Topic 07: A Study on the Consumer Perspective and Experience in Postal Article Safety Through Last-Mile Delivery for Postal and Courier Industry

A Study on the Consumer Perspective and Experience in Postal Article Safety Through Last-Mile Delivery for Postal and Courier Industry

Nik Syuhailah Nik Hussin

Lead Researcher
Universiti Malaysia Kelantan

Zuraimi Abdul Aziz

Team Member
Universiti Malaysia Kelantan

Dzulkifli Mukhtar

Team Member
Universiti Malaysia Kelantan

Nurnaddia Nordin

Team Member
Universiti Malaysia Kelantan

Nurhaiza Nordin

Team Member
Universiti Malaysia Kelantan

01 ABSTRACT

The growth of e-commerce is the main factor driving the postal and courier industries. The modern customer is becoming more conscious of their rights. A few years ago, consumers made purchases without considering whether the goods met their expectations. Consumers today expect postal and courier services to provide high-quality service. Therefore, a study on consumer expectations and experience in postal article safety through last-mile delivery for the postal and courier industry has been conducted. Qualitative and quantitative research with a sample of 245 respondents are used in the study. The study is also analysed statistically using gap analysis and Importance Performance Analysis (IPA). The results showed a significant gap between expectations and experiences in all five (5) dimensions of service quality. With regards to the IPA matrix, service quality attributes were in the four (4) quadrants. Furthermore, the study highlighted 10 issues and challenges in ensuring parcel safety complies with the requirement. The negative gap in all dimensions of quality shows that quality improvement is necessary in all dimensions. Using service quality measurement instruments, IPA analysis will help courier service providers plan service quality improvement and achieve long-term goals.
Keywords: Importance Performance Analysis (IPA), service quality and courier services

02 introduction

In the competitive, service-oriented business environment of today, every company needs to strive to satisfy its clients by providing the best possible quality. The long-term success of a corporate organisation is mostly dependent on its customers. The postal and courier services must offer their customers valuable, high-quality services. The courier service providers are fortifying their positions and pursuing expansion by investing in e-commerce logistics, such as the use of cutting-edge logistics technologies and revitalising the supply delivery system, to match this demand and stay competitive in the difficult market as it has evolved from door-to-door to self-service using information technology and sophisticated logistical solutions. Alongside the e-commerce industry, the postal and courier market is growing rapidly, generating significant earnings for the industry. The e-commerce business is growing at an exponential rate, which presents both opportunities and challenges for online retailers and logistics companies. Due to the rising popularity of e-commerce, there has been a tremendous growth in consumer demand for express delivery services. However, the number of complaints from customers using postal and courier services has increased along with Malaysia’s growing demand for online business. For instance, it rose by 70 per cent between 2018 and 2019. In 2018, there were 1,235 complaints, while in 2019, there were 2,102 (MCMC, 2019). As last-mile delivery is a critical step in getting products to their destination, which is usually the customer’s doorstep, improving the quality of the services provided is therefore imperative. During this phase, a company’s reputation can be made or broken by its effectiveness and customer experience. To enhance last-mile delivery, businesses are looking for creative solutions as customer demands rise. Accordingly, the study aims to investigate the consumers’ experience in the last mile of a parcel delivery service that considers consumers’ experiences with last-mile delivery.

Problem Statement

When the COVID-19 pandemic struck, the movement control order disrupted domestic and international supply networks. Unintentionally, this increased the need for online purchasing, pushing companies to use e-commerce to stay in business. The postal and courier sector in Malaysia has grown rapidly in recent years, mainly due to the COVID-19 pandemic, shifting consumer behaviour, and the rise of e-commerce platforms. The logistics sector serves an ever-growing number of customers, mostly in the last-mile delivery sector, because of Malaysia’s e-commerce industry’s explosive growth. E-commerce is predicted by the Malaysian Communications and Multimedia Commission (MCMC) to increase from 14 parcels per capita in 2020 to 30 parcels per capita by 2025, and this rise is anticipated to continue. Even though the growth trend is favourable, many courier companies are finding it difficult to capitalise on the growing demand for their services because of intense competition and industry pressure to reduce service rates (Defry et al., 2022). Due to fierce competition and a protracted price war, many courier businesses, especially small ones are finding it challenging to profit from the growing demand for their services, despite their extensive awareness in the booming e-commerce market. The rise in parcel volume and market demands for reasonably priced services have led to a decline in last-mile delivery performance in the postal industry, which has raised consumer discontent with the security and timeliness of postal deliveries (Lei, et al., 2022). Furthermore, shifting business methods have also seriously impacted the last mile concept.

Late deliveries, parcels that are delivered in unsatisfactory circumstances, and missing or misplaced parcels are the most frequent issues. Because of this, MCMC saw a sharp increase in complaints from customers who were unhappy with the security and delivery of their postal items because of the growing volume of packages and pressure from the market to provide services at competitive prices. There has been a notable increase in the number of complaints received by MCMC about postal and courier services during the last three (3) years (2016-2018). In 2018, MCMC received 1,235 complaints, which is seven (7) times higher than the 143 complaints received in 2015 (MCMC, 2019). Among the complaints eceived are issues such as missing items, poor service, late deliveries, poor customer support, unfair prices, refunds, and other related delivery issues.

Research Objective

RO1

To provide a comparative benchmark of best practices for parcel safety during last-mile delivery.

RO2

To understand consumer perceptions on the practice of parcel delivery at the doorstep when not at home, expected areas of service improvement, and consumer willingness to pay additional fees to ensure parcel safety.

