Electronic Logistics Service Quality (e-LSQ): Its Impact on the Customer’s Purchase Satisfaction and Retention
Document Type
Article
Department or Administrative Unit
Finance and Supply Chain Management
Publication Date
2011
Abstract
The Internet retailing industry continues to grow rapidly. Several Internet retailers are, however, struggling to retain customers due to the high level of competition among incumbents. We propose that customer satisfaction with the order fulfillment process is an important determinant of overall customer satisfaction with the retailer, as well as with the extent of customer retention enjoyed by the retailer. This paper offers a new concept for electronic logistics service quality and investigates the relationship between the quality of online fulfillment and the ensuing retention of customers, using archival data on 260 online retailers. The structural equation model results indicate that satisfaction with the physical distribution quality and cost are positively related with customer’s purchase satisfaction and customer retention. Additionally, the results indicate that while purchase satisfaction is a strong indicator of customer retention, underlying drivers of purchase satisfaction do not have nearly the same impact on customer retention directly as they have on purchase satisfaction.
Recommended Citation
Rao, S., Goldsby, T.J., Griffis, S.E. & Iyengar, D. (2011). Electronic Logistics Service Quality (e-LSQ): Its impact on the customer’s purchase satisfaction and retention. Journal of Business Logistics 32(2), 167-179. DOI: 10.1111/j.2158-1592.2011.01014.x
Journal
Journal of Business Logistics
Rights
© Council of Supply Chain Management Professionals
Comments
This article was originally published in Journal of Business Logistics. The full-text article from the publisher can be found here.
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