The University of Southampton
University of Southampton Institutional Repository

A framework for measuring customer loyalty for 3PL industry: a case of evolving market

A framework for measuring customer loyalty for 3PL industry: a case of evolving market
A framework for measuring customer loyalty for 3PL industry: a case of evolving market

Purpose

This research aims to propose a framework for measuring customer loyalty for third party logistics (3PL) industry by exploring the attributes that are more attractive to customers and ascertain the mechanisms for increasing customer loyalty in 3PL industry.
Design/methodology/approach

Data were collected from one hundred and thirty-three (133) respondents who were employees of different industries that outsource 3PL services. The partial least square structural equation modeling (PLS–SEM) was deployed for analysis.

Findings

The results showed that service quality has a significant positive impact on customer orientation, customer satisfaction and relationship quality. On the other hand, customer orientation has been observed to positively impact customer satisfaction but an insignificant impact on customer loyalty and relationship quality. Customer satisfaction has a significant positive impact on relationship quality but an insignificant impact on customer loyalty. Also, relationship quality has a significant positive impact on customer loyalty.

Practical implications

The results recommend that 3PL companies' managers focus more on developing quality relationships with their customers, delivering exemplary service quality and offering customer orientation.

Originality/value

This study will help the stakeholders gain much more understanding and insights on how competitive advantage can be achieved and, consequently, help 3PL become the market leaders.
Customer loyalty, Customer orientation, Customer satisfaction, Relationship quality, Service quality (SERVQUAL)
1463-5771
2023-2046
Ahmed, Waqar
feb765db-00b5-4f0e-9435-e4842f9bf87c
Najmi, Arsalan
44624ad0-8508-470d-956a-045b4e23fc39
Kusi-Sarpong, Simonov
a7e68240-2b34-456e-9849-c01bd10c68f7
Khan, Sharfuddin Ahmed
0d099816-dcae-4f73-8a82-6ebd590e1f1b
Khushal, Asad
9fe49a28-4e9b-48b4-ab58-d8e1da3c0b55
Quartey, Joseph
9f163311-2d22-4114-9f2a-83e6a01a1c9a
Ahmed, Waqar
feb765db-00b5-4f0e-9435-e4842f9bf87c
Najmi, Arsalan
44624ad0-8508-470d-956a-045b4e23fc39
Kusi-Sarpong, Simonov
a7e68240-2b34-456e-9849-c01bd10c68f7
Khan, Sharfuddin Ahmed
0d099816-dcae-4f73-8a82-6ebd590e1f1b
Khushal, Asad
9fe49a28-4e9b-48b4-ab58-d8e1da3c0b55
Quartey, Joseph
9f163311-2d22-4114-9f2a-83e6a01a1c9a

Ahmed, Waqar, Najmi, Arsalan, Kusi-Sarpong, Simonov, Khan, Sharfuddin Ahmed, Khushal, Asad and Quartey, Joseph (2021) A framework for measuring customer loyalty for 3PL industry: a case of evolving market. Benchmarking: An International Journal, 28 (6), 2023-2046. (doi:10.1108/BIJ-04-2020-0172).

Record type: Article

Abstract


Purpose

This research aims to propose a framework for measuring customer loyalty for third party logistics (3PL) industry by exploring the attributes that are more attractive to customers and ascertain the mechanisms for increasing customer loyalty in 3PL industry.
Design/methodology/approach

Data were collected from one hundred and thirty-three (133) respondents who were employees of different industries that outsource 3PL services. The partial least square structural equation modeling (PLS–SEM) was deployed for analysis.

Findings

The results showed that service quality has a significant positive impact on customer orientation, customer satisfaction and relationship quality. On the other hand, customer orientation has been observed to positively impact customer satisfaction but an insignificant impact on customer loyalty and relationship quality. Customer satisfaction has a significant positive impact on relationship quality but an insignificant impact on customer loyalty. Also, relationship quality has a significant positive impact on customer loyalty.

Practical implications

The results recommend that 3PL companies' managers focus more on developing quality relationships with their customers, delivering exemplary service quality and offering customer orientation.

Originality/value

This study will help the stakeholders gain much more understanding and insights on how competitive advantage can be achieved and, consequently, help 3PL become the market leaders.

Text
BlindManuscriptBIJRv1 - Accepted Manuscript
Download (468kB)

More information

Accepted/In Press date: 25 December 2020
e-pub ahead of print date: 15 January 2021
Published date: 30 June 2021
Additional Information: Funding Information: This work is supported by the National Science Foundation through the Center for Telecommunications Research at Columbia University. The authors wish to thank S. Borodach for laboratory assistance and a helpful reading of the manuscript. Publisher Copyright: © 2020, Emerald Publishing Limited.
Keywords: Customer loyalty, Customer orientation, Customer satisfaction, Relationship quality, Service quality (SERVQUAL)

Identifiers

Local EPrints ID: 446569
URI: http://eprints.soton.ac.uk/id/eprint/446569
ISSN: 1463-5771
PURE UUID: a08592bf-d494-4172-b6f5-94c4fb912f26
ORCID for Simonov Kusi-Sarpong: ORCID iD orcid.org/0000-0003-1618-2518

Catalogue record

Date deposited: 15 Feb 2021 17:31
Last modified: 15 Jun 2022 01:54

Export record

Altmetrics

Contributors

Author: Waqar Ahmed
Author: Arsalan Najmi
Author: Sharfuddin Ahmed Khan
Author: Asad Khushal
Author: Joseph Quartey

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×