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BUSINESS & MANAGEMENT STUDIES:
AN INTERNATIONAL JOURNAL
Vol.:8 Issue:3 Year:2020, 2675-2693
Business & Management Studies: An International Journal Vol.:8 Issue:3 Year:2020, 2675-2693
Bu makale, araştırma ve yayın etiğine uygun hazırlanmış ve intihal taramasından geçirilmiştir.
ISSN: 2148-2586
Research Article
Citation: Dündar, A.O. & Öztürk, R., The Effect Of On-Time Delivery On Customer
Satisfaction And Loyalty In Channel Integration, BMIJ, (2020), 8(3): 2675-2693, doi:
http://dx.doi.org/10.15295/bmij.v8i3.1520
THE EFFECT OF ON-TIME DELIVERY ON CUSTOMER
SATISFACTION AND LOYALTY IN CHANNEL INTEGRATION1
Abdullah Oktay DÜNDAR2 Received Date (Başvuru Tarihi):
28/05/2020
Resul ÖZTÜRK3
Accepted Date (Kabul Tarihi):
13/07/2020
Published Date (Yayın Tarihi): 25/09/2020
In the article, the first author is in the role of the Corresponding Author.
ABSTRACT
Keywords:
Electronic commerce,
Channel Integration,
On-time Delivery,
Customer Satisfaction,
Customer Loyalty
JEL Codes:
M11, M30, M31
In this study, creating customer satisfaction and customer loyalty by channel
integration with on-time delivery was examined as a result of using physical and online
channels together in order to investigate whether the goals of businesses and consumers
were compatible. 436 consumers in Konya benefiting from the online shopping service were
surveyed online by simple random sampling, and the data obtained were analyzed through
the SPSS 23.0 package program. The relationships between the variables in the study were
analyzed with the help of multiple regression analysis. In the study, channel integration
was determined to have a positive and statistically significant effect on on-time delivery. It
was also concluded that channel integration and on-
time delivery had a positive and
statistically significant effect on customer satisfaction and loyalty.
KANAL ENTEGRASYONUNDA ZAMANINDA TESLİMATIN MÜŞTERİ
MEMNUNİYETİ VE SADAKATİNE ETKİSİ
ÖZ
Anahtar Kelimeler:
Elektronik Ticaret,
Kanal Entegrasyonu,
Zamanında Teslimat,
Müşteri Memnuniyeti,
Müşteri Sadakati
JEL Kodları:
M11, M30, M31
İşletmeler ve tüketicilerin amaçlarının uyumlu hale gelip gelmediğini araştırmak
amacıyla bu çalışmada fiziksel ve çevrimiçi kanalların birlikte kullanılması sonucunda
kanal entegrasyonunun zamanında teslimat ile müşteri memnuniyeti ve müşteri sadakati
oluşturması incelenmiştir. Çevrimiçi alışveriş hizmetinden yararlanan Konya’da 436
tüketiciye basit tesadüfi örnekleme yoluyla online ortamda anket uygulaması yapılmış ve
elde edilen veriler SPSS 23.0 paket programı aracılığıyla analiz edilmiştir. Araştırmaya
konu olan değişkenler arasındaki ilişkiler çoklu regresyon analizi yardımıyla analiz
edilmiştir. Araştırmada kanal entegrasyonunun zamanında teslimat üzerinde pozitif yönlü
ve istatistiksel bakımdan anlamlı bir etkisi olduğu tespit edilmiştir. Ayrıca kanal
entegrasyonu ve zamanında teslimatın müşteri memnuniyeti ve sadakati üzerinde de
pozitif yönlü ve istatistiksel bakımdan anlamlı bir etkisi olduğu sonucuna ulaşılmıştır.
1 This article was derived from the paper titled “Kanal Entegrasyonunda Zamanında Teslimatın Müşteri Memnuniyeti ve
Sadakatine Etkisi”, which was presented online at the Al-Farabi Journal 7th International Social Sciences Congress held on 1-2
May 2020 and published in full text in the proceedings book.
