Rashid Rasheed 2024 Logistics Service Quality and Product Satisfaction in e Commerce

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Original Research

SAGE Open
January-March 2024: 1–12
Ó The Author(s) 2024
Logistics Service Quality and Product DOI: 10.1177/21582440231224250
journals.sagepub.com/home/sgo
Satisfaction in E-Commerce

Dr. Aamir Rashid1,2 and Dr. Rizwana Rasheed2

Abstract
Consumer satisfaction in e-commerce directly depends on logistical services. There is a constant dilemma in which logistical ser-
vice dimensions affect consumers’ product satisfaction. The aim is to determine how specific dimensions of logistics services
affect product satisfaction in the e-commerce industry of Pakistan. For this research, a survey questionnaire with a deductive
approach was utilized by collecting data from 197 respondents through a convenient sampling technique. Further, hypotheses
were tested through a quantitative method with the help of SmartPLS. A measuring instrument was used with six dimensions,
that is, availability, delivery time, shipping costs, product quality and condition, information quality, and customer satisfaction
related to the product. This research revealed an insignificant effect of product availability, shipping time, and shipping cost on
product satisfaction. In contrast, product quality and information quality were found to have a significant and positive effect on
product satisfaction. From academic insights to logistical optimization, this research unlocks valuable knowledge for all stake-
holders driving Pakistan’s e-commerce revolution. Buckle up for a journey into the heart of this rapidly evolving landscape.

Plain Language Summary


Product Satisfaction in E-Commerce
Consumer satisfaction in e-commerce directly depends on logistical services. There is a constant dilemma in which
logistical service dimensions affect consumers’ product satisfaction. The aim is to determine how specific dimensions of
logistics services affect product satisfaction in the e-commerce industry of Pakistan. For this research, a survey
questionnaire with a deductive approach was utilized by collecting data from 197 respondents through a convenient
sampling technique. Further, hypotheses were tested through a quantitative method using PLS-SEM with the help of
SmartPLS to validate the measurement model. A measuring instrument was used with six dimensions, i.e. availability,
delivery time, shipping costs, product quality and condition, information quality, and product satisfaction. This research
revealed an insignificant effect of product availability, shipping time, and shipping cost on product satisfaction. In contrast,
product quality and information quality were found to significantly and positively affect product satisfaction. Researchers,
academicians, and logistical service providers will benefit from this research, which will also add to the current body of
knowledge related to the e-commerce industry, a fast-growing sector in Pakistan.

Keywords
availability, delivery time, shipping cost, product quality, information quality, E-consumer, SERVQUAL, E-commerce

Introduction
In the dynamic business environment, customer demands 1
York College, The City University of New York (CUNY), Jamaica, New
are often changing, and firms must be comparative in York, United States
2
their supply chain and logistic activities to fulfil their Iqra University, Karachi, Pakistan
needs (S. Khan, Rashid, et al., 2022). For this purpose,
Corresponding Author:
logistics service providers are emphasizing more on logis- Dr. Rizwana Rasheed, Faculty of Business Administration, Iqra University,
tics service quality. Logistic service quality includes avail- Main Campus, Karachi, 75500, Pakistan.
ability, product quality and condition, delivery time, and Email: prof.rizwana1@gmail.com

Creative Commons CC BY: This article is distributed under the terms of the Creative Commons Attribution 4.0 License
(https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of
the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages
(https://us.sagepub.com/en-us/nam/open-access-at-sage).
2 SAGE Open

