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    PLAGIARISM DECLARATION FORM

    Name: Deepa malik

    Enrollment Number: 105362403 Course: MScFT

    1. I know that plagiarism is wrong. Plagiarism is to use anothers work and to

    pretend that it is ones own.

    2. I will use a recognized

    conention !or citation and re!erencing. Eachsigni!icant contribution to" and #uotation in" m$ report% pro&ect !rom the

    work" or works" o! other people has been acknowledged through citation

    and re!erence.

    '. (ll reports % pro&ects will be original work completed b$ m$sel!. I will not

    use the same material in all m$ submissions to the department.

    ). I will not allow an$one to cop$ m$ work with the intention o! passing it o!!

    as his or her own work.

    ************************

    +ignature o! student ,ate:1-th&une 212

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    FOOTWEAR DESIGN AND DEVELOPMENTINSTITUTE(Ministry of Commerce & Industry, Government of India)

    A-10/A, Sector 2, !oida " 201#01, Gautam $ud%a !aar, '

    DISSERTATION REPORTON

    C!STOMER SATISFACTION AND LO"ALT" IN LOGISTICS SER#ICES $D%L E&PRESS 'I( P#T LTD

    This Dissertation work was completed in partial fulfillment of therequirements for the Masters Degree in Footwear Technology

    Footwear Design & Development Institute

    resented *y+eea Ma.i

    -----------------------------------------

    (Sinatureof Student)

    This coursework confirms that the study was completed by the student in

    his best capacity and under the institutes interest in terms of ethical

    standards of writing which is free from issues of Plagiarism or

    inappropriate ways of preparing the report.

    PR!"TD T#$

    Mrs% Prachi !harma

    Date$ 'th(une )*)

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    +,-"#./D0M"T

    I oe a reat many t%ans to a reat many eo.e %o %e.ed and suorted

    me durin t%e main of t%is dissertation roect

    My deeest t%ans to ecturer and 34 of maretin deartment, Mrs rac%i

    S%arma for uidin and correctin various documents of mine it% attention and care

    S%e %as taen ain to o t%rou% t%e roect and mae necessary correction as and

    %en needed

    I e5ress my t%ans to my *atc% mates and friends for %e.in me in at%erinnecessary information %erever needed, and %e.in me in com.etion of t%isdissertation roect

    I ou.d a.so t%an my Institution and my facu.ty mem*ers it%out %om t%is

    roect ou.d %ave *een a distant rea.ity I a.so e5tend my %eartfe.t t%ans to my

    fami.y and e.. is%ers

    Deepa malik

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    ,#"T"T!

    ,hapters Page "o%

    1 Introduction 1

    2 Comany rofi.e 16

    # 7evie of iterature 18

    7esearc% Met%odo.oy 28

    6 ata Ana.ysis and Interretation #6

    9 :indins 66

    ; Suestions 6;

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    I"TR#D1,TI#"

    Research Motivation

    A mu.titude of comanies today %as a.ready identified t%e need to create a

    .oya. customer *ase and acno.edes t%at maintainin e5istin customers and

    e5tendin *usiness it% t%em is sinificant.y .ess e5ensive t%an ac=uirin ne

    customers >mirica. roof of t%e ro.iferation of suc% customer .oya.ty efforts in t%e

    *usiness or.d is e rovided in t%e form of .oya.ty rorams, %ic% many

    comanies %ave insta..ed durin t%e ast years $y enain in efforts aimed at

    creatin customer .oya.ty, %ic% in turn fosters financia. success in monetary terms

    firms react to increasin cometitive c%a..enes

    ?it%in researc%, t%e investiation of customer .oya.ty ained imortance %en

    t%e c.assic maretin aradim it% its instrumenta. and transactiona. orientation

    roved unsuita*.e in t%e conte5t of .oner-term *usiness re.ations%is Instead, t%e

    re.ations%i maretin aroac%, %ic% is secifica..y concerned it% t%e study of

    re.ationa. e5-c%anes, ained imortance it%in researc%, servin as a concetua.

    foundation for t%e maority of customer .oya.ty researc%ers

    @%e =uestion of %o .oya.ty deve.os %as *een su*ect to an a*undance of

    researc%, .eadin to an e5ansive *ody of .iterature on .oya.ty determinants @%e

    e5tant .iterature e5.orin different factors and t%eir constituent effects on .oya.ty,

    %oever, revea.s a stron focus on consumer oods and industria. e=uiment settins,

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    %i.e industria. services %ave received re.ative.y .itt.e attention so far In addition, t%e

    maority of artic.es incororates mere.y a fe otentia. determinants and t%us fai.s to

    dra a comre%ensive icture of t%e mec%anisms of customer .oya.ty formation

    .ace+ C%ennai

    ust .ie ot%er *usinesses, .oistics service roviders (Ss) are faced it%

    increasin cometitive ressure t%at ures t%em to concentrate not on.y on oerationa.

    *usiness rocesses, *ut a.so on an efficient and effective customer manaement In t%e

    'S a.one, SsB revenues re from 'S- #1 *i..ion in 1886 to 'S-

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    strateies, *ut a.so %ave to deve.o intercu.tura. manaement cometencies, a

    c%a..ene %ard.y ad-dressed in S manaement .iterature

    ?%i.e intercu.tura. manaement dea.s it% t%e inf.uence of cu.ture on

    manaement sty.es in different countries, it is a.so arua*.e %et%er a one *est ay

    manaement aradim is a.ica*.e even it%in nationa. confines SsB customers

    are e5treme.y diverse and simi.ar.y, re.ations%is *eteen Ss and t%eir customers

    can *e e5ected to e5%i*it momentous differences As suc%, it is a crucia.

    manaement issue for Ss to de-sin t%eir customer .oya.ty efforts in a manner t%at

    accounts for *ot% cu.tura. conte5t and different re.ations%i c%aracteristics

    Research goals

    As out.ined in t%e recedin section, Ss are confronted it% diverse

    manaement c%a..enes t%at resu.t from continuous rot%, .o*a.iEation, and

    customer diversity @%e aim of t%e resent study t%erefore is to identify determinants

    of customer .oya.ty in re.ations%is *eteen Ss and t%eir customers *y e5.icit.y

    considerin different c%aracteristics and cu.tura. conte5ts of suc% re.ations%is In t%is

    sense, t%e resent researc% is ositioned at t%e interface of maretin and .oistics and

    is intended to contri*ute not on.y to .oistics researc%, *ut a.so to researc% in

    maretin, customer .oya.ty, and cu.tura. studies

    In order to address t%e concet of customer .oya.ty, it is imortant to

    understand t%e mec%anisms under.yin .oya.ty in t%e .oistics outsourcin conte5t

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    :or t%is reason, t%e startin oint of t%e resent researc% i.. *e t%e study of

    ?a..en*ur, %o studied customer .oya.ty it%in re.ations%is *eteen Ss and

    t%eir customers 4n t%is *asis, factors t%at can *e surmised to determine customer

    .oya.ty in suc% re.ations%is i.. *e roosed and interdeendencies *eteen t%ese

    factors i.. *e identified @%e resu.tin comre%ensive e5.anatory mode. of customer

    .oya.ty i.. not on.y rovide insi%ts into t%e constitution of customer .oya.ty, *ut i..

    a.so serve as t%e *asis for su*se=uent ana.yses

    As stated revious.y, a .o*a.iEin maret.ace and t%e need of Ss to render

    .oistics services on an internationa. sca.e re=uires intercu.tura. manaement

    cometencies $efore *ein a*.e to a.y suc% manaement tec%ni=ues, t%ou%, a

    t%orou% understandin of cu.tura. differences *eteen different countries is

    necessary @%e resent study i.. t%erefore rovide a startin oint for suc% ana.yses

    *y investiatin cu.tura. differences *eteen to imortant marets for .oistics

    outsourcin, t%e 'SA and Germany articu.ar differences *eteen Germany and t%e

    'SA i.. *e identified and a.ied to t%e revious.y devised customer .oya.ty mode.