2 Assist. Prof., Necmettin Erbakan University, Faculty of Applied Sciences, Department of Transportation and Logistics,
aodundar@erbakan.edu.tr, https://orcid.org/0000-0002-8508-165X
3 Corresponding Author, Assist. Prof., Necmettin Erbakan University, Faculty of Applied Sciences, Department of Management
Information Systems, drrslozturk@gmail.com, https://orcid.org/0000-0003-1493-7315
Abdullah Oktay DÜNDAR & Resul ÖZTÜRK
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1. INTRODUCTION
The innovations emerging in internet technology in recent years bring about
changes in the retailing sector. In addition to the many advantages, the internet offers
to businesses, the use of online channels by consumers increases and leads to its
adoption. This creates a rivalry between physical and online stores. The competition
also causes a change in consumer behaviour and consumers trying to benefit from
this competition in a positive manner start using one channel for different purposes
during a purchasing behaviour and making purchases from the other channel. This
new competitive environment and changes in consumer behaviour force retailers to
operate simultaneously on many channels. This necessity is felt more during the
campaign periods like Black Friday etc. While businesses offer advantages such as
product variety and price through online channels during campaign periods, they
can deliver some products to consumers in a month or later since the logistics
services are insufficient due to sales density.
On the contrary, while businesses can deliver instantly from physical stores,
they can offer less variety and price advantages compared to online channels. In both
cases, customer satisfaction is not sufficient. Therefore, in order to survive in the
competition, many businesses start operating on more than one channel at the same
time. In this multi-channel and competitive environment, retailers are becoming
more innovative in delivering products and services via channel integration. Today,
large retailers such as Wallmart, Best Buy and Gap offer their customers services
such as delivery and returns of products purchased through online channels from
physical stores (Gallino et al., 2017). Thus, retailers combine the strengths of each
channel with channel integration and gain a competitive advantage by reducing their
weaknesses.
Due to the competitive advantages mentioned above, channel integration
seems to be an essential strategy for business development for retailers, but its effects
on the customer remain uncertain (Herhausen et al., 2015). Based on this uncertainty,
the purpose of this study is to reveal whether retailers operating in both physical and
online stores create customer satisfaction and loyalty by applying a channel
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integration strategy through logistics outputs such as on-time delivery of products
offered to consumers.
2. CONCEPTUAL FRAMEWORK
Businesses need distribution channels to market their products to consumers,
and a channel’s performance is associated with increased product sales, market share
and adequate customer service support. As businesses have the option of performing
their distribution functions, channel integration is a matter that can directly affect the
performance of businesses (Aulakh and Kotabe, 1997). There has been an
extraordinary growth in electronic commerce from business to consumer (B2C) with
the commercialization of the internet since the early 1990s (Ranganathan and
Ganapathy, 2002). Businesses operating traditionally have also begun to offer online
services through the internet, which has led to increased competition between online
and physical stores. Thus, businesses have started to provide high-quality products
to customers by creating customer service and online information systems such as
supply, order, payment, after-sales service requests as well as affordable prices (Yang
et al., 2003).
On the other hand, the proliferation of channels causes a change in consumer
behaviour. At this point, two behaviours arise showrooming and webrooming.
Showrooming is defined as the fact that some customers who cannot physically see
the product in online channels see the product in physical stores and make their
purchases in online channels (Neslin et al., 2014). In this way of behaviour, the
consumer eliminates the disadvantages of online channels on his/her behalf, and
benefits from the advantages offered by these channels, incredibly low prices etc.
Unlike showrooming, webrooming is to use online channels to collect information
about the product and to make purchases from physical stores (Flavián et al., 2016).
In this way, the consumer uses online channels to compare products, reducing the
time he/she will waste in physical stores and can receive the product immediately
after purchasing it from the physical store.
