Defining Criteria

The construction of concepts is primarily based on: (1) Essentials of Service Marketing (Christopher Lovelock Jochen Wirtz Patricia Chew, 2009) (2) Field trips to PChome and in-depth interviews with experts according to the 24-hour delivery model. (3) The literature.

In the process for field trips and in-depth interviews, there are four categories within the criteria: purchasing category, logistics service category, image category, and information category; and criteria are identified as follow:

1. Purchasing Category

Service objective includes the promotion for customers to use online shopping interface by ordering the goods from Internet in addition to receiving the goods, thus, it is defined as the purchasing category.

(1) Web Interface

To evaluate whether the Web interface is easy to use or not would facilitate the smooth transition to real user-friendliness. Simple user interface can help customers in browsing, shopping, shopping trading, and order queries.

(2) Product Category

In order to meet customers‘ satisfaction, ―Product Category‖ is always a major focal point for PChome. Based on customer demand for diverse types of goods used to evaluate the diversification of the system, then, PChome should have enough of the type and quantity to satisfy the customer.

(3) Maturity of 24-hour Delivery Model

The 24-hour delivery model that consumers order goods in the morning, and they will start their packaging process, and usually consumers can pick up the orders in the afternoon of

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the same day. If the 24-hour distribution model becomes more mature, more customers would have faith on this shopping model.

2. Logistics Service Category

―Logistics service category‖ is defined as the outsourcing of logistics service to outside companies, and this also refers to the delivery of the process. As J. T. Mentzer et al. (2001) noted that logistics can be considered as a service industry. Therefore, logistics service category assumes an important role worthwhile for us to discuss.

One of the purposes of this study is that online retailers can use LSQ scale to understand the service expectations and perceptions of consumers better; as a result, subsequent improvements can be made for the LSQ. LSQ scale is brought into fully play when it is used periodically to track the LSQ trend, and also when it is used in conjunction with other forms of service quality measurement. An online retailer, for example, would learn a great deal about its LSQ and what needs to be done is to improve it by appropriately administering LSQ.

The online shopping mall should have higher benchmarks so that the high quality for either online or offline will maintain the competitive edge in the online shopping market (FENG Yi-xiong et al., 2007).

The researches by Mentzer, Flint, and Hults‘ (2001) in logistics service quality can be summarized that the service quality perceptions are based on the dimensions of order placement and order receipt; and that rings true as a concept of procedure. Furthermore, the authors provided nine concepts to comprehensively evaluate the logistics service quality as result (Table 3.2).

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Table 3.2 Definitions of the Nine Concepts about LSQ Logistics Service

Quality

Definitions Personnel contact

quality

The customer orientation of the supplier‘s logistics contact people.

Customers care about whether customer service personnel are knowledgeable, empathize with their situation, and help them resolve their problems.

Order release quantities Product availability. Customers should be the most satisfied when they are able to obtain the quantities they desire.

Information quality Customers‘ perceptions of the information provided by the supplier regarding products from which customers may choose.

Ordering procedures The efficiency and effectiveness of the procedures followed by the supplier.

Order Accuracy How closely shipments match customers‘ orders upon arrival.

Order condition The lack of damage to orders.

Order quality How well products work, includes how well they conform to product specifications and customers‘ need.

Order discrepancy handling

How well firms address any discrepancies in orders after the orders arrive.

Timeliness Whether orders arrive at the customer location when promised.

The length of time between order placement and receipt.

Source: Mentzer, J. T., Flint, D. J., & Hult, G. T. M. (2001) (4) Logistics Service Flexibility

The logistics provider offers a user-friendly of e-map mechanism for on-line shoppers.

Customers maybe in an emergency and asked for early or postponed delivery, this situation clearly demands the flexibility from logistics service.

(5) Timeliness

Y.K. Huang and C.M. Feng explored the structure of logistic for RD service for electronic commerce. They conducted qualitative research to develop constructs for related items, such as timeliness and order condition designated to logistics service quality (LSQ) (C.

M. Feng & Y. K. Huang, 2007). The time between placing requisition and receiving delivery is usually tight. Deliveries should arrive on the promised timeframe. Here is a case which uses whether on time or not as the means to evaluate the efficiency of this mode of distribution.

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(6) Order Condition

The goods will be delivered to customers; prior delivery, customers are normally extremely concerned about the integrity of the goods received. Then the responsible party should ensure goods received from logistics provider are undamaged.

3. Image Category:

―Image category‖ is mainly related to psychological dimensions, which will have some impact on people‘s attitudes and behavior. These services include promoting, dealing with the lack of services, service attitude and so on.

(7) Promotion

Use the promotion activities to attain the short term sales objectives.

(8) Dealing with Timeliness

The promised goods need to be delivered within 24 hours. If the promise is broken, the company will give NT.100 coupons to customers as indemnification.

(9) Order Discrepancy Handling

It does not matter whether the order discrepancy handling is goods delivered to the

―wrong place‖ or ―wrong package‖, it definitely would affect the level of customer satisfaction. Then the order discrepancy handling will be instrumental to sustain the company positive image.

(10) Service Attitude

The delivery worker‘s service attitude is also important. Even the outsourcing to logistics companies, the service attitude would also indirectly affects the corporation‘s image.

4. Information Category:

Information is an intangible service, but it can still be converted into a permanent, tangible form.

(11) Information Flow Exchange

The logistics provider offers timely and accurate information on 24-hour delivery. The exchange includes ordering information flow, financial information, and delivery information flow.

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(12) Inventory Fulfillment Notice

Inventory fulfillment notice is a list for goods held available in stock by PChome.

(13) The Stability for Information System

The information system includes the management for the flows of ordering information, financial information, and delivery information. The most important one would be the stability for information system for customers.

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