    As a resu.t, differences *eteen t%e to countries it% resect to t%e formation of

    customer .oya.ty can *e inferred

    :ina..y, t%is study i.. investiate in %o far different re.ations%i conditions

    inf.uence t%e deve.oment of customer .oya.ty :or t%is urose, imortant

    re.ations%i c%aracteristics i.. *e identified and t%eir moderatin inf.uences on t%e

    customer .oya.ty mode. i.. *e e5amined @%is i.. rovide information on t%e

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    ro*ustness of t%e customer .oya.ty mode. versus re.ationa. continencies and i..

    suest if it is necessary to differentiate customer .oya.ty efforts accordin.y

    ,ustomer !atisfaction

    @%e term .oistics is often misinterreted to mean transortation In fact, t%e

    scoe of .oistics oes e.. *eyond transortation oistics forms t%e system t%at

    ensures t%e de.ivery of t%e roduct in t%e entire su.y ie.ine @%is inc.udes

    transortation, acain, storae and %and.in met%ods, and information f.o @%e

    imact of .oistics in t%e a*i.ity of a comany to satisfy its customers cannot *e

    overstated A.. ot%er efforts at moderniEation it%in a comany ou.d not *ear fruit

    unti. t%e .oistics system is carefu..y desined to faci.itate t%e smoot% and efficient

    f.o of oods in t%e system

    @%e toic of .oistics is re.ative.y ne in India @%ere %ave *een some

    comanies t%at %ave done or in t%is area, *ut a .are num*er of comanies are on.y

    no *einnin to rea.iEe t%e *enefits of desinin and manain t%e entire su.y

    c%ain ?it% India oinin t%e .o*a. maret.ace, t%e ro.e of .oistics assumes reater

    imortance

    @%e industria. o.icies in India %ave romted manufacturers to *ui.d .ants in

    remote, *acard areas due to ine5ensive .and and ta5 *enefits @%is oses some

    serious .oistica. ro*.ems Aart from a oor road and transortation netor, t%e

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    e5istin communications system in India .eaves a .ot to *e desired *y any

    internationa. standard It is in t%is conte5t t%at .oistics %as to *e considered in India

    ,ustomer !atisfaction in 2 !teps

    1 >ncourae :ace-to-:ace ea.ins

    @%is is t%e most dauntin and donri%t scary art of interactin it% a

    customer If youFre not used to t%is sort of t%in it can *e a retty nerve-racin

    e5erience 7est assured, t%ou%, it does et easier over time ItFs imortant to meet

    your customers face to face at .east once or even tice durin t%e course of a roect

    2 7esond to Messaes romt.y & ee Hour C.ients Informed

    @%is oes it%out sayin rea..y ?e a.. no %o annoyin it is to ait days

    for a resonse to an emai. or %one ca.. It mi%t not a.ays *e ractica. to dea. it%

    a.. customersF =ueries it%in t%e sace of a fe %ours, *ut at .east emai. or ca.. t%em

    *ac and .et t%em no youFve received t%eir messae and youF.. contact t%em a*out it

    as soon as ossi*.e >ven if youFre not a*.e to so.ve a ro*.em ri%t aay, .et t%e

    customer no youFre orin on it

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    # $e :riend.y and Aroac%a*.e

    A fe..o Site ointer once to.d me t%at you can %ear a smi.e t%rou% t%e

    %one @%is is very true ItFs very imortant to *e friend.y, courteous and to mae your

    c.ients fee. .ie youFre t%eir friend and youFre t%ere to %e. t%em out @%ere i.. *e

    times %en you ant to *eat your c.ients over t%e %ead reeated.y it% a *.unt o*ect

    - it %aens to a.. of us ItFs vita. t%at you ee a c.ear %ead, resond to your c.ientsF

    is%es as *est you can, and at a.. times remain o.ite and courteous

    3ave a C.ear.y-efined Customer Service o.icy

    @%is may not *e too imortant %en youFre ust startin out, *ut a c.ear.y

    defined customer service o.icy is oin to save you a .ot of time and effort in t%e

    .on run If a customer %as a ro*.em, %at s%ou.d t%ey do If t%e first otion doesnFt

    or, t%en %at S%ou.d t%ey contact different eo.e for *i..in and tec%nica.

    en=uiries If t%eyFre not satisfied it% any asect of your customer service, %o

    s%ou.d t%ey te.. @%ereFs not%in more annoyin for a c.ient t%an *ein assed from

    erson to erson, or not noin %o to turn to Main sure t%ey no e5act.y %at

    to do at eac% stae of t%eir en=uiry s%ou.d *e of utmost imortance So mae sure

    your customer service o.icy is resent on your site -- and any%ere e.se it may *e

    usefu.

    6 Attention to etai. (a.so non as F@%e itt.e !icetiesF)

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    3ave you ever received a 3ay $irt%day emai. or card from a comany you ere a

    c.ient of 3ave you ever %ad a ersona.iEed sin-u confirmation emai. for a service

    t%at you cou.d te.. as tyed from scratc% @%ese .itt.e niceties can *e time

    consumin and arenFt a.ays cost effective, *ut remem*er to do t%em

    >ven if itFs as sma.. as sendin a 3ay 3o.idays emai. to a.. your customers, itFs

    somet%in It s%os you careJ it s%os t%ere are rea. eo.e on t%e ot%er end of t%at

    screen or te.e%oneJ and most imortant.y, it maes t%e customer fee. e.comed,

    anted and va.ued

    9 Anticiate Hour C.ientFs !eeds & Go 4ut 4f Hour ?ay to 3e. @%em 4ut

    Sometimes t%is is easier said t%an doneK 3oever, ac%ievin t%is sureme .eve. of

    understandin it% your c.ients i.. do onders for your orin re.ations%i

    ; 3onour Hour romises

    ItFs ossi*.e t%is is t%e most imortant oint in t%is artic.e @%e sim.e

    messae+ %en you romise somet%in, de.iver C.ients donFt .ie to *e disaointed

    Sometimes, somet%in may not et done, or you mi%t miss a dead.ine t%rou% no

    fau.t of your on roects can *e .ate, tec%no.oy can fai. and su*-contractors donFt

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    a.ays de.iver on time In t%is case a =uic ao.oy and assurance itF.. *e ready ASA

    ou.dnFt o a miss

    ,ustomer /oyalty

    4*tainin a t%orou% understandin of customer .oya.ty is a rere=uisite for

    t%e e5ecution of t%e researc% at %and :or t%at, t%e deve.oment of customer .oya.ty

    researc% it%in t%e frameor of re.ations%i maretin i.. *e resented first, *efore

    different customer .oya.ty concets i.. *e introduced :rom t%ese concets, a

    definition of customer .oya.ty for use in t%is study i.. *e derived, *efore *ot%

    conse=uences and antecedents of customer .oya.ty i.. *e ortrayed

    Since t%e *einnin of t%e 1880s, customer .oya.ty %as ained imortance *ot%

    in re.ations%i maretin researc% and in *usiness In *usiness, t%is can *e attri*uted

    to c%anin maret- and cometition-environments ue to a s%ift from a se..ersB to a

    *uyersB maret and *ecause of an increasin deree of .o*a.iEation, most industries

    find t%emse.ves confronted it% ne c%a..enes In a first %ase, firms tried to face

    t%ese c%a..enes *y focusin on t%eir interna. rocesses and oraniEationa. structures,

    tryin to ac%ieve cost reductions *y concentratin on interna. imrovements A second

