CUSTOMER SATISFACTION AND LOYALTY IN

LOGISTICS SERVICES DHL EXPRESS (I) PVT LTD

A PRO1ECT REPORT
Submitted in Partial fulfillment of the degree of requirement for the award of

MASTER OF BUSINESS ADMISTRATION
(Marketing & HR)


Submitted by
GAURAB DUTTA
Registration No: P07BA126


Under the guidance of
Dr. S. Lalitha
Prof. in Management Studies














BHARATH UNIVERSITY
SCHOOL OF MANAGEMENT STUDIES
Chennai 600073
India
May 2009


School of Management Studies
173, Agaram Road, Selaiyur, CHENNAI 600 073
Ph: 044-22290125, 22290742; TeleIax: 044-22293886
Web: www.bharathuniv.com; Mobile 09380408052




CERTIFICATE


This is to Certify that the Project report on ~CUSTOMER
SATISFACTION AND LOYALTY IN LOGISTICS SERVICES DHL
EXPRESS (I) PVT LTD is a bonafide work and submitted by Mr. Gaurab
Dutta in partial fulfillment of the degree of Master of Business Administration,
School of Management Studies, Bharath University, during 2007-2009.

This certificate is issued based on the declaration by the candidate.



Dr. S. Lalitha Prof. N. M. 1affer
(Project Guide) (HOD)


Project Report evaluated & Viva Voice held on ......




INTERNAL EXAMINER EXTERNAL EXAMINER


DECLARATION BY CANDIDATE


I declare that this project work on ~CUSTOMER SATISFACTION AND
LOYALTY IN LOGISTICS SERVICES DHL EXPRESS (I) PVT LTD is a
bonafide work done and submitted by me and the research work was carried out
under the guidance of Mr. Rajkumar Krishnan, Clearance Supervisor, DHL
Express (I) Pvt. Ltd. and under overall supervision of Dr. S. Lalitha, Professor,
School of Management Studies, Bharath University.


I further declare that this Project Report does not form of any other
project reports or dissertations on the basis of which a degree was awarded or
conferred on an earlier occasion on me or any other candidate.




Place: Chennai
Date: Gaurab Dutta









ACKNOWLEDGEMENT



I express my deep sense of gratitude to our beloved chairman Dr. S.
1agathrakshagan for giving me a wonderful opportunity for doing Master of
Business Administration in this esteemed institution

I wish to place my deep sense of gratitude to Mr. Rajkumar Krishnan,
Clearance Supervisor, DHL Express (I) Pvt. Ltd. For his valuable guidance
throughout the project.

Foremost, I would like to thank Dr. N. M. 1affer, HOD, School Of
Management Studies, Bharath University, for his intensity and focus on technical
aspects and for taking all efforts to make my journey smooth on the information
technology super highway. It is a privilege to have him as our faculty.

I consider it a great privilege to be under the guidance of Dr. S. Lalitha,
Professor, School of Management Studies, Bharath University. The contribution
and significant role played by her help me in preparation and submission of
project report in time.

I gratefully acknowledge the team of staff members in M.B.A department
for helping me in all aspects and giving their valuable ideas for making my
project efficient and effective. Last but not the least I would like to thank my
parents and friends for their valuable support and encouragement through out
the course of the project.



Gaurab Dutta




CONTENTS




Chapters Page No.
1. Introduction 1
2. Company ProIile 15
3. Review oI Literature 19
4. Research Methodology 29
5. Data Analysis and Interpretation 35
6. Findings 55
7. Suggestions 57
8. Conclusions 59
9. Annexure I
10. Bibliography II

INTRODUCTION

Research Motivation


A multitude oI companies today has already identiIied the need to create a
loyal customer base and acknowledges that maintaining existing customers and
extending business with them is signiIicantly less expensive than acquiring new
customers. Empirical prooI oI the proliIeration oI such customer loyalty eIIorts in the
business world is e.g. provided in the Iorm oI loyalty programs, which many
companies have installed during the past years. By engaging in eIIorts aimed at
creating customer loyalty, which in turn Iosters Iinancial success in monetary terms
Iirms react to increasing competitive challenges.


Within research, the investigation oI customer loyalty gained importance when
the classic marketing paradigm with its instrumental and transactional orientation
proved unsuitable in the context oI longer-term business relationships. Instead, the
relationship marketing approach, which is speciIically concerned with the study oI
relational ex-changes, gained importance within research, serving as a conceptual
Ioundation Ior the majority oI customer loyalty researchers.


The question oI how loyalty develops has been subject to an abundance oI
research, leading to an expansive body oI literature on loyalty determinants. The
extant literature exploring diIIerent Iactors and their constituent eIIects on loyalty,
however, reveals a strong Iocus on consumer goods and industrial equipment settings,
while industrial services have received relatively little attention so Iar. In addition, the
majority oI articles incorporates merely a Iew potential determinants and thus Iails to
draw a comprehensive picture oI the mechanisms oI customer loyalty Iormation.
Place: Chennai

Just like other businesses, logistics service providers (LSPs) are Iaced with
increasing competitive pressure that urges them to concentrate not only on operational
business processes, but also on an eIIicient and eIIective customer management. In
the US alone, LSPs` revenues grew Irom US-$ 31 billion in 1995 to US-$ 85 billion
in 2004 and logistics outsourcing expenditures as a Iraction oI total logistics
expenditures are at over 40 and expected to rise even Iurther. One way to meet this
challenge oI rapid growth and expansion, according to Langley et al. is to Iocus on
establishing, maintaining, and developing relationships with customers.



An oIten proposed driver oI logistics outsourcing is the need to develop and maintain
competitive advantage, which customers oI LSPs intend to achieve through
concentrating on core competencies and re-engineering. Another important driver is
the ongoing globalization, which several authors regard as the most important
challenge that companies are Iacing. In this context, LSPs can play an important role
as Iacilitators oI global trade. Along with globalization, however, companies that
outsource logistics activities increasingly try to consolidate the number oI LSPs they
use globally. ThereIore, LSPs do not only have to devise sustain-able growth
strategies, but also have to develop intercultural management competencies, a
challenge hardly ad-dressed in LSP management literature.


While intercultural management deals with the inIluence oI culture on
management styles in diIIerent countries, it is also arguable whether a one best way
management paradigm is applicable even within national conIines. LSPs` customers
are extremely diverse and similarly, relationships between LSPs and their customers
can be expected to exhibit momentous diIIerences. As such, it is a crucial
management issue Ior LSPs to de-sign their customer loyalty eIIorts in a manner that
accounts Ior both cultural context and diIIerent relationship characteristics.

Research goals


As outlined in the preceding section, LSPs are conIronted with diverse
management challenges that result Irom continuous growth, globalization, and
customer diversity. The aim oI the present study thereIore is to identiIy determinants
oI customer loyalty in relationships between LSPs and their customers by explicitly
considering diIIerent characteristics and cultural contexts oI such relationships. In this
sense, the present research is positioned at the interIace oI marketing and logistics and
is intended to contribute not only to logistics research, but also to research in
marketing, customer loyalty, and cultural studies.