shipping cost (D. Choi et al., 2019). High logistic service maintain good customer relationships and a sustainable
quality (LSQ) that meets the customers’ needs tends to competitive edge (Balci et al., 2019). As stated by Siyal
enhance their satisfaction and loyalty regarding the prod- et al. (2021), performance on quality delivery has a con-
uct (Chow, 2015; Jain et al., 2021). The quality provided structive influence on consumer satisfaction. Along with
by the service provider satisfies the consumer’s needs producing good quality products. It is also essential to
through the lowest shipping cost and fast delivery time address customers’ changing needs to enhance their satis-
(Baloch & Rashid, 2022; Hafez et al., 2021; Revindran faction (M. C. Chen et al., 2019).
et al., 2020). A high level of LSQ enhances the competi- Despite extensive studies addressing these aspects in
tiveness of business firms. Moreover, the level of infor- the international context, there is still a gap in the exist-
mation quality and availability of stock integration ing body of knowledge in terms of developing effective
required for better correspondence, which can only be strategies for customer product satisfaction by logistic
possible by integrated communication technology (ICT) service quality in the context of Pakistan. Therefore, the
system, has significantly transformed the re-organization current study examines the impact of shipping cost, prod-
way to integrate and communicate at highly prompt uct quality and condition, availability, and delivery time,
events for one spot better product quality and condition- which are the drivers of logistics service quality on cus-
oriented solutions (D. Choi et al., 2019; Rajendran et al., tomer product satisfaction in the vice industry. As in the
2018). Good service quality, such as reliable and on-time e-retail logistics service industry consumer satisfaction is
delivery, return policy, and so on, enhances customer the spine, but unfortunately, the reality is far behind the
satisfaction and re-purchase intentions (Agha et al., perception, that is, logistic service quality is not efficient
2021; Alrazehi et al., 2021; S. A. Khan, 2021). enough to attain product satisfaction which is a consider-
On-time delivery is directly related to the stock avail- able research gap and point of concern. Consequently,
ability in the warehouse before order booking via the customer dissatisfaction raises a question mark on the
respective store’s website (Vasić et al., 2021). This com- competitive advantage of e-retailers.
prises several stock strategy applications to avoid under- Therefore, the objective of this research is to enhance
stock and overstock situations, which are highly dissatis- the conceptualization of what logistics quality drivers
fied drivers for the customer (Rashid et al., 2020). such as shipping cost, product quality and condition,
Delivery time management and handling are critical driv- availability, and delivery time comprise and how it is
ers for customer satisfaction in the e-commerce industry framed to deliver the best quality and responsive shop-
(Grant & Tang, 2020). Therefore, effective supply chain ping solution in one go regarding e-commerce industry,
management with a high level of mobility is required, as domains like business to business (B2B) and business to
stated by Jain et al. (2021), that highly mobilized supply consumer (B2C) quality of services drivers. Therefore,
chain management unquestionably adds value to logistics based on the research problem and research objectives,
service quality (LSQ). The subject has been highlighted the research question is as below:
through numerous research to test the logistics service
 To what extent do the drivers of logistics service
quality and consumer satisfaction in e-retails. Many coun-
tries have accepted the tendency to enhance logistics ser- quality (shipping cost, product quality and condi-
tion, availability, and delivery time) affect product
vice quality, and it is found that there are a few pieces of
satisfaction in the e-commerce industry of Pakistan?
research in Pakistan where consumer satisfaction areas
are the point of doubt in the context of shipping cost,
product quality and condition, availability, and delivery Literature Review
time of e-retailer (S. A. Khan, 2021). A study in Lithuania
suggests that consumer service plays a vital role in flour-
SERVQUAL Model and Expectancy Disconfirmation
ishing all operational logistics companies, especially deli- Theory
vering courier services and postal services need to take Product satisfaction could be measured by utilizing mod-
care of consumer needs to seek consumer satisfaction. For els. At the same time, these models clarify different the-
all logistical service companies, providing high-quality ser- ories. Among other models, the SERVQUAL model has
vice to the consumer is the competitive advantage in the widely been used to measure LSQ (Yoo & Park, 2007).
respective industry. Capturing more consumers through SERVQUAL measures assurance, responsiveness, and
high logistics service quality leads to capturing the market, reliability (Parasuraman et al., 1988). Various research-
a milestone to becoming a logistics service market leader ers used this model for measuring service quality with
(Meidut_e-Kavaliauskien_e et al., 2014). Companies need to modified constructs in logistics. The SERVQUAL con-
consistently assess their logistic service quality to satisfy ceptualizes the expectancy disconfirmation theory for
the customers and the quality of the product and services product-related customer satisfaction (Barsky, 1992).
(Kaswengi & Lambey-Checchin, 2019). It helps firms Oliver (1980) argued that our satisfaction hinges on
Rashid and Rasheed 3

