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Retailers
like groceries are facing with the growth of e-commerce, so they need a good
logistics services. According to e-Marketer, from 2015 to 2018, the purchase
through using the internet is forecasted to exceed 10 per cent for annual
growth, from $1.5 trillion in 2015 to $2.5 trillion in 2018 (Gopal and Gurram,
2017). Furthermore, in Binh Duong, the population is 1,995,817 people in 2016
(TinhBinh Duong, 2017) and it is forecasted to get 3 million people in 2025
(Minh, 2014). Thus, this is a good condition for groceries because everyone
always needs to buy essential items. According to Lee and Bao (in 2011), “The
remaining effective life as well as the inventory level for each grocery item
is recorded, and based on the demand forecast, smart grocery cabinet will automatically
computes and identify the reorder points when grocery items must be
replenished, with consideration of the ordering costs (Lee and Bao, 2011).According to the background of the
research, grocery owners need to have a good logistics services for helping
them get efficiently in doing business. Distributors play an important role to
help these owner groceries, so they have to get more competitive advantages to
achieve in the satisfaction of grocery owners in Binh Duong. Logistics service
performance shows the ability of providers in order to deliver requested
products for matching with timeliness of delivery at a suitable cost (Bowesox,
Closs, and Cooper 2002).The studies of Daugherty (in 1998) and Stank (in 2003)proved
that logistics attributes had a strong performance for improving business
outcomes (Daugherty et al. 1998; Stank et al., 2003).The
research of Leuschner and Lambert(in 2012) presented the relationship between
logistics attributes and marketing attributes to get the customer satisfaction
(Leuschner and Lambert, 2012).Thus, depending on this study ofLeuschner and
Lambert (in 2012), the purpose of this research is that to help distributors
could focus on the important of which factors including product, price,
promotion or place attributes affect the grocery owners satisfaction to enhance
their competitive advantages. Thus, distributors could achieve in the
satisfaction of groceries owners who use logistics service from those
distributors. According to Porter (in 1979), in an industry, there are
competitive forces that impact the factors of the customer satisfaction
including bargaining power of customers, bargaining of suppliers, threat of new
competition, threat of substitute products or services and the intensity of
competitive rivalry (Porter, 1979) are different from one industry to another to evaluate.
Therefore, it is not safe to evaluate when assume that the five forces remain
the same over time. It is necessary to replicate the studies because the
results were obtained and generalized from one industry to another one (Hunter,
2001).The most important evidence of the ability to generate revenue of
logistics service is that setting the influence of logistics performance and
business outcomes. It was portrayed as “our discipline’s equivalent tofinding a
cure for cancer” (Bowersox, 1999).Logistics:
the recognition of logistics term is more widely to be been public from the
past to now. The important example is the transportation companies which they considered
their companies as the logistics companies. These companies also operated on
the side of their retailers (Coyle and Edward, 2003). In additional, the
recognition of logistics term not only included product quality, but also
related to service quality. According to Coyle and Edward, they gave an example
of the failures of internet retailers during the Christmas season in 1999. Unfortunately,
this failure is blamed for logistics system (Coyle and Edward, 2003). The
recognition of logistics term is increased but the definition of logistics is
still very confused. There are some terms used for the descriptions by
individual including logistics management, business logistics management,
integrated logistics management, materials management, physical distribution
management, marketing logistics, industrial logistics and distribution (Coyle
and Edward, 2003). This research would use the term of marketing logistics for
the description.

