83 HỘI THẢO KHOA HỌC QUỐC GIA VỀ LOGISTICS VÀ QUẢN LÝ CHUỖI CUNG ỨNG VIỆT NAM LẦN THỨ 4 (CLSCM-2024) LOGISTICS SERVICE QUALITY AND ITS IMPACT ON CUSTOMER SATISFACTION AND LOYALTY IN ONLINE SHOPPING: A STUDY OF GENERATION Z IN HO CHI MINH CITY CHẤT LƯỢNG DỊCH VỤ LOGISTICS VÀ TÁC ĐỘNG CỦA NÓ ĐẾN SỰ HÀI LÒNG VÀ LÒNG TRUNG THÀNH CỦA KHÁCH HÀNG TRONG MUA SẮM TRỰC TUYẾN: NGHIÊN CỨU VỀ THẾ HỆ Z TẠI THÀNH PHỐ HỒ CHÍ MINH PHẠM NGÔ HOÀNG LY, HOÀNG THỊ QUẾ HƯƠNG* Khoa Kinh tế đối ngoại, Trường Đại học Kinh tế - Luật, Đại học Quốc gia TP. Hồ Chí Minh *Email liên hệ:
[email protected] Abstract This study aims to analyse the relationship among the logistics service quality (LSQ) customer satisfaction and loyalty of Generation Z in online shopping in Ho Chi Minh City, Vietnam. The SERVQUAL and Expectancy Disconfirmation Theory were used to test its efficiency between 8 components of LSQ which are personnel contact quality, order availability, order information, order procedure, order accuracy, order condition, order quality, timeliness and order discrepancy handling and customer satisfaction. The relationship between satisfaction and loyalty was also tested. The data was collected from Gen Z, who live in Ho Chi Minh City, and 334 respondents were analysed. SmartPLS 4.0 was used for data analysis The findings support the logistics service quality scale. It also indicated customer satisfaction affects loyalty and the relationship between 8 components of LSQ and customer loyalty was moderated by satisfaction. Regarding managerial implications, this study proposed some recommendations for third-party logistics companies to improve service quality as well as increase customer satisfaction. Keywords: Logistics service quality, Customer satisfaction, Loyalty, Online shopping, E- commerce, B2C. Tóm tắt Nghiên cứu này nhằm mục đích phân tích mối quan hệ giữa chất lượng dịch vụ logistics và sự hài lòng của khách hàng và lòng trung thành của Thế hệ Z trong mua sắm trực tuyến tại Thành phố Hồ Chí Minh, Việt Nam. Lý thuyết SERVQUAL và Lý thuyết xác nhận kỳ vọng đã được sử dụng để kiểm tra hiệu quả của nó giữa 8 thành phần của chất lượng dịch vụ logistics (chất lượng liên lạc của nhân viên, tính khả dụng của đơn hàng, thông tin đơn hàng, quy trình đặt hàng, độ chính xác của đơn hàng, tình trạng đơn hàng, chất lượng đơn hàng, tính kịp thời và xử lý sai lệch đơn hàng) với sự hài lòng của khách hàng. Mối quan hệ giữa sự hài lòng và lòng trung thành cũng đã được kiểm tra. Dữ liệu được thu thập từ thế hệ Z sống tại Thành phố Hồ Chí Minh và 334 câu trả lời đã được phân tích. SmartPLS 4.0 đã được sử dụng để phân tích dữ liệu. Các phát hiện ủng hộ thang đo chất lượng dịch vụ logistics. Nghiên cứu cũng chỉ ra rằng sự hài lòng của khách hàng ảnh hưởng đến lòng trung thành và mối quan hệ giữa 8 thành phần của chất lượng dịch vụ logistics và lòng trung thành của khách hàng được điều chỉnh bởi sự hài lòng. Về hàm ý quản lý, nghiên cứu này đề xuất một số khuyến nghị cho các công ty logistics để cải thiện chất lượng dịch vụ cũng như tăng sự hài lòng của khách hàng. Từ khóa: Chất lượng dịch vụ logistics, sự hài long khách hàng, lòng trung thành, mua sắm trực tuyến, thương mại điện tử, B2C. 1. Introduction E-commerce growth has outpaced research on Logistics Service Quality (LSQ) in business-to- consumer (B2C) settings. Studies on B2C LSQ lag behind those in business-to-business (B2B) contexts (Jain et al., 2021; Kilibarda et al., 2020; Sorkun, 2019; Sorkun et al., 2020). This gap stems from LSQ's B2B origins (Mentzer et al., 1999). However, B2C e- commerce expansion drives businesses to meet rising customer expectations (Jindal et al., 2021; Mentzer et al., 1999, 2001). Quality logistics are crucial for consumer experience and satisfaction (Murfield et al., 2017a). Mentzer et al. (1999) introduced LSQ to
