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Investigating the influence of velocity performance on satisfaction with third party logistics service |
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| Authors: | Elten Briggs [Author Vitae] Timothy D. Landry [Author Vitae] Patricia J. Daugherty [Author Vitae] |
| Affiliation: | a The University of Texas at Arlington, College of Business, Department of Marketing, Box 19469, Arlington, TX, USA b University of Alabama-Huntsville, College of Business Administration, Management & Marketing Dept., BAB 355, Huntsville, AL 35899, USA c The University of Oklahoma, Michael F. Price College of Business, Division of Marketing and Supply Chain Management, 307W. Brooks, Room 2, Norman, OK 73019-4001, USA |
| Abstract: | The Third Party Logistics (3PL) service industry is characterized by customer relationships that can extend over several years, involving multiple instances of service delivery. When services are delivered on an ongoing basis, customers are able to not only evaluate positional (current) performance, but also velocity (rate at which the service changes) performance. This research presents findings from an empirical study utilizing an online survey of 3PL customers to examine the influence of these two types of performance on 3PL service satisfaction. Environmental moderators including market turbulence and competitive intensity are also examined, and results indicate that velocity performance is a more important driver of satisfaction when customers operate in industries characterized by high market turbulence. The findings suggest that 3PL service providers should implement velocity performance metrics, especially for customers operating in rapidly changing environments, and use velocity performance information during the sales process and customer negotiations. |
| Keywords: | Velocity performance Market turbulence Competitive intensity Service satisfaction 3PL |
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