Factors that Influence Customer Loyalty in the Freight Forwarding Industry in Ghana

Abstract

This research interrogates the influence of trust, price, service quality and customer satisfaction on customer loyalty in the freight forwarding service industry in Ghana. The research used primary data through a survey of 60 respondents. The respondents were importers and exporters, who have been clearing goods with freight forwarders working in Tema port. The Statistical Package for the Social Sciences (SPSS) version 20.0 software was used to analyse the data gathered using 25-item questionnaire. The results of the study showed that service quality, customer satisfaction, price satisfaction and trust significantly influence customer’s loyalty. However, price significantly influences customer’s loyalty negatively. Customer satisfaction gives significant positive impact on customer loyalty. This implies that when customers feel satisfied then certainly they will also have loyalty to the freight forwarding services industry. The study further found that trust does not mediate the relationship between customer satisfaction and customer loyalty. The research recommends that, freight forwarding service industries have to maintain quality service and continue to set right and fair price so that their customers would feel satisfied and become loyal to always use their services.