pISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 10, October 2024 http://jist.publikasiindonesia.id/
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3837
The Influence of Hedonic Value, Utilitarian Value, and
Economic Value on Ride-Hailing App Users in Indonesia in a
Sustainable Way
Bayu Erik Prasetyo
Universitas Trisakti, Indonesia
*Correspondence
ABSTRACT
Keywords: hedonic value;
ride-hailing applications;
consumer satisfaction.
The transportation industry has undergone significant
changes due to technological developments and increasing
consumer demand for efficiency. In Indonesia, the
emergence of ride-hailing apps such as Go-Jek, Grab, and
Maxim reflects a growing preference for the sharing
economy model. This study aims to analyze the influence of
hedonistic values, utilitarian values, and economic values on
consumer satisfaction, as well as the influence of satisfaction
on the intention to continue using this application. Data was
collected from 210 active users through an online survey.
The results showed that hedonistic value and economic value
had a significant positive impact on user satisfaction, while
utilitarian value had no effect. In addition, economic value
and satisfaction have a positive effect on the intention to
continue using ride-hailing services. In conclusion, to
increase user loyalty, ride-hailing service providers need to
prioritize increasing economic value and user satisfaction.
This study provides insights into the development of services
that are more in line with consumer needs and preferences in
the digital era.
Introduction
Transportation is a process of moving goods and people from one place to another.
Nowadays the transportation industry has changed due to rapid technological changes and
consumer needs for efficiency and quick access to services. (Cook et al., 2021). An
example of the changes that are happening today is the ride-sharing system in the world
of transportation where the process adheres to the sharing economy. The number of ride-
sharing uses has surpassed that of conventional vehicle rental systems. (Lee & Kim,
2018). Economic sharing is an alternative way that provides lower costs. (Gligor et al.,
2021). The idea of a sharing economy was first proposed in 1978 and the sharing economy
only emerged in the early 1980s (Shaikh et al., 2024).
In Indonesia, ride-hailing application services began to be known in 2015 and are
growing until now (Christina et al., 2018). At that time, Go-Jek was the first local
company to provide ride-hailing services in 2011 and was followed by Grab and Uber in
Bayu Erik Prasetyo
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3838
2014 (Zhao et al., 2012). Despite the rejection by conventional motorcycle taxis and
unclear regulations from the government, finally, this transportation system can still
survive and develop to this day. After Uber ceased operations in mid-2018, Grab acquired
Uber's assets in the Southeast Asian region (Forbes, 2018). Currently, the largest online
transportation service in Indonesia is Go-Jek (PT Aplikasi Karya Anak Bangsa) followed
by Grab.
In its development, ride-hailing has undergone significant changes in usage data
every year. This shows that most users are satisfied with the ease of booking and the
convenience of using this service. In addition, the study found that the value that
customers feel and the satisfaction they get are the determining factors in continuing,
which is a measure of customer loyalty. This confirms that ride-hailing applications will
be a transportation solution that is in demand in the digital era in the future.
Based on the formulation of the problems mentioned above, this study has the
following objectives:
1. Analyze the positive influence of hedonic value on satisfaction in the use of ride-
hailing applications.
2. Analyze the positive influence of utilitarian value on satisfaction in the use of ride-
hailing applications.
3. Analyze the positive influence of economic value on satisfaction in the use of ride-
hailing applications.
4. Analyze the positive influence of hedonic value on continuance Intention in the use of
ride-hailing applications.
5. Analyze the positive influence of economic value on continuance Intention in the use
of ride-hailing applications.
6. Analyze the positive effect of satisfaction on continuance intention in the use of ride-
hailing applications.
This research is expected to be of positive benefit to the following parties:
1. For ride-hailing service providers
This research is a reference in developing ride-hailing services to better understand
consumer needs and preferences as an improvement in service quality and customer
satisfaction levels to implement increased customer trust and attraction to service
providers.
