Service Customer Loyalty Research Articles

Robustness of the Logistic Strategy Framework in Post-COVID-19 Environment: An Empirical Study of Indian Enterprises

Abstract Although testing the Bowersox and Daugherty (B&D) (1987) typology in international markets have provided valuable insights into the model’s relevance in logistics, literature has not re-examined the B&D model’s effectiveness during the post-pandemic business environments. The current research examines the robustness of the B&D logistics strategy framework during the post-COVID-19 Indian market environment. Using a structured questionnaire, the data for this study (n=372) was collected from the executives whose main job responsibility was related to distribution/logistics decisions in micro and small-sized (MSEs) manufacturers in India. Based on the conceptual relationships identified in the B&D typology, we used structural equation modeling to test the study hypotheses. Results show that overall logistics strategy comprised of three strategic priorities positively influences firms’ competitive responsiveness through the logistics coordination effectiveness and customer service commitment route, supporting the robustness of the model in the post COVID-19 environment. Effective logistics strategy does not occur in isolation. Emphasis in coordination and customer service must occur for a well thought out logistics strategy (process, market, and information orientation) to improve organizational competitive responsiveness in the context of Indian MSEs. This study contributes to the literature by providing empirical support for the validity and the robustness of the B&D logistics strategy model during the post COVID-19 environment in an emerging market.

Pengaruh Kualitas Pelayanan dan Kepuasan Pelanggan terhadap Loyalitas Pelanggan pada Jasa Service Motor Edie Arta Singaraja

This study aims to examine the effect of service quality and customer satisfaction on customer loyalty. The research design used in this research is quantitative. The subjects in this study were service quality and customer satisfaction on customer loyalty in Edie Arta Singaraja's motorcycle service services and the objects in this study were service users at Edie Arta Singaraja. Data collected by questionnaire and literature study were analyzed by multiple linear regression analysis. The results showed that (1) service quality and customer satisfaction have a significant effect on customer loyalty in services at Edie Arta Singaraja. (2) service quality has a positive and significant effect on customer loyalty in services at Edie Arta Singaraja. (3) customer satisfaction has a positive and significant effect on customer loyalty in services at Edie Arta Singaraja.

Re-evaluation of logistics strategy during COVID-19 pandemic environment: reduced customer service commitment

ABSTRACT The Bowersox and Daugherty’s (1987) typology has been tested in international markets, providing valuable insights into its relevance. However, the literature has yet to examine its effectiveness in business environments affected by pandemics. The purpose of this study is to empirically assess the resilience of the logistics strategy framework in an emerging market during the COVID-19 pandemic. To measure the three dimensions of the overall logistics strategy, as well as mediator variables such as logistics integration and customer service commitment, we collected 326 responses from logistics managers in Turkey. Using a structural equation model (SEM), we found that the three dimensions of the overall logistics strategy remained robust during the pandemic, thus supporting the durability of the Bowersox and Daugherty’s (1987) framework. However, the customer service commitment was found to have a statistically insignificant role in mitigating the overall logistics strategy and the firm’s competitive responsiveness.

The effect of service quality and customer satisfaction toward customer loyalty in service industry

The purpose of this study is to determine the impact of service quality and customer satisfaction on customer loyalty of the laundry service industry in Indonesia. The research methods used were quantitative, and analyzed using multiple linear regression methods. Data were obtained by distributing questionnaires to 100 respondents in Jakarta from February to March 2020. The selection of respondents used a purposive sampling technique, with the criteria of using laundry services in the past. Findings from this research revealed a significant positive effect of service quality toward customer satisfaction; and both service quality and customer satisfaction also have significant and positive effects towards customer loyalty in laundry services in Indonesia. From this research, it is expected that the entrepreneur in the laundry service industry would better understand the importance of service quality, customer satisfaction and its correlation to customer loyalty in order to improve firm sales performance.

