ISB-MBUS INFORMATION FORM

1. Name: NGO HOANG THONG
2. Date of Birth: 10.07.1991
3. Course year: 2018
4. Mobile:

0914 785 338

5. Email:
6. Home address: 220/21 Le Van Sy, Ward. 14, Dist. 3, HCM.
7. Occupation:

Businessman

Position: Businessman

8. Office name: NEW STAR LOGISTICS COMPANY LIMITED
9. Office location: 56 Yen The Street, Ward 2, Dist. Tan Binh, HCM.
10.

How have I changed after two years studying at ISB?

After two years studying at ISB, I studied a lot of economic knowledge such as Business
Accounting, Human Resources Management, Corporate Financial, Strategic Marketing,
Research Design… I feel more mature, calmer and more confident when I face with
problems.

11. What I want to share with the juniors is:
Firstly, there will be a lot of useful knowledge for your job.
Secondly, there will be many good teachers during your studying.

Thirdly, there will be many best friends who you can study together.
Finally, ISB is the best choice while studying MBA.

WISHING YOU EVERY SUCCESS IN YOUR CHOSEN PATH!


CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc lập – Tự do – Hạnh phúc
-----o0o-----

BẢN CAM ĐOAN
Họ tên học viên:

NGÔ HOÀNG THÔNG

Ngày sinh : 10.07.1991

Nơi sinh : TIỀN GIANG

Ngày trúng tuyển đầu vào năm: 2016
Là tác giả của đề tài luận văn: The Impact of Logistics Service Quality on Customer
Loyalty: An Empirical Research in Vietnam.
Giáo viên hướng dẫn: TS. Đoàn Anh Tuấn
Ngành: Quản Trị Kinh Doanh

Mã số: 22160046

Bảo vệ luận văn ngày : 12.11.2018
Điểm bảo vệ luận văn : 7.0
Tôi cam đoan đã chỉnh sửa nội dung luận văn thạc sĩ kinh tế với đề tài trên, theo góp ý

của Hội đồng chấm luận văn thạc sĩ.
TP. Hồ Chí Minh, ngày 20 tháng 12 năm 2018
Người cam đoan
(Ký và ghi rõ họ tên)

Chủ tịch Hội đồng chấm luận văn
(Ký và ghi rõ họ tên)

Hội đồng chấm luận văn 05 (năm) thành viên gồm :
Chủ tịch :……………………………………………………………………..
Phản biện 1:…………………………………………………………………..
Phản biện 2: ………………………………………………………………….
Thư ký : ………………………………………………………………………
Ủy Viên : …………………………………………………………………….


CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc lập – Tự do – Hạnh phúc
-----o0o-----

BẢNG TỔNG HỢP NỘI DUNG CHỈNH SỬA LUẬN VĂN SAU BẢO VỆ
Nội dung điều chỉnh

Số trang trong
luận văn

STT

Nhận xét của Hội đồng


1

The abstract: some content is not
appropriate, for example: some concept
& the context relating to SMEs

2

Hypothesis development: need to add
more clear explanation on H4.

3

The supported literature needs to be
updated by more recent studies.

Be updated by some recent research.

Page 15-17

4

Why did you mention about gender and
age in the discussion part? Is there any
link with prior studies

During the survey, author realizes gender and
age also effect customer loyalty and moved
this part for future research.


Page 34

Page 6.
The subject of the study is customers in small
and medium logistics companies to improve
the competitiveness in the logistics market in
Vietnam. The author focuses on this object
and the contents in abstract are completely
suitable to the whole essay.
Hypothesis was added more explanation by
Page 15 -17
reviewing previous research.


5

No need to check the relationship
between to components of one concept
=> explain.

