Problem Statement
Topic: DHL Distribution Service Quality on Customer Satisfaction in Malaysia
Distribution service quality can be considered as the greater fraction of logistics systems that includes marketing activities, customer service as well as product delivery to the customers (Zhang and Huo 2013). The physical distribution considers mostly consists of various channels of distribution such as retail and wholesale. It is also comprised of various areas of critical decision similar to transportation, order processing, packaging, materials as well as inventory (Jonsson and Mattsson 2013). It is assumed that the reliability, availability as well as punctuality in delivery are the attributes, which are acknowledged as major qualifier of the distribution service. It has been long considered that quality of the distribution service plays a remarkable role in provision of satisfaction of customer (Wieland and Handfield 2016). In the current context, the research project is aimed to explore the distribution service quality of customer satisfaction in Malaysia. In this prospect, the project has evaluated the distribution activities of DHL and its impact on customer satisfaction in order to derive realistic research findings on the research issue (Christopher 2016).
In the current world of consistent globalization progression as well as competitive market environment, the customer satisfaction greatly helps the organization to maintain robust market position (Stadtler 2015). Therefore, the organizations tend to focus from every angle and with the single aim to enhance the customer satisfaction level through various business activities. As the physical distribution service has been considered for a long time, the understanding of physical distribution system and its influence on consumer perception holds a momentous importance in business success (Lam and Dai 20150. It has been noted by a number of marketing professional that organizations face numerous marketing management problems at the time of proper physical distribution service levels (Fawcett et al. 2014). Given the importance of distribution service quality in shaping the customer satisfaction level, the organization has been observed to be quite unsatisfied as they could not fulfill the expectation through the distribution system of services as well as products (Monczka et al. 2015).
According to majority of the marketing scholars, it has been established that the distribution channels and marketing channels are far more important in comparison with the other marketing 4 P’s (Wisner et al. 2014). Moreover, it has been also seen that the effective distribution channel immensely help to acquire the competitive advantage. It has been also recognized by Collier and Bienstock (2015) that the organization would need a consistent and effective structure of distribution service to have a helpful outcome in the context of people and relationship. It is considered by most of the marketing analyst that the distribution channels would conduct a greater change in the operations of businesses (Brandenburg et al. 2014). Hence, it can be easily assumed that the physical distribution services would be most crucial component in management of the organizations’ marketing activities. Therefore, it can be easily concluded that in order to manage the physical distribution of service the organization have to first understand the influence of various aspects of distribution service quality on the customers (Mangan et al. 2016).
Research Questions
With the rise of competition in the service sector, the organizations are getting highly focused on attaining the customer satisfaction through distribution service system (Dekker et al. 2013). In this aspect, they have been also concentrated on attaining maximum benefit from the distribution service quality in order to satisfy the customers (Solomon et al. 2014). Therefore, it is evident the logistics and transportation sector would be most inclined to receive a detailed evaluation on the impact of distribution service quality on the customer satisfaction (Ross 2013). Hence, in the current context the logistics sector would need an efficient study on the various factor of distribution service quality as well as their impact on the customer satisfaction. The organizations also need to attain a proper understanding on the barriers of distribution service quality so that they can improve the system for greater customer satisfaction (Seuring 2013.
The research questions, which will be most influential in conducting this particular research, are mentioned below:
- What are the major factors of the distribution service quality?
- How the distribution service quality can satisfy the customers?
- What are the barriers of distribution service quality?
- What are the strategies to improve the distribution service quality?
This particular research project is one of the most significant piece of literature. It has been capable of properly studying the every aspects of distribution service quality that is practiced in the contemporary era. This particular research project would be highly effective to provide a detailed understanding on the working procedure of distribution service system. This way the contemporary business organizations would be able to perceive the barriers in their distribution service and work on reducing them. In this competitive market this particular study would provide a greater opportunity for the business organization to improve the distribution service system. The future researchers would be also helped by having a detailed insight of distribution service quality through this particular study.
The research objectives, which will be highly essential for constructing the framework of this particular research, are mentioned below:
- To investigate the major factors of the distribution service quality
- To explore the process of satisfying the customers through distribution service
- To identify the barriers of distribution service quality
- To recommend the strategies for improving the distribution service quality
In today’s highly competitive business market, for any business organization it is important to meet requirements of the customers. In recent years, companies are providing serious consideration to customer satisfaction and investing heavily to congregate the requirements of the customers (Chou et al. 2014). Customer contentment is their estimate after buying a service that gained from knowledge of utilization. Satisfaction of the consumers can be considered as the decisive foundation in today’s marketing. Therefore, success of a firm entirely depends on understanding and pleasing requirements of the customers which would be somehow better than the competitors. According to Alfred (2017), regularly distributing high eminence products and services to consumers generate a competitive benefit that increases customer constancy. However, it is not an easy task to achieve customer satisfaction through the quality of a product or services. For distribution companies, it is said that faster the services, happier the consumers. However, it is not enough to evaluate how customer satisfaction can be gained in terms of distribution industry. To understand this, it is important to find out the association between customer contentment and service quality (Wu and Liao 2016). In this chapter of the research, complete literature is provided on service quality and customer satisfaction along with relevant theories and models.