84 HỘI THẢO KHOA HỌC QUỐC GIA VỀ LOGISTICS VÀ QUẢN LÝ CHUỖI CUNG ỨNG VIỆT NAM LẦN THỨ 4 (CLSCM-2024) address Physical Distribution Service Quality (PDSQ) limitations. PDSQ focused on order accuracy, condition, and timeliness, missing broader service aspects. LSQ added dimensions like ordering procedures, order quality, and personnel contact quality. Initially developed for B2B scenarios, both Physical Distribution Service Quality (PDSQ) and LSQ frameworks now require adaptation to meet the unique demands of B2C e-commerce. Scholars have since expanded on Mentzer et al.'s (1999) work, adding dimensions to improve LSQ scale validity. The LSQ scale's flexibility allows for context-specific modifications, enabling its application across different e-commerce segments and geographical markets. Yet, few studies have used this scale to assess Vietnamese logistics. Research shows LSQ positively influences customer behaviours like loyalty and repurchase intentions. However, the underlying mechanisms need more exploration. This gap allows us to study how customer satisfaction mediates LSQ’s impact on these outcomes in B2C e-commerce. Focusing on satisfaction is crucial in Vietnam’s e-commerce market, where understanding customers and building trust drive business growth. The main objective of this study is to evaluate the impact of logistics service quality on customer satisfaction and loyalty towards logistics service providers in the context of online shopping, mediated by satisfaction. This research focuses on logistics service providers, specifically their last-mile delivery services, rather than e-commerce platforms in general. It aims to propose actionable steps for Vietnamese logistics providers to enhance service quality and gain a competitive edge. 2. Literature Review 2.1. B2C e-commerce logistics in Vietnam Online shopping involves indirect transactions between sellers and buyers. They negotiate and complete sales through communication media like chat, SMS, phone, and websites (Armstrong et al., 2014). These transactions are typically non-cash. After an agreement, the seller requests payment before shipping goods to the buyer (Pereira & Tam, 2021). Logistics plays a crucial role in e-commerce, facilitating transactions across B2B, B2C, and C2C interactions. E-commerce logistics companies manage goods transportation, warehousing, and delivery through various channels, adapting to digital commerce trends (Yu et al., 2017). Vietnam's e-commerce logistics sector is developing, facing challenges like fragmented supply chain processes (Nguyen et al., 2018). Third-party logistics (3PL) providers offer domestic and international services. Key domestic 3PL players in Vietnam include VN Post, Viettel Post, Giao Hang Nhanh and Giao Hang Tiet Kiem. Local Vietnamese firms, despite comprising 90% of logistics enterprises, hold only 35% market share. Foreign companies like DHL and UPS dominate the remainder (Vietnam E- commerce Association, 2022). This situation highlights the need for a model to assess customer loyalty regarding 3PL service quality in Vietnam. This study aims to evaluate logistics service quality in Ho Chi Minh City and its impact on customer satisfaction. It will randomly select enterprises to provide feedback on their 3PL providers' performance. 2.2. Expectancy Disconfirmation Theory This study uses Expectation Disconfirmation Theory (EDT) to examine customer satisfaction and behaviour after logistics disruptions. EDT suggests satisfaction results from matching customer expectations with actual experiences (Hossain et al., 2022). When service exceeds expectations, positive disconfirmation leads to satisfaction. Conversely, negative disconfirmation causes dissatisfaction (Oliver & Desarbo, 1988). EDT applies well to logistics disruptions, where retailers fail to meet promised service levels. These disruptions create negative disconfirmation, leading to customer dissatisfaction (Gawor & Hoberg, 2019). Research shows logistics disruptions can reduce satisfaction, future purchases, and referrals while increasing anxiety and switching behaviour (Gawor & Hoberg, 2019; Nguyen et al., 2018). Therefore, EDT offers a solid framework for studying customer reactions to logistics disruptions and their impact on LSQ satisfaction and future purchase behaviour. 2.3. Customer’s satisfaction in online shopping Customer satisfaction is an emotional response to product or service use, reflecting met expectations and needs (Rita et al., 2019). It stems from comparing perceived performance with expectations. If performance falls short, dissatisfaction occurs (Armstrong et al., 2014). This highlights the crucial role of satisfaction in company survival amid competition. Rita et al. (2019) established a link
