Customer Loyalty in International Third-Party Logistics Service Providers

This study develops a conceptual framework of the factors that impact on customer loyalty in international third-party logistics service providers (3PL). We developed a model of 3PL loyalty that categorised loyalty factors into three main research streams: Customer Satisfaction, Supplier Collaboration, Trust and Commitment. We measured loyalty with four variables: Repurchases, Switching Costs, Exclusiveness, and Referrals. We conducted a survey of a random stratified sample of 1.000 manufacturing companies which had utilised international 3PL services during the last 12 months and got 113 valid responses (13.1% response rate). We employed factor analysis and hierarchical regression analysis to assess the impact of loyally factors on 3PL loyalty. The hypothesis that Service Satisfaction affects 3PL loyalty was accepted and the hypothesis that Strategic Collaboration affects 3PL loyalty was partially accepted. Contrary to previous studies, this study found that operational collaboration does not contribute to 3P loyalty. Trust and price satisfaction have only but limited impact on customer loyalty. A number of significant effects of 3PL factors on Repurchase, Switching Costs, and Referrals were also found and discussed.