2. For ride-hailing service users
This research can be a comparative reference to make decisions in choosing a more
appropriate ride-hailing application. Users also need to be aware of values that can affect
future reuse intentions. So that users can choose which application to choose according
to customer needs.
3. For the next researcher
The results of this study open up opportunities to develop new theories and
frameworks to investigate ride-hailing as well as wider scopes such as ride-sharing. These
findings will also encourage the development of better research methods to identify
greater aspects of satisfaction in the context of the use of ride-hailing applications.
The Influence of Hedonic Value, Utilitarian Value, and Economic Value on Ride-Hailing App
Users in Indonesia in a Sustainable Way
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3839
Method
The type of research used is a hypothesis test where there are several hypotheses
proposed to be further tested. This research is intended to test the hypothesis by focusing
on evaluating the relationship between several variables. The hypothesis testing in this
study is a causal hypothesis. In this study, a hypothesis test was carried out to determine
whether there was an influence between variables that would later be studied, namely the
influence of hedonic value, utilitarian value, and economic value, on satisfaction and
continuance intention. By collecting data at a specific time point, this study will use a
cross-sectional approach to provide an understanding of the variables being studied. The
answers from the respondents are expected to reflect the actual conditions of the field. To
improve the efficiency and effectiveness of data collection, online surveys distributed
over the internet, such as Google Forms, will be used to obtain primary data. The
respondents who will be the main unit of analysis are users of ride-hailing applications in
Indonesia (Gojek, Grab, Maxim, etc.) and the analysis will be focused on the individual
level. This study is expected to have a significant influence on the understanding of the
relationship between the variables studied.
Variables and Measurements
This study uses two types of variables, namely free and bound. Hedonic value,
utilitarian value, economic value, and satisfaction are independent variables, and
continuance intention is a bound variable.
Data Collection Methods
The population of this study consists of people who know ride-hailing applications
such as Gojek, Grab, Maxim, InDrive, and others. Furthermore, the sample used in this
study is part of the population that knows and has used the ride-hailing application by
several criteria that have been set. The data collected consists of preliminary data obtained
directly through a survey, also known as a research survey, which is submitted through a
Google Form form. The instruments used in the research questionnaire are tested first to
ensure that the data collected must be of good quality to produce a good level of validity
and reality.
Sample Withdrawal Method
The drawdown design in this study uses a nonprobability sampling method, which
means that each element of the population has a different chance of being examined as a
research subject (Sekaran & Bougie, 2016). The sampling technique is purposive
sampling where the sampling method is collected from a specific target or group of people
based on predetermined criteria. The type of respondents in this study is someone who
has been actively using ride-hailing applications from several service providers in
Indonesia (Gojek, Grab, Maxim, inDrive) for at least six months. The number of samples
will be determined based on the analysis tool used, then the analysis tool that will be used
is SEM with the recommended sample number ranging from 200-400 respondents
(Hussaini et al., 2018).
Data Testing Methods
Bayu Erik Prasetyo
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3840
(Hussaini et al., 2018) unobserved variable, variables like this require an indicator
for measurement and the indicator cannot be measured directly.
Validity Test
Before deciding on whether an indicator is declared valid or not, it is necessary to
first determine the factor loading value that will be used as the basis for decision-making.
Table 1
Factor loading Based on Sample
Factor loading
Sample Size
0.30
350
0.35
250
0.40
200
0.45
150
0.50
120
0.55
100
0.60
85
0.65
70
0.70
60
0.75
50
In this study, a total of 210 respondents were used, so the basis for making validity
test decisions is as follows:
a. The indicator is declared valid if the resulting factor loading value 0.4.
b. The indicator is declared invalid if the resulting factor loading value < 0.4.
Data Analysis Methods
1. Descriptive Statistics
Descriptive statistics are statistics that are used to describe information from a data
set using frequency, mean, standard deviation, and so on (Sekaran & Bougie, 2016). This
study uses mean values and standard deviations for descriptive statistics. The mean value
shows the average response of respondents to the variables assessed, while the standard
deviation value shows the difference in respondents' responses to the data.