Service Customer Loyalty: An Evaluation Based on Loyalty Factors

This study sheds light on customer loyalty based on three groups of factors (customer, service provider, and environment). Noting the diversity of the effects of customer loyalty factors, this research investigates the impact of every factor upon customer loyalty. This paper provides an innovative insight into how a variety of customer loyalty factors might be combined into a single measure of customer loyalty. Finally, this study examines phases of customer loyalty and identifies the factors that prevent a peak of customer loyalty. The factors determining customer loyalty explain why customers move across different loyalty phases over time. The results of the empirical testing confirmed the practical applicability of the suggested approach for evaluating customer loyalty based on these factors. An innovative approach to the evaluation of customer loyalty is essential for marketers because it will help them to evaluate loyalty in cases where data about customer behavior are not collected. The findings of the research contribute to a better understanding of which factors are a viable basis for increasing customer loyalty, specifically in the catering and beauty markets, and offer guidance to marketing managers on how to shift customers to more desirable loyalty phases.

Modelling determinants of customer loyalty in services sector across different cultural contexts

Research on customer loyalty in services has regained interest among academics and practitioners alike because of economic value that international service providers can gain across different cultures due to recent developments in communications technology. International service providers have a wider variety of communication channels to use to approach their customers, but they need a better understanding of how their customer loyalty is formed across different cultures. In this conceptual paper, the authors aim to model determinants of customer loyalty and put forward propositions to be empirically tested in further studies. The originality of the paper manifests itself in the theoretical model proposed, which clearly delineates determinants of customer loyalty (i.e., marketing communication channels, perceived service quality and customer satisfaction) and emphasises the importance of strategic decisions about communication channel options to match customer preferences to predict combined effects of customer loyalty across different cultural contexts. DOI: http://dx.doi.org/10.5755/j01.ee.29.5.17386

Role of logistics strategy, coordination and customer service commitment on Chinese manufacturing firm competitiveness

Purpose The purpose of this paper is to assess the robustness of the three (Bowersox and Daugherty, 1987) dimensions (process, market and information strategies) of logistics strategy in a Chinese manufacturing environment. In addition, the impact of the three dimensions, coordination and customer service on the organizational competitiveness of Chinese manufacturers firms is explored. Design/methodology/approach The authors conducted an online survey hosted at Sojump.com and disseminated to members of a manufacturing trade association. A total of 513 completed responses were generated. Confirmatory factor analysis (CFA) and structural equation model (SEM) were used to test the hypothesized relationships in the conceptual model. Findings The findings suggest that the three dimensions of the Bowersox and Daugherty (1987) were relevant to the Chinese manufacturing environment. The authors also found that the overall logistics strategy measured by the three dimensions as well as coordination and customer service effectiveness positively influenced Chinese manufacturing firms’ competiveness. Research limitations/implications Further research into logistics and supply chain management may benefit from expanding the understanding to include antecedents and moderating factors (e.g. competition, market turbulence and differences in business environment) into the model. Future studies on cross-cultural logistics/supply chain management logistics may benefit from the application of strategy-structure-process (SSP) approaches similar to those discussed in this manuscript. Practical implications This study attempted to provide a robust conceptual framework to increase the understanding of the role of logistics/supply chain management strategy and provide insights to managers seeking to improve firm competitiveness. An essential implication of the conceptual model presented in this manuscript is the dynamics of logistics strategy as a competitive tool. Social implications The findings provide an understanding of how business and manufacturing are operating in various locations in China with opportunities for employment and socio-economic gain among the population of these geographic locations. Having employment can provide a better quality of life and assist the community in developing its opportunities for other groups. Originality/value As the current Chinese administration seeks to achieve its goal of generating higher value-added production through its “Made in China 2025” initiative, the results the authors represent are quite timely and insightful. Examining manufacturing firms’ logistics strategies (i.e., OLS), coordination and customer service could provide state planners (SOEs) and/or privately owned Chinese manufacturers insights on how to move closer towards their aforementioned goal and achieve global competitiveness.

