Examining the Influence of Dynamic Pricing on Customer Intention to Purchase Ride-Hailing Services

Abstract

In the digital transportation industry, the shift from static to dynamic pricing has fundamentally altered the relationship between service providers and passengers. This study investigates the influence of dynamic pricing (surge pricing) on customer satisfaction and its subsequent effect on the intention to purchase ride-hailing services in Indonesia. While algorithms prioritize economic equilibrium, this research focuses on the psychological mechanism of price fairness. Using a quantitative approach, data were collected from 325 active users of platforms like Gojek and Grab through an online questionnaire. The analysis, conducted using multiple regression and mediation techniques, reveals that aggressive dynamic pricing negatively impacts customer satisfaction. However, this dissatisfaction can be mitigated if the perceived value remains high. Crucially, the study finds that customer satisfaction fully mediates the relationship between pricing and purchase intention. This suggests that users do not reject high prices purely on financial grounds, but rather based on whether the price evokes a sense of unfairness or dissatisfaction. These findings offer strategic insights for ride-hailing companies to optimize revenue management without eroding the long-term trust that drives user retention.