2. Uji Hipotesis
Structural Equation Modeling (SEM) analysis is a multivariate statistical tool that
combines factor analysis and multiple regression. This method will be used to test the
research hypothesis. Hypothesis test decision-making will be made by comparing the p-
value with an error rate or alpha of 5%. Here are the decisions made in the hypothesis
test:
The Influence of Hedonic Value, Utilitarian Value, and Economic Value on Ride-Hailing App
Users in Indonesia in a Sustainable Way
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3841
a. Ho is rejected or the hypothesis is supported when the p-value ≤ α 0.05.
b. Ho is accepted or the hypothesis is not supported when the p-value > α 0.05.
Figure 2
Structural Equation Modelling
Before conducting a research hypothesis test, it is necessary to conduct a goodness
of fit model test to determine whether the research model can be considered feasible to
use.
Results and Discussion
Description of Research Data
The statistical description of the variables used in this study included utilitarian
value, hedonic value, economic value, satisfaction, and continuance intention, which was
measured by 210 respondents. The majority of respondents (97.6%) have used ride-
hailing apps for more than six months, with 90.5% using them more than three times in
the past six months. Most respondents use GOJEK (62.4%), followed by GRAB (29.0%),
MAXIM (8.1%), and inDrive (0.5%). Respondents consisted of 53.3% men and 46.7%
women, with the majority aged 27-31 years (30.5%), followed by 22-26 years old
(28.1%), 17-21 years old (21.4%), 32-36 years old (13.8%), and over 36 years old (6.2%).
This distribution of characteristics helps to understand the context of the research results
and supports the conclusions drawn.
Descriptive Statistics
Bayu Erik Prasetyo
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3842
The analysis of descriptive statistical results was carried out to see the average value
of the responses and the diversity of answers from respondents related to the variables of
utilitarian value, hedonic value, economic value, satisfaction, and continuance intention.
The mean value will be used to see the middle value of each variable. Meanwhile, the
standard deviation value will be used to see the homogeneity value of each variable tested.
The following are the results of the descriptive statistical analysis:
Table 2
Descriptive Statistics of Utilitarian Value Variables
No
Statement
Mean
Utilitarian Value
1
Using ride-hailing apps, users can efficiently
book online transportation.
4,12
2
Ride-hailing applications can save time in
waiting for online transportation.
4,11
3
Users can improve their mobility from one
place to another.
4,20
4
Users can save time and money to get online
transportation.
3,99
Average
4,11
Based on the data and description of table 2 above, it can be seen that the mean
value of the utilitarian value variable is 4.11 which means that the average respondent
feels that the ride-hailing application provides practical benefits and values obtained by
ride-hailing app users. These variables are related to the efficiency, comfort, and
practicality in accessing transportation felt by the respondents. Meanwhile, the standard
deviation of all indicators used in measuring the utilitarian value variable ranged from 0.7
to 0.9, which showed that respondents had diverse answers to this variable.
Table 3
Descriptive Statistics of Hedonic Value Variables
No
Statement
Mean
Std.
Deviation
Hedonic Value
1
For users, the service of this ride-hailing
application is one of the things that I
enjoy.
4,25
0,742
2
Using the services of this ride-hailing
application makes users feel good.
4,08
0,775
3
Using the services of this ride-hailing
application is fun because there are
various types of vehicles that I can choose
from.
4,28
0,776
The Influence of Hedonic Value, Utilitarian Value, and Economic Value on Ride-Hailing App
Users in Indonesia in a Sustainable Way
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3843
No
Statement
Mean
Std.
Deviation
4
Using the benefits of this ride-hailing app
provides fun.
4,17
0,761
Average
4,19
Based on the information in Table 3 above, it can be seen that the mean value of
the hedonic value variable is 4.19 which means that the average respondent feels that the
ride-hailing application provides satisfaction and pleasure obtained by ride-hailing app
users through the experience of using the service. Meanwhile, the standard deviation
value of all indicators used in measuring the hedonic value variable is around 0.7, which
shows that respondents have diverse answers to this variable.
