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PROJECT REPORT
Submitted by
Ashwin Nair
of
MARCH 2019
BONAFIDE CERTIFICATE
1
Certified that the Project Report entitled Customer Satisfaction Of DHL
Pvt. Ltd is the bonfire work of Ashwin Nair, carried out under my supervision.
DECLARATION
2
I, affirm that the Internship work entitled Customer Satisfaction Of DHL Pvt.
Ltd being submitted in partial
Fulfillment for the award of Bachelor Of Business Administration is the
Original work carried out by me.
ACKNOWLEDGEMENT
3
A project work is the process of experiencing a long way in helping up a person
in his respective profession and a group of kind hearts is behind its success. So
we have taken this golden opportunity to acknowledge those who molded up
this study.
Initially I express my valuable and deep sense of gratitude and thankfulness
goes to my Ever Worthy CEO & Secretary Dr.P.KRISHNAKUMAR, Nehru
Group of Institutions who is always caring and dedicated towards the
institution.
I sincerely thank our beloved Principal Dr.B.ANIRUDHAN, Nehru Arts and
Science College, who add more value to this training.
I am extremely grateful to the indebted Head of the Department
Dr.G.MURALI MANOHARI, Nehru Arts and Science College, who has helped
me in arranging this training.
Then gratitude goes to my supportive and encouraging internship
Guide------------------, Assistant Professor, Department of Business
Administration Nehru Arts and Science College, for their support throughout
the course of my study and his timely advice and kind co-operation.
Then my hearty gratitude goes to the honorable FACULTY MEMBERS of
Department of Business Administration Nehru Arts and Science College for
their support extended whenever required.
Last but not the least I take this opportunity to thank the almighty, my Parents
and friends for their encouragement and cooperation
TABLE OF CONTENTS
4
S.No. Topic Page No
Chapter-1: Introduction
Overview of Industry as a whole
Competitor’s Information
Research Methodology
Chapter-2: Conceptual Framework
Main topics & Sub Topics
Limitations
CHAPTER I
5
INTRODUCTION
A multitude of companies today has already identified the need to create a loyal customer
base and acknowledges that maintaining existing customers and extending business with
them is significantly less expensive than acquiring new customers. Empirical proof of the
proliferation of such customer loyalty efforts in the business world is e.g. provided in the
form of loyalty programs, which many companies have installed during the past years. By
engaging in efforts aimed at creating customer loyalty, which in turn fosters financial success
Within research, the investigation of customer loyalty gained importance when the classic
marketing paradigm with its instrumental and transactional orientation proved unsuitable in
approach, which is specifically concerned with the study of relational ex-changes, gained
importance within research, serving as a conceptual foundation for the majority of customer
loyalty researchers.
The question of how loyalty develops has been subject to an abundance of research, leading
different factors and their constituent effects on loyalty, however, reveals a strong focus on
consumer goods and industrial equipment settings, while industrial services have received
6
relatively little attention so far. In addition, the majority of articles incorporates merely a few
potential determinants and thus fails to draw a comprehensive picture of the mechanisms of
Place: Chennai
Just like other businesses, logistics service providers (LSPs) are faced with increasing
competitive pressure that urges them to concentrate not only on operational business
processes, but also on an efficient and effective customer management. In the US alone,
LSPs’ revenues grew from US-$ 31 billion in 1995 to US-$ 85 billion in 2004 and logistics
outsourcing expenditures as a fraction of total logistics expenditures are at over 40% and
expected to rise even further. One way to meet this challenge of rapid growth and expansion,
An often proposed driver of logistics outsourcing is the need to develop and maintain
core competencies and re-engineering. Another important driver is the ongoing globalization,
which several authors regard as the most important challenge that companies are facing. In
this context, LSPs can play an important role as facilitators of global trade. Along with
consolidate the number of LSPs they use globally. Therefore, LSPs do not only have to devise
7
sustain-able growth strategies, but also have to develop intercultural management
While intercultural management deals with the influence of culture on management styles in
different countries, it is also arguable whether a one best way management paradigm is
applicable even within national confines. LSPs’ customers are extremely diverse and
similarly, relationships between LSPs and their customers can be expected to exhibit
momentous differences. As such, it is a crucial management issue for LSPs to de-sign their
customer loyalty efforts in a manner that accounts for both cultural context and different
relationship characteristics.
Research goals
As outlined in the preceding section, LSPs are confronted with diverse management
challenges that result from continuous growth, globalization, and customer diversity. The aim
between LSPs and their customers by explicitly considering different characteristics and
cultural contexts of such relationships. In this sense, the present research is positioned at the
interface of marketing and logistics and is intended to contribute not only to logistics
research, but also to research in marketing, customer loyalty, and cultural studies.
mechanisms underlying loyalty in the logistics outsourcing context. For this reason, the
8
starting point of the present research will be the study of Wallenburg, who studied customer
loyalty within relationships between LSPs and their customers. On this basis, factors that can
explanatory model of customer loyalty will not only provide insights into the constitution of
customer loyalty, but will also serve as the basis for subsequent analyses.