85 HỘI THẢO KHOA HỌC QUỐC GIA VỀ LOGISTICS VÀ QUẢN LÝ CHUỖI CUNG ỨNG VIỆT NAM LẦN THỨ 4 (CLSCM-2024) between e-satisfaction and e-loyalty. They defined e- satisfaction as customer contentment with previous e- commerce purchase experiences. Without customer satisfaction, companies struggle to compete effectively. 2.4. Logistics service quality and SERVQUAL dimensions LSQ has evolved from a narrow focus to a broader, customer-centric approach. Mentzer et al. (1999) initially defined LSQ using objective components: availability, timeliness, and quality. This aligned with Bienstock et al. (2008) PDSQ model. A shift occurred towards understanding LSQ from the customer's perspective. Researchers argued for a model including both objective characteristics and customer perceptions. This led to distinguishing between technical quality (outcomes) and functional quality (delivery process) (Mentzer et al., 2001) Current LSQ literature lacks focus on end- customers, especially in Vietnam. Based on various approaches, the authors removed order release quantities and order quality dimensions (B2B- focused) and added order availability for B2C e- commerce. This adaptation is explained in the hypothesis development. 2.5. Personnel contact quality and satisfaction Personnel Contact Quality (PCQ) measures how customers view their interactions with logistics staff (Mentzer et al., 2001). It includes key traits like experience, empathy and proactive problem-solving during delivery. These personal exchanges greatly affect customer views on service quality. Notably, this perception links more to the service process than the final outcome (Prentice et al., 2020) Prentice et al. (2020) note that quality perceptions often form during service delivery interactions. Staff who deeply understand clients can better tailor services to meet expectations. Thus, PCQ is crucial in employee-customer relations (Wirtz & Zeithaml, 2018), especially when placing orders (Mentzer et al., 2001). H1. Personnel contact quality postiviely influences customer satisfaction. 2.6. Information quality and satisfaction Information quality reflects customers' views on the range of products or services offered by providers (Mentzer et al., 1999, 2001). Customers often find this info in company catalogues. Good quality information helps customers make informed decisions. Modern logistics information systems shape customer perceptions of service quality. These systems involve internal and external information sharing. Internal info improves order timeliness and accuracy. External sharing allows real-time exchanges with customers. This system helps bridge the gap between customer expectations and actual experiences (Mentzer et al., 1999). H2. Information quality positively influences customer satisfaction. 2.7. Ordering procedure and satisfaction Ordering procedure refers to the supplier's ordering process efficiency (Mentzer et al., 1999). Customers mainly focus on effectiveness, flexibility, and ease of use when placing orders (Mentzer et al., 2001). The ordering process significantly affects perceptions of logistics service quality (Sürücü & Özispa, 2017). Thai (2013) highlighted order placement convenience as key to logistics service quality. Soh et al. (2015) linked it to customer satisfaction in 3PL contexts, calling it part of "functional quality." H3. Ordering procedure positively influences customer satisfaction. 2.8. Order availability and satisfaction Availability refers to product stock levels in e- retail stores, including backhand and warehouse inventory. It impacts sales, customer satisfaction, and purchase intentions (Rashid & Rasheed, 2024), while enhancing store value. Effective management ensures timely delivery (Gawor & Hoberg, 2019), on-shelf product availability, and efficient reverse logistics (Govindan & Bouzon, 2018). Availability issues often stem from replenishment problems, organizational challenges, and IT-related issues (Buldeo Rai et al., 2019). While existing research addresses these concerns, the evolving e-commerce landscape presents new challenges and research opportunities. H4. Order availability positively influences customer satisfaction. 2.9. Order accuracy and satisfaction Order accuracy measures how well shipments match customers' orders on arrival (Bienstock et al., 1997; Mentzer et al., 1999, 2001). It involves delivering the correct items in the right quantities without substitutions. Logistics providers must fully understand and execute customer requests (Jang et al., 2014). Error tolerance may vary by location, affecting satisfaction differently (Mentzer et al., 2004). Studies