    %ase of e5terna. focus fo..oed, %ere firms directed attention to t%eir customers,

    tryin to retain e5istin ones and to in over ne ones (c%urnin) Since Lac=uirin

    ne customers is muc% more e5ensive t%an eein t%em And L.oya. customers are

    t%e *edroc of any *usiness A .oya. customer *ase reresents a *arrier to entry, a

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    *asis for a rice remium, time to resond to cometitor innovations, and a *u.ar

    aainst de.eterious rice cometition oya.ty is critica. to *rand vo.ume, is %i%.y

    corre.ated to maret s%are, and can *e used as t%e *asis of redictin future maret

    s%areJ conse=uent.y, understandin .oya.ty aears critica. to any meaninfu. ana.ysis

    of maretin stratey

    In maretin researc%, to trends mar t%e deve.oment of customer .oya.ty

    ?%i.e individua. transactions initia..y ere in t%e center of maretin researc%, t%e

    focus s%ifted toards ana.yEin re.ations%is states t%at t%e Ntraditiona.B maretin

    concet of t%e maretin mi5 it% its N sB, deve.oed in t%e midd.e of t%e .ast

    century, %ad *een t%e esta*.is%ed aroac% unti. t%e 1880s @%is aroac%, %o-ever,

    focuses so.e.y on transactions, a deficit tac.ed *y t%e re.ations%i maretin

    aroac% At t%e core of it is t%e study of re.ations%is *eteen *uyers and se..ers of

    oods or services, in contrast to mere.y e5aminin transactions An often cited and

    comre%ensive definition of re.ations%i maretin is rovided L7e.ations%i

    maretin refers to a.. maretin activities directed toard esta*.is%in, deve.oin,

    and maintainin successfu. re.ationa. e5c%anes @%erefore, t%e re.ations%i

    maretin aroac% ro-vides a suita*.e environment in %ic% customer .oya.ty

    researc% can *e nested

    ?%i.e t%e deve.oment of re.ations%i maretin *ean in t%e ear.y 18;0s, it

    as not unti. t%e .ate 18

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    e5tension of *uyer-se..er re.ations%is A.t%ou% re.ations%i maretin today is

    ide.y acceted amon maretin researc%ers, its romoters do not ostu.ate t%e

    re.acement of t%e transactiona. aroac%, *ut rat%er u5taose t%e to aroac%es

    :or e5am.e, de.ineates a stratey continuum, in %ic% different oods re=uire

    different derees of transaction- and re.ations%i-*ased maretin strateies As a

    resu.t of t%e focus on re.ations%is in maretin researc%, customer .oya.ty ained

    imortance it%in researc%

    $efore determinin %ic% stream t%e resent study can *e associated it%,

    %oever, it is imortant to create a c.ear understandin of different customer .oya.ty

    concets reva.ent in researc% @%is i.. *e accom.is%ed in t%e fo..oin section

    ,ustomer /oyalty ,oncepts

    7eviein researc%, it *ecomes o*vious t%at t%e notion of customer .oya.ty is

    *.urred At its core, customer .oya.ty dea.s it% re.ations%is *eteen su.iers and

    t%eir customers and can *e distinuis%ed from ot%er .oya.ty asects, suc% as *rand

    .oya.ty, %ic% refer to a more a*stract attac%ment, suc% as t%at toards a *rand

    ?it%in German customer .oya.ty .iterature, t%e notion of customer .oya.ty is even

    more faceted, encomasses *ot% Ncustomer .oya.tyB and Ncustomer retentionB

    distinuis%es an active, su.ier-focused comonent and a assive, customer focused

    comonent of customer .oya.ty

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    In t%e su.ier-focused ersective, customer .oya.ty is seen as a *und.e of

    measures t%at aim at imrovin re.ations%is it% customers @%e su.ier is in t%e

    center of attention and t%e customer is on.y rearded as t%e factor at %ic% success of

    customer .oya.ty *ecomes manifest 3ere it *ecomes c.ear t%at t%is aroac% contains

    a concetua. deficit It is t%e customer %o eventua..y decides on %et%er customer

    .oya.ty manaement is successfu. or not, *ecause a.. activities undertaen *y a

    su.ier can on.y *e eared at inf.uencin customers to *e .oya. A customer-focused

    ersective t%erefore %as to *e added to eva.uate t%e success of customer .oya.ty

    manaement

    ?it%in t%e customer-focused ersective, customer .oya.ty is concetua.iEed

    tain into account customersB com.e5 c%aracteristics @%ese can eit%er *e

    aroac%ed as customersB direct.y o*serva*.e actions and/or tae into account t%eir

    attitudes and intentions Since customersB actions are direct.y inf.uenced *y t%eir

    attitudes and intentions, it is o*vious t%at t%ese %ave to *e scrutiniEed to understand

    and manae .oya.ty A t%ird ersective is a synt%esis of t%e former to aroac%es

    @%e re.ations%i-focused ersective direct.y e5amines t%e re.ations%i *eteen

    su.iers and customers Accordin.y, t%e o*ects of study in t%is ersective usua..y

    are *uyin *e%avior in retai. conte5ts and .on-term re.ations%is mared *y fre=uent

    interaction *eteen su.iers and *uyers in industria. conte5ts

    It is c.ear t%at t%e su.ier-focused ersective it% its instrumenta. aroac%

    is sinificant.y different from t%e ot%er to aroac%es istinuis%in t%e customer-

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    and t%e re.ations%i-focused ersective, %oever, is difficu.t, *ecause *ot% focus on

    t%e customer

    Behaviorist customer loyalty concepts

    $e%aviorist concets of customer .oya.ty %ave *een at t%e core of ear.y

    maretin researc% and focus on customersB o*serva*.e *e%avior, as e in urc%asin

    *e%avior Accordin.y, customer .oya.ty is esta*.is%ed, %en customers demonstrate

    consistency in t%eir c%oice of su.ier or *rand L3ard-core .oya.ty, %en one

    roduct a.ternative is e5c.usive.y reurc%ased and of Lreinforcin .oya.ty, %en

    customers sitc% amon *rands *ut reeat-urc%ase one or more a.ternatives to a

    sinificant e5tent Simi.ar.y, customer .oya.ty as Lt%e roortion of times a urc%aser

    c%ooses t%e same roduct or service in a secific cateory comared to t%e tota.

    num*er of urc%ases made *y t%e urc%aser in t%at cateoryL ein customer

    .oya.ty to urc%asin *e%avior, %oever, is very critica., t%ere can *e a mu.titude of

    factors affectin urc%asin *e%avior, suc% as roduct avai.a*i.ity or secia. dea.s,

    %ic% are not rased *y .ooin at urc%ases a.one A main deficit of t%e

    *e%avioristic aroac% t%us is t%at it does not .oo at t%e driversB *e%ind urc%asin

    *e%avior

    Anot%er disadvantae of *e%avioristic customer .oya.ty concets is t%eir e5-

    ost aroac% ?%en .oya.ty is on.y e5ressed t%rou% urc%ases, information on

    customersB actua. .oya.ty status in *eteen urc%ases is not avai.a*.e Conse=uent.y,

    decreasin .oya.ty is on.y reconiEed after it manifests itse.f t%rou% c%aned

    urc%asin *e%avior 4n.y in re.ations%is it% fre=uent interaction can a su.ier

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    interate furt%er asects, suc% as com.aints, into customer .oya.ty manaement @%e

    reason, %y *e%avioristic concets may sti.. *e va.ua*.e, is *ecause t%e measurement

    of customer .oya.ty in t%is aroac% does not necessitate invo.vement *y t%e

    customer @%e assessment of attitudes and intentions ou.d a.ays im.y customersB

    cooeration t%rou% articiation in surveys $y sim.y recordin urc%ases, e

    t%rou% de.ivery records in t%e industria. conte5t or customer cards in a consumer

    conte5tJ t%e assessment of customer .oya.ty oses .itt.e difficu.ty articu.ar.y in areas,

    %ere most urc%ases can *e easi.y ascri*ed to individua. customers, as is t%e case

    it% mai.-orderin or *oo-stores on t%e internet, t%e *e%avioristic aroac% is usefu.

    for identifyin different customer rous and t%eir c%aracteristics Suc% firms,

    %oever, can on.y assess urc%ases of t%eir on roducts, %i.e urc%ases of

    cometin roducts o unnoticed :irms can t%erefore neit%er dra conc.usions a*out

    re.ative c%anes of urc%asin *e%aviors, nor eva.uate t%eir comarative maret

    osition

    Neo-behaviorist customer loyalty concepts

    @%ese narro tec%nica. definitions do not ade=uate.y cature t%e ric%ness and

    det% of t%e .oya.ty construct im.icit in a re.ationa. frameor Conse=uent.y, neo-

    *e%avioristic customer .oya.ty concets start at t%e s%ortcomins of t%e *e%avioristic

    aroac% *y e5aminin t%e causes of .oya.ty As ear.y as 1898, ay conc.uded t%at

    L.oya.ty s%ou.d *e eva.uated it% *ot% attitudina. and *e%aviora. criteria ot%erise

    accidenta. reeat-urc%ases, mere.y resu.tin from situationa. e5iencies, ou.d *e

    rearded as indicators of .oya.ty @%ere is no areement, %oever, on t%e =uestion,

    %et%er attitudes are art of customer .oya.ty or mere.y an antecedent of it Some

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    aut%ors roose t%at on.y ositive attitude can .ead to NtrueB customer .oya.ty If

    attitude t%en is a necessary rere=uisite of customer .oya.ty, some drivers of .oya.ty

    cannot *e e5.ained @ransaction cost t%eory, for instance, rovides t%e concet of

    asset secificity 7e.ations%i-secific investments create economic sitc%in *arriers

    and t%erefore increase customer .oya.ty 3oever, t%e mere reeat urc%ase of oods

    or services for reasons of economic constraints ou.d not =ua.ify as .oya.ty, as

    ositive attitudes are not invo.ved In order to avoid t%e out.ined ro*.em, it is usefu.