As stated previously, a globalizing marketplace and the need of LSPs to render logistics
cultural differences between different countries is necessary. The present study will therefore
provide a starting point for such analyses by investigating cultural differences between two
important markets for logistics outsourcing, the USA and Germany. Particular differences
between Germany and the USA will be identified and applied to the previously devised
customer loyalty model. As a result, differences between the two countries with respect to the
Finally, this study will investigate in how far different relationship conditions influence the
development of customer loyalty. For this purpose, important relationship characteristics will
be identified and their moderating influences on the customer loyalty model will be
examined. This will provide information on the robustness of the customer loyalty model
9
versus relational contingencies and will suggest if it is necessary to differentiate customer
Customer Satisfaction
The term logistics is often misinterpreted to mean transportation. In fact, the scope of
logistics goes well beyond transportation. Logistics forms the system that ensures the
delivery of the product in the entire supply pipeline. This includes transportation, packaging,
storage and handling methods, and information flow. The impact of logistics in the ability of
a company to satisfy its customers cannot be overstated. All other efforts at modernization
within a company would not bear fruit until the logistics system is carefully designed to
The topic of logistics is relatively new in India. There have been some companies that have
done work in this area, but a large number of companies are only now beginning to realize
the benefits of designing and managing the entire supply chain. With India joining the global
The industrial policies in India have prompted manufacturers to build plants in remote,
backward areas due to inexpensive land and tax benefits. This poses some serious logistical
problems. Apart from a poor road and transportation network, the existing communications
system in India leaves a lot to be desired by any international standard. It is in this context
10
Customer Satisfaction in 7 Steps
This is the most daunting and downright scary part of interacting with a customer. If you're
not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured,
though, it does get easier over time. It's important to meet your customers face to face at least
This goes without saying really. We all know how annoying it is to wait days for a response
to an email or phone call. It might not always be practical to deal with all customers' queries
within the space of a few hours, but at least email or call them back and let them know you've
received their message and you'll contact them about it as soon as possible. Even if you're not
able to solve a problem right away, let the customer know you're working on it.
A fellow Site Pointer once told me that you can hear a smile through the phone. This is very
true. It's very important to be friendly, courteous and to make your clients feel like you're
their friend and you're there to help them out. There will be times when you want to beat your
clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you
keep a clear head, respond to your clients' wishes as best you can, and at all times remain
11
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you're just starting out, but a clearly defined customer
service policy is going to save you a lot of time and effort in the long run. If a customer has a
problem, what should they do? If the first option doesn't work, then what? Should they
contact different people for billing and technical enquiries? If they're not satisfied with any
aspect of your customer service, who should they tell? There's nothing more annoying for a
client than being passed from person to person, or not knowing who to turn to. Making sure
they know exactly what to do at each stage of their enquiry should be of utmost importance.
So make sure your customer service policy is present on your site -- and anywhere else it may
be useful.
Have you ever received a Happy Birthday email or card from a company you were a client
of? Have you ever had a personalized sign-up confirmation email for a service that you could
tell was typed from scratch? These little niceties can be time consuming and aren't always
Even if it's as small as sending a Happy Holidays email to all your customers, it's something.
It shows you care; it shows there are real people on the other end of that screen or telephone;
and most importantly, it makes the customer feel welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
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Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship.
It's possible this is the most important point in this article. The simple message: when you
promise something, deliver. Clients don't like to be disappointed. Sometimes, something may
not get done, or you might miss a deadline through no fault of your own. Projects can be late,
technology can fail and sub-contractors don't always deliver on time. In this case a quick
Customer Loyalty
the research at hand. For that, the development of customer loyalty research within the
framework of relationship marketing will be presented first, before different customer loyalty
concepts will be introduced. From these concepts, a definition of customer loyalty for use in
this study will be derived, before both consequences and antecedents of customer loyalty will
be portrayed.
Since the beginning of the 1990s, customer loyalty has gained importance both in relationship
marketing research and in business. In business, this can be attributed to changing market-
and competition-environments. Due to a shift from a sellers’ to a buyers’ market and because
of an increasing degree of globalization, most industries find themselves confronted with new
13
challenges. In a first phase, firms tried to face these challenges by focusing on their internal
internal improvements. A second phase of external focus followed, where firms directed
attention to their customers, trying to retain existing ones and to win over new ones
(churning). Since “acquiring new customers is much more expensive than keeping them”.
And “loyal customers are the bedrock of any business”. A loyal customer base represents a
barrier to entry, a basis for a price premium, time to respond to competitor innovations, and a
bulwark against deleterious price competition. Loyalty is critical to brand volume, is highly
correlated to market share, and can be used as the basis of predicting future market share;
strategy.
