Factors Influencing Customer Loyalty in International Freight Forwarding Services

Main Article Content

Aannicha Thunyachairat
Puthipong Tanaveerakul


In the highly competitive freight forwarding market, relying solely on a pricing strategy proves insufficient for sustainable business growth. This study focuses on factors influencing customer loyalty in the international freight forwarding services, particularly within Small and Medium-sized Enterprises (SMEs) in Thailand. The research reveals the significant impact of service quality on customer satisfaction, with each aspect of service quality positively contributing to overall satisfaction. Notably, the ability to manage orders demonstrates the highest positive correlation with customer satisfaction, followed by logistics cost reduction and visibility.

The findings affirm that customer satisfaction plays a crucial role in building customer loyalty and perceived procedural switching costs. Interestingly, the study reveals that the actual cost of switching services does not significantly influence customer loyalty.

To foster a positive service experience, freight forwarders should prioritize maintaining high standards of service quality. Additionally, they should develop strategies to manage switching costs effectively, potentially involving relationship management strategies to build trust and loyalty. By doing so, freight forwarders can enhance customer retention, paving the way for future business growth."

Article Details

How to Cite
Thunyachairat, A., & Tanaveerakul, P. (2024). Factors Influencing Customer Loyalty in International Freight Forwarding Services. University of the Thai Chamber of Commerce Journal Humanities and Social Sciences, 44(1), 47–67. Retrieved from https://so06.tci-thaijo.org/index.php/utccjournalhs/article/view/267711
Research Articles


สุพจน์ ชววิวรรธน์. (ม.ป.ป.). เอกสารประกอบการบรรยาย เรื่อง ธุรกิจผู้รับจัดการขนส่งสินค้าระหว่างประเทศ. สืบค้นเมื่อ 20 กันยายน 2566, จาก https://shorturl.asia/XCpoF

Al-Msallam, S. (2015). The relationship between customer satisfaction and customer loyalty in the banking sector in Syria. Journal of Marketing and Consumer Research, 7, 27-34.

Anderson, R. E., & Swaminathan, S. (2011). Customer satisfaction and loyalty in e-market: A PLS path modeling approach. Journal of Marketing Theory and Practice, 19(2), 211-234. doi:10.2753/MTP1069-6679190207

ASEAN Secretariat. (2015). The ASEAN economic community blueprint 2025. Retrieved from https://asean.org/wp-content/uploads/2021/08/AECBP_2025r_FINAL.pdf

Burnham, T. A., Frels, J. K., & Mahajan, V. (2003). Consumer switching costs: A typology, antecedents, and consequence. Journal of the Academy of Marketing Science, 31(2), 109-126. doi:10.1177/0092070302250897

Chen, H., & Qi, Y. (2016). The evaluation of customer satisfaction with the third party logistics service quality for online shopping. Advances in Economics and Business, 4(5), 201-207. doi:10.13189/aeb.2016.040501

Chuah, S.H-W., Marimuthu, M., Kandampully, J., & Bilgihan, A. (2017). What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain. Journal of Retailing and Consumer Services, 36, 124-136. doi:10.1016/j.jretconser.2017.01.010

Coletta, L., Vainieri, M., Noto, G., & Murante, A. M. (2021). Assessing inter-organizational performance through customer value: A literature review. Journal of Business and Industrial Marketing, 36 (13), 1-13. doi:10.1108/JBIM-07-2020-0353

Dagger, T. S., & David, M. E. (2012). Uncovering the real effect of switching costs on the satisfaction-loyalty association: the critical role of involvement and relationship benefits. European Journal of Marketing, 46(3/4), 447-468. doi:10.1108/03090561211202558

Gee, R., Coates, G., & Niccholson, M. (2008). Understanding and profitable managing customer loyalty. Marketing Intelligent and Planning, 26(4), 359-374.

Guo, L., & Guo, H. (2020). Research on granger causality between logistics industry and regional economic development in Yangtze River Delta. China Market, 11(2), 1-4.

Hair, J., Anderson, R., Tatham, R., & Black, W. (1998). Multivariate data analysis (5th ed.). Upper Saddle River, NJ: Prentice Hall.

Hong, W., Zheng, C., Wu, L., & Pu, X. (2019). Analyzing the relationship between consumer satisfaction and fresh e-commerce logistics service using text mining techniques. Sustainability, 11(13), 3570. doi:10.3390/su11133570

Huang, S., Bulut, E., & Duru, O. (2019). Service quality evaluation of international freight forwarders: An empirical research in East Asia. Journal of Shipping and Trade, 4(10), 1-16. doi:10.1186/s41072-019-0053-6

Ishikawa, K. (2021). The ASEAN economic community and ASEAN economic integration. Journal of Contemporary East Asia Studies, 10(1), 24-41. doi:10.1080/24761028.2021.1891702

Jones, M. A., Mothersbaugh, D. V., & Beatty, S. E. (2002). Why customers stay: Measuring the underlying dimensions of service switching costs and managing their differential strategic outcomes. Journal of Business Research, 55(6), 441-450.