In order to address the concept oI customer loyalty, it is important to
understand the mechanisms underlying loyalty in the logistics outsourcing context.
For this reason, the starting point oI the present research will be the study oI
Wallenburg, who studied customer loyalty within relationships between LSPs and
their customers. On this basis, Iactors that can be surmised to determine customer
loyalty in such relationships will be proposed and interdependencies between these
Iactors will be identiIied. The resulting comprehensive explanatory model oI customer
loyalty will not only provide insights into the constitution oI customer loyalty, but
will also serve as the basis Ior subsequent analyses.

As stated previously, a globalizing marketplace and the need oI LSPs to render
logistics services on an international scale requires intercultural management
competencies. BeIore being able to apply such management techniques, though, a
thorough understanding oI cultural diIIerences between diIIerent countries is
necessary. The present study will thereIore provide a starting point Ior such analyses
by investigating cultural diIIerences between two important markets Ior logistics
outsourcing, the USA and Germany. Particular diIIerences between Germany and the

USA will be identiIied and applied to the previously devised customer loyalty model.
As a result, diIIerences between the two countries with respect to the Iormation oI
customer loyalty can be inIerred.


Finally, this study will investigate in how Iar diIIerent relationship conditions
inIluence the development oI customer loyalty. For this purpose, important
relationship characteristics will be identiIied and their moderating inIluences on the
customer loyalty model will be examined. This will provide inIormation on the
robustness oI the customer loyalty model versus relational contingencies and will
suggest iI it is necessary to diIIerentiate customer loyalty eIIorts accordingly.


Customer Satisfaction


The term logistics is oIten misinterpreted to mean transportation. In Iact, the
scope oI logistics goes well beyond transportation. Logistics Iorms the system that
ensures the delivery oI the product in the entire supply pipeline. This includes
transportation, packaging, storage and handling methods, and inIormation Ilow. The
impact oI logistics in the ability oI a company to satisIy its customers cannot be
overstated. All other eIIorts at modernization within a company would not bear Iruit
until the logistics system is careIully designed to Iacilitate the smooth and eIIicient
Ilow oI goods in the system.


The topic oI logistics is relatively new in India. There have been some
companies that have done work in this area, but a large number oI companies are only
now beginning to realize the beneIits oI designing and managing the entire supply
chain. With India joining the global marketplace, the role oI logistics assumes greater
importance.

The industrial policies in India have prompted manuIacturers to build plants in
remote, backward areas due to inexpensive land and tax beneIits. This poses some
serious logistical problems. Apart Irom a poor road and transportation network, the
existing communications system in India leaves a lot to be desired by any
international standard. It is in this context that logistics has to be considered in India.


Customer Satisfaction in 7 Steps


1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part oI interacting with a
customer. II you're not used to this sort oI thing it can be a pretty nerve-wracking
experience. Rest assured, though, it does get easier over time. It's important to meet
your customers Iace to Iace at least once or even twice during the course oI a project.



2. Respond to Messages Promptly & Keep Your Clients InIormed

This goes without saying really. We all know how annoying it is to wait days
Ior a response to an email or phone call. It might not always be practical to deal with
all customers' queries within the space oI a Iew hours, but at least email or call them
back and let them know you've received their message and you'll contact them about it
as soon as possible. Even iI you're not able to solve a problem right away, let the
customer know you're working on it.




3. Be Friendly and Approachable

A Iellow Site Pointer once told me that you can hear a smile through the
phone. This is very true. It's very important to be Iriendly, courteous and to make your
clients Ieel like you're their Iriend and you're there to help them out. There will be
times when you want to beat your clients over the head repeatedly with a blunt object
- it happens to all oI us. It's vital that you keep a clear head, respond to your clients'
wishes as best you can, and at all times remain polite and courteous.



4. Have a Clearly-DeIined Customer Service Policy

This may not be too important when you're just starting out, but a clearly
deIined customer service policy is going to save you a lot oI time and eIIort in the
long run. II a customer has a problem, what should they do? II the Iirst option doesn't
work, then what? Should they contact diIIerent people Ior billing and technical
enquiries? II they're not satisIied with any aspect oI your customer service, who
should they tell? There's nothing more annoying Ior a client than being passed Irom
person to person, or not knowing who to turn to. Making sure they know exactly what
to do at each stage oI their enquiry should be oI utmost importance. So make sure
your customer service policy is present on your site -- and anywhere else it may be
useIul.
5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card Irom a company you
were a client oI? Have you ever had a personalized sign-up conIirmation email Ior a
service that you could tell was typed Irom scratch? These little niceties can be time
consuming and aren't always cost eIIective, but remember to do them.


Even iI it's as small as sending a Happy Holidays email to all your customers,
it's something. It shows you care; it shows there are real people on the other end oI
that screen or telephone; and most importantly, it makes the customer Ieel welcomed,
wanted and valued.



6. Anticipate Your Client's Needs & Go Out OI Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this supreme
level oI understanding with your clients will do wonders Ior your working
relationship.



7. Honour Your Promises

It's possible this is the most important point in this article. The simple
message: when you promise something, deliver. Clients don't like to be disappointed.
Sometimes, something may not get done, or you might miss a deadline through no
Iault oI your own. Projects can be late, technology can Iail and sub-contractors don't
always deliver on time. In this case a quick apology and assurance it'll be ready ASAP
wouldn't go a miss.


Customer Loyalty

Obtaining a thorough understanding oI customer loyalty is a prerequisite Ior
the execution oI the research at hand. For that, the development oI customer loyalty
research within the Iramework oI relationship marketing will be presented Iirst, beIore

diIIerent customer loyalty concepts will be introduced. From these concepts, a
deIinition oI customer loyalty Ior use in this study will be derived, beIore both
consequences and antecedents oI customer loyalty will be portrayed.


Since the beginning oI the 1990s, customer loyalty has gained importance both
in relationship marketing research and in business. In business, this can be attributed
to changing market- and competition-environments. Due to a shiIt Irom a sellers` to a
buyers` market and because oI an increasing degree oI globalization, most industries
Iind themselves conIronted with new challenges. In a Iirst phase, Iirms tried to Iace
these challenges by Iocusing on their internal processes and organizational structures,
trying to achieve cost reductions by concentrating on internal improvements. A
second phase oI external Iocus Iollowed, where Iirms directed attention to their
customers, trying to retain existing ones and to win over new ones (churning). Since
'acquiring new customers is much more expensive than keeping them. And 'loyal
customers are the bedrock oI any business. A loyal customer base represents a
barrier to entry, a basis Ior a price premium, time to respond to competitor
innovations, and a bulwark against deleterious price competition. Loyalty is critical to
brand volume, is highly correlated to market share, and can be used as the basis oI
predicting Iuture market share; consequently, understanding loyalty appears critical to
any meaningIul analysis oI marketing strategy.