In marketing research, two trends mark the development of customer loyalty. While
individual transactions initially were in the center of marketing research, the focus shifted
towards analyzing relationships states that the ‘traditional’ marketing concept of the
marketing mix with its ‘4 Ps’, developed in the middle of the last century, had been the
established approach until the 1990s. This approach, how-ever, focuses solely on
transactions, a deficit tackled by the relationship marketing approach. At the core of it is the
study of relationships between buyers and sellers of goods or services, in contrast to merely
14
marketing is provided “Relationship marketing refers to all marketing activities directed
While the development of relationship marketing began in the early 1970s, it was not until
the late 1980s that works from the ‘Nordic School of Services’. Initiated a paradigm shift that
researchers, its promoters do not postulate the replacement of the transactional approach, but
rather juxtapose the two approaches. For example, delineates a strategy continuum, in which
Before determining which stream the present study can be associated with, however, it is
Reviewing research, it becomes obvious that the notion of customer loyalty is blurred. At its
core, customer loyalty deals with relationships between suppliers and their customers and can
15
be distinguished from other loyalty aspects, such as brand loyalty, which refer to a more
abstract attachment, such as that towards a brand. Within German customer loyalty literature,
the notion of customer loyalty is even more faceted, encompasses both ‘customer loyalty’ and
In the supplier-focused perspective, customer loyalty is seen as a bundle of measures that aim
at improving relationships with customers. The supplier is in the center of attention and the
customer is only regarded as the factor at which success of customer loyalty becomes
manifest. Here it becomes clear that this approach contains a conceptual deficit. It is the
not, because all activities undertaken by a supplier can only be geared at influencing
directly observable actions and/or take into account their attitudes and intentions. Since
customers’ actions are directly influenced by their attitudes and intentions, it is obvious that
16
examines the relationship between suppliers and customers. Accordingly, the objects of study
in this perspective usually are buying behavior in retail contexts and long-term relationships
It is clear that the supplier-focused perspective with its instrumental approach is significantly
different from the other two approaches. Distinguishing the customer- and the relationship-
repurchased and of “reinforcing” loyalty, when customers switch among brands but repeat-
purchase one or more alternatives to a significant extent. Similarly, customer loyalty as “the
proportion of times a purchaser chooses the same product or service in a specific category
compared to the total number of purchases made by the purchaser in that category“. Pegging
customer loyalty to purchasing behavior, however, is very critical, there can be a multitude of
factors affecting purchasing behavior, such as product availability or special deals, which are
not grasped by looking at purchases alone. A main deficit of the behavioristic approach thus
17
Another disadvantage of behavioristic customer loyalty concepts is their ex-post approach.
When loyalty is only expressed through purchases, information on customers’ actual loyalty
relationships with frequent interaction can a supplier integrate further aspects, such as
complaints, into customer loyalty management. The reason, why behavioristic concepts may
still be valuable, is because the measurement of customer loyalty in this approach does not
necessitate involvement by the customer. The assessment of attitudes and intentions would
purchases, e.g. through delivery records in the industrial context or customer cards in a
consumer context; the assessment of customer loyalty poses little difficulty. Particularly in
areas, where most purchases can be easily ascribed to individual customers, as is the case
with mail-ordering or book-stores on the internet, the behavioristic approach is useful for
identifying different customer groups and their characteristics. Such firms, however, can only
assess purchases of their own products, while purchases of competing products go unnoticed.
Firms can therefore neither draw conclusions about relative changes of purchasing behaviors,
18
These narrow technical definitions do not adequately capture the richness and depth of the
examining the causes of loyalty. As early as 1969, Day concluded that “loyalty should be
evaluated with both attitudinal and behavioral criteria” otherwise accidental repeat-purchases,
There is no agreement, however, on the question, whether attitudes are part of customer
loyalty or merely an antecedent of it. Some authors propose that only positive attitude can
lead to ‘true’ customer loyalty. If attitude then is a necessary prerequisite of customer loyalty,
some drivers of loyalty cannot be explained. Transaction cost theory, for instance, provides
barriers and therefore increase customer loyalty. However, the mere repeat purchase of goods
or services for reasons of economic constraints would not qualify as loyalty, as positive
attitudes are not involved. In order to avoid the outlined problem, it is useful to abstain from
loyalty.
19
In order to be able to gear marketing activities towards the creation of customer loyalty, its
determinants and their precise effects have to be known. Accordingly, many researchers have
investigated this topic. In order to gain an overview of the determinants identified in these
(1) Company-related determinants refer to the supplier itself or to the goods or services
offered. It is a prerequisite for the existence of customer loyalty that the offered goods
or services create utility for the customer and that they are available. In this respect, an
performance ratio, customers will pay attention to prices. Customer loyalty will also be
influenced by the reputation a company has and ultimately by customer loyalty programs
offered.
Factors regarding the interaction between supplier andcustomer, such as relationship quality,
previous experiences, and trust are important. Commitment, which provides evidence of
emotional closeness and moral or normative feelings of obligation, takes a central role in
switching barriers.
this respect, affect and involvement, and consequently also the importance of the good or
20
service to the customer, are important. In addition to the above delineated areas, the
effects of the market environment and competition are researched, as is the link between
satisfaction and loyalty, which plays an important role in the research of customer
loyalty and is often placed in one of the three dimensions. However, as most other
Logistics market is all set to experience a period of explosive organic growth, judging by
independent market analyst Datamonitor's latest research. The Datamonitor report, "India
Logistics Outlook 2007," predicts high double-digit growth rates for both outsourced and
21
With India's gross domestic profit (GDP) growing at over 9% per year and the manufacturing
sector enjoying double digit growth rates, the Indian logistics industry is at an inflection
point, and is expected to reach a market size of over $125 billion in year 2010.