The objective of this thesis is deeply studying
the interactions factors under the same
components and the effect of different
components. The author believe that there are
more new contribution into theories as well
as managerial.
HỌC VIÊN
(Ký, ghi rõ họ tên)

Page 9



UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

NGO HOANG THONG

THE IMPACT OF LOGISTICS
SERVICE QUALITY ON CUSTOMER
LOYALTY: AN EMPIRICAL
RESEARCH IN VIETNAM

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2018.

1


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

NGO HOANG THONG

THE IMPACT OF LOGISTICS
SERVICE QUALITY ON CUSTOMER
LOYALTY: AN EMPIRICAL
RESEARCH IN VIETNAM

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: DR. DOAN ANH TUAN.

Ho Chi Minh City – Year 2018.

2


Table of contents
List of figures .................................................................................................................................. 4
List of tables .................................................................................................................................... 4
Acknowledgements ......................................................................................................................... 5
Abstract ........................................................................................................................................... 6
1. Introduction ................................................................................................................................. 7
2. Literature review and hypothesis .............................................................................................. 11
2.1 Logistics Service Quality (LSQ) .......................................................................................... 11
2.2 Satisfaction .......................................................................................................................... 13
2.3 Customer loyalty ................................................................................................................. 13
2.4 Conceptual model and hypothesis ....................................................................................... 14
3. Research methodology .............................................................................................................. 18
3.1 Research process ................................................................................................................. 18
3.2 Sample Design ..................................................................................................................... 20
3.3 Measurement Scales ............................................................................................................ 21
3.4 Data analysis method .......................................................................................................... 23
3.5 Confirmatory factor analysis (CFA) ................................................................................... 24
3.6 SEM analysis ....................................................................................................................... 24
4. Research results ........................................................................................................................ 25
4.1 Data statistical analysis ...................................................................................................... 25
4.2 Scale Analysis Results ......................................................................................................... 27

4.3 CFA results.......................................................................................................................... 27
4.4 Hypothesis Testing Results .................................................................................................. 29
5. Discussion, implication and limitation. .................................................................................... 33
5.1 Discussion ........................................................................................................................... 33
5.2 Managerial implication ....................................................................................................... 34
5.3 Limitation and direction for future research....................................................................... 35

3


List of acronyms
- ISB: International School of Business.
- HCM: Ho Chi Minh
- CFA: Confirmatory Factor Analysis
- OP LSQ: Operational Logistics Service Quality.
- RL LSQ: Relational Logistics Service Quality.
- SATIS: Satisfaction
- AC: Affective Commitment
- PB: Purchase Behavior

List of figures
Figure 1 - Conceptual Model…………………………………………………………….16
Figure 2 - Research Procedure…………………………………………………………...17

List of tables
Table 1: A descriptive Statistics of the sample…………………………………………..24
Table 2: Standardized CFA Loadings of item…………………………………………...26
Table 3: Correlation results………………………………………………………………27
Table 4: Results from the structural model……………………………………………....28


4


Acknowledgements
Firstly, I would like to send my thanks Dr. Doan Anh Tuan who helped and supported
me a lot in completing this thesis. Besides helping me to choose this topic, he also helps
me how to find useful material for this thesis. It makes me feel self-confident so I can
reference previous thesis and enhance my writing thesis skills. By updating new
knowledge, it helps me feel strong spirit to complete this thesis. In a word, Dr. Doan Anh
Tuan is very professional and wonderful and distributes big parts in my completing this
thesis.
Secondly, I would like to send my thanks other teacher who taught me in International
school of Business (ISB) during whole course. Each teacher gave me some knowledge;
they contributed many materials to complete my thesis.
Thirdly, I would like to send my thanks classmate who help me to right format with
APA 6th edition. In addition, I also send my thanks to attended survey persons. They
contributed into my success a lot.
Finally, I would like to send my thanks to family; they create good condition for me to
complete this thesis, especially Mr. Tung Minh Tuan - Director of KHS Viet Nam, who
encourages me to complete this master thesis.

