The impact of port service quality on customer satisfaction: The case of Singapore
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The impact of port service quality on customer satisfaction: The case of Singapore Vinh V Thai Division of Infrastructure Systems & Maritime Studies, School of Civil and Environmental Engineering, Nanyang Technological University, N1-01c-81, 50 Nanyang Avenue, 639798, Singapore.
Abstract
This study investigates the concept of Port Service Quality (PSQ) and examines its influence on customer satisfaction in the port sector. Following a literature review, a conceptual model of PSQ and its influence on customer satisfaction is proposed. The model is first checked for validity in an interview with senior executives working in various container shipping lines in Singapore, then validated through a survey of 175 members of the Singapore Shipping Association and Singapore Logistics Association. A confirmatory factor analysis, followed by multiple regression is conducted to confirm the PSQ construct and examine the relationship between PSQ and customer satisfaction. It is found that PSQ is a four-dimensional construct and that the relationship between PSQ and customer satisfaction is positively significant. Specifically, the PSQ dimensions of outcomes, management, process and image and social responsibility all have significant positive impact on customer satisfaction. This study contributes to management practice as port managers can use the PSQ scale to measure their customers’ satisfaction, and justify investments in port service quality as a relational marketing instrument. This research also contributes to theory building, as it presents and validates the respective model of PSQ and customer satisfaction specifically for the port sector.
Maritime Economics & Logistics advance online publication, 4 June 2015; doi:10.1057/mel.2015.19
Keywords: port service quality; customer satisfaction; ROPMIS; SERVQUAL; maritime industry
Introduction Ports play the role of nodes for both inbound and outbound logistics processes, that is, platforms where logistics-related activities occur, and are also important © 2015 Macmillan Publishers Ltd. 1479-2931 Maritime Economics & Logistics www.palgrave-journals.com/mel/
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national economic contributors. In this context, seaports are not only where cargoes are loaded/discharged onto/from vessels but also distribution centres where value-added services such as labelling, packaging, cross-docking and so on, are provided (World Bank, 2007). Ports integrate further to value chains by adding more value to shipments while in the port area. The role of ports is therefore essential as these transport nodes are indispensable for the effective and efficient management of the flows of products and information in supply chains. Any failure or unreliability of port services can greatly influence the smooth movement of these flows in the next stage of the supply chain and make port customers – shipping lines and cargo owners – unhappy. This role of ports in supply chains is increasingly seen not only in academic literature but also in management practice. Many ports are increasingly perceived as integ
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