Applying service-profit chain : an empirical investigation in the logistics industry

Pao Yue-kong Library Electronic Theses Database

Applying service-profit chain : an empirical investigation in the logistics industry

 

Author: Choi, Shu-kit Joe
Title: Applying service-profit chain : an empirical investigation in the logistics industry
Degree: M.Sc.
Year: 2005
Subject: Hong Kong Polytechnic University -- Dissertations
Business logistics -- Management
Consumer satisfaction
Customer services
Department: Graduate School of Business
Pages: vi, 50 leaves : ill. ; 30 cm.
InnoPac Record: http://library.polyu.edu.hk/record=b1841518
URI: http://theses.lib.polyu.edu.hk/handle/200/5566
Abstract: Heskett et al (1991) of Harvard Business School introduced a model named as Service Profit Chain (S-PC), in which they showed a chain relationship of internal service quality, employee satisfaction, employee loyalty, productivity, customer value, customer satisfaction, customer loyalty, and profitability. There are various studies on the concept on different service industries. The logistics industry, as one of the main service industries in Hong Kong, was covered by previous studies. I carried out an empirical research about S-PC in the logistics industry. The first objective of this study is to understand the importance of each element within S-PC concept model and how they are related to each other in the logistics industry. Then, I investigated if the S-PC could be applied to help the companies to improve their profitability. Finally, some managerial. advices will be given to LSP companies in the process of formulating strategies with reference of the S-PC model and research result.
A qualitative research with case study was used to achieve the objective. This is an effective way to examine and explain the relationship of S-PC elements and explore the reason why they are or are not related. Semi- structured type questions were used during the interviews. People with a minimum of three years experience in the industry were our target respondents. The collected data suggested that the characteristics of the relationship of S-PC elements and the application of S-PC in the logistics industry. This research shows both loyalty customer and loyal employee are important to logistics service providers. Service quality including employees' performance is main element to retain customers. The respondents generally agreed that S-PC could be applied and working effectively in the industry. To satisfy employee could enable S-PC work properly. Organizations could improve employee retention by rewards system, group activities, regular communication and job skill related training.

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