whether reality meets our expectations. Exceeding them 2019). It also enhances the store’s utilitarian worth (Cottet
breeds happiness (positive disconfirmation), while falling et al., 2017). For e-consumes, effective management is
short spells disappointment (negative disconfirmation). required in the timely delivery of products (Esper et al.,
The SERVQUAL model guides in measuring the service 2003), on-shelf availability of products (Ehrenthal &
quality by indicating the lapses between expectations to Stölzle, 2013), and efficient reverse logistics processes
be rendered and the actual performance. This model (Bernon et al., 2011). According to Ehrenthal and Stölzle
establishes five dimensions; empathy, assurance, tangibi- (2013), the availability of products may be affected by a
lity, responsiveness, and reliability (Mohsin & Ryan, lack of replenishment and organization issues or timely
2005; Nadiri & Hussain, 2005). fulfilment by direct suppliers and may dissatisfy the prod-
uct satisfaction (Emmelhainz et al., 1991; Zinn & Liu,
2008). The availability shortfalls also occur due to infor-
Relevant Literature mation technology-related problems and promotional
Previous research highlighted that LSQ impacts customer processes, and timescale (Ettouuzani et al., 2012). While
satisfaction and re-purchase intentions across various the logistics literature has addressed these issues, the per-
industries including food, bank, health, education, hospi- sistent evolution in retail e-commerce pretences new
tality, and so on (Kaswengi & Lambey-Checchin, 2019; opportunities and challenges that offer a milieu for future
Mentzer et al., 2004). Service quality is defined in various research. Hence, the study proposes the following:
ways, Grönroos (1984) defined service quality as, ‘‘a per-
ceived judgment resulting from an evaluation process H1: There is a significant impact of availability on
where customers compare their expectations with the ser- product satisfaction.
vice they perceive to have received’’ (p. 37). While it is
defined by Parasuraman et al., (1985) as, ‘‘the extent to According to Xing et al. (2010), the condition mea-
which an organization meets customer expectations con- sures the quality and accuracy of an order. Product qual-
sistently’’ (p. 42). Parasuraman et al. (1988) stated about ity and conditions also refer to the durability, right value
perceived quality is ‘‘the judgement of the consumer on dimension, exemplary performance, and correct specifi-
the excellence or superiority of a product/service’’ (p. 3). cation equal to the customer’s product satisfaction
Yet another author Bitner and Hubbert (1994) men- (Saura et al., 2008). Firstly, durability is referring to life,
tioned perceived quality as, the ‘‘global impression of the resistance, and resilience related to the product execu-
consumer on the relative superiority or inferiority of an tion, usage, and lasting time span. Secondly, the value of
organization and its services’’ (p. 7). The perceived ser- a product enclosed with value dimensions such as eco-
vice quality has a significant impact on customers’ pur- nomic value relates to the benefit attached in terms of
chase intention and it also enhances the firm’s image in cost, aesthetic value infers as a benefit of structure,
the mind of its customers that enhance their satisfaction packaging, and features present in the respective prod-
level (Hong et al., 2020; Roy et al., 2018). The relation- uct, enjoyment value infers as a benefit attached in terms
ship between customer satisfaction and service quality in of amusement attained after usage (Bhattacharjya et al.,
logistics opened the door to expanding the perspective of 2016). Thirdly, performance is referring to the capacity
product satisfaction. Researchers have measured the and efficiency of the respective product. Lastly, specifica-
dimensions of quality and its relationship in various con- tion refers to the shape, size, variant, and colour of the
texts (Meesala & Paul, 2018). These dimensions include product (Mentzer et al., 2004).
product availability, product quality, product delivery Previous literature dealt with the e-commerce service
time, shipping cost, information quality etc. quality as reverse logistics (Towers & Xu, 2016), physical
According to Xing et al. (2010), availability measures distribution service quality (H€useyinoğlu et al., 2018), and
the product in stock. The availability also refers to full website quality (Parasuraman et al., 2005). According to
stock in the backhand and warehouse of e-retail stores Mentzer et al. (1989), product condition, timely delivery,
(Lorenzo-Romero et al., 2021). It has been related to the and availability are three dimensions of logistics service
stock availability in the warehouse before order booking quality. Based on the previous literature, this study found
via the website of the respective store (Vasić et al., 2021). the above dimension is critical in e-commerce for product
This comprises several stock strategy applications to avoid satisfaction. Hence, the study proposes:
under-stock and overstock situations, which are unaccep-
table to the customers (Hashmi, Amirah, Yusof, and H2: There is a significant impact of product quality and
Zaliha, 2021; Hashmi & Mohd, 2020). Product availability condition on product satisfaction.
is an essential feature in trigging sales, as it influences the
product purchase intention (Hausman & Siekpe, 2009; Delivery time refers to the shipping time attached to an
Kumar & Kashyap, 2018; Lee et al., 2008; Sowers et al., order received from the customer (Farooq et al., 2019). In
4 SAGE Open

