Abstract
A company service’s higher quality is indicated by its service performance’s effectiveness and efficiency. This can increase customers’ satisfaction, thus leads to the increase of company income. This research objective was to know the effects of 5 dimensions constructing service quality, including the effects of service quality on customers’ satisfaction in freight forwarder industry. Current research collected data through purposive sampling, by distributing questionnaire to 86 customers continued by data processing by measuring the gap and tested statistically using SmartPLS program, priority scale mapping using Importance Performance Analysis, and improvement using Failure Mode and Effect Analysis. The first findings obtained from this research was analysis result using IPA discovering 10 indicators which require improvement in which 7 indicators were found the same through GAP measurement. The second finding was the biggest component which needs improvement in freight forwarder service in Indonesia, which is reliability dimension. Therefore, concerns need to be given to these matters so that more accurate and reliable service can be provided.
Highlights
Economy growth affects logistic business development in Indonesia, indicated by the increase of Indonesian people consumption capacity
Based on data issued by World Bank in 2018, Logistics Performance Index (LPI) rank of Indonesia was forty six, in which 33% respondents claimed that freight forwarder competence and service quality level in Indonesia was high or higher (Bank, 2018)
If benchmarks are provided to several world companies as listed in American Customer Satisfaction Index (ACSI) for consumer shipping, for example UPS in 2018, its customers’ satisfaction index was 82% from 100% with company’s baseline target was 82%, freight forwarder service satisfaction in Indonesia still requires much improvement
Summary
Economy growth affects logistic business development in Indonesia, indicated by the increase of Indonesian people consumption capacity. Based on the previous studies, possible reasons of low service quality of freight forwarder companies were the lack of updated information regarding the applicable regulation in export-import process, lack of understanding related to customs tariffs, failure in goods declaration process, and information delivery to customers which do not pay attention to good grammar (Chatapa, 2017). Another reason of why local freight forwarder companies service quality is not as good and professional as foreign freight forwarder company is because local companies only compete by decreasing price without adjusting the standard and do not improve its service quality (Truong, 2016). This research carried out investigation whether the five dimensions, including tangible, empathy, responsiveness, reliability and assurance are components constructing service quality as mentioned in previous studies (Kilibarda et al, 2016) as well as to know the effects of service quality on customers’ satisfaction according to previous studies (Subhashini & Preetha, 2018)
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