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  • 1. CUSTOMER SATISFACTION AND LOYALTY INLOGISTICS SERVICES @ DHL EXPRESS (I) PVT LTD A PROJECT REPORT Submitted in Partial fulfillment of the degree of requirement for the award of MASTER OF BUSINESS ADMISTRATION (Marketing & HR) Submitted by GAURAB DUTTA Registration No: P07BA126 Under the guidance of Dr. S. Lalitha Prof. in Management Studies BHARATH UNIVERSITY SCHOOL OF MANAGEMENT STUDIES Chennai 600073 India May 2009
  • 2. School of Management Studies 173, Agaram Road, Selaiyur, CHENNAI 600 073 Ph: 044-22290125, 22290742; Telefax: 044-22293886 Web:; Mobile 09380408052 CERTIFICATE This is to Certify that the Project report on “CUSTOMERSATISFACTION AND LOYALTY IN LOGISTICS SERVICES @ DHLEXPRESS (I) PVT LTD” is a bonafide work and submitted by Mr. GaurabDutta in partial fulfillment of the degree of Master of Business Administration,School of Management Studies, Bharath University, during 2007–2009.This certificate is issued based on the declaration by the candidate.Dr. S. Lalitha Prof. N. M. Jaffer(Project Guide) (HOD) Project Report evaluated & Viva Voice held on …………….
  • 3. INTERNAL EXAMINER EXTERNAL EXAMINER DECLARATION BY CANDIDATE I declare that this project work on “CUSTOMER SATISFACTION ANDLOYALTY IN LOGISTICS SERVICES @ DHL EXPRESS (I) PVT LTD” is abonafide work done and submitted by me and the research work was carried outunder the guidance of Mr. Rajkumar Krishnan, Clearance Supervisor, DHLExpress (I) Pvt. Ltd. and under overall supervision of Dr. S. Lalitha, Professor,School of Management Studies, Bharath University. I further declare that this Project Report does not form of any otherproject reports or dissertations on the basis of which a degree was awarded orconferred on an earlier occasion on me or any other candidate.Place: ChennaiDate: Gaurab Dutta
  • 4. ACKNOWLEDGEMENT I express my deep sense of gratitude to our beloved chairman Dr. S.Jagathrakshagan for giving me a wonderful opportunity for doing Master ofBusiness Administration in this esteemed institution I wish to place my deep sense of gratitude to Mr. Rajkumar Krishnan,Clearance Supervisor, DHL Express (I) Pvt. Ltd. For his valuable guidancethroughout the project. Foremost, I would like to thank Dr. N. M. Jaffer, HOD, School OfManagement Studies, Bharath University, for his intensity and focus on technicalaspects and for taking all efforts to make my journey smooth on the informationtechnology super highway. It is a privilege to have him as our faculty. I consider it a great privilege to be under the guidance of Dr. S. Lalitha,Professor, School of Management Studies, Bharath University. The contributionand significant role played by her help me in preparation and submission ofproject report in time. I gratefully acknowledge the team of staff members in M.B.A departmentfor helping me in all aspects and giving their valuable ideas for making myproject efficient and effective. Last but not the least I would like to thank myparents and friends for their valuable support and encouragement through outthe course of the project. Gaurab Dutta
  • 5. CONTENTS Chapters Page No.1. Introduction 12. Company Profile 153. Review of Literature 194. Research Methodology 295. Data Analysis and Interpretation 356. Findings 557. Suggestions 578. Conclusions 599. Annexure I10. Bibliography II
  • 6. INTRODUCTIONResearch Motivation A multitude of companies today has already identified the need to create aloyal customer base and acknowledges that maintaining existing customers andextending business with them is significantly less expensive than acquiring newcustomers. Empirical proof of the proliferation of such customer loyalty efforts in thebusiness world is e.g. provided in the form of loyalty programs, which manycompanies have installed during the past years. By engaging in efforts aimed atcreating customer loyalty, which in turn fosters financial success in monetary termsfirms react to increasing competitive challenges. Within research, the investigation of customer loyalty gained importance whenthe classic marketing paradigm with its instrumental and transactional orientationproved unsuitable in the context of longer-term business relationships. Instead, therelationship marketing approach, which is specifically concerned with the study ofrelational ex-changes, gained importance within research, serving as a conceptualfoundation for the majority of customer loyalty researchers. The question of how loyalty develops has been subject to an abundance ofresearch, leading to an expansive body of literature on loyalty determinants. Theextant literature exploring different factors and their constituent effects on loyalty,however, reveals a strong focus on consumer goods and industrial equipment settings,
  • 7. while industrial services have received relatively little attention so far. In addition, themajority of articles incorporates merely a few potential determinants and thus fails todraw a comprehensive picture of the mechanisms of customer loyalty formation.Place: Chennai Just like other businesses, logistics service providers (LSPs) are faced withincreasing competitive pressure that urges them to concentrate not only on operationalbusiness processes, but also on an efficient and effective customer management. Inthe US alone, LSPs’ revenues grew from US-$ 31 billion in 1995 to US-$ 85 billionin 2004 and logistics outsourcing expenditures as a fraction of total logisticsexpenditures are at over 40% and expected to rise even further. One way to meet thischallenge of rapid growth and expansion, according to Langley et al. is to focus onestablishing, maintaining, and developing relationships with customers.An often proposed driver of logistics outsourcing is the need to develop and maintaincompetitive advantage, which customers of LSPs intend to achieve throughconcentrating on core competencies and re-engineering. Another important driver isthe ongoing globalization, which several authors regard as the most importantchallenge that companies are facing. In this context, LSPs can play an important roleas facilitators of global trade. Along with globalization, however, companies thatoutsource logistics activities increasingly try to consolidate the number of LSPs theyuse globally. Therefore, LSPs do not only have to devise sustain-able growthstrategies, but also have to develop intercultural management competencies, achallenge hardly ad-dressed in LSP management literature.