Research Significance
Agbor and Eriksson (2011) had developed a research work to analyze the connection amid service quality and customer contentment. In this research work, a case study of three service sectors in Umea had been used. It had been mentioned in this study that presently customers are considered as an important stakeholder of a company and their satisfaction has become major priority of management. In order to gain competitive advantage in market, companies are obliged to provide extra services along with their existing offers. It had been found from this research work that service quality is significantly related with customer satisfaction. It had also been found from the findings of this research work that service superiority is not the only factor that could increase buyer contentment in the service sectors. It had also mentioned in this research work that quality of service can vary in different service sectors. It had been motioned in order to improve customer satisfaction; a company had to improve various other aspects along with service quality. They were such as reliability, responsiveness, empathy.
Selvakumar (2016) had developed another research work to assess the impact of service excellence on the buyer satisfaction in civic sector and private segment banks. It had been found from this research work that service quality in the banking sector is one of the most significant criteria to evaluate and satisfy customers. They can increase customer loyalty and increase the rate of retention for consumers. It had been found from this research work that among various service quality determinants, empathy, assurance, and reliability had always played significant role. It had also been found from this research work that customer’s perception and expectation can be different across various service sectors. It had been found from this research work that service sector of India consists of wide spectrum of sectors like education, hotels, banking, insurance, restaurants, wholesale and retail trade, public administration and railways.
Vu and Huan (2016) had developed a research work to uncover the association amid service excellence, customer contentment and customers’ allegiance. In this research work an investigation had been developed on the Vietnamese retail banking sector. It had been found from this study that due to the increase of competitiveness and basic changes in the trade setting, companies have started to implement customer centric approach. This approach can improve factors such as service quality, buyer contentment and customer devotion that can explain the performance of an organization. From this research work, it had been found that customer satisfaction and customer loyalty can mediate the impact of service quality on the loyalty of customers. The finding of this research work suggested that there was a non-linear relationship between the constructs and emphasizes that requirement to consider customer loyalty management as the method that includes various factors interacting with each other. It had been found form this research work that Customer contentment is becoming one of the most necessary objectives which any organization looking for long-term association with buyer considers as the top main concern.
Research Objectives
The physical distribution is significantly referred as the interrelated movements from the suppliers’ end so that buyers can attain time and placed based utility. Therefore, from this traditional definition of the physical distribution it can be easily assumed from the perspectives of the customers that the mechanism of physical distribution ensures the availability of the necessary products. According to Gill and Allerheiligen (2013), is has been observed that majority of the supply chain and logistics related scholars note the physical distribution as a key concept of general logistics. However, various scholars also consider physical distribution as the marketing customer service. As stated by Wilkinson (2013), physical distribution mainly concentrates on the dealing of finished products. It has been also identified that this particular framework can be also deemed as a part of an outbound logistics of any given organization. The physical distribution mechanism is also responsible for incorporating relationship between the customers and any specific organization. It has been opined by Tucker (2013) that physical distribution immensely helps the customer service in the form of provision of time and place utility to the customers. According to Dadzie (2013), physical distribution has a significant role in the contemporary market and the importance of this particular system has been rising with the passing time. It has been also identified that effective physical distribution service, especially the it’s attendant feature have the ability to provide a sharp competitive edge over rival companies (Ahi and Searcy 2013). The major condition of creating a robust physical distribution system is provision of appropriate amount of correct product at the right place at the punctual time in the proper condition at the reasonable price with the efficient information (Ellram and Cooper 2014).
As identified by Heskett (2013), there are several major functions, which are considered as the basic activities of physical distribution. These activities are storage of goods, financing, transporting, selling as well as buying. However, physical distribution also needs to concentrate on prevention strategies regarding price dropping, destruction as well as damage of the products (Simpson et al. 2015). These particular events are considered as the major risk factors of physical distribution system. In addition to that, it has been also identified a current trend of physical distribution service that has been highly effective to create necessary confidence towards the system (Christopher et al. 2013). It has been observed that the physical distribution organizations have enabled the customer to have access of after sales service that would minimize the risk of distribution service and would be able to provide enhanced customer service (Beske and Seuring 2014).
Literature Review
Rao et al. (2014) has been quite successful to identify that the distribution can be considered as the major factor for external resources. It has been disclosed that although the physical distribution service is less visible part of marketing just like channels and logistics management, it is quite necessary and important for achieving desirable success for the company (Bookbinder and Dilts 2016). In comparison with advertisement, physical distribution has always been highly unattractive part of marketing. Nevertheless, marketing functions of any company cannot be performed with greater success without an effective physical distribution system. From the evaluated study of the market, it can be easily observed that the some wholesalers, retailers as well as producers are common part of the distribution channel (Hernández et al. 2013). It can be easily noted that physical distribution channel really is a set of correlated organizations. This particular channel is highly effective for simplifying the relationship between customer and producer (Turker and Altuntas 2014).
