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A theoretical model to investigate customer loyalty on logistics service providers for sustainable business performance

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  • Keng Lin Soh
  • Sze Hui Chin
  • Wai Peng Wong

Abstract

A business exists because of its customers and is sustained because of customer loyalty. Customer loyalty is repeat purchase and represents business sustainability. This paper develops a conceptual model to investigate the factors affecting customer loyalty towards the third party logistics (3PLs) service provider involving factors such as logistics service quality (LSQ) and customer satisfaction. A total of 174 feedbacks were received from the distributed 1,000 questionnaires. SmartPLS 2.0 was applied to these data to test the relationships among the variables in the study. The results indicate LSQ is an antecedent to customer satisfaction while customer satisfaction mediates between LSQ and loyalty. The results also reveal procedural switching costs moderate the relationship between customer satisfaction and customer loyalty. This paper has extended the cognitive-affective-conative theory to supply chain/logistics studies.

Suggested Citation

  • Keng Lin Soh & Sze Hui Chin & Wai Peng Wong, 2015. "A theoretical model to investigate customer loyalty on logistics service providers for sustainable business performance," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 7(3), pages 212-232.
    • Handle: RePEc:ids:ijbpsc:v:7:y:2015:i:3:p:212-232
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    Cited by:

    1. Daniele Crotti & Elena Maggi, 2023. "Social Responsibility and Urban Consolidation Centres in Sustainable Freight Transport Markets," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 829-850, July.
    2. Jain, Nikunj Kumar & Gajjar, Hasmukh & Shah, Bhavin J., 2021. "Electronic logistics service quality and repurchase intention in e-tailing: Catalytic role of shopping satisfaction, payment options, gender and returning experience," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).

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