In marketing research, two trends mark the development oI customer loyalty.
While individual transactions initially were in the center oI marketing research, the
Iocus shiIted towards analyzing relationships states that the traditional` marketing
concept oI the marketing mix with its 4 Ps`, developed in the middle oI the last
century, had been the established approach until the 1990s. This approach, how-ever,
Iocuses solely on transactions, a deIicit tackled by the relationship marketing
approach. At the core oI it is the study oI relationships between buyers and sellers oI

goods or services, in contrast to merely examining transactions. An oIten cited and
comprehensive deIinition oI relationship marketing is provided 'Relationship
marketing reIers to all marketing activities directed toward establishing, developing,
and maintaining successIul relational exchanges. ThereIore, the relationship
marketing approach pro-vides a suitable environment in which customer loyalty
research can be nested.


While the development oI relationship marketing began in the early 1970s, it
was not until the late 1980s that works Irom the Nordic School oI Services`. Initiated
a paradigm shiIt that geared marketing towards the creation, conservation, and
extension oI buyer-seller relationships. Although relationship marketing today is
widely accepted among marketing researchers, its promoters do not postulate the
replacement oI the transactional approach, but rather juxtapose the two approaches.
For example, delineates a strategy continuum, in which diIIerent goods require
diIIerent degrees oI transaction- and relationship-based marketing strategies. As a
result oI the Iocus on relationships in marketing research, customer loyalty gained
importance within research.


BeIore determining which stream the present study can be associated with,
however, it is important to create a clear understanding oI diIIerent customer loyalty
concepts prevalent in research. This will be accomplished in the Iollowing section.


Customer Loyalty Concepts

Reviewing research, it becomes obvious that the notion oI customer loyalty is
blurred. At its core, customer loyalty deals with relationships between suppliers and
their customers and can be distinguished Irom other loyalty aspects, such as brand

loyalty, which reIer to a more abstract attachment, such as that towards a brand.
Within German customer loyalty literature, the notion oI customer loyalty is even
more Iaceted, encompasses both customer loyalty` and customer retention`
distinguishes an active, supplier-Iocused component and a passive, customer Iocused
component oI customer loyalty.


In the supplier-Iocused perspective, customer loyalty is seen as a bundle oI
measures that aim at improving relationships with customers. The supplier is in the
center oI attention and the customer is only regarded as the Iactor at which success oI
customer loyalty becomes maniIest. Here it becomes clear that this approach contains
a conceptual deIicit. It is the customer who eventually decides on whether customer
loyalty management is successIul or not, because all activities undertaken by a
supplier can only be geared at inIluencing customers to be loyal. A customer-Iocused
perspective thereIore has to be added to evaluate the success oI customer loyalty
management.


Within the customer-Iocused perspective, customer loyalty is conceptualized
taking into account customers` complex characteristics. These can either be
approached as customers` directly observable actions and/or take into account their
attitudes and intentions. Since customers` actions are directly inIluenced by their
attitudes and intentions, it is obvious that these have to be scrutinized to understand
and manage loyalty. A third perspective is a synthesis oI the Iormer two approaches.
The relationship-Iocused perspective directly examines the relationship between
suppliers and customers. Accordingly, the objects oI study in this perspective usually
are buying behavior in retail contexts and long-term relationships marked by Irequent
interaction between suppliers and buyers in industrial contexts.



It is clear that the supplier-Iocused perspective with its instrumental approach
is signiIicantly diIIerent Irom the other two approaches. Distinguishing the customer-
and the relationship-Iocused perspective, however, is diIIicult, because both Iocus on
the customer.

Behaviorist customer loyalty concepts

Behaviorist concepts oI customer loyalty have been at the core oI early
marketing research and Iocus on customers` observable behavior, as e.g. in
purchasing behavior. Accordingly, customer loyalty is established, when customers
demonstrate consistency in their choice oI supplier or brand. 'Hard-core loyalty,
when one product alternative is exclusively repurchased and oI 'reinIorcing loyalty,
when customers switch among brands but repeat-purchase one or more alternatives to
a signiIicant extent. Similarly, customer loyalty as 'the proportion oI times a
purchaser chooses the same product or service in a speciIic category compared to the
total number oI purchases made by the purchaser in that category'. Pegging customer
loyalty to purchasing behavior, however, is very critical, there can be a multitude oI
Iactors aIIecting purchasing behavior, such as product availability or special deals,
which are not grasped by looking at purchases alone. A main deIicit oI the
behavioristic approach thus is that it does not look at the drivers` behind purchasing
behavior.

Another disadvantage oI behavioristic customer loyalty concepts is their ex-
post approach. When loyalty is only expressed through purchases, inIormation on
customers` actual loyalty status in between purchases is not available. Consequently,
decreasing loyalty is only recognized aIter it maniIests itselI through changed
purchasing behavior. Only in relationships with Irequent interaction can a supplier
integrate Iurther aspects, such as complaints, into customer loyalty management. The
reason, why behavioristic concepts may still be valuable, is because the measurement
oI customer loyalty in this approach does not necessitate involvement by the

customer. The assessment oI attitudes and intentions would always imply customers`
cooperation through participation in surveys. By simply recording purchases, e.g.
through delivery records in the industrial context or customer cards in a consumer
context; the assessment oI customer loyalty poses little diIIiculty. Particularly in
areas, where most purchases can be easily ascribed to individual customers, as is the
case with mail-ordering or book-stores on the internet, the behavioristic approach is
useIul Ior identiIying diIIerent customer groups and their characteristics. Such Iirms,
however, can only assess purchases oI their own products, while purchases oI
competing products go unnoticed. Firms can thereIore neither draw conclusions about
relative changes oI purchasing behaviors, nor evaluate their comparative market
position.

eo-behaviorist customer loyalty concepts

These narrow technical deIinitions do not adequately capture the richness and
depth oI the loyalty construct implicit in a relational Iramework. Consequently, neo-
behavioristic customer loyalty concepts start at the shortcomings oI the behavioristic
approach by examining the causes oI loyalty. As early as 1969, Day concluded that
'loyalty should be evaluated with both attitudinal and behavioral criteria otherwise
accidental repeat-purchases, merely resulting Irom situational exigencies, would be
regarded as indicators oI loyalty. There is no agreement, however, on the question,
whether attitudes are part oI customer loyalty or merely an antecedent oI it. Some
authors propose that only positive attitude can lead to true` customer loyalty. II
attitude then is a necessary prerequisite oI customer loyalty, some drivers oI loyalty
cannot be explained. Transaction cost theory, Ior instance, provides the concept oI
asset speciIicity. Relationship-speciIic investments create economic switching barriers
and thereIore increase customer loyalty. However, the mere repeat purchase oI goods
or services Ior reasons oI economic constraints would not qualiIy as loyalty, as
positive attitudes are not involved. In order to avoid the outlined problem, it is useIul
to abstain Irom deIining positive attitude to be a necessary antecedent oI loyalty.

