The effect of logistics service quality on customer loyalty: case of logistics service industry

Abstract

Purpose

Logistics service quality and customer loyalty have recently become the topic of discussion in both developing and under-developing countries. The purpose of this paper is to understand the logistics service quality factors contributing to customer loyalty in a developing country context.

Design/methodology/approach

Data were collected from 250 respondents who were direct or indirect clients of logistics firms, through online questionnaire distribution. Partial Least Square Structural Equation Modelling was used to examine the hypothesized relationships.

Findings

The findings of this research revealed that operational logistics service quality (OLSQ) and relational logistics service quality have a significant impact on customer loyalty. Moreover, for enhancing customer loyalty, relationship quality is the key factor.

Practical implications

Research reveals that even in a developing country like Pakistan, it is important for carriers to establish high-level relational and OLSQ to satisfy shipper. It will correspondingly add worth to the discussion in the literature and it shall also provide the basis for future research studies.

Originality/value

The novelty of this paper is logistics service quality and its effect on customer loyalty from the perspective of a developing country, specifically due to geographical importance in the context of the China–Pakistan Economic Corridor.

Citation

Huma, S., Ahmed, W., Ikram, M. and Khawaja, M.I. (2020), "The effect of logistics service quality on customer loyalty: case of logistics service industry", South Asian Journal of Business Studies, Vol. 9 No. 1, pp. 43-61. https://doi.org/10.1108/SAJBS-10-2018-0114