RO3

To understand issues and challenges in ensuring parcel safety during last-mile delivery to different demographics comprising types of customers, receiving addresses, and other contributors which could affect postal article safety and quality of delivery.

RO4

To provide recommendations for adopting best practices, guidelines, standards, or approaches to ensure industry compliance and higher consumer satisfaction with parcel safety and quality of services during last-mile delivery.

03 literature review

Postal and Courier Industry in Malaysia

The intense rivalry has arisen in the postal and courier sector due to the quickly expanding e- commerce parcel market, the inevitable collapse of the traditional core business of mail delivery as communications shift online, and other digital issues that the industry must continue to handle. Malaysia has a substantial amount of untapped potential for the advancement of the e-commerce industry, which is partially explained by its improved internet connection, high mobile penetration rate, and increased security (Halo, 2022). Businesses in the supply chain, such as courier firms that provide parcel delivery services, can benefit greatly from the expanding e-commerce sector (Siali, Wen, & Hajazi, 2018). The increasing popularity of online shopping has played a major role in the growth of courier services in recent years (Gulc, 2020). There is fierce competition among Malaysia’s postal and courier service providers since the sector is headed towards becoming a competitive market. Malaysia is home to many domestic and foreign businesses, all striving to increase their market share in this sector. Concurrent with the growing popularity of online shopping and the sporadic massive e-marketplace discount days, the courier service providers enhanced their services and handling. These developments were fuelled by digitally connected consumers who are always looking for better deals on products and delivery fees, increased convenience, and a seamless experience. According to a new analysis by Mordor Intelligence, the postal and courier market in Malaysia is predicted to rise from USD1.32 billion (RM6.18 billion) in 2023 to USD2.55 billion (RM11.94 billion) by 2028.

Service Quality Measurement Using SERVQUAL

The service sector makes the tough decision to assess service quality through the “eyes” of its customers (Arora & Arora, 2015). The service industry can grow quickly if it can offer higher-quality services. In summary, there is a distinction between a service’s quality and the performance standards that its clients hold it to. Since it gives informative information about how customers perceive services, the idea of service quality continues to be an important subject of research in marketing (Joshi & Chadha, 2016). When referring to quality in the context of services, it means assessing the services holistically, considering things like performance, features, compliance, durability, serviceability, and other quality-related factors (Parasuraman, 1988). By evaluating service quality, businesses can gain a competitive advantage and evaluate their place in the market. Berry et al. (1994) claim that SERVQUAL is a helpful tool for supporting organisations in their pursuit of quality improvement by highlighting areas that are critical to improvement. Parasuraman (1988) states that the SERVQUAL instrument’s dimensions can be applied in several industries.

Tangibility

According to Mei et al. (2018), one (1) important factor influencing service quality is the tangibles dimension. The tangible aspects of the service environment can significantly impact a customer’s affective response and behavioural intention. In a similar element, customers’ initial impression of a service is based on its physical surroundings (Pantouvakis & Lymperopoulos, 2008). In the same opinion, Markovic et al. (2011) argued that tangibles are more crucial for services with more tangible characteristics. Some aspects set courier services apart from regular mail services. The characteristics of courier services set them apart from regular mail services. Three (3) elements related to tangibility are availability, personnel, and assets. Personnel refers to workers who produce the service and assist in the management of courier service operations, whereas assets are defined as tangible tools, operational methods outlets’ locations, and websites (Roslan et al., 2015). Any tool that signals the presence of service during the delivery process is referred to as being available.

Responsiveness

Responsiveness, or the speed and accuracy with which courier service providers handle consumer inquiries and transactions, is a crucial component of service excellence. It involves giving customers clear information and actively listening to them to fulfil their responsibilities (Hu et al., 2012). The studied literature provides valuable insights into the importance of responsiveness as a constituent of service quality, its impact on customer satisfaction, and its role in shaping customer behaviour. Research conducted across numerous countries and industries offers a comprehensive understanding of the factors influencing service quality, customer satisfaction, and channel selection intention. This knowledge may be used by businesses seeking to enhance their service offerings and customer experiences. When referring to courier services, this could refer to the reaction that a courier service provider provides to its customers. If an employee had no justification for keeping their customers waiting, they would perceive them negatively.

Assurance

The provision of safety and guarantee by courier service providers is referred to as assurance. Additional components of assurance include capability, kindness, validity, and security. When clients receive services, the professionalism and degree of expertise of the workforce are crucial factors in providing assurance. Furthermore, employees must be able to inspire confidence and trust in customers (Izogo & Ogba, 2015). When answering inquiries, complaints, and other correspondence from customers, staff members must be courteous. This occurred because customers chose to patronise other companies instead of returning to the former one after becoming dissatisfied and uneasy with the service rendered by an employee. The fact that consumers prefer to do business with persons or organisations they can trust serves as evidence for this. It takes this dimension to guarantee customers’ happiness.

Empathy

According to Izogo and Ogba (2015), empathy is the capacity to focus on the requirements, wants, and difficulties of the customer and to successfully address their desires, relate to the issues suitably, show concern for them, and come up with solutions. In the words of Rishi, Deepak, and Suyash (2017), empathy includes things like offering outstanding customer service, considering the customer’s preferences, and accommodating business hours. A study reported by Kasiri et al. (2017), there is a relationship between empathy and customer satisfaction. Another benefit that gives customers confidence and trust while also boosting loyalty is empathy. In every scenario, staff members ought to be deeply engaged with the clients. Consequently, this is a means by which the business should take pride in providing customers with a personalised, exceptional, and valued experience to win their loyalty through empathy and highquality service.