Marketing mix: According to Philip
Kotler, “marketing mix is the mixture of controllable marketing variable that
the firm uses to pursue the sought level of sales in the target market” in
figure 3.1. To achieve the objectives of marketing, the marketing mix shows the
combination of 4 Ps including product, price, promotion and place (Chand, nd).Grocery
owners: this research considers grocery owners as retailers those who open the
grocery in Tan VinhHiep, Tan Uyen, Binh Duong. They do business by selling
essential goods, so they will choose suitable distributors to deliver the goods
for them. However, these grocery owners do not have distributors for some
products because of their low demand of these goodsAccording
to Coyle and Edward (in 2003), sometimes logistics is considered as the other
part of marketing. The explanation for this description is that logistics
system including the physical distribution and outbound has the responsibility
for delivering and storing goods, so it plays an important role in selling the
products (Coyle and Edward, 2003). Logistics is the ability to deliver
physically goods to finish the order of customer at the right time and right
quantities for getting the customer satisfaction. According
to Coyle and Edward (in 2003), the relationship between logistics and marketing
is based on the 4 Ps including product, price, promotion and place (Coyle and
Edward, 2003). Logistics performance relating to 4Ps attributes influence in
retailer satisfaction.Product:
there are many new products with different their size, weight, shape, packaging
and other dimensions introduced in the market each year, so logistics system
would be affected to move and storage these new products. Thus, while marketing
has a plan to launch the new dimensions of products, logistics managers need to
create solutions to deal with the changes. Moreover, firms would reform their
old products through designing the new package to compete with the new products
in the market, so this can cause the different size of packages compared to the
old products. Therefore, this change will affect the logistics system for the
movement and storage. Pallets, for example, would not be suitable for the new
packages due to the different size of these new ones. Although the changes can
cause the problems for logistics, firms have to implement these changes to get
the customer satisfaction. Thus, logistics managers can offer the small changes
for matching with available movement and storage, while still keeping the sales
for customers. Consumer packaging is another aspect of marketing that affects
logistics. Retailers consider the influence of package on their sales.
Logistics including transportation, warehousing and material handling aspect
has the responsibility to protect the customer package.Price:
The firms would set the appropriate price marching with the sizes of the
shipment. Thus, the firm needs to choose a suitable type of transportation to
reduce the cost for their customers. For example, depending on the shipment
sizes, the firm would decide to use motor carriers to deliver the same products
from one point to another point (Coyle and Edward, 2003). Thus, if the
customers require the large shipment sizes, they will charge this other at the
lower prices. It means that the firms have to create a schedule for discounting
price when customers order the large size of the shipment. Thus, this schedule
not only help the firms get more revenue, but also satisfy the customers. It
means that when customers buy a large number of products, the firms will offer
discount schedule. If this schedule relates to the schedule discount in
transportation, the firms will save money due to sale the large amount of
products. Customers also get benefits from this discount schedule, the example
of free ship. Especially, logistics managers have to consider to meet the
projected demand, so they control the inventory to deliver enough quantity of
commodity with the attractive price for achieve the customer satisfaction.
Thus, if the firms get the competitive advantages in price schedule, they can
increase their sale in particular times. 
Promotion:
The firms spend a large amount of money on advertising campaigns to improve
their sales each year. Thus, when the firms implement the promotion schedules
to attract more customers, they have to let logistics managers know these
schedules for preparing sufficient inventory quantity of products to deliver
for customers. It means that if the firm implements the promotion but they do
not have enough inventories to deliver, they will not satisfy the grocery
owners. According to the example of Coyle and Edward (in 2003) that they gave
in their study, although the logistics managers received the schedule for
promotional campaigns, they still were under the threat of the lack of
inventory quantities in case of Gillette Company producing twin-blade Good News
razor.  Place:
the distribution decision is considered as the place decision. In this case,
marketers will have the responsibility to choose for implementing transactions
with wholesalers or retailers. It is easy for logistics managers to deliver for
wholesalers because they easily forecast the demand of wholesalers at the large
volume. Customer satisfaction interface with
marketing and logistics

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When the firms provide high quality service of
logistics brought from the value of place in the marketing mix, they can get
more profits and achieve the customer satisfaction. Coyle and Edward (in 2003)
conducted that “many firms have recognized customer service as the interface