With the growth of retailers offering only online service in recent years, the
retail sector seems to be divided into two as physical merchandising and online
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merchandising. However, the “brick-and-click” business model, which means that an
online service retailer opens a physical store, has gained importance. In this business
model, by integrating its service processes into multiple channels, the retailer can use
the strengths of each channel and offer its customers multiple channel access and
innovative services (Oh et al., 2012). With channel integration, businesses can get the
opportunity to present their products to consumers on the internet or in online
stores, and the integration can occur from the store to the internet or from the
internet to the store (Herhausen et al., 2015). Channel integration is a challenging
process as it requires unification in activities such as marketing, ordering, stock and
return management. However, when integration is achieved through unification,
operations and logistics efforts will be facilitated by marketing activities (Mollenkopf
et al., 2007).
On the other hand, by creating synergy between the distribution channels, the
selection of target channels and the successful coordination of the distribution
process with the design of the channels also provide some customer-oriented
advantages to the businesses. These advantages include increasing consumer trust
and loyalty, creating opportunities for cross-selling and providing higher customer
and market share (Cao and Li, 2015). For example, in studies conducted by shop.org
and Greenfield Online, it has been determined that consumers using multiple
channels have higher customer loyalty and spend more than other consumers, and
that channel integration supports customer service management (Goersch, 2002).
Thus, retail businesses will simultaneously ensure multi-channel system integration
of processes and achieve customer loyalty (Schramm-Klein et al., 2011).
While marketing activities raise awareness about products and create price
mechanisms where shopping transactions between the buyer and seller can take
place, logistics activities assure that the products offered for sale are delivered to the
customer in the right place, at the time the customer wants, without damage and in
the right way. Therefore, logistics activities ensure the availability of the product, the
accuracy of the order and the on-time delivery (Emerson and Grimm, 1996). Logistics
service quality is closely related to the efficiency of the process, capacity utilization,
logistics costs and on-time delivery. Measuring the quality performances of logistic
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processes and products enables the improvement of processes and the increase in the
satisfaction levels of customers (Garcia et al., 2012). Physical distribution research,
such as on-time delivery, accuracy and delivery status of the order, are critical
aspects of logistics service quality (Mentzer et al., 2001). Besides, logistics service
quality has mechanisms such as order confirmation quantity, order procedures,
order accuracy, personnel contact quality, information quality and timely execution
of logistics activities (Stank et al., 2017). Logistics and marketing activities are critical
in providing customer services to consumers, as well as ensuring coordination
between these functions. As a result of logistics and marketing activities that are not
implemented successfully, businesses may encounter consequences such as the
increase of dissatisfied customers and loss of customers when customer expectations
cannot be met (Emerson and Grimm, 1996). The online purchase that satisfies the
customer will ensure repurchase and customer loyalty (Ranganathan and
Ganapathy, 2002).
Customer loyalty refers to a customer’s overall commitment to a product,
service or brand. Customers need to be provided with values for continued customer
loyalty. Customer value is defined as the difference between benefit obtained and the
cost incurred (Lam et al., 2004). Businesses are seeking new ways to create
competitive advantage through logistics management and are starting to offer
unique types of customer value. Customer value can be created with the elements of
logistics customer service such as ease of order, product availability, on-time delivery
and consistency (Langley Jr and Holcomb, 1992). Relationship continuity and
customer loyalty arise when the value customers get from one supplier are higher
than the value they get from another supplier. Customer loyalty is considered as an
individual’s attitude towards being connected to a product or service. It is also
defined as continuing to buy a product or service from the same supplier, increasing
the frequency and volume of purchasing or recommending it to its environment
(Hallowell, 1996).