  • 8. While intercultural management deals with the influence of culture onmanagement styles in different countries, it is also arguable whether a one best waymanagement paradigm is applicable even within national confines. LSPs’ customersare extremely diverse and similarly, relationships between LSPs and their customerscan be expected to exhibit momentous differences. As such, it is a crucialmanagement issue for LSPs to de-sign their customer loyalty efforts in a manner thataccounts for both cultural context and different relationship characteristics.Research goals As outlined in the preceding section, LSPs are confronted with diversemanagement challenges that result from continuous growth, globalization, andcustomer diversity. The aim of the present study therefore is to identify determinantsof customer loyalty in relationships between LSPs and their customers by explicitlyconsidering different characteristics and cultural contexts of such relationships. In thissense, the present research is positioned at the interface of marketing and logistics andis intended to contribute not only to logistics research, but also to research inmarketing, customer loyalty, and cultural studies. In order to address the concept of customer loyalty, it is important tounderstand the mechanisms underlying loyalty in the logistics outsourcing context.For this reason, the starting point of the present research will be the study ofWallenburg, who studied customer loyalty within relationships between LSPs and
  • 9. their customers. On this basis, factors that can be surmised to determine customerloyalty in such relationships will be proposed and interdependencies between thesefactors will be identified. The resulting comprehensive explanatory model of customerloyalty will not only provide insights into the constitution of customer loyalty, butwill also serve as the basis for subsequent analyses. As stated previously, a globalizing marketplace and the need of LSPs to renderlogistics services on an international scale requires intercultural managementcompetencies. Before being able to apply such management techniques, though, athorough understanding of cultural differences between different countries isnecessary. The present study will therefore provide a starting point for such analysesby investigating cultural differences between two important markets for logisticsoutsourcing, the USA and Germany. Particular differences between Germany and theUSA will be identified and applied to the previously devised customer loyalty model.As a result, differences between the two countries with respect to the formation ofcustomer loyalty can be inferred. Finally, this study will investigate in how far different relationship conditionsinfluence the development of customer loyalty. For this purpose, importantrelationship characteristics will be identified and their moderating influences on thecustomer loyalty model will be examined. This will provide information on therobustness of the customer loyalty model versus relational contingencies and willsuggest if it is necessary to differentiate customer loyalty efforts accordingly.
  • 10. Customer Satisfaction The term logistics is often misinterpreted to mean transportation. In fact, thescope of logistics goes well beyond transportation. Logistics forms the system thatensures the delivery of the product in the entire supply pipeline. This includestransportation, packaging, storage and handling methods, and information flow. Theimpact of logistics in the ability of a company to satisfy its customers cannot beoverstated. All other efforts at modernization within a company would not bear fruituntil the logistics system is carefully designed to facilitate the smooth and efficientflow of goods in the system. The topic of logistics is relatively new in India. There have been somecompanies that have done work in this area, but a large number of companies are onlynow beginning to realize the benefits of designing and managing the entire supplychain. With India joining the global marketplace, the role of logistics assumes greaterimportance. The industrial policies in India have prompted manufacturers to build plants inremote, backward areas due to inexpensive land and tax benefits. This poses someserious logistical problems. Apart from a poor road and transportation network, theexisting communications system in India leaves a lot to be desired by anyinternational standard. It is in this context that logistics has to be considered in India.Customer Satisfaction in 7 Steps
  • 11. 1. Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with acustomer. If youre not used to this sort of thing it can be a pretty nerve-wrackingexperience. Rest assured, though, it does get easier over time. Its important to meetyour customers face to face at least once or even twice during the course of a project.2. Respond to Messages Promptly & Keep Your Clients Informed This goes without saying really. We all know how annoying it is to wait daysfor a response to an email or phone call. It might not always be practical to deal withall customers queries within the space of a few hours, but at least email or call themback and let them know youve received their message and youll contact them about itas soon as possible. Even if youre not able to solve a problem right away, let thecustomer know youre working on it.3. Be Friendly and Approachable A fellow Site Pointer once told me that you can hear a smile through thephone. This is very true. Its very important to be friendly, courteous and to make yourclients feel like youre their friend and youre there to help them out. There will be
  • 12. times when you want to beat your clients over the head repeatedly with a blunt object- it happens to all of us. Its vital that you keep a clear head, respond to your clientswishes as best you can, and at all times remain polite and courteous.4. Have a Clearly-Defined Customer Service Policy This may not be too important when youre just starting out, but a clearlydefined customer service policy is going to save you a lot of time and effort in thelong run. If a customer has a problem, what should they do? If the first option doesntwork, then what? Should they contact different people for billing and technicalenquiries? If theyre not satisfied with any aspect of your customer service, whoshould they tell? Theres nothing more annoying for a client than being passed fromperson to person, or not knowing who to turn to. Making sure they know exactly whatto do at each stage of their enquiry should be of utmost importance. So make sureyour customer service policy is present on your site -- and anywhere else it may beuseful.5. Attention to Detail (also known as The Little Niceties) Have you ever received a Happy Birthday email or card from a company youwere a client of? Have you ever had a personalized sign-up confirmation email for aservice that you could tell was typed from scratch? These little niceties can be timeconsuming and arent always cost effective, but remember to do them.
  • 13. Even if its as small as sending a Happy Holidays email to all your customers,its something. It shows you care; it shows there are real people on the other end ofthat screen or telephone; and most importantly, it makes the customer feel welcomed,wanted and valued.6. Anticipate Your Clients Needs & Go Out Of Your Way to Help Them Out Sometimes this is easier said than done! However, achieving this supremelevel of understanding with your clients will do wonders for your workingrelationship.7. Honour Your Promises Its possible this is the most important point in this article. The simplemessage: when you promise something, deliver. Clients dont like to be disappointed.Sometimes, something may not get done, or you might miss a deadline through nofault of your own. Projects can be late, technology can fail and sub-contractors dontalways deliver on time. In this case a quick apology and assurance itll be ready ASAPwouldnt go a miss.Customer Loyalty
  • 14. Obtaining a thorough understanding of customer loyalty is a prerequisite forthe execution of the research at hand. For that, the development of customer loyaltyresearch within the framework of relationship marketing will be presented first, beforedifferent customer loyalty concepts will be introduced. From these concepts, adefinition of customer loyalty for use in this study will be derived, before bothconsequences and antecedents of customer loyalty will be portrayed. Since the beginning of the 1990s, customer loyalty has gained importance bothin relationship marketing research and in business. In business, this can be attributedto changing market- and competition-environments. Due to a shift from a sellers’ to abuyers’ market and because of an increasing degree of globalization, most industriesfind themselves confronted with new challenges. In a first phase, firms tried to facethese challenges by focusing on their internal processes and organizational structures,trying to achieve cost reductions by concentrating on internal improvements. Asecond phase of external focus followed, where firms directed attention to theircustomers, trying to retain existing ones and to win over new ones (churning). Since“acquiring new customers is much more expensive than keeping them”. And “loyalcustomers are the bedrock of any business”. A loyal customer base represents abarrier to entry, a basis for a price premium, time to respond to competitorinnovations, and a bulwark against deleterious price competition. Loyalty is critical tobrand volume, is highly correlated to market share, and can be used as the basis ofpredicting future market share; consequently, understanding loyalty appears critical toany meaningful analysis of marketing strategy.