Table 4
Descriptive Statistics of Economic Value Variables
No
Statement
Mean
Std.
Deviation
Economic Value
1
Using a ride-hailing application provides
good value for the price that the user pays.
4,01
0,818
2
Users can find great deals when using this
ride-hailing app.
3,85
0,878
3
The services provided by this ride-hailing
app are an economical alternative
compared to conventional transportation.
4,04
0,757
4
The services of this ride-hailing app have
a reasonable price.
4,06
0,862
Average
3,99
Based on the information in Table 4 above, it can be seen that the mean value of
the economic value variable is 3.99 which means that the average respondent feels that
the ride-hailing application provides financial benefits or economic value provided when
using the ride-hailing app. Meanwhile, the standard deviation value of all indicators used
in measuring economic value variables ranges from 0.7 to 0.8, which shows that
respondents have diverse answers to this variable.
In the process of analyzing the research data, two values will be observed. In
hypothesis testing, the p-value is used to determine whether there is an influence between
the variables being tested. Meanwhile, the prediction value is used to determine the
direction of influence between the independent variable and the dependent variable.
Here is the basis for decision-making in hypothesis testing:
1. Ho is rejected or the hypothesis is supported if the resulting p-value α 0.05. (There
is influence)
Bayu Erik Prasetyo
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3844
2. Ho is accepted or the hypothesis is not supported if the resulting p-value > α 0.05. (No
influence)
Table 5
Direct Hypothesis Test Results
Hypothesis
Estimate
P-Value
Results
Hedonic Value has a positive effect on
Satisfaction
0,298
0,000
H1
supported
Utilitarian values have a positive effect
on Satisfaction
-0,026
0,358
H2 Not
supported
Economic Value has a positive effect
on Satisfaction
0,706
0,000
H3
supported
Hedonic Value has a positive effect on
Continuance Intention
-0,074
0,242
H4 Not
supported
Economic Value has a positive effect
on Continuance Intention
0,469
0,000
H5
supported
Satisfaction has a positive effect on
Continuance Intention
0,775
0,000
H6
supported
Hypothesis 1
Hypothesis 1 tests whether Hedonic Value has a positive effect on Satisfaction, with
the null hypothesis (Ho) and alternative hypothesis (Ha) as follows:
Ho: Hedonic Value has no positive effect on Satisfaction
H1: Hedonic Value has a positive effect on Satisfaction
Based on the results of hypothesis 1 testing in Table 4.6, it is known that the p-value
is 0.000 < α 0.05 with a positive estimate value of 0.298, so it can be said that hypothesis
1 is supported. Thus, it can be concluded that Hedonic Value has a positive effect on
Satisfaction.
Hypothesis 2
Hypothesis 2 tests whether Utilitarian Value has a positive effect on Satisfaction,
with the null hypothesis (Ho) and alternative hypothesis (Ha) as follows:
Ho: Utilitarian Value has no positive effect on Satisfaction
H1: Utilitarian Value has a positive effect on Satisfaction
Based on the results of hypothesis 2 testing in Table 5, it is known that the p-value
is 0.358 > α 0.05 which means that there is no influence between the variables studied,
so it can be said that hypothesis 2 is not supported. Thus, it can be concluded that
Utilitarian Value does not have a positive effect on Satisfaction.
Hypothesis 3
The Influence of Hedonic Value, Utilitarian Value, and Economic Value on Ride-Hailing App
Users in Indonesia in a Sustainable Way
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3845
Hypothesis 3 tests whether Economic Value has a positive effect on Satisfaction,
with the null hypothesis (Ho) and alternative hypothesis (Ha) as follows:
Ho: Economic Value has no positive effect on Satisfaction
H1: Economic Value has a positive effect on Satisfaction
Based on the results of hypothesis 3 testing in Table 4.6, it is known that the p-value
is 0.000 < α 0.05 with a positive estimate value of 0.706, so it can be said that hypothesis
3 is supported. Thus, it can be concluded that Economic Value has a positive effect on
Satisfaction.