Instead, researchers usually consider intentions and observable behavior to be the
constituting elements oI customer loyalty.




Determinants of Customer Loyalty

In order to be able to gear marketing activities towards the creation oI
customer loyalty, its determinants and their precise eIIects have to be known.
Accordingly, many researchers have investigated this topic. In order to gain an
overview oI the determinants identiIied in these works, they can be structured in three
dimensions:

(1) Company-related determinants reIer to the supplier itselI or to the goods or
services oIIered. It is a prerequisite Ior the existence oI customer loyalty that
the oIIered goods or services create utility Ior the customer and that they are
available. In this respect, an assessment is usually perIormed by examining
quality. In order to evaluate the price-perIormance ratio, customers will pay
attention to prices. Customer loyalty will also be inIluenced by the reputation
a company has and ultimately by customer loyalty programs oIIered.

(2) Relationship-related determinants play a signiIicant role in long-term
relationships. Factors regarding the interaction between supplier and
customer, such as relationship quality, previous experiences, and trust are
important. Commitment, which provides evidence oI emotional closeness and
moral or normative Ieelings oI obligation, takes a central role in relationships.
SpeciIicity and dependence can lead to economic, psychological and social
switching barriers.


(3) Customer-related determinants are mainly inIluenced by customers`
characteristics. In this respect, aIIect and involvement, and consequently also
the importance oI the good or service to the customer, are important. In
addition to the above delineated areas, the eIIects oI the market environment
and competition are researched, as is the link between satisIaction and loyalty,
which plays an important role in the research oI customer loyalty and is oIten
placed in one oI the three dimensions. However, as most other determinants
inIluence satisIaction, it cannot be clearly separated and should thereIore be
listed as a distinct category.

COMPANY PROFILE

Overview

Logistics market is all set to experience a period oI explosive organic growth,
judging by independent market analyst Datamonitor's latest research. The
Datamonitor report, "India Logistics Outlook 2007," predicts high double-digit
growth rates Ior both outsourced and contract logistics in India.

With India's gross domestic proIit (GDP) growing at over 9 per year and the
manuIacturing sector enjoying double digit growth rates, the Indian logistics industry
is at an inIlection point, and is expected to reach a market size oI over $125 billion in
year 2010.

Strong growth enablers exist in India today in the Iorm oI over $300 billion
worth oI inIrastructure investments, phased introduction oI value-added-tax (VAT),
and development oI organized retail and agri-processing industries. In addition, strong
Ioreign direct investment inIlows (FDI) in automotive, capital goods, electronics,
retail, and telecom will lead to increased market opportunities Ior providers oI 3PL in
India."

However, as a result oI the under-developed trade and logistics inIrastructure,
the logistics cost oI the Indian economy is over 13 oI GDP, compared to less than
10 oI GDP in almost the entire Western Europe and North America.

As leading manuIacturers realign their global portIolios oI manuIacturing
locations, India will have to work on such systemic ineIIiciencies, in order to attract
and retain long-term real investments.


3PL/outsourced logistics is the outsourcing oI a company's logistics operations
to a specialized Iirm, which provides multiple tactical logistics services Ior use by
customers as opposed to the respective company having a business unit in-house to
oversee its supply chain and transportation oI goods.


Some Facts.

O Market Size US $ 1.5 Billion
O Growth rate between 15 to 20 per annum

O International gateways:
4 Mumbai
4 Delhi,
4 Chennai
O Domestic gateways
4 Mumbai,
4 Delhi,
4 Kolkata,
4 Chennai,
4 Bangalore,
4 Hyderabad,
4 Pune,
4 Salem,
4 Ambala,
4 Gauwhati,
4 Ahmedabad,
4 Nagpur.

O Employs over 1.2 Million people

O Air express witnessed maximum growth in the air cargo market

O In 2007 over 1.70 Billion shipments handled

O Air traIIic grows Iaster than anywhere in the world

O Total cargo traIIic increased by 21.5 in 2006-07

O 126 airport

O 14 intl airport account Ior 96 oI total Ireight traIIic

O Estimated market size US$ 1.5 Billion

O High growth rate

O Express market expected to grow more than 20

O Indias Express industry bigger than tea and entertainment industry

O 2nd Iastest growing major economy



About DHL

DHL is a Deutsche Post World Net company oI Germany that provides
international Mail, Express, Logistics and Finance. The company was Iounded in
1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn.
The trio initially provided a courier service between the Continental United
States and Hawaii then expanded the business Irom there. In 1998, Deutsche Post

World Net began to acquire shares in DHL, Iinally reached majority ownership in
2001, and completed the purchase in 2002.
DHL's global headquarters are located in Bonn and London (its Exel
subsidiary). Headquarters Ior the Americas are located in Plantation, Florida, while its
Asia PaciIic & EEMEA headquarters are located respectively in Singapore &
Bahrain/Brussels.
DHL owns its own cargo airlines, European Air Transport, originally based in
Brussels, and DHL Air, based at the East Midlands Airport in the United Kingdom.
EAT moved Irom Brussels Airport in Belgium to Leipzig/Halle Airport in Germany
in Spring 2008 with its Ileet oI Boeing 757SF Ireighters and Airbus A300 B4
Ireighters. Leipzig is now DHL major European Airline hub with dedicated brand new
Iacilities.
Major competitors oI DHL include:
O FedEx.
O UPS.
O TNT.
O United States Postal Service and,
O Royal Mail.
As on 2006 DHL employees around 2,85,000 people across the various locations.

REVIEW OF LITERATURE

Logistics

AIter having presented the necessary Iundamentals oI customer loyalty in the
preceding section, this section will elaborate on the reIerence point oI the research
project, i.e. logistics. For that, the Iirst section will present diIIerent views on logistics
and lay the notional basis Ior the understanding oI logistics embraced in this study. As
relationships between logistics service providers and their customers are to be
analyzed, the logistics outsourcing phenomenon will be detailed, beIore taxonomy oI
logistics service providers is provided.


Nature of Logistics


Logistics is an established discipline both in theory and in practice, yet there is
no agreement on a universal deIinition oI logistics. One widely accepted view stems
Irom the Council oI Supply Chain Management ProIessionals (CSCMP). In their
latest deIinition (CSCMP 2005), logistics management is seen as 'that part oI Supply
Chain Management that plans, implements, and controls the eIIicient, eIIective
Iorward and reverses Ilow and storage oI goods, services and related inIormation
between the point oI origin and the point oI consumption in order to meet customers'
requirements.
This view is clearly marked by the economic objectives oI
eIIectiveness and eIIiciency and regards logistics as part oI supply chain management.