  • 15. In marketing research, two trends mark the development of customer loyalty.While individual transactions initially were in the center of marketing research, thefocus shifted towards analyzing relationships states that the ‘traditional’ marketingconcept of the marketing mix with its ‘4 Ps’, developed in the middle of the lastcentury, had been the established approach until the 1990s. This approach, how-ever,focuses solely on transactions, a deficit tackled by the relationship marketingapproach. At the core of it is the study of relationships between buyers and sellers ofgoods or services, in contrast to merely examining transactions. An often cited andcomprehensive definition of relationship marketing is provided “Relationshipmarketing refers to all marketing activities directed toward establishing, developing,and maintaining successful relational exchanges.” Therefore, the relationshipmarketing approach pro-vides a suitable environment in which customer loyaltyresearch can be nested. While the development of relationship marketing began in the early 1970s, itwas not until the late 1980s that works from the ‘Nordic School of Services’. Initiateda paradigm shift that geared marketing towards the creation, conservation, andextension of buyer-seller relationships. Although relationship marketing today iswidely accepted among marketing researchers, its promoters do not postulate thereplacement of the transactional approach, but rather juxtapose the two approaches.For example, delineates a strategy continuum, in which different goods requiredifferent degrees of transaction- and relationship-based marketing strategies. As a
  • 16. result of the focus on relationships in marketing research, customer loyalty gainedimportance within research. Before determining which stream the present study can be associated with,however, it is important to create a clear understanding of different customer loyaltyconcepts prevalent in research. This will be accomplished in the following section.Customer Loyalty Concepts Reviewing research, it becomes obvious that the notion of customer loyalty isblurred. At its core, customer loyalty deals with relationships between suppliers andtheir customers and can be distinguished from other loyalty aspects, such as brandloyalty, which refer to a more abstract attachment, such as that towards a brand.Within German customer loyalty literature, the notion of customer loyalty is evenmore faceted, encompasses both ‘customer loyalty’ and ‘customer retention’distinguishes an active, supplier-focused component and a passive, customer focusedcomponent of customer loyalty. In the supplier-focused perspective, customer loyalty is seen as a bundle ofmeasures that aim at improving relationships with customers. The supplier is in thecenter of attention and the customer is only regarded as the factor at which success ofcustomer loyalty becomes manifest. Here it becomes clear that this approach containsa conceptual deficit. It is the customer who eventually decides on whether customerloyalty management is successful or not, because all activities undertaken by a
  • 17. supplier can only be geared at influencing customers to be loyal. A customer-focusedperspective therefore has to be added to evaluate the success of customer loyaltymanagement. Within the customer-focused perspective, customer loyalty is conceptualizedtaking into account customers’ complex characteristics. These can either beapproached as customers’ directly observable actions and/or take into account theirattitudes and intentions. Since customers’ actions are directly influenced by theirattitudes and intentions, it is obvious that these have to be scrutinized to understandand manage loyalty. A third perspective is a synthesis of the former two approaches.The relationship-focused perspective directly examines the relationship betweensuppliers and customers. Accordingly, the objects of study in this perspective usuallyare buying behavior in retail contexts and long-term relationships marked by frequentinteraction between suppliers and buyers in industrial contexts. It is clear that the supplier-focused perspective with its instrumental approachis significantly different from the other two approaches. Distinguishing the customer-and the relationship-focused perspective, however, is difficult, because both focus onthe customer.  Behaviorist customer loyalty concepts Behaviorist concepts of customer loyalty have been at the core of earlymarketing research and focus on customers’ observable behavior, as e.g. in
  • 18. purchasing behavior. Accordingly, customer loyalty is established, when customersdemonstrate consistency in their choice of supplier or brand. “Hard-core” loyalty,when one product alternative is exclusively repurchased and of “reinforcing” loyalty,when customers switch among brands but repeat-purchase one or more alternatives toa significant extent. Similarly, customer loyalty as “the proportion of times apurchaser chooses the same product or service in a specific category compared to thetotal number of purchases made by the purchaser in that category“. Pegging customerloyalty to purchasing behavior, however, is very critical, there can be a multitude offactors affecting purchasing behavior, such as product availability or special deals,which are not grasped by looking at purchases alone. A main deficit of thebehavioristic approach thus is that it does not look at the drivers’ behind purchasingbehavior. Another disadvantage of behavioristic customer loyalty concepts is their ex-post approach. When loyalty is only expressed through purchases, information oncustomers’ actual loyalty status in between purchases is not available. Consequently,decreasing loyalty is only recognized after it manifests itself through changedpurchasing behavior. Only in relationships with frequent interaction can a supplierintegrate further aspects, such as complaints, into customer loyalty management. Thereason, why behavioristic concepts may still be valuable, is because the measurementof customer loyalty in this approach does not necessitate involvement by thecustomer. The assessment of attitudes and intentions would always imply customers’cooperation through participation in surveys. By simply recording purchases, e.g.through delivery records in the industrial context or customer cards in a consumer
  • 19. context; the assessment of customer loyalty poses little difficulty. Particularly inareas, where most purchases can be easily ascribed to individual customers, as is thecase with mail-ordering or book-stores on the internet, the behavioristic approach isuseful for identifying different customer groups and their characteristics. Such firms,however, can only assess purchases of their own products, while purchases ofcompeting products go unnoticed. Firms can therefore neither draw conclusions aboutrelative changes of purchasing behaviors, nor evaluate their comparative marketposition.  Neo-behaviorist customer loyalty concepts These narrow technical definitions do not adequately capture the richness anddepth of the loyalty construct implicit in a relational framework.” Consequently, neo-behavioristic customer loyalty concepts start at the shortcomings of the behavioristicapproach by examining the causes of loyalty. As early as 1969, Day concluded that“loyalty should be evaluated with both attitudinal and behavioral criteria” otherwiseaccidental repeat-purchases, merely resulting from situational exigencies, would beregarded as indicators of loyalty. There is no agreement, however, on the question,whether attitudes are part of customer loyalty or merely an antecedent of it. Someauthors propose that only positive attitude can lead to ‘true’ customer loyalty. Ifattitude then is a necessary prerequisite of customer loyalty, some drivers of loyaltycannot be explained. Transaction cost theory, for instance, provides the concept ofasset specificity. Relationship-specific investments create economic switching barriersand therefore increase customer loyalty. However, the mere repeat purchase of goodsor services for reasons of economic constraints would not qualify as loyalty, as
  • 20. positive attitudes are not involved. In order to avoid the outlined problem, it is usefulto abstain from defining positive attitude to be a necessary antecedent of loyalty.Instead, researchers usually consider intentions and observable behavior to be theconstituting elements of customer loyalty.Determinants of Customer Loyalty In order to be able to gear marketing activities towards the creation ofcustomer loyalty, its determinants and their precise effects have to be known.Accordingly, many researchers have investigated this topic. In order to gain anoverview of the determinants identified in these works, they can be structured in threedimensions: (1) Company-related determinants refer to the supplier itself or to the goods or services offered. It is a prerequisite for the existence of customer loyalty that the offered goods or services create utility for the customer and that they are available. In this respect, an assessment is usually performed by examining quality. In order to evaluate the price-performance ratio, customers will pay attention to prices. Customer loyalty will also be influenced by the reputation a company has and ultimately by customer loyalty programs offered. (2) Relationship-related determinants play a significant role in long-term relationships. Factors regarding the interaction between supplier and
  • 21. customer, such as relationship quality, previous experiences, and trust are important. Commitment, which provides evidence of emotional closeness and moral or normative feelings of obligation, takes a central role in relationships. Specificity and dependence can lead to economic, psychological and social switching barriers.(3) Customer-related determinants are mainly influenced by customers’ characteristics. In this respect, affect and involvement, and consequently also the importance of the good or service to the customer, are important. In addition to the above delineated areas, the effects of the market environment and competition are researched, as is the link between satisfaction and loyalty, which plays an important role in the research of customer loyalty and is often placed in one of the three dimensions. However, as most other determinants influence satisfaction, it cannot be clearly separated and should therefore be listed as a distinct category.