There are several intrinsic differences between goods and services. According to Orel and Kara (2014), there is four major distinctiveness or attributes of services. These attributes greatly affect marketing program of business organizations. Those attributes are intangibility, inseparability, variability and perish ability.
Intangibility: Lack of tangible assets can be seen in terms of services as service includes performance or actions rather than objects. Services are known as transient performance that can only be experienced when delivered. As mentioned by Bansal and Taylor (2015), services cannot be stored and that is why; it is extremely difficult to monitor and manage any fluctuation in demand. As services cannot be seen, heard or smelled, customers look for suggestions about service quality from place, people, equipment and price that they can see (Potter et al. 2016).
Perish ability: Perish ability is the second characteristics of services that refer to the fact that it is not possible to store, resold, or return the services (Fredendall and Hill 2016). Periods of peak demand cannot be organized in advance by manufacturing and storing services. Opening of services occurs only at a point of time and when it is gone (Olhager et al. 2015). It is mandatory to have useful and strong service recovery strategies to manage situations where things have gone wrong. Besides, at services cannot be inventoried, it is challenging to develop forecasting demand levels and to plan ahead of capacity utilization.
Inseparability: Inseparability is known as a concurrent production and utilization of services. It is known that goods and produced and can be sold later. However, it is not possible in terms of services. Services must be performed and consumed at the same time and that is why; mass production is absolutely impossible (Orel and Kara 2014). Satisfaction of consumers entirely depends on what happens in “real time” that includes the attitude and action of the employees and their way of communication with the consumers.
Previous Research
Variability: It is already mentioned that services is produced and consumed concurrently. On the other hand, as people make up part of the offered service, it can be stated that service is forever exclusive (Schönsleben 2016). It takes place only once and can never be done again. Diverse clients expect dissimilar types of performance and based on the performance they provide different responses (Chou et al. 2014). Therefore, it is important for frontline employees to enhance and adjust their attitude for each customer. It will help them to meet the expectations of consumers and overall satisfaction.
Several arguments are speculations are there to describe differences between goods and services based on discrepancy in product characteristics. The biggest different between services and goods is service needs some level of interaction with the consumer (Shi et al. 2014). This type interaction may be short; however, it must be there for the service to be completed. On the other hand, goods are manufactured in a facility that is spate from the consumer. Besides, services are unpreserved and dependant on time and unlike goods one cannot store services (Alfred 2017). If a product of good s defective, then it can be scrapped. However, if delivered service is not good, the chances are very low that the company can make up for that. On the other hand, service is known as an intangible method that no one can measure or evaluate. On the other hand, good is a tangible method that can be described using physical dimensions. This distinction has significant business implications since a service innovation cannot be patented where product innovation can be (Khan and Fasih 2014). Therefore, a new organization with an innovative service method must expand rapidly before rival companies copy this method. Service, as it is intangible, provides challenges also for companies (Mangan et al. 2016). It cannot be tested before purchase like physical products.
The conventional marketing mix includes for attributes, which are product, price, place and promotion. However, as services include some unique characteristics; this traditional marketing mix is not enough to describe the service marketer’s job (Aguezzoul 2014). In order to properly describe service marketing mix, three additional Ps must be included which are people, physical evidence and process.
People: This attribute includes all the human actors who play a major role in service delivery and influence perception of consumers. It includes organization’s employees, the customer and other customer in the same service environment. Most of the services need personal communication between employees and customers (da Mota Pedrosa et al. 2015). This communication can significantly influence consumer’s awareness of service quality. Therefore, service organizations face major problems when selecting and training its employees to do their job with perfection. As mentioned by Wu and Liao (2016), it is highly important to develop a customer-oriented culture in the workplace which will help to empower employees to deliver quality services.
Sometimes, services are experienced at the provider’s facilities. In that case, the factor “people” also includes other consumers who may be present in the delivering of a service.
Physical evidence: Physical evidence refers to the atmosphere in which the service will be delivered. It also includes the environment where an employee of a firm and consumer will communicate along with any tangible component that facilitates presentation of communication of the service (Ariff, et al. 2013. Most of the service organizations are trying to standardize the intangible mechanisms of the service come upon by scripting their workers. The physical confirmation cues deliver great chances for any organization to send continuous and strapping messages that relates principle of the organization and the nature and quality of the service (Wilkinson 2013).
Process: According to Izogo and Ogba (2015), it is known as the original method or instrument and course of actions by which the service is provided. The original deliverance steps the experience of the customers or the equipped flow of the service that also supply confirmation for the consumers (Wolf 2014). The evidence includes whether the provided service follows an invention line or the method is a modified one.
In order to understand the concept of service quality characteristics of service leaders are hereby mentioned below.
Service vision: Service vision means an integral part of the organization itself. Most of the leaders in service organizations see the quality of service as the foundation for competing (Paul et al. 2016). Most of the service leaders also understand that service quality can never end and needs continuous improvement and regular adaption.
Setting high standards: As products are not sufficient enough to have competitive advantage, leaders of service industry aim to deliver quality services (Hapsari et al. 2017). In this scenario, it is significant to provide attention to small actions. Rival companies might see it as trivial sets and it will set the tone for managing bigger problems.