Strong growth enablers exist in India today in the form of over $300 billion worth of
investment inflows (FDI) in automotive, capital goods, electronics, retail, and telecom will
However, as a result of the under-developed trade and logistics infrastructure, the logistics
cost of the Indian economy is over 13% of GDP, compared to less than 10% of GDP in
will have to work on such systemic inefficiencies, in order to attract and retain long-term real
investments.
specialized firm, which provides multiple tactical logistics services for use by customers as
opposed to the respective company having a business unit in-house to oversee its supply
22
Some Facts:
International gateways:
Mumbai
Delhi,
Chennai
Domestic gateways
Mumbai,
Delhi,
Kolkata,
Chennai,
Bangalore,
Hyderabad,
Pune,
Salem,
Ambala,
Gauwhati,
Ahmedabad,
Nagpur.
23
Air express witnessed maximum growth in the air cargo market
126 airport
24
History of the Organization
DHL is a Deutsche Post World Net company of Germany that provides international Mail,
Express, Logistics and Finance. The company was founded in 1969 by Adrian Dalsey, Larry
The trio initially provided a courier service between the Continental United States and
Hawaii then expanded the business from there. In 1998, Deutsche Post World Net began to
acquire shares in DHL, finally reached majority ownership in 2001, and completed the
purchase in 2002.
DHL's global headquarters are located in Bonn and London (its Exel subsidiary).
Headquarters for the Americas are located in Plantation, Florida, while its Asia Pacific &
DHL owns its own cargo airlines, European Air Transport, originally based in Brussels, and
DHL Air, based at the East Midlands Airport in the United Kingdom. EAT moved from
Brussels Airport in Belgium to Leipzig/Halle Airport in Germany in Spring 2008 with its fleet
of Boeing 757SF freighters and Airbus A300 B4 freighters. Leipzig is now DHL major
European Airline hub with dedicated brand new facilities.As on 2006 DHL employees
25
REVIEW OF LITERATURE
Logistics
After having presented the necessary fundamentals of customer loyalty in the preceding
section, this section will elaborate on the reference point of the research project, i.e. logistics.
For that, the first section will present different views on logistics and lay the notional basis
for the understanding of logistics embraced in this study. As relationships between logistics
service providers and their customers are to be analyzed, the logistics outsourcing
Nature of Logistics
Logistics is an established discipline both in theory and in practice, yet there is no agreement
on a universal definition of logistics. One widely accepted view stems from the Council of
Supply Chain Management Professionals (CSCMP). In their latest definition (CSCMP 2005),
logistics management is seen as “that part of Supply Chain Management that plans,
implements, and controls the efficient, effective forward and reverses flow and storage of
goods, services and related information between the point of origin and the point of
economic objectives of effectiveness and efficiency and regards logistics as part of supply
chain management.
26
Other definitions e.g. that of Weber and Kummer are broader and refer to logistics as a flow-
oriented design of all value-creation processes. At the base of their understanding is the
empirically backed assumption that there are different stages of maturity in logistics. While
there are several researchers that also argue for stage models of logistics development, there
is no unity as to how many stages such a model has. The model that will be briefly examined
in this section stems from Weber, who identifies four maturity stages. These stages are
determined by the level of logistics knowledge present in a firm and require path-dependent
In the first maturity stage, logistics is a specialized service function that provides
transportation, handling, and storage services that are necessary for an efficient flow of
materials and goods. Weber states that this stage of logistics maturity was first observable in
the 1950s, when markets changed from suppliers’ to buyers’ markets, requiring improved
materials flows to succeed in the changed market environment. This is in line with Bowersox
and Daugherty, who confirm that advanced logistical organizations barely existed at that
time. Effects of this paradigm-change were two-fold. On the one hand, logistics optimization
was achieved through process improvements and advances in forecasting and planning
techniques. On the other hand, organizational changes took place, as many companies
27
specialized service function that was separated from other functions such as procurement or
manufacturing.
The second stage of logistics maturity was initiated by contextual changes in the economic
between different departments in companies’ state. As a result, firms realized that efficiency
could be increased by improving the coordination of materials flows from inbound streams in
distribution. Through this focus on the integration of different functions, cost and
performance benefits were achieved. Weber provides coordination of lot-sizes and just-in-
The following third stage of logistics maturity was necessitated by further changes of the
market environment. Simon points out that the intensity of competition increased, an effect
simultaneous focus on differentiation and cost leadership was not feasible under the prevalent
company value chain that reduces complexity was needed to succeed in the changing market
28
environment. Hence, logistics evolved from a mere functional concept to a management
The fourth and, for the time being, last maturity stage of logistics development is again
driven by market pressures. When companies realized that optimization potentials within the
organization had been largely exploited, the focus of attention was furthered to include
upstream and downstream partners in the supply chain. In this sense, the view of logistics as a
management concept from the third maturity stage is ex-tended over company boundaries and
This underlines the outstanding importance of logistics for companies, which can realize
logistics and the creation of flow-oriented organizations. A way, in which many companies
presently try to accomplish this, is by outsourcing parts or all of their logistics activities to
third parties.