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3. LITERATURE REVIEW
Today, businesses prefer to sell their products by using online channels as
well as traditional channels. This causes the delivery time to become an essential
factor in addition to product quality and price. For this reason, in their studies, Hua
et al. (2010) analyzed delivery time and prices, and the effects of delivery time on
customer acceptance in the multi-channel supply chain and found that delivery time
strongly influenced the pricing and profit of the business. Berman and Thelen (2004)
stated that a retailer implementing a channel integration strategy could provide an
increased customer base and higher market share. Iyer et al. (2004) investigated the
relationship of time-based distribution performance with environmental uncertainty
and organizational structure in business-to-business (B2B) e-commerce, in the supply
chain and found that B2B e-commerce increased time-based distribution
performance. Wallace et al. (2004) determined that multi-channel retail strategies
improve the outcomes of the service offered to customers, therefore increasing
customer satisfaction and providing loyalty between the retailer and the customer.
Agatz et al. (2008) suggested that thanks to multi-channel distribution, different
types of consumers can be served, scale economies can be used with the synergy to
be obtained. That synergy may increase even more between product presentations,
sales and operational decisions with after-sales services and on-time delivery. By
suggesting the integration of physical and online retail channels to create more
customer value, Oh and Teo (2010) found that product, price, promotion and
transaction information increase the quality of the information in integration, and
information access, order fulfilment and customer service increase ease of service
delivery. Oh et al. (2012) argued that with the widespread use of information
technologies, integrating business processes in physical and online channels will
provide businesses with an increase in productivity and a strategy of being
innovative to present new offers to consumers in the future. Fairchild (2014)
suggested that third-party logistics partners should be included in multi-channel
trade and that logistics partners can help retailers to decide on product delivery.
Herhausen et al. (2015) argued that channel integration is a good strategy for
businesses, but the effects of retailers on customers in different channels remain
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uncertain; therefore, they analyzed the effects of customers’ online shopping
experience in channel integration, perceived service quality and perceived risk in the
online store on customers’ purchase intentions and willingness to pay. Wen et al.
(2015) aimed to develop appropriate strategies for a multi-channel retailer that sells
products through channel integration and investigated how the variables of
customers’ perspectives of the online channel and customer complaints in the
physical channel are affected in this strategy. Modak (2017) stated that the delivery
time is also a decision variable in addition to the price and stocking decisions in
physical and online channels, and determined that long delivery time causes
customers to stop using the online channel and reduces customer loyalty.
By determining the factors affecting customer satisfaction in the services of
two cargo companies, Li et al. (2006) investigated the service quality that will ensure
customer satisfaction. In their study, Lee and Joshi (2007) determined that delivery
performance is an essential factor affecting customer satisfaction by developing a
customer satisfaction model with the service provided using technology. Čater and
Čater (2009) determined that customer satisfaction can be affected by factors such as
product quality, price, delivery performance, service in a customer-supplier
relationship, and found that customer satisfaction is positively affected by price,
delivery performance, supplier information and personal interaction. In their study,
to determine customer satisfaction with online stores before and after ordering,
Dholakia and Zhao (2010) found that especially on-time delivery has a significant
impact on customer satisfaction. Fan (2011) argued that reducing the distance
travelled by the distribution vehicles and increasing the service quality will
maximize the level of customer satisfaction in order to reduce costs in terms of
transportation and delivery problems. Lin et al. (2011) found that satisfaction of
online consumers was positively affected by the product, information, system,
service, delivery quality and perceived price level. They also stated that it is
necessary to cooperate with suppliers in order to provide high-quality services such
as proper order, on-time and safe delivery. Jie et al. (2015) stated what e-retailers
dealing with innovative products thanks to the Internet of Things should pay
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attention when choosing delivery service providers to ensure on-time and efficient
delivery of customers’ orders, and made suggestions to improve these relationships.
