Influence of Logistics Service over Affective Commitment and Customer Repurchase Intention in the Courier Business: Analysis with Structural Equation Modeling

Abstract

Background and Objectives: The courier service provider industry plays a crucial role in driving the national economy of Thailand, with demand for such services increasing as the nation transitions towards a digital economy. The logistics service of courier service providers is therefore essential in supporting the efficient operation of various businesses. This research aims to examine the logistics service of courier service providers, and to develop a causal model of logistics service, affective commitment, and customer repurchase intention in the courier service provider industry. These research objectives are intended to provide valuable insights and guidelines to assist courier service providers’ executives in making informed decisions to maximize operational efficiency. Methodology: The sample of 280 individuals was selected through purposive sampling and all had experience using courier service providers. The research questionnaire utilized was validated for content validity, convergent validity, construct validity, and discriminant validity. Additionally, reliability was assessed using Cronbach's alpha coefficient. Data were analyzed using descriptive statistics including, mean, percentage, and standard deviation. Inferential statistics utilizing structural equation modeling (SEM) were employed to conduct path analysis and determine the effects of latent variables. Main Results: The majority of respondents were female, aged 20-30 years, with a bachelor's degree and a monthly income below 15,000 baht. They primarily used currier service providers to send parcels to friends, relatives, or close acquaintances. The structural equation model demonstrated a good fit with the empirical data (χ2/df = 2.330, NFI = 0.958, TLI = 0.969, CFI = 0.976, GFI = 0.923, RMSEA = 0.069). The model revealed that the logistics service of courier service providers positively impacted customers’ affective commitment and repurchase intention. Affective commitment, in turn, positively influenced customers’ repurchase intention. Furthermore, logistics service indirectly affected customers’ repurchase intention through affective commitment. Discussion: The logistics service of courier service providers, encompassing timeliness, customer responsiveness, communication, service assurance, service efficiency, and tangibles, plays a crucial role in fostering customers' affective commitment. This commitment is manifested through service usage, positive relationship building, customers' sense of authenticity during service interactions, and their perception of meaningful service experiences. Regarding customer repurchase intention, superior logistics service enables providers to retain customers in the face of competition, enhances the likelihood of future service utilization, promotes continuous patronage, and positions the provider as the primary choice for the customers' courier delivery needs. The findings further indicate that high-quality logistics service acts as a causal factor in developing customers' affective commitment, which subsequently leads to increased repurchase intentions in the future. This causal relationship underscores the importance of logistics service in building long-term customer relationships and ensuring sustained business performance in the courier service provider sector. Conclusion: Courier service providers should prioritize the development of their logistics service quality across the six dimensions identified in this study: timeliness, customer response, communication, service confidence, service efficiency, and service tangibility. By enhancing these aspects, providers can deliver superior service to customers, thereby fostering increased affective commitment and repurchase intentions. This approach will contribute to long-term business sustainability. Furthermore, courier service providers can play a pivotal role in driving sustainable economic growth for the nation.