4. Research propositions
Due to different needs in LSQ dimensions by different
customers in different segments, satisfaction level responses
are driven by different constructs in LSQ. For example,
Mentzer et al.’s (2001) study found that certain customers
care most about the ease and effectiveness of the ordering
process itself and not necessarily about timeliness. In
contrast, both ordering procedures and order discrepancy
handling seem to drive satisfaction for a particular segment.
As such, we believe the homogenization of customer needs
yields horizontal segments that cut across country, sometimes
regional, boundaries.
P1: Horizontal market segments exist such that different
customer groups’ satisfaction level responses are driven by
the same sets of LSQ dimensions of perception of order
placement activities and perception of order receipt and in
the same process manner.
Organizational characteristics of customer firms also
matter in LSQ satisfaction response level. Customers serving consumer versus business markets emphasize different
LSQ dimensions of perception of order placement activities
and perception of order receipt. Satisfaction response level
of customers in retail markets and customers in wholesale
markets are driven by different LSQ dimensions. Furthermore,
customers’ internal operating systems, such as the
execution of the purchasing and warehousing functions,
cause differences in their preference and emphasis on
certain dimensions in LSQ. For example, timing issues—
such as 24/7 response centers—may be more important to
some customers. In other cases, given a low capital base,
smaller retail outlets might require frequent product deliveries,
making timeliness extremely critical in their evaluation
of suppliers’ LSQ. Thus, we propose:
P2a: Horizontal market segments exist such that customers
with similar organizational characteristics place similar
emphasis on the LSQ dimensions of perception of order
placement activities.
P2b: Horizontal market segments exist such that customers
with similar organizational characteristics place similar
emphasis on the LSQ dimensions of perception of order
receipt.
There are several reasons to believe cultural differences
cause managers from different countries or regions to
emphasize different factors influencing their judgments
and decisions about logistics services. First, cultural distance
between the countries representing exchange partners
influences managerial decision-making in a global business
environment (Kogut & Singh, 1988). Second, behavioral
norms and work-related values (e.g., Markoczy, 2000) that
are influenced by cultural differences cause disparity in the
levels of both commitment to exchange partners and perceived
satisfaction with exchange relationships. Third, given
that customers from different cultures have diverse
behavioral norms, they evaluate services differently, with
differing expectations regarding optimal and adequate encounters.
For example, how order accuracy and order
discrepancy handling affect overall satisfaction may differ
by country or by region, due to different levels of tolerance
toward errors. Firms in transitional economies have different
concerns in logistics services (Batra, 1999; Byrne &
Jozefowski, 1994; Reinganum & Helsell, 1994) due to the
characteristics of the market structure (e.g., system inefficiency,
longer and more fragmented distribution channels,
inadequate physical distribution, and logistics infrastructures).
Furthermore, organization’s perceptions of the business
environment—such as the criticality of the service to
successful business performance—may be more important
in some geographic areas (countries or regions) than in
others. As such, we propose:
P3: Vertical market segments exist such that the effects of
dimensions of LSQ on customers’ satisfaction level response
are moderated by national and regional variables.
These proposed relationships are illustrated in Fig. 1.