Effects of Parcel Delivery Service on Customer Satisfaction in the Saudi Arabian Logistics Industry: Does the National Culture Make a Difference?

Abstract

Background: The logistics industry is keen to meet customer expectations, which in turn supports trade by enhancing business competitiveness and promoting economic development. Logistics companies realized that fulfillment of customer needs has a significant effect on their business survival, their sales and ultimately their profits. This research analyzes the variables that influence customer satisfaction with parcel delivery services in the Kingdom of Saudi Arabia (KSA), particularly the SERVQUAL dimensions: tangibility, reliability, responsiveness, assurance, and empathy. The research also examined whether national culture affects customer perceptions of parcel delivery services in KSA or not. Methods: The research collected data using a self-administered survey, which was directed at a sample of customers in the KSA, who had recent experience with parcel delivery services. Results: The results of statistical analysis showed that the best predicators of customer satisfaction are reliability, followed by the dimensions of empathy, then tangibility and finally responsiveness. In addition, the results showed significant differences in customers’ overall satisfaction between Saudis and non-Saudis. Saudis were more satisfied with the service than non-Saudis were. Conclusions: This research showed the key role of national culture in perceiving parcel delivery service quality in KSA. The findings provide important messages to the administrators of the logistics services in KSA, which have become crucial for the Saudi Vision 2030. They need to customize their service according to customer needs and provide regular training for their staff to be supportive, reliable and have the credibility to deliver services as promised.