Integrity: Leaders of service organizations show the important characteristic of integrity. It can be actually accomplished by doing the right thing even when the situation does not demand for it (Amin et al. 2013). As a result of this integrity, leaders will gain trust of his associates without which it is not possible to gain followers. Service leaders understand the interconnection between service superiority and employee pride.
On the other hand, some other analysts see service quality as the purpose of what consumers expect and how good the service organizations perform in delivering the service. According to Ndikubwimana and Berndt (2016), service quality is the degree and direction of incongruity between service demand of consumers and perception of consumers.
Service Quality Dimensions: According to George and Kumar (2014), service quality can be described using two dimensions which are technical elements and functional elements. Technical elements mean what the consumers get from the service (Leuschner et al. 2014). On the other hand, functional element exhibit how the service is provided.
For customers, it is quite tough to perceive quality of service than that of product quality. This is why; it is difficult for the marketers to understand the criteria that consumers use to measure quality of services. According to Osman and Sentosa (2013), customers consider service delivery and the result of service while evaluating service quality.
Figure : Professed service quality
(Source: Kant et al. 2017)
From the figure above, it can be said that evaluation of service quality is done during the service delivery method. It is important to understand what the requirement of the consumers is and what they assess. Most of the times, it is asked to enhance quality without mentioning what is meant by service quality (Karim and Chowdhury 2014). It is not possible to deliver better services to the customers without defining it. In the literature of service quality, it must be understood that quality of a service is whatever the consumers perceives it to be.
As mentioned by Gronroos, there are two dimensions that can describe quality of service perceived by consumers which are outcome dimension and proves-related dimension. Image of an organization is an important aspect that either positively or negatively influences marketing activities (Zaibaf et al. 2013). In this scenario, image of an organization means its capability to influence perception of the consumers in terms of goods and services that are offered. Therefore, it can be said that image always have an impact on the buying behavior of the consumers. Image can influence mid of the consumers through combined effects of advertising, word-of-mouth, public relations and physical image (Haksever et al. 2015). A number of researches also showcased that service quality is the most significant determinant of image.
Most of the consumers carry their previous experiences of a service organization to each encounter because they often have regular contacts with the same service organization (Kamphues and Hegmanns 2015). Therefore, it can be said that image is another significant constituent in the professed service quality model. A well-developed image can be considered as an asset for any organization as its impacts on customer perceptions of the interaction and operations of the firm in many aspects (Martínez-Jurado and Moyano-Fuentes 2014). If a service organization has a positive image among its consumers, then minor mistakes will be neglected (Dabholkar 2015). If the image of a service organization is negative, then the affect of a mistake will be magnified in the mind of the customers.
SERVQUAL model was introduced in the year of 1985 by Parasuaraman and his colleagues in the United States. According to this model, service quality can be described as the result of comparison that consumers evaluate between their expectation about the services and the performance at which the service is delivered (Hazen et al. 2014. If the differences between the expected level of service and delivered level of service are examined, then it will be easy to identify the places of improvement in service mix. According to Afridi et al. (2016), Parasuraman identified 10 main components of service quality which are reliability, responsiveness, competence, access, curtsy, credibility, security, customer knowledge communication and tangibles. While doing succeeding research, service dimensions were distorted into five categories which are tangibles, responsiveness, reliability, empathy and assurance.
Reliability: Reliability can be described as the capability to perform the promised service accurately. In other words, reliability means that an organization provides its services as per its promised related to service provision, problem resolution and pricing (Collier and Bienstock 2015). Consumers must do business only with those companies that keep their promises. Among five dimensions, reliability is considered as the most paramount determinant of perception of service quality gap.
Responsiveness: It is known as the willing to help consumers and to deliver prompt services. This dimension includes attentiveness and promptness in dealing with consumers request, complaints, problems and questions (Nikolaidis et al. 2016). Responsiveness is also responsible for capturing the notion of flexibility and capability to customize the service according to the needs of the customers.
Assurance: Assurance is the knowledge of the employees along with courtesy and capability of the company to motivate trust and confidence (Afridi et al. 2016). This dimension is extremely important in those sectors where decision making is risky and customers feel uncertain about their ability to evaluate outcomes.
Empathy: Each customer has his own demand and his own way to evaluate the quality of services. If an organization can implement personalized services or customized services then it will understand the need of the consumers.
Tangibles: Tangibles are known as the appearance of physical facilities, equipments and interaction materials (Collier and Bienstock 2015). It delivers physical representation or image of the services that consumers, mostly new consumers will use to assess quality.
The Five Gap model helps to describe what marketing managers must do to understand service quality from the perspective of customers (McKinnon et al. 2015). It also helps to understand which main criteria they trust their consumers used in judging the quality of service delivered by their companies.
Gap 1: It describes the dissimilarity between the consumer’s original expectations and that of perception of management related to customer expectation. A degree of correlation was there between the executive and consumer perception of service quality (Allred and Addams 2013). However, some discrepancies were also there in terms of confidentiality, safety and the size of service firms determining the capacity to offer quality service levels.