  • 22. COMPANY PROFILEOverview Logistics market is all set to experience a period of explosive organic growth,judging by independent market analyst Datamonitors latest research. TheDatamonitor report, "India Logistics Outlook 2007," predicts high double-digitgrowth rates for both outsourced and contract logistics in India. With Indias gross domestic profit (GDP) growing at over 9% per year and themanufacturing sector enjoying double digit growth rates, the Indian logistics industryis at an inflection point, and is expected to reach a market size of over $125 billion inyear 2010. Strong growth enablers exist in India today in the form of over $300 billionworth of infrastructure investments, phased introduction of value-added-tax (VAT),and development of organized retail and agri-processing industries. In addition, strongforeign direct investment inflows (FDI) in automotive, capital goods, electronics,retail, and telecom will lead to increased market opportunities for providers of 3PL inIndia." However, as a result of the under-developed trade and logistics infrastructure,the logistics cost of the Indian economy is over 13% of GDP, compared to less than10% of GDP in almost the entire Western Europe and North America.
  • 23. As leading manufacturers realign their global portfolios of manufacturinglocations, India will have to work on such systemic inefficiencies, in order to attractand retain long-term real investments. 3PL/outsourced logistics is the outsourcing of a companys logistics operationsto a specialized firm, which provides multiple tactical logistics services for use bycustomers as opposed to the respective company having a business unit in-house tooversee its supply chain and transportation of goods.Some Facts: • Market Size US $ 1.5 Billion • Growth rate between 15 to 20% per annum • International gateways: o Mumbai o Delhi, o Chennai • Domestic gateways o Mumbai, o Delhi, o Kolkata, o Chennai, o Bangalore, o Hyderabad, o Pune, o Salem, o Ambala,
  • 24. o Gauwhati, o Ahmedabad, o Nagpur. • Employs over 1.2 Million people • Air express witnessed maximum growth in the air cargo market • In 2007 over 1.70 Billion shipments handled • Air traffic grows faster than anywhere in the world • Total cargo traffic increased by 21.5 % in 2006-07 • 126 airport • 14 int‘l airport account for 96 % of total freight traffic • Estimated market size US$ 1.5 Billion • High growth rate • Express market expected to grow more than 20 % • India‘s Express industry bigger than tea and entertainment industry • 2nd fastest growing major economyAbout DHL
  • 25. DHL is a Deutsche Post World Net company of Germany that providesinternational Mail, Express, Logistics and Finance. The company was founded in1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn. The trio initially provided a courier service between the Continental UnitedStates and Hawaii then expanded the business from there. In 1998, Deutsche PostWorld Net began to acquire shares in DHL, finally reached majority ownership in2001, and completed the purchase in 2002. DHLs global headquarters are located in Bonn and London (its Exelsubsidiary). Headquarters for the Americas are located in Plantation, Florida, while itsAsia Pacific & EEMEA headquarters are located respectively in Singapore &Bahrain/Brussels. DHL owns its own cargo airlines, European Air Transport, originally based inBrussels, and DHL Air, based at the East Midlands Airport in the United Kingdom.EAT moved from Brussels Airport in Belgium to Leipzig/Halle Airport in Germanyin Spring 2008 with its fleet of Boeing 757SF freighters and Airbus A300 B4freighters. Leipzig is now DHL major European Airline hub with dedicated brandnew facilities. Major competitors of DHL include: • FedEx. • UPS. • TNT. • United States Postal Service and, • Royal Mail.As on 2006 DHL employees around 2,85,000 people across the various locations.
  • 26. REVIEW OF LITERATURELogistics After having presented the necessary fundamentals of customer loyalty in thepreceding section, this section will elaborate on the reference point of the researchproject, i.e. logistics. For that, the first section will present different views on logisticsand lay the notional basis for the understanding of logistics embraced in this study. Asrelationships between logistics service providers and their customers are to beanalyzed, the logistics outsourcing phenomenon will be detailed, before taxonomy oflogistics service providers is provided.Nature of Logistics Logistics is an established discipline both in theory and in practice, yet there isno agreement on a universal definition of logistics. One widely accepted view stemsfrom the Council of Supply Chain Management Professionals (CSCMP). In theirlatest definition (CSCMP 2005), logistics management is seen as “that part of SupplyChain Management that plans, implements, and controls the efficient, effectiveforward and reverses flow and storage of goods, services and related informationbetween the point of origin and the point of consumption in order to meet customersrequirements.”This view is clearly marked by the economic objectives ofeffectiveness and efficiency and regards logistics as part of supply chain management.
  • 27. Other definitions e.g. that of Weber and Kummer are broader and refer tologistics as a flow-oriented design of all value-creation processes. At the base of theirunderstanding is the empirically backed assumption that there are different stages ofmaturity in logistics. While there are several researchers that also argue for stagemodels of logistics development, there is no unity as to how many stages such amodel has. The model that will be briefly examined in this section stems from Weber,who identifies four maturity stages. These stages are determined by the level oflogistics knowledge present in a firm and require path-dependent development fromthe lowest to the highest level of logistics knowledge: In the first maturity stage, logistics is a specialized service function thatprovides transportation, handling, and storage services that are necessary for anefficient flow of materials and goods. Weber states that this stage of logistics maturitywas first observable in the 1950s, when markets changed from suppliers’ to buyers’markets, requiring improved materials flows to succeed in the changed marketenvironment. This is in line with Bowersox and Daugherty, who confirm thatadvanced logistical organizations barely existed at that time. Effects of this paradigm-change were two-fold. On the one hand, logistics optimization was achieved throughprocess improvements and advances in forecasting and planning techniques. On theother hand, organizational changes took place, as many companies institutionalizedtheir logistics functions in dedicated departments and therefore created a specializedservice function that was separated from other functions such as procurement ormanufacturing.