Andreassen (1994) argued that customer satisfaction was influenced by
expectations and perceived service quality, and customer satisfaction and loyalty
became an indicator of customer focus. In their study, considering that personal
characteristics were neglected in the relationship of customer satisfaction and loyalty,
Homburg and Giering (2001) found that personal characteristics strongly affected the
relationship between customer satisfaction and loyalty. Mägi (2003) examined the
effects of consumer characteristics on customer share as well as customer satisfaction
and loyalty programs and found that customer satisfaction had a positive effect on
the customer share achieved. In their study, Lam et al. (2004) emphasized that the
relationship between customer satisfaction and loyalty is generally examined in
terms of consumer markets (B2C), and they determined that customer satisfaction
mediates the relationship between customer value and customer loyalty in the
service environment of the industrial market (B2B). There is a significant relationship
between satisfaction and loyalty. Singh (2006) identified a positive relationship
between customer satisfaction, loyalty and retention, and emphasized the
importance of the relationship between these concepts for an organization to be
successful. By establishing a structural equation modelling between customer
satisfaction and loyalty, Suh and Youjae (2006) investigated the effect of product
participation on this relationship and determined the effect of customer satisfaction
on loyalty. Bodet (2008) discussed customer loyalty with its attitudinal and
behavioural dimensions and determined the effect of customer satisfaction on
attitudinal loyalty.
4. METHODOLOGY
As a result of the literature research, it is seen that studies are investigating the
effect of channel integration on on-time delivery (Modak, 2017), the effect of on-time
delivery on customer satisfaction (Lee and Joshi, 2017; Dholakia and Zhao, 2010) and
the effect of customer satisfaction on customer loyalty (Singh, 2006; Bodet, 2008). The
studies in which the two effects between the three variables are discussed together
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are limited (Iyer et al., 2004; Wallace et al., 2004; Oh and Teo, 2010, YuSheng and
Ibrahim, 2019). Based on the existing literature, this study has been developed as a
conceptual model, as shown in Figure 1. Accordingly, the hypotheses of the research
are given below in order to investigate the effect of each variable with multiple
regression analysis.
Figure 1. Research Model
The present study aims to determine whether the products offered to
consumers through physical and online stores by the businesses that carry out
channel integration create customer satisfaction and customer loyalty with on-time
delivery. In this context, research hypotheses are as follows:
H1: Channel integration has a positive and statistically significant effect on on-time delivery.
H2: On-time delivery has a positive and statistically significant effect on customer
satisfaction.
H3: Customer satisfaction has a positive and statistically significant effect on customer
loyalty.
In this study, in which quantitative research method was adopted, the SPSS
23.0 package program was used to analyze the data. The population of the study
consists of consumers in Konya. According to Sekaran (2003: 294), in cases where the
size of the population cannot be estimated, a sample of 384 people has the ability to
represent the population of 100,000 people with a difference of +/- 0.05 in the
sampling error. For this reason, in December 2019, a survey was conducted on 500
consumers in Konya through simple random sampling (also, since the survey was
conducted in 2019, permission from the Ethics Committee is not required). 436
questionnaires were taken into consideration from the questionnaire sent to 500
consumers. The return rate of the survey is 87.2%.
Channel
Integration
On-Time
Delivery
Customer
Satisfaction
Customer
Loyalty
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In the study, variables used in the research are taken from four scales, and the
variables are channel integration, on-time delivery, customer satisfaction and
customer loyalty. Measurement scales were shown in Table 1.
Table 1. Measurement Scales
Scale Items Reference(s)
Channel Integration 8 Oh and Teo, 2010; Oh et al., 2012.
On-Time Delivery 3 Mentzer et al., 2001; Collier and Bienstock. 2006.
Customer Satisfaction 4 Oliver, 1980; Parasuraman et al., 1988; Özgül et al., 2017.
Customer Loyalty 6 Rizka and Widji, 2013; Izogo and Okba, 2015; Murfield et al., 2017.
