Customer satisfaction of bicycle sharing: studying perceived service quality with SEM model

Bicycle sharing is an emerging business in many cities worldwide and has attracted a large number of users, due to its convenience, environmental friendliness, low cost, and flexibility for short-distance travels. This study evaluates main factors affecting the perceived service quality, satisfaction, and loyalty of bicycle sharing customers. We design measurement variables, conduct a satisfactory survey on customers using OFO bicycle sharing service in Ningbo, China, develop a Service-Satisfaction-Loyalty model using structure equation modeling (SEM), and conduct statistical analysis. The perceived service quality was simplified to three dimensions including: perceived service quality of platform, perceived quality of bicycle entity, and perceived quality of value. The results show that SEM model can account for commonly unobserved variables within satisfaction and loyalty of bicycle-sharing. Perceived services quality of bicycle entity and platform are found to affect customer satisfaction significantly, while perceived quality of value is not a significant factor. This study confirms that satisfaction decisively leads to loyalty of bicycle sharing.