  • 28. The second stage of logistics maturity was initiated by contextual changes inthe economic environment. In addition, advances in technology facilitatedcommunication and networks between different departments in companies’ state. As aresult, firms realized that efficiency could be increased by improving the coordinationof materials flows from inbound streams in procurement through the value creationprocess in manufacturing to outbound streams in distribution. Through this focus onthe integration of different functions, cost and performance benefits were achieved.Weber provides coordination of lot-sizes and just-in-time supply and production asexamples of these benefits. The following third stage of logistics maturity was necessitated by furtherchanges of the market environment. Simon points out that the intensity of competitionincreased, an effect attributable to over-capacities, and a world-wide convergence ofproduct quality, shortened product-life-cycles, and a strengthened focus on customerdemands. The required simultaneous focus on differentiation and cost leadership wasnot feasible under the prevalent functional structures and rigid organizational systems.Instead, a process-oriented intra-company value chain that reduces complexity wasneeded to succeed in the changing market environment. Hence, logistics evolved froma mere functional concept to a management concept or, as from operational tostrategic orientation. The fourth and, for the time being, last maturity stage of logistics developmentis again driven by market pressures. When companies realized that optimizationpotentials within the organization had been largely exploited, the focus of attention
  • 29. was furthered to include upstream and downstream partners in the supply chain. Inthis sense, the view of logistics as a management concept from the third maturitystage is ex-tended over company boundaries and can be labeled supply chainmanagement (SCM). This underlines the outstanding importance of logistics for companies, whichcan realize significant economic benefits by allocating management capacities to theimprovement of logistics and the creation of flow-oriented organizations. A way, inwhich many companies presently try to accomplish this, is by outsourcing parts or allof their logistics activities to third parties.Logistics Service Providers If a company employs an outside provider to perform some or all of itslogistics activities, this outside provider is termed a logistics service provider. TheseLSPs were originally only offering a very narrow spectrum of services, mainlyconsisting of transportation or warehousing services. In order to react to changingdemands from their customers, as pointed out in the preceding sections, LSPs havestarted to offer integrated service portfolios that include a multitude of differentservices. According to, five types of LSPs can currently be distinguished: carriers,couriers & express & parcel/postal (CEP), freight forwarders, third-party LSPs(3PLs), and fourth-party LSPs (4PLs), which will be briefly described below.
  • 30. Carriers are firms that own assets for transportation purposes. These as-setsare usually confined to road, sea, air, or rail transportation. In some cases, however,carriers own several of the aforementioned transportation assets. management ofcapacity and load-factor optimization are at the core of the carrier business. CEPproviders are also transportation providers. As opposed to carriers, CEP providerssend parcels or mail though their networks, employing different transportationvehicles and incorporating handling at hubs. In this way, they can virtually supplydoor-to-door services anywhere in the world, without having to rely on any thirdparties. Core competencies of CEP providers are the operation and management ofhighly complex distribution networks. Freight forwarders are intermediaries between suppliers and buyers oftransportation services. In most cases, brokers carry out additional ser-vices, such astransportation planning and management, including the associated provision ofinformation systems. In some cases, brokers also dispose of their own transportationassets. Bundling and coordination of demand for transportation services are the corecompetencies of brokers. In contrast to the aforementioned LSPs, 3PLs or contract LSPs offer theircustomers logistics solutions that often include management capacities. Thesesolutions most commonly include several services, such as warehousing and
  • 31. pick/pack operations that are carried out on a longer-term contractual basis.Sometimes, customers’ value chains, such as fleet management, order handling,complaints management, call centers, or assembly services. A recent addition to thelist of types of LSPs comes in the form of 4PLs. While there is no universalagreement on the definition of the 4PL, the cur-rent state of the debate establishes4PLs as suppliers of complete logistics systems, without carrying out the servicesthemselves. Instead, 4PLs sub-contract all operations from other LSPs and confinethemselves to the management of logistics systems. Thus, they do not dispose of anylogistical assets and are a neutral intermediary between businesses and asset-basedLSPs. As 3PLs form the point of reference for logistics outsourcing as dealt with inthis study, the existing notional ambiguities in research have to be examined. Authorto identify different types of 3PLs. To him, there are four distinct classes of 3PLs: (1) asset-based 3PLs use their own assets (e.g. trucks and warehouses) to offer dedicated logistics services; (2) management-based 3PLs supply logistics management throughinformation systems or consulting; (3) Integrated 3PLs use their own assets to provide logistics services, but also subcontract from other vendors if necessary; and
  • 32. (4) administration-based 3PLs mainly offer administrative management (e.g. Freight payment).THEORETICAL FRAMEWORKSocial Exchange Theory Social exchange theory deals with “the relational interdependence, orrelational contract, that develops over time through the interactions of the ex-changepartners.” While this concept has only entered marketing theory in the 1980s, thediscussion goes as far back as to the Greek philosopher Aristotle, who distinguishedsocial exchange from economic exchange in his Nicomachean Ethics. Later,sociologists such as Blau and Emerson, as well as social psychologists such asThibaut and Kelley worked on the concept of social exchange. On the basis of a thorough investigation of social exchange literature, Lambe,Wittmann, and Spekman summarize the following four foundational premises ofsocial exchange theory, which will be detailed below: • Exchange interactions result in economic and/or social outcomes, • These outcomes are compared over time to other exchange alternatives to determine dependence on the exchange relationship • Positive outcomes over times increase firms’ trust of their trading partner(s) and their commitment to the exchange relationship, and
  • 33. • Positive exchange interactions over time produce relational exchange norms that govern the exchange relationship. In contrast to pure economic theories, social exchange theory thus incorporatesboth economic and social outcomes, highlighting the fact that social as well aseconomic considerations are made when evaluating the value of relationships. Thisvalue results from an assessment of both utilities and costs of a relationship, andparties will choose to uphold a relationship as long as the cost-utility-ratio issatisfactory. The exact composition of utilities and costs varies from individual toindividual, and more emphasis may be put on either social or economic aspects. When appraising the value of a relationship, parties will not only considercurrent and past costs and utilities, but also potential future benefits, and may foregopresent benefits for benefits in the future. Therefore, an important factor in socialexchange theory is trust, which results from multiple and beneficial interactions overtime. Only if the trading partner is trusted, will one be willing to reciprocate theabdication of cur-rent benefits for future benefits. Another important aspect of socialexchange theory is commitment, which is fostered by trust. This causal relationshipbetween trust and commitment is based on the principle of generalized reciprocity,because commitment entails vulnerability and parties will seek only trustworthypartners.