After the data were obtained in the research, they were analyzed with SPSS
23.0 and SPSS AMOS 22.0 programs. First of all, the validity and reliability analysis
was performed. The mean, standard deviation and factor loadings of the items in the
scale are shown. Confirmatory factor analysis was performed using SPSS AMOS 22.0
program to find factor loadings. Some statistical analyses such as confirmatory factor
analysis assumed that linearly between each variable in the research model. So that
Pearson Correlations Analysis was used in this research (Schumacker and Lomax,
2004: 27). The exploratory factor analysis results of research variables were analyzed
in KMO and Barlett’s Test. And then, correlation analysis was conducted to
determine the relationship between research variables. Finally, regression analysis
(simple linear regression) was applied to determine the effects of research variables
on each other.
5. FINDINGS
In this section, results of respondents’ demographic characteristics, validity
and reliability analysis, mean, standard deviation and factor loadings values,
correlation and regression analysis are included.
In this research 436 respondents participated; 52.1% are male, 51.8% are
married, 44.7% are between the ages of 18-25, 63.5% are university graduates, and
43.8% have a monthly income of 2.000 TL and more.
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Table 2. Validity and Reliability Analysis, Mean, Standard Deviation
Scale
Cronbach’s
Alpha (α)
Factor Loadings
Mean
Std.
Deviation
1
2
3
4
All Variables
0,940
Channel Integration (CI) (1)
0,888
CI1
0,740
3,516
0,804
CI2
0,825
3,484
0,845
CI3
0,838
3,429
0,832
CI4
0,810
3,436
0,824
CI5
0,709
3,431
0,837
CI6
0,536
3,706
0,842
CI7
0,621
3,326
0,907
CI8
0,555
3,500
0,867
On-time Delivery (OTD) (2)
0,757
OTD1
0,494
3,404
0,950
OTD2
0,892
3,454
0,879
OTD3
0,797
3,521
0,906
Customer Satisfaction (CS) (3)
0,841
CS1
0,701
3,686
0,770
CS2
0,707
3,498
0,775
CS3
0,768
3,395
0,773
CS4
0,846
3,470
0,738
Customer Loyalty (4)
0,867
CL1
0,647
3,369
0,813
CL2
0,678
3,372
0,897
CL3
0,821
3,479
0,815
CL4
0,704
3,704
0,774
CL5
0,726
3,628
0,802
CL6
0,760
3,479
0,906
Cronbach’s Alpha (α) values were calculated within the scope of the reliability
analysis results of the variables, and it was concluded that channel integration
(0,888), on-time delivery (0,757), customer satisfaction (0,841) and customer loyalty
(0,867) scales were highly reliable (0,60>α>0,80) (Coşkun et al., 2015). According to
Floyd and Widaman (2015), factor loadings should be above 0,30 or 0,40. As a result
of the confirmatory factor analysis, factor loadings were found between 0,494 and
0,838. Also, a four-dimensional structure was obtained as a result of factor analysis.
Exploratory factor analysis was conducted to examine the validity of the scales
used within the scope of the research. The factor analysis results for each research
variables are shown in Table 3.
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Table 3. The Results of Exploratory Factor Analysis
Channel
Integration
On-time
Delivery
Customer
Satisfaction
Customer
Loyalty
KMO and Barlett’s Test
0,882
χ²=1788,151
(p < 0,001)
0,630
χ²=404,538
(p < 0,001)
0,812
χ²=685,863
(p < 0,001)
0,852
χ²=1141,778
(p < 0,001)
Number of Factors and
Total Disclosed Variance
by Factor Loads
8 Items
56,808
3 Items
68,120
4 Items
67,817
6 Items
60,307
When the exploratory factor analysis results of the scales used in the research
were evaluated, the construct validity of the scales was found to be compatible with
the structure suggested in the literature. When the KMO values of the scales were
examined, channel integration (0,882), on-time delivery (0,630), customer satisfaction
(0,812) and customer loyalty (0,852) scales were found. Descriptive statistics (mean
and standard deviation) and correlation analysis results of the variables are given in
Table 4.