Gap 2: It is the dissimilarity between the perceptions of management related to consumer expectation and the firm’s promised service standards (Kwan et al. 2016). The gap takes place when a service organization fails to set expected consumer service standards because of minimum of zero understandings.
Gap 3: This gap takes place when a service organization fails to meet the service quality as mentioned in their standards (Rudenko and Katsnelson 2014).
Gap 4: This occurs for inflated service standards that are being interacted to the customer and farm has failed to meet those standards.
Gap 5: It is dissimilarity between the expectations of the consumer regarding the service provided and the original service experience (Czajkowska and Stasiak-Betlejewska 2015).
It had been found that customer satisfaction depends upon the customer’s experience developed on a particular service encountered. Wu and Liao (2016) stated that service quality is considered as an important determinant of buyer fulfillment. It had been found that service quality is the outcome of services provided by different service providers in a company. According to Ariff et al. (2013) customer satisfaction is related with the difference between predicted and perceived service. On the other hand, Izogo and Ogba (2015) argued that attitude of a specific group of customer is more enduring and less condition oriented.
In order to mention about the association between service quality and buyer fulfillment, Hapsari et al. (2017) stated that service quality would be precursor to the satisfaction level of customer regardless of whether these constructs are transaction specific or cumulative. It had been found that service quality and customer’s satisfaction have some major things in common. Although Paul and Srivastay (2016) argued that customer satisfaction is much boarder concept. However, service quality is mainly focused majorly on various dimensions of services (Osman and Sentosa 2013). Customer satisfaction depends on various other facts such as product quality and price of products.
Figure : The relationship between customer satisfaction and customer’s perception about quality
(Source: Heskett 2013)
From the above given figure, the association between service quality and customer satisfaction could be found. According to George and Kumar (2014), service quality can be defined as focused evolution that can reflect the perception of customers about different aspects. These aspects are such as receptiveness, declaration, reliability, tangibility and compassion. Amin et al. (2013) stated that customer satisfaction is more comprehensive and it can be prejudiced by factors such as price, quality of products and quality of services. Hapsari et al. (2017) mentioned that personal factors and situational factors also have significant impact on customer satisfaction.
According to Osman and Sentosa (2013), from the definitions of customer satisfaction and service quality, it had been analyzed that both these aspects are related with each other and various other aspects of business. Some of the previous researchers agree with the fact that quality of service can help to determine satisfaction level of customers for a specific company. Ndikubwimana and Berndt (2016) stated that, high level of service quality can improve the customer’s satisfaction level. George and Kumar (2014) argued that service quality is more conceptual concept as it can be influence by perceptions of the price or by the experience of other that may not be so good. On the contrary, customer satisfaction level is more focused on feeling of customers about a specific product or service.
Sarraj et al. (2014) discussed about the details to bring in the customer value in the study of relationship between service quality and customers satisfaction. With the help of SERVQUAL model, the service quality of a specific product can be analyzed. Chou et al. (2014) had developed a study to analyze the dynamic relationship between customer value, service quality and customer satisfaction and their influence on the future behavior of customers. In this study PLS-GRAPH Package was used for the analysis (Christopher 2016). In this study, it had been mentioned that service quality could enhance customer value and in term increase the level of customer satisfaction for an organization.
Figure 8: Conceptual Framework
(Source: Created by Author)
Methodology chapter has been proven to be most essential part of every academic research since the beginning of research work. It immensely assists to adopt most suitable and effective research technique that would help the overall project to guide towards proper and efficient research findings. In this context, this particular chapter has selected most realistic and effective research methods, which would be highly critical for understanding the influence of distribution service quality on the customer satisfaction. The research techniques that have been emphasized are appropriate research design, effective population and sampling process, adequate data collection method, significant instrumentation, efficient data analysis method as well as necessary pilot test. These particular methods have immensely guided the research project through a strict guideline and ensured a smooth operation throughout the study. In other words, the research methodology has been proven to be most essential chapter for conducting an impressive research project.
Research design is one of the most important research methods among all of the research activities. The research design helps the research project to construct a proper focus, framework as well as schedule of research activities (Morgan 2012.). It has been long proven that without a proper research design any research work cannot attain fruitful research outcomes. There are three major aspects of research design, which are selected in any research project (Onwuegbuzie and Leech 2012). These research designs are research philosophy, approach and design. There are research philosophy four classifications of research philosophies, which are interpretivism, pragmatism, realism as well as positivism. The realism believes that the response of any participant directly reflects the research findings (Brannen 2012). On the other hand, the interpretivism thinks the interpretation of research worker is the direct reflection of research findings. At the same time, pragmatism states that the research project cannot acquire proper research findings with singly approach. It need to be attained through multitude of studies with different research process (Toloie-Eshlaghy et al. 2012). However, positivism research philosophy believes that the research project needs to adhere with scientific techniques for attaining effective research outcome. The positivism philosophy emphasizes on the eradication of human influence on the data that would contaminate the same (Cameron 2012). In the current context, the proper understanding of the distribution service quality’s influence on customer satisfaction could only be acquired with the scientific approach and devoid of human influence. Therefore, the research project has selected the positivism research philosophy.