  • 34. Social exchange theory’s foundational premises indicate that relation-ships arenot only governed by contracts, but also by norms, which develop as a consequence ofrepeated interaction and “increase the efficiency of relationships because by agreeingto the manner in which interactions take place, the degree of uncertainty may bereduced.” As with trust, norms are adhered to because rewards are expected. While social exchange theory can be very useful conceptually, it is mainlycriticized for its lack of empirical foundation. Factors such as commitment and trustshould be able to substitute (at least in part) contractual governance structures, but thiscannot be confirmed empirically. Presumably, this is attributable to social exchangetheory’s neglect of opportunism.Equity Theory Equity theory represents an extension of social exchange theory by adding theaspect of fairness. While the concept dates back to Homans, equity theory wasprimarily coined by Adams. At that time referred to as “theory of inequity”, it wasintroduced to explain wage inequities. The basic assumption underlying equity theoryis that each party in a relationship compares its input-output-ratio to that of the otherparty. Analogous to social exchange theory, social as well as economic considerationsare incorporated in the evaluation of fairness. In case the ratio is balanced, the perception of being fairly treated is conveyed.Otherwise, one feels unfairly treated, arousing distress for both the over-benefited and
  • 35. the under-benefited parties, which may lead to emotional and behavioralconsequences. In order to re-create fairness, parties can change their inputs, adjusttheir expectations, influence the other party, or terminate the relationship. As in social exchange theory, the input-output-ratios of the involved parties donot have to be in balance at any given time. Instead, parties must trust that outcomesbe split equitably in the long-runCommitment Trust Theory Morgan and Hunt in 1994 first introduced commitment trust theory in theirarticle on successful relationship marketing. According to them, commitment andtrust function as key mediating variables between five antecedents (relationshiptermination costs, relationship benefits, shared values, and opportunistic behavior)and five outcomes (acquiescence, propensity to leave, cooperation, functional conflict,and decision-making uncertainty). By highlighting commitment and trust, Morganand Hunt’s theory is based on the fundamental ideas of social exchange theory. At thesame time, one of the major deficits of social exchange theory is addressed byallowing for opportunistic behavior. Considerations by Morgan and Hunt were spurred by a shift in marketingresearch and practice away from a mere transactional focus towards the relationshipmarketing approach, according to which all marketing activities are supposed to
  • 36. establish, develop, and maintain successful relational exchanges. While Morgan andHunt ac-knowledge that many contextual factors determine the success or failure ofrelationship marketing efforts, commitment and trust are seen as key, be-cause theycan establish relational governance norms. As such, commitment and trust canencourage cooperative behavior aimed at preserving relationship investments,mitigate the risk of choosing attractive short-term alternatives despite of expectedlong-term benefits with existing exchange partners, and can make high-risk actionsappear more attractive, because exchange partners are not feared to actopportunistically. “Therefore, when both commitment and trust – not just one or theother – are present, they produce outcomes that promote efficiency, productivity, andeffectiveness.”The six key factors that influence customer loyalty According to Peter Clark, co-editor of The Wise Marketer and co-authorof The Loyalty Guide report series, there are six major factors that play keyroles in influencing the loyalty and commitment of customers:
  • 37. Figure 1: Factors that influence customer loyalty
  • 38. RESEARCH METHODOLOGYObjective of the study  A study on customer level of satisfaction in towards DHL Express (I) Pvt Ltd  To identify the loyalty of customer towards DHL Express (I) Pvt. Ltd.  To measure the specific reasons for satisfaction and dissatisfaction in with DHL Express.  To identify the recommendations of DHL Express to others by existing loyal customers.
  • 39. Scope of the study  Scope of the study mainly to know the current level of customer satisfaction.  Scope of the study mainly to know the loyalty of the customer towards the company.  To give suggestion regarding improvement of performance standard of the Company  To inform the management about current level.
  • 40. Limitations of the study  Time limit restricts detailed survey work for this particular topic of research  The survey is restricted to the customers of DHL Express I Pvt ltd who are involved in imports.  Some customers have lack of time, so they may not communicate properly.
  • 41. Research design The objective of the study has been achieved by using both Primary andSecondary Data’s. The data’s obtained for the study was primarily from fieldinvestigation carried out among the customers of DHL.Sampling Sample design is a definite plan for obtaining a sample from a givenpopulation. It refers to the technique or the procedure the researcher would adopt inselecting items for samples. Samples are studied for the population who are the customers of DHL ExpressI Pvt. Ltd. Research design is needed because it facilitates the smooth railing of thevarious research operations thereby making research as effective as possible yieldingmaximal information with minimal expenditure of effort, time and money.Sample Size The Customers, to whom DHL provides service is taken into consideration.The sample size is 85.Primary Data Primary data was collected through Online Survey Survey Research:
  • 42. Survey research as name suggests, is distinguished by the facts that the dataare collected from the people who are thought to have the desired information,through questionnaire. Questionnaire was posted over the internet and sent to the respectivecustomers in order to collect information related to the topic. The questionnaires sodesigned for this purpose were structured.Secondary Data Secondary data was collected through company websites and records. Andanalysis on various aspects has been done using different statistical techniques.The methods followed for the analysis and interpretation of data are: • Uni variate Percentage Analysis • Weighted average method • Univariate Percentage Analysis: Percentage refers to a special kind of ratio. It is used to make comparisonbetween two or more series of data. They can be used to compare the relative items,the distribution of two or more series of data, since the percentages reduces everything to a common base and there by allow meaningful comparisons to be made. Hereonly one factor is considered. NO OF RESPONDENTSPERCENTAGE = x 100 TOTAL RESPONDENTS
  • 43. • Weighted Average Method: This method is a used when the relative importance of the different items isnot the same. The term weighted stands for the relative importance of the differentitems. It is assumed that inventory costs should be assigned on the basis of averagecosts of identical units. An average cost unit is determined by dividing the total costsof the units by the number of units.The weighted average method is logical when assigning costs to units that becomemixed together, there by making separate identification difficult or impossible.The formula is:__ ∑ WXX = ∑WWhere;X = Weighted Arithmetic meanX = Frequency or no of response dentsW = Weighted allotted to each factor
  • 44. DATA ANALYSIS & INTERPRETATIONCustomers overall experience to accessibility and responses of DHLrepresentative through Telephone. Options Respondents Percentage Excellent 16 20 % Very Good 16 20 % Good 32 40 % Fair 16 20 % Poor 0 0% Total 80 100 % Table - 1 Interpretation: 20 % of the customers responded that their overall experience toaccessibility and responses through Telephone is Excellent. Next 20 % says it is verygood. Good being awarded by 40 % of the customer. Final 20 % is not so satisfied sothey said that the service is fair
  • 45. Poor Fair 0% Excellent 20% 20% Excellent Very Good Good Fair Very Good Poor 20% Good 40% Figure - 2(Chart showing Customers overall experience to accessibility and responses of DHL representative through Telephone)
  • 46. Customers overall experience to accessibility and responses of DHLrepresentative through E-mail. Options Respondents Percentage Excellent 16 20 % Very Good 16 20 % Good 32 40 % Fair 16 20 % Poor 0 0% Total 80 100 % Table - 2 Interpretation: 20 % of the customers responded that their overall experience toaccessibility and responses through E-mail is Excellent. Next 20 % says it is verygood. Good being awarded by 40 % of the customer. Final 20 % is not so satisfied sothey said that the service is fair
  • 47. Poor Fair 0% Excellent 20% 20% Excellent Very Good Good Fair Very Good Poor 20% Good 40% Figure - 3(Chart showing Customers overall experience to accessibility and responses of DHL representative through E-mail)
  • 48. Clearance representative ability to help customer issue/need Options Respondents Percentage Excellent 15 19 % Very Good 17 21 % Good 22 28 % Fair 19 24 % Poor 7 9% Total 80 100 % Table - 3Interpretation: ` 19 % of the customers responded that their overall experience to abilityto help resolve issue or need is Excellent. Next 21 % says it is very good. Good beingawarded by 28 % of the customer. 24 % is somewhat satisfied so they said that theservice is fair. 9 % is not satisfied with the service.
