Applying loss aversion to investigate service quality in logistics: A moderating effect of service convenience

Abstract

Purpose

Using the concept of loss aversion, this paper aims to investigate the relationship between service quality and customer loyalty in the home delivery industry. The second purpose of this paper is to investigate the moderating effect of service convenience in the relationship between service quality and customer loyalty. Furthermore, this paper attempts to demonstrate the existence of a moderating effect either on the service quality loss (SQLOSS)‐customer loyalty link, or on the service quality gain (SQGAIN)‐customer loyalty link, or on both.

Design/methodology/approach

In this paper, the research model and hypotheses are constructed through a literature review. Data are collected by a questionnaire survey, and the adapted SERVQUAL scale is taken as the measurement instrument. Structural equation modeling is adopted to confirm the above relationships.

Findings

From the results come the finding that a loss in service quality has a greater effect on customer loyalty than that of a SQGAIN in the home delivery industry. This paper also proves that the relationship between service quality and customer loyalty is moderated by service convenience.

Originality/value

This paper demonstrates the effect of asymmetric response of service quality on customer loyalty.

Citation

Hsu, C., Chen, M., Chang, K. and Chao, C. (2010), "Applying loss aversion to investigate service quality in logistics: A moderating effect of service convenience", International Journal of Operations & Production Management, Vol. 30 No. 5, pp. 508-525. https://doi.org/10.1108/01443571011039605