Impact of reverse logistics on customer satisfaction: an automobile industry of Pakistan

Abstract

In today’s era, where competition is at its peak, now a day’s differentiations with passage of time is becoming an obsolete concept, Reverse logistics can play an important role and can be a company’s biggest tactic to achieve total customer satisfaction. Now a day’s those companies are considered powerful and competitive who can exactly provide the customer what they are looking for through power reverse logistics services and also are capable of maintaining the value during the remanufacturing process. According to the customers the satisfaction is their voice should be heard and must be given a quality product or in simple terms there expectation must be fulfilled. Results are all what customer wants and in very minimum time period. When it comes to defected product companies are willing and doing utmost effort to process the customers’ complaint as soon as possible so to retain the customer, in this way customer will make a repurchase again. This research investigates the impact of “Reverse Logistics” on customer satisfaction in automobile industry of Pakistan. Six different dimensions were used to measure reverse logistics which are technology, information sharing platform, material flow, suppliers, efficiency and return process whereas three dimensions were used to measure customer satisfaction which are quality, expectations and customer service. It is an empirical study with cross sectional design based on survey method. The data is collected through questionnaire tool from the employees of three automobile companies (Honda, Toyota and Suzuki) and customers who have purchased automobile from above mentioned companies in twin cities of Islamabad and Rawalpindi. All the questions included in the questionnaire were close ended questions and 5 points liker scale was used. Two different questionnaires were used to measure individually the RL and CS. Sample size is 50. 30 responses were valid. For data analysis, descriptive statistics, reliability analysis, correlation analysis and linear regression analysis have been applied using SPSS 20. The variables showed good reliabilities in their inter-dimensional relationships but overall the impact of reverse logistics over customer satisfaction is seen very less i.e. only 4.3%. The concept of reverse logistics leads to customer satisfaction holds a partial impact as per my study results.