  • 49. Poor 9% Excellent 19% Fair Excellent 24% Very Good Good Fair Very Good 21% Poor Good 27% Figure - 4(Chart showing Clearance representative ability to help customer issue/need)
  • 50. Customers Overall experience with DHL Clearance Department Options Respondents Percentage Excellent 17 21% Very Good 15 19% Good 14 18% Fair 30 38% Poor 4 5% Total 80 100 % Table - 4Interpretation: 21 % of the customers responded that their overall experience withDHL clearance department is Excellent. Next 19 % says it is very good. Good beingawarded by 18 % of the customer. 38% is somewhat satisfied so they said that theservice is fair. 5 % is not satisfied with the service.
  • 51. Poor 5% Excellent 21% Excellent Fair Very Good 37% Good Fair Very Good Poor 19% Good 18% Figure - 5(Chart showing Customers Overall experience with DHL Clearance Department)
  • 52. Customers Overall experience with DHL Shipment Delivery at doorstep Options Respondents Percentage Excellent 9 11% Very Good 25 31% Good 40 50% Fair 4 5% Poor 2 3% Total 80 100 % Table - 5Interpretation: 11 % of the customers responded that their overall experience withDHL clearance department is Excellent. Next 31 % says it is very good. Good beingawarded by 50 % of the customer. 5 % is somewhat satisfied so they said that theservice is fair. 3 % is not satisfied with the service.
  • 53. Fair Poor Excellent 5% 3% 11% Excellent Very Good Good Very Good 31% Fair Poor Good 50% Figure - 6(Chart showing Customers Overall experience with DHL Shipment Delivery at doorstep)
  • 54. Customer Satisfaction level with DHL Express I Pvt Ltd Options Respondents Percentage Extremely Satisfied 15 19% Satisfied 20 25% Neutral 22 28% Dissatisfied 18 23% Extremely Dissatisfied 5 6% Total 80 100 % Table - 6Interpretation: 19 % of the customers responded they are Extremely Satisfied with theservice. Next 25 % they are satisfied. Neutral is 22 % of the customer. 23 % issomewhat satisfied so they said that the service is fair. 3 % is not satisfied with theservice.
  • 55. Extremely Dissatisfied 6% Extremely Satisfied 19% Dissatisfied 23% Extremely Satisfied Satisfied Neutral Dissatisfied Satisfied 25% Extremely Dissatisfied Neutral 27% Figure - 7(Chart showing Customer Satisfaction level with DHL Express I Pvt Ltd)
  • 56. Customer Responses or Reasons for satisfaction with DHL Express I Pvt Ltd • Less transit time • Clear tracking • Advance furnishing of documents • Keeping customer fully informed • Timely clearance • Good Shipment delivery at doorstepInterpretation: Various reasons are given by customers for satisfaction like less transit time,Clear tracking, Advance furnishing of documents, keeping customer fully informed,Timely clearance, Good Shipment delivery at doorstep etc.
  • 57. Customer Responses or Reasons for Dissatisfaction with DHL Express I Pvt Ltd • Original Bill of Entry getting only after 3 days after our follow up, this should come along with delivery • Freight Bill received 30 days after delivery this should deliver within 24 hrs, so that your payment will not be delayed • The currency some times wrongly mention in the B/E before filing with Customs, check the invoice or check with the customer - this will help avoiding mistake. • In some of the instances your response is not proper • Since express service is preferred only when there are some urgency, though the cargo reaches at airport. clearance team takes minimum 7-25days takes for customs clearance • Commitment not met in several casesInterpretation: Various reasons are given by customers for dissatisfaction. The company needmore focused approach for satisfying the customers
  • 58. Recommend DHL Express to others Options Respondents Percentage Yes 51 64% No 29 36% Total 80 100 % Table - 7Interpretation: 64 % of the customer responded in favour of recommending DHL Express toothers. On the other hand 36 % of the people say No to recommend DHL Express toothers.
  • 59. No 36% Yes No Yes 64% Figure - 8(Chart showing Recommendation DHL Express to others)
  • 60. Over the past years loyalty towards DHL Express has grown stronger Options Respondents Percentage Yes 55 69% No 25 31% Total 80 100 % Table - 8Interpretation: 69 % of the customer responded in favour that loyalty towards DHL Expresshas grown stronger. On the other hand 31 % of the people say No that loyalty towardsDHL Express has not grown stronger.
  • 61. No 31% Yes No Yes 69% Figure - 9(Chart showing status of loyalty towards DHL Express has grown stronger)
  • 62. DHL Express Values people & Relationships ahead of Short-term goals Options Respondents Percentage Yes 41 51% No 39 49% Total 80 100 % Table - 9Interpretation: 51 % of the customer responded in favour that DHL Express Values people &Relationships ahead of Short-term goals. On the other hand 49 % of the people say Nothat DHL Express do not Values people & Relationships ahead of Short-term goals.
