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Product Category: Projects
Product Code: 00003327
No of Pages: 58
No of Chapters: 5
File Format: Microsoft Word
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ABSTRACT
This research examined Customer Satisfaction And Loyalty In Logistics
Services with special reference to DHL Express,
Survey
design was employed with the use of a well structured questionnaire.
Respondents were selected based on simple random sampling technique. Fifty (50)
customers DHL Express staff were sampled, out of with Forty (40) were retrieved
giving a response rate of 80%.
Two hypotheses
were formulated and tested with the use of Chi-Square analysis. The analysis
resulted to rejecting both null hypotheses and hence accepting the two
alternate hypotheses.
Based on
decisions of the tested hypotheses conclusions were reached that there is significant relationship
between quality service delivery and customer loyalty in Logistic Service
Providers. Also there is relationship between customer
satisfaction and customer loyalty in Logistic Service Providers.
DHL Express was
recommended to take fresh look at Customer loyalty and retention strategy,
align loyalty and retention programs with marketing strategy and also providing
consistently high quality service.
TABLE OF CONTENTS
Certification i
Dedication ii
Acknowledgement iii
Abstract iv
Table of content v
CHAPTER
ONE: Introduction
1.1 Background
of the Study 1
1.2 Statement
of the Problems 3
1.3 Aim
and Objectives of the Study 3
1.4 Research
Questions 4
1.5 Statement
of Hypotheses 5
1.6 Significance
of the Study 5
1.7 Scope of the Study 6
1.8 Limitation
of the Study 6
1.9 Historical
Background of Case Study 7
1.10 Definition
of Terms 7
CHAPTER
TWO: Literature Review
2.0 Introduction
9
2.1 Nature
of Logistics 9
2.2 Types
of Logistic Service Providers (LSPS) 12
2.2.1 Carriers
13
2.2.2 Couriers
& Express & Parcel/Postal (CEP) 13
2.2.3 Freight
Forwarders 13
2.2.4 Third-Party
LSPs (3PLs) 14
2.2.5 Fourth-Party
LSPs (4PLs) 14
2.3 Customer
Satisfaction 14
2.4 Customer
Loyalty 18
2.4.1 Customer
Loyalty Concepts 20
2.4.1.1Behaviourist Customer Loyalty
Concepts 20
2.4.1.2 Neo-Behaviourist Customer
Loyalty Concepts 22
2.4.2 Determinants
of Customer Loyalty 23
2.4.3 Component
of Customer Loyalty 24
2.4.3.1 Supplier-Focused Perspective 24
2.4.3.2 Customer-Focused Perspective 25
2.4.3.2 Relationship-Focused
Perspective 25
2.5 Theoretical
Framework 26
2.5.1 Social
Exchange Theory 26
2.5.2 Equity
Theory 28
2.5.3 Commitment
Trust Theory 29
2.6 Segmentation
of Customer Loyalty 30
2.7 Factors
Affecting Customer Loyalty 35
Reference 39
CHAPTER
THREE: Research Methodology
3.1 Introduction 41
3.2 Research
Design 41
3.3 Sources
of Data 42
3.4 Population
of the Study 43
3.5 Sample
and Sampling Techniques 43
3.6 Research
Instrument 43
3.7 Restatement
of Hypotheses 43
3.8 Method
of Data Analysis 44
CHAPTER
FOUR: Data Presentation and Analysis
4.0 Introduction
46
4.2 Personal
Characteristics of the Respondent 46
CHAPTER
FIVE: Summary, Conclusion and Recommendations
5.0 Introduction 67
5.1 Summary
of Findings 67
5.2 Conclusion
68
5.3 Recommendation
69
Reference
71
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
A multitude of companies today has
already identified the need to create a loyal customer base and acknowledges
that maintaining existing customers and extending business with them is
significantly less expensive than acquiring new customers.
Customer loyalty gained importance when
the classic marketing paradigm with its instrumental and transactional
orientation proved unsuitable in the context of longer-term business
relationships. Instead, the relationship marketing approach, which is
specifically concerned with the study of relational ex-changes, gained
importance within research, serving as a conceptual foundation for the majority
of customer loyalty researchers.
The question of how loyalty develops
has been subject to an abundance of research, leading to an expansive body of
literature on loyalty determinants. The extant literature exploring different
factors and their constituent effects on loyalty, however, reveals a strong
focus on consumer goods and industrial equipment settings, while industrial
services have received relatively little attention so far. In addition, the
majority of articles incorporates merely a few potential determinants and thus
fails to draw a comprehensive picture of the mechanisms of customer loyalty
formation.
Just like other businesses, logistics
service providers (LSPs) are faced with increasing competitive pressure that
urges them to concentrate not only on operational business processes, but also
on an efficient and effective customer management.
One way to meet this challenge of rapid
growth and expansion, according to Langley et al. (2005) is to focus on
establishing, maintaining, and developing relationships with customers.
An often proposed driver of logistics
outsourcing is the need to develop and maintain competitive advantage, which
customers of LSPs intend to achieve through concentrating on core competencies
and re-engineering.
I also discover another important
driver is the ongoing globalization, which several authors regard as the most
important challenge that companies are facing.
Companies that outsource logistics
activities increasingly try to consolidate the number of LSPs they use
globally. Therefore, LSPs do not only have to devise sustainable growth
strategies, but also have to develop intercultural management competencies, a
challenge hardly addressed in LSP management literature. While intercultural
management deals with the influence of culture on management styles in
different countries, it is also arguable whether a one best way management
paradigm is applicable even within national confines. LSPs’ customers are
extremely diverse and similarly, relationships between LSPs and their customers
can be expected to exhibit momentous differences. As such, it is a crucial
management issue for LSPs to design their customer loyalty efforts in a manner
that accounts for both cultural context and different relationship characteristics.
