Ascertaining the effects of service quality on customer loyalty in the context of ocean freight forwarders: An integration of structural equation modeling and network data envelopment analysis

Abstract

In this study, a model was established using structural equation modeling (SEM) to ascertain the average impact of service quality on the loyalty of ocean freight forwarder (OFF) customers. The results reveal that the average impact of service quality is conveyed through the relationship of trust and customer satisfaction to customer loyalty, but this impact is observed on an individual level. To deal with this issue, a network data envelopment analysis (NDEA) model based on SEM was proposed. The results demonstrate that, in terms of service quality, small business customers have higher requirements for the professionalism of OFF business personnel, cargo damage claim handling procedures, and booking convenience, while large business customers are more concerned with the punctuality and accuracy of container pickup and delivery. The results of our empirical analysis also indicate that the level of loyalty that large business customers are likely to develop is quite high. The large gap between the current and expected levels of customer loyalty implies that OFFs should work harder to increase the loyalty of their large business customers.