5


Abstract
Customers are one of the most important factors which help to determine to the survival
of a business. The company cannot operate without customers. Retaining or repeat
customer are an essential for a business to grow and develop. The customer base is the
key area for generating profits, this allows the business to expand and grow operations;
the effectiveness of corporate strategy is enhanced. Developing retaining current

customer will increase cross –sell and up-sell more and more. Some previous studies also
show that customer satisfaction has a positive influence business strategy. Therefore, the
assessment of the determinants affecting the customer satisfaction is very necessary for
the logistics service companies, especially for small & medium private logistics
companies.
Nowadays, customer has many different choices because of increasingly homogeneity
products from different suppliers. The seller has to differentiate by enhancing their
customer service and procudurement. Business more and more aware of the importance
of loyal customers. So attaining customer loyalty is extremely difficult and the firms try
our best to acheive it everyday. This research build on a multidimensional construct,
extend previous theory to explore correlation between affective commitment and
purchase behavior. The research subject is supplier – retailers context and this companies
are competing against the huge corporate, so their perspective is usually ignored. This
research extend the generalizability of previous studies to enhance competitive
advantages. In addition, the research also explore the relationship between logistics
6


service quality and customer loyalty. Finally, the research examinine the relationship
between satisfaction and loyalty.

1. Introduction
Today, the significance of growing and keeping relationships with clients is widely
accepted in the literature. Enhancing logistics services quality research, business can
increase long-term relationships (Ganesan, 1994). Moreover, LSQ relationships can be a
strong source of advantage because of their possibility to create high competition (Day,
2000). Customer loyalty is expanding as long-run wonderful road because new clients is
discovered and it spends a lot of time, effort and money to join business with them
(Mittal & Lassar, 1998). It can be cheaper maintain customer than win a new customer
and business would like to develop in their own business and recognizes to expand and

enhance customer loyalty (Kandampully, 1998). Reichheld, Markey Jr, & Hopton (2000)
introduced that building customer loyalty with select clients was to breakthrough
competitive advantage. These theories are still right until nowadays and it becomes as
survival competition. Because products become same same and tangible products are not
unique advantages of companies. Beside good products, the services will create loyal
customer and have to focus investment. The service established from staff in the
company, they need training, salary policy and great environment to adapt customer
needs. If there is good products only, company can’t compete with another sellers in
logistics industry. Logistics Industry is service field so it’s very necessary to create profit
base on customer loyalty. Once customer believes in company’s service, customer can
7


introduce to other clients. Practicing to enhance customer loyalty is you have some
trouble in handling shipment; it’s very easy to solve and receive sympathy from client.
There are many different ways to give client trust, convenience, reliability and support
within complicated relationship in big group. In the energetic market, the suppliers try to
find many ways to maintain and enhance customer loyalty (Flint & Mentzer, 2000). A
key objective to identify key account clients and gain a better knowledge in the
relationships between income and outcomes (Hennig-Thurau, Gwinner, & Gremler,
2002). This will help business to choose which client should be more focused and which
client can create more profit and benefits.
Moreover, the research explore to understand how and why the psychology of client
effect by logistics service quality on customer loyalty which elements behind client’s
psychology in decision purchase (Pritchard, Havitz, & Howard, 1999). Base on real
managerial issues, a sense of loyalty is rather not clear. There are some barriers between
SATIS and Loyalty.
The objectives of this study are to test the loyalty elements and clarify the importance
of LSQ effect on customer loyalty. The main purpose is to help company understand
clearly the impact of LSQ on customer loyalty. The rest of this research is reviewing

literature and hypotheses, existing literature on the theories of elements (LSQ, loyalty…)
are reviewed from previous studies to build conceptual model. The next session is
research methodology to collect sample, data analysis and create code for each statement.