1.2 STATEMENT OF THE PROBLEMS
The high cost of service and customers’
dissatisfaction over product services have become factors
affecting most Logistic Service Providers [LSP] in
Most LSPs in
Hence this research work tends to
examine the problems associated with DHL Nigeria and proffer suggestive
solutions to these problems.
1.3 AIM AND OBJECTIVES OF THE STUDY
As outlined in the preceding section,
LSPs are confronted with diverse management challenges that result from
continuous growth, globalization, and customer diversity. The aim of this study
therefore is to identify determinants of customer loyalty in relationship to
service rendered by LSPs with special reference to DHL Nigeria.
The objectives of this research work
includes:
·
Investigate study on customer level of
satisfaction in towards DHL Express.
·
To identify the loyalty of customer towards DHL
Express.
·
To measure the specific reasons for
satisfaction and dissatisfaction in with DHL Express.
·
Examine the interface of marketing and
logistics at DHL Nigeria
·
Examine the mechanisms underlying
loyalty in the logistics outsourcing context at DHL.
·
To identify the recommendations of DHL
Express to others by existing loyal customers.
1.4
RESEARCH QUESTIONS
Research questions are meant to
generate possible answers to different aspects of the research problem and they
should be clearly stated such that they act as guides in identification,
collection and analysis of relevant data. In order to achieve the purpose of
this research study, the study will attempt to provide answers to the following
research questions.
·
Is
there any relationship between customer satisfaction and customer loyalty in
Logistic Service Providers?
·
Is
there significant relationship between quality service delivery and customer
loyalty?
·
What
is the effectiveness of quality service on customer satisfaction?
·
Does
efficient and effective competitive advantage affect customer interest?
·
Does
new service control development programmes have impact on customer
satisfaction?
·
Does
service quality and customer satisfaction affect the growth and profitability
which the organization achieves?
1.5
STATEMENT OF HYPOTHESES
Hypothesis is a tentative answer to a
research question. It is a conjectural statement about the relationships that
exist between two or more variables which needs to be tested empirically before
they can be accepted or rejected. In a research work, hypotheses are never
proved or disproved, they are either supported (i.e. accepted) or rejected. To
provide answer to the research questions arising from this study, the following
hypotheses are postulated.
HYPOTHESIS ONE
HO:
There is no significant relationship
between quality service delivery and customer loyalty in Logistic Service
Providers
H1: There is significant relationship
between quality service delivery and customer loyalty in Logistic Service
Providers
HYPOTHESIS TWO
HO:
There is no relationship between
customer satisfaction and customer loyalty in Logistic Service Providers
H1: There is relationship between customer
satisfaction and customer loyalty in Logistic Service Providers
1.6
SIGNIFICANCE OF THE STUDY
The significance of the study is to
ensure that Logistic Service Providers create better image for the customer.
The study will help the Logistic of controlling their activities in respect to
high quality service standard.
Hence, the service quality and customer
satisfaction survey would give a comparison test to validate service
performance measures with DHL Nigeria. This study will also be useful to
students for further research, and other Logistic Service Providers as inducing
factors to customer patronage and the importance of quality control in everyday
activities.
1.7
SCOPE OF THE STUDY
Scope of the study is mainly to examine
the current level of customer satisfaction and the loyalty of the customer
towards the company. Also to investigate
if the quality of service delivery is satisfactory to customers of DHL Nigeria.
1.8 LIMITATIONS
OF THE STUDY
In the
course of conducting this research work, it is expected that the following will
constitute impediment to the effective conduct of this study.
·
Availability of relevant literatures and
textbooks
·
Time constrains
·
Financial constraints
·
Inaccessible and inadequate data
·
Inadequate information given by the case
study firm.
·
Some customers have lack of time, so
they may not communicate properly.
1.9 HISTOROCAL BACKGROUND OF CASE STUDY
DHL is
a Deutsche Post World Net company
of
In 1998, Deutsche Post World Net began
to acquire shares in DHL, finally reached majority ownership in 2001, and completed
the purchase in 2002. DHL's
global headquarters are located in
DHL owns
its own cargo airlines, European Air Transport, originally based in
1.10 DEFINITION OF TERMS
PRODUCT
QUALITY:
Product quality can be analyzed under the concept of two different
perspectives, objectives quality and perceived quality (Brunso et al., 2005).
The objective to measure the quality is determined by intrinsic and extrinsic
attributes. The intrinsic or the inner attributes refers to something that are
related to the physical of the product (color, appearance and etc) whereas
perceived quality or extrinsic attributes exist in the form of non-physical but
related to the product (brand name, stamp of quality, product information and
etc).
CUSTOMER
SATISFACTION:
Customer satisfaction has been defined in various ways, but the
conceptualization, which appears to have achieved the widest acceptance, is
that satisfaction is a post-choice evaluative judgment of a specific
transaction (Bastos and Gallego, 2008). Customer satisfaction is the result of
a customer’s perception of the value received in a transaction or relationship
– where value equals perceived service quality relative to price and customer
acquisition costs (Hallowell, 1996; Heskett et al., 1990; Blanchard and
Galloway, 1994).
LOYALTY: Aaker and Keller, 1990 believe that
loyalty is closely associated with various factors, one of the main ones being
the experience of use. Customers may be loyal owing to high switching barriers
related to technical, economical or psychological factors which make it costly
or difficult for the customer to change
CUSTOMER LOYALTY : This can be defined as the faithful behaviour of clients to a company or organisation. Customer loyalty implies that even if companies make minor errors or mistakes, customers are still willing to do business with them or maintain relations.
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