An empirically derived framework of logistics management strategy

The purpose of this paper is to present an empirically derived framework for Logistics Management and discuss how it integrates organization’s short-term objectives with the need to respond to the complex external environment. Organizational theory, strategic planning and logistics management literature were reviewed carefully in identifying the conceptual support for the derived framework of logistics management and organizational competitiveness. The proposed generalized framework demonstrates that Logistics Management Strategy has the strongest positive effect on Organizational Competitiveness when it is mediated by Logistics Coordination Effectiveness and Customer Service Commitment. Overall Logistics Strategy is a necessary, but not sufficient, condition for increased organizational competitiveness. If the Overall Logistics Strategy is accompanied by (a) effective logistics coordination and (b) customer service commitment then organization competitiveness is likely to be greater. This conceptual study contributes to the field by presenting a generalized framework to improve researcher and practitioner understanding of the role Logistics Management in Organizational Competitiveness. This study integrates previous research and thought domains to develop a generalized framework that guides our understanding of the role of Logistics Management and its consequences on Organizational Competitiveness.

An empirical assessment of logistics/supply chain management in two Latin American countries

The Bowersox Daugherty (1987) logistics strategy typology (Process Strategy, Market Strategy, and Information Strategy) is an important conceptual framework for studying logistics/supply chain management strategy and its role on logistics/supply chain management outcomes. The purpose of this research is to empirically apply the typology in Peru and compare the findings with the previous research conducted in Guatemala. The three Bowersox/Daugherty dimensions are used to define the construct Overall Logistic Strategy (OLS), and then, the OLS was used to measure Organizational Competitiveness (COMP) through two intervening variables LCE (Logistics Coordination Effectiveness) and CSC (Customer Service Commitment). The results indicate that generally the logistics strategy in Peru is fundamentally similar to Guatemala’s. In other words, the direction of the relationships among the conceptualized constructs tested in the SEM model was significant and explained a sizable variation in COMP in both countries. This provided additional support for the robustness of the structural model in different cultural environments. However, some differences are apparent. First, the importance of the three independent variables and three dependent variables appear to be greater to the Peruvian respondents than Guatemalan respondents. Second, on closer inspection Peruvian logistics data indicates relatively greater emphasis on information, coordination, customer service, and relatively less emphasis on cost efficiency, than Guatemalan managers. Managerial insights and suggestions for future research and discussed.

An empirical cross cultural assessment of a logistics/supply chain management typology

This manuscript compares the three dimensions (Process Strategy, Market Strategy, and Information Strategy) of the Bowersox Daugherty (1987) logistics strategy typology among five disparate countries by integrating the findings of previous empirical research. The appropriateness of the three Bowersox/Daugherty dimensions when combined into the construct Overall Logistic Strategy (OLS) are assessed. The role of OLS impact on Organizational Competitiveness (COMP) through two intervening variables LCE (Logistics Coordination Effectiveness) and CSC (Customer Service Commitment) is evaluated. The findings indicate that OLS is an appropriate descriptor of logistics/ supply chain management in a wide range of cultures and that the integration of OLS, LCE, and CSC is useful in explaining COMP across cultures. The findings of this research are discussed in the context of earlier perspectives on organizational strategy and overall logistics strategy.

An empirical study comparing Guatemalan and United States logistics strategies

PurposeThis manuscript aims to empirically examine logistics strategy in Guatemalan firms and compare the findings to recent research into logistics strategy research of USA firms.Design/methodology/approachData on logistics strategies and logistics outcomes were gathered from Guatemalan logistics managers and then compared with empirical data gathered from US logistics managers.FindingsWhile the fundamentals of logistics strategy in Guatemala were similar to those of USA firms, it was found that Guatemalan logistics managers place somewhat less importance on process strategy but greater importance on market strategy and information strategy to achieve logistics coordination effectiveness, customer service commitment, and organization competitive responsiveness. Possible reasons for these differences include culture and size of the economy.Practical implicationsThe results suggest that logistics strategies in different countries may be affected by differences in culture, the size of an economy, and possibly other considerations.Originality/valueThese findings should be considered as a point of departure for those conducting research into cross‐cultural logistics and supply chain management strategies.