Reliability

The ability of a courier service provider to honestly and consistently provide the goods and services that are agreed upon is referred to as reliability (Ngo and Nguyen, 2016). Customers will be happy when trustworthy services are provided. Reliability is the ability to reliably deliver services as promised, accurately, and on schedule. It entails having the capacity to resolve issues, manage transactions safely, and greatly affect the motivation of customers to make purchases (Chang et al., 2016). The factors influencing customers’ use of express delivery services which is a crucial last-mile delivery route were the main subject of Zhong, Lomas, and Worth’s (2021) analysis. The findings demonstrated that customers’ behaviour and inclination to use an express delivery service are positively influenced by their performance expectations regarding delivery reliability. From the standpoint of courier services, reliability can be evaluated by the number of times a parcel is delivered to its intended location and by the length of time it takes to deliver it.

04 methodology

In this study, qualitative and quantitative are employed. As for qualitative research design, this study employs documentary analysis to investigate contextual insights within existing textual materials related to parcel delivery services, such as journal and industry publications. By adopting documentary analysis within the specific context of parcel delivery services, the research seeks to enrich our understanding of the subject matter, providing nuanced insights to contribute to the existing body of knowledge in parcel delivery services. For the quantitative method, respondents were selected based on their experience and perception of using postal and courier services. Those who have used such services are chosen as they can provide insights into their experiences. Section A of the questionnaire covered the demographic information of the respondents, while the next section inquired about service quality, particularly on expectations and experiences using courier services. Each item was measured with the 5-point Likert Scale (1 = Strongly Disagree, 5 = Strongly Agree). Another section is asking about the issues and challenges in courier services. A total of 245 respondents were collected. The mean scores for each service quality dimension (in both expectations and experiences aspects) were calculated. The quality gap was calculated by deducting the expectation and experience scores. Additionally, Importance-performance analysis (IPA), developed by Martilla and James (1977) was used to determine which characteristics were low-performing and needed intervention to raise the quality of services provided by the courier service providers, as well as which characteristics were high-performing and demonstrated the strength of the courier service providers. The scores of the expectations and experiences were determined for each quality attribute based on consumers’ perspectives.

Each quadrant of this matrix provides a strategic guide to help courier service providers perceive the consumers’ concerns, as well as the necessary steps to boost customer satisfaction. The attributes assigned to Quadrant I (areas to be improved) have high expectations but low experience indicating the failure of the courier service provider to meet the consumer’s perceived performance in this area. The attributes with both high expectations and experience fall into the Quadrant II (need to be monitored) representing the core strengths of the courier service providers. The Quadrant III (low preference) belongs to the attributes with both low expectation and experience. It shows courier service providers should be a low priority because the average expectation for these attributes is the same as the average experience overall. Attributes with low experience and high performance are placed into the Quadrant IV (possible overkill) indicating the minor strengths. It suggests that courier service providers might be overkill given that the average anticipation for these attributes is lower than the average experience overall.

05 finding and analysis

Respondent Profile

Table 1@3x
Table 1: Demographic Profile of Respondents
The analysis of participant demographics reveals a diverse cross-section of respondents across various categories. The gender distribution within the sample population indicates a slightly higher representation of females (59.2 per cent) compared to males (40.8 per cent). Age-wise, the majority of respondents fall within the 18-29 years bracket, constituting 43.7 per cent of the sample, followed by descending percentages in subsequent age groups. The racial composition highlights a predominant representation of individuals from the Malay ethnic group (71.4 per cent), with notable percentages from Chinese (14.7 per cent), Indian (11.8 per cent), and “Others” (2 per cent) ethnicities. In terms of educational attainment, a significant proportion holds Bachelor’s degrees (50.6 per cent), followed by Master’s degrees (22.4 per cent), while smaller percentages possess Diploma/STPM/ A-Level qualifications (17.1 per cent), Doctoral degrees (6.1 per cent), or SPM/ MCE/O-Level certificates (3.7 per cent). Professionally, this research covers a diverse range. Of the respondents, 29.4 per cent were students, followed by people from the private sector (27.8 per cent) and people from the public sector (20 per cent). There is also a proportion of self-employed people (13.9 per cent), pensioners (4.9 per cent), housewives (3.3 per cent), and a minimal proportion of unemployed people (0.8 per cent). The income distribution shows a diverse range, with the majority earning less than RM2,500 (44.5 per cent) and the smaller percentage earning more than RM15,040 (2.9 per cent). Collectively, these results represent a diverse and multifaceted participant pool and provide comprehensive insight into the demographics of our survey respondents.
Table 2@3x
Table 2: Type of residential
The assessment of residential types conducted in the study shows a diverse distribution among the participants. According to the data, most people live in terraced houses (25.3 per cent, followed closely by those living in bungalows (19.0 per cent). Regarding institutional residential, a significant proportion of respondents (20.4 per cent) lived in public universities, suggesting a significant presence of students and people associated with these institutions. However, minimal proportions were observed at private universities (0.8 per cent), graduate universities (2 per cent), technical colleges (4.9 per cent), and community colleges (1.2 per cent), this indicates relatively low participation among people in the country. A significant proportion of those surveyed live in various types of apartments or housing complexes. This includes residents of apartments/apartments/condos with doorstep delivery (12.2 per cent), serviced apartments (1.2 per cent), studio apartments (1.2 per cent), and SOHO residents. (Small offices/home offices) (1.2 per cent), semi-detached houses (3.3 per cent), cluster houses (2.0 per cent), townhouses (2.2 per cent), villas (1.2 per cent). Additionally, a small proportion live in other housing types classified as ‘other’ (0.2 per cent). The distribution of residential types within the study population shows a wide range of housing preferences and housing types. The prevalence of singlefamily houses such as terraced houses and bungalows indicates that a significant proportion of people live in traditional housing structures. On the contrary, the existence of various types of residents, such as apartments, housing complexes, and institutional housing complexes, shows the diversity of living styles and ways of living. This diverse housing representation in survey data can potentially impact various aspects such as accessibility to amenities, community dynamics, and lifestyle preferences.

