Applying loss aversion to investigate service quality in logistics

Chia‐Lin Hsu · Mu‐Chen Chen · Kuo‐Chien Chang · Chuang‐Min Chao

62 citations0/0 files storedInternational Journal of Operations & Production Management

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Customer Service Quality and Loyalty Consumer Behavior and Marketing Influence Service and Product Innovation

Abstract

Abstract Purpose – Using the concept of loss aversion, this paper aims to investigate the relationship between service quality and customer loyalty in the home delivery industry. The second purpose of this paper is to investigate the moderating effect of service convenience in the relationship between service quality and customer loyalty. Furthermore, this paper attempts to demonstrate the existence of a moderating effect either on the service quality loss (SQLOSS)‐customer loyalty link, or on the service quality gain (SQGAIN)‐customer loyalty link, or on both. Design/methodology/approach – In this paper, the research model and hypotheses are constructed through a literature review. Data are collected by a questionnaire survey, and the adapted SERVQUAL scale is taken as the measurement instrument. Structural equation modeling is adopted to confirm the above relationships. Findings – From the results come the finding that a loss in service quality has a greater effect on customer loyalty than that of a SQGAIN in the home delivery industry. This paper also proves that the relationship between service quality and customer loyalty is moderated by service convenience. Originality/value – This paper demonstrates the effect of asymmetric response of service quality on customer loyalty.

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References

1999Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives 1979Prospect Theory: An Analysis of Decision under Risk 1988Prospect theory: An analysis of decision under risk 1992Alternative Ways of Assessing Model Fit 1985A Conceptual Model of Service Quality and Its Implications for Future Research 1988SERVQUAL: A multiple-Item Scale for measuring consumer perceptions of service quality 1992Advances in prospect theory: Cumulative representation of uncertainty 1977Estimating Nonresponse Bias in Mail Surveys

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