    to a*stain from definin ositive attitude to *e a necessary antecedent of .oya.ty

    Instead, researc%ers usua..y consider intentions and o*serva*.e *e%avior to *e t%e

    constitutin e.ements of customer .oya.ty

    Determinants of ,ustomer /oyalty

    In order to *e a*.e to ear maretin activities toards t%e creation of

    customer .oya.ty, its determinants and t%eir recise effects %ave to *e non

    Accordin.y, many researc%ers %ave investiated t%is toic In order to ain an

    overvie of t%e determinants identified in t%ese ors, t%ey can *e structured in t%ree

    dimensions+

    34 Comany-re.ated determinants refer to t%e su.ier itse.f or to t%e oods or

    services offered It is a rere=uisite for t%e e5istence of customer .oya.ty t%at

    t%e offered oods or services create uti.ity for t%e customer and t%at t%ey are

    avai.a*.e In t%is resect, an assessment is usua..y erformed *y e5aminin

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    =ua.ity In order to eva.uate t%e rice-erformance ratio, customers i.. ay

    attention to rices Customer .oya.ty i.. a.so *e inf.uenced *y t%e reutation

    a comany %as and u.timate.y *y customer .oya.ty rorams offered

    3)4 7e.ations%i-re.ated determinants .ay a sinificant ro.e in .on-term

    re.ations%is :actors reardin t%e interaction *eteen su.ier and

    customer, suc% as re.ations%i =ua.ity, revious e5eriences, and trust are

    imortant Commitment, %ic% rovides evidence of emotiona. c.oseness and

    mora. or normative fee.ins of o*.iation, taes a centra. ro.e in re.ations%is

    Secificity and deendence can .ead to economic, syc%o.oica. and socia.

    sitc%in *arriers

    354 Customer-re.ated determinants are main.y inf.uenced *y customersB

    c%aracteristics In t%is resect, affect and invo.vement, and conse=uent.y a.so

    t%e imortance of t%e ood or service to t%e customer, are imortant In

    addition to t%e a*ove de.ineated areas, t%e effects of t%e maret environment

    and cometition are researc%ed, as is t%e .in *eteen satisfaction and .oya.ty,

    %ic% .ays an imortant ro.e in t%e researc% of customer .oya.ty and is often

    .aced in one of t%e t%ree dimensions 3oever, as most ot%er determinants

    inf.uence satisfaction, it cannot *e c.ear.y searated and s%ou.d t%erefore *e

    .isted as a distinct cateory

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    ,#MP+"6 PR#FI/

    #verview

    oistics maret is a.. set to e5erience a eriod of e5.osive oranic rot%,

    udin *y indeendent maret ana.yst atamonitorFs .atest researc% @%e

    atamonitor reort, OIndia oistics 4ut.oo 200;,O redicts %i% dou*.e-diit

    rot% rates for *ot% outsourced and contract .oistics in India

    ?it% IndiaFs ross domestic rofit (G) roin at over 8D er year and t%e

    manufacturin sector enoyin dou*.e diit rot% rates, t%e Indian .oistics industry

    is at an inf.ection oint, and is e5ected to reac% a maret siEe of over 126 *i..ion in

    year 2010

    Stron rot% ena*.ers e5ist in India today in t%e form of over #00 *i..ion

    ort% of infrastructure investments, %ased introduction of va.ue-added-ta5 (PA@),

    and deve.oment of oraniEed retai. and ari-rocessin industries In addition, stron

    forein direct investment inf.os (:I) in automotive, caita. oods, e.ectronics,

    retai., and te.ecom i.. .ead to increased maret oortunities for roviders of # in

    IndiaO

    3oever, as a resu.t of t%e under-deve.oed trade and .oistics infrastructure,

    t%e .oistics cost of t%e Indian economy is over 1#D of G, comared to .ess t%an

    10D of G in a.most t%e entire ?estern >uroe and !ort% America

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    As .eadin manufacturers rea.in t%eir .o*a. ortfo.ios of manufacturin

    .ocations, India i.. %ave to or on suc% systemic inefficiencies, in order to attract

    and retain .on-term rea. investments

    #/outsourced .oistics is t%e outsourcin of a comanyFs .oistics oerations

    to a secia.iEed firm, %ic% rovides mu.ti.e tactica. .oistics services for use *y

    customers as oosed to t%e resective comany %avin a *usiness unit in-%ouse to

    oversee its su.y c%ain and transortation of oods

    Some Facts:

    Maret SiEe 'S 16 $i..ion

    Grot% rate *eteen 16 to 20D er annum

    International gateways$

    o Mum*ai

    o e.%i,

    o C%ennai

    Domestic gateways

    o Mum*ai,

    o e.%i,

    o o.ata,

    o C%ennai,

    o $ana.ore,

    o 3ydera*ad,

    o une,

    o Sa.em,

    o Am*a.a,

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    o Gau%ati,

    o A%meda*ad,

    o !aur

    >m.oys over 12 Mi..ion eo.e

    Air e5ress itnessed ma5imum rot% in t%e air caro maret

    In 200; over 1;0 $i..ion s%iments %and.ed

    Air traffic ros faster t%an any%ere in t%e or.d

    @ota. caro traffic increased *y 216 D in 2009-0;

    129 airort

    1 intN. airort account for 89 D of tota. frei%t traffic

    >stimated maret siEe 'S 16 $i..ion

    3i% rot% rate

    >5ress maret e5ected to ro more t%an 20 D

    IndiaNs >5ress industry *ier t%an tea and entertainment industry

    2nd fastest roin maor economy

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    +7out D8/

    D8/ is a Deutsche Post .orld "et comany of Germany t%at rovides

    internationa. Mai., >5ress, oistics and :inance @%e comany as founded in

    1898 *y Adrian a.sey, arry 3i..*.om, and 7o*ert ynn

    @%e trio initia..y rovided a courier service *eteen t%e Continenta. 'nited

    States and 3aaii t%en e5anded t%e *usiness from t%ere In 188

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    'S

    @!@

    'nited States osta. Service and,

    7oya. Mai.

    As on 2009 D8/ em.oyees around 2,

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    .atest definition (CSCM 2006), .oistics manaement is seen as Lt%at art of Su.y

    C%ain Manaement t%at .ans, im.ements, and contro.s t%e efficient, effective

    forard and reverses f.o and storae of oods, services and re.ated information

    *eteen t%e oint of oriin and t%e oint of consumtion in order to meet customersF

    re=uirements@%is vie is c.ear.y mared *y t%e economic o*ectives of

    effectiveness and efficiency and reards .oistics as art of su.y c%ain manaement

    4t%er definitions e t%at of ?e*er and ummer are *roader and refer to

    .oistics as a f.o-oriented desin of a.. va.ue-creation rocesses At t%e *ase of t%eir

    understandin is t%e emirica..y *aced assumtion t%at t%ere are different staes of

    maturity in .oistics ?%i.e t%ere are severa. researc%ers t%at a.so arue for stae

    mode.s of .oistics deve.oment, t%ere is no unity as to %o many staes suc% a

    mode. %as @%e mode. t%at i.. *e *rief.y e5amined in t%is section stems from ?e*er,

    %o identifies four maturity staes @%ese staes are determined *y t%e .eve. of

    .oistics no.ede resent in a firm and re=uire at%-deendent deve.oment from

    t%e .oest to t%e %i%est .eve. of .oistics no.ede+

    In t%e first maturity stae, .oistics is a secia.iEed service function t%at

    rovides transortation, %and.in, and storae services t%at are necessary for an

    efficient f.o of materia.s and oods ?e*er states t%at t%is stae of .oistics maturity

    as first o*serva*.e in t%e 1860s, %en marets c%aned from su.iersB to *uyersB

    marets, re=uirin imroved materia.s f.os to succeed in t%e c%aned maret

    environment @%is is in .ine it% $oerso5 and au%erty, %o confirm t%at

    advanced .oistica. oraniEations *are.y e5isted at t%at time >ffects of t%is aradim-

