the least agreed statement

is the indicator 1 which is about the customer service of the application. This could mean

that the applications customer service is lacking in some ways.

2.5 Responsiveness
 44

Table 10

Assessment in Online Transportation Application of the

Respondents in Terms of Responsiveness

Weighted Verbal
Indicators
Mean Interpretation
1 The driver helps passenger carry their luggage
4.09 Agree
if needed.
2 The driver helps elders, pregnant and disabled
4.14 Agree
person.
3 The driver accommodates reasonable request
Strongly
from passengers like adjusting temperature of 4.29
Agree
aircon or the speed of the vehicle.
4 The driver always reminds the passenger to
3.99 Agree
check their belongings before leaving.
Overall 4.13 Agree

The last table in assessing the online transportation application is Table 10 which

presents the responsiveness where in indicator 1 got a weighted mean of 4.09 which

interpreted as agree, indicator 2 has a weighted mean of 4.14 which interpreted as agree,

indicator 3 got a weighted mean of 4.29 interpreted as strongly agree, indicator 4 has a

weighted mean of 3.99 which interpreted as agree, which result an overall average of

weighted mean 4.13 interpreted as agree.

The most agreed indicator is Indicator 3 pertaining to the driver accommodating

reasonable request from passengers. While the least agreed statement is Indicator 4. Not

all drivers remind their passengers to check their belongings before leaving.

2.6. Assessment in Online Transportation Application

Table 11

Assesment in Online Transportation Application

45
 46

3. Customer Satisfaction

Table 11

Level of Satisfaction According to the Indicators

Weighted Verbal
Indicators
Mean Interpretation
1 The easiness and convenience of using the
4.36 Very Satisfied
application.
2 The appearance or design of the application. 4.33 Very Satisfied

3 The application is accessible in different places. 3.94 Satisfied

4 The cleanliness of the vehicle. 4.36 Very Satisfied

5 The quality of the vehicle and equipment. 4.27 Very Satisfied

6 Availability of safety equipment. 4.20 Very Satisfied

7 Transparency of the driver’s ID or license. 4.18 Satisfied

8 The performance of the driver. 4.32 Very Satisfied

9 The availability of nearby drivers. 3.99 Satisfied

10 The cost of booking a ride. 3.76 Satisfied

Overall 4.17 Satisfied

Table 11 presents the Level of Satisfaction according to the indicators where the

rate number one (1) is for very unsatisfied and five (5) is very satisfied. The weighted

mean of Indicator 1 is 4.36 interpreted as very satisfied, Indicator 2 has a weighted mean

of 4.33 interpreted as very satisfied, Indicator 3 got a weighted mean of 3.94 interpreted

as satisfied, Indicator 4 has a weighted mean 4.36 which interpreted as very satisfied,
 47

Indicator 5 got a weighted mean 4.27 interpreted as very satisfied, Indicator 6 weighted

mean result is 4.20 which interpreted as very satisfied, Indicator 7 got a weighted mean

of 4.18 interpreted as satisfied, Indicator 8 has a weighted mean of 4.32 which interpreted

as very satisfied, Indicator 9 got a weighted mean 3.99 interpreted as satisfied and for

Indicator 10 got a weighted mean 3.76 which interpreted as satisfied. The weighted mean

has an overall average of 4.17 which interpreted as satisfied.

The data showed that indicator 1 and 4 are the ones with the highest weighted

mean, this means that the feature users are most satisfied with are the easiness of using

the application and the cleanliness of the vehicle. On the other hand, the one with the

least satisfaction is indicator 10. Which means that users are not that satisfied with price

of fare they need to pay in using the application’s service. This table showed that six (6)

out of ten (10) indicators has a result of strongly satisfied. While the rest of the indicators

has a result of satisfied. The overall weighted mean resulted as satisfied with 4.17 and is

0.03 away from being very satisfied.

4. Differences between the Assessments in Online Transportation

Application of the Respondents

 48

4.1. Age

Table 12

Differences on the Assessment of Online Transportation Application

in Terms of Age

Reliability Assurance Tangibles Empathy Responsiveness

Chi-Square 1.789 2.540 .689 4.002 4.128
df 4 4 4 4 4
p-value .774 .637 .953 .406 .389
Decision Accepted Accepted Accepted Accepted Accepted
There is no There is no There is no There is no There is no
Interpretation
difference difference difference difference difference

A Kruskal-Wallis H test showed that there was no statistically significant

difference in Assessment of Online Transportation Application in terms of Reliability

between the Age of the respondents, X2(4) = 1.789, p = 0.774.

