A framework for measuring customer loyalty for 3PL industry: a case of evolving market

Abstract

PurposeThis research aims to propose a framework for measuring customer loyalty for third party logistics (3PL) industry by exploring the attributes that are more attractive to customers and ascertain the mechanisms for increasing customer loyalty in 3PL industry.Design/methodology/approachData were collected from one hundred and thirty-three (133) respondents who were employees of different industries that outsource 3PL services. The partial least square structural equation modeling (PLS–SEM) was deployed for analysis.FindingsThe results showed that service quality has a significant positive impact on customer orientation, customer satisfaction and relationship quality. On the other hand, customer orientation has been observed to positively impact customer satisfaction but an insignificant impact on customer loyalty and relationship quality. Customer satisfaction has a significant positive impact on relationship quality but an insignificant impact on customer loyalty. Also, relationship quality has a significant positive impact on customer loyalty.Practical implicationsThe results recommend that 3PL companies' managers focus more on developing quality relationships with their customers, delivering exemplary service quality and offering customer orientation.Originality/valueThis study will help the stakeholders gain much more understanding and insights on how competitive advantage can be achieved and, consequently, help 3PL become the market leaders.