Table 4. Mean, Standard Deviation and Correlation Values of Variables
Variables X SD 1 2 3 4
Channel Integration (1) 3,48 0,63 1
On-time Delivery (2) 3,46 0,75 0,541** 1
Customer Satisfaction (3) 3,51 0,63 0,675** 0,609** 1
Customer Loyalty (4) 3,51 0,65 0,667** 0,567** 0,823** 1
Notes: (i) n=436, (ii) **p<0,001, *p<0,05
Considering the mean and standard deviation values of the research variables,
it was concluded that the respondents agreed with the statements of channel
integration (M.=3,48; SD=0,63), on-time delivery (M.=3,46; SD=0,75), customer
satisfaction (M.=3,51; SD=0,63) and customer loyalty (M.=3,51; SD=0,65). When
Pearson correlation analysis results were analyzed, it was determined that there was
a moderately positive and significant relationship between channel integration and
on-time delivery (r=0,541; p<0,01), there was a moderately positive and significant
relationship between channel integration and customer satisfaction (r=0,675; p<0,01)
and there was a moderately positive and significant relationship between channel
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integration and customer loyalty (r=0,667; p<0,01). A moderately positive and
significant relationship was found between on-time delivery and customer
satisfaction (r=0,609; p<0,01) and customer loyalty (r=0,567; p<0,01). A highly
positive and significant relationship was found between customer satisfaction and
customer loyalty (r=0,823; p<0,01). In order to test the research hypotheses, simple
linear regression analysis was used, and the results of the analysis are presented in
Table 5.
Table 5. The Effect of Channel Integration on On-time Delivery
Variables B SE β
Channel Integration 0,640 0,048 0,541
Constant 1,232 0,169
Adj. R2 = 0,292, F = 180,051, p=0,000.
As a result of the simple linear regression model, it was concluded that
channel integration (β=0,541; p<0,05) had a positive and statistically significant effect
on on-time delivery. It was seen that the channel integration, which was the
explanatory variables in the model, explained 29.2% of the variance in on-time
delivery, which was the dependent variable (R2=0,292; F=180,051). According to
these findings, the H1 hypothesis of the research was supported. A regression
equation was determined as below;
On-Time Delivery = 1,232 + (0,169 * Channel Integration)
In order to test the second hypothesis of the study, similarly simple linear
regression was performed. The results of the analysis are presented in Table 6.
Table 6. Effect of On-time Delivery on Customer Satisfaction
Variables B SE β
On-time Delivery 0,511 0,032 0,609
Constant 1,744 0,113
Adj. R2 = 0,369, F = 225,415, p=0,000,
As a result of the analysis, it was determined that timely delivery (β=0,609;
p<0,05) had a positive and statistically significant effect on customer satisfaction. It
was seen that on-time delivery, which was the explanatory variables in the model,
Abdullah Oktay DÜNDAR & Resul ÖZTÜRK
THE EFFECT OF ON-TIME DELIVERY ON CUSTOMER SATISFACTION AND LOYALTY..2688
explained 36,9% of the variance in customer satisfaction, which was the dependent
variable (R2=0,36; F=225,415). According to these findings, the H2 hypothesis of the
research was supported. A regression equation was determined as below;
Customer Satisfaction = 1,744 + (0,511 * On-time Delivery)
Regression analysis results for examining the relationship between customer
satisfaction and customer loyalty are given in Table 7.
Table 7. The Effect of Customer Satisfaction on Customer Loyalty
Variables B SE β
Customer Satisfaction 0,848 0,028 0,823
Constant 0,526 0,100
Adj. R2 = 0,677, F = 914,406, p=0,000.
