Abstract
Good quality logistic services from the company can make customers feel satisfied and make purchases back to the company. in the form of rice shops will This study aims to look at the effect of logistic service quality on customer retention through customer satisfaction. This study investigates the service quality of logistic providers that are hired by the rice producers in distributing rice to rice retailers. The samples in this study are 36 rice retailers who have used logistic services at least two times. Data obtained from the questionnaire are processed using partial least square (PLS). The results of this study provide evidence that logistic service quality affects customer retention and customer satisfaction. Further results show that dissatisfied customers will significantly reduce customer retention with a statistical value of 2.754. Intervening results in this study indicate that there is an influence between logistic service quality on customer retention through customer satisfaction.
Highlights
The development of the economy and business environment is becoming increasingly competitive so it makes companies want to focus on their main industry, which is producing high quality products that can satisfy their customers
This is the main reason why companies must give their logistic handling to third parties or what is commonly called third-party logistics (3PL) so that they can focus on producing good products that can satisfy their customers
This is in accordance with the results of research conducted by Kilibarda and Andrejic, stating that logistics service quality (LSQ) has a significant relationship with customersatisfaction [5]
Summary
The development of the economy and business environment is becoming increasingly competitive so it makes companies want to focus on their main industry, which is producing high quality products that can satisfy their customers. Logistics activities are focused towards financing efficiency, so that logistics becomes not the only linkage between production and consumption, and a competitive advantage for the company This is the main reason why companies must give their logistic handling to third parties or what is commonly called third-party logistics (3PL) so that they can focus on producing good products that can satisfy their customers. GDP growth for business in the second quarter of 2018 2
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