At the same time, the research approach can be classified in two core parts, which are deductive and inductive. While, inductive only focuses on generation of new theories through studying the data pattern and style, the deductive approach focuses on testing various hypotheses to depict the contemporary situation of the research issue (Ellis and Levy 2012). As the current issue has not been focused on generating any theory and concentrated on understanding the influence of distribution service quality on customer satisfaction, the deductive approach has been selected as most suitable technique for this study (Truscott et al. 2012). On the other hand, research design can be categorized in three major parts, which are exploratory, explanatory as well as descriptive. Whereas, the exploratory focuses on exploring the incomplete research aim, the explanatory emphasizes on explaining the vague research aim through various research activities (Freshwater 2012). On the other hand, the descriptive design is used for describing the research aim with detailed understanding. In this context, the research project has selected mixed method of descriptive and explorative design so that the research project can unearth the influence of distribution service quality and detail them with evaluated study (Saunders et al. 2011).
The proper sampling techniques are highly crucial for maintaining an effective quality of the entire data collection (Bergh and Ketchen 2011). It has been noted from various academic research that the defective sampling technique can highly contaminate the collected data and thus has the capability of reducing the overall quality of entire research findings. In addition to that, the sampling method is also highly depended on the proper selection of population (Hanson and Reilly 2011). The population is highly effective for pointing the realistic reflection of the research issue. Therefore, it is necessary for the research project that the population has the insight on the research project. This way they would be able to provide most effective response on the research topic (Roger 2011). There are two different sampling techniques, which are mostly practiced in every research projects. These research projects are probability sampling technique and non-probability sampling technique. The probability sampling uses randomized process for selecting respondents so that the responses can be collected without any contamination of human influence (Hooper 2012). On the other hand, the non-probability sampling techniques use biased process for selecting respondents so that they can attain insightful responses on the research topic.
In the current context, the population has been selected from the 50 DHL professionals who have a distinct knowledge on the distribution service quality. At the same time, the snowball non-probability sampling technique has been selected as the respondents need to be knowledgeable of the distribution service quality. In addition to that, 3 managers of DHL have also been selected for collecting insightful open ended responses.
Data collection method is one of the major stages of the entire research project, as it ensures the attaining most realistic and efficient research findings of the project (Bernard 2011). Since, the beginning of academic research data collection has served a greater role in establishing the base of the research projects (Morgan 2012). There are two basic categories of data used in the research, which are primary data and secondary data. The primary data refers to the contemporary data that are collected from the respondents. On the other hand, the secondary data is known by the data collected from the literature such as books, journals, newspapers as well as internet (Leavy and Hesse-Biber 2012). In the current context, the primary data has been selected to understand the contemporary scenario of the distribution service system. In addition to that, data analysis can be also classified on the basis of their nature (Onwuegbuzie and Leech 2012). The data that indicates the quantitative nature such as charts, rates and percentages are used in quantitative data analysis. The data that reveals the qualitative nature such as styles, patterns and reasons are known as qualitative data analysis. The research project has selected both of the quantitative and qualitative data analysis so that the research project can attain an evaluated understanding of distribution service quality (Leedy and Ormrod 2012). The current study is focused on identifying the impact of distribution service quality on customer satisfaction. In this context, the mixed method of quantitative and qualitative study would be helpful to identify detailed aspect of the research issue.
Instrument is the essential factor of any successful research project. Any effective research is highly depended on the proper selection of instrumentation (Creswell 2011). There are multitudes of research instrument utilized in the academic research. The most popular research instruments are questionnaire, interview, focus groups, experiment as well as observation (Crouch and Pearce 2012). Questionnaire is the most commonly used tool that focuses on collecting relevant and efficient research data from the responses provided by the participants of the study. The questionnaire must be formed in such a manner that the response would directly answer the research questions (Crowther and Lancaster 2012). Interview is another popular instrument for collecting data as a form of verbal interaction with the participant. Generally, the questions of the interview are focused on attaining open-ended response from the participant. Another crucial research instrument is focus groups, which is conducted by creating a certain topic for open discussion within a group of participant (Denzin and Lincoln 2011). These discussions would be aimed to establish specific conclusion of the focus topic. In addition to that, another research instrument is observation, which is used many times. In this process, a certain event, scenario as well as case study are observed for collecting relevant research data (Dul and Hak 2012). On the other hand, the experiment instrument tests the research object to obtain immediate result. This particular instrument operates through various trial and error stages.
In the current context, the research project has selected the survey process in order to conduct the quantitative data analysis. At the same time, the interview process would be selected in order to conduct the qualitative data analysis (Toloie-Eshlaghy et al. 2012). The survey and interview has been designed to ensure the validity of the research so that the research findings truly reflect the assumed phenomenon. In addition to that, the research instruments have also been focused on maintaining the reliability of the research (Gummerson 2012). The research findings would be consistent if multiple studies would be taken in same research issue.