Hypothesis 4
Hypothesis 4 tests whether Hedonic Value has a positive effect on Continuance
Intention, with null hypothesis (Ho) and alternative hypothesis (Ha) as follows:
Ho: Hedonic Value has no positive effect on Continuance Intention
H1: Hedonic Value has a positive effect on Continuance Intention
Based on the results of hypothesis 4 testing in table 4.6, it is known that the p-value
is 0.242 > α 0.05 which means that there is no influence between the variables studied,
so it can be said that hypothesis 4 is not supported. Thus, it can be concluded that Hedonic
Value does not have a positive effect on Continuance Intention.
Hypothesis 5
Hypothesis 5 tests whether Economic Value has a positive effect on Continuance
Intention, with null hypothesis (Ho) and alternative hypothesis (Ha) as follows:
Ho: Economic Value Does Not Have a Positive Effect on Continuance Intention
H1: Economic Value has a positive effect on Continuance Intention
Based on the results of hypothesis 5 testing in Table 4.6, it is known that the p-value
is 0.000 < α 0.05 with a positive estimate value of 0.469, so it can be said that hypothesis
5 is supported. Thus, it can be concluded that economic value has a positive effect on
continuance intention.
Hypothesis 6
Hypothesis 6 tests whether Satisfaction has a positive effect on Continuance
Intention, with the null hypothesis (Ho) and the alternative hypothesis (Ha) as follows:
Ho: Satisfaction has no positive effect on Continuance Intention
H1: Satisfaction has a positive effect on Continuance Intention
Based on the results of hypothesis 6 testing in table 4.6, it is known that the p-value
is 0.000 < α 0.05 with a positive estimate value of 0.775, so it can be said that hypothesis
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Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3846
6 is supported. Thus, it can be concluded that satisfaction has a positive effect on
continuity intention.
Hypothesis 1
The more customers enjoy using the ride-hailing application, the more customer
satisfaction will also increase. The aspects that subjectively provide pleasure or
satisfaction to the users of ride-hailing apps play an important role in determining how
satisfied they are with the experience of using this service (Fobiri et al., 2024). Factors
associated with hedonic value include user comfort, attractive interfaces, and additional
features that are believed to contribute positively to customer satisfaction. An application
should not be too complicated or too difficult for users to learn because it will cause
dissatisfaction with the application (Keni, 2020). Comfortable vehicle quality, positive
interaction with drivers, or attractive promotions are also examples that can increase the
emotional satisfaction of users (Yuan et al., 2022). In examining the determining factors
of satisfaction, the perceived customer value, which includes emotional value, contributes
to generating customer satisfaction. The results of this study support the results of
previous studies which also show similar results, namely hedonic value has a positive
effect on satisfaction, such as the results of the study.
Hypothesis 2
Mobile apps that can save time are preferred by users because they are considered
to provide more satisfaction. The results of the hypothesis test in this study showed that
utilitarian value had no positive effect on satisfaction. Some aspects such as service speed,
ease of booking, or competitive prices are considered elements that are expected by users,
but they are not significant to increase user satisfaction. Currently ride-hailing is equipped
with a mobile payment method that makes transactions faster. Using a mobile payment
system can support users to make payments faster than other payment options and
improve the quality of user transactions, which will increase user satisfaction with using
the application. However, especially in Indonesia, users who have not used mobile
payment and prefer to use cash payment are often encountered. In the context of ride-
hailing, user satisfaction is more likely to be influenced by aspects of hedonic value, such
as vehicle comfort, interaction with drivers, or application interfaces. Therefore, ride-
hailing service providers need to pay attention to and improve aspects that are more
oriented to hedonic value to increase user satisfaction levels and strengthen their
attachment to the service.