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    c%ane ere to-fo.d 4n t%e one %and, .oistics otimiEation as ac%ieved t%rou%

    rocess imrovements and advances in forecastin and .annin tec%ni=ues 4n t%e

    ot%er %and, oraniEationa. c%anes too .ace, as many comanies institutiona.iEed

    t%eir .oistics functions in dedicated deartments and t%erefore created a secia.iEed

    service function t%at as searated from ot%er functions suc% as rocurement or

    manufacturin

    @%e second stae of .oistics maturity as initiated *y conte5tua. c%anes in

    t%e economic environment In addition, advances in tec%no.oy faci.itated

    communication and netors *eteen different deartments in comaniesB state As a

    resu.t, firms rea.iEed t%at efficiency cou.d *e increased *y imrovin t%e coordination

    of materia.s f.os from in*ound streams in rocurement t%rou% t%e va.ue creation

    rocess in manufacturin to out*ound streams in distri*ution @%rou% t%is focus on

    t%e interation of different functions, cost and erformance *enefits ere ac%ieved

    ?e*er rovides coordination of .ot-siEes and ust-in-time su.y and roduction as

    e5am.es of t%ese *enefits

    @%e fo..oin t%ird stae of .oistics maturity as necessitated *y furt%er

    c%anes of t%e maret environment Simon oints out t%at t%e intensity of cometition

    increased, an effect attri*uta*.e to over-caacities, and a or.d-ide converence of

    roduct =ua.ity, s%ortened roduct-.ife-cyc.es, and a strent%ened focus on customer

    demands @%e re=uired simu.taneous focus on differentiation and cost .eaders%i as

    not feasi*.e under t%e reva.ent functiona. structures and riid oraniEationa. systems

    Instead, a rocess-oriented intra-comany va.ue c%ain t%at reduces com.e5ity as

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    needed to succeed in t%e c%anin maret environment 3ence, .oistics evo.ved from

    a mere functiona. concet to a manaement concet or, as from oerationa. to

    strateic orientation

    @%e fourt% and, for t%e time *ein, .ast maturity stae of .oistics deve.oment

    is aain driven *y maret ressures ?%en comanies rea.iEed t%at otimiEation

    otentia.s it%in t%e oraniEation %ad *een .are.y e5.oited, t%e focus of attention

    as furt%ered to inc.ude ustream and donstream artners in t%e su.y c%ain In

    t%is sense, t%e vie of .oistics as a manaement concet from t%e t%ird maturity

    stae is e5-tended over comany *oundaries and can *e .a*e.ed su.y c%ain

    manaement (SCM)

    @%is under.ines t%e outstandin imortance of .oistics for comanies, %ic%

    can rea.iEe sinificant economic *enefits *y a..ocatin manaement caacities to t%e

    imrovement of .oistics and t%e creation of f.o-oriented oraniEations A ay, in

    %ic% many comanies resent.y try to accom.is% t%is, is *y outsourcin arts or a..

    of t%eir .oistics activities to t%ird arties

    /ogistics !ervice Providers

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    If a comany em.oys an outside rovider to erform some or a.. of its

    .oistics activities, t%is outside rovider is termed a .oistics service rovider @%ese

    Ss ere oriina..y on.y offerin a very narro sectrum of services, main.y

    consistin of transortation or are%ousin services In order to react to c%anin

    demands from t%eir customers, as ointed out in t%e recedin sections, Ss %ave

    started to offer interated service ortfo.ios t%at inc.ude a mu.titude of different

    services Accordin to, five tyes of Ss can current.y *e distinuis%ed+ carriers,

    couriers & e5ress & arce./osta. (C>), frei%t forarders, t%ird-arty Ss

    (#s), and fourt%-arty Ss (s), %ic% i.. *e *rief.y descri*ed *e.o

    Carriers are firms t%at on assets for transortation uroses @%ese as-sets

    are usua..y confined to road, sea, air, or rai. transortation In some cases, %oever,

    carriers on severa. of t%e aforementioned transortation assets manaement of

    caacity and .oad-factor otimiEation are at t%e core of t%e carrier *usiness C>

    roviders are a.so transortation roviders As oosed to carriers, C> roviders

    send arce.s or mai. t%ou% t%eir netors, em.oyin different transortation

    ve%ic.es and incororatin %and.in at %u*s In t%is ay, t%ey can virtua..y su.y

    door-to-door services any%ere in t%e or.d, it%out %avin to re.y on any t%ird

    arties Core cometencies of C> roviders are t%e oeration and manaement of

    %i%.y com.e5 distri*ution netors

    :rei%t forarders are intermediaries *eteen su.iers and *uyers of

    transortation services In most cases, *roers carry out additiona. ser-vices, suc% as

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    transortation .annin and manaement, inc.udin t%e associated rovision of

    information systems In some cases, *roers a.so disose of t%eir on transortation

    assets $und.in and coordination of demand for transortation services are t%e core

    cometencies of *roers

    In contrast to t%e aforementioned Ss, #s or contract Ss offer t%eir

    customers .oistics so.utions t%at often inc.ude manaement caacities @%ese

    so.utions most common.y inc.ude severa. services, suc% as are%ousin and

    ic/ac oerations t%at are carried out on a .oner-term contractua. *asis

    Sometimes, customersB va.ue c%ains, suc% as f.eet manaement, order %and.in,

    com.aints manaement, ca.. centers, or assem*.y services A recent addition to t%e

    .ist of tyes of Ss comes in t%e form of s ?%i.e t%ere is no universa.

    areement on t%e definition of t%e , t%e cur-rent state of t%e de*ate esta*.is%es

    s as su.iers of com.ete .oistics systems, it%out carryin out t%e services

    t%emse.ves Instead, s su*-contract a.. oerations from ot%er Ss and confine

    t%emse.ves to t%e manaement of .oistics systems @%us, t%ey do not disose of any

    .oistica. assets and are a neutra. intermediary *eteen *usinesses and asset-*ased

    Ss

    As #s form t%e oint of reference for .oistics outsourcin as dea.t it% in

    t%is study, t%e e5istin notiona. am*iuities in researc% %ave to *e e5amined Aut%or

    to identify different tyes of #s @o %im, t%ere are four distinct c.asses of #s+

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    (1) asset-*ased #s use t%eir on assets (e trucs and are%ouses) to offer

    dedicated .oistics servicesJ

    (2) manaement-*ased #s su.y .oistics manaement t%rou% information

    systems or consu.tinJ

    (#) Interated #s use t%eir on assets to rovide .oistics services, *ut a.so

    su*contract from ot%er vendors if necessaryJ and

    () administration-*ased #s main.y offer administrative manaement (e

    :rei%t ayment)

    T8#RTI,+/ FR+M.#R-

    !ocial :change Theory

    Socia. e5c%ane t%eory dea.s it% Lt%e re.ationa. interdeendence, or

    re.ationa. contract, t%at deve.os over time t%rou% t%e interactions of t%e e5-c%ane

    artners ?%i.e t%is concet %as on.y entered maretin t%eory in t%e 18t%ics ater,

    socio.oists suc% as $.au and >merson, as e.. as socia. syc%o.oists suc% as

    @%i*aut and e..ey ored on t%e concet of socia. e5c%ane

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    4n t%e *asis of a t%orou% investiation of socia. e5c%ane .iterature, am*e,

    ?ittmann, and Seman summariEe t%e fo..oin four foundationa. remises of

    socia. e5c%ane t%eory, %ic% i.. *e detai.ed *e.o+

    >5c%ane interactions resu.t in economic and/or socia. outcomes,

    @%ese outcomes are comared over time to ot%er e5c%ane a.ternatives to

    determine deendence on t%e e5c%ane re.ations%i

    ositive outcomes over times increase firmsB trust of t%eir tradin artner(s)

    and t%eir commitment to t%e e5c%ane re.ations%i, and

    ositive e5c%ane interactions over time roduce re.ationa. e5c%ane norms

    t%at overn t%e e5c%ane re.ations%i

    In contrast to ure economic t%eories, socia. e5c%ane t%eory t%us incororates

    *ot% economic and socia. outcomes, %i%.i%tin t%e fact t%at socia. as e.. as

    economic considerations are made %en eva.uatin t%e va.ue of re.ations%is @%is

    va.ue resu.ts from an assessment of *ot% uti.ities and costs of a re.ations%i, and

    arties i.. c%oose to u%o.d a re.ations%i as .on as t%e cost-uti.ity-ratio is

    satisfactory @%e e5act comosition of uti.ities and costs varies from individua. to

    individua., and more em%asis may *e ut on eit%er socia. or economic asects

    ?%en araisin t%e va.ue of a re.ations%i, arties i.. not on.y consider

    current and ast costs and uti.ities, *ut a.so otentia. future *enefits, and may foreo

