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FACTORS AFFECTING CUSTOMER LOYALTY IN THIRD PARTY LOGISTICS IN KENYA: A CASE OF ROY HAULIERS LIMITED


Mary Mutete Mwanzia

Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

Services are by their very nature intangible and thus their assessment and subsequent evaluation cannot be achieved prior to their consumption; this justifies their classification as “experience” products. This results in high uncertainty in customers’ minds, forcing them to concentrate on certain quality signals or service attributes to decrease information asymmetries. Relationship marketing has thus emerged as an exciting area of marketing that focuses on building long-term relationships with customers and other parties. The study found that the most significant amongst factors affecting customer loyalty in third party logistics relationships in Kenya are Economic Switching Barriers followed by Customer Expectation, Price & Service Quality and finally Price. Thus, it was concluded that these factors need to be investigated in order to remediate the Customer Loyalty in Third Party Relationships in Kenya. The study adopted a descriptive research design statistics to generate the required frequencies and percentages to interpret and answer the research questions. The respondents were drawn from the employees of Roy Hauliers Limited which according to human resource department of the company has 232 employees. A sample of 20% (46 respondents) from within each group in proportions that each group bear to the population as a whole will be taken using stratified random sampling. Primary data was gathered using a self- administered questionnaire. A pilot test was carried out to test the validity and reliability of the research instruments. Data collected was purely quantitative and it was analysed by descriptive analysis. Data analysis used was SPSS to generate quantitative reports through tabulations, percentages, and measures of central tendency. Tables were used to present responses and facilitate comparison. This was to generate quantitative reports through tabulations, percentages, and measure of central tendency. Regression analysis technique was used to enable the researcher to assess the ability of an independent variable(s) to predict the dependent variable(s).


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