Best Practices of Parcel Delivery

The best practices of parcel delivery services from the chosen nations namely Malaysia, the UK, the US, Singapore, China, and India were investigated contextually through the use of documentary analysis in this research. Each of the selected countries has its own best practices for running the postal sector.

Delivery to Local Distribution Hub

Every country place equal emphasis on localised distribution when it comes to parcel delivery to local distribution hubs that are nearest to the recipient’s residence. Efficiency and convenience are prioritised in this worldwide approach for the final distribution stage. Despite their disparate geographic origins, all countries recognise the importance of being close to the recipient’s location, which is crucial for optimising the last-mile delivery process. Two (2) prominent countries that have implemented centralised distribution centres are Singapore and the United Kingdom. In the UK, parcels are routed through distribution centres and delivery depots, expediting the sorting process, and preparing deliveries for dispatch. Singapore, on the other hand, adopts a coordinated approach by offering delivery to regional hubs, specified parcel collection locations, or local distribution hubs. China adopts a comprehensive strategy that includes the use of distribution centres for the final phase of delivery. This approach takes into consideration the vast geographical expanse of China and ensures efficient parcel handling at both local and federal levels. In contrast, India employs a decentralised approach, directing items to distribution centres and decentralising last-mile delivery. This strategy aligns with India’s diverse topography and population concentrations. While all of these countries are committed to enhancing local delivery services, they employ different techniques for parcel preparation and sorting.

Sorting and Processing

The sorting and processing methods utilised by various postal administrations exhibit both similarities and unique strategies. In Malaysia, items undergo meticulous categorisation in central or regional facilities based on their dimensions, weight, and intended purpose. This meticulous sorting underscores Malaysia’s commitment to maintaining a wellorganised supply chain. Similarly, in the UK, parcels undergo sorting at distribution centres according to their respective destinations, with realtime processing employed. This approach underscores the UK’s dedication to achieving efficient and prompt package classification. In contrast, China, India, and the US all employ centralised sorting methods. The US Postal Service, for instance, prioritises a centralised and streamlined sorting process. Parcels are categorised at sorting facilities based on their size and destination, aiming to optimise transit efficiency.

The approach in Last-Mile Delivery and Consumer Authentication

For Malaysia, the UK, Singapore, and China, the importance of obtaining a signature or confirmation of delivery is emphasised. This shared practice underscores the commitment to ensuring the safe and reliable completion of the last-mile delivery process. Meanwhile, the UK is unique as it employs a hybrid approach, utilising both local courier services and postal workers for last-mile deliveries. This dual technique provides process flexibility in the distribution process by utilising the benefits of both services. As opposed to this, last-mile delivery in the US, Singapore, and India primarily relies on the dedicated work of postal workers or staff. The streamlined approach centralises accountability for the parcel service and ensures a seamless and effective delivery process. These distinctions highlight the varying strategies employed in last-mile delivery across different countries.

Notification and Tracking Technologies

Malaysia distinguishes itself by emphasising the utilisation of mobile apps for notifications and tracking, demonstrating a strong commitment to leveraging mobile technology as a convenient avenue for delivering realtime updates. On the other hand, Singapore provides comprehensive package notifications along with tracking information, showcasing a proactive approach to customer service. The inclusion of web portal alerts in China, however, indicates a reliance on online communication channels and a preference for centralised digital channels, which may enhance the efficiency and uniformity of notification processes. These little adjustments take into account country-specific elements and accommodate a variety of customer preferences and technological surroundings.

Return and Redelivery

If the first delivery is unsuccessful, all the aforementioned countries (Malaysia, the United Kingdom, the United States of America, Singapore, China, and India) routinely offer options for redelivery or pickup from designated locations. This flexibility has been put in place to provide options for redelivery or pickup from designated locations. This flexibility is implemented to offer consumers convenient alternatives for receiving their items. In Malaysia, the parcel service takes the initiative to try and redeliver the package. If unsuccessful, arrangements are made for consumers to conveniently pick up the parcel from a nearby parcel office. This proactive approach ensures multiple opportunities for successful delivery. The UK postal service provides a number of choices for recipients in the event that a delivery is not successful. Consumers can ask for a redelivery or pick up the undelivered item from nearby offices. This flexibility allows for the varied schedules and preferences of the consumers. When parcels from the US postal service are returned undeliverable, consumers can choose to have them picked up at a nearby post office or request a redelivery. This customer-centric strategy ensures that consumers have control over the delivery process. In Singapore, parcel consumers have the choice of picking up their parcels from pre-designated locations or requesting a redelivery. This adaptability meets the various needs of the consumers by letting them select the most practical method of delivery.

