Empirical analysis of the customer loyalty problem in the international logistics market

Part of : WSEAS transactions on business and economics ; Vol.5, No.4, 2008, pages 113-123

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Pages:
113-123
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Abstract:
In this study the focus was on comprehending the vital factors that affect the loyalty of international logistics service provider (ILSP) customers, with the aim of providing recommendations for sustainable operations. Empirical analysis was performed to explore the customer loyalty problem in the international logistics market. Data for analysis was collected by questionnaire survey directed at customers of an ILSP headquartered in Taiwan, with branches located around the world. The customer loyalty problem was first tackled by developing a conceptual framework. The structural equation modeling method was then used to do the empirical analysis. Causal hypotheses regarding the loyalty of customers for ILSPs were established based on their special attributes and related research results reported in the literature. Empirical analysis results of this study show that service quality, customer satisfaction and switching cost are all critical to customer loyalty. Of these, customer satisfaction and switching cost both have a positive relationship with customer loyalty; service quality has a positive influence with customer satisfaction, as well as an indirect positive influence with customer loyalty; there is a positive relationship between customer satisfaction and switching cost. Research and managerial implications for practical operations are also discussed.
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Keywords:
customer loyalty, international logistics market, logistics service provider, NVO
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