If a company employs an outside provider to perform some or all of its logistics activities,
this outside provider is termed a logistics service provider. These LSPs were originally only
warehousing services. In order to react to changing demands from their customers, as pointed
29
out in the preceding sections, LSPs have started to offer integrated service portfolios that
include a multitude of different services. According to, five types of LSPs can currently be
distinguished: carriers, couriers & express & parcel/postal (CEP), freight forwarders, third-
party LSPs (3PLs), and fourth-party LSPs (4PLs), which will be briefly described below.
Carriers are firms that own assets for transportation purposes. These as-sets are usually
confined to road, sea, air, or rail transportation. In some cases, however, carriers own several
optimization are at the core of the carrier business. CEP providers are also transportation
providers. As opposed to carriers, CEP providers send parcels or mail though their networks,
employing different transportation vehicles and incorporating handling at hubs. In this way,
they can virtually supply door-to-door services anywhere in the world, without having to rely
on any third parties. Core competencies of CEP providers are the operation and management
Freight forwarders are intermediaries between suppliers and buyers of transportation services.
In most cases, brokers carry out additional ser-vices, such as transportation planning and
brokers also dispose of their own transportation assets. Bundling and coordination of demand
30
In contrast to the aforementioned LSPs, 3PLs or contract LSPs offer their customers logistics
solutions that often include management capacities. These solutions most commonly include
several services, such as warehousing and pick/pack operations that are carried out on a
recent addition to the list of types of LSPs comes in the form of 4PLs. While there is no
universal agreement on the definition of the 4PL, the cur-rent state of the debate establishes
4PLs as suppliers of complete logistics systems, without carrying out the services themselves.
Instead, 4PLs sub-contract all operations from other LSPs and confine themselves to the
management of logistics systems. Thus, they do not dispose of any logistical assets and are a
As 3PLs form the point of reference for logistics outsourcing as dealt with in this study, the
(1) asset-based 3PLs use their own assets (e.g. trucks and warehouses) to offer
systems or consulting;
31
(3) Integrated 3PLs use their own assets to provide logistics services, but also
payment).
CHAPTER II
CONCEPTUAL FRAMEWORK
Social exchange theory deals with “the relational interdependence, or relational contract, that
develops over time through the interactions of the ex-change partners.” While this concept
has only entered marketing theory in the 1980s, the discussion goes as far back as to the
Greek philosopher Aristotle, who distinguished social exchange from economic exchange in
his Nicomachean Ethics. Later, sociologists such as Blau and Emerson, as well as social
psychologists such as Thibaut and Kelley worked on the concept of social exchange.
On the basis of a thorough investigation of social exchange literature, Lambe, Wittmann, and
Spekman summarize the following four foundational premises of social exchange theory,
32
These outcomes are compared over time to other exchange alternatives to determine
Positive outcomes over times increase firms’ trust of their trading partner(s) and their
Positive exchange interactions over time produce relational exchange norms that
In contrast to pure economic theories, social exchange theory thus incorporates both
economic and social outcomes, highlighting the fact that social as well as economic
considerations are made when evaluating the value of relationships. This value results from
an assessment of both utilities and costs of a relationship, and parties will choose to uphold a
and costs varies from individual to individual, and more emphasis may be put on either social
or economic aspects.
When appraising the value of a relationship, parties will not only consider current and past
costs and utilities, but also potential future benefits, and may forego present benefits for
benefits in the future. Therefore, an important factor in social exchange theory is trust, which
results from multiple and beneficial interactions over time. Only if the trading partner is
trusted, will one be willing to reciprocate the abdication of cur-rent benefits for future
fostered by trust. This causal relationship between trust and commitment is based on the
33
principle of generalized reciprocity, because commitment entails vulnerability and parties
Social exchange theory’s foundational premises indicate that relation-ships are not only
interaction and “increase the efficiency of relationships because by agreeing to the manner in
which interactions take place, the degree of uncertainty may be reduced.” As with trust,
While social exchange theory can be very useful conceptually, it is mainly criticized for its
lack of empirical foundation. Factors such as commitment and trust should be able to
substitute (at least in part) contractual governance structures, but this cannot be confirmed
opportunism.
Equity Theory
Equity theory represents an extension of social exchange theory by adding the aspect of
fairness. While the concept dates back to Homans, equity theory was primarily coined by
Adams. At that time referred to as “theory of inequity”, it was introduced to explain wage
inequities. The basic assumption underlying equity theory is that each party in a relationship
compares its input-output-ratio to that of the other party. Analogous to social exchange
fairness.