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    resent *enefits for *enefits in t%e future @%erefore, an imortant factor in socia.

    e5c%ane t%eory is trust, %ic% resu.ts from mu.ti.e and *eneficia. interactions over

    time 4n.y if t%e tradin artner is trusted, i.. one *e i..in to recirocate t%e

    a*dication of cur-rent *enefits for future *enefits Anot%er imortant asect of socia.

    e5c%ane t%eory is commitment, %ic% is fostered *y trust @%is causa. re.ations%i

    *eteen trust and commitment is *ased on t%e rinci.e of enera.iEed recirocity,

    *ecause commitment entai.s vu.nera*i.ity and arties i.. see on.y trustort%y

    artners

    Socia. e5c%ane t%eoryBs foundationa. remises indicate t%at re.ation-s%is are

    not on.y overned *y contracts, *ut a.so *y norms, %ic% deve.o as a conse=uence of

    reeated interaction and Lincrease t%e efficiency of re.ations%is *ecause *y areein

    to t%e manner in %ic% interactions tae .ace, t%e deree of uncertainty may *e

    reduced As it% trust, norms are ad%ered to *ecause reards are e5ected

    ?%i.e socia. e5c%ane t%eory can *e very usefu. concetua..y, it is main.y

    criticiEed for its .ac of emirica. foundation :actors suc% as commitment and trust

    s%ou.d *e a*.e to su*stitute (at .east in art) contractua. overnance structures, *ut t%is

    cannot *e confirmed emirica..y resuma*.y, t%is is attri*uta*.e to socia. e5c%ane

    t%eoryBs ne.ect of oortunism

    quity Theory

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    >=uity t%eory reresents an e5tension of socia. e5c%ane t%eory *y addin t%e

    asect of fairness ?%i.e t%e concet dates *ac to 3omans, e=uity t%eory as

    rimari.y coined *y Adams At t%at time referred to as Lt%eory of ine=uity, it as

    introduced to e5.ain ae ine=uities @%e *asic assumtion under.yin e=uity t%eory

    is t%at eac% arty in a re.ations%i comares its inut-outut-ratio to t%at of t%e ot%er

    arty Ana.oous to socia. e5c%ane t%eory, socia. as e.. as economic considerations

    are incororated in t%e eva.uation of fairness

    In case t%e ratio is *a.anced, t%e ercetion of *ein fair.y treated is conveyed

    4t%erise, one fee.s unfair.y treated, arousin distress for *ot% t%e over-*enefited and

    t%e under-*enefited arties, %ic% may .ead to emotiona. and *e%aviora.

    conse=uences In order to re-create fairness, arties can c%ane t%eir inuts, adust

    t%eir e5ectations, inf.uence t%e ot%er arty, or terminate t%e re.ations%i

    As in socia. e5c%ane t%eory, t%e inut-outut-ratios of t%e invo.ved arties do

    not %ave to *e in *a.ance at any iven time Instead, arties must trust t%at outcomes

    *e s.it e=uita*.y in t%e .on-run

    ,ommitment Trust Theory

    Moran and 3unt in 188 first introduced commitment trust t%eory in t%eir

    artic.e on successfu. re.ations%i maretin Accordin to t%em, commitment and trust

    function as ey mediatin varia*.es *eteen five antecedents (re.ations%i

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    termination costs, re.ations%i *enefits, s%ared va.ues, and oortunistic *e%avior)

    and five outcomes (ac=uiescence, roensity to .eave, cooeration, functiona. conf.ict,

    and decision-main uncertainty) $y %i%.i%tin commitment and trust, Moran and

    3untBs t%eory is *ased on t%e fundamenta. ideas of socia. e5c%ane t%eory At t%e

    same time, one of t%e maor deficits of socia. e5c%ane t%eory is addressed *y

    a..oin for oortunistic *e%avior

    Considerations *y Moran and 3unt ere surred *y a s%ift in maretin

    researc% and ractice aay from a mere transactiona. focus toards t%e re.ations%i

    maretin aroac%, accordin to %ic% a.. maretin activities are suosed to

    esta*.is%, deve.o, and maintain successfu. re.ationa. e5c%anes ?%i.e Moran and

    3unt ac-no.ede t%at many conte5tua. factors determine t%e success or fai.ure of

    re.ations%i maretin efforts, commitment and trust are seen as ey, *e-cause t%ey

    can esta*.is% re.ationa. overnance norms As suc%, commitment and trust can

    encourae cooerative *e%avior aimed at reservin re.ations%i investments,

    mitiate t%e ris of c%oosin attractive s%ort-term a.ternatives desite of e5ected

    .on-term *enefits it% e5istin e5c%ane artners, and can mae %i%-ris actions

    aear more attractive, *ecause e5c%ane artners are not feared to act

    oortunistica..y L@%erefore, %en *ot% commitment and trust " not ust one or t%e

    ot%er " are resent, t%ey roduce outcomes t%at romote efficiency, roductivity, and

    effectiveness

    The si: key factors that influence customer loyalty

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    According to Peter Clark, co-editor of The Wise Marketer and

    co-author of The Loyalty Guide report series, there are six major

    factors that play key roles in inuencing the loyalty and

    commitment of customers

    Figure 1: Factors that influence customer loyalty

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    R!+R,8 MT8#D#/#06

    #7;ective of the study

    A study on customer .eve. of satisfaction in toards 3 >5ress (I)

    vt td

    @o identify t%e .oya.ty of customer toards 3 >5ress (I) vt

    td

    @o measure t%e secific reasons for satisfaction and dissatisfaction in

    it% 3 >5ress

    @o identify t%e recommendations of 3 >5ress to ot%ers *y

    e5istin .oya. customers

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    !cope of the study

    Scoe of t%e study main.y to no t%e current .eve. of customer

    satisfaction

    Scoe of t%e study main.y to no t%e .oya.ty of t%e customer

    toards t%e comany

    @o ive suestion reardin imrovement of erformance standard

    of t%e Comany

    @o inform t%e manaement a*out current .eve.

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    /imitations of the study

    @ime .imit restricts detai.ed survey or for t%is articu.ar toic of

    researc%

    @%e survey is restricted to t%e customers of 3 >5ress I vt .td

    %o are invo.ved in imorts

    Some customers %ave .ac of time, so t%ey may not communicate

    roer.y

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    Research design

    @%e o*ective of t%e study %as *een ac%ieved *y usin *ot% rimary and

    Secondary ataBs @%e dataBs o*tained for t%e study as rimari.y from fie.d

    investiation carried out amon t%e customers of 3

    !ampling

    Sam.e desin is a definite .an for o*tainin a sam.e from a iven

    ou.ation It refers to t%e tec%ni=ue or t%e rocedure t%e researc%er ou.d adot in

    se.ectin items for sam.es

    Sam.es are studied for t%e ou.ation %o are t%e customers of 3 >5ress

    I vt td 7esearc% desin is needed *ecause it faci.itates t%e smoot% rai.in of t%e

    various researc% oerations t%ere*y main researc% as effective as ossi*.e yie.din

    ma5ima. information it% minima. e5enditure of effort, time and money

    !ample !i

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    Survey researc% as name suests, is distinuis%ed *y t%e facts t%at t%e data

    are co..ected from t%e eo.e %o are t%ou%t to %ave t%e desired information,

    t%rou% =uestionnaire

    Questionnaire as osted over t%e internet and sent to t%e resective

    customers in order to co..ect information re.ated to t%e toic @%e =uestionnaires so

    desined for t%is urose ere structured

    !econdary Data

    Secondary data as co..ected t%rou% comany e*sites and records And

    ana.ysis on various asects %as *een done usin different statistica. tec%ni=ues

    @%e met%ods fo..oed for t%e ana.ysis and interretation of data are+

    'ni variate ercentae Ana.ysis

    ?ei%ted averae met%od

    Univariate Percentage Analysis:

    ercentae refers to a secia. ind of ratio It is used to mae comarison

    *eteen to or more series of data @%ey can *e used to comare t%e re.ative items,

    t%e distri*ution of to or more series of data, since t%e ercentaes reduces every

    t%in to a common *ase and t%ere *y a..o meaninfu. comarisons to *e made 3ere

    on.y one factor is considered

    !4 4: 7>S4!>!@S

    >7C>!@AG> R 5 100

    @4@A 7>S4!>!@S

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    Weighted Average Method:

    @%is met%od is a used %en t%e re.ative imortance of t%e different items is

    not t%e same @%e term ei%ted stands for t%e re.ative imortance of t%e different

    items It is assumed t%at inventory costs s%ou.d *e assined on t%e *asis of averae

    costs of identica. units An averae cost unit is determined *y dividin t%e tota. costs

    of t%e units *y t%e num*er of units

    @%e ei%ted averae met%od is .oica. %en assinin costs to units t%at *ecome

    mi5ed toet%er, t%ere *y main searate identification difficu.t or imossi*.e

    @%e formu.a is+

    T ?U

    U R

    T ?

