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: 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: 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: 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: 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: 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.
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: 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: 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: 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: 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.
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