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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$! t, o/#a%y5 DHL E"#r'' d'r!' /y loyalty0
O!r t, #a't yar'5 /y loyalty to t, o/#a%y5 DHL E"#r'' ,a'
-row% 'tro%-r0
DHL E"#r'' Valu' #o#l & Rlat$o%',$#' a,ad o* S,ort.tr/
-oal'0
4ore then 1 $ears
5 to 1 $ears
3 to 5 $ears
' to 3 $ears
6ess then ' $ears
1 2 )' 3
1 2 ' ) 3
1 2 ' ) 3
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7>>> Su--'t$o%' >>> ) $* a%y+
Tanks or your !alua"le eed"ack#
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EIE/I#0R+P86
Eooks$
7esearc% Met%odo.oy " ot%ari
@%e oya.ty Guide reort series - eter C.ar
Maretin Manaement 12 e " %i.i ot.er
.e7sites$
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http://www.google.com/http://www.google.com/