Compensation Claims

Consumers in all the countries namely Malaysia, the UK, the US, Singapore, China, and India may submit online claims for compensation. This indicates a shared commitment to enhancing consumer convenience through digital media. To initiate a compensation claim, consumers must provide specific data and related documentation in every country, ensuring a consistent process for claim validation and handling. Consumers in Malaysia and India can start the compensation claim process by going to their local distribution hub. Those who like in-person interactions and assistance may find satisfaction in this traditional approach. Consumers in the US have the option of visiting their local post office or utilising the online claims procedure. This two-pronged strategy offers options according to personal tastes and practicality. Singapore and the UK both place a strong emphasis on online submissions made through specific portals. This demonstrates a more sophisticated digital infrastructure, resulting in an accessible and effective claims procedure. Consumers in China have the option of submitting their claims online or in person at post offices. This adaptability considers the customer base’s varied tastes and level of technology access. Meanwhile, the US distinguishes itself by offering a tangible claims form to its clients. For individuals who might prefer a more conventional, paper-based technique, an alternate way is available. Other nations do not specifically mention using a paper claims form; instead, they mostly rely on online submissions. The focus on online procedures is consistent with the worldwide movement towards digitalisation. This comparison and contrast show a dedication to provide a variety of choices for clients to file compensation claims by highlighting a blend of traditional and digital ways across various nations.

Transportation

The comparison reveals that every country employs a range of transport methods, indicating a comprehensive approach to meet diverse delivery needs. Postal trucks are utilised by all countries, demonstrating the critical role that specialised postal transportation resources play. On the other hand, only the US incorporates airplanes into its transportation mix, indicating a greater reliance on air travel for efficient parcel delivery. Private courier services are occasionally used by the UK, adding another layer of collaboration with outside vendors. Due to its vast size, China places emphasis on a combination of local delivery services and postal vehicles built to handle the nation’s diverse landscapes.

Gap Analysis

Table 3@3x
Table 3: Gap Score Analysis
This study examines the differences between consumers’ expectations and their experiences about several service quality factors, including tangibility, responsiveness, assurance, empathy, and reliability. The mean scores for the expectation and experience quality gap have been shown in Table 3. Accordingly, the gaps between the importance and performance were negative in all the dimensions. Consumers had high standards for tangible features; they expected aesthetically pleasing physical components and high-quality infrastructure, with a mean score of 4.29 predicted. On the other hand, the average of the reported encounters was 3.91, suggesting a significant difference. This disparity indicates that to improve overall customer satisfaction and more closely match customers’ expectations, the physical presentation of services may need to be refined. The findings imply that although concrete elements like the state of vehicles and facilities and responsiveness are important, they occasionally fail to live up to customer expectations.

The projected score for responsiveness to consumer needs was 4.35, which demonstrated high expectations. However, the experiences recorded an average score that was a little lower, 3.88. This shows that there is space for improvement in terms of response times, problem-solving, and general customer service to better meet the high standards set by customers. This suggests that to guarantee that these factors continuously contribute favourably to satisfaction, more focus has to be placed on optimising them. Expected assurance in service interactions was high, with a mean score of 4.42. The mean score for the experiences was 4.04, which is marginally lower than expected and indicates a moderate level of pleasure. Enhancing features like security, dependability, and trustworthiness may increase customer satisfaction and confidence. Giving customers clear and precise information has been shown to have a beneficial effect on their level of satisfaction overall. When they obtain trustworthy information, customers appreciate the confidence and faith courier service providers engender in them. Consequently, strengthening assurance tactics can improve the customer’s experience.

The service provider has to give greater attention to the empathy dimension, as evidenced by the highest mean score of 4.40 on consumer expectations. The experiences revealed a mean score of 4.04, which was somewhat lower but still in close alignment. Enhancing compassionate methods of customer service could improve the customer experience even further. Our results support the idea that sincere and real empathy can strengthen the ties between customers and courier service providers, resulting in higher levels of customer satisfaction. Therefore, it is not only supported but highly urged that the customer satisfaction sector emphasise empathy as a fundamental component. With a mean score of 4.40, it was estimated that service delivery would be highly reliable. The experiences, however, revealed a mean score that was marginally lower 4.00 than expected, indicating a moderate level of satisfaction. Improving service delivery characteristics like precision, dependability, and consistency could greatly increase total customer satisfaction. Customers’ satisfaction with the postal service appears to be negatively impacted by elements like delays and uneven service quality. This shows that to achieve customer expectations, reliability in the context of safety needs to be closely examined, with a focus on ongoing improvement.
Table 4@3x
Table 4: Top 10 Highest Attributes Gap
From the analysis of the score gap, the results of the Top 10 highest gap as shown in Table 4, improving things like timely customer notifications, quick customer service, being available to assist customers with problems, and having a dependable parcel tracking system are essential for raising the general assessment or level of satisfaction with the courier service provider. The courier service provider may use these results to prioritise areas that need improvement. Taking care of these elements that have stronger negative associations may result in a more positive assessment or conclusion overall, most likely concerning client happiness, trust, or the perceived calibre of the courier service.
Table 5@3x
Table 5: Top 10 Lowest Attributes Gap
Regarding the Top 10 lowest gap results as highlighted in Table 5, enhancements in areas like updated courier technology, courteous and efficient communication about parcel safety, understanding of customer demands for safe delivery, provision of accurate parcel information, adherence to safety regulations, and local knowledge of courier staff members could greatly raise the overall assessment or satisfaction with the courier service provider. These results may help the courier service provider prioritise improvements in these areas, which could improve the overall assessment or result. This would probably increase customer satisfaction, trust, or the perception of the company’s service quality.