8


Next two sessions are data results then research objectives are then discussed, followed
by contributions expected from the dissertation.
There are some researches about customer satisfaction in logistics field such as
analyzes the impact of port service quality on customer satisfaction: The case of
Singapore (Bienstock, 2002) identify the Technology acceptance and satisfaction with
logistics services. The previous research presented the relationship between logistics
service quality and customer loyalty such as analysis the Role of Logistics Service
Quality in Creating. Therefore, this research examines ―how logistics service quality
affects customer loyalty‖, ―which is conceptualized as a causal relationship between
affective commitment and purchase behavior‖. The previous study is not clear enough to
explain the phenomena in complex relationships. The gaps will be followed research
question as below:
(i)

What is the relationship between AC (the emotional component) and PB (the
behavioral component)?

(ii)

What is the level effect of LSQ on customer loyalty? Whether are there
differences in supplier-retailer context?

(iii)


Whether are there examine of the connection between SATIS and the
behavioral component of loyalty?

Based on the above analysis, the first objective of this research is to review
previous literature by taking a ―more complex of the loyalty phenomenon, and
confirmed the relationship between affective commitment and purchase behavior‖.
9


―The affective commitment is the emotional component and the purchase behavior is
the behavioral component‖. The second objective is to extend literature that
investigates the impact of logistics service on customer loyalty. In this paper compare
with previous research, the (LSQ)-loyalty phenomenon are testing in a supplierretailer to enhance logistics strategic tools create competitive advantage. The final
objective of this study is to test the possibility in nonlinear working between SATIS
and the behavioral of loyalty.
This research is designed in Viet Nam where there are a few of research about the
impact of logistics service quality on customer loyalty. In addition, this research had
broadened the knowledge in both B2B in logistics field. It extends the ―relationship
between logistics service quality, satisfaction and the loyalty phenomenon‖. The
research look at together relationship, in this research extends the knowledge by
looking at these relationships with more aspect. The loyalty relationship has the
strength of the relationship between AC and PB, and it is also theorized that
calculative commitment this relationship. Beside ―there are existing measures, several
new measures (based on pilot study) will be developed and tested‖. This research
shows the relationship between service quality-satisfaction and loyalty relationship.
According to Homburg and Giering (2001), there is empirical evidence to support a
more complicated structure in a form of repeat purchasing. The relationships is
explored previous research is more simple than this research. Further the findings in
this research have produced contradictory findings. There are different viewpoints


10


about the relationship LSQ – satisfaction and customer loyalty, this research reconcile
some these differing views. This model indicates that there are different loyalty types
that would have different strategic implications. The firms should select where to
complete and satisfy every customer and different market segment. According to
Zhao, Dröge and Stank (2001), business design to adapt their customer needs, this
research explores different customer loyalty. In addition, the research will be used in
business platform and the result applies for their own company. Lastly, developing
logistics service research and building in supply chain management (Mentzer & Flint,
1997). This research is having 5 sessions. Session 1 is introductions of research,
session 2 is literature review and hypothesis, session 3 is research method, session 4 is
research results and session 5 is limitation and conclusion.

2. Literature review and hypothesis
This part presents the theory about Logistics Service Quality (LSQ), Customer
Satisfaction (CS) and Customer Loyalty (CL). The conceptual platform and hypothesis
for this research are indicated and developed.
2.1 Logistics Service Quality (LSQ)
According to La Londe, Zinszer and Management (1977), customer service is scaled by
accuracy, order cycle, reliability and timeliness. On these days, business knows how to
understand what the client needs besides mentioned aspect (Maltz & Maltz, 1998). One
factor that most successful firms confirm customer perceptions (Jones, Mothersbaugh, &
Beatty, 2002). (Stank, Goldsby, & Vickery, 1999) said that enhancing closeness and
11


providing higher level of service effectiveness in the logistics service theory. In logistics

