[Research Contribution] Satisfaction with Logistics Service Quality in the Digital Era – Empirical Research in the Mekong Delta

28 February, 2025

Keywords: Logistics service quality, Retention, Customer satisfaction.

With the strong development of online shopping, customer care policies and strategies are the top priority in maintaining loyal customers, especially through the quality of application platforms of logistics service providers (LSPs). The author’s research at the Ho Chi Minh City University of Economics Branch in Vinh Long Province (UEH Mekong) used the Technology – Organization – Environment (TOE) model to analyze factors affecting logistics service quality by assessing customer satisfaction in the relationship between businesses and B2C consumers. The research results demonstrate that when combining 08 factors in logistics service quality together, they all affect customer satisfaction and better customer retention.

The need to evaluate logistics service quality for customer satisfaction

In the context that Vietnam’s economy is increasingly integrating deeply into the global economy, the logistics service industry plays an indispensable role in promoting trade growth, reducing transportation costs, and optimizing supply chains. In Vietnam, the logistics industry has made strong progress in the past decade whereas this industry has been facing many challenges, especially in the Mekong Delta region (MD), where logistics infrastructure is not yet complete, and logistics service providers are facing major challenges in terms of capital, infrastructure and technology, leading to difficulties in improving the quality of logistics services. Therefore, this study aims to analyze the impact of Logistics Service Quality (LSQ) factors on customer satisfaction and loyalty in the B2C market, contributing specific solutions to improve the operational efficiency of the logistics industry in Vietnam.

The demand for logistics services in the digital age, especially in the context of strong e-commerce development, has created a huge opportunity but also many challenges for Logistics Service Providers (LSPs). An important factor affecting the development of the industry is LSQ, and the way this quality is managed will directly affect customer satisfaction and loyalty, as well as the competitiveness of service providers. With the development of Logistics 4.0 and advances in automation technology, improving the quality of logistics services is a necessary issue for LSPs to maintain connectivity and to meet the increasing expectations of customers.

Moreover, in the context of the Mekong Delta region, where the economy is mainly based on agricultural products and export activities, optimizing logistics services plays a decisive role in promoting regional economic growth. Although logistics service providers have great potential, they are facing problems like a lack of infrastructure and technology. This requires a deeper study of logistics service quality to propose solutions to improve service efficiency and enhance customer satisfaction.

Logistics service quality’s direct effects on customer satisfaction

The main research subjects of this topic are LSPs in the Mekong Delta region, especially small and medium enterprises in the industry. This group of subjects face difficulties in applying new technologies and improving their service quality because of financial and infrastructure limitations. These LSPs play an important role in transporting goods from manufacturers to consumption points and directly affect customer satisfaction in B2C (Business To Customer) relationships.

In addition to LSPs, this study pays attention to those customers of logistics enterprises, especially online retailers and consumers in the Mekong Delta. With the development of e-commerce, consumers increasingly demand high-quality logistics services, from on-time delivery and product quality protection to effective customer care services. Therefore, the study not only helps LSPs improve service quality but also helps consumers have better experiences in using logistics services. LSQ is identified as an important factor affecting customer satisfaction and retention. Logistics service quality is related to the ability to transport goods safely and on time in addition to other factors like information quality, on-time delivery, handling of arising problems (such as order errors), and customer support. Previous studies have shown that LSQ has a direct relationship with customer satisfaction, which in turn affects customer loyalty and the decision to reuse the service.

Through analyzing the factors affecting LSQ, it can be identified that in the context of digitalization, technological factors (like the quality of technology applications) have a strong influence on the quality of logistics services. Moreover, the application of new technology models like self-driving cars and warehouse robots can help reduce labor costs and optimize logistics processes, improving service quality. However, LSPs in the Mekong Delta region are facing difficulties in accessing advanced technology and need support in the digital transformation process.

The study demonstrates that customer satisfaction is not only affected by service quality but also by factors such as reasonable prices, information transparency, and timely response from LSPs to issues arising during the service provision process. In particular, in the context of e-commerce, maintaining customer satisfaction will help increase revenue and build long-term relationships with customers.

Impacts of logistics service quality on management at logistics enterprises

To improve the quality of logistics services in the Mekong Delta region, LSPs need to invest in automation technology and apply information technology to improve efficiency in warehouse management, transportation and delivery. Technologies like self-driving cars and warehouse robots can help reduce labor costs, increase accuracy and optimize the delivery process. In addition, LSPs need to ensure that providing accurate and transparent information on order status and delivery progress is a key factor in improving customer satisfaction through investing in information management systems to help customers easily track and receive timely notifications about order status.

To retain customers, LSPs need to focus on customer service quality. Timely handling of arising problems and providing effective after-sales service will help build trust and satisfaction from customers. Therefore, LSPs need a qualified and professionally trained workforce to help them improve work efficiency and best meet customer needs. In particular, LSPs need to establish close cooperation with other service providers like software vendors, transport units, and government agencies to improve infrastructure and logistics services.

Implications for logistics service providers in the Mekong Delta

The results of this study highlight the importance of logistics service quality in promoting customer satisfaction and retention. In the context of digitalization and the development of E-commerce, LSPs need to actively adopt new technologies and improve service quality to meet the increasing demands of customers. Concurrently, factors like reasonable prices, information quality and customer serviceplay an important role in enhancing customer satisfaction and loyalty.

Addressing the challenges in improving logistics service quality will help LSPs improve operational efficiency and strengthen their competitiveness in the global market. This study provides practical solutions for logistics service providers, both in the Mekong Delta and nationwide.

UEH’s research makes an important contribution to clarifying the relationship between LSQ and customer satisfaction in the logistics industry in Vietnam, especially in the Mekong Delta region. The research results shed light on the factors affecting customer satisfaction and help LSPs improve their service strategies, especially in the context of digital transformation and E-commerce development. The application of the Technology-Organization-Environment (TOE) model to the research has provided a solid theoretical framework, allowing for in-depth analysis of technological, organizational and environmental factors affecting the improvement of logistics service quality and customer satisfaction.

Therefore, to improve customer satisfaction and retention, LSPs need to focus on improving information quality, ensuring timeliness and accurate order processing, and applying modern technology to enhance management efficiency and minimize differences in service delivery. Policies to support logistics enterprises, especially small and medium enterprises, in technological innovation and service quality improvement will create momentum for the sustainable development of the logistics industry in Vietnam. The study also emphasizes the importance of developing infrastructure and improving connectivity between regions to minimize negative environmental impacts and to improve the overall efficiency of the logistics industry in the digital economy.

The full-text research article on Satisfaction with Logistics Service Quality in the Digital Era – Empirical Study in the Mekong Delta can be accessed HERE.

Authors: Truong Thi Nhi, Le Minh Triet – University of Economics Ho Chi Minh City.

This article is part of a series spreading research and applied knowledge with the message “For a More Sustainable Mekong”, under the program “Research Contribution For All” implemented by UEH. UEH cordially invites readers to read the next UEH Research Insights newsletter.

News, photos: The authors, UEH Mekong Department of Admissions and Communications, UEH Department of Communications and Partnerships