Other deIinitions e.g. that oI Weber and Kummer are broader and reIer to
logistics as a Ilow-oriented design oI all value-creation processes. At the base oI their
understanding is the empirically backed assumption that there are diIIerent stages oI
maturity in logistics. While there are several researchers that also argue Ior stage
models oI logistics development, there is no unity as to how many stages such a

model has. The model that will be brieIly examined in this section stems Irom Weber,
who identiIies Iour maturity stages. These stages are determined by the level oI
logistics knowledge present in a Iirm and require path-dependent development Irom
the lowest to the highest level oI logistics knowledge:


In the Iirst maturity stage, logistics is a specialized service Iunction that
provides transportation, handling, and storage services that are necessary Ior an
eIIicient Ilow oI materials and goods. Weber states that this stage oI logistics maturity
was Iirst observable in the 1950s, when markets changed Irom suppliers` to buyers`
markets, requiring improved materials Ilows to succeed in the changed market
environment. This is in line with Bowersox and Daugherty, who conIirm that
advanced logistical organizations barely existed at that time. EIIects oI this paradigm-
change were two-Iold. On the one hand, logistics optimization was achieved through
process improvements and advances in Iorecasting and planning techniques. On the
other hand, organizational changes took place, as many companies institutionalized
their logistics Iunctions in dedicated departments and thereIore created a specialized
service Iunction that was separated Irom other Iunctions such as procurement or
manuIacturing.


The second stage oI logistics maturity was initiated by contextual changes in
the economic environment. In addition, advances in technology Iacilitated
communication and networks between diIIerent departments in companies` state. As a
result, Iirms realized that eIIiciency could be increased by improving the coordination
oI materials Ilows Irom inbound streams in procurement through the value creation
process in manuIacturing to outbound streams in distribution. Through this Iocus on
the integration oI diIIerent Iunctions, cost and perIormance beneIits were achieved.
Weber provides coordination oI lot-sizes and just-in-time supply and production as
examples oI these beneIits.

The Iollowing third stage oI logistics maturity was necessitated by Iurther
changes oI the market environment. Simon points out that the intensity oI competition
increased, an eIIect attributable to over-capacities, and a world-wide convergence oI
product quality, shortened product-liIe-cycles, and a strengthened Iocus on customer
demands. The required simultaneous Iocus on diIIerentiation and cost leadership was
not Ieasible under the prevalent Iunctional structures and rigid organizational systems.
Instead, a process-oriented intra-company value chain that reduces complexity was
needed to succeed in the changing market environment. Hence, logistics evolved Irom
a mere Iunctional concept to a management concept or, as Irom operational to
strategic orientation.


The Iourth and, Ior the time being, last maturity stage oI logistics development
is again driven by market pressures. When companies realized that optimization
potentials within the organization had been largely exploited, the Iocus oI attention
was Iurthered to include upstream and downstream partners in the supply chain. In
this sense, the view oI logistics as a management concept Irom the third maturity
stage is ex-tended over company boundaries and can be labeled supply chain
management (SCM).


This underlines the outstanding importance oI logistics Ior companies, which
can realize signiIicant economic beneIits by allocating management capacities to the
improvement oI logistics and the creation oI Ilow-oriented organizations. A way, in
which many companies presently try to accomplish this, is by outsourcing parts or all
oI their logistics activities to third parties.





Logistics Service Providers

II a company employs an outside provider to perIorm some or all oI its
logistics activities, this outside provider is termed a logistics service provider. These
LSPs were originally only oIIering a very narrow spectrum oI services, mainly
consisting oI transportation or warehousing services. In order to react to changing
demands Irom their customers, as pointed out in the preceding sections, LSPs have
started to oIIer integrated service portIolios that include a multitude oI diIIerent
services. According to, Iive types oI LSPs can currently be distinguished: carriers,
couriers & express & parcel/postal (CEP), Ireight Iorwarders, third-party LSPs
(3PLs), and Iourth-party LSPs (4PLs), which will be brieIly described below.


Carriers are Iirms that own assets Ior transportation purposes. These as-sets
are usually conIined to road, sea, air, or rail transportation. In some cases, however,
carriers own several oI the aIorementioned transportation assets. management oI
capacity and load-Iactor optimization are at the core oI the carrier business. CEP
providers are also transportation providers. As opposed to carriers, CEP providers
send parcels or mail though their networks, employing diIIerent transportation
vehicles and incorporating handling at hubs. In this way, they can virtually supply
door-to-door services anywhere in the world, without having to rely on any third
parties. Core competencies oI CEP providers are the operation and management oI
highly complex distribution networks.


Freight Iorwarders are intermediaries between suppliers and buyers oI
transportation services. In most cases, brokers carry out additional ser-vices, such as
transportation planning and management, including the associated provision oI
inIormation systems. In some cases, brokers also dispose oI their own transportation

assets. Bundling and coordination oI demand Ior transportation services are the core
competencies oI brokers.


In contrast to the aIorementioned LSPs, 3PLs or contract LSPs oIIer their
customers logistics solutions that oIten include management capacities. These
solutions most commonly include several services, such as warehousing and
pick/pack operations that are carried out on a longer-term contractual basis.
Sometimes, customers` value chains, such as Ileet management, order handling,
complaints management, call centers, or assembly services. A recent addition to the
list oI types oI LSPs comes in the Iorm oI 4PLs. While there is no universal
agreement on the deIinition oI the 4PL, the cur-rent state oI the debate establishes
4PLs as suppliers oI complete logistics systems, without carrying out the services
themselves. Instead, 4PLs sub-contract all operations Irom other LSPs and conIine
themselves to the management oI logistics systems. Thus, they do not dispose oI any
logistical assets and are a neutral intermediary between businesses and asset-based
LSPs.


As 3PLs Iorm the point oI reIerence Ior logistics outsourcing as dealt with in
this study, the existing notional ambiguities in research have to be examined. Author
to identiIy diIIerent types oI 3PLs. To him, there are Iour distinct classes oI 3PLs:


(1) asset-based 3PLs use their own assets (e.g. trucks and warehouses) to oIIer
dedicated logistics services;

(2) management-based 3PLs supply logistics management through inIormation
systems or consulting;


(3) Integrated 3PLs use their own assets to provide logistics services, but also
subcontract Irom other vendors iI necessary; and

(4) administration-based 3PLs mainly oIIer administrative management (e.g.
Freight payment).



THEORETICAL FRAMEWORK

Social Exchange Theory

Social exchange theory deals with 'the relational interdependence, or
relational contract, that develops over time through the interactions oI the ex-change
partners. While this concept has only entered marketing theory in the 1980s, the
discussion goes as Iar back as to the Greek philosopher Aristotle, who distinguished
social exchange Irom economic exchange in his Nicomachean Ethics. Later,
sociologists such as Blau and Emerson, as well as social psychologists such as
Thibaut and Kelley worked on the concept oI social exchange.


