LOGISTICS SERVICE PERFORMANCE: ESTIMATING ITS INFLUENCE ON MARKET SHARE

TLDR

The study investigates how operational, relational, and cost dimensions of logistics service performance relate to customer satisfaction, loyalty, and market share. Customer perceptions of third‑party logistics providers are used to evaluate the three performance constructs. Relational performance is the key driver of customer satisfaction, which strongly predicts loyalty and is empirically linked to market share.

Abstract

The research examines the relationships among three dimensions of logistics service performance (operational, relational, and cost performance), customer satisfaction, customer loyalty, and market share. Perceptions of customers of third party logistics (3PL) providers are used to assess 3PL performance constructs. Of the three dimensions of service performance, relational performance is the single most important factor in engendering customer satisfaction. The research supports the strong relationship between customer satisfaction and loyalty identified in previous studies. It also establishes an empirical link between customer loyalty and a measure of market share that is anchored by objective, secondary data.