Logistic Service Quality and Customer Satisfaction to Customer Retention on Rice Producer Industry

¹ Faculty of Business and Economics, Petra Christian University, Siwalankerto 121–131, Surabaya 50236, Indonesia
² School of Earth and Environmental Sciences, Queensland University, St. Lucia QLD 4057, Australia

^* Corresponding author: sesilya.kempa@petra.ac.id

Abstract

Good quality logistic services from the company can make customers feel satisfied and make purchases back to the company. in the form of rice shops will This study aims to look at the effect of logistic service quality on customer retention through customer satisfaction. This study investigates the service quality of logistic providers that are hired by the rice producers in distributing rice to rice retailers. The samples in this study are 36 rice retailers who have used logistic services at least two times. Data obtained from the questionnaire are processed using partial least square (PLS). The results of this study provide evidence that logistic service quality affects customer retention and customer satisfaction. Further results show that dissatisfied customers will significantly reduce customer retention with a statistical value of 2.754. Intervening results in this study indicate that there is an influence between logistic service quality on customer retention through customer satisfaction.