Hypothesis 3
Economic value is conceptually similar to price value and positively affects
satisfaction (Yuan et al., 2022). The affordability of the services provided by ride-hailing
can increase user satisfaction, especially for those looking for a cost-efficient alternative.
This shows that the more economical the price of the ride-hailing application, the more
satisfied customers will be with the use of the ride-hailing application. Furthermore, ride-
hailing users can often take advantage of various promotions, discounts, or special offers
The Influence of Hedonic Value, Utilitarian Value, and Economic Value on Ride-Hailing App
Users in Indonesia in a Sustainable Way
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3847
offered by service providers, such as promo codes or loyalty programs, which can provide
added value and reinforce user satisfaction. The results of this study support the results
of previous studies which also show similar results, namely economic value has a positive
effect on satisfaction, such as the results of the study (Jani et al., 2023); (Yuan et al.,
2022).
Hypothesis 4
The results of this study do not support the arguments put forward when developing
the hypothesis that hedonic value has a positive influence on continuance intention.
Several previous studies from several cases stated that there was a positive influence
between the two variables. Ideally, hedonic value has several ways to influence continuity
intention, first regarding the direct relationship with user satisfaction, and then affecting
continuity intention (Yuan et al., 2022). One of the reasons this hypothesis is not
supported is that while a pleasant experience in using a ride-hailing service can improve
user satisfaction, factors such as the availability of service alternatives, changes in user
preferences, issues, and external factors such as changes in fares or service policies, can
all influence users to continue using ride-hailing apps. For example, even if a user enjoys
the experience of using a particular ride-hailing service at first, changing needs or the
availability of alternatives that are more suitable for a particular situation may reduce the
desire to continue using the app.
Hypothesis 5
Economic value is one of the factors that can increase continuity intention, so the
ride-hailing industry needs to increase economic value by providing more economical
prices from ride-hailing applications, such as providing vouchers and free service fees so
that both trips and purchases on ride-hailing applications become more affordable. With
this offer, users feel that they get better value from using ride-hailing services than using
other alternatives such as taxis or their private vehicles. This can make them more likely
to continue using the service on an ongoing basis. The results of this study support the
results of previous studies which also show similar results, namely economic value has a
positive effect on continuity intention, such as the results of the study (Tumaku et al.,
2023).
Hypothesis 6
Satisfaction has a positive influence on continuance intention in the use of ride-
hailing in addition to user awareness and pleasure, which then affects the intention of
continuous use. For example, a user who is satisfied with the fast service, vehicle
cleanliness, and travel comfort provided by a ride-hailing service, will tend to use the
application continuously for his transportation needs. To improve user satisfaction and
ensure high user retention, ride-hailing apps can improve the quality of service by
providing clean and well-maintained vehicles and friendly and professional driver
service. In addition, companies also need to respond quickly to user complaints and
issues, offer attractive loyalty programs and discounts, enhance security with features
such as emergency calls and driver background checks, and ask for feedback regularly to
continuously improve the service. With this strategy, ride-hailing apps can ensure that
Bayu Erik Prasetyo
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3848
users feel satisfied and continue to use their services in the future. The results of this study
support the results of previous studies which also show similar results, namely
Satisfaction has a positive effect on continuity intention, such as the results of the study
(Yuan et al., 2022); (Ofori et al., 2022).
Conclusion
Based on the analysis in the previous chapter, it can be concluded that in the context
of using ride-hailing applications, hedonic value has a positive influence on satisfaction,
while utilitarian value does not have a positive influence. Economic value also has a
positive impact on satisfaction. However, hedonic value does not have a positive
influence on continuance intention, while economic value has a positive influence on
continuance intention. Furthermore, satisfaction was proven to have a positive effect on
continuance intention. Therefore, to increase user intention to continue using ride-hailing
applications, it is important to pay attention to factors such as economic value and user
satisfaction, while also considering the role of hedonic value in increasing user
satisfaction.
The Influence of Hedonic Value, Utilitarian Value, and Economic Value on Ride-Hailing App
Users in Indonesia in a Sustainable Way
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 3849
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