  • 63. No Yes Yes 49% 51% No Figure – 10(Chart showing DHL Express Values people & Relationships ahead of Short- term goals)
  • 64. FINDINGS• 20 % of the customers responded that their overall experience to accessibility and responses through Telephone is Excellent. Next 20 % says it is very good. Good being awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service is fair• 20 % of the customers responded that their overall experience to accessibility and responses through E-mail is Excellent. Next 20 % says it is very good. Good being awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service is fair• 19 % of the customers responded that their overall experience to ability to help resolve issue or need is Excellent. Next 21 % says it is very good. Good being awarded by 28 % of the customer. 24 % is somewhat satisfied so they said that the service is fair. 9 % is not satisfied with the service.• 21 % of the customers responded that their overall experience with DHL clearance department is Excellent. Next 19 % says it is very good. Good being
  • 65. awarded by 18 % of the customer. 38% is somewhat satisfied so they said that the service is fair. 5 % is not satisfied with the service.• 11 % of the customers responded that their overall experience with DHL clearance department is Excellent. Next 31 % says it is very good. Good being awarded by 50 % of the customer. 5 % is somewhat satisfied so they said that the service is fair. 3 % is not satisfied with the service.• 19 % of the customers responded they are Extremely Satisfied with the service. Next 25 % they are satisfied. Neutral is 22 % of the customer. 23 % is somewhat satisfied so they said that the service is fair. 3 % is not satisfied with the service.• 64 % of the customer responded in favour of recommending DHL Express to others. On the other hand 36 % of the people say No to recommend DHL Express to others.
  • 66. • 69 % of the customer responded in favour that loyalty towards DHL Express has grown stronger. On the other hand 31 % of the people say No that loyalty towards DHL Express has not grown stronger.• 51 % of the customer responded in favour that DHL Express Values people & Relationships ahead of Short-term goals. On the other hand 49 % of the people say No that DHL Express do not Values people & Relationships ahead of Short-term goals.
  • 67. SUGGESTIONS• Communicate. Whether it is an email newsletter, monthly flier, a reminder card for a tune up, or a holiday greeting card, reach out to your steady customers.• Customer Service. Go the extra distance and meet customer needs. Train the staff to do the same. Customers remember being treated well.• Employee Loyalty. Loyalty works from the top down. If you are loyal to your employees, they will feel positively about their jobs and pass that loyalty along to your customers.• Employee Training. Train employees in the manner that you want them to interact with customers. Empower employees to make decisions that benefit the customer.• Customer Incentives. Give customers a reason to return to your business. For instance, because children outgrow shoes quickly, the owner of a children’s shoe store might offer a card that makes the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has seen him regularly for five years.
  • 68. • Product Awareness. Know what your steady patrons purchase and keep these items in stock. Add other products and/or services that accompany or compliment the products that your regular customers buy regularly. And make sure that your staff understands everything they can about your products.• Reliability. If you say a purchase will arrive on Wednesday, deliver it on Wednesday. Be reliable. If something goes wrong, let customers know immediately and compensate them for their inconvenience.• Be Flexible. Try to solve customer problems or complaints to the best of your ability. Excuses — such as "Thats our policy" — will lose more customers then setting the store on fire..• People over Technology. The harder it is for a customer to speak to a human being when he or she has a problem, the less likely it is that you will see that customer again.• Know Their Names. Remember the theme song to the television show Cheers? Get to know the names of regular customers or at least recognize their faces.
  • 69. CONCLUSIONS In addition to suggestions and findings, this study also provides several scopesfor further research, which will be addressed in the following paragraphs: (1) While the customer loyalty model validated in this study possesses good power for explaining repurchase intentions and referral behavior, only partial explanation of the construct of additional purchase intentions is achieved. As stated before, factors not contained in the model such as strategic outsourcing considerations can be assumed to affect the intention of customers to outsource additional logistics activities to the currently most important LSP. For this reason, future studies should explore additional determinants of this loyalty dimension. (2) Measurement model assessment revealed that the operationalization of fairness in this study does not achieve sufficient discriminance from other constructs, especially from trust and relational satisfaction. As there is a strong theoretical indication that fairness is important in customer loyalty considerations, further studies should modify fair-ness’ measurement model, e.g. by more strongly recurring to the concept of inequity. (3) Within this study, four relational characteristics were examined. In addition, analyses were conducted for a multitude of other contingency factors that are not included in the present study. Overall, however, no conclusive moderations were identified. Nevertheless, it may be assumed that customer diversity still has moderating effects on the formation of customer loyalty. The determinants contained in this study, however, capture rather general evaluations of relationships between LSPs and their customers, which may be too broad to be subject to moderating effects. For this reason it would be sensible to examine antecedents of the employed determinants, as moderating effects could surface when this level of detail is added to the analyses.
  • 70. DHL Customer Satisfaction & Loyalty Survey• How would you rate your overall experience to accessablity and responses (of DHL representative) through phone and e-mail : Excellent Very Good Good Fair Poor• How you rate the representative ability to help you resolve your issue/need? Excellent Very Good Good Fair Poor• How you rate the representative on being Courteous & helpfulness? Excellent Very Good Good Fair Poor
  • 71. • Think specifically about the CLEARANCE Department, How would you rate your overall experience: Excellent Very Good Good Fair Poor• Think specifically about the SHIPMENT DELIVERY at your doorstep, How would you rate your overall experience: Excellent Very Good Good Fair Poor• In scale of 1 to 5, where 1 represents ‘Extremely Dissatisfied’ and 5 represents ‘Extremely Satisfied’. How would you rate your level of satisfaction with DHL Express. 1 2 3 4 5
  • 72. What specifically are you SATISFIED with DHL Express, Chennai. Enter yourresponse below: { E.g., - Safety & security, Excellent tracking, Less transit time }What specifically are you DISSATISFIED with DHL Express, Chennai. Enter yourresponse below: {E.g, - Commitment not met. etc.} • How likely are you to recommend DHL Express to others? The chances are: Excellent Very Good Good Fair Poor • In total, how long you have been a customer of DHL Express: More then 10 years 7 to 10 years 5 to 7 years 3 to 5 years Less then 3 years
  • 73. Please list top 3 reasons, initially becoming a member of DHL Express in order ofimportance:Please rate your level of agreement with the following statements. In scale of 1 to5, where 1 represents ‘Completely Disagree’ , 3 represents ‘Neutral’ and 5 being‘Completely Agree’ I believe the company, DHL Express deserves my loyalty: 1 2 3 4 5 Over the past years, my loyalty to the company, DHL Express has grownstronger: 1 2 3 4 5 DHL Express Values people & Relationships ahead of Short-term goals: 1 2 3 4 5*••• Suggestions ••• ( if any)
  • 74. Thanks for your valuable feedback.
  • 75. BIBLIOGRAPHYBooks: • Research Methodology – Kothari • The Loyalty Guide report series - Peter Clark • Marketing Management 12 e – Philip KotlerWebsites: • • • •