Importance-Performance Analysis (IPA) Matrix

The next step was to perform an Importance-Performance Analysis (IPA) matrix to determine which attributes require the greatest improvement and to make sure that courier service providers are efficiently allocating their services. The IPA matrix was drawn after determining the expectation and experience scores of each quality dimension and attribute. The matrix is classified into 4 quadrants as shown in Figure 1 (Quadrant I: Areas to be improved, Quadrant II: Needs to be monitored, Quadrant III: Low preference, and Quadrant IV: Possible Overkill). Following the acquisition of the implicit experience and explicit expectation, the IPA matrix was used to plot 37 attributes, with the intersection determined by using the mean of 3.98 for experience and 4.38 for expectation.
Asset 1@3x
Figure 1: Importance-Performance Matrix on Consumers
TA1: Facilities and transportation tools are in order; TA2: Staff are properly presented in uniform and dress code; TA3: Adequate secure packaging services offered to customers; TA4: Adequate parcel handling safety; TA5: Updated courier technology (i.e.: QR code); TA6: Courier service provider provide adequate tracking and monitoring system; TA7: Drop off security (i.e. proof of delivery); RP1: Able to provide timely notification to customers on delivery updates; RP2: Ready to help if customer faced any problem; RP3: Capable to offer timely remedy for any issues occurred during delivery; RP4: Promptly response to customer request; RP5: Knowledgeable and skilled in handing parcel delivery; RP6: Ability in handling lost and damaged parcels; RP7: Ability in communication during parcel delivery delays; RP8: Ability to provide incident reporting; AS1: Courier service is helpful in guiding customers to ensure parcel is delivered safely; AS2: Parcel is delivered securely; AS3: Provide accurate parcel information; AS4: Integrity of courier employees when handling postal articles; AS5: Courier employees are familiar with locality; AS6: Able to ensure the protection of the personal information of the sender/ recipient when the parcel is delivered; AS7: Able to ensure that parcels are placed in a safe place for contactless delivery; AS8: Courier service provider assure declaration of liability should the parcel is lost or damaged; AS9: Courier service provider should oblige existence of safety guidelines in delivery of parcel; AS10: Courier service provider should accommodate parcel packaging guidelines; EM1: Understand the customer’s need to ensure that parcel is de livered in a secure manner; EM2: Always be prepared with the necessary information if the customer wishes to know or face issues related to the safety of the parcel; EM3: The courteousness communication from courier employees with respect to the safety of parcel delivery; EM4: The willingness to consider service delivery beyond scope to ensure the parcel is safely delivered; EM5: Courier service providers should take note of customer complaints regarding the safety of parcel delivery; RL1: Consistence in meeting timeline; RL2: Accuracy in retrieving customer delivery information; RL3: Controlled damage in service delivery; RL4: Ability to notify accurate customer delivery information; RL5: Willingness in handling reversed parcel; RL6: Able to ensure parcel delivered in good condition; RL7: Courier service provider should consistent in meeting Service Level Agreement (SLA) in delivering the parcel.

As depicted in Figure 1, the characteristics in Quadrant I encompassed seven (7) attributes, namely tangibility (TA6), responsiveness (RP4, RP6), assurance (AS1, AS8), and reliability (RL 1, RL3). It demonstrates how these characteristics positively impact consumer expectations even when their experience is viewed as deviating from the norm. Therefore, the courier service provider should make extra efforts to improve these features and pay special attention to them to ensure that parcel safety compliances are met to effectively meet client expectations. In addition, 16 attributes associated with dimensions including assurance (AS2, AS3, AS4, AS5, AS6, AS7, AS9, AS10), empathy (EM1, EM2, EM3, EM4), and reliability (RL4, RL5, RL6, RL7) were in Quadrant II. Given that these characteristics have greater experience than the mean and positively impact consumer expectations, courier service providers must continue to provide the same or exceed the level of service by periodically assessing the efficacy of their offerings.

10 attributes, grouped into dimensions like tangibility (TA1, TA2, TA3, TA4, TA5) and responsiveness (RP1, RP2, RP3, RP7, RP8), were in the Quadrant III. It demonstrates how consumers believe these attributes don’t work well enough to produce subpar results. These characteristics have less of an impact on what consumers expect, therefore accepting the service change is not as necessary. Lastly, four (4) attributes from dimensions like tangibility (TA7), responsiveness (RP5), empathy (EM5), and reliability (RL2) were incorporated in Quadrant IV. It demonstrates that, even when experience is already above average, these attributes have less of an impact on consumer expectations. As stated otherwise, these attributes exhibit phenomena of service overload; hence, to improve the user experience about parcel safety while taking resource constraints into account, service providers must shift services from these attributes to those of Quadrant I.

Issues and Challenges

The analysis of descriptive analysis shows how frequently or how important certain problems with parcel delivery services are judged to be.
Table 6@3x
Table 6: Descriptive Analysis of the Issues
It is clear from the mean ratings and standard deviations that consumers have varying experiences with and perspectives on these issues as shown in Table 6. For example, mean ratings in the mid-six range indicate significant levels of worry for issues including parcel loss, damage, wrong delivery, dishonest staff, parcel theft, poor customer service, restricted delivery alternatives, and trouble rescheduling deliveries. With a much higher mean rating of 7.01, the problem of delivery worker impersonation stood out and indicated a greater level of worry among respondents. The standard deviations that follow each of these concerns show how participants’ experiences or perceptions of these obstacles differ in terms of agreement or divergence.
Table 7@3x
Table 7: Descriptive Analysis of the Challenges
On the other hand, the descriptive study of the challenges performed on difficulties experienced by the delivery service sector offers important insights into the perceived problems this industry faces. The standard deviations and mean scores show that respondents had differing levels of worry about certain difficulties. Interestingly, problems including low-efficiency levels, inadequate route planning, and transparency received higher mean scores, indicating that the industry views these problems as more important. In contrast, although the mean scores for difficulties such as highly competitive markets and price wars were somewhat lower, their standard deviations demonstrate a wide variety of opinions among participants. The findings highlight the complex and diverse nature of issues facing the delivery service industry, underscoring the necessity of all-encompassing approaches that tackle route planning inefficiencies, guarantee transparency, and boost productivity. To further simplify operations and raise service standards in this industry, plans should consider the market’s dynamic and competitive nature in addition to handling process upgrades and tool standardisation.