activity between marketing and logistics and have aggressively and effectively
promoted customer service as a key element of the marketing mix” (Coyle and
Edward, 2003)In
the companies, following the traditional, logistics is considered as a cost
center because its fundamental function is the contributions to the performance
of finance for reducing the cost and assets(Tracey,
1998).Logistics managers give evidence that their service improvements make the
increase of value for the company. However, it is difficult to encourage upper
managers because these improvements meet difficulties to convert into the
performance of finance. The performance’s superior logistics brings the good
results from doing business such as the increase in customer satisfaction and
the purchases of customers. Thus, the notion of the contributions of logistics
to financial performance can be influenced (Leuschner and Lambert, 2012). Furthermore,
superior logistics could get the appreciation of the company, if its
performance generates more revenue from the satisfaction of customers. Thus,
the organization would consider using logistics performance for succeeding in
competitive advantages (Leuschner and Lambert, 2012). There are several
researches of Sterling and Lambert (in 1989), and Emerson and Grimm (in 1966)
conducted about the relationship of marketing and logistics in achieving the
customer services (Sterling and Lambert, 1989; Emerson and Grimm, 1996). Borden
who is professor emeritus of marketing and advertising at the Harvard Business School
conducted about the concept of marketing mix (Borden, 1964)and E.J. McCarthy
figured out result of 4 Ps presenting under the form of P1 (Product), P2
(Price), P3 (Place) and P4 (Promotion) (Toader, 2011). According to the studies
of Coyle (in 2003), Stock and Lambert (in 2001), Leuschner and Lambert stated
that “Place” would appear in the function of logistics to create the
utilities of time and place after the distribution channels are established. Therefore,
it frequently is the same with logistics service (Leuschner and Lambert, 2012).According
to theory of the research, logistics performance was showed in the attributes
of product. There are some products attributes including the quality of
product, the product performance and the development of new product and the
technical support for the product (Leuschner and Lambert, 2012). The research
of Selnes (1993) found that “performance quality had significant effects on
customer satisfaction” (Selnes, 1993).According to Johnson, Anderson and
Fornell (in 1995), they show the link between product performance and customer
satisfaction (Johnson, Anderson and Fornell, 1995). Yadav and Goel (in 2008)
conducted that the relationship between customer satisfaction and product
development in term of quality improvement (Yadav and Goel 2008).Another
product attribute is technical support contributing to the customer
satisfaction (Leuschner and Lambert, 2012). So this research creates the
hypothesis:H1.
Logistics performance of product attributes affects positively the retailer
satisfaction. Price
attributes are the important factors that contributing to logistics performance
in achieving the retailer satisfaction. Leuschner and Lambert indicated that
price attributes including billing procedures, competitiveness of price,
discounting, and price level affect the customer satisfaction (Leuschner and Lambert,
2012).Depending on previous studies, the research of Leuschner and Lambert
(2012) showed the positive relationship between billing procedures, competitiveness
of price, discounting, and price level and customer satisfaction(Leuschner and Lambert,
2012). Moreover, the study of Jakpar showed the result of the significant
relationship between discounted product and customer satisfaction (Jakpar et
al. 2012). Thus, H2.
Logistics performance of price attributes affects positively the retailer
satisfaction. To
attract the grocery owners, logistics managers play an important role in
providing sufficient inventory quantities when distributors implement the
advertising. According to previous studies, they showed the relationship
between good salespeople and customer satisfaction (Leuschner and Lambert,
2012). In case of this research, the perfect distributors make the satisfaction
of grocery owners by using the promotion. Thus, distributors have to inform to
the logistics managers for preparing sufficient quantity products for matching
the increase demand of these retailers. This research owned the hypothesis:H3.
Logistics performance of promotion attributes affects positively the retailer
satisfaction. Leuschner
and Lambert stated that “Place” would appear in the function of
logistics (Leuschner and Lambert, 2012). According to Leuschner and Lambert, “the
attributes that make up the place (logistics) category are focused on delivery
issues such as problem and complaint handling, responsiveness and flexible delivery,
lead time, and information accuracy”(Leuschner and Lambert, 2012). There was
the positive relationship between lead time and customer satisfaction (Mentzer
et al. 2001; Ra?q and Jafaar 2007). Therefore, the research sized the
hypothesis: H4.
Logistics performance of place attributes affects positively the retailer
satisfaction. Framework

The
study created four hypotheses and they would be tested. Thus, from the conceptual
model with hypotheses of Leuschner and Lambert (in 2012) (Leuschner and Lambert,
2012), the research would adjust to be suitable with its purpose in order to
get the model below with hypotheses.

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