- Research Article
- 10.5465/ambpp.2022.359
What Do They Want? The Effect of Logistics Quality on Direct-to-Consumer Customer Satisfaction
- Aug 01, 2022
- Academy of Management Proceedings
- Mike Goulder + 2 more +2
Direct to consumer (D2C) business models, characterized by firms that design, source, and sell products directly to consumers bypassing traditional retail channels, are a relatively new phenomenon. One aspect we know little about is under what conditions consumers are willing to utilize a D2C channel, specifically, the degree to which the logistic service quality and information quality of user experience matter in choice of channel. Moreover, as these firms directly compete with Amazon’s delivery capability, we need to ask to what extent the so called “Amazon effect” impacts customer expectations. This study addresses these questions by conducting a scenario-based experiment which evaluates the effect of logistics service quality (LSQ) and online user experience (OUX) on customer satisfaction (CS), as moderated by price relative to Amazon (PRA). We find that LSQ has the largest positive effect on customer satisfaction, followed by OUX. Price moderates negatively (lessens) the effect of LSQ on customer satisfaction. Paradoxically, price also moderates the effect of OUX on CS, but counter-intuitively, strengthens it. The findings are reviewed in light of the so-called “Amazon effect”, the tendency of consumers to set their expectations for logistics at the levels of performance consistently provided by Amazon.com. Potential implications of the findings for the further evolution and growth of the D2C industry are presented.
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