Customer Satisfaction Analysis Based on Delivery Logistics Factors in Sri Lankan E-Commerce

Abstract

The rapid growth of e-commerce in Sri Lanka has resulted in an increase in the number of e-customers and e-retailers. To sustain this growth, e-commerce players must differentiate their offerings and operations to meet the evolving needs of customers, with customer satisfaction being a crucial factor in achieving a competitive advantage. Delivery logistics plays a critical role in ensuring customer satisfaction. A systematic literature review, following the PRISMA framework, identified the most impactful delivery logistics factors on customer satisfaction as delivery time, cost, and quality. Building upon this, the study utilized the mental accounting theory (MAT) to develop a conceptual framework. The objective of this study was to examine the relationship between delivery logistics factors and customer satisfaction and to explore the moderating effect of geographical variations and product categories on this relationship. Data was collected from a sample of 272 respondents living in rural and urban areas, using a structured questionnaire. The data were analyzed using partial least squares structural equation modelling (PLS-SEM). The findings suggest that delivery logistics factors positively impact customer satisfaction and that the geographical location of customers, and the product category moderate this relationship. Specifically, for e-consumers from rural areas, delivery cost was found to be a significant predictor of customer satisfaction. Furthermore, delivery logistics factors positively influenced customer satisfaction for shopping and special goods, but not for convenience goods. Overall, this study emphasizes the importance of delivery logistics in e-commerce, particularly in a developing country like Sri Lanka. It provides valuable insights for e-commerce players to enhance their operations and offerings, meet customers’ needs, and improve their competitiveness.