Table 8 and Table 9 show the results for the t-test and One-Way ANOVA respectively. This analysis is to test the issues and challenges in ensuring parcel safety during last-mile delivery to different demographics comprising types of customers, receiving addresses, and other contributors which could affect postal article safety and quality of delivery.
Table 8@3x
Table 8: Results of Independent Samples Test for the Issues and Challenges
From Table 8, the results show the effects of the issues and challenges to the gender. Both issues and challenges have no significant effects on gender and conclude that there is no difference in the effects of the issues and challenges on gender.
Table 9@3x
Table 9: Results of One-Way ANOVA for the Issues and Challenges

Implementation Approaches on Parcel Delivery

To maintain industry competitiveness and customer satisfaction with parcel safety and service quality during last-mile delivery, service providers may implement various strategies, as highlighted by the findings of the study.

Parcels are sent to the local distribution hub nearest the consumer’s home, ensuring a localised and effective last-mile delivery process on the part of the service provider. In addition to giving consumers’ convenience top priority, this tactic also cuts down on transit times, which raises customer satisfaction levels. The emphasis on proximity in its operations makes it a strong contender for best practices in postal services, as it reflects the service provider’s commitment to optimising the final phase of delivery and adopting a customer-centric approach. With this implementation strategy, customer satisfaction with parcel safety and service quality during last-mile delivery is guaranteed.

The careful process of classifying products at central or regional sorting facilities according to size, weight, and intended usage must be implemented by the service provider. This method shows the service provider’s dedication to a well-organised and efficient sorting procedure by guaranteeing that goods are effectively guided to their designated destinations. The service provider is a solid candidate for recognition in the field of best practices because of the methodical sorting criteria, which enhance the postal network’s overall efficiency.

When it comes to parcel delivery, service providers’ employees go above and beyond by ensuring confirmation of delivery when required. This commitment is made possible by the comprehensive and customer-centric strategy they employ. This dedication to verification upholds the security and legitimacy of the delivery procedure, fostering client happiness and confidence. This is done to make sure that, when it comes to last-mile delivery, the safety packet complies with global requirements for a trustworthy postal service.

It might be challenging to meet consumer expectations, particularly in the areas of order tracking and delivery alerts. The service provider must prioritise integrating technology in a forward- thinking manner. Utilising mobile platforms ensures that consumers can easily track their packages and receive notifications, which is in line with the modern consumer’s preference for accessibility while on the go. This approach not only improves the user experience but also shows awareness of how the digital world is changing.

The service provider stands out for its proactive approach to attempting redelivery and simplifying the parcel pickup process for customers at local courier offices. This method lessens consumers’ inconvenience while also increasing the likelihood of successful deliveries. The focus on offering a variety of options helps to guarantee a satisfying consumer experience and boosts the postal system’s effectiveness. When implementing return and redelivery policies, service providers’ efficiency, customer happiness, and adaptability should all be taken into account.

The service provider’s dedication to customer satisfaction is demonstrated by how well it handles compensation claims within its postal service. Online submissions must be in line with contemporary, customer-focused solutions, according to the service provider. Customers can easily navigate and submit information using the online approach, which speeds the claims processing. This is in line with the increasing convenience of relying on digital platforms. Recognising the diverse technical environments among their customer base, the service provider allows customers to file claims online, ensuring accessibility and flexibility in interacting with the claims procedure according to their preferences.

The parcel service provider’s efficient and community-focused approach necessitates improving the transportation method. The utilisation of postal vans for localised delivery to nearby courier offices and distribution centres exemplifies a strategic approach that considers the nation’s topography. This procedure reduces needless transportation and guarantees a prompt last-mile delivery to consumers in designated communities. The service provider is dedicated to streamlining its transportation processes in order to deliver parcels quickly and efficiently.

06 recommendations

The results of the study shed light on the intricate ecosystem that surrounds consumer satisfaction. Many significant factors have been studied; each has a unique impact on the overall customer experience. These components are assurance, responsiveness, empathy, tangibility, and reliability. The courier service providers give careful consideration to elements that raise service quality and guarantee the safety of the delivered parcel. When aiming to deliver a satisfying and enjoyable customer experience, service providers must prioritise interpersonal relationships alongside the reliability, assurance, responsiveness, and tangible aspects of their services. By doing so, they can enhance customer satisfaction, loyalty, and trust, which are vital to the industry’s long-term viability and sustainability.

A gap analysis was conducted to identify and address existing issues, enabling service providers to enhance their business operations. Determining precisely how the consumers’ expectations and perceptions differ from one another is the most crucial step in the gap analysis process. The courier service provider uses these results to prioritise areas that require development. Taking care of these variables that have stronger negative associations may result in a more positive assessment or conclusion overall, most likely addressing client happiness, trust, or the perceived calibre of the service.

Based on the IPA Matrix, results showed that there were seven (7) characteristics such as courier service provider provide adequate tracking and monitoring system; prompt response to customer request; ability in handling lost and damaged parcels; courier service is helpful in guiding customers to ensure parcel is delivered safely; courier service provider assure declaration of liability should the parcel is lost or damaged; consistence in meeting timeline; and controlled damage in service delivery that requires improvement by service providers. For instance, it demonstrates how these characteristics elevate customer expectation even in situations where the actual experience resulted at the low level. Therefore, the courier service providers must successfully satisfy customer expectations by increasing additional effort to enhance these aspects and pay close attention to them to guarantee that parcel safety compliances are met.