field, marketing tools are applied; specially evaluate logistics service quality based on
customer loyalty. The evaluation of service performance is presented in marketing field.
The service quality scale has measured in the service marketing theory. All is reviewed
by pilot study and qualitative study with perceived manager and customers (Parasuraman,
Zeithaml, & Berry, 1985). This research presented several gaps between supplier
customer service and client. According to Parasuraman et al. (1985) explored a service
quality model for testing customer satisfaction and perception of service in service
companies. There are 2 sides of logistics service (Maltz & Maltz, 1998), the first side is
basic basement relating time, delivery and inventory availability. The second side is
responsiveness and adapts market - driven. (Collier, 1991) advised that two different
measurements: an internal and an external. Following (Stank et al., 1999) developed the
operational and relational elements of logistics service performance. Based on the
existing literature, LSQ comprised two components:
The first is operational LSQ and is presented as understanding of logistics service
activities which provide from suppliers that apply customer quality, efficiency. It shows
with the literature also. The second is relational LSQ, it is confirmed as understanding of
logistics service activities to adapt customer's needs, expectations and have the ability to
provide service qualities. In knowledge customer satisfaction is including both internal
and external of logistics service quality, business should focus on what factors that makes
the great impact influencing future strategic.

12


2.2 Satisfaction
There are many previous studies defining customer satisfaction as according to Oliver
(1980), Satisfaction is a function of perceived discrepancy from initial reference point.
Continue reading and researching, (Day, 1984) said that satisfaction is a consumer's
evaluation of perceived discrepancy between prior expectations and the actual
performance after its consumption. Beside Wangenheim (2003) also gave his opinion that

satisfaction is comparison between expected and received performance. According to
Oliver Richard (1997), satisfaction is consumer's feedback and the standard serves as the
basis for comparison. Although there have been measured in many ways, from previous
research have three aspects: general affective satisfaction, confirmation of expectation,
the distance from customers produces. From some literature, customer satisfaction is
advised the results of internal and external concept evaluation and comparison with
expect standard.
2.3 Customer loyalty
It is necessary to change from focus on winning new clients to focus on maintaining and
improving current client to develop customer loyalty. According to Bowersox and
Daugherty (1995), strategic supplier in logistics field is customer loyalty improving
current client to develop customer loyalty. Most of previous research about customer
loyalty but they are ambiguous and hard to implement. (Dick & Basu, 1994) Loyalty is
the strength of the relationship between a customer’s relative attitude and repeat
patronage. (Ellinger, Daugherty, & Plair, 1999) Loyalty is a long-term commitment to

13


repurchase involving both repeated patronage (repurchase intentions) and a favorable
attitude (commitment to the relationship). According to Estelami (2000), Loyalty is the
behavioral tendency of the consumer to repurchase from the firm. According to Dick &
Basu (1994), loyalty is relationship between emotions and behavior. According to loyalty
literature bases that concept loyalty as involving behavior and feelings, as well as Dick
and Basu (1994) productive concept, loyalty is explained as the strength of the relation
between a consumers’ AC toward the seller and the restatet PB with the selling company.
2.4 Conceptual model and hypothesis
Relational LSQ related the customer’s perceptions about logistics company staff.
Operational elements included commitment as promised service dependably and
accurately (Stank et al., 1999). According to Mentzer, Flint, and Hult (2001) Affective

Commitment affects Purchase Behavior Loyalty.
This included whether the customers understand the logistics company staff enough
experience and knowledgeable, listen with their situation, and helped them resolve issues.
Some previous researches show that staff contacts quality affected positively operational
LSQ elements ―(e.g., timeliness, order accuracy, order condition)‖. This helps company
understand clearly what the customer needs. Then, when leaning these needs, the supplier
can focus on their guide (Stank et al., 1999)
H1: “Relational LSQ has a positive effect on Operational LSQ”.
Operational and relational LSQ positively affect satisfaction. According to Mentzer et al.
(2001), there are many descriptions of logistics service quality create customer
14