In case the ratio is balanced, the perception of being fairly treated is conveyed. Otherwise,
one feels unfairly treated, arousing distress for both the over-benefited and the under-
benefited parties, which may lead to emotional and behavioral consequences. In order to re-
create fairness, parties can change their inputs, adjust their expectations, influence the other
34
As in social exchange theory, the input-output-ratios of the involved parties do not have to be
in balance at any given time. Instead, parties must trust that outcomes be split equitably in the
long-run
successful relationship marketing. According to them, commitment and trust function as key
benefits, shared values, and opportunistic behavior) and five outcomes (acquiescence,
highlighting commitment and trust, Morgan and Hunt’s theory is based on the fundamental
ideas of social exchange theory. At the same time, one of the major deficits of social
Considerations by Morgan and Hunt were spurred by a shift in marketing research and
practice away from a mere transactional focus towards the relationship marketing approach,
according to which all marketing activities are supposed to establish, develop, and maintain
successful relational exchanges. While Morgan and Hunt ac-knowledge that many contextual
factors determine the success or failure of relationship marketing efforts, commitment and
trust are seen as key, be-cause they can establish relational governance norms. As such,
commitment and trust can encourage cooperative behavior aimed at preserving relationship
expected long-term benefits with existing exchange partners, and can make high-risk actions
appear more attractive, because exchange partners are not feared to act opportunistically.
35
“Therefore, when both commitment and trust – not just one or the other – are present, they
According to Peter Clark, co-editor of The Wise Marketer and co-author of The Loyalty
Guide report series, there are six major factors that play key roles in influencing the loyalty
36
Competition Information
FedEx:
Corporation was founded in January 1998 with the acquisition of Caliber System Inc. by
Federal Express. With the purchase of Caliber, FedEx started offering other services besides
express shipping. Caliber subsidiaries included RPS, a small-package ground service; Roberts
truckload freight carrier serving the Western United States; Caribbean Transportation
Services, a provider of airfreight forwarding between the United States and the Caribbean;
and Caliber Logistics and Caliber Technology, providers of logistics and technology
solutions. FDX Corporation was founded to oversee all of the operations of those companies
and its original air division, Federal Express. In the 1980s, FedEx planned, but later
abandoned, a joint service with British Airways to have BA fly a Concorde to Shannon,
Ireland with FedEx packages onboard and then FedEx would have flown the packages
subsonically to their delivery points in Europe. Ron Ponder, a vice president at the time, was
in charge of this proposed venture. In January 2000, FDX Corporation changed its name to
FedEx Corporation and re-branded all of its subsidiaries. Federal Express became FedEx
Express, RPS became FedEx Ground, Roberts Express became FedEx Custom Critical, and
Caliber Logistics and Caliber Technology were combined to make up FedEx Global
Logistics. A new subsidiary called FedEx Corporate Services was formed to centralize the
sales, marketing, customer service for all of the subsidiaries. In February 2000, FedEx
37
acquired Tower Group International, an international logistics company. FedEx also
acquired WorldTariff, a customs duty and tax information company, TowerGroup and
FedEx Corp. acquired privately held Kinko's Inc. in February 2004 and rebranded it FedEx
Kinko's. The acquisition was made to expand FedEx retail access to the general public. After
the acquisition, all FedEx Kinko's locations exclusively offered only FedEx shipping. [4] In
June 2008, FedEx announced that they would be dropping the Kinko's name from their ship
In September 2004, FedEx acquired Parcel Direct, a parcel consolidator, and re-branded
it FedEx SmartPost.
In December 2007, the Internal Revenue Service of the United States 'tentatively decided'
that FedEx Ground Division might be facing a tax liability of $319 million for 2002, due to
which allowed FedEx to classify its operatives that own their own vehicles, the IRS is
auditing the years 2003 to 2006, with a view to assessing whether similar misclassification of
operatives has taken place. FedEx denies that any irregularities in classification have taken
place, but is facing legal action from operatives claiming benefits that would have accrued
Blue Dart:
Blue Dart Aviation is an all-cargo airline based in Chennai, India. It operates scheduled night
express cargo flights including domestic and regional charters. It has an in-house
maintenance capability and provides aircraft maintenance and engineering support to other
airlines.
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The airline was incorporated in 1995 as a wholly owned subsidiary of Blue Dart Express, a
Mumbai based integrated express package Distribution Company. It is now part of DHL
Aviation and owned by Deutsche Post DHL. Blue Dart Aviation started operations on June
1996 with two Boeing 737 Freighters bought from Indian Airlines and inducted its first
TNT:
TNT Express N.V. is an international courier delivery services company with headquarters
in Hoofddorp, Netherlands. The firm has fully owned operations in 63 countries and delivers
documents, parcels and pieces of freight to over 200 countries. The company recorded sales
The name TNT is short for Thomas Nationwide Transport, after Ken Thomas, an Australian
businessman who, in 1946, set up his own transport business with just a single truck.
Formerly an operating division of TNT N.V., TNT Express was demerged from its parent
company on 26 May 2011, taking a listing on the Euronext Amsterdam Stock Exchange.
Its major competitors include United Parcel Service, FedEx and DHL. TNT Express aircraft
On March 19, 2012, United Parcel Service announced its intention to acquire TNT Express
for USD 6.7B. However, the deal fell through in January 2013 after it was announced that
UPS had failed to obtain permission from the European Commission and as such had been
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SWOT Analysis:
Strength:
Network in more than 220 countries and territories and about 275,000 employees
worldwide.