On the basis oI a thorough investigation oI social exchange literature, Lambe,
Wittmann, and Spekman summarize the Iollowing Iour Ioundational premises oI
social exchange theory, which will be detailed below:

O Exchange interactions result in economic and/or social outcomes,
O These outcomes are compared over time to other exchange alternatives to
determine dependence on the exchange relationship
O Positive outcomes over times increase Iirms` trust oI their trading partner(s)
and their commitment to the exchange relationship, and

O Positive exchange interactions over time produce relational exchange norms
that govern the exchange relationship.

In contrast to pure economic theories, social exchange theory thus incorporates
both economic and social outcomes, highlighting the Iact that social as well as
economic considerations are made when evaluating the value oI relationships. This
value results Irom an assessment oI both utilities and costs oI a relationship, and
parties will choose to uphold a relationship as long as the cost-utility-ratio is
satisIactory. The exact composition oI utilities and costs varies Irom individual to
individual, and more emphasis may be put on either social or economic aspects.


When appraising the value oI a relationship, parties will not only consider
current and past costs and utilities, but also potential Iuture beneIits, and may Iorego
present beneIits Ior beneIits in the Iuture. ThereIore, an important Iactor in social
exchange theory is trust, which results Irom multiple and beneIicial interactions over
time. Only iI the trading partner is trusted, will one be willing to reciprocate the
abdication oI cur-rent beneIits Ior Iuture beneIits. Another important aspect oI social
exchange theory is commitment, which is Iostered by trust. This causal relationship
between trust and commitment is based on the principle oI generalized reciprocity,
because commitment entails vulnerability and parties will seek only trustworthy
partners.


Social exchange theory`s Ioundational premises indicate that relation-ships are
not only governed by contracts, but also by norms, which develop as a consequence oI
repeated interaction and 'increase the eIIiciency oI relationships because by agreeing
to the manner in which interactions take place, the degree oI uncertainty may be
reduced. As with trust, norms are adhered to because rewards are expected.


While social exchange theory can be very useIul conceptually, it is mainly
criticized Ior its lack oI empirical Ioundation. Factors such as commitment and trust
should be able to substitute (at least in part) contractual governance structures, but this
cannot be conIirmed empirically. Presumably, this is attributable to social exchange
theory`s neglect oI opportunism.


Equity Theory

Equity theory represents an extension oI social exchange theory by adding the
aspect oI Iairness. While the concept dates back to Homans, equity theory was
primarily coined by Adams. At that time reIerred to as 'theory oI inequity, it was
introduced to explain wage inequities. The basic assumption underlying equity theory
is that each party in a relationship compares its input-output-ratio to that oI the other
party. Analogous to social exchange theory, social as well as economic considerations
are incorporated in the evaluation oI Iairness.


In case the ratio is balanced, the perception oI being Iairly treated is conveyed.
Otherwise, one Ieels unIairly treated, arousing distress Ior both the over-beneIited and
the under-beneIited parties, which may lead to emotional and behavioral
consequences. In order to re-create Iairness, parties can change their inputs, adjust
their expectations, inIluence the other party, or terminate the relationship.


As in social exchange theory, the input-output-ratios oI the involved parties do
not have to be in balance at any given time. Instead, parties must trust that outcomes
be split equitably in the long-run



Commitment Trust Theory

Morgan and Hunt in 1994 Iirst introduced commitment trust theory in their
article on successIul relationship marketing. According to them, commitment and
trust Iunction as key mediating variables between Iive antecedents (relationship
termination costs, relationship beneIits, shared values, and opportunistic behavior)
and Iive outcomes (acquiescence, propensity to leave, cooperation, Iunctional conIlict,
and decision-making uncertainty). By highlighting commitment and trust, Morgan and
Hunt`s theory is based on the Iundamental ideas oI social exchange theory. At the
same time, one oI the major deIicits oI social exchange theory is addressed by
allowing Ior opportunistic behavior.


Considerations by Morgan and Hunt were spurred by a shiIt in marketing
research and practice away Irom a mere transactional Iocus towards the relationship
marketing approach, according to which all marketing activities are supposed to
establish, develop, and maintain successIul relational exchanges. While Morgan and
Hunt ac-knowledge that many contextual Iactors determine the success or Iailure oI
relationship marketing eIIorts, commitment and trust are seen as key, be-cause they
can establish relational governance norms. As such, commitment and trust can
encourage cooperative behavior aimed at preserving relationship investments,
mitigate the risk oI choosing attractive short-term alternatives despite oI expected
long-term beneIits with existing exchange partners, and can make high-risk actions
appear more attractive, because exchange partners are not Ieared to act
opportunistically. 'ThereIore, when both commitment and trust not just one or the
other are present, they produce outcomes that promote eIIiciency, productivity, and
eIIectiveness.




The six key factors that influence customer loyalty

According to Peter Clark, co-editor of The Wise Marketer and co-author
of The Loyalty Guide report series, there are six major factors that play key
roles in influencing the loyalty and commitment of customers:

Figure 1: Factors that influence customer loyalty

RESEARCH METHODOLOGY

Objective of the study

A study on customer level oI satisIaction in towards DHL Express (I)
Pvt Ltd

To identiIy the loyalty oI customer towards DHL Express (I) Pvt.
Ltd.

To measure the speciIic reasons Ior satisIaction and dissatisIaction in
with DHL Express.

To identiIy the recommendations oI DHL Express to others by
existing loyal customers.






Scope of the study



Scope oI the study mainly to know the current level oI customer
satisIaction.

Scope oI the study mainly to know the loyalty oI the customer
towards the company.

To give suggestion regarding improvement oI perIormance standard
oI the Company

To inIorm the management about current level.






Limitations of the study



Time limit restricts detailed survey work Ior this particular topic oI
research

The survey is restricted to the customers oI DHL Express I Pvt ltd
who are involved in imports.

Some customers have lack oI time, so they may not communicate
properly.

Research design

The objective oI the study has been achieved by using both Primary and
Secondary Data`s. The data`s obtained Ior the study was primarily Irom Iield
investigation carried out among the customers oI DHL.

Sampling

Sample design is a deIinite plan Ior obtaining a sample Irom a given
population. It reIers to the technique or the procedure the researcher would adopt in
selecting items Ior samples.


Samples are studied Ior the population who are the customers oI DHL Express
I Pvt. Ltd. Research design is needed because it Iacilitates the smooth railing oI the
various research operations thereby making research as eIIective as possible yielding
maximal inIormation with minimal expenditure oI eIIort, time and money.

Sample Size

The Customers, to whom DHL provides service is taken into consideration.
The sample size is 85.

Primary Data

Primary data was collected through Online Survey


http://dhl-customerloyalty.surveyconsole.com/


Survey Research:

Survey research as name suggests, is distinguished by the Iacts that the data
are collected Irom the people who are thought to have the desired inIormation,
through questionnaire.



Questionnaire was posted over the internet and sent to the respective
customers in order to collect inIormation related to the topic. The questionnaires so
designed Ior this purpose were structured.




Secondary Data


Secondary data was collected through company websites and records. And
analysis on various aspects has been done using diIIerent statistical techniques.