satisfaction so business should keep own performance such as right amount right
products right place and time with right information (Coyle, Bardi, & Langley, 1996)
(Lambert & Stock, 1993). With numerous measurements, there are three aspects of
satisfaction, including: full satisfaction, expectations, and some real evidences.
According to Daugherty, Stank and Ellinger (1998) the research have both operational
and relational performance have positive connect to customer satisfaction. (Stank et al.,
1999) indicated that the relationship between OP and CS was positively linked together,
leading them to improve with higher level of consumer satisfaction. Whether relationship
between relational appearance and satisfaction (Stank, Goldsby, Vickery, & Savitskie,
2003) found that relational appearance proves a positive relation with satisfaction. They
concluded that OP is an ―order qualifier‖. Viewing LSQ from a process viewpoint
(Mentzer et al., 2001) also found that for different consumer parts satisfaction was
positively affected by different LSQ significance. The findings are measured; there is
sign to suppose that both operational LSQ and relational LSQ results satisfaction.
Therefore,
H2: “Operational LSQ has a positive impact on satisfaction”.
H3: “Relational LSQ has a positive impact on satisfaction”.

The next relationship demonstrated in the model is loyalty, already defined as the
causal relationship between affective commitment and purchase behavior. A number of
researchers have argued that affective commitment best describes the emotional
component of loyalty (Mahoney, Madrigal and Howard 2000). In the marketing channels
15


literatures, affective commitment expresses the extent to which channel members like to
maintain their relationship with specific partners (Geyskens et al 1996; Mattila 2004). It
represents an attitudinal affective orientation and a general positive feeling toward an
exchange partner that is apart from its purely instrumental worth (Ruyter and Wetzels
1999). Research suggests affective commitment is effective for developing and
maintaining mutually beneficial relationship between partners (Kumar, Hibbard and Stern
1994). For this research, affective commitment is defined as the strength of emotional
attachment and positive feelings that a customer has for supplier.
Loyalty is also demonstrated by the purchasing pattern over time (Dick and Basu
1994). It involves the likelihood of using a supplier again in the future (Jones,
Mothersbaugh and Beatty 2003), and refers to how long the customers has been using the
supplier, what the share of supply is currently and will be in the future compared to other
suppliers, and the likelihood of making purchases in the future. Therefore, purchase
behavior is defined as the likelihood of using a supplier’s products or service again in the
future.
Hansen and Hetn (2004) summarize loyalty by explaining that if a customer’s affective
commitment is high, it should bring about a wish and motivation to continue the
relationship. Since this type of commitment does not include any instrumental costbenefit evaluations, it is derived from the emotional pleasure associated with the
relationship partner, and the feelings of fondness developed within the relationship. As

16



such, affective commitment parties are inclined to maintain the relationship and exhibit
repeat purchasing behavior.
H4: “Affective commitment has a positive effect on purchasing behavior”.
The final is the relationship between satisfaction and loyalty. According to Wetzels,
De Ruyter and Van Birgelen (1998), there is the relation between SATIS and AC that
more satisfied customer are more effectively committed to the selling company.
(Johnson, Gustafsson, Andreassen, Lervik, & Cha, 2001) argued that satisfaction affects
repurchase intention behavior and strong relationship with customer loyalty also found a
positive relation and suggest that AC differentiates between true loyalty and spurious
loyalty. ―The most important difference between the two concepts is that true loyalty is
based on affective commitment and spurious loyalty is not based on any commitment at
all (but may be purchase behavior based upon a lack of alternatives)‖.
H5: “There is a positive relationship between SATIS and AC”.
H6: “The relationship between satisfaction and purchasing behavior is positive”

LSQ Components

Loyalty

Operational
LSQ

Affective
Commitment
H5
H2

Satisfaction

H1


H4

H3
H6
H6

Relational
LSQ

Purchase
Behavior
17


Figure 1 – Conceptual Model

3. Research methodology
This session presented research methodology which is used to do this research. It will
present research process, sample design, measurement scales and the technique of
analyzing data.
3.1 Research process
The research follows the procedure illustrated in the below chart:
Questionnaire Design
Literature
review