other words, delivery time is the time elapsed from requi- availability, reliability, and electronic-based consumer
sition to delivery (Mentzer et al., 1989); and ‘‘Timeliness logistics service quality on online consumer satisfaction.
refers to whether products or services were delivered on Further, consumer satisfaction at electronic buying facili-
time or not’’ (Koufteros et al., 2014, p. 10). Timeliness ties, reliability, shipping mode and cost, information qual-
attached to managing, handling, and fulfilling each ity, and product quality and condition found a significant
demand of customers in that time frame is no easy task effect of endogenous variables on the exogenous variable.
for e-retailers (Anjum & Chai 2020). But side by side this Hence, the study proposes the following Figure 1:
delivery time management and handling is a pivotal driv-
ers for customer satisfaction in the e-commerce industry H5: There is a significant impact of information quality
(Grant & Tang, 2020). Delivery time is one of the signifi- on product satisfaction.
cant determinants of customer satisfaction (Blut, 2016;
Jain et al., 2015; Vakulenko et al., 2019). As delayed deliv-
eries are considered harmful that affect product ratings
(Gal & Rucker, 2018). According to Shang and Liu Research Methodology
(2011), delivery delays negatively impact product demand
This study employed a deductive methodology, following
which lessens customer demand. Therefore, it is essential
a quantitative approach to gather data from the specified
to deliver fast with reduced delivery wait time on average.
target population (Hashmi, Amirah, Yusof, & Zaliha,
Hence, the study proposes:
2020; Rasheed et al., 2023). The use of a quantitative-
deductive approach is prevalent as it facilitates the utili-
H3: There is a significant impact of delivery time on zation of numerical data and enables hypothesis testing
product satisfaction. to substantiate a theory (Rashid, Rasheed, Amirah, &
Afthanorhan, 2022). By employing this approach,
Meanwhile, shipping costs refer to shipping charges researchers can derive knowledge that is inherently true,
attached with the order conveyance cost shipping to the given clear and accurate parameters (Rashid et al.,
customer. Charges involve; managing, handling, and ful- 2021). Additionally, the research had an explanatory
filling every charge related to road delivery, sea delivery, nature, aiming to elucidate theoretical concepts and
and air delivery. This cost can vary based on the required empirical findings (Rasheed & Rashid, 2023). According
minimum order quantity (MOQ). But this shipping cost to Glymour et al. (2008), a causal research design was
management and handling is a pivotal driver for customer implemented, allowing for hypothesis testing and the
satisfaction in the e-commerce industry (C. Chen & Ngwe, generation of numerical outcomes. Consequently, the
2018; T. M. Choi, 2019). According to Kuo et al. (2009), causal design was employed to discern causal relation-
there is a significant effect of shipping mode and cost on ships between the variables.
customer product satisfaction. Hence, the study proposes:

H4: There is a significant impact of shipping cost on Unit of Analysis and Target Population
product satisfaction. This study employs distinct units of analysis, enabling
the researcher to focus on customers and facilitating the
Information quality refers to information technology derivation of a reasoned conclusion (Hopkins, 1982;
infrastructure at the back end of website operations Yurdusev, 1993). In order to assess product satisfaction,
(Melović et al., 2021). D. Choi et al. (2019) defined infor-
mation quality as, ‘‘the simplicity and accessibility of
locating items and places.’’ This includes data privacy
regarding customer ordering information, transaction
security via credit and debit cards, and customer personal
information data mining as a data bank for future usage
of premium, regular, and occasional customer sale pro-
motional campaigns, and so on. It is vital for the organi-
zation to improve information quality. Information
quality is positively associated with customer satisfaction
(Desalegn, 2016), as customer payment security and data
privacy lead to high customer satisfaction. Finally, Kuo
et al. (2009) conducted research using constructs; avail-
ability, reliability, and online consumer logistics service
quality. This research found a significant effect of Figure 1. Research model.
Rashid and Rasheed 5