The methods Iollowed Ior the analysis and interpretation oI data are:
O Uni variate Percentage Analysis
O Weighted average method

O Univariate Percentage Analysis:


Percentage reIers to a special kind oI ratio. It is used to make comparison
between two or more series oI data. They can be used to compare the relative items,
the distribution oI two or more series oI data, since the percentages reduces every
thing to a common base and there by allow meaningIul comparisons to be made. Here
only one Iactor is considered.


NO OF RESPONDENTS
PERCENTAGE x 100
TOTAL RESPONDENTS


O eighted Average Method:


This method is a used when the relative importance oI the diIIerent items is
not the same. The term weighted stands Ior the relative importance oI the diIIerent
items. It is assumed that inventory costs should be assigned on the basis oI average
costs oI identical units. An average cost unit is determined by dividing the total costs
oI the units by the number oI units.

The weighted average method is logical when assigning costs to units that become
mixed together, there by making separate identiIication diIIicult or impossible.
The Iormula is:


_ WX
X
_ W

Where;

X Weighted Arithmetic mean

X Frequency or no oI response dents

W = Weighted allotted to each factor

DATA ANALYSIS & INTERPRETATION


Customers overall experience to accessibility and responses of DHL
representative through Telephone.





Options Respondents Percentage
Excellent 16 20
Very Good 16 20
Good 32 40
Fair 16 20
Poor 0 0
Total 80 100

Table - 1




Interpretation:


20 oI the customers responded that their overall experience to
accessibility and responses through Telephone is Excellent. Next 20 says it is very
good. Good being awarded by 40 oI the customer. Final 20 is not so satisIied so
they said that the service is Iair












xcellent
20%
Very Good
20%
Good
40%
Fair
20%
Poor
0%
xcellent
Very Good
Good
Fair
Poor





Figure - 2




(Chart showing Customers overall experience to accessibility and responses of
DHL representative through Telephone)



Customers overall experience to accessibility and responses of DHL
representative through E-mail.





Options Respondents Percentage
Excellent 16 20
Very Good 16 20
Good 32 40
Fair 16 20
Poor 0 0
Total 80 100


Table - 2




Interpretation:


20 oI the customers responded that their overall experience to
accessibility and responses through E-mail is Excellent. Next 20 says it is very
good. Good being awarded by 40 oI the customer. Final 20 is not so satisIied so
they said that the service is Iair







xcellent
20%
Very Good
20%
Good
40%
Fair
20%
Poor
0%
xcellent
Very Good
Good
Fair
Poor





Figure - 3




(Chart showing Customers overall experience to accessibility and responses
of DHL representative through E-mail)





Clearance representative ability to help customer issue/need




Options Respondents Percentage
Excellent 15 19
Very Good 17 21
Good 22 28
Fair 19 24
Poor 7 9
Total 80 100

Table - 3



Interpretation:



` 19 oI the customers responded that their overall experience to ability
to help resolve issue or need is Excellent. Next 21 says it is very good. Good being
awarded by 28 oI the customer. 24 is somewhat satisIied so they said that the
service is Iair. 9 is not satisIied with the service.








xcellent
19%
Very Good
21%
Good
27%
Fair
24%
Poor
9%
xcellent
Very Good
Good
Fair
Poor






Figure - 4




(Chart showing Clearance representative ability to help customer issue/need)






Customers Overall experience with DHL Clearance Department




Options Respondents Percentage
Excellent 17 21
Very Good 15 19
Good 14 18
Fair 30 38
Poor 4 5
Total 80 100

Table - 4



Interpretation:



21 oI the customers responded that their overall experience with
DHL clearance department is Excellent. Next 19 says it is very good. Good being
awarded by 18 oI the customer. 38 is somewhat satisIied so they said that the
service is Iair. 5 is not satisIied with the service.







xcellent
21%
Very Good
19%
Good
18%
Fair
37%
Poor
5%
xcellent
Very Good
Good
Fair
Poor






Figure - 5




(Chart showing Customers Overall experience with DHL Clearance
Department)





Customers Overall experience with DHL Shipment Delivery at doorstep




Options Respondents Percentage
Excellent 9 11
Very Good 25 31
Good 40 50
Fair 4 5
Poor 2 3
Total 80 100

Table - 5



Interpretation:



11 oI the customers responded that their overall experience with
DHL clearance department is Excellent. Next 31 says it is very good. Good being
awarded by 50 oI the customer. 5 is somewhat satisIied so they said that the
service is Iair. 3 is not satisIied with the service.







xcellent
11%
Very Good
31%
Good
50%
Fair
5%
Poor
3%
xcellent
Very Good
Good
Fair
Poor






Figure - 6




(Chart showing Customers Overall experience with DHL Shipment Delivery at
doorstep)





Customer Satisfaction level with DHL Express I Pvt Ltd





Options Respondents Percentage
Extremely SatisIied 15 19
SatisIied 20 25
Neutral 22 28
DissatisIied 18 23
Extremely DissatisIied 5 6
Total 80 100

Table - 6



Interpretation:



19 oI the customers responded they are Extremely SatisIied with the
service. Next 25 they are satisIied. Neutral is 22 oI the customer. 23 is
somewhat satisIied so they said that the service is Iair. 3 is not satisIied with the
service.







xtremely Satisfied
19%
Satisfied
25%
Neutral
27%
Dissatisfied
23%
xtremely
Dissatisfied
6%
xtremely Satisfied
Satisfied
Neutral
Dissatisfied
xtremely Dissatisfied






Figure - 7




(Chart showing Customer Satisfaction level with DHL Express I Pvt Ltd)




Customer Responses or Reasons for satisfaction with DHL Express I Pvt Ltd




O Less transit time

O Clear tracking

O Advance Iurnishing oI documents

O Keeping customer Iully inIormed

O Timely clearance

O Good Shipment delivery at doorstep



Interpretation:



Various reasons are given by customers Ior satisIaction like less transit time,
Clear tracking, Advance Iurnishing oI documents, keeping customer Iully inIormed,
Timely clearance, Good Shipment delivery at doorstep etc.


Customer Responses or Reasons for Dissatisfaction with DHL Express I Pvt Ltd



O Original Bill oI Entry getting only aIter 3 days aIter our Iollow up, this should
come along with delivery

O Freight Bill received 30 days aIter delivery this should deliver within 24 hrs,
so that your payment will not be delayed

O The currency some times wrongly mention in the B/E beIore Iiling with
Customs, check the invoice or check with the customer - this will help
avoiding mistake.