Draft
questionnaire


Revision

Final
questionnaire

A survey of 280
questionnaires

Reliability
analysis

CFA

Conclusion and
recommendations

Results

SEM analysis

Research
Objectives

Pilot survey
An interview of 10
respondents
Main survey and Data Analysis

Figure 2 - Research Process
18



After identifying research problem, research objectives and reviewing the literature,
the draft questionnaire was shown based on measurement used in same previous studies.
In research design step, there are 2 sub-steps:
Pilot survey: was conducted by interviewing 10 Logistics managers in supplier
companies about the contents, the structure of the questionnaire test the meaning of the
measurement scales. After that, the draft questionnaire was revised and the sample size
was determined.
Regarding this topic for master thesis, from 10.May.2018 to 19.May.2018, One survey
was done in my New Star Logistics - 56 Yen The, Ward 2, Tan Binh District. There are
15 respondents in this survey. All respondents are current NSL’s customer; they are
working as professional and long year experience in export -import field. The purpose of
this survey is to review the draft questionnaire, clarify some words and correct right
words to get final questionnaire. Then there is one survey with big sample will be done
and get data analysis to prepare for the presentation.
First of all, the survey participants were 3 members who are holding the position Sales
Manager, Planning Executive and Technical Executive in Foreign Companies. The
reason is that they don’t have enough right to choose forwarder in their company. The
first mistake in the survey was to select the wrong audiences. So the questionaire was
forwarded to General Director or Purchasing Manager who have enough right to choose
forwarder for their company. In addtion, the participants suggested that it’s necessary to

19


add ―Couriers Express Service‖ in question 2 Part 1 and should have definition before
starting each parts of questionaire.
Main survey: Final questionnaire were delivered directly and indirectly to
respondents who working in Logistics Company in Ho Chi Minh City. Data was

collected in two weeks.
In data analysis step, the collected data was used to test reliability and validity of the
measurement scales by Cronbach’s alpha coefficient. Then, AMOS used method to test
the hypotheses proposed in this study. The final step, the author discussed the findings
and conclusions based on the results of the above step.
3.2 Sample Design
According to Bollen (1989), the sample size should be as large as possible with the
minimum should be at least five times as the number of items to be analyzed and
preferably not less than 100. As there are 22 variables used for the factor analysis, the
necessary sample size should be: 22*5= 110 observations. In addition, for standard
analysis, the required sample is recommended by (Tabachnick & Fidell, 2001) should be:
n>50+8m (which m: number of independent variables). There are 04 independent
variables in this research. Hence the minimum sample required to run is: n>50+8*4=82
observations. The sample size is 280 observations which are appropriate for this research.
Samples were selected by convenience sampling method combined with criteria:
respondents used to use logistics services. Pilot study held 200 emails survey, along with
discussions with logistics manager to develop the questionnaire in this study. For the
20


email survey, participants from both sexes were selected. During these interviews,
participants were questioned on various aspects concerning the logistics services, and on
how they evaluated their satisfaction to logistics service. After testing the survey, the
questionnaire was revised and prepared for the main survey.
3.3 Measurement Scales
Operational LSQ
According to Stank et al. (2003), ―Operational LSQ is defined as perceptions of logistics
activities performed by service providers that contribute to consistent quality,
productivity and efficiency‖. This factor was measured on a seven-point Likert-type scale
ranging from 1 = Strongly Disagree to 7 = Strongly Agree in order to explore the opinion

of the respondents by statement as below:
(1): Strongly disagree;

(2): Disagree

(3): Fairly disagree

(4): Neutral

(5): Fairly agree

(6): Agree

Statement

(7): Strongly Agree
Code

1.There are special orders for completing orders.

OP1

2. Existing service providers deliver as promised.

OP2

3.Goods are delivered on or before the requested delivery

OP3


date.
4.Many orders complete as desired.

OP4

5. Supplier deals with order issues as soon as the order

OP5

arrives.

21