Logistics service quality satisfaction and impacts on financial performance

Abstract

The purposes of this research are to explore shipper satisfaction about logistics service quality (LSQ) of freight forwarders, to evaluate resource allocation efficiency for LSQ, and to explore the effects of LSQ on financial performance of shippers. A modified SERVQUAL with additional cost dimensions was used to collect data from 237 furniture exporters in Thailand. Descriptive statistics, gap analysis with paired sample t-test, importance-performance analysis (IPA), priority nonconformity index (PNCI) and multiple regression were utilised for data analysis. It was found that there was significant shipper dissatisfaction with overall LSQ, every dimension and indicator. Shippers were dissatisfied most and least about cost and tangibles, respectively. Although the IPA revealed no over performed or underperformed LSQ dimensions, PNCI further suggested transfer of resources from reliability and tangibles to improve cost and assurance. Reliability, tangibles, responsiveness and cost significantly increased sales. However, no LSQ dimension had a significant effect on shipper profitability.