Linking customized logistics service in online retailing with E-satisfaction and E-loyalty

Abstract

Online retailers are providing customized logistics service to meet heterogeneous customer demand. However, the value of customized logistics service is not clear. We study conceptually and empirically how customized logistics service influences online customer post-purchase behavior, specifically e-satisfaction and e-loyalty. Primary data on customized logistics service were collected from an online field study involving direct observation. Secondary data on e-satisfaction and e-loyalty were collected from Bizrate.com. We used hierarchical multiple regression analyses and constrained nonlinear regression for empirical analysis. The results indicate that customized logistics service contributes significantly to e-satisfaction and, in turn, to e-loyalty. Furthermore, shipping rates significantly moderate the indirect effect of customized logistics service on e-loyalty through e-satisfaction. This research contributes to the understanding of the nature and consequences of customized logistics service in online retailing. Our findings underscore the effect of customized logistics service on e-satisfaction and e-loyalty, and the critical moderation effects of shipping rate on these relationships. Results from this study hold implications for the way online service operations managers employ logistics service strategy.