data was gathered from online consumers in Karachi, a align the research process and enhance the reliability of
major metropolitan city in Pakistan. study outcomes (Rshid, Rasheed, & Amirah, 2023). The
pilot test results indicated that the items met the assump-
tions for confirming items’ reliability. Subsequently, the
Sample Size and Sampling Technique research employed the PLS-SEM, recommended for its
Due to absence of sampling frame, this study used a non- ability to yield comprehensive variance and handle intri-
probability sampling technique. Since the study involves cate models (Hair et al., 2019). Within the PLS-SEM
an individual unit of analysis related to e-consumers from framework, the measurement model assesses the reliabil-
Karachi, hence convenience sampling technique was ity of the research instrument, while the structural model
applied. A convenience sampling technique is a method of is employed for hypothesis testing (Hair et al., 2019).
data collection in which the data is freely accessible to get Consequently, PLS-SEM using SmartPLS version 3.2.9
responses cost-effectively (Hair et al., 2011; Rashid & was utilized to generate results.
Rasheed, 2023). Hashmi, Amirah, and Yusof (2021) state Before the measurement model, the internal consis-
that a sample size of 100 is adequate whereas 200 tency of the instrument was assessed followed by detailed
responses are robust to generalize the test results. As per discussions on data screening and the demographic pro-
Hair et al. (2019), as subsequently referenced by Rashid, file of the respondents (Hashmi, Amirah, & Yusof,
Rasheed, and Ngah (2023), the study’s minimum sample 2020). Further, the measurement model comprising outer
size is contingent upon the complexity of the model. A loadings, convergent validity, and discriminant validity
more intricate model with an increased number of predic- using the PLS algorithm was assessed. The structural
tors necessitates a larger sample size. Following Gefen model using PLS-SEM encompassing path analysis and
et al.’s (2011) suggestion of employing a power of 0.8, a mediation analysis using PLS bootstrapping while pre-
medium effect size, and a = 0.05 in the model, a mini- dictive relevance using PLS blindfolding was used.
mum of 180 samples was required to assess the research Finally, the study validated the findings in light of previ-
model. With 197 respondents in the study, it is affirmed ous studies. Hashmi, Amirah, Yusof, and Zaliha, (2021)
that the sample size is adequate for testing the study’s suggested that an alpha coefficient higher than 60%
hypotheses. The 208 questionnaires were distributed and should be considered substantially reliable for analysis.
197 valid questionnaires were successfully received back In this regard, all the constructs found higher than a
for inclusion in analysis. 60% alpha coefficient.

Measurement Scale Respondent Profile


Various tools are available for data collection, but this The demographic profiles of the 197 respondents illu-
research employs a questionnaire instrument for its abil- strated the participants’ age, education, gender, and mar-
ity to collect numerical data. The instrument utilizes ital status. Among 197 participants 27 participants
closed-ended questions pertaining to the research vari- (13.7%) belong to the age group of 20 to 25 years, 60
ables, allowing for the collection of a comparatively large participants (30.5%) belong to the age group of 26 to
sample size, as suggested by Kothari (2004). The ques- 30 years, 63 participants (32.0%) belong to the age group
tionnaire incorporates a 5-point Likert scale, spanning of 31 to 35 years, 47 number of participants (23.9%)
from strongly disagree to strongly agree. This scale can belong to the age group of above 35 years. While, 62 par-
help increase the response rate by providing different ticipants (31.5%) with bachelor’s degrees, 105 (53.3%)
options for the respondents to answer their questions. In participants with Masters, and 30 (15.2%) with others.
this study, a structured questionnaire was adapted from Whereas 115 (58.4%) were male and 82 (41.2%) were
previous studies comprising 16 items (Rashid, 2016; female participants. Besides, married participants were
Rashid et al., 2021). A construct ‘‘availability’’ used 2 126 (64.0%) and 71 (36%) were unmarried participants.
items, ‘‘delivery time’’ 3 items, ‘‘shipping cost’’ 2 items,
‘‘product quality and condition’’ 2 items, ‘‘information
quality’’ 3 items, and ‘‘product satisfaction’’ 4 items. Measurement Model
Prior to employing SEM, the measurement model’s con-
formity was assessed through considerations of conver-
Data Analysis
gent validity and discriminant validity, in accordance
Prior to the full scale study, a pilot test involving thirty with S. K. Khan et al. (2021). Convergent validity is
participants was conducted to validate the questionnaire deemed to be confirmed when the composite reliability
(Hashmi, Amirah, Yusof, and Zaliha, 2021; Rashid & (CR) exceeds 0.70, Average Variance Extracted (AVE) is
Amirah, 2017; Rashid et al., 2019). Pilot testing serves to greater than 0.50, and factor loadings surpass 0.50, as
6 SAGE Open