The Data analysis is most crucial part of every research project as these particular research activities are responsible for evaluating the collected data. Therefore, the research study needs to select a most effective and suitable research tools in order to acquire immensely realistic research findings (Truscott et al. 2012). There are multitudes of data analysis procedures have been used in varieties of research project throughout the history of academic research. In the current context, the research project has selected descriptive statistics for quantitative data analysis. The central tendency of descriptive statistics has been most helpful to derive the research outcomes (Hesse-Biber 2012). On the other hand, the observational analysis has been most helpful to evaluate the qualitative data collected from interview session.
In order to attain most effective research outcome, the current research project has conducted a pilot test (Lancaster 2012). The pilot test is referred to the initial testing that is conducted for determining the effect size, adverse events, cost, time as well as feasibility of the study. In addition to that, the pilot test is also conducted to improve the design of the study (Brannen 2012). In other words it can be considered as the small trial of the actual study which is conducted to attain a smooth and effective operation throughout the study. In this context, the pilot study has been highly helpful to provide an insightful understanding on various issues that have to be faced at the time of conducting the research project.
Conclusion
The research methodology chapter has been highly essential for the entire research project. This particular study has selected positivism research philosophy, mixed method of exploratory and descriptive research design as well as deductive approach. The non-probability sampling technique has been used for collecting the data of quantitative as well as qualitative data analysis. The survey and interview have been used as the major instrument of the research project. Therefore, it can be observed that the methodology chapter has been most effective for guiding the research project towards successful accomplishment. Hence, it can be easily concluded that the current research project has been greatly benefitted from the research methodology.
The data analysis chapter has been proven as most significant part of this particular research project. The data analysis chapter has helped the project to attain most realistic and effective research outcome. The quality of the data analysis immensely influences the standard of the research findings. In this context, the descriptive statistics has been highly helpfully to analyze the quantitative data from 50 supply chain professionals of DHL. In addition to that, the qualitative data collected from 3 managerial professionals of DHL has been analyzed by observational analysis process. In other words, this particular data analysis chapter has been highly effective for deriving an appropriate research findings.
The above discussion has been most successful to point out the evaluation of the data. The data evaluation has been attained from the response of a diverse group in the context of their age group, sex as well as work tenures. These diversities have been most successful to improve the quality of the data set, as the data set contains the perception of every group based on their age, sex and work duration. The data analysis has been quite effective to point out that the major factors of the distribution service management. It has been identified that the major factors of the distribution service management are delivery accuracy, physical security, internal processes as well as social environmental responsibilities. It has been observed in the literature review part that the accurate delivery and physical security immensely enhances the quality of the distribution service management. In addition to that, the internal processes increase the operational smoothness. In this context, the social and environmental responsibility would be most effective for improving the image of logistical company.
The data evaluation also revealed that the factors of the distribution service management enhance the customer satisfaction. Majority of the respondents strongly supported this particular argument. It has been observed in the literature review that the factors of the distribution service quality play a significant part in ensuring the satisfaction of the client. It has been also disclosed from the data evaluation that the performance of the distribution service quality is greatly influential for satisfying the customers. the data evaluation has been quite successful to point out that the performance of the DHL’s distribution service quality is not satisfactory enough. The review of the literature has indicated that majority of the logistics company have been plagued by various distribution related issues for a long time.
In this context, the data analysis has played a very significant role to identify the major issues, which are responsible for the poor performance of DHL’s distribution service quality. It has been revealed that the major issues, which hinder the distribution service system of DHL are related to inventory management, supplier management, safety management, quality management as well as mitigation of the risk. The majority of the respondents have been able to disclose that the issues related to the distribution service directly hinder the customer service. The literature review has expressed that the issues of the distribution service have the capability to create obstacle fulfill the expectation of the customers. Therefore, it has been always a major concern for the logistics companies.
The data analysis has also disclosed that the barriers of distribution service system are largely responsible for reducing the customer satisfaction. As the obstacles of distribution service keep the organization from meeting the expectation, it creates greater dissatisfaction and annoyance among the customers. The data analysis has been able to identify several major factors, which are essential for meeting the customers’ expectation. These factors are product safety, packaging, accuracy as well as punctuality. These factors greatly focus on the basic demand of the customers and thereby increase the customer satisfaction. In addition to that, the data evaluation has been able to find that there are several ways to eradicate the distribution service issues. These suggestions are customer feedback, steady communication with shipment department, prior inventory management as well as compensation plan.
Q1. What is the major factor of distribution service quality for enhancing customer satisfaction?
First manager has been able to disclose that the most important factor of the distribution service quality to enhance the customer satisfaction. It has been identified by him that delivery accuracy is the primal influencer of distribution service quality. At the same time, the second manager has been able to identify that the physical security is most crucial determinant of the distribution service quality in the context of enhancing customer satisfaction. On the other hand, the third managers stated that internal processes as well as social and environmental responsibilities are the major factors of distribution service quality management.
Q2. What are the issues of distribution service quality for enhancing customer satisfaction?
