Investigating logistics service quality in omni-channel retailing

Abstract

Purpose The purpose of this paper is to investigate the impact of logistics service quality (LSQ) on consumer satisfaction and loyalty in an omni-channel retail environment. Design/methodology/approach An empirical, survey-based approach is used to collect data from consumers about experiences with two different omni-channel retail scenarios: buy-online-pickup-in-store (BOPS), and buy-in-store-ship-direct (BSSD). Participants responded to questions regarding the LSQ, consumer satisfaction, and consumer loyalty relative to their actual experience in one of these situations. Findings Results suggest that omni-channel consumers are truly unique, and all three dimensions of LSQ (condition, availability, and timeliness) are distinct in their impact on satisfaction and loyalty. Results suggest that in the BOPS sample, consumer satisfaction partially mediates the relationship between condition and loyalty and fully mediates the relationship between timeliness and loyalty. In the BSSD model, consumer satisfaction partially mediates the relationship between timeliness and consumer loyalty. Research limitations/implications This research studies LSQ in two different omni-channel scenarios; additional research is needed to explore other omni-channel scenarios and extend the findings to be more generalizable. Practical implications Managers should recognize that for omni-channel consumers, timeliness is the essential driver of satisfaction and loyalty. Retailers need to account for this reality and dedicate substantial resources to meet delivery requirements in a timely manner. Logistics service providers need to emphasize speed and reliability of their delivery processes for omni-channel consumers. Originality/value This research is the first attempt at conceptualizing LSQ in an omni-channel supply chain, and testing the impact of LSQ on consumer satisfaction and loyalty.

Competition Policy and Antitrust Law: Implications of Developments in Supply Chain Management

“…However, as the Internet and other channels of distribution have become commonplace, consumers have increasingly engaged in “research shopping”—gathering information about a product in one retail channel and then purchasing it in another retail channel (Verhoef, Neslin & Vroomen, ; Zimmerman, ). Manufacturers have also developed multi‐channel systems of distribution to serve these shoppers (Bianchi, Cermak & Dusek, ; Brynjolfsson, Hu & Rahman, ; Murfield et al., ). Following Frazier's (, p. 232) prediction, multiple channels of distribution are now “the rule rather than the exception.”…”

“…Research on multi-channel management (Herhausen, Binder, Schoegel & Herrmann, 2015;Rangaswamy & Van Bruggen, 2005), multi-channel distribution (Dutta, Bergen, Heide & John, 1995;Nunes & Cespedes, 2003;Perdikaki & Swaminathan, 2013), dual distribution (Huang & Swaminathan, 2009;David & Adida, 2015;Khouja, Pan, & Zhou, 2016;Chen, Liang, Yao, & Sun, 2017), omni-channel retailing (Zhang et al, 2010;Murfield, Boone, Rutner & Thomas, 2017;Wang, Hua, Wang, & Lai, 2017;Barwitz & Maas, 2018), retail management (Neslin & Shankar, 2009), and consumer-based SCM (Christopher & Gattorna, 2005;Ericsson, 2011;Gattorna, 2010;Godsell, Diefenbach, Clemmow, Towill & Christopher, 2011;Hjort, Lantz, Ericsson & Gattorna, 2013;Peinkofer, Esper, Smith & Williams, 2015;Stolze, Mollenkopf & Flint, 2016) documents developments in the management of distribution. Related research on cross-channel shopping (Hjort et al, 2013;Kumar & Venkatesan, 2005;Zhang et al, 2010), free riding (Bernstein et al, 2009;He, Xiong & Lin, 2016;Luo, Li & Cheng, 2016;Xing & Liu, 2012), and its manifestation through showrooming (Balakrishnan et al, 2014;Basak et al, 2017) examines the interplay of consumer shopping behavior and distribution strategy.…”

Multichannel Strategy in Perspective: The Consumer Experience at the Heart of Marketing Policy

“…In the new business world, it is true that some companies offer a multiplicity of touchpoints only to avoid the risk of losing their customers, but without always questioning their ability to conduct an efficient multichannel strategy. The multiplicity of touchpoints means, for example, that logistical processes are totally controlled so that the various distribution channels do not offer heterogeneous levels in logistical service quality to the consumer (Murfield et al, 2017). In the same way, it is important not to be left behind by competitors.…”

Operating Performance Effects of Service Quality and Environmental Sustainability Capabilities in Logistics

“…Conducting a meta‐analysis in the logistics and supply chain management context, Leuschner, Charvet and Rogers () found a significant positive relationship between logistics customer service and overall firm performance. In an omni‐channel retail environment, Murfield, Boone, Rutner and Thomas () documented the positive effects of logistics service quality on customer satisfaction and customer loyalty.…”