Table 1. Construct Reliability and Validity.

Constructs Items Loadings a CR AVE

Availability E-retailer provides information regarding product availability. 0.871 .796 0.831 0.711
Products are in stock at the time of order placement. 0.815
Delivery time Stocked-out products are subsequently sent fast. 0.810 .770 0.866 0.684
Delivery is in accordance with the set deadlines. 0.805
Delivery time is short. 0.865
Information quality Accurate product information. 0.763 .786 0.875 0.701
Adequate product information. 0.879
Easily accessible information. 0.865
Product quality and condition Products are in accordance with online specifications. 0.876 .733 0.845 0.731
Product is rarely damaged 0.834
Product satisfaction Recommend the e-commerce to others. 0.786 .831 0.887 0.663
In accordance with promised condition. 0.841
Enjoy e-shopping 0.800
Products satisfies the expectations. 0.830
Shipping cost Does not have any additional hidden cost. 0.830 .743 0.848 0.736
Delivery at low cost. 0.885

Source. Literature.

outlined by S. Khan, Rasheed., et al. (2022) and Hair Further, the results of discriminant validity using
et al. (2013). Table 1 shows that all the loadings (ranged cross-loadings to check the statistical differences between
from 0.763 to 0.899 . 0.70), Cronbach’s a value (ranged latent constructs based on item-wise estimations were
from .733 to .831 . .70), AVE values (ranged from 0.663 performed (Hair et al., 2014; Rashid, Rasheed, Amirah,
to 0.738 . 0.50), and CR values are more significant than & Afthanorhan, 2022). Hair et al. (2016) proposed that
the cutoff values (ranged 0.824 to 0.894 . 0.70); and ful- the indicator reliability should be better in their latent
filling the test assumptions (Das et al., 2021; Haque constructs than in other constructs. The outer loading
et al., 2021; Rashid, Ali, et al., 2022). criteria is .0.50 is suggested. Therefore, all indicators
Discriminant validity is ensured by adhering to the have higher construct reliability. Hence, the discriminant
Heterotrait-Monotrait (HTMT) criteria, where HTMT validity using cross-loadings has also been achieved and
values are expected to be below 0.90, as recommended showing that the latent constructs are considerably dif-
by Henseler et al. (2015). Nevertheless, some authors ferent from each other. Consequently, an analysis of
propose that HTMT values below 0.85 are more prefer- SEM can be executed.
able, as suggested by Franke and Sarstedt (2019). Table
2 shows that the HTMT values of information quality,
shipping cost, delivery time, condition, product quality, Structural Equation Modeling (SEM)
availability, and product satisfaction are \0.85 (S. Khan
Hypothesis-Testing Using PLS Path Modelling. Table 3
et al., 2023; S. Khan, Rashid, et al., 2022; Rashid, Ali,
shows the SEM results for hypotheses H1, H2, H3, H4,
et al., 2022). Therefore, discriminant validity is said to be
and H5 using PLS bootstrapping at 5000 subsamples on
established.
constructs named Availability (AV), Product Quality and
Condition (PC), Delivery Time (DT), Shipping Cost
(SC), Information Quality (IQ), and Product
Table 2. Heterotrait-Monotrait Ratio (HTMT). Satisfaction (PS). Where, the effect of AV!PS
(b = .042), DT!PS (b = 2.065), and SC!PS
AV DT IQ PC PS SC (b = .050) (hypotheses: H1, H3, and H4, respectively)
are insignificant. Further, the results illustrate that one
AV
DT 0.537 unit change in AV, DT, and SC will insignificantly bring
IQ 0.544 0.535 change in PS. Hence, hypotheses H1, H3, and H4 are
PC 0.589 0.639 0.669 not supported. While, the effect of IQ (information qual-
PS 0.399 0.332 0.587 0.800 ity) and PC (product quality and condition) is positive
SC 0.290 0.549 0.567 0.627 0.424
and significant on PS (product satisfaction) (hypotheses:
Note. AV = availability; DT = delivery time; IQ = information quality;
H2 and H5, respectively). Moreover, the results illustrate
PC = product quality and condition; PS = product satisfaction; SC = shipping that one unit change in IQ and PC will positively and
cost. significantly bring change in PS by b = .269; b = .458,
Rashid and Rasheed 7