86 HỘI THẢO KHOA HỌC QUỐC GIA VỀ LOGISTICS VÀ QUẢN LÝ CHUỖI CUNG ỨNG VIỆT NAM LẦN THỨ 4 (CLSCM-2024) across industries show a positive link between order accuracy and customer satisfaction (Chaisaengduean, 2019). Soh et al. (2015) found it crucial in industrial purchasing for 3PL companies. H5. Order accuracy positively influences customer satisfaction. 2.10. Order condition and satisfaction Order condition refers to product damage levels during transport (Bienstock et al., 1997; Mentzer et al., 1999, 2001). Customers expect to receive undamaged, complete orders. Improper securing can lead to damage during transit. Damaged goods may prompt customers to switch suppliers (Abror et al., 2019). Unusable items require repair processes with suppliers or sellers (Mentzer et al., 2001). Previous studies consider order conditions a key logistics service quality factor. Sürücü & Özispa (2017) linked it to customer satisfaction in e-commerce. Soh et al. (2015) confirmed its importance in 3PL contexts. H6. Order condition positively influences customer satisfaction. 2.11. Timeliness and satisfaction Timeliness refers to on-time order delivery to customers. It is closely related to "lead time," a key logistics concept that measures the duration between order placement and receipt (Mentzer et al., 2001). Transportation and back-order times can affect delivery speed (Bienstock et al., 1997; Mentzer et al., 1999). Researchers have long recognized timeliness as crucial in evaluating logistics services. Time utility is as significant as place utility in shaping perceptions of logistics service quality. Timeliness strongly influences customer satisfaction. (Bienstock et al., 1997; Mentzer et al., 1999, 2001). Recent studies confirm timeliness's importance in logistics (Murfield et al., 2017b; Uvet et al., 2024), particularly in 3PL contexts (Soh et al., 2015). H7. Timeliness positively influences customer satisfaction. 2.12. Discrepancy handling and satisfaction Order discrepancy handling refers to a 3PL business's ability to address order differences after boarding (Bienstock et al., 2008; Zhang & Okoroafo, 2015). How well logistics providers resolve issues like incorrect items or poor quality significantly affects customers' perception of service quality(Mentzer et al., 2004; Zhang & Okoroafo, 2015). Customers expect 3PL suppliers to correct inaccurate, damaged, or low-quality orders. Given the importance of resolving delivery conflicts, it's crucial to examine how order discrepancy handling impacts customer satisfaction, building on previous research (Soh et al., 2015; Uvet, 2020). H8. Order discrepancy handling positively influences customer satisfaction. 2.13. Customer satisfaction and customer loyalty Customer loyalty, or a buyer's intention to repurchase, is a direct result of satisfaction. Loyalty means a customer repeatedly buys from a provider, has a positive attitude towards them, and considers only this provider when needing the service (Bi, 2019). It includes the willingness to pay higher prices, continue patronage, and allow time for problem resolution (Uvet et al., 2024b). The satisfaction- loyalty link has evolved over time (Lam & Shankar, 2014). Satisfied customers are more likely to repurchase and spread positive word-of-mouth, boosting sales and market share (Chiou & Droge, 2006). Higher satisfaction levels lead to increased loyalty and repurchase intention (Hoq et al., 2010). Eriksson & Löfmarck Vaghult (2000) found satisfied customers maintain provider relationships. In logistics, research shows satisfaction directly and positively influences loyalty (Lam & Shankar, 2014). This is especially true in 3PL contexts (Soh et al., 2015). H9: Customer satisfaction positively influences customer loyalty. 2.14. Research framework Research consistently shows a positive link between LSQ and firm performance (Leuschner & Rogers, 2013). Strong logistics services improve financial outcomes like revenue and market share (Rafiq & Jaafar, 2007). LSQ also positively impacts customer satisfaction and loyalty (Bienstock et al., 2008). However, we lack an understanding of how LSQ affects customer loyalty in B2C e-commerce. Most prior research focused on traditional B2B settings (Mentzer et al., 1999). B2C e-commerce's unique features, like online interactions and individual consumer behaviour, require further study of LSQ factors influencing customer outcomes. This study explores these relationships in the Vietnamese B2C e-commerce market. While acknowledging that various factors influence the overall online shopping experience, this study examines explicitly the last-mile delivery phase
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