Cross-cultural validation of the factorial structure of a logistics strategy model: A three-country study

In 2011, McGinnis, Kohn, and Kara reported the effects of overall logisties strategy (OLS) on logistics coordination effectiveness, customer service effectiveness, and organizational competitive responsiveness. This manuscript empirically compares the three dimensions of the Bowersox Daugherty typology to logisties strategies among U.S., Turkish, and Guatemalan companies. US, Turkish, and Guatemalan subjects (logistics managers) were chosen to test the underlying factor structure and measurement equivalences of the scales used. Using confirmatory factor analysis (CFA), findings indicate that the three dimensions of the Overall Logistics Strategy (OLS) - Process Strategy, Market Strategy, and Information Strategy - hold in all three country environments studied. However, structural equation modeling shows nonequivalent relationships between OLS and independent variables; logistics coordination effectiveness, customer service commitment, and organizational competitiveness for one of the three countries. We evaluate these findings in light of recent research into logistics strategy research on U.S. firms. Insights for those interested in comparative logistics strategies are provided.

A study of logistics strategies in small versus large U.S. manufacturing firms

The research reported in this manuscript empirically compares the similarities and differences of logistics strategies for small and large manufacturing firms. The hypotheses focus on whether there are significant differences between logistics strategies of small and large manufacturing firms and whether logistics strategy outcomes differ. The findings indicate that there are many similarities but differences do exist. The results identify dimensions of logistics strategy and assess their impact on logistics coordination effectiveness, customer service commitment, and company/division competitive responsiveness.

Strengthening Customer Loyalty through Intimacy and Passion: Roles of Customer–Firm Affection and Customer–Staff Relationships in Services

This study extends the existing satisfaction–trust–loyalty paradigm to investigate how customers’ affectionate ties with firms (customer–firm affection)—in particular, the components of intimacy and passion—affect customer loyalty in services. In a bilevel model, the authors consider customer–staff and customer–firm interactions in parallel. Through a netnography study and survey research in two service contexts, they confirm (1) the salience of intimacy and passion as two underrecognized components of customer–firm affection that influence customer loyalty, (2) the complementary and mediating role of customer–firm affection in strengthening customer loyalty, (3) significant affect transfers from the customer–staff to the customer–firm level, and (4) the dilemma that emerges when customer–staff relationships are too close. The findings provide several implications for researchers and managers regarding how intimacy and passion can enrich customer service interactions and how to manage customer–staff relationships properly.

The changing role of paraprofessionals in the knowledge economy

The advances in Internet, information and communication technologies have become the catalyst for the creation of the knowledge economy. The knowledge economy has brought about a whole range of opportunities and excitement and the changing roles of information professionals has been a result of these inevitable forces. In this study, we examine the changing roles of paraprofessionals in the knowledge economy and how that has impacted on traditional library services in the Singapore National Reference Library. The study assessed the competencies of paraprofessionals in their new role of providing reference services and meeting the changing needs of the library users. It also examined paraprofessional’s perceptions of the information service and factors affecting their roles and competency. The study showed that for paraprofessionals to be able to deliver quality reference service, a continuous training in areas such as the use of electronic sources, reference interview and search skills is needed as well as a change of mindset to re-instill the customer service commitment among these para-professionals.

Customer loyalty in extended service settings

In research on customer loyalty in services, satisfaction has often been mentioned as an important determinant. However, empirical evidence concerning the relationship between loyalty and satisfaction has remained equivocal. This may be even more so for services that are delivered over an extended period of time in which consumers actively take part. We propose that for the extended service experience consumers are motivated by the realisation of values and that attainment of these values affects patronage decisions. Moreover, as the service delivery process is extensive we argue that consumer mood during the service delivery is another important factor that may have an impact on loyalty deliberations. Therefore, in this paper we examine the simultaneous effect of satisfaction, value attainment and positive mood in an extended service setting. The results reveal that the relationship between satisfaction and loyalty with respect to extended services is moderated by value attainment and positive mood. More specifically, the satisfaction‐loyalty association is strongest when consumers perceive that the service does not help them in the attainment of instrumental values and when low positive moods are experienced. In contrast, the relationship between satisfaction and loyalty is weakest when the service helps consumers in attaining their values and when they experience a positive mood. This signifies that value attainment and positive mood do indeed play an additional role in explaining customer loyalty. An important implication is that value attainment and positive mood may function as a buffer for diminishing loyalty as a result of lower levels of service satisfaction.