The Effects of Service Quality on Customer Satisfaction and Loyalty in a Logistics Company

Abstract

Service quality plays crucial role in the operational activities of a company since service quality heavily affects the satisfaction and the loyalty of a customer. The aim of this study is to analyze the effects of service quality of a logistics company on customer’s satisfaction and loyalty. The service quality was measured using the following five dimensions of information quality, ordering procedures, timeliness, order condition and order discrepancy handling. Courier services or logistics services have been standardized in such a way to generate satisfaction to the customers and thus, achieving customer loyalty. The data processing in the logistics company was performedusingAMOS-StructuralEquationModeling(SEM).Thesamplingtechniquein thestudywasbasedonconveniencesamplingof150respondentsfromcourierservice companies (non-probability sampling). The data were collected using questionnaires distributed to the suitable population. The result of the study confirmed the effects of the service quality of courier service companies on customer satisfaction and loyalty. In addition, the study confirmed the relationship between customer satisfaction and loyalty.