Weakness:
Opportunities
Global expansion.
Threats:
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Natural disasters and turbulent economies.
Objectives of Study:
A study on customer level of satisfaction in towards DHL Express (I) Pvt Ltd.
To identify the loyalty of customer towards DHL Express (I) Pvt. Ltd.
To measure the specific reasons for satisfaction and dissatisfaction in with DHL
Express.
To identify the recommendations of DHL Express to others by existing loyal
customers.
Scope of study:
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Scope of the study mainly to know the current level of customer
satisfaction.
Scope of the study mainly to know the loyalty of the customer towards
the company.
Company
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Research Methodology:
Data collection has been done from both sources primary as well as secondary. Primary data
Primary Data:
Data can be defined as the quantitative or qualitative values of a variable. Data is plural of
Datum which literally means to give or something given. Data is thought to be the lowest unit
of information from which other measurements and analysis can be done. Data can be
numbers, images, words, figures, facts or ideas. Data in itself cannot be understood and to to
get information from the data one must interpret it into meaningful information.
Sources for primary data are limited and at times it becomes difficult to obtain data from
any difficulty one can face in collecting primary data; it is the most authentic and
reliable data source. Following are some of the sources of primary data.
Survey: Survey is most commonly used method in social sciences, management, marketing
list of questions either open-ended or close -ended for which the respondent give
answers.
Interview: Interview is a face-to-face conversation with the respondent. In interview
the main problem arises when the respondent deliberately hides information otherwise
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Secondary Data:
Secondary data is data collected by someone other than the user. Common sources of
secondary data for social science include censuses, organizational records and data collected
Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition,
analysts of social and economic change consider secondary data essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or
developments.
Secondary data is often readily available. After the expense of electronic media and internet
Published Printed Sources: There are variety of published printed sources. Their
credibility depends on many factors. For example, on the writer, publishing company
and time and date when published. New sources are preferred and old sources should
be avoided as new technology and researches bring new facts into light.
Books: Books are available today on any topic that you want to research. The use of
books start before even you have selected the topic. After selection of topics books
provide insight on how much work has already been done on the same topic and you
information which at times books cannot and secondly, journals can give information
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on the very specific topic on which you are researching rather talking about more
general topics.
Magazines/Newspapers: Magazines are also effective but not very reliable.
Newspaper on the other hand are more reliable and in some cases the information can
CHAPTER III
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Customers overall experience to accessibility and responses of
Very Good 16 20 %
Good 32 40 %
Fair 16 20 %
Poor 0 0%
Total 80 100 %
Table - 1
Interpretation:20 % of the customers responded that their overall experience to accessibility
and responses through Telephone is Excellent. Next 20 % says it is very good. Good being
awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service
is fair.
Figure - 1
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Options Respondents Percentage
Excellent 16 20 %
Very Good 16 20 %
Good 32 40 %
Fair 16 20 %
Poor 0 0%
Total 80 100 %
Table - 2
and responses through E-mail is Excellent. Next 20 % says it is very good. Good being
awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service
is fair
Figure - 2
(Chart showing Customers overall experience to accessibility and responses of DHL
representative through E-mail)
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Clearance representative ability to help customer issue/need
help resolve issue or need is Excellent. Next 21 % says it is very good. Good being awarded
by 28 % of the customer. 24 % is somewhat satisfied so they said that the service is fair. 9 %
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Figure – 3
Interpretation:
21 % of the customers responded that their overall experience with DHL clearance
department is Excellent. Next 19 % says it is very good. Good being awarded by 18 % of the
customer. 38% is somewhat satisfied so they said that the service is fair. 5 % is not satisfied
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Figure - 4
(Chart showing Customers Overall experience with DHL Clearance Department)
Interpretation: 11 % of the customers responded that their overall experience with DHL
clearance department is Excellent. Next 31 % says it is very good. Good being awarded by 50
50
% of the customer. 5 % is somewhat satisfied so they said that the service is fair. 3 % is not
Figure – 5
(Chart showing Customers Overall experience with DHL Shipment Delivery at
doorstep)
Interpretation:
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19 % of the customers responded they are Extremely Satisfied with the service. Next 25 %
they are satisfied. Neutral is 22 % of the customer. 23 % is somewhat satisfied so they said
Figure - 6
(Chart showing Customer Satisfaction level with DHL Express I Pvt Ltd)
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Customer Responses or Reasons for satisfaction with DHL Express Pvt Ltd
Clear tracking
Timely clearance
Interpretation:
Various reasons are given by customers for satisfaction like less transit time, Clear tracking,
Advance furnishing of documents, keeping customer fully informed, Timely clearance, Good
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Customer Responses or Reasons for Dissatisfaction with DHL Express I Pvt Ltd
Original Bill of Entry getting only after 3 days after our follow up, this should come
Freight Bill received 30 days after delivery this should deliver within 24 hrs, so that
The currency some times wrongly mention in the B/E before filing with Customs,
check the invoice or check with the customer - this will help avoiding mistake.