    ?%ereJ

    U R ?ei%ted Arit%metic mean

    U R :re=uency or no of resonse dents

    W ! Weighted allotted to each factor

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    DATA ANALYSIS & INTERPRETATION

    ,ustomers overall e:perience to accessi7ility and responses of D8/

    representative through Telephone%

    #ptions Respondents Percentage

    >5ce..ent 19 20 D

    Pery Good 19 20 D

    Good #2 0 D

    :air 19 20 D

    oor 0 0 D

    Total ?* ** @

    @a*.e - 1

    Interpretation$

    20 D of t%e customers resonded t%at t%eir overa.. e5erience to

    accessi*i.ity and resonses t%rou% @e.e%one is >5ce..ent !e5t 20 D says it is very

    ood Good *ein aarded *y 0 D of t%e customer :ina. 20 D is not so satisfied so

    t%ey said t%at t%e service is fair

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    Figure > )

    3,hart showing ,ustomers overall e:perience to accessi7ility and responses of

    D8/ representative through Telephone4

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    ,ustomers overall e:perience to accessi7ility and responses of D8/

    representative through >mail%

    #ptions Respondents Percentage

    >5ce..ent 19 20 D

    Pery Good 19 20 D

    Good #2 0 D

    :air 19 20 D

    oor 0 0 D

    Total ?* ** @

    @a*.e - 2

    Interpretation$

    20 D of t%e customers resonded t%at t%eir overa.. e5erience to

    accessi*i.ity and resonses t%rou% >-mai. is >5ce..ent !e5t 20 D says it is very

    ood Good *ein aarded *y 0 D of t%e customer :ina. 20 D is not so satisfied so

    t%ey said t%at t%e service is fair

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    Figure > 5

    3,hart showing ,ustomers overall e:perience to accessi7ility and responses

    of D8/ representative through >mail4

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    ,learance representative a7ility to help customer issue=need

    #ptions Respondents Percentage

    >5ce..ent 16 18 D

    Pery Good 1; 21 D

    Good 22 2< D

    :air 18 2 D

    oor ; 8 D

    Total ?* ** @

    @a*.e - #

    Interpretation$

    V 18 D of t%e customers resonded t%at t%eir overa.. e5erience to a*i.ity

    to %e. reso.ve issue or need is >5ce..ent !e5t 21 D says it is very ood Good *ein

    aarded *y 2< D of t%e customer 2 D is some%at satisfied so t%ey said t%at t%e

    service is fair 8 D is not satisfied it% t%e service

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    Figure > A

    3,hart showing ,learance representative a7ility to help customer issue=need4

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    ,ustomers #verall e:perience with D8/ ,learance Department

    #ptions Respondents Percentage

    >5ce..ent 1; 21D

    Pery Good 16 18D

    Good 1 1

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    Figure > B

    3,hart showing ,ustomers #verall e:perience with D8/ ,learance Department4

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    ,ustomers #verall e:perience with D8/ !hipment Delivery at doorstep

    #ptions Respondents Percentage

    >5ce..ent 8 11D

    Pery Good 26 #1D

    Good 0 60D

    :air 6D

    oor 2 #D

    Total ?* ** @

    @a*.e - 6

    Interpretation$

    11 D of t%e customers resonded t%at t%eir overa.. e5erience it%

    3 c.earance deartment is >5ce..ent !e5t #1 D says it is very ood Good *ein

    aarded *y 60 D of t%e customer 6 D is some%at satisfied so t%ey said t%at t%e

    service is fair # D is not satisfied it% t%e service

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    Figure > C

    3,hart showing ,ustomers #verall e:perience with D8/ !hipment Delivery at

    doorstep4

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    ,ustomer !atisfaction level with D8/ :press I Pvt /td

    #ptions Respondents Percentage

    >5treme.y Satisfied 16 18D

    Satisfied 20 26D!eutra. 22 25treme.y issatisfied 6 9D

    Total ?* ** @

    @a*.e - 9

    Interpretation$

    18 D of t%e customers resonded t%ey are >5treme.y Satisfied it% t%e

    service !e5t 26 D t%ey are satisfied !eutra. is 22 D of t%e customer 2# D is

    some%at satisfied so t%ey said t%at t%e service is fair # D is not satisfied it% t%e

    service

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    Figure > 2

    3,hart showing ,ustomer !atisfaction level with D8/ :press I Pvt /td4

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    ,ustomer Responses or Reasons for satisfaction with D8/ :press I Pvt /td

    ess transit time

    C.ear tracin

    Advance furnis%in of documents

    eein customer fu..y informed

    @ime.y c.earance

    Good S%iment de.ivery at doorste

    Interpretation$

    Parious reasons are iven *y customers for satisfaction .ie .ess transit time,

    C.ear tracin, Advance furnis%in of documents, eein customer fu..y informed,

    @ime.y c.earance, Good S%iment de.ivery at doorste etc

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    ,ustomer Responses or Reasons for Dissatisfaction with D8/ :press I Pvt /td

    4riina. $i.. of >ntry ettin on.y after # days after our fo..o u, t%is s%ou.d

    come a.on it% de.ivery

    :rei%t $i.. received #0 days after de.ivery t%is s%ou.d de.iver it%in 2 %rs,

    so t%at your ayment i.. not *e de.ayed

    @%e currency some times ron.y mention in t%e $/> *efore fi.in it%

    Customs, c%ec t%e invoice or c%ec it% t%e customer - t%is i.. %e.

    avoidin mistae

    In some of t%e instances your resonse is not roer

    Since e5ress service is referred on.y %en t%ere are some urency, t%ou%

    t%e caro reac%es at airort c.earance team taes minimum ;-26days taes for

    customs c.earance

    Commitment not met in severa. cases

    Interpretation$

    Parious reasons are iven *y customers for dissatisfaction @%e comany need

    more focused aroac% for satisfyin t%e customers

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    Recommend D8/ :press to others

    #ptions Respondents Percentage

    Hes 61 9D

    !o 28 #9D

    Total ?* ** @

    @a*.e - ;

    Interpretation$

    9 D of t%e customer resonded in favour of recommendin 3 >5ress to

    ot%ers 4n t%e ot%er %and #9 D of t%e eo.e say !o to recommend 3 >5ress to

    ot%ers

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    Figure > ?

    3,hart showing Recommendation D8/ :press to others4

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    #ver the past years loyalty towards D8/ :press has grown stronger

    #ptions Respondents Percentage

    Hes 66 98D

    !o 26 #1D

    Total ?* ** @

    @a*.e - 5ress

    %as ron stroner 4n t%e ot%er %and #1 D of t%e eo.e say !o t%at .oya.ty toards

    3 >5ress %as not ron stroner

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    D8/ :press 9alues people & Relationships ahead of !hort>term goals

    #ptions Respondents Percentage

    Hes 1 61D

    !o #8 8DTotal ?* ** @

    @a*.e - 8

    Interpretation$

    61 D of t%e customer resonded in favour t%at 3 >5ress Pa.ues eo.e &

    7e.ations%is a%ead of S%ort-term oa.s 4n t%e ot%er %and 8 D of t%e eo.e say !o

    t%at 3 >5ress do not Pa.ues eo.e & 7e.ations%is a%ead of S%ort-term oa.s

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    Figure *

    3,hart showing D8/ :press 9alues people & Relationships ahead of !hort>

    term goals4

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    FI"DI"0!