Moreover, there was no statistically significant difference in Assessment of

Online Transportation Application in terms of Assurance between the Age of the

respondents, X2(4) = 2.540, p = 0.637.

Also, there was no statistically significant difference in Assessment of Online

Transportation Application in terms of Tangibles between the Age of the respondents,

X2(4) = 0.689, p = 0.953.

There was no statistically significant difference in Assessment of Online

Transportation Application in terms of Empathy between the Age of the respondents,

X2(4) = 4.002, p = 0.406.

 49

There was no statistically significant difference in Assessment of Online

Transportation Application in terms of Responsiveness between the Age of the

respondents, X2(4) = 4.128, p = 0.389.

The table showed that the age of the respondent does not affect the assessment

towards online transportation application in terms of all the aspects in the RATER model.

4.2. Sex

Table 13

Differences on the Assessment of Online Transportation Application

in Terms of Sex

Reliability Assurance Tangibles Empathy Responsiveness

Mann-Whitney U 996.500 899.500 846.500 843.500 766.500
p-value .384 .071 .015 .038 .007
Decision Accepted Accepted RejectedRejected Rejected
There is no There is no There is a There is a There is a
Interpretation
difference difference difference difference difference

A Mann-Whitney U test showed that there was no statistically significant

difference in Assessment of Online Transportation Application in terms of Reliability

between the Sex of the respondents, U= 996.500, p = 0.384.

There was no statistically significant difference in Assessment of Online

Transportation Application in terms of Assurance between the Sex of the respondents,

U= 899.500, p = 0.071.
 50

There was a statistically significant difference in Assessment of Online

Transportation Application in terms of Tangibles between the Sex of the respondents, U=

846.500, p = 0.015.

There was a statistically significant difference in Assessment of Online

Transportation Application in terms of Empathy between the Sex of the respondents, U=

843.500, p = 0.038.

There was a statistically significant difference in Assessment of Online

Transportation Application in terms of Responsiveness between the Sex of the

respondents, U= 766.500, p = 0.007.

4.3. Frequent Used of Application

Table 14

Differences on the Assessment of Online Transportation Application

in Terms of Frequent Use of Application

Reliability Assurance Tangibles Empathy Responsiveness

Chi-Square 9.128 5.511 13.020 6.276 9.664
df 6 6 6 6 6
p-value .166 .480 .043 .393 .140
Decision Accepted Accepted Rejected Accepted Accepted
Interpretatio There is no There is no There is a There is no There is no
n difference difference difference difference difference
A Kruskal-Wallis H test showed that there was no statistically significant

difference in Assessment of Online Transportation Application in terms of Reliability

between the Frequent Used of Application of the respondents, X2(6) = 9.128, p = 0.166.
 51

Moreover, there was no statistically significant difference in Assessment of

Online Transportation Application in terms of Assurance between the Frequent Used of

Application of the respondents, X2(6) = 5.511, p = 0.480.

Also, there was a statistically significant difference in Assessment of Online

Transportation Application in terms of Tangibles between the Frequent Used of

Application of the respondents, X2(6) = 13.020, p = 0.043.

There was no statistically significant difference in Assessment of Online

Transportation Application in terms of Empathy between the Frequent Used of

Application of the respondents, X2(6) = 6.276, p = 0.393.

There was no statistically significant difference in Assessment of Online

Transportation Application in terms of Responsiveness between the Frequent Used of

Application of the respondents, X2(6) = 9.664, p = 0.140.

The data showed that 4 out of 5 of the aspect resulted to having no statistically

significant difference in assessing online transportation application despite having

different frequency in usage.

5. Differences between the Customer Satisfaction in Online Transportation

Application of the Respondents

5.1. Age

Table 15
 52

Differences on the Customer Satisfaction of Online Transportation Application in

Terms of Age

Customer Satisfaction
Chi-Square 1.990
df 4
p-value .738
Decision Accepted
Interpretation There is no difference

A Kruskal-Wallis H test showed that there was no statistically significant

difference in Customer Satisfaction of Online Transportation Application between the

Age of the respondents, X2(4) = 1.990, p = 0.738.

.2. Sex

Table 16

Differences on the Customer Satisfaction of Online Transportation Application in

Terms of Sex

Customer Satisfaction
Mann-Whitney U 798.500
p-value .012
Decision Rejected
Interpretation There is a difference

A Mann-Whitney U test showed that there was a statistically significant

difference in Customer Satisfaction of Online Transportation Application in between the

Sex of the respondents, U= 798.500, p = 0.012.