Khan, S. A. R. (2019). The nexus between carbon emissions, poverty, economic growth, and logistics operations-empirical evidence from southeast Asian countries. Environmental Science and Pollution Research, 26(1), 13210-13220. doi:10.1007/s11356-019-04829-4

Kilibarda, M., Nikolicic, S., & Andrejić, M. (2016). Measurement of logistics service quality in freight forwarding companies: A case study of the Serbian market. The International Journal of Logistics Management, 27(3), 770-794. doi:10.1108/IJLM-04-2014-0063

Lam, S. Y., Shankar, V., Erramilli, M. K., & Murthy, B. (2004). Customer value, satisfaction, loyalty, and switching costs: An illustration from a business-to-business service context. Journal of the Academy of Marketing Science, 32(3), 293-311. doi:10.1177/0092070304263330

Lee, M., & Cunningham, L. F. (2001). A cost/benefit approach to understanding service loyalty. Journal of Service Marketing, 15(2), 113-130. doi:10.1108/08876040110387917

Liat, C. B., Mansori, S., & Huei, C. T. (2014). The associations between service quality, corporate image, customer satisfaction, and loyalty: Evidence from the Malaysian hotel industry. Journal of Hospitality Marketing and Management, 23, 314-326. doi:10.1080/19368623.2013.796867

Liu, A. H. (2006). Customer value and switching costs in business services: Developing exit barriers through strategic value management. Journal of Business and Industrial Marketing, 21(1), 30-37. doi:10.1108/08858620610643157

Meng, J., & Elliott, K. M. (2009). Investigating structural relationship between service quality, switching costs, and customer satisfaction. Journal of Applied Business Economics, 9(2), 54-66.

Meng, Q., Zhou, N., Tian, J., Chen, Y., & Zhou, F. (2011). Analysis of logistics service attributes based on quantitative Kano model: A case study of express delivering industries in China. Journal of Service Science and Management, 4(1), 42-51. doi:10.4236/JSSM.2011.41007

Nugroho, S., Kempa, S., & Panjaitan, T. W. (2020). Logistic service quality and customer satisfaction to customer retention on rice producer industry. SHS Web of Conferences, 76, 01048. doi:10.1051/shsconf/20207601048

Paliszkiewicz, J. (2011). Inter-organizational trust: Conceptualization and measurement. International Journal of Performance Measurement, 1(11), 15-28.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implication for future research. Journal of Marketing, 49, 41-50. doi:10.2307/1251430

Porter, M. (1998). Competitive advantage: Creating and sustaining superior performance. New York, NY: The Free Press.

Rather, R. A., & Sharma, J. (2017). Customer engagement for evaluating customer relationships in hotel industry. European Journal of Tourism Hospitality and Recreation, 8(1), 1-13. doi:10.1515/ejthr-2017-0001

Rauyruen, P., & Miller, K. E. (2007). Relationship quality as a predictor of B2B customer loyalty. Journal Business Research, 60(1), 21-31. doi:10.1016/j.jbusres.2005.11.006

Restuputri, D. P., Indriani, T. R., & Masudin, I. (2021). The effect of logistic service quality on customer satisfaction and loyalty using kansei engineering during the COVID-19 pandemic. Cogent Business and Management, 8(1), 1-35. doi:10.1080/23311975.2021.1906492

Siali, F., Wen, A. W. S., & Ahmad Hajazi, M. U. (2018). Booming of online shopping in Malaysia: Do customers satisfy with parcel delivery service? International Journal of Academic Research in Business and Social Sciences, 8(12), 415-435. doi:10.6007/IJARBSS/v8-i12/5042

Simanjuntak, M., Putri, N. E., Yuliati, L. N., & Sabri, M. F. (2020). Enhancing customer retention using customer relationship management approach in car loan business. Cogent Business and Management, 7(1), 173-182.

Sohn, J., Woo, S.-H., & Kim, T.-W. (2017). Assessment of logistics service quality using the Kano model in a logistics-triadic relationship. The International Journal of Logistics Management, 28(2), 680-698. doi:10.1108/IJLM-09-2015-0172

Sugiyarti, G. (2020). Switching cost and customer satisfaction antecedents for successful customer loyalty. International Journal of Latest Engineering and Management Research (IJLEMR), 5(6), 64-73.

Thailand freight and logistics market size and share analysis: Growth trends and forecasts up to 2029. (n.d.). Retrieved September 20, 2022, from https://www.mordorintelligence.com/industry-reports/thailand-freight-and-logistics-market

Wang, C.-Y. (2010). Service quality, perceived value, corporate image, and customer loyalty in the context of varying levels of switching costs. Psychology and Marketing, 27(3), 252-262. doi:10.1002/mar.20330

Yang, Z., & Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psychology and Marketing, 21(10), 799-822. doi:10.1002/mar.20030