O In some oI the instances your response is not proper

O Since express service is preIerred only when there are some urgency, though
the cargo reaches at airport. clearance team takes minimum 7-25days takes Ior
customs clearance

O Commitment not met in several cases


Interpretation:


Various reasons are given by customers Ior dissatisIaction. The company need
more Iocused approach Ior satisIying the customers





Recommend DHL Express to others






Options Respondents Percentage
Yes 51 64
No 29 36
Total 80 100

Table - 7





Interpretation:



64 oI the customer responded in Iavour oI recommending DHL Express to
others. On the other hand 36 oI the people say No to recommend DHL Express to
others.







es
64%
No
36%
es
No






Figure - 8




(Chart showing Recommendation DHL Express to others)





Over the past years loyalty towards DHL Express has grown stronger






Options Respondents Percentage
Yes 55 69
No 25 31
Total 80 100

Table - 8





Interpretation:



69 oI the customer responded in Iavour that loyalty towards DHL Express
has grown stronger. On the other hand 31 oI the people say No that loyalty towards
DHL Express has not grown stronger.








es
69%
No
31%
es
No






Figure - 9




(Chart showing status of loyalty towards DHL Express has grown stronger)





DHL Express Values people & Relationships ahead of Short-term goals





Options Respondents Percentage
Yes 41 51
No 39 49
Total 80 100


Table - 9





Interpretation:




51 oI the customer responded in Iavour that DHL Express Values people &
Relationships ahead oI Short-term goals. On the other hand 49 oI the people say No
that DHL Express do not Values people & Relationships ahead oI Short-term goals.








es
51%
No
49%
es
No






Figure - 10




(Chart showing DHL Express Values people & Relationships ahead of Short-
term goals)

FINDINGS


O 20 oI the customers responded that their overall experience to accessibility
and responses through Telephone is Excellent. Next 20 says it is very good.
Good being awarded by 40 oI the customer. Final 20 is not so satisIied so
they said that the service is Iair

O 20 oI the customers responded that their overall experience to accessibility
and responses through E-mail is Excellent. Next 20 says it is very good.
Good being awarded by 40 oI the customer. Final 20 is not so satisIied so
they said that the service is Iair

O 19 oI the customers responded that their overall experience to ability to help
resolve issue or need is Excellent. Next 21 says it is very good. Good being
awarded by 28 oI the customer. 24 is somewhat satisIied so they said that
the service is Iair. 9 is not satisIied with the service.

O 21 oI the customers responded that their overall experience with DHL
clearance department is Excellent. Next 19 says it is very good. Good being
awarded by 18 oI the customer. 38 is somewhat satisIied so they said that
the service is Iair. 5 is not satisIied with the service.


O 11 oI the customers responded that their overall experience with DHL
clearance department is Excellent. Next 31 says it is very good. Good being

awarded by 50 oI the customer. 5 is somewhat satisIied so they said that
the service is Iair. 3 is not satisIied with the service.


O 19 oI the customers responded they are Extremely SatisIied with the
service. Next 25 they are satisIied. Neutral is 22 oI the customer. 23 is
somewhat satisIied so they said that the service is Iair. 3 is not satisIied with
the service.

O 64 oI the customer responded in Iavour oI recommending DHL Express to
others. On the other hand 36 oI the people say No to recommend DHL
Express to others.

O 69 oI the customer responded in Iavour that loyalty towards DHL Express
has grown stronger. On the other hand 31 oI the people say No that loyalty
towards DHL Express has not grown stronger.


O 51 oI the customer responded in Iavour that DHL Express Values people &
Relationships ahead oI Short-term goals. On the other hand 49 oI the people
say No that DHL Express do not Values people & Relationships ahead oI
Short-term goals.

SUGGESTIONS

O Communicate. Whether it is an email newsletter, monthly Ilier, a reminder
card Ior a tune up, or a holiday greeting card, reach out to your steady
customers.


O Customer Service. Go the extra distance and meet customer needs. Train the
staII to do the same. Customers remember being treated well.


O Employee Loyalty. Loyalty works Irom the top down. II you are loyal to your
employees, they will Ieel positively about their jobs and pass that loyalty along
to your customers.


O Employee Training. Train employees in the manner that you want them to
interact with customers. Empower employees to make decisions that beneIit
the customer.


O Customer Incentives. Give customers a reason to return to your business. For
instance, because children outgrow shoes quickly, the owner oI a children`s
shoe store might oIIer a card that makes the tenth pair oI shoes halI price.
Likewise, a dentist may give a Iree cleaning to anyone who has seen him
regularly Ior Iive years.



O Product Awareness. Know what your steady patrons purchase and keep these
items in stock. Add other products and/or services that accompany or
compliment the products that your regular customers buy regularly. And make
sure that your staII understands everything they can about your products.


O Reliability. II you say a purchase will arrive on Wednesday, deliver it on
Wednesday. Be reliable. II something goes wrong, let customers know
immediately and compensate them Ior their inconvenience.


O Be Flexible. Try to solve customer problems or complaints to the best oI your
ability. Excuses such as "That's our policy" will lose more customers
then setting the store on Iire..
O People over Technology. The harder it is Ior a customer to speak to a human
being when he or she has a problem, the less likely it is that you will see that
customer again.

O Know Their Names. Remember the theme song to the television show eers?
Get to know the names oI regular customers or at least recognize their Iaces.

CONCLUSIONS



In addition to suggestions and Iindings, this study also provides several scopes
Ior Iurther research, which will be addressed in the Iollowing paragraphs:


(1) While the customer loyalty model validated in this study possesses good
power Ior explaining repurchase intentions and reIerral behavior, only partial
explanation oI the construct oI additional purchase intentions is achieved. As
stated beIore, Iactors not contained in the model such as strategic outsourcing
considerations can be assumed to aIIect the intention oI customers to
outsource additional logistics activities to the currently most important LSP.
For this reason, Iuture studies should explore additional determinants oI this
loyalty dimension.


(2) Measurement model assessment revealed that the operationalization oI
Iairness in this study does not achieve suIIicient discriminance Irom other
constructs, especially Irom trust and relational satisIaction. As there is a strong
theoretical indication that Iairness is important in customer loyalty
considerations, Iurther studies should modiIy Iair-ness` measurement model,
e.g. by more strongly recurring to the concept oI inequity.



(3) Within this study, Iour relational characteristics were examined. In addition,
analyses were conducted Ior a multitude oI other contingency Iactors that are
not included in the present study. Overall, however, no conclusive
moderations were identiIied. Nevertheless, it may be assumed that customer
diversity still has moderating eIIects on the Iormation oI customer loyalty. The
determinants contained in this study, however, capture rather general
evaluations oI relationships between LSPs and their customers, which may be
too broad to be subject to moderating eIIects. For this reason it would be
sensible to examine antecedents oI the employed determinants, as moderating
eIIects could surIace when this level oI detail is added to the analyses.

DHL Customer Satisfaction & LoyaIty Survey



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xcellent
Very Good
Good
Fair
Poor
xcellent
Very Good
Good
Fair
Poor
xcellent
Very Good
Good
Fair
Poor





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BIBLIOGRAPHY

Books:
O Research Methodology Kothari
O The Loyalty Guide report series - Peter Clark
O Marketing Management 12 e Philip Kotler


Websites:

O www.google.com
O www.wikipedia.com
O www.dhl.com
O www.scribd.com