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

Ahmed, Waqar and Najmi, Arsalan and Kusi-Sarpong, Simonov and Khan, Sharfuddin Ahmed and 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). pp. 2023-2046. ISSN 1463-5771, DOI https://doi.org/10.1108/BIJ-04-2020-0172.

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Abstract

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.

Item Type: Article
Funders: UNSPECIFIED
Uncontrolled Keywords: Service quality (SERVQUAL);Customer orientation;Customer satisfaction;Customer loyalty;Relationship quality
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HF Commerce > Business
Depositing User: Ms Zaharah Ramly
Date Deposited: 07 Sep 2022 03:14
Last Modified: 07 Sep 2022 03:14
URI: http://eprints.um.edu.my/id/eprint/34864

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