First manager has been able to disclose that the most important issue of the distribution service quality is inventory management issues that can enhance the customer satisfaction. At the same time, the second manager has been able to identify that the supplier management issue and safety management issue are most crucial issues of the distribution service quality in the context of enhancing customer satisfaction. On the other hand, the third managers stated that quality management issues as well as risk mitigation are the most critical issues of distribution service quality management.
Q3. What is the most effective technique of distribution service, which DHL can undertake to enhance customer satisfaction?
First manager has been able to disclose that the most helpful way to enhance the distribution service quality is responding to the customer feedback. At the same time, the second manager has been able to identify that the establishment of steady communication with shipment department is most crucial way to enhance the distribution service quality. On the other hand, the third managers stated that proper inventory management as well as compensational plan are the major way to enhance the distribution service quality management.
Conclusion:
The conclusion chapter has been most effective for concluding the research outcome. The research has been able to derive most realistic findings in the context of finding the relationship between distribution service and customer satisfaction. The current chapter has been immensely focused on linking the objectives with the entire research project. It has disclosed that every research activity has been conducted with the aim of fulfilling the research objectives. In addition to that, the data analysis has been able to provide relevant suggestions for improving the distribution service quality so that DHL can attain greater customer satisfaction. Furthermore, the conclusion chapter has been also able to provide a detailed description of future scope of study and limitation of study.
- To investigate the major factors of the distribution service quality
This particular objective has been quite successfully attempted to be linked with the current research project. The research project has been aimed to identify the relationship between the distribution service quality and the customer satisfaction. With this particular aim, the literature review has been able to investigate the aspects of distribution service quality. In addition to that, the data analysis has been able to also enquiry about the most important aspects of the distribution service quality. The identified aspects of the distribution service quality are delivery accuracy, physical security, internal processes as well as social and environmental responsibilities. Therefore, it can be easily concluded that this particular objective has been efficiently linked with the entire research project.
- To explore the process of satisfying the customers through distribution service
This particular objective has been effectively tried to be linked with the entire research project. As the primary aim of the research was finding out the relationship between the distribution service quality and customer satisfaction, the literature review has been essentially focused on identifying the linkage between the same. The data analysis part of the research project has also exclusively concentrated on the identification of various key pointers, which are influential for the customer satisfaction. In this context, it has been observed that the punctuality, accuracy, packaging as well as product safety play8s a significant role in satisfying the customers. Therefore, it can be easily assumed that this particular study has been able to establish a evident linkage with the research objective.
- To identify the barriers of distribution service quality
This objective played a significant part in conducting the entire research project. As the topic ‘relationship between distribution service quality and customer satisfaction’ is greatly depended on the issues that is critical to reduce the customer satisfaction, the literature review has tried to provide a greater understanding on these issues of distribution service quality. In the same context, the data analysis has been able to identify specific issues, which effectively reduce the customer satisfaction. The major issues that have been identified are inventory management issues, supplier management issues, safety management issues, quality management issues as well as risk mitigation.
- To recommend the strategies for improving the distribution service quality
The research project has been highly inclined to provide suitable and effective suggestion for improving the distribution service quality. In this context, the literature review has been able to identify the present trends and techniques that have been used in the logistic sector for enhancing the customer satisfaction. In addition to that, the data analysis has been quite efficient to disclose several major ways to improve the distribution service quality. These ways are customer feedback, steady communication with shipment department, proper inventory management as well as compensation plan. Therefore, it is evident that this particular objective has been successfully linked with the entire research project.
The data analysis has been quite effective to point out several key suggestion for improving the distribution service quality in order to enhance the customer satisfaction. These suggestions are described below:
- Improvement of information flow management:
The company should initiate ICT software in order to enhance the management of information flow. The implementation of the ICT system must be incorporated internally as well as throughout the supply chain. This improved flow of information would eventually increase the customer satisfaction.
- Improving the order process:
The company needs to enhance their order process so that the customers can benefit from the smooth process of order placement. The company should make easier the order process in such a manner that the order process comply with the delivery terms.
- Employing Customer contact personnel:
The organization also needs to employ new personnel that can establish and maintain effective contact with the customers. This way the customer would be able to track their order more conveniently. The organization also can provide necessary training for the personnel to provide greater customer service.
It has been observed throughout the history of academic research sector that every research project has faced several limitations at the time of conducting their study. The most common limitations that have been identified are limited time and budget crunch. The current research project has been also plagued by these particular limitations. The study has faced a very severe time crisis at the time of conducting the research activities. Due to this time crisis, the project has not been able to allocate proper time for the interview session. Therefore, the quality of data analysis has been somewhat compromised. Moreover, the budget crunch has forced the project to use second graded software for analyzing the data. Therefore, the quality of the data evaluation has been reduced.
This particular project has been a masterpiece of academic literature. The project has been quite efficient to provide a detailed understanding on the relationship between the distribution service quality and the customer satisfaction. The logistics professional would be most beneficial from this study as they would be able to identify the major factors, issues as well as potential techniques in the context of distribution service quality. They will be able to enhance customer satisfaction with the proper implementation of the distribution service quality. In addition to that, the future researchers would be also assisted to conduct further study on the same topic.
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