Table 3. Path Coefficients.

Hypothesis Regression path Effect type SRW Remarks

H1 AV ! PS Direct Effect 0.042 Not supported


H2 PC ! PS Direct Effect 0.458*** Supported
H3 DT ! PS Direct Effect 20.065 Not supported
H4 SC ! PS Direct Effect 0.050 Not supported
H5 IQ ! PS Direct Effect 0.269*** Supported

Note. SRW = Standardized regression weight.


*p\.10. **p\.05. ***p\.01.

respectively. Hence, hypotheses H2 and H5 are referring to the capacity and efficiency of the respective
supported product. Lastly, specification refers to the shape, size,
variant, and colour of the product (Mentzer et al., 2004).
Customers are scarred by low-quality and fake products
Discussion (Chiejina & Olamide, 2014). However, customers per-
The study hypothesis H1 (there is a significant impact of ceive more control over the buying process if they are
availability on product satisfaction) is not supported; privileged in the case of Cash on Deliver (COD.
where, availability refers to full stock available in the Hypothesis H3 (there is a significant impact of delivery
backhand warehouse of an e-retail store (Lorenzo- time on product satisfaction) is insignificant with a nega-
Romero et al., 2021). It indicates that in e-retail stores tive effect. Hence the H3 has been rejected, the findings
the stock-out does not significantly influence customer are inconsistent with the findings of Farooq et al. (2019).
satisfaction related to that stocked-out product. The That means, the shipping time attached to orders received
findings are inconsistent with the findings of Vasić et al. from customers and the timelines attached to managing,
(2021). handling, and fulfilling each demand of customers in that
The reason for being insignificant is the virtual ware- time frame is not an easy task for the e-retailers (Anjum
house and availability of substitute products at the same & Chai, 2020). But this delivery time management and
e-commerce retailer. Further, this could be manageable handling is a pivotal driver for customer satisfaction in
by applying several stock strategies as the stocks are not the e-commerce industry (Grant & Tang, 2020). Delivery
visible to consumers in the e-retail business (Hashmi & time is one of the significant determinants of customer
Mohd, 2020). The availability of substitute products satisfaction (Vakulenko et al., 2019). Whereas, it is evi-
sometimes triggers purchase intention for substitutes dent that the macro factors (economic, environmental,
(Sowers et al., 2019). Whereas availability shortfalls socio, and political) cause disruptions in the o delivery
occur due to a lack of replenishments by direct suppliers time of e-commerce businesses in developing countries like
and the e-retailer can overcome this issue by having mul- Pakistan. Moreover, Gal and Rucker (2018) urged that
tiple sourcing strategies. delayed deliveries negatively affect product ratings and
Hypothesis H2 (there is a significant impact of product eventually, lessen product demand.
quality and condition on product satisfaction) is accepted. Hypothesis H4 (there is a significant impact of shipping
The findings are consistent with the findings of Saura cost on product satisfaction) is not accepted. The findings
et al. (2008). According to Saura et al. (2008), product are inconsistent with the findings of T. M. Choi (2019).
quality and conditions refer to the right durability, right That means the shipping costs refer to shipping charges
value dimension, right performance, and correct specifi- attached to the order conveyance cost shipping to the
cation is equal to the right product quality and condition customer. Charges are attached to managing, handling,
for proper customer satisfaction. Firstly, durability is and fulfilling every charge related to road delivery, sea
referring to life, resistance, and resilience related to the delivery, and air delivery; this cost can be varied based
product execution, usage, and lasting time span. on the required MOQ. But this shipping cost manage-
Secondly, the value of the product enclosed with value ment and handling is a pivotal driver for customer satis-
dimensions such as economic value relates to the benefit faction in the e-commerce industry (T. M. Choi, 2019;
attached in terms of cost, aesthetic value infers as a bene- Miao et al., 2021). Meanwhile, the findings indicate that
fit of structure, packaging, and features present in the the shipping cost is not affecting product satisfaction
respective product, enjoyment value infers as a benefit because of cost association. The e-consumers want to
attached in term of amusement attained after usage pay less for their e-purchase and they do not care about
(Bhattacharjya et al., 2016). Thirdly, performance is the mode of shipping but they are more concerned about
8 SAGE Open