According to the regression analysis conducted to examine the effect of
customer satisfaction on customer loyalty, customer satisfaction was found to have a
positive and statistically significant effect on customer loyalty (β=0,677; p<0,05). It
was seen that customer satisfaction, which was the explanatory variables in the
model, explained 67,7% of the variance in customer loyalty, which was the
dependent variable (R2=0,677; F=914,406). According to these findings, the H3
hypothesis of the research was supported. A regression equation was determined as
below;
Customer Loyalty = 0,526 + (0,848 * Customer Satisfaction)
6. CONCLUSION
With the developments in information technologies, businesses applying
traditional marketing activities have taken the opportunity to offer their products
and services to consumers by performing channel integration through physical and
online stores. With channel integration, it is essential to offer products and services to
consumers at the desired time and place and to deliver them on time. The primary
purpose of businesses meeting the demands and needs of consumers with physical
and online stores through channel integration is to create customer loyalty by
satisfying customers and increasing sales and profitability.
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Accordingly, a survey was applied to consumers, and according to the data
obtained, the purpose and hypotheses of the research were tested in order to
determine whether the products offered to consumers through physical and online
stores by the businesses that carry out channel integration create customer
satisfaction and customer loyalty with on-time delivery. According to the findings
obtained in the study;
• It was concluded that there was a moderately positive and significant
relationship (R2=0,292; F=180,051) between channel integration and on-time
delivery (r=0,541; p<0,01). With the findings obtained in the studies of Wallace
et al. (2004), Oh and Teo (2010) and Modak (2017), the H1 hypothesis was
supported, in which a positive and statistically significant effect of channel
integration on on-time delivery was tested.
• It was determined that there was a moderately positive and significant
relationship (R2=0,369; F=225,415) between on-time delivery and customer
satisfaction (r=0,609; p<0,01). With the findings obtained in the studies of Lee
and Joshi (2007), Čater and Čater (2009), Dholakia and Zhao (2010) and Lin et
al. (2011), H2 hypothesis was supported, in which a positive and statistically
significant effect of on-time delivery on customer satisfaction was tested.
• It was determined that there was a highly positive and significant relationship
(R2=0,677; F=914,406) between customer satisfaction and customer loyalty
(r=0,823; p<0,01). With the findings obtained in the studies of Mägi (2003) and
Singh (2006), H3 hypothesis was supported, in which a positive and
statistically significant effect of customer satisfaction on customer loyalty was
tested.
It should be remembered that businesses performing channel integration in
line with the findings of the study should pay attention to the distribution and
logistics activities of the products offered by physical and online stores. Customer
satisfaction and customer loyalty will be achieved by delivering the purchased
products accurately and on time. Present study findings supported limited existing
Abdullah Oktay DÜNDAR & Resul ÖZTÜRK
THE EFFECT OF ON-TIME DELIVERY ON CUSTOMER SATISFACTION AND LOYALTY..2690
literature (Iyer et al., 2004; Wallace et al., 2004; Oh and Teo, 2010; YuSheng and
Ibrahim, 2019).
The results obtained in this study, which supports the studies in the literature,
show that it will not be enough for businesses to keep up with technological
developments. Accordingly, it now requires businesses to display activities that will
improve their service quality. With the channel integration, it provides the
opportunity to put on and sell its products to more customers, especially with
webrooming and showrooming, in order to ensure customer satisfaction of
businesses that have the purpose of selling to both present customers and potential
customers. At this point, the importance of logistics and distribution activities is
gradually increasing. For this reason, businesses need to review the distribution
processes and make more comprehensive agreements with the companies from
which they purchase logistics services, in order to ensure that the products meet the
customers on time through their logistics activities. Thus, businesses that aim to sell
more to more customers will increase their profitability by ensuring customer
satisfaction.
Additionally, this research has several limitations. The first one is that the
design of this research was cross-sectional. Therefore, different results can be
obtained in different sample size and time interval. For this reason, studies can be
conducted in order to determine the level of influence of consumers on the service
quality of businesses in different periods, such as campaign periods, in sales
activities. Another limitation of the research is that covariance-based regression
analysis has been applied in this study, and it is recommended to use variance-based
approaches (such as Smart PLS) in explaining customer satisfaction and loyalty in
future researches. Apart from the research variables used in this study, future studies
can be conducted in which mediating and moderating effects will be investigated by
including other variables such as different logistics outputs.
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