Abstract

Globally, the parcel delivery service (PDS) industry is growing at a staggering rate, which is highly connected to the simultaneous growth in e-commerce platforms and social media entrepreneurs. In Thailand, the competition is fierce, with two main players holding 80% of the $2.129 billion PDS market share, with 100s of new and smaller firms competing for a piece of the huge PDS pie. Therefore, this research set out to identify, develop and verify the validity of a structural equation model (SEM) analysis of what factors contributed to a PDS customer's loyalty in Thailand. The sample used for the study was 340 e-commerce business owners/entrepreneurs making use of a PDS in Bangkok, Thailand. The research instrument used a seven-level opinion scale questionnaire. Descriptive statistics analysis for each entrepreneur’s opinions used LISREL 9.1, which included analysis of the mean (𝑥), standard deviation (S.D.), skewness, and kurtosis. Results revealed that all the model’s causal variables had a positive effect on a Thai PDS firm’s customer loyalty, which when combined had an R2 of 81 % on loyalty. Also, from the analysis of each construct’s total effect (TE) values, it was determined that each PDS firm’s service innovation was critical to a customer’s loyalty. However, significantly less important to each customer was the PDS firm’s service quality and service satisfaction. It should also be noted that when other construct relationships were examined, that there was a strong relationship between service satisfaction and service innovation (TE=0.87) and a significant strength between service quality and service innovation (TE=0.74). Finally, service technology was perceived by the PDS customers as the single most important aspect within the study.

Key words: Courier, Express, and Parcel (CEP) services, E-Commerce, Entrepreneurs, Service technology, Shipping Services, Thailand.