Enhancing Customer Lifetime Value through Offline and Online Service Quality Mediated by Customer Satisfaction and Loyalty in Platform-Based Businesses (Snapp)

Abstract

In contemporary Iranian society, the emergence of platform-based businesses that facilitate connections between producers and service providers with customers and end-users has significantly expanded. Among these businesses, the Snapp application serves as a platform linking private car drivers with urban passengers. The quality of online and offline services provided by such businesses has a considerable impact on their profitability and on fostering customer satisfaction, which ultimately increases the customer lifetime value for the company. The present study aims to examine the effect of service quality dimensions on customer lifetime value dimensions in platform-based businesses (Snapp), with the mediating role of customer satisfaction and loyalty. From a methodological standpoint, this study is applied in purpose and descriptive/correlational in data collection. The statistical population consisted of Snapp service users. After conducting a literature review, a simple random sampling technique was employed, and data were collected using a questionnaire. The sample size was determined as 418 participants. Reliability was assessed using Cronbach’s alpha, whereby the questionnaire was distributed among 80 participants in the statistical sample. Using SPSS software, Cronbach’s alpha was obtained at a level above 0.70. To assess validity, content validity was adopted, and the opinions of experts and specialists were utilized. For data analysis, structural equation modeling (SEM) and the Sobel test were applied to investigate the effects of mediating variables, with the aid of SPSS and LISREL software. The findings indicated that the dimensions of online service quality, at the same level and even slightly higher than offline service quality, exert a positive effect on customer lifetime value dimensions through the mediating roles of customer satisfaction and loyalty. Furthermore, customer sense of control and trustworthiness were not found to significantly affect customer satisfaction, while the reverse hypothesis concerning customer loyalty and word-of-mouth advertising was confirmed.