the cost. Therefore, the logistics service quality (LCQ) Limitations and Recommendations
refers to keeping the shipping cost low. This research was confined to the metropolitan area of
Hypothesis H5 (there is a significant impact of infor-
Karachi, Pakistan, in terms of its geographical scope.
mation quality on product satisfaction) is accepted. The
Additionally, a limited number of variables were chosen
findings are supported by the findings of Melovic et al.
for the study. Moreover, LSQ was embraced as a com-
(2021) explaining that information quality refers to infor-
prehensive variable, and alongside this, the research
mation technology infrastructure setup programming at
employed the PLS-SEM approach, although other
the backhand of website operations. This includes data
advanced second-generation statistical techniques could
privacy regarding customer ordering information, trans-
also be considered for future investigations. Our sample
action security via credit and debit cards, and customer
size was also limited therefore this study might not be
personal information data mining as a data bank for
generalized for other demographic variables. Future
future usage of premium, regular and occasional cus-
research can be done on the role of e-retailer logistics ser-
tomer sale promotional campaigns, and so on. Customer
vice quality drivers, that is, availability, delivery time,
payment security and data privacy lead to high customer
information quality, product quality and condition, and
satisfaction. It is imperative for an organization to
shipping cost on sustainable supply chain performance
improve information quality as it is positively associated
with mediating effect of product satisfaction. Secondly,
with product satisfaction (Desalegn, 2016).
research can be on the effect of intermediary’s logistics
service quality factors, that is, speed, responsiveness, and
timelines logistics service quality on product satisfaction.
Research Implications
Lastly, research can be done on the influence of vendor-
This study developed and validated an innovative managed inventory, and logistics service quality on ser-
research model illustrating the influence of LSQ dimen- vice user loyalty.
sions on product satisfaction. The understanding of the
issue, model, and their interconnections was enhanced
Declaration of Conflicting Interests
through the utilization of the SERVQUAL Model and
Expectancy Disconfirmation Theory. By contributing to The author(s) declared no potential conflicts of interest with
the existing body of knowledge on this subject, the respect to the research, authorship, and/or publication of this
article.
research serves as a foundation for future in-depth and
critical examinations. Notably, there has been no prior
investigation in Karachi, Pakistan, into the role of LSQ Funding
in product satisfaction. Hence, the study’s primary con- The author(s) received no financial support for the research,
tribution lies in exploring a unique issue, offering valu- authorship, and/or publication of this article.
able insights for academics seeking to expand their
understanding. The application of LSQ dimensions ORCID iDs
appears to positively impact product satisfaction.
The research centered on LSQ and aimed to assist Aamir Rashid https://orcid.org/0000-0003-3002-9114
Rizwana Rasheed https://orcid.org/0000-0002-3300-3393
managers in identifying potential applications that could
significantly impact product satisfaction. Managers can
leverage the insights from this study to gain a deeper Data Availability Statement
understanding of LSQ, its dimensions, and how to effec- Data sharing not applicable to this article as no datasets were
tively collect, assess, and communicate performance generated or analyzed during the current study.
related to product satisfaction. The study offers a valuable
resource for managers looking to enhance the consumer References
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