5.3. Frequent Used of Application

 53

Table 17

Differences on the Customer Satisfaction of Online Transportation Application in

Terms of Frequent Use of Application

Customer Satisfaction
Chi-Square 9.151
df 6
p-value .165
Decision Accepted
Interpretation There is no difference

A Kruskal-Wallis H test showed that there was no statistically significant

difference in Customer Satisfaction of Online Transportation Application between the

Frequent Used of Application of the respondents, X2(6) = 9.151, p = 0.165.

6. The Problems encountered in using the Online Transportation Application

6.1, Hard to Book a Ride

Online Transportation Application like Grab and Angkas have announced how

that even with thousands or tens of thousand drivers they have a hard time keeping up

with the demand. One of the respondents stated: “Sometimes, there are no available

drivers nearby”. Other respondents have also stated similar problems with the

application.

In an article by Rappler it says that according to Grab Philippines they are

"undersupply" of vehicles with only 35,000 drivers available for 600,000 bookings made

per day. This is a common obstacle of online transportation application. With the
 54

increasing demand they could not accommodate each booking or are late in providing

one. Which then resulted to the complaints of having a hard time to book a ride.

Bookings Cancelled by Drivers

Some users have experienced being cancelled by the drivers. “One of the

problems that we hated the most is the cancelling book cars, when you waited so long

and then the driver cancelled it.” Stated by one of the respondents. This has caused a lot

of inconvenience to some of the user specially for those that have decided to wait for the

driver only to be cancelled by them.

Incorrect Time of Arrival

Online Transportation Applications provide an estimated time of arrival of the

drivers for their users. The problem with this is the accuracy. Although it is just an

estimated time it has been one of the major concern of users due to hours delay. The

application would show minutes, but they end up waiting for a few hours. Some even

ended up cancelling their booking due to the driver not arriving as stated by one of the

respondents: “Hindi masyadong tama yung time of arrival ng driver, minsan mas

matagal kaysa sa inaasahan. At minsan ayun yung nagiging cause para icancel ng

customer yung booking nila.”

Technical Issues

It is a common problem for applications to have technical issue and online

transportation application are no exemption to this. The users of the application have

encountered technical issue from glitches to troubleshooting problems. One of the

respondents also complained how some application need to be constantly updated before

using it causing inconvenience specially when in a hurry.

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Expensive

Another major concern of users is the price of fare specially during peak hours.

They deemed it too expensive and that the price should not increased just because its rush

hour or during a certain season or celebration. They also complained that it was already

hard to book a ride and when they have booked one it was too expensive.

Location/Map Errors

The respondents have encountered problems with the location of the pick-up point

and drop off. Some experienced having drivers that does not know where to their pick-up

location is. Others were not dropped off at their exact destination. There are also cases

that the map shown in application is wrong causing problem for both the driver and the

user.

Rude Drivers

Although not all drivers are rude it has become a problem due to the number of

complaints because of rude driver. One of the respondents encountered a rude driver

when wanting to retrieve her son’s cap that was left behind in the car. The driver

complained that the respondent was wasting his time. At the end the respondent reported

to Grab and the driver decided to return the cap through Grab Service. Users have

complained how they have encountered rude or unrespectful drivers.

 Chapter 5

SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATION

This chapter contains the summary of findings from all the collected data. It also

includes the conclusion of the study and the recommendation of the researchers based on

the study conducted.

Summary of Findings

From the data that has been gathered by the researchers through questionnaire, the

findings are as follows:

1. Assessment in Online Transportation Application of the Respondents.

The assessment of the respondents in Online Transportation Application in

terms of Reliability has a result of an average of weighted mean 4.02 interpreted as

agree. While the assessment of the respondents in Online Transportation Application

in terms of Assurance resulted to an overall weighted mean 4. 39 interpreted as

strongly agree. The next one is the assessment of the respondents in Online

Transportation Application in terms of Tangible resulted to an overall average

weighted mean of 4.32 interpreted as strongly agree. For the next which is the

assessment of the respondents in Online Transportation Application in terms of

Empathy resulted to an overall average weighted mean of 4 06 interpreted as agree.

For the last one, the assessment of the respondents in Online Transportation

Application in terms of Responsiveness got an overall weighted mean of 4.13

interpreted as agree.
 57

2. Assessment of the respondents in Online Transportation Application based on

Level of Satisfaction.