The outcome indicates how significant several issues and challenges with parcel delivery services are thought to be. The outcome makes it evident that different consumers have different perspectives on and experiences with these issues and challenges. Therefore, it is recommended that service providers prioritise addressing and resolving the issues and challenges identified in this study, such as parcel loss, damage, wrong delivery, dishonest staff, poor customer service, restricted delivery alternatives, and trouble in rescheduling deliveries. To improve the industry’s overall service standards, operational efficacy, and reliability, the courier service providers should prioritise resolving the issues and challenges related to finding. If these issues and challenges are successfully resolved, customers may be able to access a more robust and dependable service.

The effectiveness of a last-mile delivery has a big impact on a service provider’s profitability. Consequently, to ensure that consumers receive the best possible service, it is imperative for the service provider to be well-versed in last-mile delivery best practices. Delivering parcels from the carrier facility to the designated address is the responsibility of the last-mile delivery phase, which is the last link in the supply chain. An efficient last-mile delivery strategy can result in things being delivered more quickly and for less money. The best practices employed by the parcel delivery companies in the selected countries were detailed in the study’s findings. Therefore, the service provider should investigate various strategies that might apply inside their businesses to ensure industry competitiveness and customer satisfaction with parcel safety and high-quality services provided during last-mile delivery.

07 conclusions

The study’s findings indicated that the courier services quality did not completely comply with the consumers’ expectations, and there is still room to improve service quality and reduce the negative gaps. Decision-makers can further use the results of the IPA matrix to effectively allocate limited resources giving special attention to the organisational weaknesses. In addition, about the issues and challenges, it is critical to address the detrimental effect on the consumer’s satisfaction. The courier service providers should give priority to making improvements to the issues and challenges highlighted in the study of deliveries to all places to lessen this problem.

08 references

Arora, H. and Arora, P. (2015) ‘Service quality dimensions: an empirical investigation of commercial banks in India using SERVQUAL’, Int. J. of Services and Operations Management, Vol. 21, No. 1, 50 – 72
Chang, S.H., Chih, W.H., Liou, D.K. and Yang, Y.T. (2016), “The mediation of cognitive attitude for online shopping”, Information Technology & People, Vol. 29 No. 3, 618 – 646
Defry, M. C, Ahirudin, N. F., Wan Nur Fatiha Wan Mohd Hariri, W. N. F. W.M, Kumaran, K., Azrul, A., Nazidin, N. M. (2022). A Study of The Demand for Courier Service Industry in Malaysia. Journal of Management and Business Studies, 1(1), 107-120
Gulc, A. (2020). Determinants of Courier Service Quality in e Commerce from Customers’ Perspective. Quality Innovation and Prosperity Journal, 24(2), 137-152
Halo, V. (2022). Malaysia e-commerce market to grow 20% in 2022. Retrieved from Retail in Asia https://www.retailinasia.com/featured/malaysia-e-commerce-market-to-grow-20-percent-in-2022
Hu, N., Bose, I., Koh, N.S., & Liu, L. (2012). Manipulation of online reviews: An analysis of ratings, readability, and sentiments. Decision Support Systems, 52 (3), 674 – 684
Izogo E.E., Ogba I.-E., 2015. Article information: International Journal Quality & Reliability Management, 32(3), 250 - 269
Joshi, P. & Chadha, S.K. (2016). Measuring service quality perception of students in business schools’, International Journal of Services and Operations Management, Vol. 25, No. 4, 479 – 507
Kasiri, L. A., Cheng, K. T. G., Sambasivan, M., & Sidin, S. M. (2017). Integration of standardization and customization: Impact on service quality, customer satisfaction, and loyalty. Journal of Retailing and Consumer Services, 35, 91 – 97
Lei, Z., Duan, H., Zhang, Ergu, D., & Liu, F. (2022) The main influencing factors of customer satisfaction and loyalty in city express delivery. Front. Psychol. 13
Malaysian Communications and Multimedia Commission (MCMC) (2019). Industry Performance Report 2019
Martilla, J. and James, J. (1977), ‘Importance-Performance Analysis’, Journal of Marketing, 41(1), 77 – 79
Ngo, M. V. & Nguyen, H. H. (2016). The relationship between service quality, customer satisfaction and customer loyalty: An Investigation in Vietnamese Retail Banking Sector. Journal of Competitiveness, 8(2), 103 – 16
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12
Rishi, K. Deepak, J. & Suyash, M. (2017). The Investigation of Service Quality Dimensions, Customer Satisfaction and Corporate Image in Indian Public Sector Banks: An Application of Structural Equation Model (SEM). Journal of Business Perspective. 21 (1) 76 – 85
Siali, F., Wen, A. W. S., & Hajazi, M. U. A. (2018). Booming of Online Shopping in Malaysia: Do Customers Satisfy with Parcel Delivery Service? International Journal of Academic Research in Business and Social Sciences, 8(12), 415 – 436
Zhong, S., Lomas, C., & Worth, T. (2021): Understanding customers’ adoption of express delivery service for last-mile delivery in the UK, International Journal of Logistics Research and Applications

up next:

Assessing the Current State of Digitalisation and Challenges in the Oil Palm Plantation Sector in Peninsular Malaysia

by Dr. Nur’aina Daud, Prof. Ts. Dr. Hjh Anitawati Mohd Lokman, Ts. Dr. Surya Sumarni Hussein, Ms. Saidatul Rahah Hamidi, Dr. Shuhaida Mohamed Shuhidan, Dr. Zainab Idris and Mr. Mohamad Fairus Mohd Hidzir
Read manuscript
download arrow-left arrow-right