Since express service is preferred only when there are some urgency, though the cargo
reaches at airport. clearance team takes minimum 7-25days takes for customs
clearance
Interpretation:
Various reasons are given by customers for dissatisfaction. The company need more focused
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Recommend DHL Express to others
Interpretation:
Figure - 7
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(Chart showing Recommendation DHL Express to others)
Over the past years loyalty towards DHL Express has grown stronger.
Interpretation:
69 % of the customer responded in favour that loyalty towards DHL Express has grown
stronger. On the other hand 31 % of the people say No that loyalty towards DHL Express has
Figure - 8
(Chart showing status of loyalty towards DHL Express has grown stronger)
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DHL Express Values people & Relationships ahead of Short-term goals
Interpretation:
51 % of the customer responded in favour that DHL Express Values people & Relationships
ahead of Short-term goals. On the other hand 49 % of the people say No that DHL Express do
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Figure – 9
(Chart showing DHL Express Values people & Relationships ahead of Short-term goals)
CHAPTER IV
SUMMARY AND CONCLUSION
responses through Telephone is Excellent. Next 20 % says it is very good. Good being
awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the
service is fair
responses through E-mail is Excellent. Next 20 % says it is very good. Good being
awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the
service is fair
resolve issue or need is Excellent. Next 21 % says it is very good. Good being
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awarded by 28 % of the customer. 24 % is somewhat satisfied so they said that the
21 % of the customers responded that their overall experience with DHL clearance
of the customer. 38% is somewhat satisfied so they said that the service is fair. 5 % is
11 % of the customers responded that their overall experience with DHL clearance
of the customer. 5 % is somewhat satisfied so they said that the service is fair. 3 % is
19 % of the customers responded they are Extremely Satisfied with the service. Next
so they said that the service is fair. 3 % is not satisfied with the service.
On the other hand 36 % of the people say No to recommend DHL Express to others.
69 % of the customer responded in favour that loyalty towards DHL Express has
grown stronger. On the other hand 31 % of the people say No that loyalty towards
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51 % of the customer responded in favour that DHL Express Values people &
Relationships ahead of Short-term goals. On the other hand 49 % of the people say No
that DHL Express do not Values people & Relationships ahead of Short-term goals.
Suggestions
Communicate. Whether it is an email newsletter, monthly flier, a reminder card for a
tune up, or a holiday greeting card, reach out to your steady customers.
Customer Service. Go the extra distance and meet customer needs. Train the staff to
Employee Loyalty. Loyalty works from the top down. If you are loyal to your
employees, they will feel positively about their jobs and pass that loyalty along to
your customers.
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Employee Training. Train employees in the manner that you want them to interact
with customers. Empower employees to make decisions that benefit the customer.
instance, because children outgrow shoes quickly, the owner of a children’s shoe store
might offer a card that makes the tenth pair of shoes half price. Likewise, a dentist
may give a free cleaning to anyone who has seen him regularly for five years.
Product Awareness. Know what your steady patrons purchase and keep these items in
stock. Add other products and/or services that accompany or compliment the products
that your regular customers buy regularly. And make sure that your staff understands
Be Flexible. Try to solve customer problems or complaints to the best of your ability.
Excuses — such as "That's our policy" — will lose more customers then setting the
store on fire...
People over Technology. The harder it is for a customer to speak to a human being
when he or she has a problem, the less likely it is that you will see that customer
again.
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Know Their Names. Remember the theme song to the television show Cheers? Get to
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How would you rate your overall experience to accessibility and responses (of DHL
representative) through phone and e-mail :
Excellent
Very Good
Good
Fair
Poor
How you rate the representative ability to help you resolve your issue/need?
Excellent
Very Good
Good
Fair
Poor
Excellent
Very Good
Good
Fair
Poor
Think specifically about the CLEARANCE Department, How would you rate your overall
experience:
Excellent
Very Good
Good
Fair
Poor
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Think specifically about the SHIPMENT DELIVERY at your doorstep, How would you rate
your overall experience:
Excellent
Very Good
Good
Fair
Poor
1
2
3
4
What specifically are you SATISFIED with DHL Express, Chennai. Enter your response below:
{E.g., - Safety & security, Excellent tracking, less transit time}
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What specifically are you DISSATISFIED with DHL Express, Chennai. Enter your response below:
{E.g., - Commitment not met. etc.}
How likely are you to recommend DHL Express to others? The chances are:
Excellent
Very Good
Good
Fair
Poor
7 to 10 years
5 to 7 years
Please 3list
to top 3 reasons, initially becoming a member of DHL Express in order please list top 3
5 years
reasons, initially becoming a member of DHL Express in order of me
Less then 3 years
Please rate your level of agreement with the following statements. In scale of 1 to 5, where 1
represents ‘Completely Disagree’, 3 represents ‘Neutral’ and 5 being ‘Completely Agree’
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I believe the company, DHL Express deserves my loyalty:
1 2 3 4 5
Over the past years, my loyalty to the company, DHL Express has grown stronger:
1 2 3 4 5
1 2 3 4 5
*
••• Suggestions ••• (if any)
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BIBLIOGRAPHY
Books:
Websites:
www.google.com
www.wikipedia.com
www.dhl.com
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