On the Assessment of the respondents in levels of satisfaction in Indicator

1 is 4.36 interpreted as very satisfied, Indicator 2 has a weighted mean of 4.33

interpreted as very satisfied, Indicator 3 got a weighted mean of 3.94 interpreted

as satisfied, Indicator 4 has a weighted mean 4.36 which interpreted as very

satisfied, Indicator 5 got a weighted mean 4.27 interpreted as very satisfied,

Indicator 6 weighted mean result is 4.20 which interpreted as very satisfied,

Indicator 7 got a weighted mean of 4.18 interpreted as satisfied, Indicator 8 has a

weighted mean of 4.32 which interpreted as very satisfied, Indicator 9 got a

weighted mean 3.99 interpreted as satisfied and for Indicator 10 got a weighted

mean 3.76 which interpreted as satisfied. The weighted mean has an overall

average of 4.17 which interpreted as satisfied.

3. The problems encountered in using the Online Transportation Application

The problems encountered by the respondents when using online

transportation application are having a hard time booking a ride, being cancelled

by the driver, encountering rude or unrespectful drivers, having problems with the

location or the GPS system of the application, incorrect time of arrival causing

users wait for hours, technical issues like glitches and expensiveness.

Conclusion

From the information that the researchers had been collected during their survey

by using questionnaire, the researchers come up with following conclusions:

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1. The result shows that those people who are in the range of ages 21 to 30 years old

are frequent user of an Online Transportation Application. Moreover, out of 100

respondents more than half of it are Female. The result also shows that the

frequency of usage Online Transportation Application by the respondents is

occasionally.

2. The result shows that most of the respondents in Assessing Online Transportation

Application is agree in terms of Reliability. Which means the ability to perform a

service of those Online Transportation Application is dependable and accurate.

Moreover, in terms in Assurance the result of the respondents is strongly agree,

meaning those Online Transportation Application's staff has an ability for having

an inspire confidence and trust. Based on the data gathered in assessing Online

Transportation Application terms of Tangible the result is strongly agree which

means physical facilities, physical appearance etc. (such as equipment) are all in

good condition. And for the empathy the result is Agree meaning the drivers

extent their care and good service to the respondents which is Business Processing

Outsourcing employees. Furthermore, in assessing Online Transportation

Application in terms of responsiveness the result is Agree which means the

drivers shows willingness to help and to respond to their customers. In conclusion

to this, the result statistically showed that the respondents find Online

Transportation Application agreeable in terms of Reliability, Empathy, and

Responsiveness. On the other hand, Assurance and Tangibles received a strongly

agreeable result.
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3. The results indicate that most of the respondents are satisfied to the service offer

by those Online Transportation Application. Moreover, the rate of the result in

level of satisfaction of satisfied and very satisfied is not that far away. But still

majority of the respondents is satisfied in using Online Transportation

Application.

4. Based on the data gathered the result in assessing Online Transportation

Application is agree and in Customer Satisfaction is Satisfied. Moreover, there is

moderately strong relationship between Assessing Online Transportation

Application and Customers Satisfaction because in terms of good condition and

services offer of those Online Transportation Application the respondents had a

basis to assess the Online Transportation Application. Furthermore, in term of

Customers Satisfaction the respondents experience in using the Online

Transportation Application leads them to assess the level of their satisfaction.

Recommendation

Reflected on the summary of findings and conclusion presented, the researchers

suggest the following recommendations:

1. Business Processing Outsourcing employees should use the Online Transportation

Applications as per the result of the data that has been gathered. The respondents

agreed that it is good in terms of reliability, accuracy, tangibility, empathy, and

responsiveness.

2. The government should consider the Online Transportation Applications as one of

the main modes of transportation as per the result of the data that has been
 60

gathered. The respondents` main concern is the lack/availability of drivers. If it

will become one of the main modes of transportation the drivers will always be

available.

3. The Transport Network Company should consider the price of booking Online

Transportation Applications. The Researchers encourage them to make it cheaper

as the Philippines belongs to the third world country. With that many people can

afford it.

4. Encouraging the Transport Network Company to improve the applications by

improving its interface, making it smoother and minimalizing the glitches of the

applications so that it can be used without hassle and be more user friendly.

5. The future researchers encourage to make similar studies for better use of Online

Transportation Application like improving the GPS or map of the applications.

6. The future researchers should make a study that relates to this study. Like study

about making the Online Transportation Application less consumable of mobile

data/internet as per the result of the data that has been gathered. Some of the

respondents have poor connection.

Bibliography