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CUSTOMER SATISFACTION AND LOYALTY INLOGISTICS SERVICES

CUSTOMER SATISFACTION AND LOYALTY INLOGISTICS SERVICES

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CUSTOMER SATISFACTION AND LOYALTY INLOGISTICS SERVICES

Chapter one

INTRODUCTION

1.1 Background of the Study

A large number of businesses now recognise the importance of building a loyal client base and understand that keeping existing customers and expanding business with them is substantially less expensive than recruiting new ones.

Customer loyalty became important when the traditional marketing paradigm, with its instrumental and transactional emphasis, proved ineffective in the setting of long-term corporate relationships.

Instead, the relationship marketing method, which focuses on the examination of relational exchanges, has grown in relevance in research, acting as the conceptual framework for the majority of customer loyalty researchers.

The question of how loyalty develops has been extensively researched, resulting in a large body of literature on loyalty determinants. However, the existing research on various determinants and their constituent effects on loyalty reveals a significant concentration on consumer products and industrial equipment settings, with little attention paid to industrial services thus far.

Furthermore, the bulk of articles only consider a few potential factors, failing to provide a full picture of the mechanisms underlying customer loyalty building.

Logistics service providers (LSPs), like other organisations, face rising competitive pressure, requiring them to focus not just on operational business procedures, but also on efficient and effective customer management.

According to Langley et al. (2005), one strategy to address the difficulty of rapid growth and development is to focus on establishing, maintaining, and strengthening customer connections.

An often-cited motive of logistics outsourcing is the need to establish and sustain a competitive advantage, which LSP customers hope to achieve by focusing on core capabilities and re-engineering.

Another key force I discovered is ongoing globalisation, which numerous experts see as the most crucial challenge that businesses face.

Companies that outsource logistics activities are increasingly attempting to consolidate the number of LSPs they utilise worldwide. As a result, LSPs must not only establish long-term growth strategies, but also multicultural management competencies, a subject that has received little attention in LSP management research.

While intercultural management examines the impact of culture on management styles in many countries, it is debatable if a single best way management paradigm is valid even inside national borders.

LSPs’ customers are exceedingly diversified, and interactions between LSPs and their customers are likely to differ significantly. As a result, it is critical for LSPs to plan their customer loyalty initiatives in a way that takes into account both cultural context and various relationship qualities.

1.2 Statement of the Problems

The high cost of service and customer discontent with product services have become major issues for most Logistics Service Providers [LSP] in Nigeria. This study identifies how LSPs might improve their traditional methods to quality service by prioritising customer pleasure and loyalty.

Most LSPs in Nigeria are trailing behind in terms of performance indicators. Despite the high costs of delivery, LSPs continue to postpone deliveries due to inadequate logistics. This dissatisfies clients, making it difficult for them to remain loyal to the company.

As a result, the purpose of this research is to investigate the issues surrounding DHL Nigeria and propose potential solutions to these issues.

1.3 Aim and Objectives of the Study

As stated in the preceding section, LSPs face a variety of management issues as a result of ongoing growth, globalisation, and client diversity. The purpose of this study is to investigate variables of customer loyalty in respect to LSP services, with a focus on DHL Nigeria.

The goals of this research work include:

· Conduct studies on consumer satisfaction with DHL Express.

• Identify client loyalty to DHL Express.

· Determine the exact causes for satisfaction and discontent with DHL Express.

· Analyse the relationship between marketing and logistics at DHL Nigeria.

Examine loyalty dynamics in DHL’s logistics outsourcing scenario.

• Identify DHL Express suggestions from loyal customers.

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