This document presents a study that aimed to identify key attributes of freight logistics service quality and examine how these attributes impact shippers' selection of third-party logistics service providers. The researchers conducted a survey and interviews with shippers and logistics providers in Thailand. Through statistical analysis of the results, they identified 24 freight logistics service attributes that were categorized into six dimensions: reliability, assurance, tangibility, empathy, responsiveness, and cost. The study found that freight logistics service quality significantly impacts shippers' selection of third-party logistics providers, with reliability, assurance, and cost being most important.

1. Ruth Banomyong
Department of International Business, Logistics and Transport, Faculty of
Commerce and Accountancy, Thammasat University, Bangkok, Thailand, and
Nucharee Supatn
Martin de Tours School of Management, Assumption University, Bangkok,
Thailand
European Journal of Marketing
Vol. 45 No. 3, 2011
pp. 419-437
Emerald Group Publishing Limited
0309-0566
DOI 10.1108/03090561111107258
Submitted to : DR. Saad Mesbah
Submitted by : Mahmoud Mohamed Sayed Ahmed

2. Content
 Abstract
 Introduction
 Literature Review
 Objective
 Data collection
 Methods of data analysis
 Results
 Conclusions
 References

3. Abstract
Purpose
 The purpose of this research is to identify key
attributes of freight logistics service quality
 and to examine how these attributes impact
shippers’ selection of third-party logistics service
 providers (3PLs). The knowledge and
understanding of these attributes can be of great
value to 3PLs
 when developing marketing strategies to attract
and retain clients.

4. Introduction
Globalization has emerged as a major force shaping
business strategies during the last two decades which has
led to an increase in export trade for many developing
countries especially for Asian countries such as Singapore,
Malaysia and Thailand.
Logistics activities especially freight logistics play a
significant role in supporting export activities. Efficient
logistics management is considered a powerful source of
competitive differentiation since it is not only a source of
cost savings .

5. Literature Review
Conway and Whitelock (2007) also stated that
strategic marketing strategy should focus on continuous and long-term
relationship
between customers and service providers.
D’Este (1992) developed a behavioural
framework to represent the various stages in the decision-making process and
the
interaction of factors that influenced shipping managers when selecting
carriers in the
Ro/Ro ferry trade between Melbourne and Tasmania.
Palmer et al. (2005) suggested that
traditional marketing strategies such as pricing and sales promotional strategy
may
not be adequate for this era. Goh and Pinaikul (1998) observed that Thai
shippers
usually selected their 3PLs based on word-of-mouth recommendation and
long-term
relationships rather than on marketing. Conway and Whitelock (2007) also
stated that

6. Objective
 The selection of logistics service
providers
Bottani and Rizzi (2006) suggested that
there are five main steps involved in the
selection of logistics services:
(1) the identification of the need to
outsource logistics;
(2) the development of feasible alternatives
by comparing the use of internal
expertise, knowledge, experience to hiring
outside expert and obtain
professional logistics service;
(3) the evaluation of candidates and
selection
of a service provider;
(4) the implementation of services; and
(5) the service evaluation to control the
performance, to select a new service
provider or to enhance the relationship
between the firm and the logistics
service provider.
 Logistics service quality
service quality can be categorised into five
dimensions:
(1) Tangibility which refers to the
appearance of physical facilities, equipment,
personnel, and communication materials.
(2) Reliability which is the ability of a service
provider to perform the promised
service dependably and accurately.
(3) Responsiveness which is the willingness
to help customers and provide prompt
service.
(4) Assurance refers to the knowledge and
courtesy of service providers and their
ability to convey trust and confidence.
(5) Empathy means caring and
individualised attention that the service
provider
provides to each customer.

7. Data collection
 In order to determine which freight logistics service
attributes were important and to
examine the impact of these attributes on 3PL
selection, a survey was conducted, and interviews
 A questionnaire was developed based on the
literature and the in-depth interviews results.
 A logistic regression analysis was used to examine
the relationships between all service attributes and
shippers’ decision-making process in selecting a
given.

8. Methods of data analysis
 To ensure that all proposed service attributes were
usable, three statistical analyses i.e.
Cronbach’s alpha coefficient, item-to-total analyses
and exploratory factor analyses
was performed. These analyses were performed to
assess reliability and validity of the
data and measurement items. All scale items were
refined based on the generally
accepted guidelines provided by Hair et al. (2006).

9. Results
 A total of 24 freight logistics service attributes were
identified and categorized based on the SERVQUAL
model into six dimensions: reliability, assurance,
tangibility, empathy, responsiveness, and cost. Freight
logistics service quality was found to impact shippers’
selection of 3PLs significantly.
 exploratory factor analysis for service quality indicated
that most service attributes could determine each
dimension of freight logistics service quality while 76.42
percent of the overall freight logistics service quality
could be explained. However, some low

10. Conclusions
 Conclusions and research implications
The major contribution of this study is related to the understanding of the
freight logistics service quality concept.
Unlike most previous studies that focused on generic logistic service
quality, service attributes that are specific to freight logistics were
identified in this research.
Freight logistics key service quality attributes were initially obtained from
the literature and modified based on the interview data gathered from
shippers and logistics service providers.
The impact of freight logistics service quality on 3PL selection was
analysed.
The focused on the individual service attributes. The results indicated
that reliability, assurance and the service cost dimension were
significantly related to the shippers’

11. Keywords
 Freight forwarding
 Decision making
 Thailand

12. References
 Banomyong, R. (2007), “Thailand logistics costs/GDP”, Thammasat
Logistics Research Papers,Vol. 3 No. 1, pp. 1-2.
 Bloemer, J., Ruyetr, K. and Wetzels, M. (1999), “Linking perceived
service quality and service loyalty: a multidimensional perspective”,
European Journal of Marketing, Vol. 33 Nos 11/12,pp. 1082-106.
 TIFFA (2004), Thailand Freight Forwarding Handbook 2004, Cosmic
Publications, Bangkok. Van Laarhoven, P., Berglund, M. and Peters, M.
(2000), “Third-party logistics in Europe – five years later”, International
Journal of Physical Distribution & Logistics Management, Vol. 30 No. 5,
pp. 425-42.
 Nunnally, J.C. (1978), Psychometric Theory, 2nd ed., McGraw-Hill, New
York, NY.