    20 D of t%e customers resonded t%at t%eir overa.. e5erience to accessi*i.ity

    and resonses t%rou% @e.e%one is >5ce..ent !e5t 20 D says it is very ood

    Good *ein aarded *y 0 D of t%e customer :ina. 20 D is not so satisfied so

    t%ey said t%at t%e service is fair

    20 D of t%e customers resonded t%at t%eir overa.. e5erience to accessi*i.ity

    and resonses t%rou% >-mai. is >5ce..ent !e5t 20 D says it is very ood

    Good *ein aarded *y 0 D of t%e customer :ina. 20 D is not so satisfied so

    t%ey said t%at t%e service is fair

    18 D of t%e customers resonded t%at t%eir overa.. e5erience to a*i.ity to %e.

    reso.ve issue or need is >5ce..ent !e5t 21 D says it is very ood Good *ein

    aarded *y 2< D of t%e customer 2 D is some%at satisfied so t%ey said t%at

    t%e service is fair 8 D is not satisfied it% t%e service

    21 D of t%e customers resonded t%at t%eir overa.. e5erience it% 3

    c.earance deartment is >5ce..ent !e5t 18 D says it is very ood Good *ein

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    aarded *y 1< D of t%e customer #5ce..ent !e5t #1 D says it is very ood Good *ein

    aarded *y 60 D of t%e customer 6 D is some%at satisfied so t%ey said t%at

    t%e service is fair # D is not satisfied it% t%e service

    18 D of t%e customers resonded t%ey are >5treme.y Satisfied it% t%e

    service !e5t 26 D t%ey are satisfied !eutra. is 22 D of t%e customer 2# D is

    some%at satisfied so t%ey said t%at t%e service is fair # D is not satisfied it%

    t%e service

    9 D of t%e customer resonded in favour of recommendin 3 >5ress to

    ot%ers 4n t%e ot%er %and #9 D of t%e eo.e say !o to recommend 3

    >5ress to ot%ers

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    98 D of t%e customer resonded in favour t%at .oya.ty toards 3 >5ress

    %as ron stroner 4n t%e ot%er %and #1 D of t%e eo.e say !o t%at .oya.ty

    toards 3 >5ress %as not ron stroner

    61 D of t%e customer resonded in favour t%at 3 >5ress Pa.ues eo.e &

    7e.ations%is a%ead of S%ort-term oa.s 4n t%e ot%er %and 8 D of t%e eo.e

    say !o t%at 3 >5ress do not Pa.ues eo.e & 7e.ations%is a%ead of

    S%ort-term oa.s

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    !100!TI#"!

    Communicate ?%et%er it is an emai. nes.etter, mont%.y f.ier, a reminder

    card for a tune u, or a %o.iday reetin card, reac% out to your steady

    customers

    Customer Service Go t%e e5tra distance and meet customer needs @rain t%e

    staff to do t%e same Customers remem*er *ein treated e..

    >m.oyee oya.ty oya.ty ors from t%e to don If you are .oya. to your

    em.oyees, t%ey i.. fee. ositive.y a*out t%eir o*s and ass t%at .oya.ty a.on

    to your customers

    >m.oyee @rainin @rain em.oyees in t%e manner t%at you ant t%em to

    interact it% customers >moer em.oyees to mae decisions t%at *enefit

    t%e customer

    Customer Incentives Give customers a reason to return to your *usiness :or

    instance, *ecause c%i.dren outro s%oes =uic.y, t%e oner of a c%i.drenBs

    s%oe store mi%t offer a card t%at maes t%e tent% air of s%oes %a.f rice

    ieise, a dentist may ive a free c.eanin to anyone %o %as seen %im

    reu.ar.y for five years

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    roduct Aareness no %at your steady atrons urc%ase and ee t%ese

    items in stoc Add ot%er roducts and/or services t%at accomany or

    com.iment t%e roducts t%at your reu.ar customers *uy reu.ar.y And mae

    sure t%at your staff understands everyt%in t%ey can a*out your roducts

    7e.ia*i.ity If you say a urc%ase i.. arrive on ?ednesday, de.iver it on

    ?ednesday $e re.ia*.e If somet%in oes ron, .et customers no

    immediate.y and comensate t%em for t%eir inconvenience

    $e :.e5i*.e @ry to so.ve customer ro*.ems or com.aints to t%e *est of your

    a*i.ity >5cuses W suc% as O@%atFs our o.icyO W i.. .ose more customers

    t%en settin t%e store on fire

    eo.e over @ec%no.oy @%e %arder it is for a customer to sea to a %uman

    *ein %en %e or s%e %as a ro*.em, t%e .ess .ie.y it is t%at you i.. see t%at

    customer aain

    no @%eir !ames 7emem*er t%e t%eme son to t%e te.evision s%o Cheers

    Get to no t%e names of reu.ar customers or at .east reconiEe t%eir faces

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    CONCLUSIONS

    In addition to suestions and findins, t%is study a.so rovides severa. scoes

    for furt%er researc%, %ic% i.. *e addressed in t%e fo..oin arara%s+

    (1) ?%i.e t%e customer .oya.ty mode. va.idated in t%is study ossesses ood

    oer for e5.ainin reurc%ase intentions and referra. *e%avior, on.y artia.

    e5.anation of t%e construct of additiona. urc%ase intentions is ac%ieved As

    stated *efore, factors not contained in t%e mode. suc% as strateic outsourcinconsiderations can *e assumed to affect t%e intention of customers to

    outsource additiona. .oistics activities to t%e current.y most imortant S

    :or t%is reason, future studies s%ou.d e5.ore additiona. determinants of t%is

    .oya.ty dimension

    (2) Measurement mode. assessment revea.ed t%at t%e oerationa.iEation of

    fairness in t%is study does not ac%ieve sufficient discriminance from ot%er

    constructs, esecia..y from trust and re.ationa. satisfaction As t%ere is a stron

    t%eoretica. indication t%at fairness is imortant in customer .oya.ty

    considerations, furt%er studies s%ou.d modify fair-nessB measurement mode.,

    e *y more stron.y recurrin to t%e concet of ine=uity

    (#) ?it%in t%is study, four re.ationa. c%aracteristics ere e5amined In addition,

    ana.yses ere conducted for a mu.titude of ot%er continency factors t%at are

    not inc.uded in t%e resent study 4vera.., %oever, no conc.usive

    moderations ere identified !evert%e.ess, it may *e assumed t%at customer

    diversity sti.. %as moderatin effects on t%e formation of customer .oya.ty @%e

    determinants contained in t%is study, %oever, cature rat%er enera.

    eva.uations of re.ations%is *eteen Ss and t%eir customers, %ic% may *e

    too *road to *e su*ect to moderatin effects :or t%is reason it ou.d *e

    sensi*.e to e5amine antecedents of t%e em.oyed determinants, as moderatin

    effects cou.d surface %en t%is .eve. of detai. is added to t%e ana.yses

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    T,$%3 '#$4ally a(out t, CLEARANCE D#art/%t5 Howwould you rat your o!rall "#r$%0

    T,$%3 '#$4ally a(out t, SHIPMENT DELIVERY at your

    door't#5 How would you rat your o!rall "#r$%0

    I% 'al o* 6 to 75 w,r 6 r#r'%t' 8Extremely Dissatisfed9a%d 7 r#r'%t' 8Extremely Satisfed9: How would you rat

    your l!l o* 'at$'*at$o% w$t, DHL E"#r'':

    E/cellent

    0er$ ood

    ood

    airPoor

    E/cellent

    0er$ ood

    ood

    air

    Poor

    1

    2

    '

    )

    3

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    Pla' l$'t to# = ra'o%'5 $%$t$ally (o/$%- a //(r o* DHL E"#r''$% ordr o* $/#orta%0

    Pla' rat your l!l o* a-r/%t w$t, t, *ollow$%- 'tat/%t': I%'al o* 6 to 75 w,r 6 r#r'%t' 8Completely Disagree9 5 =r#r'%t' 8Neutral9 a%d 7 ($%- 8Completely Agree9

    I (l$! t, o/#a%y5 DHL E"#r'' d'r!' /y loyalty0

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