Assessing Service Quality,Switching Costs and Customer Loyalty in Home‐Delivery Services in Taiwan

Abstract

This study empirically investigated service quality, switching costs and customer loyalty from home‐delivery services' customers' perceptive. With regard to service quality attributes, findings indicated that customers were most satisfied with ‘range of delivery’, followed by ‘seldom loses parcels’, ‘invoice accuracy’, ‘prompt and reliable collection’ and ‘delivery by due time’. They were least satisfied with competitiveness of price. A structural equation modelling (SEM) approach was employed to analyse the impact of service quality and switching costs on customer loyalty from customers' perspective. Results revealed that service quality positively influenced switching costs and customer loyalty, and switching costs had a positive effect on customer loyalty. Investigation of the moderating effect of switching costs on the relationship between service quality and customer loyalty indicated that it was significantly important. Theoretical and practical implications of the findings for firms providing home‐delivery services are discussed.